Document:

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                         DEUTSCHE ALT-A SECURITIES, INC.

                                    Depositor

                                       and

                     WELLS FARGO BANK, NATIONAL ASSOCIATION

                  Master Servicer and Securities Administrator

                                       and

                       HSBC BANK USA, NATIONAL ASSOCIATION

                                     Trustee

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

                         POOLING AND SERVICING AGREEMENT

                          Dated as of February 1, 2005

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

                       Mortgage Pass-Through Certificates
                                  Series 2005-2

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<PAGE>

<TABLE>
<CAPTION>

                                          TABLE OF CONTENTS

<S>                   <C>
ARTICLE I             DEFINITIONS..................................................................................

Section 1.1           Whenever used herein, the following words and phrases, unless the context otherwise
                      requires, shall have the meanings specified in this Article:.................................
Section 1.2           Allocation of Certain Interest Shortfall.....................................................

ARTICLE II            CONVEYANCE OF TRUST FUND; ORIGINAL ISSUANCE OF CERTIFICATES..................................

Section 2.1           Conveyance of Trust Fund.....................................................................
Section 2.2           Acceptance by Trustee........................................................................
Section 2.3           Repurchase or Substitution of Loans..........................................................
Section 2.4           Authentication and Delivery of Certificates; Designation of Certificates as REMIC
                      Regular and Residual Interests...............................................................
Section 2.5           Representations and Warranties of the Master Servicer........................................
Section 2.6           Establishment of the Trust...................................................................

ARTICLE III           ADMINISTRATION AND SERVICING OF THE LOANS; ACCOUNTS..........................................

Section 3.1           Master Servicer..............................................................................
Section 3.2           REMIC-Related Covenants......................................................................
Section 3.3           Monitoring of Servicers and Interim Servicers................................................
Section 3.4           Fidelity Bond................................................................................
Section 3.5           Power to Act; Procedures.....................................................................
Section 3.6           Due-on-Sale Clauses; Assumption Agreements...................................................
Section 3.7           Release of Mortgage Files....................................................................
Section 3.8           Documents, Records and Funds in Possession of Master Servicer To Be Held for Trustee.........
Section 3.9           Standard Hazard Insurance and Flood Insurance Policies.......................................
Section 3.10          Presentment of Claims and Collection of Proceeds.............................................
Section 3.11          Maintenance of the Primary Mortgage Insurance Policies.......................................
Section 3.12          Trustee to Retain Possession of Certain Insurance Policies and Documents.....................
Section 3.13          Realization Upon Defaulted Loans.............................................................
Section 3.14          Compensation for the Master Servicer.........................................................
Section 3.15          REO Property.................................................................................
Section 3.16          Annual Officer's Certificate as to Compliance................................................
Section 3.17          Annual Independent Accountant's Servicing Report.............................................
Section 3.18          Reports Filed with Securities and Exchange Commission........................................
Section 3.19          UCC..........................................................................................
Section 3.20          Obligation of the Master Servicer in Respect of Compensating Interest........................
Section 3.21          Reserved.....................................................................................
Section 3.22          Protected Accounts...........................................................................
Section 3.23          Distribution Account.........................................................................
Section 3.24          Permitted Withdrawals and Transfers from the Distribution Account............................
Section 3.25          Reserve Funds................................................................................
Section 3.26          Prepayment Penalty Verification..............................................................

ARTICLE IV            PAYMENTS TO CERTIFICATEHOLDERS; ADVANCES; STATEMENTS AND REPORTS.............................

Section 4.1           Distributions to Certificateholders..........................................................
Section 4.2           Allocation Realized Losses...................................................................
Section 4.3           Reduction of Certificate Principal Balances on the Certificates..............................
Section 4.4           Compliance with Withholding Requirements.....................................................
Section 4.5           Distributions on the Uncertificated REMIC Regular Interests..................................
Section 4.6           Statements to Certificateholders.............................................................
Section 4.7           Advances.....................................................................................

ARTICLE V             THE CERTIFICATES.............................................................................

Section 5.1           The Certificates.............................................................................
Section 5.2           Registration of Transfer and Exchange of Certificates........................................
Section 5.3           Mutilated, Destroyed, Lost or Stolen Certificates............................................
Section 5.4           Persons Deemed Owners........................................................................
Section 5.5           Certain Available Information................................................................

ARTICLE VI            THE DEPOSITOR AND THE MASTER SERVICER AND THE CREDIT RISK MANAGER............................

Section 6.1           Liability of the Depositor and the Master Servicer...........................................
Section 6.2           Merger or Consolidation of the Depositor or the Master Servicer..............................
Section 6.3           Limitation on Liability of the Depositor, the Master Servicer, the Interim Servicers,
                      the Servicers, the Securities Administrator and Others.......................................
Section 6.4           Limitation on Resignation of the Master Servicer.............................................
Section 6.5           Assignment of Master Servicing...............................................................
Section 6.6           Rights of the Depositor in Respect of the Master Servicer....................................
Section 6.7           Duties of the Credit Risk Manager............................................................
Section 6.8           Limitation Upon Liability of the Credit Risk Manager.........................................
Section 6.9           Removal of the Credit Risk Manager...........................................................

ARTICLE VII           DEFAULT......................................................................................

Section 7.1           Master Servicer Events of Default............................................................
Section 7.2           Trustee to Act; Appointment of Successor.....................................................
Section 7.3           Notification to Certificateholders...........................................................
Section 7.4           Waiver of Master Servicer Events of Default..................................................

ARTICLE VIII          CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR......................................

Section 8.1           Duties of Trustee and Securities Administrator...............................................
Section 8.2           Certain Matters Affecting Trustee and Securities Administrator...............................
Section 8.3           Trustee and Securities Administrator not Liable for Certificates or Loans....................
Section 8.4           Trustee, Master Servicer and Securities Administrator May Own Certificates...................
Section 8.5           Fees and Expenses of Trustee and Securities Administrator....................................
Section 8.6           Eligibility Requirements for Trustee and Securities Administrator............................
Section 8.7           Resignation and Removal of Trustee and Securities Administrator..............................
Section 8.8           Successor Trustee or Securities Administrator................................................
Section 8.9           Merger or Consolidation of Trustee or Securities Administrator...............................
Section 8.10          Appointment of Co-Trustee or Separate Trustee................................................
Section 8.11          Appointment of Office or Agency..............................................................
Section 8.12          Representations and Warranties of the Trustee................................................

ARTICLE IX            TERMINATION..................................................................................

Section 9.1           Termination Upon Purchase or Liquidation of the Loans........................................
Section 9.2           Additional Termination Requirements..........................................................

ARTICLE X             REMIC PROVISIONS.............................................................................

Section 10.1          REMIC Administration.........................................................................
Section 10.2          Prohibited Transactions and Activities.......................................................
Section 10.3          Indemnification..............................................................................

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

Section 11.1          Amendment....................................................................................
Section 11.2          Recordation of Agreement; Counterparts.......................................................
Section 11.3          Limitation on Rights of Certificateholders...................................................
Section 11.4          Governing Law................................................................................
Section 11.5          Notices......................................................................................
Section 11.6          Severability of Provisions...................................................................
Section 11.7          Notice to Rating Agencies....................................................................
Section 11.8          Article and Section References...............................................................
Section 11.9          Grant of Security Interest...................................................................
</TABLE>

EXHIBITS
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Exhibit A-1          -     Form of Class I-A-[1] [3] [5] Certificates
Exhibit A-2          -     Form of Class I-A-[2] [4] [6] Certificates
Exhibit A-3          -     Form of Class I-A-7 Certificates
Exhibit A-4          -     Form of Class II-A-1 Certificates
Exhibit A-5          -     Form of Class II-A-2 Certificates
Exhibit A-6          -     Form of Class II-A-3 Certificates
Exhibit A-7          -     Form of Class M Certificates
Exhibit A-8          -     Form of Class B-[1][2] Certificates
Exhibit A-9          -     Form of Class B-[3][4][5] Certificates
Exhibit A-10         -     Form of Class R Certificates
Exhibit B-1          -     Form of Rule 144A Investment Letter
Exhibit B-2          -     Form of Investment Letter (Non-Rule 144A)
Exhibit B-3          -     Form of Regulation S Transfer Certificate
Exhibit B-4          -     Form of Clearing System Certificate
Exhibit C            -     Form of Transfer Affidavit

Schedule One         -     Loan Schedule
Schedule Two         -     Prepayment Charge Schedule
Schedule Three       -     Servicing Advances Incurred Prior to Cut-Off Date

<PAGE>

                  This Pooling and Servicing Agreement, dated and effective as
of February 1, 2005 (this "Agreement"), is executed by and among Deutsche Alt-A
Securities, Inc., as depositor (the "Depositor"), Wells Fargo Bank, National
Association, as master servicer (the "Master Servicer") and securities
administrator (the "Securities Administrator"), and HSBC Bank USA, National
Association, as trustee (the "Trustee"). Capitalized terms used in this
Agreement and not otherwise defined have the meanings ascribed to such terms in
Article I hereof.

                              PRELIMINARY STATEMENT

                  The Depositor at the Closing Date is the owner of the 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
Loans and certain other assets and will be the owner of the Certificates. The
Depositor has duly authorized the execution and delivery of this Agreement to
provide for the conveyance to the Trustee of the Loans and the issuance to the
Depositor of the Certificates representing in the aggregate the entire
beneficial ownership of the Trust Fund. All covenants and agreements made by the
Depositor, the Master Servicer, the Securities Administrator and the Trustee
herein with respect to the 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, the Master Servicer, the Securities Administrator and the Trustee
are entering into this Agreement, and the Trustee is accepting the trust created
hereby, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged.

                  The Certificates issued hereunder, other than the Junior
Subordinate Certificates, have been offered for sale pursuant to a Prospectus,
dated January 28, 2005, and a Prospectus Supplement, dated February 25, 2005 of
the Depositor (together, the "Prospectus"). The Junior Subordinate Certificates
have been offered for sale pursuant to a Private Placement Memorandum, dated
February 25, 2005. The Trust Fund created hereunder is intended to be the
"Trust" as described in the Prospectus and the Certificates are intended to be
the "Certificates" described therein.

<PAGE>

                                     REMIC I

                  As provided herein, the Trustee will make an election to treat
the segregated pool of assets described in the definition of REMIC I (as defined
herein), and subject to this Agreement, as a real estate mortgage investment
conduit (a "REMIC") for federal income tax purposes and such segregated pool of
assets will be designated as "REMIC I." The REMIC I Regular Interests will be
the "regular interests" in REMIC I and Component R-1 of the Class R Certificates
will represent the sole Class of "residual interests" in REMIC I for purposes of
the REMIC Provisions (as defined herein) under the federal income tax law. The
following table irrevocably sets forth the designation, the Uncertificated REMIC
I Pass-Through Rate, the initial Uncertificated Principal Balance, and for
purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the
"latest possible maturity date" for each of the REMIC I Regular Interests. None
of the REMIC I Regular Interests will be certificated.

<TABLE>
<CAPTION>

                                             Uncertificated                 Initial
                REMIC I                          REMIC I                 Uncertificated            Latest Possible
     Regular Interest Designation           Pass-Through Rate          Principal Balance           Maturity Date(1)
     ----------------------------           -----------------          -----------------           ----------------
<S>                                                <C>                  <C>                         <C>
                LT-1SUB                            (2)                     $29,033.22               April 25, 2035
                LT-1GRP                            (2)                    $523,119.92               April 25, 2035
                LT-2SUB                            (2)                     $3,027.58                April 25, 2035
                LT-2GRP                            (2)                     $54,550.48               March 25, 2020
                LT-ZZZ                             (2)                  $577,060,572.39             April 25, 2035
                 LT-R                              (2)                      $100.00                 April 25, 2035
</TABLE>
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(1)      For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date immediately following the latest
         possible maturity date for the Group I Loans and Group II Loans has
         been designated as the "latest possible maturity date" for each REMIC I
         Regular Interest.
(2)      Calculated in accordance with the definition of "Uncertificated REMIC I
         Pass-Through Rate" herein.

<PAGE>

                                    REMIC II

                  As provided herein, the Trustee shall elect to treat the
segregated pool of assets consisting of the REMIC I Regular Interests as a REMIC
for federal income tax purposes, and such segregated pool of assets shall be
designated as "REMIC II". The REMIC II Regular Interests will be the "regular
interests" in REMIC II and Component R-2 of the Class R Certificates will
represent the sole Class of "residual interests" in REMIC II for purposes of the
REMIC Provisions (as defined herein) under the federal income tax law. The
following table irrevocably sets forth the designation, the Uncertificated REMIC
II Pass-Through Rate, the initial Uncertificated Principal Balance, and for
purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the
"latest possible maturity date" for each of the REMIC II Regular Interests. None
of the REMIC II Regular Interests will be certificated.

<TABLE>
<CAPTION>

                                             Uncertificated                 Initial
               REMIC II                         REMIC II                 Uncertificated            Latest Possible
     Regular Interest Designation           Pass-Through Rate          Principal Balance           Maturity Date(1)
     ----------------------------           -----------------          -----------------           ----------------
<S>                                                <C>                  <C>                         <C>
                LT-IA1                             (2)                  $210,000,000.00             April 25, 2035
                LT-IA3                             (2)                   $75,000,000.00             April 25, 2035
                LT-IA5                             (2)                  $110,269,700.00             April 25, 2035
                LT-IA7                             (2)                   $98,817,000.00             April 25, 2035
                LT-IIA1                            (2)                   $41,217,800.00             March 25, 2020
                LT-IIA3                            (2)                   $10,305,000.00             March 25, 2020
                LT-ISUB                            (2)                   $29,033,221.68             April 25, 0035
               LT-IISUB                            (2)                   $3,027,581.92              April 25, 2035
                 LT-R                              (2)                      $100.00                 April 25, 2035
</TABLE>
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(1)      For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date immediately following the latest
         possible maturity date for the Group I Loans and Group II Loans has
         been designated as the "latest possible maturity date" for each REMIC
         II Regular Interest.
(2)      Calculated in accordance with the definition of "Uncertificated REMIC
         II Pass-Through Rate" herein.

<PAGE>

                                    REMIC III

                  As provided herein, the Trustee shall elect to treat the
segregated pool of assets consisting of the REMIC II Regular Interests as a
REMIC for federal income tax purposes, and such segregated pool of assets shall
be designated as "REMIC III". Component R-3 of the Class R Certificates shall
represent the sole Class of "residual interests" in REMIC III for purposes of
the REMIC Provisions under federal income tax law. The following table
irrevocably sets forth the designations, the Initial Pass-Through Rate and
initial aggregate Certificate Principal Balance for each Class of Certificates
which, together with Component R-3, constitute the entire beneficial interests
in REMIC III. Determined for purposes of satisfying Treasury regulation section
1.860G-1(a)(4)(iii), the "latest possible maturity date" for each Class of
Certificates shall be the Distribution Date in the month following the maturity
date for the Group I Loan and Group II Loan with the latest maturity date:

<TABLE>
<CAPTION>

                                  Initial aggregate
                                     Certificate                                   Assumed Final Maturity
          Class Designation       Principal Balance    Initial Pass-Through Rate          Date (1)
          -----------------       -----------------    -------------------------          --------
<S>                               <C>                        <C>                       <C>
                I-A-1             $ 210,000,000.00           LIBOR + 0.40%             April 25, 2035
                I-A-2                         (2)                 (2)                  April 25, 2035
                I-A-3             $   75,000,000.00          LIBOR + 0.35%             April 25, 2035
                I-A-4                         (3)                 (3)                  April 25, 2035
                I-A-5             $  110,269,700.00          LIBOR + 0.50%             April 25, 2035
                I-A-6                         (4)                 (4)                  April 25, 2035
                I-A-7             $   98,817,000.00               (5)                  April 25, 2035
                II-A-1            $   41,217,800.00          LIBOR + 0.30%             March 25, 2020
                II-A-2                        (6)                 (6)                  March 25, 2020
                II-A-3            $   10,305,000.00               (5)                  March 25, 2020
                  R               $       100.00                  (5)                  April 25, 2035
                  M               $   13,575,300.00               (7)                  April 25, 2035
                 B-1              $    6,643,200.00               (7)                  April 25, 2035
                 B-2              $    3,754,900.00               (7)                  April 25, 2035
                 B-3              $    2,310,700.00               (7)                  April 25, 2035
                 B-4              $    2,021,800.00               (7)                  April 25, 2035
                 B-5              $    3,754,903.00               (7)                  April 25, 2035
</TABLE>
-------------------
(1)      The Distribution Date in the month after the maturity date for the
         latest maturing Group I Loan and Group II Loans. For purposes of
         Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the
         Distribution Date in the month following the maturity date for the
         Group I Loan and Group II Loan with the latest maturity date has been
         designated as the "latest possible maturity date" for each Class of
         Certificates.
(2)      The Class I-A-2 Certificates will accrue interest at the Pass-Through
         Rate on the Notional Amount of the Class I-A-2 Certificates calculated
         in accordance with the definition of "Notional Amount" herein. The
         Class I-A-2 Certificates will not be entitled to distributions in
         respect of principal.
(3)      The Class I-A-4 Certificates will accrue interest at the Pass-Through
         Rate on the Notional Amount of the Class I-A-4 Certificates calculated
         in accordance with the definition of "Notional Amount" herein. The
         Class I-A-4 Certificates will not be entitled to distributions in
         respect of principal.
(4)      The Class I-A-6 Certificates will accrue interest at the Pass-Through
         Rate on the Notional Amount of the Class I-A-6 Certificates calculated
         in accordance with the definition of "Notional Amount" herein. The
         Class I-A-6 Certificates will not be entitled to distributions in
         respect of principal.
(5)      Calculated in accordance with the definition of "Pass-Through Rate"
         herein.
(6)      The Class II-A-2 Certificates will accrue interest at the Pass-Through
         Rate on the Notional Amount of the Class II-A-2 Certificates calculated
         in accordance with the definition of "Notional Amount" herein. The
         Class II-A-2 Certificates will not be entitled to distributions in
         respect of principal.
(7)      Calculated in accordance with the definition of "Pass-Through Rate"
         herein. The subordinate pass-through rate for the first Interest
         Accrual Period is 5.8888%.

<PAGE>

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

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

                                    ARTICLE I
                                   DEFINITIONS

                  Section 1.1 Whenever used herein, the following words and
phrases, unless the context otherwise requires, shall have the meanings
specified in this Article:

                  ACCEPTED MASTER SERVICING PRACTICES: With respect to any Loan,
those customary mortgage servicing practices of prudent mortgage servicing
institutions that master service mortgage loans of the same type and quality as
such Loan in the jurisdiction where the related Mortgaged Property is located,
to the extent applicable to the Master Servicer (except in its capacity as
successor to a Servicer).

                  ACCOUNT: The Distribution Account and any Protected Account as
the context may require.

                  ADVANCE: Either (i) a Monthly Advance made by a Servicer or an
Interim Servicer as such term is defined in and pursuant to the related
Servicing Agreement or (ii) an advance made by the Master Servicer pursuant to
Section 4.7.

                  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. The Trustee may obtain
and rely on an Officer's Certificate of a Servicer or the Depositor to determine
whether any Person is an Affiliate of such party.

                  AGGREGATE SENIOR PERCENTAGE: With respect to any Distribution
Date, the percentage equivalent of a fraction, the numerator of which is the
aggregate Certificate Principal Balance of the Group I Senior Certificates
(other than the Class I-A-2, Class I-A-4 and Class I-A-6 Certificates) and Group
II Senior Certificates (other than the Class II-A-2 Certificates) immediately
prior to that Distribution Date, and the denominator of which is the sum of the
Scheduled Principal Balances of the Group I Loans and Group II Loans as of the
first day of the related Due Period.

                  AGGREGATE SUBORDINATE AMOUNT: With respect to any date of
determination, an amount equal to the excess of the aggregate Scheduled
Principal Balance of the Group I Loans and Group II Loans over the aggregate
Certificate Principal Balance of the Group I Senior Certificates (other than the
Class I-A-2, Class I-A-4 and Class I-A-6 Certificates) and Group II Senior
Certificates (other than the Class II-A-2 Certificates) then outstanding.

                  AGGREGATE SUBORDINATE PERCENTAGE: With respect to any
Distribution Date, 100% minus the Aggregate Senior Percentage for that
Distribution Date.

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

                  ANNIVERSARY: Each anniversary of the Cut-Off Date.

                  APPRAISED VALUE: The amount set forth in an appraisal made by
or for the mortgage originator in connection with its origination of each Loan.

                  ASSIGNMENT: An assignment of the Mortgage, notice of transfer
or equivalent instrument, in recordable form, sufficient under the laws of the
jurisdiction where the related Mortgaged Property is located to reflect of
record the sale and assignment of the Loan to the Trustee, which assignment,
notice of transfer or equivalent instrument may, if permitted by law, be in the
form of one or more blanket assignments covering Mortgages secured by Mortgaged
Properties located in the same county.

                  ASSIGNMENT AGREEMENTS: Shall mean (i) the Assignment,
Assumption and Recognition Agreement, dated as of February 28, 2005, among the
Seller, the Depositor and National City, pursuant to which the National City
Servicing Agreement was assigned to the Depositor, (ii) the Assignment,
Assumption and Recognition Agreement, dated as of February 28, 2005, among the
Seller, the Depositor and M&T pursuant to which the M&T Servicing Agreement was
assigned to the Depositor, (iii) the Assignment, Assumption and Recognition
Agreement, dated as of February 28, 2005, among the Seller, the Depositor and
GreenPoint, pursuant to which the GreenPoint Servicing Agreement was assigned to
the Depositor, (iv) the Assignment, Assumption and Recognition Agreement, dated
as of February 28, 2005, among the Seller, the Depositor and Pinnacle Financial,
pursuant to which the Pinnacle Financial Servicing Agreement was assigned to the
Depositor, (v) the Assignment, Assumption and Recognition Agreement, dated as of
February 28, 2005, among the Seller, the Depositor and Pinnacle Direct, pursuant
to which the Pinnacle Direct Servicing Agreement was assigned to the Depositor,
(vi) the Assignment, Assumption and Recognition Agreement, dated as of February
28, 2005, among the Seller, the Depositor and First Financial, pursuant to which
the First Financial Servicing Agreement was assigned to the Depositor, and (vii)
the Assignment, Assumption and Recognition Agreement, dated as of February 28,
2005, among the Seller, the Depositor and Cameron, pursuant to which the Cameron
Servicing Agreement was assigned to the Depositor.

                  AUTHORIZED DENOMINATION: With respect to the Certificates
(other than the Residual Certificates), a minimum initial Certificate Principal
Balance or Notional Amount of $25,000 each and integral multiples of $1 in
excess thereof as set forth on the face thereof. With respect to the Class R
Certificates, one Certificate with a Percentage Interest equal to 100% as set
forth on the face thereof.

                  BANKRUPTCY COVERAGE: As of the Cut-Off Date, $100,000. The
Bankruptcy Coverage may be reduced upon written confirmation from each Rating
Agency that such reduction will not adversely affect the then current Ratings
assigned to the Certificates by each Rating Agency.

                  BANKRUPTCY LOSS: Any Debt Service Reduction or Deficient
Valuation.

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

                  BOOK-ENTRY CERTIFICATES: The Class I-A-1, Class I-A-2, Class
I-A-3, Class I-A-4, Class I-A-5, Class I-A-6, Class I-A-7, Class II-A-1, Class
II-A-2, Class II-A-3, Class M, Class B-1 and Class B-2 Certificates.

                  BUSINESS DAY: Any day other than a Saturday, a Sunday, or a
day on which banking institutions in Maryland, Minnesota or New York or the city
in which the Corporate Trust Office of the Trustee is located, are authorized or
obligated by law or executive order to be closed.

                  CAMERON: Cameron Financial Group, a California corporation, or
any successor thereto.

                  CAMERON SERVICING AGREEMENT: Shall mean the Master Mortgage
Loan Purchase and Interim Servicing Agreement, dated as of January 1, 2005
between the Seller and Cameron (as modified pursuant to the related Assignment
Agreement).

                  CAP CONTRACTS: Shall mean (i) the Cap Contract between the
Trustee and Barclays Bank PLC, together with any successor thereto, for the
benefit of the Holders of the Class I-A-1 Certificates, (ii) the Cap Contract
between the Trustee and Deutsche Bank AG New York Branch, together with any
successor thereto, for the benefit of the Holders of the Class I-A-3
Certificates, (iii) the Cap Contract between the Trustee and Deutsche Bank AG
New York Branch, together with any successor thereto, for the benefit of the
Holders of the Class I-A-5 Certificates, and (iv) the Cap Contract between the
Trustee and Deutsche Bank AG New York Branch, together with any successor
thereto, for the benefit of the Holders of Class II-A-1 Certificates.

                  CERTIFICATE: Any one of the Certificates issued pursuant to
this Agreement, executed and authenticated by or on behalf of the Securities
Administrator hereunder in substantially one of the forms set forth in Exhibits
A-1, A-2, A-3, A-4, A-5, A-6, A-7, A-8, A-9 and A-10 hereto.

                  CERTIFICATE PRINCIPAL BALANCE: The Certificate Principal
Balance with respect to any Senior Certificate (other than the Class I-A-2,
Class I-A-4, Class I-A-6 and Class II-A-2 Certificates, which have no
Certificate Principal Balance) and any Subordinate Certificate outstanding at
any time, represents the then maximum amount that the holder of such Certificate
is entitled to receive as distributions allocable to principal from the cash
flow on the Group I Loans or Group II Loans, as applicable, and the other assets
in the Trust Fund. The Certificate Principal Balance of a Senior Certificate
(other than the Class I-A-2, Class I-A-4, Class I-A-6 and Class II-A-2
Certificates, which have no Certificate Principal Balance) and any Subordinate
Certificate, as of any date of determination is equal to the initial Certificate
Principal Balance of such Certificate reduced by the aggregate of (i) all
amounts allocable to principal previously distributed with respect to that
Certificate and (ii) any reductions in the Certificate Principal Balance of such
Certificate deemed to have occurred in connection with allocations of Realized
Losses, if any. The initial Certificate Principal Balance of each Class of
Certificates is set forth in the Preliminary Statement hereto. When used in
reference to a Class, the term Certificate Principal Balance means the aggregate
of the Certificate Principal Balances of all Certificates of such Class, and
when used in reference to a group of Certificates (such as the Group I Senior
Certificates, Group II Senior Certificates and Subordinate Certificates) shall
mean the aggregate Certificate Principal Balances of all Classes of Certificates
included in such group.

                  CERTIFICATE REGISTER: The register maintained pursuant to
Section 5.2.

                  CERTIFICATEHOLDER OR HOLDER: The person in whose name a
Certificate is registered in the Certificate Register, except that, solely for
the purposes of giving any consent pursuant to this Agreement, any Certificate
registered in the name of the Depositor, the Master Servicer, the Securities
Administrator, the Trustee or any Affiliate thereof shall be deemed not to be
outstanding and the Percentage Interest evidenced thereby shall not be taken
into account in determining whether the requisite percentage of Percentage
Interests necessary to effect any such consent has been obtained. The Trustee or
the Securities Administrator may conclusively rely upon a certificate of the
Depositor, the Seller or the Master Servicer in determining whether a
Certificate is held by an Affiliate thereof. All references herein to "Holders"
or "Certificateholders" shall reflect the rights of Certificate Owners as they
may indirectly exercise such rights through the Depository and participating
members thereof, except as otherwise specified herein; provided, however, that
the Trustee or the Securities Administrator shall be required to recognize as a
"Holder" or "Certificateholder" only the Person in whose name a Certificate is
registered in the Certificate Register.

                  CERTIFICATE OWNER: With respect to a Book-Entry Certificate or
Global Certificate, the Person who is the beneficial owner of such Certificate
as reflected on the books of the Depository or on the books of a Depository
Participant or on the books of an Indirect Depository Participant.

                  CLASS: All Certificates having the same priority and rights to
payments from the Group I Available Distribution Amount and/or Group II
Available Distribution Amount, as applicable, designated as a separate Class, as
set forth in the forms of Certificates attached hereto as Exhibits A-1, A-2,
A-3, A-4, A-5, A-6, A-7, A-8, A-9 and A-10, as applicable.

                  CLASS B CERTIFICATES: The Class B-1, Class B-2, Class B-3,
Class B-4 and Class B-5 Certificates.

                  CLASS I-A-1 RESERVE FUND: The separate trust account created
and maintained by the Securities Administrator pursuant to Section 3.25 of this
Agreement for the benefit of the Class I-A-1 Certificates.

                  CLASS I-A-3 RESERVE FUND: The separate trust account created
and maintained by the Securities Administrator pursuant to Section 3.25 of this
Agreement for the benefit of the Class I-A-3 Certificates.

                  CLASS I-A-5 RESERVE FUND: The separate trust account created
and maintained by the Securities Administrator pursuant to Section 3.25 of this
Agreement for the benefit of the Class I-A-5 Certificates.

                  CLASS I-A-7 LOCKOUT PERCENTAGE: For any Distribution Date
shall be equal to (1) the Certificate Principal Balance of the Class I-A-7
Certificates divided by (2) the aggregate Scheduled Principal Balance of all
Group I Loans as of the related Due Date.

                  CLASS I-A-7 LOCKOUT PRINCIPAL AMOUNT: For any Distribution
Date, the product of:

                  (1)      the Class I-A-7 Lockout Percentage;
                  (2)      the related Step Down Percentage; and
                  (3)      the sum of the following for that Distribution Date:

                           (a)      the Principal Distribution Amount with
                                    respect to the Group I Loans;
                           (b)      the Principal Prepayment Amount with respect
                                    to the Group I Loans; and
                           (c)      the Liquidation Principal with respect to
                                    the Group I Loans.

                  CLASS II-A-1 RESERVE FUND: The separate trust account created
and maintained by the Securities Administrator pursuant to Section 3.25 of this
Agreement for the benefit of the Class II-A-1 Certificates.

                  CLASS II-A-3 LOCKOUT PERCENTAGE: For any Distribution Date
shall be equal to (1) the Certificate Principal Balance of the Class II-A-3
Certificates divided by (2) the aggregate Scheduled Principal Balance of all
Group II Loans as of the related Due Date.

                  CLASS II-A-3 LOCKOUT PRINCIPAL AMOUNT: For any Distribution
Date, the product of:

                  (1)      the Class II-A-3 Lockout Percentage;
                  (2)      the related Step Down Percentage; and
                  (3)      the sum of the following for that Distribution Date:

                           (a)      the Principal Distribution Amount with
                                    respect to the Group II Loans;
                           (b)      the Principal Prepayment Amount with respect
                                    to the Group II Loans; and
                           (c)      the Liquidation Principal with respect to
                                    the Group II Loans.

                  CLEARING AGENCY: An organization registered as a "clearing
agency" pursuant to Section 17A of the Securities and Exchange Act of 1934, as
amended, which initially shall be the Depository.
                  CLEARING AGENCY PARTICIPANT: A broker, dealer, bank, other
financial institution or other Person for whom the Clearing Agency effects
book-entry transfers and pledges of securities deposited with the Clearing
Agency.

                  CLEARSTREAM: Clearstream, Luxembourg, societe anonyme
(formerly known as Cedelbank), a corporation organized under the laws of the
Duchy of Luxembourg.

                  CLOSING DATE:  February 28, 2005.

                  CODE: The Internal Revenue Code of 1986, as amended.

                  COLLATERAL DEFICIENCY AMOUNT: With respect the Group I Loans
and Group II Loans and any Distribution Date prior to the Credit Support
Depletion Date, the amount by which (i) the sum of (x) the aggregate Certificate
Principal Balance of the Group I Senior Certificates (other than the Class
I-A-2, Class I-A-4 and Class I-A-6 Certificates) or Group II Senior Certificates
(other than the Class II-A-2 Certificates), as applicable, after giving effect
to payments of principal (other than the related Collateral Deficiency Amount)
on that Distribution Date exceeds (ii) the Scheduled Principal Balance of the
Loans in the related Loan Group as of the last day of the related Due Period.

                  COMPENSATING INTEREST: For any Distribution Date (a) with
respect to the Loans serviced by National City, the aggregate Prepayment
Interest Shortfalls and Curtailment Shortfalls for such Loans for such
Distribution Date, (b) with respect to the Loans serviced by GreenPoint and M&T,
the lesser of (i) the aggregate Prepayment Interest Shortfalls for such Loans
for such Distribution Date and (ii) the aggregate Servicing Fee payable to such
Servicer for the related Due Period and (c) with respect to the Loans serviced
by an Interim Servicer, the amount set forth in the related Servicing Agreement.

                  COMPONENT R-1: The uncertificated residual interest in REMIC
I.

                  COMPONENT R-2: The uncertificated residual interest in REMIC
II.

                  COMPONENT R-3: The uncertificated residual interest in REMIC
III.

                  CORPORATE TRUST OFFICE: The principal corporate trust office
of the Trustee or the Securities Administrator, as the case may be, at which at
any particular time its corporate trust business in connection with this
Agreement shall be administered, which office at the date of the execution of
this instrument is located at (i) with respect to the Trustee, HSBC Bank USA,
National Association, 452 Fifth Avenue, New York, New York 10018, or at such
other address as the Trustee may designate from time to time by notice to the
Certificateholders, the Depositor, the Master Servicer and the Securities
Administrator, or (ii) with respect to the Securities Administrator, (A) for
Certificate transfer and surrender purposes, Wells Fargo Bank, National
Association, Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479,
Attention: DBALT 2005-2 and (B) for all other purposes, Wells Fargo Bank,
National Association, 9062 Old Annapolis Road, Columbia, Maryland 21045,
Attention: DBALT 2005-2, or at such other address as the Securities
Administrator may designate from time to time by notice to the
Certificateholders, the Depositor, the Master Servicer and the Trustee.

                  CREDIT RISK MANAGEMENT AGREEMENT OR CREDIT RISK MANAGEMENT
AGREEMENTS: Each agreement between the Credit Risk Manager and a Servicer or the
Master Servicer, regarding the loss mitigation and advisory services to be
provided by the Credit Risk Manager.

                  CREDIT RISK MANAGEMENT FEE: The amount payable to the Credit
Risk Manager on each Distribution Date as compensation for all services rendered
by it in the exercise and performance of any and all powers and duties of the
Credit Risk Manager under any Credit Risk Management Agreement, which amount
shall equal one twelfth of the product of (i) the Credit Risk Management Fee
Rate multiplied by (ii) the Scheduled Principal Balance of the Loans and any
related REO Properties as of the first day of the related Due Period.

                  CREDIT RISK MANAGEMENT FEE RATE: 0.010% per annum.

                  CREDIT RISK MANAGER: The Murrayhill Company, a Colorado
corporation, and its successors and assigns.

                  CREDIT SUPPORT DEPLETION DATE: The Distribution Date on which
the aggregate Certificate Principal Balance of the Subordinate Certificates have
been reduced to zero, prior to giving effect to principal distributions thereon
and the allocation of Realized Losses on such Distribution Date.

                  CROSS PAYMENT TRIGGER DATE: Any Distribution Date on which (i)
the aggregate Certificate Principal Balance of the Group I Senior Certificates
(other than the Class I-A-2, Class I-A-4 and Class I-A-6 Certificates) or the
Group II Senior Certificates (other than the Class II-A-2 Certificates) have
been reduced to zero and (ii) either (a) the Aggregate Subordinate Percentage is
less than 200% times the Aggregate Subordinate Percentage as of the Closing
Date, or (b) the aggregate Principal Balance of the Group I Loans and Group II
Loans (including Group I Loans and Group II Loans in bankruptcy, foreclosure and
REO) which are 60 or more days delinquent (averaged over the preceding six-month
period), as a percentage of the Aggregate Subordinate Amount, is equal to or
greater than 50% as of such Distribution Date.

                  CURTAILMENT: Any voluntary payment of principal on a Loan,
made by or on behalf of the related Mortgagor, other than a Monthly Payment, a
Prepaid Monthly Payment or a Payoff, which is applied to reduce the outstanding
Principal Balance of the Loan.

                  CURTAILMENT SHORTFALL: With respect to any Distribution Date
and any Curtailment received during the related Prepayment Period, an amount
equal to one month's interest on such Curtailment at the applicable Net Mortgage
Rate on such Loan.

                  CUSTODIAL AGREEMENT: The Custodial Agreement dated as of
February 28, 2005, among the Trustee, Wells Fargo as Custodian, National City,
M&T and GreenPoint as such agreement may be amended or supplemented from time to
time, or any other custodial agreement entered into after the date hereof with
respect to any Loan subject to this Agreement.

                  CUSTODIAN: Either Wells Fargo or any other custodian appointed
under any custodial agreement entered into after the date of this Agreement.

                  CUT-OFF DATE: February 1, 2005; except that with respect to
each Substitute Loan, the Cut-Off Date shall be the date of substitution.

                  DEBT SERVICE REDUCTION: Any reduction of the amount of the
monthly payment on a Loan made by a bankruptcy court in connection with a
personal bankruptcy of a Mortgagor.

                  DEFICIENT VALUATION: In connection with a personal bankruptcy
of a Mortgagor on a Loan, the positive difference, if any, resulting from the
outstanding principal balance on a Loan less a bankruptcy court's valuation of
the related Mortgaged Property.

                  DEFINITIVE CERTIFICATES: As defined in Section 5.1.

                  DELETED LOAN: A Loan replaced or to be replaced by a
Substitute Loan.

                  DEPOSITOR: Deutsche Alt-A Securities, Inc., a Delaware
corporation, or its successor-in-interest.

                  DEPOSITORY: The Depository Trust Company, or any successor
Depository hereafter named. The nominee of the initial Depository, for purposes
of registering those Certificates that are to be Book-Entry Certificates, is
Cede & Co. The Depository shall at all times be a "clearing corporation" as
defined in Section 8-102(3) of the Uniform Commercial Code of the State of New
York and a Clearing Agency.

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

                  DETERMINATION DATE: With respect to each Servicer and Interim
Servicer, the day of the month set forth as the Determination Date in the
related Servicing Agreement.

                  DISQUALIFIED ORGANIZATION: A "disqualified organization" as
defined in Section 860E(e)(5) of the Code, and, for purposes of Article V
herein, any Person which is not a Permitted Transferee; provided, that a
Disqualified Organization does not include any Pass-Through Entity which owns or
holds a Residual Certificate and of which a Disqualified Organization, directly
or indirectly, may be a stockholder, partner or beneficiary.

                  DISTRIBUTION ACCOUNT: The trust account or accounts created
and maintained by the Securities Administrator pursuant to Section 3.23, for the
benefit of the related Certificateholders and designated "Wells Fargo Bank,
National Association, as Securities Administrator, in trust for registered
holders of Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series 2005-2."
Funds in the Distribution Account shall be held in trust for the related
Certificateholders for the uses and purposes set forth in this Agreement. Each
Distribution Account must be an Eligible Account.

                  DISTRIBUTION ACCOUNT DEPOSIT DATE: With respect to each
Distribution Date, the Business Day prior to such Distribution Date.

                  DISTRIBUTION DATE: The 25th day (or, if such 25th day is not a
Business Day, the Business Day immediately succeeding such 25th day) of each
month, with the first such date being March 25, 2005.

                  DUE DATE: The first day of each calendar month, which is the
day on which the Monthly Payment for each Loan is due, exclusive of any days of
grace. The "related Due Date" for any Distribution Date is the Due Date
immediately preceding such Distribution Date.

                  DUE PERIOD: With respect to any Distribution Date and the
Loans, (a) with respect to the Loans serviced by GreenPoint and National City,
the period commencing on the second day of the month immediately preceding the
month in which such Distribution Date occurs, (b) with respect to the Loans
serviced by M&T, the calendar month preceding the month in which such
Distribution Date occurs, and (c) with respect to the Loans serviced by an
Interim Servicer, the period set forth in the related Servicing Agreement.

                  ELIGIBLE ACCOUNT: Any account or accounts held and established
by the Securities Administrator in trust for the Certificateholders at any
Eligible Institution.

                  ELIGIBLE INSTITUTION: An institution having (i) the highest
short-term debt rating, and one of the two highest long-term debt ratings of
each Rating Agency, (ii) with respect to the Distribution Account, an unsecured
long-term debt rating of at least one of the two highest unsecured long-term
debt ratings of each Rating Agency, or (iii) the approval of each Rating Agency.

                  ELIGIBLE INVESTMENTS: Any one or more of the following
obligations or securities payable on demand or having a scheduled maturity on or
before the Business Day preceding the following Distribution Date (or, with
respect to the Distribution Account maintained with the Securities
Administrator, having a scheduled maturity on or before the following
Distribution Date; provided that, such Eligible Investments shall be managed by,
or an obligation of, the institution that maintains the Distribution Account if
such Eligible Investments mature on the Distribution Date), regardless of
whether any such obligation is issued by the Depositor, the applicable Servicer,
the Trustee, the Master Servicer, the Securities Administrator or any of their
respective Affiliates and having at the time of purchase, or at such other time
as may be specified, the required ratings, if any, provided for in this
definition:

                  (a) direct obligations of, or guaranteed as to full and timely
payment of principal and interest by, the United States or any agency or
instrumentality thereof, provided, that such obligations are backed by the full
faith and credit of the United States of America;

                  (b) direct obligations of, or guaranteed as to timely payment
of principal and interest by, Freddie Mac, Fannie Mae or the Federal Farm Credit
System, provided, that any such obligation, at the time of purchase or
contractual commitment providing for the purchase thereof, is qualified by each
Rating Agency as an investment of funds backing securities rated "AAA" in the
case of S&P and Moody's (the initial rating of the Senior Certificates);

                  (c) demand and time deposits in or certificates of deposit of,
or bankers' acceptances issued by, any bank or trust company, savings and loan
association or savings bank, provided, that the short-term deposit ratings
and/or long-term unsecured debt obligations of such depository institution or
trust company (or in the case of the principal depository institutions in a
holding company system, the commercial paper or long-term unsecured debt
obligations of such holding company) have, in the case of commercial paper, the
highest rating available for such securities by each Rating Agency and, in the
case of long-term unsecured debt obligations, one of the two highest ratings
available for such securities by each Rating Agency, or in each case such lower
rating as will not result in the downgrading or withdrawal of the rating or
ratings then assigned to any Class of Certificates by any Rating Agency but in
no event less than the initial rating of the Senior Certificates;

                  (d) general obligations of or obligations guaranteed by any
state of the United States or the District of Columbia receiving one of the two
highest long-term debt ratings available for such securities by each Rating
Agency, or such lower rating as will not result in the downgrading or withdrawal
of the rating or ratings then assigned to any Class of Certificates by any
Rating Agency;

                  (e) commercial or finance company paper (including both
non-interest-bearing discount obligations and interest-bearing obligations
payable on demand or on a specified date not more than one year after the date
of issuance thereof) that is rated by each Rating Agency in its highest
short-term unsecured rating category at the time of such investment or
contractual commitment providing for such investment, and is issued by a
corporation the outstanding senior long-term debt obligations of which are then
rated by each Rating Agency in one of its two highest long-term unsecured rating
categories, or such lower rating as will not result in the downgrading or
withdrawal of the rating or ratings then assigned to any Class of Certificates
by any Rating Agency but in no event less than the initial rating of the Senior
Certificates;

                  (f) guaranteed reinvestment agreements issued by any bank,
insurance company or other corporation rated in one of the two highest rating
levels available to such issuers by each Rating Agency at the time of such
investment, provided, that any such agreement must by its terms provide that it
is terminable by the purchaser without penalty in the event any such rating is
at any time lower than such level; (g) repurchase obligations with respect to
any security described in clause (a) or (b) above entered into with a depository
institution or trust company (acting as principal) meeting the rating standards
described in (c) above;

                  (h) securities bearing interest or sold at a discount that are
issued by any corporation incorporated under the laws of the United States of
America or any State thereof and rated by each Rating Agency in one of its two
highest long-term unsecured rating categories at the time of such investment or
contractual commitment providing for such investment; provided, however, that
securities issued by any such corporation will not be Eligible Investments to
the extent that investment therein would cause the outstanding principal amount
of securities issued by such corporation that are then held as part of the
Distribution Account to exceed 20% of the aggregate principal amount of all
Eligible Investments then held in the Distribution Account;

                  (i) units of taxable money market funds (including those for
which the Trustee, the Securities Administrator, the Master Servicer or any
affiliate thereof receives compensation with respect to such investment) which
funds have been rated by each Rating Agency rating such fund in its highest
rating category or which have been designated in writing by each Rating Agency
as Eligible Investments with respect to this definition;

                  (j) if previously confirmed in writing to the Trustee and the
Securities Administrator, any other demand, money market or time deposit, or any
other obligation, security or investment, as may be acceptable to each Rating
Agency as a permitted investment of funds backing securities having ratings
equivalent to the initial rating of the Senior Certificates; and

                  (k) such other obligations as are acceptable as Eligible
Investments to each Rating Agency;

provided, however, that such instrument continues to qualify as a "cash flow
investment" pursuant to Code Section 860G(a)(6) and that no instrument or
security shall be an Eligible Investment if (i) such instrument or security
evidences a right to receive only interest payments or (ii) the right to receive
principal and interest payments derived from the underlying investment provides
a yield to maturity in excess of 120% of the yield to maturity at par of such
underlying investment.

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

                  EUROCLEAR: Euroclear Bank SA/NV, Brussels office, as operator
of the Euroclear system.

                  EXCESS LOSS: A Special Hazard Loss incurred on a Loan in
excess of the Special Hazard Coverage, a Fraud Loss incurred on a Loan in excess
of the Fraud Coverage and a Bankruptcy Loss incurred on a Loan in excess of the
Bankruptcy Coverage.

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

                  FANNIE MAE: Fannie Mae, formerly known as the Federal National
Mortgage Association, or any successor thereto.

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

                  FIRST FINANCIAL: First Financial Equities, Inc., a New York
corporation, or any successor thereto.

                  FIRST FINANCIAL SERVICING AGREEMENT: Shall mean the Master
Mortgage Loan Purchase and Interim Servicing Agreement, dated as of February 1,
2005, between the Seller and First Financial (as modified pursuant to the
related Assignment Agreement).

                  FITCH:  Fitch Ratings or any successor thereto.

                  FRAUD COVERAGE: As of the Cut-Off Date, will be approximately
$10,462.398.43 with respect to the Group I Loans and $1,091,009.64 with respect
to the Group II Loans. As of any date of determination after the Cut-Off Date,
the Fraud Coverage will generally be equal to:

                  (1)      before the second Anniversary, an amount equal to:

                           (a)      2.00% of the aggregate Principal Balance of
                                    the Group I Loans and Group II Loans as of
                                    the Cut-Off Date, minus

                           (b)      the aggregate amounts allocated to the
                                    Certificates with respect to Fraud Losses on
                                    the Group I Loans and Group II Loans up to
                                    such date of determination;

                  (2)      from the second to and including the fifth
                           Anniversary, an amount equal to:

                           (a)      1.00% of the aggregate Principal Balance of
                                    the Group I Loans and Group II Loans as of
                                    the Cut-Off Date, minus

                           (b)      the aggregate amounts allocated to the
                                    Certificates with respect to Fraud Losses on
                                    the Group I Loans and Group II Loans up to
                                    such date of determination;

                  (3)      after the fifth Anniversary, the Fraud Coverage will
                           be zero.

                  FRAUD LOSS: The occurrence of a loss on a Loan, as reported by
the related Servicer, arising from any action, event or state of facts with
respect to such Loan which, because it involved or arose out of any dishonest,
fraudulent, criminal, negligent or knowingly wrongful act, error or omission by
the Mortgagor, originator (or assignee thereof) of such Loan, or the related
Servicer, would result in an exclusion from, denial of, or defense to coverage
which otherwise would be provided by an insurance policy previously issued with
respect to such Loan.

                  FREDDIE MAC: The Federal Home Loan Mortgage Corporation, or
any successor thereto.

                  GLOBAL CERTIFICATE: A Regulation S Temporary Global
Certificate or a Regulation S Permanent Global Certificate.

                  GREENPOINT: GreenPoint Mortgage Funding, Inc., or any
successor thereto.

                  GREENPOINT SERVICING AGREEMENT: Shall mean the Amended and
Restated Master Mortgage Loan Purchase and Servicing Agreement, dated as of
January 1, 2005, between the Seller and GreenPoint (as modified pursuant to the
related Assignment Agreement).

                  GROUP I AVAILABLE DISTRIBUTION AMOUNT: With respect to a
Distribution Date, the sum of the following amounts that are related to the
Group I Loans:

                  (1)      the total amount of all cash received by or on behalf
                           of each Interim Servicer and each Servicer with
                           respect to the Group I Loans by the Determination
                           Date for such Distribution Date and not previously
                           distributed (including Liquidation Proceeds,
                           Insurance Proceeds, condemnation proceeds and
                           Subsequent Recoveries), except:

                           (a)      all scheduled payments of principal and
                                    interest collected on the Group I Loans but
                                    due on a date after the related Due Date;

                           (b)      all Curtailments received with respect to
                                    the Group I Loans after the related
                                    Prepayment Period, together with all
                                    interest paid by the Mortgagors in
                                    connection with such Curtailments;

                           (c)      all Payoffs received with respect to the
                                    Group I Loans after the related Prepayment
                                    Period, together with all interest paid by
                                    the Mortgagors in connection with such
                                    Payoffs;

                           (d)      Liquidation Proceeds, Insurance Proceeds,
                                    condemnation proceeds and Subsequent
                                    Recoveries received on the Group I Loans
                                    after the related Prepayment Period;

                           (e)      all amounts reimbursable to the related
                                    Interim Servicer or the related Servicer
                                    pursuant to the terms of the related
                                    Servicing Agreement or to the Master
                                    Servicer, the Securities Administrator, the
                                    Trustee or the Custodian pursuant to the
                                    terms of this Agreement;

                           (f)      reinvestment income on the balance of funds,
                                    if any, in the Protected Accounts or the
                                    Distribution Account;

                           (g)      any fees payable to the Interim Servicers,
                                    the Master Servicer (including any Master
                                    Servicing Fees), the Servicers and the
                                    Credit Risk Manager with respect to the
                                    Group I Loans, and any premiums payable in
                                    connection with any lender paid primary
                                    mortgage insurance policies maintained on
                                    the Group I Loans; and

                           (h)      all Prepayment Charges received in
                                    connection with the Group I Loans;

                  (2)      all Advances made by an Interim Servicer, a Servicer
                           and/or the Master Servicer with respect to the Group
                           I Loans for that Distribution Date;

                  (3)      any amounts paid as Compensating Interest on the
                           Group I Loans by an Interim Servicer, a Servicer
                           and/or the Master Servicer for that Distribution
                           Date; and

                  (4)      the total amount of any cash deposited in the
                           Distribution Account in connection with the
                           repurchase of any Group I Loan by the Depositor or
                           the Mortgage Loan Seller.

                  GROUP I LOANS: Those Loans having original terms to maturity
not greater than thirty (30) years and identified on the Loan Schedule as Group
I Loans.

                  GROUP I SENIOR CERTIFICATES: The Class I-A-1, Class I-A-2,
Class I-A-3, Class I-A-4, Class I-A-5, Class I-A-6 and Class I-A-7 Certificates.

                  GROUP II AVAILABLE DISTRIBUTION AMOUNT: With respect to a
Distribution Date, the sum of the following amounts that are related to the
Group II Loans:

                  (1)      the total amount of all cash received by or on behalf
                           of each Interim Servicer and each Servicer with
                           respect to the Group II Loans by the Determination
                           Date for such Distribution Date and not previously
                           distributed (including Liquidation Proceeds,
                           Insurance Proceeds, condemnation proceeds and
                           Subsequent Recoveries), except:

                           (a)      all scheduled payments of principal and
                                    interest collected on the Group II Loans but
                                    due on a date after the related Due Date;

                           (b)      all Curtailments received with respect to
                                    the Group II Loans after the related
                                    Prepayment Period, together with all
                                    interest paid by the Mortgagors in
                                    connection with such Curtailments;

                           (c)      all Payoffs received with respect to the
                                    Group II Loans after the related Prepayment
                                    Period, together with interest paid by the
                                    Mortgagors in connection with such Payoffs;

                           (d)      Liquidation Proceeds, Insurance Proceeds,
                                    condemnation proceeds and Subsequent
                                    Recoveries received on the Group II Loans
                                    after the related Prepayment Period;

                           (e)      all amounts reimbursable to the related
                                    Interim Servicer or the related Servicer
                                    pursuant to the terms of the related
                                    Servicing Agreement or to the Master
                                    Servicer, the Securities Administrator, the
                                    Trustee or the Custodian pursuant to the
                                    terms of this Agreement;

                           (f)      reinvestment income on the balance of funds,
                                    if any, in the Protected Accounts or the
                                    Distribution Account;

                           (g)      any fees payable to the Interim Servicers,
                                    the Master Servicer (including any Mater
                                    Servicing Fees), the Servicers and the
                                    Credit Risk Manager with respect to the
                                    Group II Loans, and any premiums payable in
                                    connection with any lender paid primary
                                    mortgage insurance policies maintained on
                                    the Group II Loans; and

                           (h)      all Prepayment Charges received in
                                    connection with the Group II Loans;

                  (2)      All Advances made by an Interim Servicer, a Servicer
                           and/or the Master Servicer with respect to the Group
                           II Loans for that Distribution Date;

                  (3)      Any amounts paid as Compensating Interest on the
                           Group II Loans by an Interim Servicer, a Servicer
                           and/or the Master Servicer for that Distribution
                           Date; and

                  (4)      The total amount of any cash deposited in the
                           Distribution Account in connection with the
                           repurchase of any Group II Loan by the Depositor or
                           the Mortgage Loan Seller.

                  GROUP II LOANS: Those Loans having original terms to maturity
of not greater than fifteen (15) years and identified on the Loan Schedule as
Group II Loans.

                  GROUP II SENIOR CERTIFICATES: The Class II-A-1, Class II-A-2,
Class II-A-3 and Class R Certificates.

                  INDEPENDENT: When used with respect to any specified Person,
any such Person who (i) is in fact independent of the Depositor, each Servicer,
the Master Servicer and the Securities Administrator, (ii) does not have any
direct financial interest or any material indirect financial interest in the
Depositor, Servicer, the Master Servicer or the Securities Administrator or any
Affiliate of either and (iii) is not connected with the Depositor, any Servicer,
the Master Servicer or the Securities Administrator as an officer, employee,
promoter, underwriter, trustee, partner, director or person performing similar
functions.

                  INDIRECT DEPOSITORY PARTICIPANTS: Entities such as banks,
brokers, dealers or trust companies that clear through or maintain a custodial
relationship with a Depository Participant, either directly or indirectly.

                  INSURANCE PROCEEDS: Proceeds of any title policy, hazard
policy or other insurance policy covering a Loan, to the extent such proceeds
are not to be applied to the restoration of the related Mortgaged Property or
released to the Mortgagor in accordance with the applicable Servicing Agreement.

                  INTEREST ACCRUAL PERIOD: For the Group I Senior Certificates
(other than the Class I-A-7 Certificates) and the Group II Senior Certificates
(other than the Class II-A-3 Certificates), (a) as to the Distribution Date in
March 2005, the period commencing on February 25, 2005, and ending on the day
preceding the Distribution Date in March 2005, and (b) as to any Distribution
Date after the Distribution Date in March 2005, the period commencing on the
Distribution Date in the month immediately preceding the month in which that
Distribution Date occurs and ending on the day preceding that Distribution Date.
The Interest Accrual Period for the Class I-A-7, Class II-A-3 and Subordinate
Certificates will be the calendar month preceding the month in which that
Distribution Date occurs. Interest on the Certificates will be calculated based
on a 360-day year consisting of twelve 30-day months regardless of the actual
number of days in the related Interest Accrual Period.

                  INTEREST DISTRIBUTION AMOUNT: On any Distribution Date, for
any Class of Certificates, the sum of (i) interest accrued on the related
Certificate which shall be equal to (a) the product of (1) 1/12th of the
Pass-Through Rate for such Class and (2) the aggregate Certificate Principal
Balance or Notional Amount, as applicable, for such Class before giving effect
to allocations of Realized Losses in connection with such Distribution Date or
distributions to be made on such Distribution Date, reduced by (b) Net Interest
Shortfalls allocated to such Class pursuant to the definition of "Net Interest
Shortfall", including the interest portion of Realized Losses allocated to such
Class pursuant to Section 4.2 and (ii) the amount of interest accrued but unpaid
to such class from prior Distribution Dates.

                  INTERIM SERVICER: Any of Cameron, First Financial, Pinnacle
Direct or Pinnacle Financial.

                  INVESTMENT WITHDRAWAL DISTRIBUTION DATE: As defined in Section
3.23(c).

                  JUNIOR SUBORDINATE CERTIFICATES: The Class B-3, Class B-4 and
Class B-5 Certificates, collectively.

                  LAST SCHEDULED DISTRIBUTION DATE: The Distribution Date in
April 2035, which is the Distribution Date immediately following the maturity
date for the Loan with the latest maturity date.

                  LIBOR: For the initial Interest Accrual Period, the Securities
Administrator will determine One-Month LIBOR for such Interest Accrual Period
based on information available on the second Business Day preceding the Closing
Date with respect to the Group I Senior Certificates (other than the Class I-A-7
Certificates) and the Group II Senior Certificates (other than the Class II-A-3
Certificates), and for any Interest Accrual Period thereafter, on the second
Business Day preceding the related Interest Accrual Period, the one month rate
which appears on the Dow Jones Telerate System, page 3750, as of 11:00 a.m.,
London time on the LIBOR Determination Date. If such rate is not provided, LIBOR
shall mean the rate determined by the Securities Administrator (or a calculation
agent on its behalf) in accordance with the following procedure:

                  (i) The Securities Administrator on the LIBOR Determination
Date will request the principal London offices of each of four major Reference
Banks in the London interbank market, as selected by the Securities
Administrator, to provide the Securities Administrator with its offered
quotation for deposits in United States dollars for the upcoming one-month
period, commencing on the second LIBOR Business Day immediately following such
LIBOR Determination Date, to prime banks in the London interbank market at
approximately 11:00 a.m. London time on such LIBOR Determination Date and in a
principal amount that is representative for a single transaction in United
States dollars in such market at such time. If at least two such quotations are
provided, LIBOR determined on such LIBOR Determination Date will be the
arithmetic mean of such quotations.

                  (ii) If fewer than two quotations are provided, LIBOR
determined on such LIBOR Determination Date will be the arithmetic mean of the
rates quoted at approximately 11:00 a.m. in New York City on such LIBOR
Determination Date by three major banks in New York City selected by the
Securities Administrator for one-month United States dollar loans to lending
European banks, in a principal amount that is representative for a single
transaction in United States dollars in such market at such time; provided,
however, that if the banks so selected by the Securities Administrator are not
quoting as mentioned in this sentence, LIBOR determined on such LIBOR
Determination Date will continue to be LIBOR as then currently in effect on such
LIBOR Determination Date.

                  The establishment of LIBOR and each Pass-Through Rate for the
Group I Senior Certificates (other than the Class I-A-7 Certificates) and Group
II Senior Certificates (other than the Class II-A-3 Certificates) by the
Securities Administrator shall (in the absence of manifest error) be final,
conclusive and binding upon each Holder of a Group I Senior Certificates (other
than the Class I-A-7 Certificates) and Group II Senior Certificates (other than
the Class II-A-3 Certificates) and the Securities Administrator.

                  LIBOR BUSINESS DAY: Any day on which dealings in United States
dollars are transacted in the London interbank market.

                  LIBOR DETERMINATION DATE: The second LIBOR Business Day before
the first day of the related Interest Accrual Period.

                  LIQUIDATED LOAN: A Loan as to which the related Interim
Servicer or Servicer, as applicable, has determined in accordance with its
customary servicing practices that all amounts which it expects to recover from
or on account of such Loan, whether from Insurance Proceeds, Liquidation
Proceeds or otherwise, have been recovered. For purposes of this definition,
acquisition of a Mortgaged Property by the Trust Fund shall not constitute final
liquidation of the related Loan.

                  LIQUIDATION PRINCIPAL: With respect to any Distribution Date
and any Loan Group, the principal portion of net Liquidation Proceeds received
with respect to each such Loan which became a Liquidated Loan (but not in excess
of the Principal Balance thereof) during the related Prepayment Period.

                  LIQUIDATION PROCEEDS: The amount (other than Insurance
Proceeds or amounts received in respect of the rental of any REO Property prior
to REO Disposition) received by the related Interim Servicer or Servicer, as
applicable, pursuant to the related Servicing Agreement in connection with (i)
the taking of all or a part of a Mortgaged Property by exercise of the power of
eminent domain or condemnation, (ii) the liquidation of a defaulted Loan through
a trustee's sale, foreclosure sale or otherwise, or (iii) the repurchase,
substitution or sale of a Loan or an REO Property pursuant to or as contemplated
by Section 2.3 or Section 9.1, in each case net of any portion thereof that
represents a recovery of principal or interest for which an Advance was made by
an Interim Servicer, a Servicer or the Master Servicer.

                  LOAN DOCUMENTS: The documents evidencing or relating to each
Loan delivered to the Custodian under the Custodial Agreement on behalf of the
Trustee.

                  LOAN GROUP: The Group I Loans or Group II Loans, as
applicable.

                  LOAN SCHEDULE: The schedule, as amended from time to time, of
Loans, attached hereto as Schedule One, which shall set forth as to each Loan
the following, among other things:

                  (i)      the loan number of the Loan and name of the related
                           Mortgagor;

                  (ii)     the street address of the Mortgaged Property
                           including city, state and zip code;

                  (iii)    the Mortgage Interest Rate as of the Cut-Off Date;

                  (iv)     the original term and maturity date of the related
                           Mortgage Note;

                  (v)      the original Principal Balance;

                  (vi)     the first payment date;

                  (vii)    the Monthly Payment in effect as of the Cut-Off Date;

                  (viii)   the date of the last paid installment of interest;

                  (ix)     the unpaid Principal Balance as of the close of
                           business on the Cut-Off Date;

                  (x)      the Loan-to-Value ratio at origination;

                  (xi)     the type of property and the Original Value of the
                           Mortgaged Property;

                  (xii)    whether a primary mortgage insurance policy is in
                           effect as of the Cut-Off Date;

                  (xiii)   the nature of occupancy at origination; and

                  (xiv)    the related Loan Group.

                  LOANS: The Mortgages and the related Mortgage Notes, each
transferred and assigned to the Trustee pursuant to the provisions hereof as
from time to time are held as part of the Trust Fund, as so identified in the
Loan Schedule. Each of the Loans is referred to individually in this Agreement
as a "Loan".

                  LOAN-TO-VALUE RATIO: The original principal amount of a Loan
divided by the Original Value; however, references to "current Loan-to-Value
Ratio" shall mean the then current Principal Balance of a Loan divided by the
Original Value.

                  M&T: M&T Mortgage Corporation, a New York banking corporation,
or any successor thereto.

                  M&T SERVICING AGREEMENT: The Interim Servicing and Servicing
Rights Purchase Agreement, dated as of March 1, 2004 between the Seller and M&T
(as modified pursuant to the related Assignment Agreement).

                  MASTER SERVICER: As of the Closing Date, Wells Fargo Bank,
National Association and thereafter, its respective successors in interest who
meet the qualifications of this Agreement. The Master Servicer and the
Securities Administrator shall at all times be the same Person or Affiliates.

                  MASTER SERVICER EVENT OF DEFAULT: One or more of the events
described in Section 7.1 hereof.

                  MASTER SERVICING FEE: As to each Loan and any Distribution
Date, an amount equal to one twelfth of the product of the Master Servicing Fee
Rate multiplied by the Scheduled Principal Balance of such Loan as of the Due
Date in the month preceding the month of such Distribution Date.

                  MASTER SERVICING FEE RATE:  0.002% per annum.

                  MASTER SERVICING COMPENSATION: As defined in Section 3.14(b).

                  MONTHLY ADVANCE: As to any Mortgage Loan or REO Property, any
advance made by an Interim Servicer or a Servicer in respect of any
Determination Date or in respect of any Distribution Date by a successor
Servicer (including the Master Servicer) or by the Master Servicer pursuant to
Section 4.7 of this Agreement (which advances shall not include principal or
interest shortfalls due to bankruptcy proceedings or application of the Relief
Act or similar state or local laws.)

                  MONTHLY PAYMENT: The scheduled payment of principal and
interest on a Loan which is due on any Due Date for such Loan after giving
effect to any reduction in the amount of interest collectible from any Mortgagor
pursuant to the Relief Act.

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

                  MORTGAGE: The mortgage, deed of trust or other instrument
creating a first lien on, or first priority security interest in, a Mortgaged
Property securing a Mortgage Note.

                  MORTGAGE FILE: The Loan Documents pertaining to a particular
Loan.

                  MORTGAGE INTEREST RATE: For any Loan, the per annum rate at
which interest accrues on such Loan pursuant to the terms of the related
Mortgage Note without regard to any reduction thereof as a result of the Relief
Act.

                  MORTGAGE LOAN PURCHASE AGREEMENT: The Mortgage Loan Purchase
Agreement dated as of February 28, 2005 between the Depositor and the Seller.

                  MORTGAGE NOTE: The note or other evidence of indebtedness
evidencing the indebtedness of a Mortgagor under a Loan.

                  MORTGAGE POOL: All of the Loans.

                  MORTGAGED PROPERTY: With respect to any Loan, the real
property, together with improvements thereto, securing the indebtedness of the
Mortgagor under the related Loan.

                  MORTGAGOR: The obligor on a Mortgage Note.

                  NATIONAL CITY: National City Mortgage Co., or any successor
thereto.

                  NATIONAL CITY SERVICING AGREEMENT: The Master Seller's
Warranties and Servicing Agreement, dated as of January 1, 2005 between the
Seller and National City (as modified pursuant to the related Assignment
Agreement).

                  NET INTEREST SHORTFALL: For any Distribution Date, the sum of
(i) any Prepayment Interest Shortfall for such Distribution Date, (ii) any
Relief Act Interest Shortfall for such Distribution Date and (iii) the portion
of Realized Losses attributable to interest allocated to the Certificates.

                  NET MORTGAGE RATE: For each Loan and for any date of
determination, a per annum rate equal to the Mortgage Interest Rate for such
Loan less the related Servicing Fee Rate, the Master Servicing Fee Rate and the
Credit Risk Management Fee Rate.

                  NET WAC PASS THROUGH RATE: The Net WAC Pass Through Rate for
any Distribution Date and the Class I-A-1, Class I-A-3 and Class I-A-5
Certificates is a rate per annum equal to the weighted average of the Net
Mortgage Rates of the then outstanding Group I Loans, weighted based on their
Scheduled Principal Balances as of the first day of the calendar month preceding
the month in which the Distribution Date occurs. For federal income tax
purposes, the equivalent of the foregoing shall be expressed as the weighted
average of the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular
Interest LT-IA1, REMIC II Regular Interest LT-IA3, REMIC II Regular Interest
LT-IA5 and REMIC II Regular Interest LT-IA7, weighted on the basis of the
Uncertificated Principal Balance of each such REMIC II Regular Interest.

                  The Net WAC Pass Through Rate for any Distribution Date and
the Class II-A-1 Certificates is a rate per annum equal to the weighted average
of the Net Mortgage Rates of the then outstanding Group II Loans, weighted based
on their Scheduled Principal Balances as of the first day of the calendar month
preceding the month in which the Distribution Date occurs. For federal income
tax purposes, the equivalent of the foregoing shall be expressed as the weighted
average of the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular
Interest LT-IIA1 and REMIC II Regular Interest LT-IIA3, weighted on the basis of
the Uncertificated Principal Balance of each such REMIC II Regular Interest.

                  The Net WAC Pass Through Rate for any Distribution Date and
the Subordinate Certificates is a rate per annum equal to the weighted average
of the Net Mortgage Rates of the Group I Loans and the Group II Loans (weighted
on the basis of the results of subtracting from the aggregate Principal Balance
of each Loan Group the current aggregate Certificate Principal Balance of the
related Senior Certificates (other than the Class I-A-2, Class I-A-4, Class
I-A-6 and Class II-A-2 Certificates), as of the first day of the calendar month
preceding the month in which the Distribution Date occurs). For federal income
tax purposes, the equivalent of the foregoing shall be expressed as the weighted
average of the Uncertificated REMIC II Pass-Through Rates on REMIC II Regular
Interest LT-ISUB and REMIC II Regular Interest LT-IISUB, weighted on the basis
of the Uncertificated Principal Balance of each such REMIC II Regular Interest.

                  NET WAC RATE CARRYOVER AMOUNT: Will be (a) with respect to the
Class I-A-1 Certificates and any Distribution Date on which the Class I-A-1
Pass-Through Rate is limited to the related Net WAC Pass-Through Rate, an amount
equal to the sum of (i) the excess of (x) the amount of interest such Class
I-A-1 Certificates would have been entitled to receive on such Distribution Date
had the applicable Net WAC Pass-Through Rate not been applicable to such
Certificates on such Distribution Date over (y) the amount of interest paid on
such Distribution Date at the applicable Net WAC Pass-Through Rate plus (ii) the
Net WAC Rate Carryover Amount for the previous Distribution Date not previously
distributed together with interest thereon at a rate equal to the Class I-A-1
Pass-Through Rate for the most recently ended Interest Accrual Period determined
without taking into account the applicable Net WAC Pass-Through Rate; (b) with
respect to the Class I-A-3 Certificates and any Distribution Date on which the
Class I-A-3 Pass-Through Rate is limited to the related Net WAC Pass-Through
Rate, an amount equal to the sum of (i) the excess of (x) the amount of interest
such Class I-A-3 Certificates would have been entitled to receive on such
Distribution Date had the related Net WAC Pass-Through Rate not been applicable
to such Certificates on such Distribution Date over (y) the amount of interest
paid on such Distribution Date at the related Net WAC Pass-Through Rate and (ii)
the Net WAC Rate Carryover Amount for the previous Distribution Date not
previously distributed, together with interest thereon at a rate equal to the
Class I-A-3 Pass-Through Rate for the most recently ended Interest Accrual
Period determined without taking into account the related Net WAC Pass-Through
Rate; (c) with respect to the Class I-A-5 Certificates and any Distribution Date
on which the Class I-A-5 Pass-Through Rate is limited to the related Net WAC
Pass-Through Rate, an amount equal to the sum of (i) the excess of (x) the
amount of interest such Class I-A-5 Certificates would have been entitled to
receive on such Distribution Date had the related Net WAC Pass-Through Rate not
been applicable to such Certificates on such Distribution Date over (y) the
amount of interest paid on such Distribution Date at the related Net WAC
Pass-Through Rate and (ii) the Net WAC Rate Carryover Amount for the previous
Distribution Date not previously distributed, together with interest thereon at
a rate equal to the Class I-A-5 Pass-Through Rate for the most recently ended
Interest Accrual Period determined without taking into account the related Net
WAC Pass-Through Rate; and (d) with respect to the Class II-A-1 Certificates and
any Distribution Date on which the Class II-A-1 Pass-Through Rate is limited to
the related Net WAC Pass-Through Rate, an amount equal to the sum of (i) the
excess of (x) the amount of interest such Class II-A-1 Certificates would have
been entitled to receive on such Distribution Date had the related Net WAC
Pass-Through Rate not been applicable to such Certificates on such Distribution
Date over (y) the amount of interest paid on such Distribution Date at the
related Net WAC Pass-Through Rate and (ii) the Net WAC Rate Carryover Amount for
the previous Distribution Date not previously distributed, together with
interest thereon at a rate equal to the Class II-A-1 Pass-Through Rate for the
most recently ended Interest Accrual Period determined without taking into
account the related Net WAC Pass-Through Rate.

                  NONRECOVERABLE ADVANCE: With respect to any Loan, any Advance
or Servicing Advance which the related Servicer or Interim Servicer shall have
determined to be a Nonrecoverable Advance as defined in and pursuant to the
related Servicing Agreement, or which the Master Servicer shall have determined
to be nonrecoverable pursuant to Section 4.7, respectively, and which was, or is
proposed to be, made by such Servicer, Interim Servicer or the Master Servicer.

                  NON-U.S. PERSON: A Person that is not a U.S. Person.

                  NOTIONAL AMOUNT: With respect to the Class I-A-2 Certificates
and any Distribution Date, an amount equal to the Certificate Principal Balance
of the Class I-A-1 Certificates. For federal income tax purposes the Notional
Amount of the Class I-A-2 Certificates will equal the Uncertificated Principal
Balance of REMIC II Regular Interest LT-IA1.

                  With respect to the Class I-A-4 Certificates and any
Distribution Date, an amount equal to the Certificate Principal Balance of the
Class I-A-3 Certificates. For federal income tax purposes the Notional Amount of
the Class I-A-4 Certificates will equal the Uncertificated Principal Balance of
REMIC II Regular Interest LT-IA3.

                  With respect to the Class I-A-6 Certificates and any
Distribution Date, an amount equal to the Certificate Principal Balance of the
Class I-A-5 Certificates. For federal income tax purposes the Notional Amount of
the Class I-A-6 Certificates will equal the Uncertificated Principal Balance of
REMIC II Regular Interest LT-IA5.

                  With respect to the Class II-A-2 Certificates and any
Distribution Date, an amount equal to the Certificate Principal Balance of the
Class II-A-1 Certificates. For federal income tax purposes the Notional Amount
of the Class II-A-2 Certificates will equal the Uncertificated Principal Balance
of REMIC II Regular Interest LT-IIA1.

                  OFFICER'S CERTIFICATE: With respect to any Person, a
certificate signed by the Chairman of the Board, the President or a
Vice-President, however denominated, of such Person (or, in the case of a Person
which is not a corporation, signed by the person or persons having like
responsibilities), and delivered to the Trustee.

                  OPINION OF COUNSEL: A written opinion of counsel, who may,
without limitation, be salaried counsel for the Depositor, an Interim Servicer,
a Servicer, the Securities Administrator or the Master Servicer, acceptable to
the Trustee, except that any opinion of counsel relating to (a) the
qualification of any REMIC as a REMIC or (b) compliance with the REMIC
Provisions must be an opinion of Independent counsel.

                  ORIGINAL VALUE: With respect to any Loan other than a Loan
originated for the purpose of refinancing an existing mortgage debt, the lesser
of (a) the Appraised Value (if any) of the Mortgaged Property at the time the
Loan was originated or (b) the purchase price paid for the Mortgaged Property by
the Mortgagor. With respect to a Loan originated for the purpose of refinancing
existing mortgage debt, the Original Value shall be equal to the lesser of (a)
the Appraised Value of the Mortgaged Property at the time the Loan was
originated or (b) the appraised value at the time the refinanced mortgage debt
was incurred.

                  OTS: The Office of Thrift Supervision, or any successor
thereto.

                  OWNERSHIP INTEREST: With respect to any Residual Certificate,
any ownership or security interest in such Residual Certificate, including any
interest in a Residual Certificate as the Holder thereof and any other interest
therein whether direct or indirect, legal or beneficial, as owner or as pledge.

                  PASS-THROUGH ENTITY: Any regulated investment company, real
estate investment trust, common trust fund, partnership, trust or estate, and
any organization to which Section 1381 of the Code applies.

                  PASS-THROUGH RATE: With respect to the Class I-A-1
Certificates and the Distribution Date in March 2005, approximately 3.00% per
annum, and with respect to any Distribution Date thereafter, a per annum rate
equal to the lesser of (a) One-Month LIBOR plus 0.40% per annum and (b) the
weighted average of the Net Mortgage Rates of the Group I Loans for the related
Distribution Date. For federal income tax purposes, the Pass-Through Rate on the
Class I-A-1 Certificates will equal the lesser of (a) One-Month LIBOR plus 0.40%
per annum and (b) the related Net WAC Pass-Through Rate.

                  With respect to the Class I-A-2 Certificates and the
Distribution Date in March 2005, approximately 2.9447% per annum, and with
respect to any Distribution Date thereafter, a per annum rate equal to the
excess, if any, of the weighted average of the Net Mortgage Rates of the Group I
Loans over One-Month LIBOR plus 0.40% per annum. For federal income tax
purposes, the Pass-Through Rate on the Class I-A-2 Certificates will equal (i)
the excess, if any, of (a) the Uncertificated REMIC II Pass-Through Rate on
REMIC II Regular Interest LT-IA1 over (b) One-Month LIBOR plus 0.40% per annum.

                  With respect to the Class I-A-3 Certificates and the
Distribution Date in March 2005, approximately 2.95% per annum, and with respect
to any Distribution Date thereafter, will be a per annum rate equal to the least
of (a) One-Month LIBOR plus 0.35% per annum, (b) the weighted average of the Net
Mortgage Rates of the Group I Loans for the related Distribution Date and (c)
6.25% per annum, with respect to the first twelve Distribution Dates and 8.50%
per annum, with respect to any Distribution Date thereafter. For federal income
tax purposes, the Pass-Through Rate on the Class I-A-3 Certificates will equal
the least of (a) One-Month LIBOR plus 0.35% per annum, (b) the Uncertificated
REMIC II Pass-Through Rate on REMIC II Regular Interest LT-IA3 and (c) 6.25% per
annum, with respect to the first twelve Distribution Dates and 8.50% per annum,
with respect to any Distribution Date thereafter.

                  With respect to the Class I-A-4 Certificates and the
Distribution Date in March 2005, approximately 2.9947% per annum, and with
respect to any Distribution Date thereafter, a per annum rate equal to the
excess, if any, of the weighted average of the Net Mortgage Rates of the Group I
Loans for the related Distribution Date over the lesser of (i) One-Month LIBOR
plus 0.35% per annum and (ii) 6.25% per annum, with respect to the first twelve
Distribution Dates and 8.50% per annum, with respect to any Distribution Date
thereafter. For federal income tax purposes, the Pass-Through Rate on the Class
I-A-4 Certificates will equal (i) the excess, if any, of (a) the Uncertificated
REMIC II Pass-Through Rate on REMIC II Regular Interest LT-IA3 over (b) the
lesser of (i) One-Month LIBOR plus 0.35% per annum and (ii) 6.25% per annum,
with respect to any Distribution Date thereafter.

                  With respect to the Class I-A-5 Certificates and the
Distribution Date in March 2005, approximately 3.10% per annum, and with respect
to any Distribution Date thereafter, a per annum rate equal to the lesser of (a)
One-Month LIBOR plus 0.50% per annum and (b) the weighted average of the Net
Mortgage Rates of the Group I Loans for the related Distribution Date. For
federal income tax purposes, the Pass-Through Rate on the Class I-A-5
Certificates will equal the lesser of (a) One-Month LIBOR plus 0.50% per annum
and (b) the related Net WAC Pass-Through Rate.

                  With respect to the Class I-A-6 Certificates and the
Distribution Date in March 2005, approximately 2.8447% per annum, and as to any
Distribution Date thereafter, a per annum rate equal to the excess, if any, of
the weighted average of the Net Mortgage Rates of the Group I Loans for the
related Distribution Date over One-Month LIBOR plus 0.50% per annum. For federal
income tax purposes, the Pass-Through Rate on the Class I-A-6 Certificates will
equal (i) the excess, if any, of (a) the Uncertificated REMIC II Pass-Through
Rate on REMIC II Regular Interest LT-IA5 over (b) One-Month LIBOR plus 0.50% per
annum.

                  With respect to the Class I-A-7 Certificates and the
Distribution Date in March 2005, approximately 5.9447% per annum, and with
respect to any Distribution Date thereafter, a per annum rate equal to the
weighted average of the Net Mortgage Rates of the Group I Loans for the related
Distribution Date. For federal income tax purposes, the Pass-Through Rate on the
Class I-A-7 Certificates will equal the Uncertificated REMIC II Pass-Through
Rate on REMIC II Regular Interest LT-IA7.

                  With respect to the Class II-A-1 Certificates and the
Distribution Date in March 2005, approximately 2.90% per annum, and with respect
to any Distribution Date thereafter, a per annum rate equal to lesser of (a)
One-Month LIBOR plus 0.30% per annum and (b) the weighted average of the Net
Mortgage Rates of the Group II Loans for the related Distribution Date. For
federal income tax purposes, the Pass-Through Rate on the Class II-A-1
Certificates will equal the lesser of (a) One-Month LIBOR plus 0.30% per annum
and (b) the related Net WAC Pass-Through Rate.

                  With respect to the Class II-A-2 Certificates and the
Distribution Date in March 2005, approximately 2.4532% per annum, and with
respect to any Distribution thereafter, a per annum rate equal to the excess, if
any, of the weighted average of the Net Mortgage Rates of the Group II Loans for
the related Distribution Date over (i) One-Month LIBOR plus 0.30% per annum. For
federal income tax purposes, the Pass-Through Rate on the Class II-A-2
Certificates will equal (i) the excess, if any, of (a) the Uncertificated REMIC
II Pass-Through Rate on REMIC II Regular Interest LT-II-A-2 over (b) One-Month
LIBOR plus 0.30% per annum.

                  With respect to the Class II-A-3 Certificates and the
Distribution Date in March 2005, approximately 5.3532% per annum, and with
respect to any Distribution Date thereafter, a per annum rate equal to the
weighted average of the Net Mortgage Rates of the Group II Loans for the related
Distribution Date. For federal income tax purposes, the Pass-Through Rate on the
Class II-A-3 Certificates will equal the Uncertificated REMIC II Pass-Through
Rate on REMIC II Regular Interest LT-IIA3.

                  With respect to the Subordinate Certificates and the
Distribution Date in March 2005, approximately 5.8888% per annum, and with
respect to any Distribution Date thereafter, will be a per annum rate equal to
the weighted average of the Net Mortgage Rates of the Group I Loans and the
Group II Mortgage Loans for the related Distribution Date (weighted on the basis
of the results of subtracting from the aggregate Principal Balance of each Loan
Group the current aggregate Certificate Principal Balance of the related Senior
Certificates (other than the Class I-A-2, Class I-A-4, Class I-A-6, and Class
II-A-2 Certificates)). For federal income tax purposes, the Pass-Through Rate on
the Subordinate Certificates will equal the weighted average of the
Uncertificated REMIC II Pass-Through Rates on REMIC II Regular Interest LT-ISUB
and REMIC II Regular Interest LT-IISUB.

                  PAYOFF: Any voluntary payment of principal on a Loan by a
Mortgagor equal to the entire outstanding Principal Balance of such Loan, if
received in advance of the last scheduled Due Date for such Loan and is not
accompanied by scheduled interest due on any date or dates in any month or
months subsequent to the month of such payment-in-full.

                  PERCENTAGE INTEREST: With respect to any Class of Certificates
(other than the Residual Certificates) and any date of determination, the
undivided percentage ownership in such Class evidenced by such Certificate,
expressed as a percentage, the numerator of which is the initial Certificate
Principal Balance or Notional Amount represented by such Certificate and the
denominator of which is the aggregate initial Certificate Principal Balance or
Notional Amount of all of the Certificates of such Class. Each Certificate is
issuable only in minimum Percentage Interests corresponding to the Authorized
Denomination of the related Class of Certificates; provided, however, that a
single Certificate of each such Class of Certificates may be issued having a
Percentage Interest corresponding to the remainder of the aggregate initial
Certificate Principal Balance or Notional Amount of such Class or to an
otherwise Authorized Denomination for such Class plus such remainder. With
respect to any Residual Certificate, the undivided percentage ownership in such
Class evidenced by such Certificate, is as set forth on the face of such
Certificate.

                  PERMITTED TRANSFEREE: With respect to the holding or ownership
of any Residual Certificate, any Person other than (i) the United States, a
State or any political subdivision thereof, or any agency or instrumentality of
any of the foregoing, (ii) a foreign government or International Organization,
or any agency or instrumentality of either of the foregoing, (iii) an
organization (except certain farmers' cooperatives described in Code Section
521) which is exempt from the taxes imposed by Chapter 1 of the Code (unless
such organization is subject to the tax imposed by Section 511 of the Code on
unrelated business taxable income), (iv) rural electric and telephone
cooperatives described in Code Section 1381(a)(2)(C), (v) any electing large
partnership under Section 775 of the Code, (vi) any Person from whom the Trustee
or the Securities Administrator has not received an affidavit to the effect that
it is not a "disqualified organization" within the meaning of Section 860E(e)(5)
of the Code, and (vii) any other Person so designated by the Depositor based
upon an Opinion of Counsel (which shall not be an expense of the Securities
Administration or the Trustee) that the transfer of an Ownership Interest in a
Residual Certificate to such Person may cause any REMIC hereunder to fail to
qualify as a REMIC at any time that the Certificates are outstanding. The terms
"United States," "State" and "International Organization" shall have the
meanings set forth in Code Section 7701 or successor provisions. A corporation
shall 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 Freddie Mac, a majority of its board of directors is
not selected by such governmental unit.

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

                  PINNACLE DIRECT: Pinnacle Direct Funding Corporation, a
Florida corporation, or any successor thereto.

                  PINNACLE DIRECT SERVICING AGREEMENT: The Amended and Restated
Master Mortgage Loan Purchase and Interim Servicing Agreement, date as of
November 1, 2004 between the Seller and Pinnacle Direct (as modified pursuant to
the related Assignment Agreement).

                  PINNACLE FINANCIAL: Pinnacle Financial Corporation, a Florida
corporation, or any successor thereto.

                  PINNACLE FINANCIAL SERVICING AGREEMENT: The Amended and
Restated Master Mortgage Loan Purchase and Interim Servicing Agreement, date as
of January 1, 2005 between the Seller and Pinnacle Financial (as modified
pursuant to the related Assignment Agreement).

                  PLAN: As defined in Section 5.2.

                  PLAN ASSETS: As defined in Section 5.2.

                  PREPAID MONTHLY PAYMENT: Any Monthly Payment received prior to
its scheduled Due Date, which is intended to be applied to a Loan on its
scheduled Due Date and held in the related Protected Account until the related
Servicer Remittance Date following its scheduled Due Date.

                  PREPAYMENT CHARGE: With respect to any Principal Prepayment,
any prepayment premium, penalty or charge payable by a Mortgagor in connection
with any Principal Prepayment on a Loan pursuant to the terms of the related
Mortgage Note.

                  PREPAYMENT CHARGE SCHEDULE: As of any date, the list of Loans
providing for a Prepayment Charge included in the Trust Fund on such date,
attached hereto as Schedule Two (including the prepayment charge summary
attached thereto). The Depositor shall deliver or cause the delivery of the
Prepayment Charge Schedule to the Master Servicer, the Trustee and the Credit
Risk Manager on the Closing Date. The Prepayment Charge Schedule shall set forth
the following information with respect to each Prepayment Charge:

                  (i)      the Loan identifying number;

                  (ii)     a code indicating the type of Prepayment Charge;

                  (iii)    the date on which the first Monthly Payment was due
                           on the related Mortgaged Loan;

                  (iv)     the term of the related Prepayment Charge;

                  (v)      the original Principal Balance of the related Loan;
                           and

                  (vi)     the Principal Balance of the related Loan as of the
                           Cut-Off Date.

                  PREPAYMENT INTEREST SHORTFALL: For any Distribution Date and
any Loan on which a Payoff was made by a Mortgagor during the related Prepayment
Period, an amount equal to one month's interest at the applicable Net Mortgage
Rate on such Loan less the amount of interest actually paid by the Mortgagor
with respect to such Payoff.

                  PREPAYMENT PERIOD: For any Distribution Date is (i) with
respect to the Loans serviced by National City, the period commencing on the
second day of the month preceding the month in which such Distribution Date
occurs and ending on the first day of the month in which such Distribution Date
occurs, (ii) with respect to the Loans serviced by M&T, the period commencing on
the 16th day of the month preceding the month in which such Distribution Date
occurs and ending on the 15th day of the month in which such Distribution Date
occurs with respect to Payoffs, and the calendar month immediately preceding the
month in which such Distribution Date occurs with respect to Curtailments, (iii)
with respect to the Loans serviced by GreenPoint, the calendar month immediately
preceding the month in which such Distribution Date occurs, and (iv) with
respect to the Loans serviced by an Interim Servicer, as set forth in the
related Servicing Agreement.

                  PRINCIPAL BALANCE: For any Loan and at the time of any
determination, the principal balance of such Loan remaining to be paid at the
close of business on the Cut-Off Date, after deduction of all principal payments
due on or before the Cut-Off Date whether or not received, reduced by the
principal portion of all amounts received with respect to such Loan after the
Cut-Off Date and distributed or to be distributed to Certificateholders through
the Distribution Date in the month of such determination. In the case of a
Substitute Loan, "Principal Balance" shall mean, at the time of any
determination, the principal balance of such Substitute Loan on the related
Cut-Off Date, reduced by the principal portion of all amounts received with
respect to such Loan after the Cut-Off Date and distributed or to be distributed
to Certificateholders through the Distribution Date in the month of
determination. The Principal Balance of a Liquidated Loan shall be zero.

                  PRINCIPAL DISTRIBUTION AMOUNT: With respect to any
Distribution Date and a Loan Group, the sum of:

                  (1)      scheduled principal payments on the Group I Loans or
                           Group II Loans, as applicable, due during the related
                           Due Period;

                  (2)      the principal portion of repurchase proceeds received
                           with respect to the Group I Loans or Group II Loans,
                           as applicable, which were repurchased as permitted or
                           required by this Agreement during the related
                           Prepayment Period; and

                  (3)      any other unscheduled payments of principal which
                           were received on the Group I Loans or Group II Loans,
                           as applicable, during the related Prepayment Period,
                           other than Payoffs, Curtailments or Liquidation
                           Principal.

                  PRINCIPAL PREPAYMENT: Any payment of principal on a Loan which
constitutes a Payoff or a Curtailment.

                  PRINCIPAL PREPAYMENT AMOUNT: On any Distribution Date and for
any Loan Group, the sum of (i) Curtailments received during the related
Prepayment Period, (ii) Payoffs received during the related Prepayment Period
and (iii) Subsequent Recoveries received during the related Prepayment Period.

                  PRO RATA ALLOCATION: On any Distribution Date with respect to
(i) the allocation of the principal portion of certain losses relating to a
Group I Loan or Group II Loan to the related Senior Certificates (other than the
Class I-A-2, Class I-A-4, Class I-A-6 and Class II-A-2 Certificates) and/or to
the Subordinate Certificates, as applicable, pro rata, according to their
respective aggregate Certificate Principal Balances on such date of allocation;
and (ii) the allocation of the interest portion of certain losses relating to a
Group I Loan or Group II Loan to the related Senior Certificates and/or to the
Subordinate Certificates, as applicable, pro rata, first according to the
Interest Distribution Amounts due to such Classes on such date of allocation in
reduction thereof until the amount accrued but unpaid on such Distribution Date
has been reduced to zero and then, pro rata, according to their respective
aggregate Certificate Principal Balances on such date of allocation in reduction
thereof until the Certificate Principal Balances thereof have been reduced to
zero.

                  PROTECTED ACCOUNT: An account or accounts established and
maintained for the benefit of the Certificateholders by each Interim Servicer
and each Servicer with respect to the related Loans and with respect to REO
Property pursuant to the applicable Servicing Agreement.

                  PURCHASE OBLIGATION: An obligation of the Depositor or the
Seller to repurchase Loans under the circumstances and in the manner provided in
Section 2.3.

                  PURCHASE PRICE: With respect to any Loan to be purchased
pursuant to a Purchase Obligation, or any Loan to be purchased or repurchased
relating to an REO Property, and as confirmed by an Officers' Certificate from
the Master Servicer to the Trustee and the Securities Administrator, an amount
equal to the sum of (i) 100% of the Principal Balance thereof as of the date of
purchase (or in the case of an REO Property being purchased as provided in
Section 9.1, 100% of the fair market value of such REO Property), (ii) in the
case of (x) a Loan, accrued interest on such Principal Balance at the applicable
Net Mortgage Rate from the date interest was last paid by the related Mortgagor
or the date an Advance by the applicable Servicer or the Master Servicer, which
payment or Advance had as of the date of purchase been distributed pursuant to
Section 4.1, through the end of the calendar month in which the purchase is to
be effected and (y) an REO Property, the sum of (1) accrued interest on such
Principal Balance at the applicable Net Mortgage Rate from the date interest was
last paid by the related Mortgagor or the date an Advance by the applicable
Servicer or the Master Servicer through the end of the calendar month
immediately preceding the calendar month in which such REO Property was
acquired, plus (2) REO Imputed Interest for such REO Property for each calendar
month commencing with the calendar month in which such REO Property was acquired
and ending with the calendar month in which such purchase is to be effected, net
of the total of all net rental income, Insurance Proceeds, Liquidation Proceeds
and Advances that as of the date of purchase had been distributed as or to cover
REO Imputed Interest in accordance with the applicable Servicing Agreement,
(iii) any unreimbursed Servicing Advances and Advances (including Nonrecoverable
Advances) and any unpaid Servicing Fees or Master Servicing Fees allocable to
such Loan or REO Property and (iv) in the case of a Loan required to be
purchased pursuant to Section 2.3, expenses reasonably incurred or to be
incurred by the Master Servicer, the Interim Servicers, the Servicers, the
Trustee or the Securities Administrator in respect of the breach or defect
giving rise to a Purchase Obligation and any costs and damages incurred by the
Trust Fund in connection with any violation by any such Loan of any predatory or
abusive lending law.

                  RATING AGENCY: Initially, each of Fitch and Moody's;
thereafter, each nationally recognized statistical rating organization that has
rated the Certificates at the request of the Depositor, or their respective
successors in interest.

                  RATINGS: As of any date of determination, the ratings, if any,
of the Certificates as assigned by each Rating Agency.

                  REALIZED LOSS: With respect to any Distribution Date and any
Liquidated Loan which became a Liquidated Loan during the related Prepayment
Period, the sum of (i) the Principal Balance of such Loan remaining outstanding
(after all recoveries of principal, including net Liquidation Proceeds, have
been applied thereto) and the principal portion of Nonrecoverable Advances with
respect to such Loan which have been reimbursed from amounts received in respect
of the Loans in such Loan Group other than the related Loan, and (ii) the
accrued interest on such Loan remaining unpaid and the interest portion of
Nonrecoverable Advances with respect to such Loan which have been reimbursed
from amounts received in respect of the Loans in such Loan Group other than the
related Loan. The amounts described in clause (i) shall be the principal portion
of Realized Losses and the amounts described in clause (ii) shall be the
interest portion of Realized Losses. For any Distribution Date and any Loan
which is not a Liquidated Loan, the amount of any Bankruptcy Loss incurred with
respect to such Loan as of the related Due Date shall be treated as a Realized
Loss allocable to principal.

                  RECORD DATE: With respect to the Group I Senior Certificates
(other than the Class I-A-7 Certificates) and the Group II Senior Certificates
(other than the Class II-A-3 Certificates), the Business Day prior to the
related Distribution Date; and with respect to the Class I-A-7, Class II-A-3 and
Subordinate Certificates, the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs.

                  REFERENCE BANKS: Barclay's Bank PLC, The Tokyo Mitsubishi Bank
and National Westminster Bank PLC and their successors in interest; provided,
however, that if any of the foregoing banks are not suitable to serve as a
Reference Bank, then any leading banks selected by the Securities Administrator
which are engaged in transactions in Eurodollar deposits in the International
Eurocurrency market (i) with an established place of business in London, (ii)
not controlling, under the control of or under common control with the Depositor
or any Affiliate thereof and (iii) which have been designated as such by the
Securities Administrator.

                  REGULAR INTEREST CERTIFICATES: The Certificates, other than
the Class R Certificates.

                  REGULATION S PERMANENT GLOBAL CERTIFICATE: As defined in
Section 5.1.

                  REGULATION S TEMPORARY GLOBAL CERTIFICATE: As defined in
Section 5.1.

                  RELEASE DATE: The 40th day after the later of (i) commencement
of the offering of the Certificates and (ii) the Closing Date.

                  RELIEF ACT: The Servicemembers Relief Act of 2003, as amended,
or similar state laws.

                  RELIEF ACT INTEREST SHORTFALL: With respect to any
Distribution Date and a Loan, any reduction in the amount of interest
collectible on such Loan for the most recently ended calendar month immediately
preceding such Distribution Date as a result of the application of the Relief
Act.

                  REMIC: A "real estate mortgage investment conduit" within the
meaning of Section 860D of the Code.

                  REMIC OPINION: An Opinion of Counsel stating that, under the
REMIC Provisions, any contemplated action will not cause any REMIC to fail to
qualify as a REMIC or result in the imposition of a tax upon the Trust Fund
(including but not limited to the tax on prohibited transactions as defined in
Section 860F(a)(2) of the Code and the tax on contributions to a REMIC set forth
in Section 860G(d) of the Code).

                  REMIC PROVISIONS: Provisions of the federal income tax law
relating to real estate mortgage investment conduits which appear at Section
860A through 860G of Subchapter M of Chapter 1 of the Code, and related
provisions, and regulations and rulings promulgated thereunder, as the foregoing
may be in effect from time to time.

                  REMIC REGULAR INTERESTS: Any of the REMIC I Regular Interests,
REMIC II Regular Interests or Regular Interest Certificates.

                  REMIC I: The segregated pool of assets, with respect to which
a REMIC election is to be made, consisting of: (i) the Loans (exclusive of
payments of principal and interest due on or before the Cut-off Date, if any,
received by the Master Servicer which shall not constitute an asset of the Trust
Fund) as from time to time are subject to this Agreement and all payments under
and proceeds of such Loans (exclusive of any late payment charges received on
the Loans), together with all documents included in the related Mortgage File,
subject to Section 2.1; (ii) such funds or assets as from time to time are
deposited in the Distribution Account and belonging to the Trust Fund; (iii) any
REO Property in respect of a Group I Loan or a Group II Loan; (iv) the primary
hazard insurance policies, if any, the primary insurance policies, if any, and
all other insurance policies with respect to the Loans; and (v) the Depositor's
interest in respect of the representations and warranties made by the Seller in
the Mortgage Loan Purchase Agreement as assigned to the Trustee pursuant to
Section 2.1 hereof. Notwithstanding the foregoing, however, REMIC I specifically
excludes the Reserve Funds, the Cap Contracts and any payments made thereunder.

                  REMIC I REGULAR INTERESTS: Any of the separate
non-certificated beneficial ownership interests in REMIC I (as defined in the
Preliminary Statement) issued hereunder and designated as a Regular Interest in
REMIC I. Each REMIC I Regular Interest shall accrue interest at the related
Uncertificated REMIC I Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  REMIC I SUBORDINATE BALANCE RATIO: The ratio among the
Uncertificated Principal Balances of each of the REMIC I Regular Interests
ending with the designation "SUB," equal to the ratio between:

                  (1) the excess of (x) the aggregate Scheduled Principal
Balance of the Group I Loans over (y) the aggregate Certificate Principal
Balance of the Group I Senior Certificates (other than the Class I-A-2, Class
I-A-4 and Class I-A-6 Certificates).

                  (2) the excess of (x) the aggregate Scheduled Principal
Balance of the Group II Loans over (y) the aggregate Certificate Principal
Balance of the Group II Senior Certificates (other than the Class II-A-2
Certificates).

                  REMIC II: The pool of assets consisting of the REMIC I Regular
Interests and all payments of principal or interest on or with respect to the
REMIC I Regular Interests after the Cut-Off Date.

                  REMIC II REGULAR INTERESTS: Any of the separate
non-certificated beneficial ownership interests in REMIC II (as defined in the
Preliminary Statement) issued hereunder and designated as a Regular Interest in
REMIC II. Each REMIC II Regular Interest shall accrue interest at the related
Uncertificated REMIC II Pass-Through Rate in effect from time to time, and shall
be entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Principal
Balance as set forth in the Preliminary Statement hereto.

                  REMIC III: The pool of assets consisting of the REMIC II
Regular Interests and all payments of principal or interest on or with respect
to the REMIC II Regular Interests after the Cut-Off Date.

                  REMIC III CERTIFICATES: The Group I Senior Certificates, Group
II Senior Certificates and the Subordinate Certificates.

                  REMITTANCE REPORT: A report by the Securities Administrator
pursuant to Section 4.6.

                  REO DISPOSITION: The sale or other disposition of an REO
Property on behalf of REMIC I.

                  REO IMPUTED INTEREST: As to any REO Property, for any calendar
month during which such REO Property was at any time part of REMIC I, one
month's interest at the applicable Net Mortgage Rate on the Scheduled Principal
Balance of such REO Property (or, in the case of the first such calendar month,
of the related Loan, if appropriate) as of the close of business on the
Distribution Date in such calendar month.

                  REO PROPERTY: A Mortgaged Property, title to which has been
acquired by a Servicer on behalf of the Trust Fund through foreclosure, deed in
lieu of foreclosure or otherwise.

                  RESERVE FUND: The Class I-A-1 Reserve Fund, the Class I-A-3
Reserve Fund, the Class I-A-5 Reserve Fund or the Class II-A-1 Reserve Fund, as
applicable.

                  RESIDUAL CERTIFICATEHOLDER: The registered Holder of a Class R
Certificate.

                  RESIDUAL CERTIFICATES: The Class R Certificates. Components
R-1, R-2 and R-3 of the Class R Certificates are hereby designated as the sole
Class of "residual interests" in each of REMIC I, REMIC II and REMIC III,
respectively.

                  RESPONSIBLE OFFICER: When used with respect to the Trustee,
any officer in the corporate trust department or similar group of the Trustee
with direct responsibility for the administration of this Agreement and also,
with respect to a particular corporate trust matter, any other officer to whom
such matter is referred because of his or her knowledge of and familiarity with
the particular subject. When used with respect to the Master Servicer or the
Securities Administrator, the Chairman or Vice-Chairman of the Board of
Directors or Trustees, the Chairman or Vice-Chairman of the Executive or
Standing Committee of the Board of Directors or Trustees, the President, the
Chairman of the Committee on Trust Matters, any Vice-President, any Assistant
Vice-President, the Secretary, any Assistant Secretary, the Treasurer, any
Assistant Treasurer, the Cashier, any Assistant Cashier, any Trust Officer or
Assistant Trust Officer, the Controller, any Assistant Controller or any other
officer customarily performing functions similar to those performed by any of
the above-designated officers and in each case having direct responsibility for
the administration of this Agreement, and also, with respect to a particular
matter, any other officer to whom such matter is referred because of such
officer's knowledge of and familiarity with the particular subject. When used
with respect to the Depositor or any other Person, the Chairman or Vice-Chairman
of the Board of Directors, the Chairman or Vice-Chairman of any executive
committee of the Board of Directors, the President, any Vice-President, the
Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, or
any other officer of the Depositor customarily performing functions similar to
those performed by any of the above-designated officers and also, with respect
to a particular matter, any other officer to whom such matter is referred
because of such officer's knowledge of and familiarity with the particular
subject.

                  S&P: Standard & Poor's Ratings Services, a division of The
McGraw Hill Companies, Inc. provided, that at any time it is a Rating Agency.

                  SCHEDULED PRINCIPAL BALANCE: With respect to any Loan and a
Due Date, the unpaid principal balance of such Loan as specified in the
amortization schedule (before any adjustment to such schedule by reason of
bankruptcy or similar proceeding or any moratorium or similar waiver or grace
period) for such Due Date, after giving effect to any previously applied
Curtailments, the payment of principal on such Due Date and any reduction of the
Principal Balance of such Loan by a bankruptcy court, irrespective of any
delinquency in payment by the related Mortgagor.

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

                  SECURITIES ADMINISTRATOR: As of the Closing Date, Wells Fargo
Bank, National Association and thereafter, its respective successors in interest
who meet the qualifications of this Agreement. The Securities Administrator and
the Master Servicer shall at all times be the same Person or Affiliates.

                  SELLER: DB Structured Products, Inc., or its successor in
interest, in its capacity as seller under the Mortgage Loan Purchase Agreement
and in its capacity as assignor under the Assignment Agreements.

                  SENIOR INTEREST SHORTFALL AMOUNT: For any Distribution Date
and the Group I Senior Certificates and Group II Senior Certificates will be
equal to that amount by which the Interest Distribution Amount payable to the
related Senior Certificates on such Distribution Date exceeds the Group I
Available Distribution Amount or Group II Available Distribution Amount, as
applicable.

                  SENIOR LIQUIDATION AMOUNT: For any Distribution Date and the
Group I Loans and Group II Loans, the aggregate with respect to each related
Loan which became a Liquidated Loan during the related Prepayment Period, of the
lesser of: (i) the related Senior Percentage of the Principal Balance of such
Loan, and (ii) the related Senior Prepayment Percentage of the Liquidation
Principal with respect to such Loan.

                  SENIOR PERCENTAGE: As of the Closing Date, 94.45% for the
Group I Loans, and 94.45% for the Group II Loans; thereafter, with respect to a
Group I Loan and Group II Loan for any Distribution Date, the percentage
equivalent of a fraction, the numerator of which is the aggregate Certificate
Principal Balance of the Senior Certificates (other than the Class I-A-2, Class
I-A-4, Class I-A-6 and Class II-A-2 Certificates), as applicable, immediately
preceding such Distribution Date, and the denominator of which is the aggregate
Scheduled Principal Balance of the Loans in such Loan Group, in each case as of
the first day of the related Due Period.

                  SENIOR PREPAYMENT PERCENTAGE: For Loan Group I and Loan Group
         II and any Distribution Date, the percentage indicated in the following
         table:

<TABLE>
<CAPTION>

          DISTRIBUTION DATE OCCURRING IN                                 SENIOR PREPAYMENT PERCENTAGE
          ------------------------------                                 ----------------------------
<S>                                                  <C>
March 2005 through February 2010.....................100%.
March 2010 through February 2011.....................Senior Percentage + 70% of the Subordinate Percentage
March 2011 through February 2012.....................Senior Percentage + 60% of the Subordinate Percentage
March 2012 through February 2013.....................Senior Percentage + 40% of the Subordinate Percentage
March 2013 through February 2014.....................Senior Percentage + 20% of the Subordinate Percentage
March 2014 and thereafter............................Senior Percentage
</TABLE>

Notwithstanding the foregoing, the Senior Prepayment Percentage with respect to
the Group I Loans and Group II Loans will be equal to 100% on any Distribution
Date on which (i) the Aggregate Senior Percentage for that Distribution Date
exceeds the Aggregate Senior Percentage as of the Closing Date or (ii) the
aggregate Scheduled Principal Balance of the Group I Loans and Group II Loans
(including Group I Loans and Group II Loans in bankruptcy, foreclosure and
related REO Property) which are 60 or more days delinquent (averaged over the
preceding six-month period), as a percentage of the Aggregate Subordinate
Amount, is equal to or greater than 50% as of such Distribution Date, or
cumulative Realized Losses on the Group I Loans and Group II Loans allocated to
the Subordinate Certificates are greater than the following amounts:

<TABLE>
<CAPTION>
                                                                      PERCENTAGE OF THE AGGREGATE SUBORDINATE
               DISTRIBUTION DATE OCCURRING IN                              AMOUNT AS OF THE CUT-OFF DATE
               ------------------------------                              -----------------------------
<S>                                                                                     <C>
March 2010 through February 2011.............................                           30%
March 2011 through February 2012.............................                           35%
March 2012 through February 2013.............................                           40%
March 2013 through February 2014.............................                           45%
March 2014 and thereafter....................................                           50%
</TABLE>

If on any Distribution Date the allocation to the Group I Senior Certificates
(other than the Class I-A-2, Class I-A-4 and Class I-A-6 Certificates) or Group
II Senior Certificates (other than the Class II-A-2 Certificates) of Principal
Prepayments in the percentage required would reduce the sum of the aggregate
Certificate Principal Balances of the Group I Senior Certificates (other than
the Class I-A-2, Class I-A-4 and Class I-A-6 Certificates) or Group II Senior
Certificates (other than the Class II-A-2 Certificates) below zero, the Senior
Prepayment Percentage for such Distribution Date shall be limited to the
percentage necessary to reduce such sum to zero.

                  SENIOR PRINCIPAL DISTRIBUTION AMOUNT: With respect to any
Distribution Date and a Loan Group, the sum of the following for that
Distribution Date:

                  (1) the related Senior Percentage of the related Principal
Distribution Amount;

                  (2) the related Senior Prepayment Percentage of the related
Principal Prepayment Amount; and

                  (3) the related Senior Liquidation Amount.

                  SERVICER: National City, GreenPoint or M&T, as applicable, or
any successor appointed under the applicable Servicing Agreement.

                  SERVICER REMITTANCE DATE: With respect to each Distribution
Date shall mean (i) with respect to National City and M&T, the 18th day of the
calendar month in which such Distribution Date occurs or, if such 18th day is
not a Business Day, the Business Day immediately preceding such 18th day, (ii)
with respect to GreenPoint, the 10th day of the calendar month in which such
Distribution Date occurs or, if such 10th day is not a Business Day, the
Business Day immediately preceding such 10th day, and (iii) with respect to each
Interim Servicer, the date set forth in the related Servicing Agreement.

                  SERVICING ADVANCES: The customary reasonable and necessary
"out-of-pocket" costs and expenses incurred prior to or on or after the Cut-Off
Date (the amounts incurred prior to the Cut-Off Date are identified on Schedule
3 hereto) by the related Interim Servicer or the related Servicer in connection
with a default, delinquency or other unanticipated event by the related Interim
Servicer, or the related Servicer in the performance of its servicing
obligations, including, but not limited to, the cost of (i) the preservation,
restoration and protection of a Mortgaged Property, (ii) any enforcement or
judicial proceedings, including foreclosures, in respect of a particular Loan
and (iii) the management (including reasonable fees in connection therewith) and
liquidation of any REO Property. No Interim Servicer or Servicer shall be
required to make any Servicing Advance in respect of a Loan or REO Property
that, in the good faith business judgment of such Interim Servicer or Servicer,
as applicable, would not be ultimately recoverable from related Insurance
Proceeds or Liquidation Proceeds on such Loan or REO Property as provided
herein.

                  SERVICING AGREEMENT: The National City Servicing Agreement,
the GreenPoint Servicing Agreement, the M&T Servicing Agreement, the Cameron
Servicing Agreement, the First Financial Servicing Agreement, the Pinnacle
Direct Servicing Agreement or the Pinnacle Financial Servicing Agreement, each
as modified by the related Assignment Agreement.

                  SERVICING FEE: With respect to each Loan and for any
Distribution Date, an amount equal to one twelfth of the product of the related
Servicing Fee Rate multiplied by the Scheduled Principal Balance of such Loan as
of the Due Date in the month preceding the month of such Distribution Date. The
Servicing Fee is payable solely from collections of interest on the Loans or as
otherwise provided in the related Servicing Agreement.

                  SERVICING FEE RATE: As set forth in the related Servicing
Agreement.

                  SERVICING OFFICER: Any individual involved in, or responsible
for, the administration and servicing of the Loans whose name and specimen
signature appear on a list of servicing officers furnished to the Trustee, the
Depositor and the Securities Administrator on the Closing Date by each Servicer
and the Master Servicer, as such lists may from time to time be amended.

                  SPECIAL HAZARD COVERAGE: As of the Cut-Off Date, approximately
$5,231,199.22 with respect to the Group I Loans and $2,610,000 with respect to
the Group II Loans. On each Anniversary, the Special Hazard Coverage will be
reduced to an amount equal to the lesser of:

                  (1)      the greatest of:

                           (a)      the aggregate Principal Balance of the Group
                                    I Loans and Group II Loans located in the
                                    zip code containing the largest aggregate
                                    Principal Balance of the Group I Loans and
                                    Group II Loans;

                           (b)      1.0% of the aggregate Principal Balance of
                                    the Group I Loans and Group II Loans; and

                           (c)      twice the Principal Balance of the largest
                                    Group I Loan or Group II Loan, calculated as
                                    of the Due Date in the immediately preceding
                                    month (after giving effect to all scheduled
                                    payments whether or not received); and

                  (2)      the Special Hazard Coverage as of the Cut-Off Date as
                           reduced by the Special Hazard Losses allocated to the
                           Certificates related to the Group I Loans and Group
                           II Loans since the Cut-Off Date.

                  SPECIAL HAZARD LOSS: The occurrence of any direct physical
loss or damage to a Mortgaged Property relating to a Liquidated Loan, as
reported by the related Servicer, not covered by a standard hazard maintenance
policy with extended coverage which is caused by or results from any cause
except: (i) fire, lightning, windstorm, hail, explosion, riot, riot attending a
strike, civil commotion, vandalism, aircraft, vehicles, smoke, sprinkler
leakage, except to the extent of that portion of the loss which was uninsured
because of the application of a co-insurance clause of any insurance policy
covering these perils; (ii) normal wear and tear, gradual deterioration,
inherent vice or inadequate maintenance of all or part thereof; (iii) errors in
design, faulty workmanship or materials, unless the collapse of the property or
a part thereof ensues and then only for the ensuing loss; (iv) nuclear reaction
or nuclear radiation or radioactive contamination, all whether controlled or
uncontrolled and whether such loss be direct or indirect, proximate or remote or
be in whole or in part caused by, contributed to or aggravated by a peril
covered by this definition of Special Hazard Loss; (v) hostile or warlike action
in time of peace or war, including action in hindering, combating or defending
against an actual, impending or expected attack (a) by any government or
sovereign power (dejure or defacto), or by an authority maintaining or using
military, naval or air forces, (b) by military, naval or air forces, or (c) by
an agent of any such government, power, authority or forces; (vi) any weapon of
war employing atomic fission or radioactive force whether in time of peace or
war; (vii) insurrection, rebellion, revolution, civil war, usurped power or
action taken by governmental authority in hindering, combating or defending
against such occurrence; or (viii) seizure or destruction under quarantine or
customs regulations, or confiscation by order of any government or public
authority.

                  STARTUP DAY: With respect to each REMIC, the day designated as
such pursuant to Section 10.1(b) hereof.

                  STEP DOWN PERCENTAGE: For the related Distribution Date and
the Class I-A-7 Certificates and Class II-A-3 Certificates, the percentage
indicated below:

<TABLE>
<CAPTION>

              DISTRIBUTION DATE OCCURRING IN:                                 STEP DOWN PERCENTAGE:
              -------------------------------                                 ---------------------
<S>                                                                                    <C>
             March 2005 through February 2010                                           0%
             March 2010 through February 2011                                          30%
             March 2011 through February 2012                                          40%
             March 2012 through February 2013                                          60%
             March 2013 through February 2014                                          80%
                 March 2014 and thereafter                                             100%
</TABLE>

                  SUBORDINATE CERTIFICATES: The Class M, Class B-1, Class B-2,
Class B-3, Class B-4 and Class B-5 Certificates.

                  SUBORDINATE LIQUIDATION AMOUNT: For a Distribution Date and
the Group I Loans and Group II Loans, the excess, if any, of (i) the aggregate
Liquidation Principal for all Loans in such Loan Group which became Liquidated
Loans during the related Prepayment Period, over (ii) the related Senior
Liquidation Amount for such Distribution Date received during the related
Prepayment Period.

                  SUBORDINATE PERCENTAGE: For any Distribution Date and the
Group I Loans and Group II Loans, 100% minus the related Senior Percentage for
such date. As of the Closing Date, the Subordinate Percentage will be 5.55% with
respect to the Group I Loans and 5.55% with respect to the Group II Loans.

                  SUBORDINATE PREPAYMENT PERCENTAGE: For any Distribution Date,
100% minus the related Senior Prepayment Percentage. As of the Closing Date, the
Subordinate Prepayment Percentage will be 0% for the Group I Loans and 0% for
the Group II Loans.

                  SUBORDINATE PRINCIPAL AMOUNT: With respect to any Distribution
Date and the Group I Loans and Group II Loans, an amount equal to the sum of the
following for that Distribution Date:

                  (1)      the related Subordinate Percentage of the related
                           Principal Distribution Amount;

                  (2)      the related Subordinate Principal Prepayment Amount;
                           and

                  (3)      the related Subordinate Liquidation Amount.

                  SUBORDINATE PRINCIPAL PREPAYMENT AMOUNT: For any Distribution
Date and the Group I Loans and Group II Loans, the related Subordinate
Prepayment Percentage of the Principal Prepayment Amount for such Distribution
Date.

                  SUBORDINATION LEVEL: On any specified date and any Class of
Subordinate Certificates, the percentage obtained by dividing: (1) the sum of
the aggregate Certificate Principal Balances of all Classes of Subordinate
Certificates which are subordinate in right of payment to such Class as of such
date, before giving effect to distributions of principal or allocations of
related Realized Losses on such date; by (2) the sum of the aggregate
Certificate Principal Balances of all Classes of Certificates relating to the
Group I Loans or Group II Loans (other than the Class I-A-2, Class I-A-4, Class
I-A-6 and Class II-A-2 Certificates) as of such date, before giving effect to
distributions of principal or allocations of related Realized Losses on such
date.

                  SUBSEQUENT RECOVERIES: With respect to any Distribution Date,
all amounts received during the related Prepayment Period by the related Interim
Servicer or the related Servicer specifically related to a defaulted Loan or
disposition of an REO Property prior to the related Prepayment Period that
resulted in a Realized Loss, after the liquidation or disposition of such
defaulted Loan.

                  SUBSTITUTE LOAN: A mortgage loan substituted for a Deleted
Loan pursuant to the terms of this Agreement which must, on the date of such
substitution, (i) have an outstanding principal balance, after application of
all scheduled payments of principal and interest due during or prior to the
month of substitution, not in excess of the Scheduled Principal Balance of the
Deleted Loan as of the Due Date in the calendar month during which the
substitution occurs, (ii) have a Mortgage Interest Rate not less than (and not
more than one percentage point in excess of) the Mortgage Interest Rate of the
Deleted Loan, (iii) have a remaining term to maturity not greater than (and not
more than one year less than) that of the Deleted Loan, (iv) have the same Due
Date as the Due Date on the Deleted Loan, (v) have a Loan-to-Value Ratio as of
the date of substitution equal to or lower than the Loan-to-Value Ratio of the
Deleted Loan as of such date, (vi) have a risk grading at least equal to the
risk grading assigned on the Deleted Loan, (vii) is a "qualified mortgage" as
defined in the REMIC Provisions and (viii) conform to each representation and
warranty set forth in Section 6 of the Mortgage Loan Purchase Agreement
applicable to the Deleted Loan. In the event that one or more mortgage loans are
substituted for one or more Deleted Loans, the amounts described in clause (i)
hereof shall be determined on the basis of aggregate principal balances, the
Mortgage Interest Rates described in clause (ii) hereof shall be determined on
the basis of weighted average Mortgage Interest Rates, the terms described in
clause (iii) hereof shall be determined on the basis of weighted average
remaining term to maturity, the Loan-to-Value Ratios described in clause (v)
hereof shall be satisfied as to each such mortgage loan, the risk gradings
described in clause (vi) hereof shall be satisfied as to each such mortgage loan
and, except to the extent otherwise provided in this sentence, the
representations and warranties described in clause (vii) hereof must be
satisfied as to each Substitute Loan or in the aggregate, as the case may be.

                  TAX MATTERS PERSON: The Holder of the Class R Certificates
issued hereunder or any Permitted Transferee of such Class R Certificateholder
shall be the initial "tax matters person" for REMIC I, REMIC II and REMIC III
within the meaning of Section 6231(a)(7) of the Code.

                  TERMINATION PRICE: As defined in Section 9.1.

                  TRANSFEREE: Any Person who is acquiring by an Ownership
Interest in a Junior Subordinate Certificate or Residual Certificate.

                  TRUST FUND: Collectively, all of the assets of REMIC I, REMIC
II, REMIC III, the Cap Contracts, the Reserve Funds and any amounts on deposit
therein and any proceeds thereof.

                  TRUST REMIC: Any of REMIC I , REMIC II or REMIC III.

                  TRUSTEE: HSBC Bank USA, National Association, a national
banking association, or its successor in interest, or any successor trustee
appointed as herein provided.

                  UNCERTIFICATED ACCRUED INTEREST: With respect to each REMIC
Regular Interest on each Distribution Date, an amount equal to one month's
interest at the related Uncertificated Pass-Through Rate on the Uncertificated
Principal Balance of such REMIC Regular Interest. In each case, Uncertificated
Accrued Interest will be reduced by any Prepayment Interest Shortfalls and
shortfalls resulting from application of the Relief Act.

                  UNCERTIFICATED PRINCIPAL BALANCE: With respect to each REMIC
Regular Interest, the principal amount of such REMIC Regular Interest
outstanding as of any date of determination. As of the Closing Date, the
Uncertificated Principal Balance of each REMIC Regular Interest shall equal the
amount set forth in the Preliminary Statement hereto as its initial
Uncertificated Principal Balance. On each Distribution Date, the Uncertificated
Principal Balance of each REMIC Regular Interest shall be reduced by all
distributions of principal made on such REMIC Regular Interest on such
Distribution Date pursuant to Sections 4.1 and 4.3, as applicable and, if and to
the extent necessary and appropriate, shall be further reduced on such
Distribution Date by Realized Losses, as provided in Sections 4.2. The
Uncertificated Principal Balance of each REMIC Regular Interest shall never be
less than zero.

                  UNCERTIFICATED REMIC I PASS-THROUGH RATE: With respect to
REMIC I Regular Interest LT-1GRP, the weighted average of the Net Mortgage Rates
on the Group I Loans for that Distribution Date. With respect to REMIC I Regular
Interest LT-2GRP, the weighted average of the Net Mortgage Rates on the Group II
Loans for that Distribution Date. With respect to REMIC I Regular Interest
LT-1SUB, REMIC I Regular Interest LT-2SUB, REMIC I Regular Interest LT-ZZZ and
REMIC I Regular Interest LT-R, the weighted average of the Net Mortgage Rates on
the Group I Loans and the Group II Loans for that Distribution Date.

                  UNCERTIFICATED REMIC II PASS-THROUGH RATE: With respect to
REMIC II Regular Interest LT-IA1, REMIC I Regular Interest LT-IA3, REMIC I
Regular Interest LT-IA5 and REMIC I Regular Interest LT-IA7, the weighted
average of the Uncertificated REMIC I Pass-Through Rate on REMIC I Regular
Interest LT-1GRP, weighted on the basis of the Uncertificated Principal Balance
of such REMIC I Regular Interest. With respect to REMIC II Regular Interest
LT-IIA1, REMIC II Regular Interest LT-IIA3 and REMIC II Regular Interest LT-R,
the weighted average of the Uncertificated REMIC I Pass-Through Rate on REMIC I
Regular Interest LT-2GRP, weighted on the basis of the Uncertificated Principal
Balance of such REMIC I Regular Interest. With respect to REMIC II Regular
interest LT-ISUB and REMIC II Regular Interest LT-IISUB, the weighted average of
the Uncertificated REMIC I Pass-Through Rate on REMIC I Regular Interest LT-1SUB
(subject to a cap and a floor equal to the weighted average of the Net Mortgage
Rates on the Group I Loans) and the Uncertificated REMIC I Pass-Through Rate on
REMIC I Regular Interest LT-2SUB (subject to a cap and a floor equal to the
weighted average of the Net Mortgage Rates on the Group II Loans), weighted on
the basis of the Uncertificated Principal Balance of each such REMIC I Regular
Interest.

                  UNDERWRITER: Deutsche Bank Securities Inc.

                  UNINSURED CAUSE: Any cause of damage to a Mortgaged Property
such that the complete restoration of such property is not fully reimbursable by
the hazard insurance policies required to be maintained pursuant to Section 3.9.

                  U.S. PERSON: A citizen or resident of the United States, a
corporation or partnership (including an entity treated as a corporation or
partnership for United States federal income tax purposes) created or organized
in, or under the laws of, the United States or any state thereof or the District
of Columbia (except, in the case of a partnership, to the extent provided in
regulations) or an estate whose income is subject to United States federal
income tax regardless of its source, or a trust if a court within the United
States is able to exercise primary supervision over the administration of the
trust and one or more such U.S. Persons have the authority to control all
substantial decisions of the trust. To the extent prescribed in regulations by
the Secretary of the Treasury, which have not yet been issued, a trust which was
in existence on August 20, 1996 (other than a trust treated as owned by the
grantor under subpart E of part 1 of subchapter J of chapter 1 of the Code), and
which was treated as a U.S. Person on August 20, 1996 may elect to continue to
be treated as a U.S. Person notwithstanding the previous sentence.

                  WELLS FARGO: Wells Fargo Bank, National Association, or any
successor thereto.

      Section 1.2 ALLOCATION OF CERTAIN INTEREST SHORTFALL.

                  For purposes of calculating the amount of Uncertificated
Accrued Interest for the REMIC I Regular Interests for any Distribution Date,
the aggregate amount of any Unpaid Interest Shortfalls incurred in respect of
the Loans for any Distribution Date shall be allocated to the REMIC I Regular
Interests, pro rata, to the extent of one month's interest at the then
applicable respective Uncertificated REMIC I Pass-Through Rate on the
Uncertificated Principal Balance of each such REMIC I Regular Interest.

                  For purposes of calculating the amount of Uncertificated
Accrued Interest for the REMIC II Regular Interests for any Distribution Date,
the aggregate amount of any Unpaid Interest Shortfalls incurred in respect of
the Loans for any Distribution Date shall be allocated to the REMIC II Regular
Interests, pro rata, to the extent of one month's interest at the then
applicable respective Uncertificated REMIC II Pass-Through Rate on the
Uncertificated Principal Balance of each such REMIC II Regular Interest.

<PAGE>

                                   ARTICLE II
                            CONVEYANCE OF TRUST FUND;
                        ORIGINAL ISSUANCE OF CERTIFICATES

                  Section 2.1 CONVEYANCE OF TRUST FUND. The Depositor,
concurrently with the execution and delivery hereof, does hereby transfer,
assign, set over and otherwise convey to the Trustee, on behalf of the Trust,
without recourse, for the benefit of the Certificateholders, all the right,
title and interest of the Depositor, including any security interest therein for
the benefit of the Depositor, in and to the Loans identified on the Loan
Schedule, the rights of the Depositor under the Mortgage Loan Purchase Agreement
and the Assignment Agreements (including, without limitation the right to
enforce the obligations of the other parties thereto thereunder), and all other
assets included or to be included in REMIC I. Such assignment includes all
interest and principal received by the Depositor or the applicable Servicer on
or with respect to the Loans (other than payments of principal and interest due
on such Loans on or before the Cut-Off Date). The Depositor herewith delivers to
the Trustee executed copies of the Mortgage Loan Purchase Agreement, the
Servicing Agreements and the Assignment Agreements.

                  In connection with such transfer and assignment, the Depositor
does hereby deliver to, and deposit with the Custodian pursuant to the Custodial
Agreement the documents with respect to each Loan as described under Section 2
of the Custodial Agreement (the "Loan Documents"). In connection with such
delivery and as further described in the Custodial Agreement, the Custodian will
be required to review such Loan Documents and deliver to the Trustee, the
Depositor, the Master Servicer and the Seller certifications (in the forms
attached to the Custodial Agreement) with respect to such review with exceptions
noted thereon. In addition, the Depositor under the Custodial Agreement will
have to cure certain defects with respect to the Loan Documents for the related
Loans after the delivery thereof by the Depositor to the Custodian as more
particularly set forth therein.

                  Notwithstanding anything to the contrary contained herein, the
parties hereto acknowledge that the functions of the Trustee with respect to the
custody, acceptance, inspection and release of the Mortgage Files, including,
but not limited to certain insurance policies and documents contemplated by
Section 3.12, and preparation and delivery of the certifications shall be
performed by the Custodian pursuant to the terms and conditions of the Custodial
Agreement.

                  The Depositor shall deliver or cause the related originator to
deliver to the related Servicer copies of all trailing documents required to be
included in the related Mortgage File at the same time the originals or
certified copies thereof are delivered to the Trustee or Custodian, such
documents including the mortgagee policy of title insurance and any Mortgage
Loan Documents upon return from the recording office. The Servicers shall not be
responsible for any custodian fees or other costs incurred in obtaining such
documents and the Depositor shall cause the Servicers to be reimbursed for any
such costs the Servicers may incur in connection with performing its obligations
under this Agreement.

                  The Mortgage Loans permitted by the terms of this Agreement to
be included in the Trust are limited to (i) Mortgage Loans (which the Depositor
acquired pursuant to the Mortgage Loan Purchase Agreement, which contains, among
other representations and warranties, a representation and warranty of the
Seller that no Mortgage Loan is a "High-Cost Home Loan" as defined in the New
Jersey Home Ownership Act effective November 27, 2003, as defined in the New
Mexico Home Loan Protection Act effective January 1, 2004, as defined in the
Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
(Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices Act,
effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9)) and
(ii) Substitute Loans (which, by definition as set forth herein and referred to
in the Mortgage Loan Purchase Agreement, are required to conform to, among other
representations and warranties, the representation and warranty of the Seller
that no Substitute Loan is a "High-Cost Home Loan" as defined in the New Jersey
Home Ownership Act effective November 27, 2003, as defined in the New Mexico
Home Loan Protection Act effective January 1, 2004, as defined in the
Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
(Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices Act,
effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9). The
Depositor and the Trustee on behalf of the Trust understand and agree that it is
not intended that any mortgage loan be included in the Trust that is a
"High-Cost Home Loan" as defined in the New Jersey Home Ownership Act effective
November 27, 2003, as defined in the New Mexico Home Loan Protection Act
effective January 1, 2004, as defined in the Massachusetts Predatory Home Loan
Practices Act, effective November 7, 2004 (Mass. Ann. Laws Ch. 183C) or as
defined in the Indiana Home Loan Practices Act, effective January 1, 2005 (Ind.
Code Ann. Sections 24-9-1 through 24-9-9).

                  Section 2.2 ACCEPTANCE BY TRUSTEE. The Trustee acknowledges
receipt, subject to the provisions of Section 2.1 hereof and Section 2 of the
Custodial Agreement, of the Loan Documents and all other assets included in the
definition of "REMIC I" under clauses (i), (iii), (iv) and (v) (to the extent of
amounts deposited into the Distribution Account) and declares that it holds (or
the Custodian on its behalf holds) and will hold such documents and the other
documents delivered to it constituting a Loan Document, and that it holds (or
the Custodian on its behalf holds) or will hold all such assets and such other
assets included in the definition of "REMIC I" in trust for the exclusive use
and benefit of all present and future Certificateholders.

                  Section 2.3 REPURCHASE OR SUBSTITUTION OF LOANS.

                           (a) Upon discovery or receipt of notice of any
materially defective document in, or that a document is missing from, a Mortgage
File or of a breach by the Seller of any representation, warranty or covenant
under the Mortgage Loan Purchase Agreement in respect of any Loan that
materially and adversely affects the value of such Loan or the interest therein
of the Certificateholders, the Trustee shall promptly notify the Seller of such
defect, missing document or breach and request that the Seller deliver such
missing document, cure such defect or breach within 60 days from the date the
Seller was notified of such missing document, defect or breach, and if the
Seller does not deliver such missing document or cure such defect or breach in
all material respects during such period, the Trustee shall enforce the
obligations of the Seller under the Mortgage Loan Purchase Agreement to
repurchase such Loan from REMIC I at the Purchase Price within 90 days after the
date on which the Seller was notified of such missing document, defect or
breach, if and to the extent that the Seller is obligated to do so under the
Mortgage Loan Purchase Agreement. The Purchase Price for the repurchased Loan
shall be deposited in the Distribution Account and the Trustee, upon receipt of
written certification from the Securities Administrator of such deposit and
receipt by the Custodian of a properly completed request for release for such
Loan in the form of EXHIBIT 3 to the Custodial Agreement, shall release or cause
the Custodian to release to the Seller the related Mortgage File and the Trustee
shall execute and deliver such instruments of transfer or assignment, in each
case without recourse, representation or warranty, as the Seller shall furnish
to it and as shall be necessary to vest in the Seller any Loan released pursuant
hereto, and the Trustee shall not have any further responsibility with regard to
such Mortgage File. In lieu of repurchasing any such Loan as provided above, if
so provided in the Mortgage Loan Purchase Agreement, the Seller may cause such
Loan to be removed from REMIC I (in which case it shall become a Deleted Loan)
and substitute one or more Substitute Loans in the manner and subject to the
limitations set forth in Section 2.3(b). It is understood and agreed that the
obligation of the Seller to cure or to repurchase (or to substitute for) any
Loan as to which a document is missing, a material defect in a constituent
document exists or as to which such a breach has occurred and is continuing
shall constitute the sole remedy respecting such omission, defect or breach
available to the Trustee and the Certificateholders. Notwithstanding the
foregoing, if the representation made by the Seller in Section 6(xxiv) of the
Mortgage Loan Purchase Agreement is breached, the Trustee shall enforce the
obligation of the Seller to repurchase such Loan at the Purchase Price, or to
provide a Substitute Loan (plus any costs and damages incurred by the Trust Fund
in connection with any violation by any such Loan of any predatory or abusive
lending law) within 90 days after the date on which the Seller was notified of
such breach.

                  In addition, promptly upon the earlier of discovery by the
Master Servicer or receipt of notice from the Servicer or the Seller to a
Responsible Officer of the Master Servicer of the breach of the representation
of the Seller set forth in Section 5(x) of the Mortgage Loan Purchase Agreement
which materially and adversely affects the interests of the Holders of the
Certificates in any Prepayment Charge, the Master Servicer shall promptly notify
the Seller and the Trustee of such breach. The Trustee shall enforce the
obligations of the Seller under the Mortgage Loan Purchase Agreement to remedy
such breach to the extent and in the manner set forth in the Mortgage Loan
Purchase Agreement.

                           (b) Any substitution of Substitute Loans for Deleted
Loans made pursuant to Section 2.3(a) must be effected prior to the date which
is two years after the Startup Day for REMIC I.

                  As to any Deleted Loan for which the Seller, substitutes a
Substitute Loan or Loans, such substitution shall be effected by the Seller
delivering to the Trustee or the Custodian on behalf of the Trustee, for such
Substitute Loan or Loans, the Mortgage Note, the Mortgage, the Assignment to the
Trustee, and such other documents and agreements, with all necessary
endorsements thereon, as are required by Section 2 of the Custodial Agreement,
as applicable, together with an Officers' Certificate providing that each such
Substitute Loan satisfies the definition thereof and specifying the Substitution
Shortfall Amount (as described below), if any, in connection with such
substitution. The Custodian on behalf of the Trustee shall acknowledge receipt
of such Substitute Loan or Loans and, within ten Business Days thereafter,
review such documents and deliver to the Depositor, the Trustee and the Master
Servicer, with respect to such Substitute Loan or Loans, an initial
certification pursuant to the Custodial Agreement, with any applicable
exceptions noted thereon. Within one year of the date of substitution, the
Custodian on behalf of the Trustee shall deliver to the Depositor, the Trustee
and the Master Servicer a final certification pursuant to the Custodial
Agreement with respect to such Substitute Loan or Loans, with any applicable
exceptions noted thereon. Monthly Payments due with respect to Substitute Loans
in the month of substitution are not part of REMIC I and shall be retained by
the Seller. For the month of substitution, distributions to Certificateholders
shall reflect the Monthly Payment due on such Deleted Loan on or before the Due
Date in the month of substitution, and the Seller shall thereafter be entitled
to retain all amounts subsequently received in respect of such Deleted Loan. The
Depositor shall give or cause to be given written notice to the
Certificateholders that such substitution has taken place, shall amend the Loan
Schedule to reflect the removal of such Deleted Loan from the terms of this
Agreement and the substitution of the Substitute Loan or Loans and shall deliver
a copy of such amended Loan Schedule to the Trustee and the Master Servicer.
Upon such substitution, such Substitute Loan or Loans shall constitute part of
the Trust Fund and shall be subject in all respects to the terms of this
Agreement and the Mortgage Loan Purchase Agreement including all applicable
representations and warranties thereof included herein or in the Mortgage Loan
Purchase Agreement.

                  For any month in which the Seller substitutes one or more
Substitute Loans for one or more Deleted Loans, the Master Servicer shall
determine the amount (the "Substitution Shortfall Amount"), if any, by which the
aggregate Purchase Price of all such Deleted Loans exceeds the aggregate of, as
to each such Substitute Loan, the Scheduled Principal Balance thereof as of the
Due Date in the month of substitution, together with one month's interest on
such Scheduled Principal Balance at the applicable Net Mortgage Rate, plus all
outstanding Advances and Servicing Advances (including Nonrecoverable Advances)
related thereto. On the date of such substitution, the Seller shall deliver or
cause to be delivered to the Securities Administrator for deposit in the
Distribution Account an amount equal to the Substitution Shortfall Amount, if
any, and the Trustee or the Custodian on behalf of the Trustee, upon receipt of
the related Substitute Loan or Loans and certification by the Securities
Administrator of such deposit and receipt by the Custodian of a properly
completed request for release for such Loan in the form of EXHIBIT 3 to the
Custodial Agreement, shall release to the Seller the related Mortgage File or
Files and the Trustee shall execute and deliver such instruments of transfer or
assignment, in each case without recourse, representation or warranty, as the
Seller shall deliver to it and as shall be necessary to vest therein any Deleted
Loan released pursuant hereto.

                  In addition, the Seller shall obtain at its own expense and
deliver to the Trustee an Opinion of Counsel to the effect that such
substitution will not cause (a) any federal tax to be imposed on any REMIC,
including without limitation, any federal tax imposed on "prohibited
transactions" under Section 860F(a)(1) of the Code or on "contributions after
the startup date" under Section 860G(d)(1) of the Code, or (b) any REMIC to fail
to qualify as a REMIC at any time that any Certificate is outstanding.

                           (c) Upon discovery by the Depositor, the Seller, the
Master Servicer or the Trustee that any Loan does not constitute a "qualified
mortgage" within the meaning of Section 860G(a)(3) of the Code, the party
discovering such fact shall within two Business Days give written notice thereof
to the other parties. In connection therewith, the Seller shall repurchase or
substitute one or more Substitute Loans for the affected Loan within 90 days of
the earlier of discovery or receipt of such notice with respect to such affected
Loan. Such repurchase or substitution shall be made by (i) the Seller, if the
affected Loan's status as a non-qualified mortgage is or results from a breach
of any representation, warranty or covenant made by the Seller under the
Mortgage Loan Purchase Agreement or (ii) the Depositor, if the affected Loan's
status as a non-qualified mortgage does not result from a breach of
representation or warranty. Any such repurchase or substitution shall be made in
the same manner as set forth in Section 2.3(a). The Trustee shall reconvey to
the Seller or the Depositor the Loan to be released pursuant hereto in the same
manner, and on the same terms and conditions, as it would a Loan repurchased for
breach of a representation or warranty.

                           (d) Within 90 days of the earlier of discovery by the
Master Servicer or receipt of notice by the Master Servicer of the breach of any
representation, warranty or covenant of the Master Servicer set forth in Section
2.5 which materially and adversely affects the interests of the related
Certificateholders in any Loan or Prepayment Charge, the Master Servicer shall
cure such breach in all material respects.

                  Section 2.4 AUTHENTICATION AND DELIVERY OF CERTIFICATES;
DESIGNATION OF CERTIFICATES AS REMIC REGULAR AND RESIDUAL INTERESTS.

                           (a) The Trustee acknowledges the transfer to the
extent provided herein and assignment to it of the Trust Fund and, concurrently
with such transfer and assignment, has caused the Securities Administrator to
execute and authenticate and has delivered to or upon the order of the
Depositor, in exchange for the Trust Fund, Certificates evidencing the entire
ownership of the Trust Fund.

                           (b) This Agreement shall be construed so as to carry
out the intention of the parties that each of REMIC I, REMIC II and REMIC III be
treated as a REMIC at all times prior to the date on which the Trust Fund is
terminated. The "regular interests" (within the meaning of Section 860G(a)(1) of
the Code) in REMIC III shall consist of the Class I-A-1, Class I-A-2, Class
I-A-3, Class I-A-4, Class I-A-5, Class I-A-6, Class I-A-7, Class II-A-1, Class
II-A-2, Class II-A-3, Class M, Class B-1, Class B-2, Class B-3, Class B-4 and
Class B-5 Certificates. The "residual interest" (within the meaning of Section
860G(a)(2) of the Code) in REMIC III shall consist of Component R-3. The
"regular interests" (within the meaning of Section 860G(a)(1) of the Code) of
REMIC II shall consist of the REMIC II Regular Interests. The "residual
interest" (within the meaning of Section 860(G)(a)(2) of the Code) of REMIC II
shall consist of Component R-2. The "regular interests" (within the meaning of
Section 860G(a)(1) of the Code) of REMIC I shall consist of the REMIC I Regular
Interests. The "residual interest" (within the meaning of Section 860(G)(a)(2)
of the Code) of REMIC I shall consist of Component R-1.

                  Section 2.5 REPRESENTATIONS AND WARRANTIES OF THE MASTER
SERVICER. The Master Servicer hereby represents, warrants and covenants to the
Trustee, for the benefit of each of the Trustee, the Certificateholders and the
Depositor that as of the Closing Date or as of such date specifically provided
herein:

                                      (i) The Master Servicer is a national
                  banking association duly formed, validly existing and in good
                  standing under the laws of the United States of America and is
                  duly authorized and qualified to transact any and all business
                  contemplated by this Agreement to be conducted by the Master
                  Servicer;

                                      (ii) The Master Servicer has the full
                  power and authority to conduct its business as presently
                  conducted by it and to execute, deliver and perform, and to
                  enter into and consummate, all transactions contemplated by
                  this Agreement. The Master Servicer has duly authorized the
                  execution, delivery and performance of this Agreement, has
                  duly executed and delivered this Agreement, and this
                  Agreement, assuming due authorization, execution and delivery
                  by the Depositor and the Trustee, constitutes a legal, valid
                  and binding obligation of the Master Servicer, enforceable
                  against it in accordance with its terms except as the
                  enforceability thereof may be limited by bankruptcy,
                  insolvency, reorganization or similar laws affecting the
                  enforcement of creditors' rights generally and by general
                  principles of equity;

                                      (iii) The execution and delivery of this
                  Agreement by the Master Servicer, the consummation by the
                  Master Servicer of any other of the transactions herein
                  contemplated, and the fulfillment of or compliance with the
                  terms hereof are in the ordinary course of business of the
                  Master Servicer and will not (A) result in a breach of any
                  term or provision of charter and by-laws of the Master
                  Servicer or (B) conflict with, result in a breach, violation
                  or acceleration of, or result in a default under, the terms of
                  any other material agreement or instrument to which the Master
                  Servicer is a party or by which it may be bound, or any
                  statute, order or regulation applicable to the Master Servicer
                  of any court, regulatory body, administrative agency or
                  governmental body having jurisdiction over the Master
                  Servicer; and the Master Servicer is not a party to, bound by,
                  or in breach or violation of any indenture or other agreement
                  or instrument, or subject to or in violation of any statute,
                  order or regulation of any court, regulatory body,
                  administrative agency or governmental body having jurisdiction
                  over it, which materially and adversely affects or, to the
                  Master Servicer's knowledge, would in the future materially
                  and adversely affect, (x) the ability of the Master Servicer
                  to perform its obligations under this Agreement or (y) the
                  business, operations, financial condition, properties or
                  assets of the Master Servicer taken as a whole;

                                      (iv) The Master Servicer does not believe,
                  nor does it have any reason or cause to believe, that it
                  cannot perform each and every covenant made by it and
                  contained in this Agreement;

                                      (v) No litigation is pending against the
                  Master Servicer that would materially and adversely affect the
                  execution, delivery or enforceability of this Agreement or the
                  ability of the Master Servicer to perform any of its other
                  obligations hereunder in accordance with the terms hereof;

                                      (vi) There are no actions or proceedings
                  against, or investigations known to it of, the Master Servicer
                  before any court, administrative or other tribunal (A) that
                  might prohibit its entering into this Agreement, (B) seeking
                  to prevent the consummation of the transactions contemplated
                  by this Agreement or (C) that might prohibit or materially and
                  adversely affect the performance by the Master Servicer of its
                  obligations under, or validity or enforceability of, this
                  Agreement; and

                                      (vii) 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 by it of the transactions
                  contemplated by this Agreement, except for such consents,
                  approvals, authorizations or orders, if any, that have been
                  obtained prior to the Closing Date.

                  It is understood and agreed that the representations,
warranties and covenants set forth in this Section 2.5 shall inure to the
benefit of the Trustee, the Depositor and the Certificateholders.

                  Section 2.6 ESTABLISHMENT OF THE TRUST.

                  The Depositor does hereby establish, pursuant to the further
provisions of this Agreement and the laws of the State of New York, an express
trust to be known, for convenience, as "Deutsche Alt-A Securities, Inc.,
Mortgage Loan Trust, Series 2005-2" and does hereby appoint HSBC Bank USA,
National Association, as Trustee in accordance with the provisions of this
Agreement.

<PAGE>

                                  ARTICLE III
               ADMINISTRATION AND SERVICING OF THE LOANS; ACCOUNTS

                  Section 3.1 MASTER SERVICER. The Master Servicer shall
supervise, monitor and oversee the obligation of the Servicers and the Interim
Servicers to service and administer their respective Loans in accordance with
the terms of the applicable Servicing Agreement and shall have full power and
authority to do any and all things which it may deem necessary or desirable in
connection with such master servicing and administration. In performing its
obligations hereunder, the Master Servicer shall act in a manner consistent with
Accepted Master Servicing Practices. Furthermore, the Master Servicer shall
oversee and consult with each Servicer and Interim Servicer as necessary from
time-to-time to carry out the Master Servicer's obligations hereunder, shall
receive, review and evaluate all reports, information and other data provided to
the Master Servicer by each Servicer and Interim Servicer and shall cause each
Servicer and Interim Servicer to perform and observe the covenants, obligations
and conditions to be performed or observed by such Servicer or Interim Servicer
under the applicable Servicing Agreement. The Master Servicer shall
independently and separately monitor each Servicer's and Interim Servicer's
servicing activities with respect to each related Loan, reconcile the results of
such monitoring with such information provided in the previous sentence on a
monthly basis and coordinate corrective adjustments to the Servicers', Interim
Servicers' and Master Servicer's records, and based on such reconciled and
corrected information, prepare the statements specified in Section 4.6 and any
other information and statements required to be provided by the Master Servicer
hereunder. The Master Servicer shall reconcile the results of its Loan
monitoring with the actual remittances of the Servicers and the Interim
Servicers to the Distribution Account pursuant to the applicable Servicing
Agreements.

                  Notwithstanding anything in this Agreement or any Servicing
Agreement to the contrary, the Master Servicer shall not have any duty or
obligation to enforce any Credit Risk Management Agreement that a Servicer is a
party to (a "Servicer Credit Risk Management Agreement") or to supervise,
monitor or oversee the activities of the Credit Risk Manager under any such
Servicer Credit Risk Management Agreement with respect to any action taken or
not taken by the applicable Servicer pursuant to a recommendation of the Credit
Risk Manager.

                  The Trustee shall furnish the Interim Servicers, the Servicers
and the Master Servicer with any limited powers of attorney and other documents
in form as provided to it necessary or appropriate to enable the Interim
Servicers, the Servicers and the Master Servicer to service or master service
and administer the related Loans and REO Property. The Trustee shall have no
responsibility for any action of the Master Servicer or any Interim Servicer or
Servicer pursuant to any such limited power of attorney and shall be indemnified
by the Master Servicer or such Interim Servicer or Servicer for any cost,
liability or expense arising from the misuse thereof by the Master Servicer or
such Servicer or Interim Servicer.

                  The Trustee, the Custodian and the Securities Administrator
shall provide access to the records and documentation in possession of the
Trustee, the Custodian or the Securities Administrator regarding the related
Loans and REO Property and the servicing thereof to the Certificateholders, the
FDIC, and the supervisory agents and examiners of the FDIC, such access being
afforded only upon reasonable prior written request and during normal business
hours at the office of the Trustee, the Custodian or the Securities
Administrator; provided, however, that, unless otherwise required by law, none
of the Trustee, the Custodian or the Securities Administrator shall be required
to provide access to such records and documentation if the provision thereof
would violate the legal right to privacy of any Mortgagor. The Trustee, the
Custodian and the Securities Administrator shall allow representatives of the
above entities to photocopy any of the records and documentation and shall
provide equipment for that purpose at a charge that covers the Trustee's, the
Custodian's or the Securities Administrator's actual costs.

                  The Trustee shall execute and deliver to the related Interim
Servicer, the related Servicer or the Master Servicer upon request any court
pleadings, requests for trustee's sale or other documents necessary or desirable
and, in each case, provided to the Trustee by such Interim Servicer, such
Servicer or Master Servicer to (i) the foreclosure or trustee's sale with
respect to a Mortgaged Property; (ii) any legal action brought to obtain
judgment against any Mortgagor on the Mortgage Note or any other Loan Document;
(iii) obtain a deficiency judgment against the Mortgagor; or (iv) enforce any
other rights or remedies provided by the Mortgage Note or any other Loan
Document or otherwise available at law or equity.

                  Section 3.2 REMIC-RELATED COVENANTS. For as long as each REMIC
shall exist, the Trustee and the Securities Administrator shall treat each REMIC
as a REMIC, and the Trustee and the Securities Administrator shall comply with
any directions of the Seller, the related Interim Servicer, the related Servicer
or the Master Servicer to assure such continuing treatment. In particular, the
Trustee shall not (a) sell or permit the sale of all or any portion of the Loans
or of any investment of deposits in an Account unless such sale is as a result
of a repurchase of the Loans pursuant to this Agreement or the Trustee has
received an Opinion of Counsel stating that such sale will not result in an
Adverse REMIC Event as defined in Section 10.1(f) hereof prepared at the expense
of the Trust Fund; and (b) other than with respect to a substitution pursuant to
the Mortgage Loan Purchase Agreement, the Assignment Agreements or Section 2.3
of this Agreement, as applicable, accept any contribution to any REMIC after the
Startup Day without receipt of an Opinion of Counsel stating that such
contribution will not result in an Adverse REMIC Event as defined in Section
10.1(f) hereof.

                  Section 3.3 MONITORING OF SERVICERS AND INTERIM SERVICERS. (a)
The Master Servicer shall be responsible for monitoring the compliance by each
Servicer and each Interim Servicer with its duties under the related Servicing
Agreement. In the review of each Servicer's and Interim Servicer's activities,
the Master Servicer may rely upon an officer's certificate of any Interim
Servicer or Servicer with regard to such Interim Servicer's or such Servicer's
compliance with the terms of its Servicing Agreement. In the event that the
Master Servicer, in its judgment, determines that an Interim Servicer or a
Servicer should be terminated in accordance with its Servicing Agreement, or
that a notice should be sent pursuant to such Servicing Agreement with respect
to the occurrence of an event that, unless cured, would constitute grounds for
such termination, the Master Servicer shall notify the Seller and the Trustee
thereof and the Master Servicer shall issue such notice or take such other
action as it deems appropriate.

                           (a) The Master Servicer, for the benefit of the
Trustee and the Certificateholders, shall enforce the obligations of each
Servicer and each Interim Servicer under the related Servicing Agreement, and
shall, in the event that a Servicer or an Interim Servicer fails to perform its
obligations in accordance with the related Servicing Agreement, subject to the
preceding paragraph, terminate the rights and obligations of such Servicer or
such Interim Servicer thereunder and act as servicer of the related Loans or to
cause the Trustee to enter in to a new Servicing Agreement with a successor
servicer selected by the Master Servicer; provided, however, it is understood
and acknowledged by the parties hereto that there will be a period of transition
(not to exceed 90 days) before the actual servicing functions can be fully
transferred to such 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 Loans. The
Master Servicer shall pay the costs of such enforcement at its own expense,
provided that the Master Servicer shall not be required to prosecute or defend
any legal action except to the extent that the Master Servicer shall have
received indemnity reasonably acceptable to it for its costs and expenses in
pursuing such action.

                           (b) To the extent that the costs and expenses of the
Master Servicer related to any termination of an Interim Servicer or a Servicer,
appointment of a successor servicer or the transfer and assumption of servicing
by the Master Servicer with respect to any Servicing Agreement (including,
without limitation, (i) all legal costs and expenses and all due diligence costs
and expenses associated with an evaluation of the potential termination of the
related Interim Servicer or the related Servicer as a result of an event of
default by such Interim Servicer or such Servicer and (ii) all costs and
expenses associated with the complete transfer of servicing, including all
servicing files and all servicing data and the completion, correction or
manipulation of such servicing data as may be required by the successor servicer
to correct any errors or insufficiencies in the servicing data or otherwise to
enable the successor servicer to service the Loans in accordance with the
related Servicing Agreement) are not fully and timely reimbursed by the
terminated Interim Servicer or terminated Servicer, the Master Servicer shall be
entitled to reimbursement of such costs and expenses from the Distribution
Account.

                           (c) The Master Servicer shall require each Interim
Servicer and each Servicer to comply with the remittance requirements and other
obligations set forth in the related Servicing Agreement.

                           (d) If the Master Servicer acts as Interim Servicer
or Servicer, it shall not assume liability for the representations and
warranties of the Interim Servicer or the Servicer, if any, that it replaces.

                  Section 3.4 FIDELITY BOND. The Master Servicer, at its
expense, shall maintain in effect a blanket fidelity bond and an errors and
omissions insurance policy that would meet the requirements of Fannie Mae or
Freddie Mac, affording coverage with respect to all directors, officers,
employees and other Persons acting on such Master Servicer's behalf, and
covering errors and omissions in the performance of the Master Servicer's
obligations hereunder. The errors and omissions insurance policy and the
fidelity bond shall be in such form and amount generally acceptable for entities
serving as master servicers or trustees. Any such errors and omissions policy
and fidelity bond may not be cancelable without thirty (30) days' prior written
notice to the Trustee.

                  Section 3.5 POWER TO ACT; PROCEDURES. The Master Servicer
shall master service the Loans and shall have full power and authority, subject
to the REMIC Provisions and the provisions of Article X hereof, to do any and
all things that it may deem necessary or desirable in connection with the master
servicing and administration of the Loans, including but not 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 Loan, in each case, in accordance with the provisions of this
Agreement and the related Servicing Agreement, as applicable; provided, however,
that the Master Servicer shall not (and, consistent with its responsibilities
under Section 3.3, shall not permit any Interim Servicer or Servicer to)
knowingly or intentionally take any action, or fail to take (or fail to cause to
be taken) any action reasonably within its control and the scope of duties more
specifically set forth herein, that, under the REMIC Provisions, if taken or not
taken, as the case may be, would cause any REMIC to fail to qualify as a REMIC
or result in the imposition of a tax upon the Trust Fund (including but not
limited to the tax on prohibited transactions as defined in Section 860F(a)(2)
of the Code and the tax on contributions to a REMIC set forth in Section 860G(d)
of the Code) unless the Master Servicer has received an Opinion of Counsel (but
not at the expense of the Master Servicer) to the effect that the contemplated
action will not cause any REMIC to fail to qualify as a REMIC or result in the
imposition of a tax upon any REMIC. The Trustee shall furnish the Master
Servicer, upon written request from a Servicing Officer, with any powers of
attorney empowering the Master Servicer, or any Interim Servicer or 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 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, applicable Interim
Servicer or Servicer may request, to enable the Master Servicer to master
service and administer the Loans and carry out its duties hereunder, in each
case in accordance with Accepted Master Servicing Practices (and the Trustee
shall have no liability for the misuse of any such powers of attorney by the
Master Servicer, any Interim Servicer or any Servicer and shall be indemnified
by the Master Servicer, such Interim Servicer or such Servicer for any costs,
liabilities or expenses incurred by the Trustee in connection with such misuse).
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 the "doing business" or tax laws of such state if such action is taken in
its name, the Master Servicer shall join with the Trustee in the appointment of
a co-trustee pursuant to Section 8.10 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 authorized pursuant to this
Agreement to be taken by it in the name of the Trustee, be deemed to be the
agent of the Trustee.

                  Section 3.6 DUE-ON-SALE CLAUSES; ASSUMPTION AGREEMENTS. To the
extent provided in the applicable Servicing Agreement and to the extent Loans
contain enforceable due-on-sale clauses, the Master Servicer shall cause the
Servicers and the Interim 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 Loan is
assumed, the original Mortgagor may be released from liability in accordance
with the applicable Servicing Agreement.

                  Section 3.7 RELEASE OF MORTGAGE FILES.

                           (a) Upon becoming aware of Payoff with respect to any
Loan, or the receipt by any Interim Servicer or any Servicer of a notification
that payment in full has been escrowed in a manner customary for such purposes
for payment to Certificateholders on the next Distribution Date, the applicable
Interim Servicer or Servicer will (or if the applicable Interim Servicer or the
applicable Servicer does not, the Master Servicer may), if required under the
applicable Servicing Agreement, promptly furnish to the Custodian, on behalf of
the Trustee, two copies of a request for release substantially in the form
attached to the Custodial Agreement, and signed by a Servicing Officer or in a
mutually agreeable electronic format which will, in lieu of a signature on its
face, originate from a Servicing Officer (which certification shall include a
statement to the effect that all amounts received in connection with such
payment that are required to be deposited in the Protected Account maintained by
the applicable Interim Servicer or Servicer pursuant to its Servicing Agreement
have been or will be so deposited) and shall request that the Custodian, on
behalf of the Trustee, deliver to the applicable Interim Servicer or Servicer
the related Mortgage File. Upon receipt of such certification and request, the
Custodian, on behalf of the Trustee, shall promptly release the related Mortgage
File to the applicable Interim Servicer or Servicer and the Trustee and
Custodian shall have no further responsibility with regard to such Mortgage
File. Upon any such Payoff, each Interim Servicer and each Servicer is
authorized to give, as agent for the Trustee, as the mortgagee under the
Mortgage that secured the 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 Distribution Account.

                           (b) From time to time and as appropriate for the
servicing or foreclosure of any Loan and in accordance with the applicable
Servicing Agreement, the Trustee shall execute such documents as shall be
prepared and furnished to the Trustee by an Interim Servicer, a Servicer or the
Master Servicer (in form reasonably acceptable to the Trustee) and as are
necessary to the prosecution of any such proceedings. The Custodian, on behalf
of the Trustee, shall, upon the request of an Interim Servicer, a Servicer or
the Master Servicer, and delivery to the Custodian, on behalf of the Trustee, of
two copies of a request for release signed by a Servicing Officer substantially
in the form attached to the Custodial Agreement (or in a mutually agreeable
electronic format which will, in lieu of a signature on its face, originate from
a Servicing Officer), release the related Mortgage File held in its possession
or control to the related Interim Servicer, the related Servicer or the Master
Servicer, as applicable. Such request for release shall obligate the Servicer,
the Interim Servicer or the Master Servicer to return the Mortgage File to the
Custodian on behalf of the Trustee, when the need therefor by the Interim
Servicer, the Servicer or the Master Servicer no longer exists unless the Loan
shall be liquidated, in which case, upon receipt of a certificate of a Servicing
Officer similar to that hereinabove specified, the Mortgage File shall be
released by the Custodian, on behalf of the Trustee, to the Interim Servicer,
the Servicer or the Master Servicer.

                  Section 3.8 DOCUMENTS, RECORDS AND FUNDS IN POSSESSION OF
MASTER SERVICER TO BE HELD FOR TRUSTEE.

                           (a) The Master Servicer shall transmit, and each
Interim Servicer and each Servicer (to the extent required by the related
Servicing Agreement) shall transmit to the Trustee or Custodian such documents
and instruments coming into the possession of the Master Servicer such Servicer
or Interim Servicer from time to time as are required by the terms hereof, or in
the case of the Interim Servicers and the Servicers, the applicable Servicing
Agreement, to be delivered to the Trustee or Custodian. Any funds received by
the Master Servicer, by an Interim Servicer or by a Servicer in respect of any
Loan or which otherwise are collected by the Master Servicer, by an Interim
Servicer or by a Servicer as Liquidation Proceeds, Insurance Proceeds or
Subsequent Recoveries in respect of any Loan shall be held for the benefit of
the Trustee and the related Certificateholders subject to the Master Servicer's
right to retain or withdraw from the Distribution Account the Master Servicing
Compensation and other amounts provided in this Agreement, and to the right of
each Interim Servicer and each Servicer to retain its Servicing Fee and other
amounts as provided in the applicable Servicing Agreement. The Master Servicer
shall, and (to the extent provided in the applicable Servicing Agreement) shall
cause each Interim Servicer and each Servicer to, provide access to information
and documentation regarding the 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 OTS, 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
OTS 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, in respect of any Loans,
whether from the collection of principal and interest payments or from
Liquidation Proceeds or Insurance Proceeds, shall be held by the Master Servicer
for and on behalf of the Trustee and the related Certificateholders and shall be
and remain the sole and exclusive property of the Trustee; provided, however,
that the Master Servicer, each Interim 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, such Interim Servicer or such
Servicer under this Agreement or the applicable Servicing Agreement.

                  Section 3.9 STANDARD HAZARD INSURANCE AND FLOOD INSURANCE
POLICIES.

                           (a) For each Loan, the Master Servicer shall enforce
any obligation of the Interim Servicers and the Servicers under the related
Servicing Agreements to maintain or cause to be maintained standard fire and
casualty insurance and, where applicable, flood insurance, all in accordance
with the provisions of the related Servicing Agreements. 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.

                           (b) Pursuant to Section 3.23, any amounts collected
by the Master Servicer, by any Interim Servicer or by any Servicer, under any
insurance policies (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 applicable Servicing Agreement) shall be
deposited into the related Distribution Account, subject to withdrawal pursuant
to Section 3.24. Any cost incurred by the Master Servicer, any Interim 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 Loan where
the terms of the 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, such Interim Servicer or such Servicer pursuant to Section
3.24.

                  Section 3.10 PRESENTMENT OF CLAIMS AND COLLECTION OF PROCEEDS.
The Master Servicer shall (to the extent provided in the applicable Servicing
Agreement) cause the related Interim Servicer or related Servicer to, prepare
and present on behalf of the Trustee and the related Certificateholders all
claims under any insurance policies 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 an Interim Servicer or to a
Servicer and remitted to the Master Servicer) in respect of such policies, bonds
or contracts shall be promptly deposited in the Distribution Account upon
receipt, except that any amounts realized that are to be applied to the repair
or restoration of the related Mortgaged Property as a condition precedent to the
presentation of claims on the related Loan to the insurer under any applicable
insurance policy need not be so deposited (or remitted).

                  Section 3.11 MAINTENANCE OF THE PRIMARY MORTGAGE INSURANCE
POLICIES.

                           (a) The Master Servicer shall not take, or permit any
Interim Servicer or any Servicer (to the extent such action is prohibited under
the applicable Servicing Agreement) to take, any action that would result in
noncoverage under any primary mortgage insurance policy or any loss which, but
for the actions of such Master Servicer, Interim Servicer or Servicer, would
have been covered thereunder. The Master Servicer shall use its best reasonable
efforts to cause each Interim Servicer and each Servicer (to the extent required
under the related Servicing Agreement) to keep in force and effect (to the
extent that the Loan requires the Mortgagor to maintain such insurance), primary
mortgage insurance applicable to each 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 any Interim Servicer or any Servicer
(to the extent required under the related Servicing Agreement) to, cancel or
refuse to renew any primary mortgage insurance policy that is in effect at the
date of the initial issuance of the Mortgage Note and is required to be kept in
force hereunder except in accordance with the provisions of this Agreement and
the related Servicing Agreement, as applicable.

                           (b) The Master Servicer agrees to cause each Interim
Servicer and each Servicer (to the extent required under the related Servicing
Agreement) to present, on behalf of the Trustee and the related
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 Loans. Pursuant to Sections 3.22 and 3.23, any amounts
collected by the Master Servicer, any Interim Servicer or any Servicer under any
primary mortgage insurance policies shall be deposited by the related Interim
Servicer or Servicer in its Protected Account or by the Master Servicer in the
Distribution Account, subject to withdrawal pursuant to Section 3.22 or 3.24, as
applicable.

                  Section 3.12 TRUSTEE TO RETAIN POSSESSION OF CERTAIN INSURANCE
POLICIES AND DOCUMENTS.

                  The Trustee or the applicable Custodian, shall retain
possession and custody of the originals (to the extent available) of any 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 the Custodian
shall also retain possession and custody of each Mortgage File in accordance
with and subject to the terms and conditions of this Agreement and the Custodial
Agreement. The Master Servicer shall promptly deliver or cause to be delivered
to the Trustee or the Custodian, upon the execution or receipt thereof the
originals of any primary mortgage insurance policies, any certificates of
renewal, and such other documents or instruments that constitute Loan Documents
that come into the possession of the Master Servicer from time to time.

                  Section 3.13 REALIZATION UPON DEFAULTED LOANS. The Master
Servicer shall cause each Interim Servicer and each Servicer (to the extent
required under the related Servicing Agreement) to foreclose upon, repossess or
otherwise comparably convert the ownership of Mortgaged Properties securing such
of the 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.

                  Section 3.14 COMPENSATION FOR THE MASTER SERVICER.

                           (a) In addition to the Master Servicer's right to
receive its Master Servicing Fee, all income and gain realized from any
investment of funds in the Distribution Account shall be for the benefit of the
Master Servicer as compensation (collectively, the "Master Servicing
Compensation"). Servicing compensation in the form of assumption fees, if any,
late payment charges, as collected, if any, or otherwise (but not including any
Prepayment Charges) shall be retained by the applicable Interim Servicer or
Servicer and shall not be deposited in the Protected Account. The Master
Servicer shall be required to pay all expenses incurred by it in connection with
its activities hereunder and shall not be entitled to reimbursement therefor
except as provided in this Agreement.

                           (b) The amount of the Master Servicing Fee payable to
the Master Servicer in respect of any Distribution Date shall be reduced in
accordance with Section 3.20.

                  Section 3.15 REO PROPERTY.

                           (a) In the event the Trust Fund acquires ownership of
any REO Property in respect of any related Loan, the deed or certificate of sale
shall be issued to the Trustee, or to its nominee, on behalf of the related
Certificateholders. The Master Servicer shall, to the extent provided in the
applicable Servicing Agreement, cause the applicable Interim Servicer or
Servicer to sell any REO Property as expeditiously as possible and in accordance
with the provisions of this Agreement and the related Servicing Agreement, as
applicable. Further, the Master Servicer shall, to the extent provided in the
related Servicing Agreement, cause the applicable Interim Servicer or Servicer
to sell any REO Property prior to three years after the end of the calendar year
of its acquisition by REMIC I, unless (i) the Trustee and the Securities
Administrator shall have been supplied with an Opinion of Counsel to the effect
that the holding by the Trust Fund of such REO Property subsequent to such
three-year period will not result in the imposition of taxes on "prohibited
transactions" of any REMIC hereunder as defined in Section 860F of the Code or
cause any REMIC hereunder to fail to qualify as a REMIC at any time that any
Certificates are outstanding, in which case the Trust Fund may continue to hold
such Mortgaged Property (subject to any conditions contained in such Opinion of
Counsel) or (ii) the applicable Interim Servicer or Servicer shall have applied
for, prior to the expiration of such three-year period, an extension of such
three-year period in the manner contemplated by Section 856(e)(3) of the Code,
in which case the three-year period shall be extended by the applicable
extension period. The Master Servicer shall cause the applicable Interim
Servicer or Servicer (to the extent provided in the related Servicing Agreement)
to protect and conserve, such REO Property in the manner and to the extent
required by the applicable Servicing Agreement, in accordance with the REMIC
Provisions and in a manner that does not result in a tax on "net income from
foreclosure property" or cause such REO Property to fail to qualify as
"foreclosure property" within the meaning of Section 860G(a)(8) of the Code.

                           (b) The Master Servicer shall, to the extent required
by the related Servicing Agreement, cause the applicable Interim Servicer or
Servicer to deposit all funds collected and received in connection with the
operation of any REO Property in the Protected Account.

                           (c) The Master Servicer, the applicable Interim
Servicer and the applicable Servicer, upon the final disposition of any REO
Property, shall be entitled to reimbursement for any related unreimbursed
Advances and other unreimbursed advances as well as any unpaid Servicing Fees or
Master Servicing Fees from Liquidation Proceeds received in connection with the
final disposition of such REO Property; provided, that any such unreimbursed
Advances as well as any unpaid Servicing Fees or Master 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) To the extent provided in the related Servicing
Agreement, the Liquidation Proceeds from the final disposition of the REO
Property, net of any payment to the Master Servicer, the applicable Interim
Servicer or the applicable Servicer as provided above shall be deposited in the
Protected Account on or prior to the Determination Date in the month following
receipt thereof and be remitted by wire transfer in immediately available funds
to the Master Servicer for deposit into the Distribution Account on the next
succeeding Remittance Date.

                  Section 3.16 ANNUAL OFFICER'S CERTIFICATE AS TO COMPLIANCE.

                           (a) The Master Servicer shall deliver to the Trustee
and the Rating Agencies on or before March 15 of each year, commencing on March
15, 2006, an Officer's Certificate signed by a Servicing Officer, certifying
that with respect to the period ending December 31 of the prior year: (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 Interim Servicer or 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.

                           (b) Copies of such statements shall be provided to
any related 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 3.17 ANNUAL INDEPENDENT ACCOUNTANT'S SERVICING REPORT.
If the Master Servicer has, during the course of any fiscal year, directly
serviced any of the 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 Seller on or
before March 15 of each year, commencing on March 15, 2006 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 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 Freddie Mac 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 Freddie Mac 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 (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). 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 shall take prompt action to do so.

                  Section 3.18 REPORTS FILED WITH SECURITIES AND EXCHANGE
COMMISSION.

                           (a) Within 15 days after each Distribution Date, the
Master Servicer shall, in accordance with industry standards, file with the
Commission via the Electronic Data Gathering and Retrieval System ("EDGAR"), a
Form 8-K with a copy of the statement to be furnished by the Securities
Administrator to the Certificateholders for such Distribution Date as an exhibit
thereto. Prior to January 30, 2006, the Master Servicer shall, in accordance
with industry standards, file a Form 15 Suspension Notice with respect to the
Trust Fund, if applicable. Prior to March 30, 2006 and annually thereafter (if
required), the Master Servicer shall file a Form 10-K, in substance conforming
to industry standards, with respect to the Trust Fund. Such Form 10-K shall
include, to the extent available, as exhibits (i) each applicable Servicer's
annual statement of compliance described under the related Servicing Agreement,
(ii) each applicable Servicer's accountant's report described under the related
Servicing Agreement, (iii) the Master Servicer's accountant's report described
in Section 3.17, if applicable, in each case to the extent timely delivered, if
applicable, to the Master Servicer, and (iv) a written certification signed by
an officer of the Master Servicer or the Depositor that complies with the
Sarbanes-Oxley Act of 2002 as in effect on the date of this Agreement and the
February 3, 2003, Statement by the Staff of the Division of Corporation Finance
of the Commission Regarding Compliance by Asset-Backed Issuers with Exchange Act
Rules 13a-14 and 15d-14 as in effect as of the date of this Agreement. The
Depositor hereby grants to the Master Servicer a limited power of attorney to
execute and file each Form 8-K and Form 10-K on behalf of the Depositor. Such
power of attorney shall continue until either the earlier of (i) receipt by the
Master Servicer from the Depositor of written termination of such power of
attorney and (ii) the termination of the Trust Fund. The Depositor and the
Trustee each agree to promptly furnish to the Master Servicer, from time to time
upon request, such further information, reports and financial statements within
its control related to this Agreement and the Loans as the Master Servicer
reasonably deems appropriate to prepare and file all necessary reports with the
Commission. The Master Servicer shall cooperate with the Depositor in connection
with any additional filings with respect to the Trust Fund as the Depositor
deems necessary under the Exchange Act. Copies of all reports filed by the
Master Servicer under the Exchange Act shall be sent to the Depositor.

                           (b) The Master Servicer shall indemnify and hold
harmless the Depositor, the Trustee and their respective officers, directors and
Affiliates from and against any losses, damages, penalties, fines, forfeitures,
reasonable and necessary legal fees and related costs, judgments and other costs
and expenses arising out of or based upon a breach of the Master Servicer's
obligations under this Section 3.18 or the Master Servicer's negligence, bad
faith or willful misconduct in connection therewith. Fees and expenses incurred
by the Master Servicer in connection with this Section 3.18 shall not be
reimbursable from the Trust Fund.

                  Section 3.19 UCC. The Depositor shall file any financing
statements or amendments thereto required by any change in the Uniform
Commercial Code. The Depositor agrees to file continuation statements for any
such Uniform Commercial Code financing statements which the Seller or the
Depositor filed in connection with the Trust Fund.

                  Section 3.20 OBLIGATION OF THE MASTER SERVICER IN RESPECT OF
COMPENSATING INTEREST. The Master Servicer shall deposit in the Distribution
Account not later than each Distribution Account Deposit Date an amount equal to
the lesser of (i) the aggregate amounts required to be paid by the Interim
Servicers and the Servicers under the Servicing Agreements with respect to
Compensating Interest on the related Loans for the related Distribution Date,
and not so paid by the related Interim Servicers or the related Servicers and
(ii) the Master Servicing Fee for such Distribution Date without reimbursement
therefor.

                  Section 3.21 RESERVED.

                  Section 3.22 PROTECTED ACCOUNTS.

                           (a) The Master Servicer shall enforce the obligation
of each Interim Servicer and each Servicer to establish and maintain a Protected
Account in accordance with the applicable Servicing Agreement, with records to
be kept with respect thereto on a Loan by Loan basis, into which accounts shall
be deposited within 48 hours (or as of such other time specified in the related
Servicing Agreement) of receipt all collections of principal and interest on any
Loan and with respect to any REO Property received by an Interim Servicer and a
Servicer, including Principal Prepayments, Insurance Proceeds, Liquidation
Proceeds, Subsequent Recoveries and advances made from the Interim Servicer's or
Servicer's own funds (less servicing compensation as permitted by the applicable
Servicing Agreement in the case of any Interim Servicer or any Servicer) and all
other amounts to be deposited in the Protected Account. Each Interim Servicer
and Servicer is hereby authorized to make withdrawals from and deposits to the
related Protected Account for purposes required or permitted by the related
Servicing Agreement. To the extent provided in the related Servicing Agreement,
the Protected Account shall be held in a depository institution and segregated
on the books of such institution in the name of the Trustee for the benefit of
the Certificateholders.

                           (b) To the extent provided in the related Servicing
Agreement, amounts on deposit in a Protected Account may be invested in Eligible
Investments in the name of the Trustee for the benefit of Certificateholders
and, except as provided in the preceding paragraph, not commingled with any
other funds, such Eligible Investments to mature, or to be subject to redemption
or withdrawal, no later than the date on which such funds are required to be
withdrawn for deposit in the Distribution Account, and shall be held until
required for such deposit. The income earned from Eligible Investments made
pursuant to this Section 3.22 shall be paid to the related Servicer or Interim
Servicer under the applicable Servicing Agreement, and amount required to be
distributed to the Certificateholders resulting from the loss of monies on such
investments shall be borne by and be the risk of the related Interim Servicer or
the related Servicer. The related Interim Servicer or the related Servicer (to
the extent provided in the Servicing Agreement) shall deposit the amount of any
such loss in the Protected Account within two Business Days of receipt of
notification of such loss but not later than the second Business Day prior to
the Distribution Date on which the moneys so invested are required to be
remitted to the Master Servicer or the Securities Administrator.

                           (c) To the extent provided in the related Servicing
Agreement and subject to this Article III, on or before each Servicer Remittance
Date, the related Interim Servicer and the related Servicer shall withdraw or
shall cause to be withdrawn from the Protected Accounts and shall immediately
deposit or cause to be deposited in the Distribution Account amounts
representing the following collections and payments (other than with respect to
principal of or interest on the Loans due on or before the Cut-Off Date):

                                    (i) Monthly Payments on the Loans received
                  or any related portion thereof advanced by the Interim
                  Servicer or the Servicers pursuant to the Servicing Agreements
                  which were due on or before the related Due Date, net of the
                  amount thereof comprising the Servicing Fees;

                                    (ii) Principal Prepayments, Liquidation
                  Proceeds, Insurance Proceeds and Subsequent Recoveries
                  received by the Interim Servicers or the Servicers with
                  respect to such Loans in the related Prepayment Period,
                  Compensating Interest and the amount of any related Prepayment
                  Charges; and

                                    (iii) Any amount to be used as an Advance.

                           (d) Withdrawals may be made from an Account only to
make remittances as provided in Section 3.22(c), 3.23 and 3.24 or as otherwise
provided in the Servicing Agreements; to reimburse the Master Servicer, an
Interim Servicer or a Servicer for Advances which have been recovered by
subsequent collection from the related Mortgagor; to remove amounts deposited in
error; to remove fees, charges or other such amounts deposited on a temporary
basis; or to clear and terminate the account at the termination of this
Agreement in accordance with Section 9.1. As provided in Sections 3.22(c) and
3.23(b) or as otherwise provided in the Servicing Agreements certain amounts
otherwise due to the Interim Servicers and the Servicers may be retained by them
and need not be deposited in the Distribution Account.

                  Section 3.23 DISTRIBUTION ACCOUNT.

                           (a) The Securities Administrator shall establish and
maintain, a Distribution Account with respect to the Loans as a segregated trust
account or accounts. The Master Servicer shall deposit in the Distribution
Account as identified by the Master Servicer and as received by the Master
Servicer, the following amounts with respect to the related Loans for the
benefit of the related Certificateholders:

                                    (i) Any amounts withdrawn from a Protected
                  Account;

                                    (ii) Any Advance and any amounts in respect
                  of Prepayment Interest Shortfalls or Curtailment Shortfalls;

                                    (iii) Any Insurance Proceeds, Liquidation
                  Proceeds or Subsequent Recoveries received by or on behalf of
                  the Master Servicer;

                                    (iv) The Purchase Price with respect to any
                  Loans purchased by the Seller pursuant to Section 2.3 and all
                  proceeds of any Loans or property acquired with respect
                  thereto purchased by the Master Servicer pursuant to Section
                  9.1;

                                    (v) Any amounts required to be deposited by
                  the Master Servicer or any Servicer with respect to losses on
                  investments of deposits in an Account; and

                                    (vi) Any other amounts received by or on
                  behalf of the Master Servicer and required to be deposited in
                  the Distribution Account pursuant to this Agreement.

                           (b) All amounts deposited to the Distribution Account
shall be held by the Securities Administrator in trust for the benefit of the
Certificateholders in accordance with the terms and provisions of this
Agreement. The requirements for crediting the Distribution Account shall be
exclusive, it being understood and agreed that, without limiting the generality
of the foregoing, payments in the nature of late payment charges or assumption,
tax service, statement account or payoff, substitution, satisfaction, release
and other like fees and charges, need not be credited by the Master Servicer,
the related Interim Servicer or the related Servicer to the Distribution
Account. In the event that the Master Servicer shall deposit or cause to be
deposited to the Distribution Account any amount not required to be credited
thereto, the Securities Administrator, upon receipt of a written request
therefor signed by a Servicing Officer of the Master Servicer, shall promptly
transfer such amount to the Master Servicer, any provision herein to the
contrary notwithstanding.

                           (c) The Distribution Account shall constitute a trust
account of the Trust Fund segregated on the books of the Securities
Administrator and held by the Securities Administrator in trust in its Corporate
Trust Office, and the Distribution Account and the funds deposited therein shall
not be subject to, and shall be protected from, all claims, liens, and
encumbrances of any creditors or depositors of the Securities Administrator
(whether made directly, or indirectly through a liquidator or receiver of the
Securities Administrator). The amount at any time credited to the Distribution
Account shall be invested in the name of the Master Servicer, in such Eligible
Investments selected by the Master Servicer or deposited in demand deposits with
such depository institutions as selected by the Master Servicer, provided that
time deposits of such depository institutions would be an Eligible Investment.
All Eligible Investments shall mature or be subject to redemption or withdrawal
on or before, and shall be held until, the Distribution Date following the date
of the investment of such funds (the "Investment Withdrawal Distribution Date")
if the obligor for such Eligible Investment is the Securities Administrator or,
if such obligor is any other Person, the Business Day preceding such Investment
Withdrawal Distribution Date. All investment earnings on amounts on deposit in
the Distribution Account from time to time shall be for the account of the
Master Servicer. The Master Servicer shall be permitted to receive distribution
of any and all investment earnings from the Distribution Account on each
Distribution Date. If there is any loss on an Eligible Investment or demand
deposit, the Master Servicer shall deposit such amount in the Distribution
Account. With respect to the Distribution Account and the funds deposited
therein, the Securities Administrator shall take such action as may be necessary
to ensure that the related Certificateholders shall be entitled to the
priorities afforded to such a trust account (in addition to a claim against the
estate of the Securities Administrator) as provided by 12 U.S.C. ss. 92a(e), and
applicable regulations pursuant thereto, if applicable, or any applicable
comparable state statute applicable to state chartered banking corporations.

                  Section 3.24 PERMITTED WITHDRAWALS AND TRANSFERS FROM THE
DISTRIBUTION ACCOUNT.

                           (a) The Securities Administrator shall, from time to
time on demand of the Master Servicer make or cause to be made such withdrawals
or transfers from the Distribution Account as the Master Servicer has designated
for such transfer or withdrawal pursuant to the Servicing Agreements for the
following purposes, not in any order of priority:

                                    (i) to reimburse the Master Servicer, any
                  Interim Servicer or any Servicer for any Advance of its own
                  funds, the right of the Master Servicer, an Interim Servicer
                  or a Servicer to reimbursement pursuant to this subclause (i)
                  being limited to amounts received on a particular Loan
                  (including, for this purpose, the Purchase Price therefor,
                  Insurance Proceeds and Liquidation Proceeds) which represent
                  late payments or recoveries of the principal of or interest on
                  such Loan respecting which such Advance was made;

                                    (ii) to reimburse the Master Servicer, any
                  Interim Servicer or any Servicer from Insurance Proceeds or
                  Liquidation Proceeds relating to a particular Loan for amounts
                  expended by the Master Servicer, such Interim Servicer or such
                  Servicer in good faith in connection with the restoration of
                  the related Mortgaged Property which was damaged by an
                  Uninsured Cause or in connection with the liquidation of such
                  Loan;

                                    (iii) to reimburse the Master Servicer, any
                  Interim Servicer or any Servicer from Insurance Proceeds
                  relating to a particular Loan for insured expenses incurred
                  with respect to such Loan and to reimburse the Master
                  Servicer, such Interim Servicer or such Servicer from
                  Liquidation Proceeds from a particular Loan for Liquidation
                  Expenses incurred with respect to such Loan;

                                    (iv) to pay the Master Servicer, any Interim
                  Servicer or any Servicer, as appropriate, from Liquidation
                  Proceeds or Insurance Proceeds received in connection with the
                  liquidation of any Loan, the amount which it, such Interim
                  Servicer or such Servicer would have been entitled to receive
                  under subclause (vii) of this Subsection (a) as servicing
                  compensation on account of each defaulted scheduled payment on
                  such Loan if paid in a timely manner by the related Mortgagor;

                                    (v) to pay the Master Servicer, any Interim
                  Servicer or any Servicer from the Purchase Price for any Loan,
                  the amount which it, such Interim Servicer or such Servicer
                  would have been entitled to receive under subclause (vii) of
                  this Subsection (a) as servicing compensation;

                                    (vi) to reimburse the Master Servicer, any
                  Interim Servicer or any Servicer for any Nonrecoverable
                  Advance, after a Realized Loss has been allocated with respect
                  to the related Loan if the Advance or Servicing Advance has
                  not been reimbursed pursuant to clause (i);

                                    (vii) to pay the Master Servicing Fee and
                  any and all other Master Servicing Compensation to the Master
                  Servicer, the Servicing Fee to the Interim Servicers and the
                  Servicers (to the extent such Servicing Fee was not retained
                  by the Interim Servicer or the Servicer pursuant to the
                  related Servicing Agreement), the Credit Risk Management Fee
                  to the Credit Risk Manager for such Distribution Date and to
                  reimburse the Master Servicer for expenses, costs and
                  liabilities incurred by and reimbursable to it pursuant to
                  Sections 3.3, 6.3; 8.5 and 10.1.

                                    (viii) to reimburse or pay any Interim
                  Servicer or any Servicer any such amounts as are due thereto
                  under the applicable Servicing Agreement and have not been
                  retained by or paid to the Interim Servicer or the Servicer,
                  to the extent provided in the related Servicing Agreement;

                                    (ix) to reimburse the Trustee, the Custodian
                  and the Securities Administrator for expenses, costs and
                  liabilities, if any, incurred by or reimbursable to such
                  parties pursuant to this Agreement;

                                    (x) to remove amounts deposited in error;
                  and

                                    (xi) to clear and terminate the Distribution
                  Account pursuant to Section 9.1.

                           (b) The Master Servicer shall keep and maintain
separate accounting, on a Loan by Loan basis, for the purpose of accounting for
any reimbursement from the Distribution Account pursuant to subclauses (i)
through (vi), inclusive, or with respect to any such amounts which would have
been covered by such subclauses had the amounts not been retained by the Master
Servicer without being deposited in the Distribution Account under Section
3.23(b).

                           (c) On each Distribution Date, the Securities
Administrator shall distribute the Group I Available Distribution Amount and
Group II Available Distribution Amount to the Holders of the Group I Senior,
Group II Senior and Subordinate Certificates in accordance with Section 4.1.

                  Section 3.25 RESERVE FUNDS.

                           (a) No later than the Closing Date, the Securities
Administrator shall establish and maintain four separate segregated trust
accounts titled, "Class I-A-1 Reserve Fund, Wells Fargo Bank, National
Association, in trust for the registered holders of Deutsche Alt-A Securities,
Inc. Mortgage Loan Trust, Series 2005-2, Class I-A-1 Mortgage Pass-Through
Certificates," "Class I-A-3 Reserve Fund, Wells Fargo Bank, National
Association, in trust for the registered holders of Deutsche Alt-A Securities,
Inc. Mortgage Loan Trust, Series 2005-2, Class I-A-3 Mortgage Pass-Through
Certificates", "Class I-A-5 Reserve Fund, Wells Fargo Bank, National
Association, in trust for the registered holders of Deutsche Alt-A Securities,
Inc. Mortgage Loan Trust, Series 2005-2, Class I-A-5 Mortgage Pass-Through
Certificates", and "Class II-A-1 Reserve Fund, Wells Fargo Bank, National
Association, in trust for the registered holders of Deutsche Alt-A Securities,
Inc. Mortgage Loan Trust, Series 2005-2, Class II-A-1 Mortgage Pass-Through
Certificates."

                           (b) On each Distribution Date, the Securities
Administrator will deposit (from amounts otherwise payable to the Class B-3,
Class B-4 and Class B-5 Certificates, pursuant to Section 4.1(a)(v)) into the
Class I-A-1 Reserve Fund an amount equal to the amount by which the sum of the
Net WAC Rate Carryover Amounts with respect to the Class I-A-1 Certificates
exceeds the sum of any amounts received by the Securities Administrator with
respect to the related Cap Agreement since the prior Distribution Date. On each
Distribution Date, after making the distributions required under Section
4.1(a)(i) through (iv), the Securities Administrator will withdraw from the
Class I-A-1 Reserve Fund the amounts on deposit therein (which shall include any
payments received under the related Cap Contract) and distribute such amounts to
the Class I-A-1 Certificates in respect of any Net WAC Rate Carryover Amounts
due to the Class I-A-1 Certificates as set forth in Section 4.1(a)(v) and
(b)(iv).

                           (c) On each Distribution Date, the Securities
Administrator will deposit (from amounts otherwise payable to the Class B-3,
Class B-4 and Class B-5 Certificates, pursuant to Section 4.1(a)(v)) into the
Class I-A-3 Reserve Fund an amount equal to the amount by which the sum of the
Net WAC Rate Carryover Amounts with respect to the Class I-A-3 Certificates
exceeds the sum of any amounts received by the Securities Administrator with
respect to the related Cap Contract since the prior Distribution Date. On each
Distribution Date, after making the distributions required under Section
4.1(a)(i) through (iv), the Securities Administrator will withdraw from the
Class I-A-3 Reserve Fund the amounts on deposit therein (which shall include any
payments received under the related Cap Contract) and distribute such amounts to
the Class I-A-3 Certificates in respect of any Net WAC Rate Carryover Amounts
due to the Class I-A-3 Certificates as set forth in Section 4.1(a)(v) and
(b)(iv).

                           (d) On each Distribution Date, the Securities
Administrator will deposit (from amounts otherwise payable to the Class B-3,
Class B-4 and Class B-5 Certificates, pursuant to Section 4.1(a)(v)) into the
Class I-A-5 Reserve Fund, an amount equal to the amount by which the sum of the
Net WAC Rate Carryover Amounts with respect to the Class I-A-5 Certificates
exceeds the sum of any amounts received by the Securities Administrator with
respect to the related Cap Contract since the prior Distribution Date. On each
Distribution Date, after making the distributions required under Section
4.1(a)(i) through (iv), the Securities Administrator will withdraw from the
Class I-A-5 Reserve Fund the amounts on deposit therein (which shall include any
payments received under the related Cap Contract) and distribute such amounts to
the Class I-A-5 Certificates in respect of any Net WAC Rate Carryover Amounts
due to the Class I-A-5 Certificates as set forth in Section 4.1(a)(v) and
(b)(iv).

                           (e) On each Distribution Date, the Securities
Administrator will deposit (from amounts otherwise payable to the Class B-3,
Class B-4 and Class B-5 Certificates, pursuant to Section 4.1(a)(v)) into the
Class II-A-1 Reserve Fund, an amount equal to the amount by which the sum of the
Net WAC Rate Carryover Amounts with respect to the Class II-A-1 Certificates
exceeds the sum of any amounts received by the Securities Administrator with
respect to the related Cap Contract since the prior Distribution Date. On each
Distribution Date, after making the distributions required under Section
4.1(a)(i) through (iv), the Securities Administrator will withdraw from the
Class II-A-1 Reserve Fund the amounts on deposit therein (which shall include
any payments received under the related Cap Contract) and distribute such
amounts to the Class II-A-1 Certificates in respect of any Net WAC Rate
Carryover Amounts due to the Class II-A-1 Certificates as set forth in Section
4.1(a)(v) and (b)(iv).

                           (f) For federal and state income tax purposes, the
Seller will be deemed to be the owner of each Reserve Fund. Upon the termination
of the Trust Fund, or the payment in full of the Certificates, all amounts
remaining on deposit in the related Reserve Fund will be released by the Trust
Fund and distributed to the Seller or its designees. The Reserve Funds will be
part of the Trust Fund but not part of any REMIC and any payments to the Holders
of the Class I-A-1, Class I-A-3, Class I-A-5 and Class II-A-1 Certificates of
Net WAC Rate Carryover Amounts will not be payments with respect to a "regular
interest" in a REMIC within the meaning of Code Section 860(G)(a)(1).

                           (g) The Seller hereby agrees that the Securities
Administrator will deposit into the related Reserve Fund the amounts described
above on each Distribution Date. The Seller further agrees that its agreement to
such action by the Securities Administrator is given for good and valuable
consideration, the receipt and sufficiency of which is acknowledged by such
acceptance.

                           (h) The Securities Administrator shall direct any
depository institution maintaining the Reserve Fund to invest the funds in such
account in one or more Eligible Investments bearing interest or sold at a
discount, and maturing, unless payable on demand, (i) no later than the Business
Day immediately preceding the date on which such funds are required to be
withdrawn from such account pursuant to this Agreement, if a Person other than
the Securities Administrator or an Affiliate manages or advises such investment,
and (ii) no later than the date on which such funds are required to be withdrawn
from such account pursuant to this Agreement, if the Securities Administrator or
an Affiliate manages or advises such investment. All income and gain earned upon
such investment shall be deposited into the related Reserve Fund. In no event
shall the Securities Administrator be liable for any investments made pursuant
to this clause (h).

                           (i) For federal tax return and information reporting,
the right of the Holders of the Class I-A-1, Class I-A-3, Class I-A-5 and Class
II-A-1 Certificates to receive payments from the related Reserve Fund in respect
of any Net WAC Rate Carryover Amount shall be assigned a value of $400,000,
$160,000, $199,000 and $95,000, respectively.

                  Section 3.26 PREPAYMENT PENALTY VERIFICATION.

                  On or prior to each Servicer Remittance Date, each Interim
Servicer and Servicer shall, to the extent provided in the respective Servicing
Agreement, provide in an electronic format acceptable to the Master Servicer the
data necessary for the Master Servicer to perform its verification duties agreed
to by the Master Servicer and the Depositor. The Master Servicer or a third
party reasonably acceptable to the Master Servicer and the Depositor (the
"Verification Agent") will perform such verification duties and will use its
best efforts to issue its findings in a report (the "Verification Report")
delivered to the Master Servicer and the Depositor within ten (10) Business Days
following the related Distribution Date; provided, however, that if the
Verification Agent is unable to issue the Verification Report within ten (10)
Business Days following the Distribution Date, the Verification Agent may issue
and deliver to the Master Servicer and the Depositor the Verification Report
upon the completion of its verification duties. The Master Servicer shall
forward the Verification Report to the respective Interim Servicer or Servicer
and shall notify such Interim Servicer or Servicer if the Master Servicer has
determined that such Interim Servicer or Servicer did not deliver the
appropriate Prepayment Charges to the Master Servicer in accordance with the
respective Servicing Agreement. Such written notification from the Master
Servicer shall include the loan number, prepayment penalty code and prepayment
penalty amount as calculated by the Master Servicer or the Verification Agent,
as applicable, of each Loan for which there is a discrepancy. If the respective
Interim Servicer or Servicer agrees with the verified amounts, such Interim
Servicer or Servicer shall adjust the immediately succeeding Remittance Report
and the amount remitted to the Master Servicer with respect to prepayments
accordingly. If the respective Interim Servicer or Servicer disagrees with the
determination of the Master Servicer, such Interim Servicer or Servicer shall,
within five (5) Business Days of its receipt of the Verification Report, notify
the Master Servicer of such disagreement and provide the Master Servicer with
detailed information to support such Interim Servicer's or Servicer's position.
The respective Interim Servicer or Servicer and the Master Servicer shall
cooperate to resolve any discrepancy on or prior to the immediately succeeding
Servicer Remittance Date, and such Interim Servicer or such Servicer will
indicate the effect of such resolution on the related Remittance Report and
shall adjust the amount remitted with respect to prepayments on such Servicer
Remittance Date accordingly.

                  During such time as the respective Interim Servicer or
Servicer and the Master Servicer are resolving discrepancies with respect to the
Prepayment Charges, no payments in respect of any disputed Prepayment Charges
will be remitted to the Distribution Account and the Master Servicer shall not
be obligated to remit such payments, unless otherwise required pursuant to
Section 7.1 hereof. In connection with such duties, the Master Servicer shall be
able to rely solely on the information provided to it by the respective Interim
Servicer or Servicer in accordance with this Section. The Master Servicer shall
not be responsible for verifying the accuracy of any of the information provided
to it by the respective Interim Servicer or Servicer.

<PAGE>

                                   ARTICLE IV
                    PAYMENTS TO CERTIFICATEHOLDERS; ADVANCES;
                             STATEMENTS AND REPORTS

                  Section 4.1 DISTRIBUTIONS TO CERTIFICATEHOLDERS.

                  On each Distribution Date, the Securities Administrator, to
the extent on deposit therein and based solely upon the Remittance Report for
such Distribution Date, shall withdraw from the Distribution Account the Group I
Available Distribution Amount and Group II Available Distribution Amount for
such Distribution Date and distribute to each related Certificateholder, by wire
transfer in immediately available funds for the account of the Certificateholder
or by any other means of payment acceptable to each Certificateholder of record
on the immediately preceding Record Date (other than as provided in Section 9.1
respecting the final distribution) as specified by each such Certificateholder
and at the address of such Holder appearing in the Certificate Register, from
the amount so withdrawn and to the extent of the Group I Available Distribution
Amount and Group II Available Distribution Amount, as applicable, such
Certificateholder's Percentage Interest of the following amounts and in
following order and priority:

                           (a) On each Distribution Date prior to the Credit
Support Depletion Date, the Securities Administrator will distribute the Group I
Available Distribution Amount and the Group II Available Distribution Amount in
the following order and priority:

                                    (i) On each Distribution Date, the Group I
                  Available Distribution Amount will be distributed as follows:

                                             (1) FIRST, concurrently to the
                  Group I Senior Certificates, the related Interest Distribution
                  Amount on a pro rata basis based on the related Interest
                  Distribution Amount with respect to each such Class;

                                             (2) SECOND, to the Class I-A-7
                  Certificates from the Group I Available Distribution Amount
                  remaining after payments pursuant to clause (i)(1) above, an
                  amount up to the Class I-A-7 Lockout Principal Amount until
                  the Certificate Principal Balance of the Class I-A-7
                  Certificates has been reduced to zero;

                                             (3) THIRD, concurrently to the
                  Class I-A-1, Class I-A-3 and Class I-A-5 Certificates on a pro
                  rata basis based on the Certificate Principal Balance of each
                  such Class, from the Group I Available Distribution Amount
                  remaining after payments pursuant to clauses (i)(1) and (i)(2)
                  above, the related Senior Principal Distribution Amount until
                  the Certificate Principal Balance of each such Class has been
                  reduced to zero; and

                                             (4) FOURTH, to the Class I-A-7
                  Certificates from the Group I Available Distribution Amount
                  remaining after payments pursuant to clauses (i)(1), (i)(2)
                  and (i)(3) above, the related Senior Principal Distribution
                  Amount until the Certificate Principal Balance of the Class
                  I-A-7 Certificates has been reduced to zero.

                                    (ii) On each Distribution Date, the Group II
                  Available Distribution Amount will be distributed as follows:

                                             (1) FIRST, concurrently to the
                  Group II Senior Certificates, the related Interest
                  Distribution Amount on a pro rata basis based on the related
                  Interest Distribution Amount with respect to each such Class;

                                             (2) SECOND, to the Class R
                  Certificates from the Group II Available Distribution Amount
                  remaining after payments pursuant to clause (ii)(1) above, the
                  related Senior Principal Distribution Amount until the
                  Certificate Principal Balance of the Class R Certificates has
                  been reduced to zero;

                                             (3) THIRD, to the Class II-A-3
                  Certificates, from the Group II Available Distribution Amount
                  remaining after payments pursuant to clauses (ii)(1) and
                  (ii)(2) above, an amount up to the Class II-A-3 Lockout
                  Principal Amount until the Certificate Principal Balance of
                  the Class II-A-3 Certificates has been reduced to zero;

                                             (4) FOURTH, to the Class II-A-1
                  Certificates from the Group II Available Distribution Amount
                  remaining after payments pursuant to clauses (ii)(1), (ii)(2)
                  and (ii)(3) above, the related Senior Principal Distribution
                  Amount until the Certificate Principal Balance of the Class
                  II-A-1 Certificates has been reduced to zero; and

                                             (5) FIFTH, to the Class II-A-3
                  Certificates from the Group II Available Distribution Amount
                  remaining after payments pursuant to clauses (ii)(1), (ii)(2),
                  (ii)(3) and (ii)(4) above, the related Senior Principal
                  Distribution Amount until the Certificate Principal Balance of
                  the Class II-A-3 Certificates has been reduced to zero.

                                    (iii) From the Group I Available
                  Distribution Amount and Group II Available Distribution Amount
                  remaining after payments pursuant to clauses (i) and (ii)
                  above, (i) first, the Senior Interest Shortfall Amount for
                  each Class of Group I Senior Certificates and Group II Senior
                  Certificates for such Distribution Date, if any, pro rata
                  according to the amount of interest to which each such Class
                  would otherwise be entitled, (ii) second, an amount equal to
                  the Collateral Deficiency Amount, if any, to the Group I
                  Senior Certificates (other than the Class I-A-2, Class I-A-4
                  and Class I-A-6 Certificates) and Group II Senior Certificates
                  (other than the Class II-A-2 Certificates), pro rata between
                  the Group I Senior Certificates (other than the Class I-A-2,
                  Class I-A-4 and Class I-A-6 Certificates) and the Group II
                  Senior Certificates (other than the Class II-A-2 Certificates)
                  based on the related Collateral Deficiency Amount and within
                  each group of Certificates, on a pro rata basis based on the
                  Certificate Principal Balance of each such Class, as a payment
                  of principal and (iii) if such Distribution Date is a Cross
                  Payment Trigger Date, the Principal Prepayment Amount
                  distributable to the Group I Senior Certificates (other than
                  the Class I-A-2, Class I-A-4 and Class I-A-6 Certificates) or
                  Group II Senior Certificates (other than the Class II-A-2
                  Certificates) that have been paid in full, will be paid as
                  principal to the Group I Senior Certificates or Group II
                  Senior Certificates that have not been paid in full in
                  accordance with the priorities set forth in clauses (a)(i) and
                  (a)(ii) above.

                                    (iv) From the sum of the remaining Group I
                  Available Distribution Amount and Group II Available
                  Distribution Amount, after payments pursuant to clauses (i)
                  through (iii) above, to the Class M, Class B-1 and Class B-2
                  Certificates, sequentially, in that order, an amount equal to
                  their respective Interest Distribution Amounts for such
                  Distribution Date and their pro rata share, based on the
                  outstanding Certificate Principal Balance of each such Class,
                  of the Subordinate Principal Amount; provided, however, that
                  on any Distribution Date on which the Subordination Level for
                  any Class of Subordinate Certificates is less than the
                  Subordination Level as of the Closing Date, the portion of the
                  Subordinate Principal Prepayment Amount otherwise payable to
                  the Class or Classes of the Subordinate Certificates junior to
                  such Class will be distributed to the most senior Class of
                  Subordinate Certificates for which the Subordination Level is
                  less than such percentage as of the Closing Date, and to the
                  Class or Classes of Subordinate Certificates senior thereto,
                  pro rata based on the Certificate Principal Balance of each
                  such Class.

                                    (v) From the remaining Group I Available
                  Distribution Amount, to the Class I-A-1 Reserve Fund, Class
                  I-A-3 Reserve Fund and Class I-A-5 Reserve Fund (from amounts
                  otherwise payable to the Class B-3, Class B-4 and Class B-5
                  Certificates) and then from the Class I-A-1 Reserve Fund,
                  Class I-A-3 Reserve Fund and Class I-A-5 Reserve Fund
                  (including any payments received under the related Cap
                  Contract), to the Class I-A-1, Class I-A-3 and Class I-A-5
                  Certificates in respect of any Net WAC Rate Carryover Amounts
                  due each such Class on a pro rata basis based on the
                  entitlement of each such Class as follows:

                                    (1) from the Class I-A-1 Reserve Fund, as
                  follows: (A) FIRST, to the holders of the Class I-A-1
                  Certificates, any amounts received by the Securities
                  Administrator on account of the related Cap Contract for such
                  Distribution Date; and (B) SECOND, to the Class I-A-1
                  Certificates, any Net WAC Rate Carryover Amounts remaining
                  unpaid after distributions pursuant to clause (1)(A).

                                    (2) from the Class I-A-3 Reserve Fund, as
                  follows: (A) FIRST, to the holders of the Class I-A-3
                  Certificates, any amounts received by the Securities
                  Administrator on account of the related Cap Contract for such
                  Distribution Date; and (B) SECOND, to the Class I-A-3
                  Certificates, any Net WAC Rate Carryover Amounts remaining
                  unpaid after distributions pursuant to clause (2)(A).

                                    (3) from the Class I-A-5 Reserve Fund, as
                  follows: (A) FIRST, to the holders of the Class I-A-5
                  Certificates, any amounts received by the Securities
                  Administrator on account of the related Cap Contract for such
                  Distribution Date; and (B) SECOND, to the Class I-A-5
                  Certificates, any Net WAC Rate Carryover Amounts remaining
                  unpaid after distributions pursuant to clause (3)(A).

         From the remaining Group II Available Distribution Amount, to the Class
II-A-1 Reserve Fund (from amounts otherwise payable to the Class B-3, Class B-4
and Class B-5 Certificates) and then from the Class II-A-1 Reserve Fund
(including any payments received under the related Cap Contract), to the Class
II-A-1 Certificates in respect of any Net WAC Rate Carryover Amounts due to the
Class II-A-1 Certificates as follows:

         (1)      FIRST, to the holders of the Class II-A-1 Certificates, any
                  amounts received by the Securities Administrator on account of
                  the related Cap Contract for such Distribution Date; and

         (2)      SECOND, to the Class II-A-1 Certificates, any Net WAC Rate
                  Carryover Amounts remaining unpaid after distributions
                  pursuant to the foregoing clause.

                                    (vi) From the sum of the remaining Group I
                  Available Distribution Amount and Group II Available
                  Distribution Amount, after payments pursuant to clauses (i)
                  through (v) above, to the Class B-3, Class B-4 and Class B-5
                  Certificates, sequentially, in that order, an amount equal to
                  (i) their respective Interest Distribution Amounts for such
                  Distribution Date, and (ii) their pro rata share, based on the
                  outstanding Certificate Principal Balance of each such Class,
                  of the Subordinate Principal Amount; provided, however, that
                  on any Distribution Date on which the Subordination Level for
                  any Class of Subordinate Certificates is less than the
                  Subordination Level as of the Closing Date, the portion of the
                  Subordinate Principal Prepayment Amount otherwise payable to
                  the Class or Classes of the Subordinate Certificates junior to
                  such Class will be distributed to the most senior Class of
                  Subordinate Certificates for which the Subordination Level is
                  less than such percentage as of the Closing Date, and to the
                  Class or Classes of Subordinate Certificates senior thereto,
                  pro rata based on the Certificate Principal Balance of each
                  such Class.

                                    (vii) To the Group I Senior Certificates
                  (other than the Class I-A-2, Class I-A-4 and Class I-A-6
                  Certificates) and Group II Senior Certificates (other than the
                  Class II-A-2 Certificates), from the Group I Available
                  Distribution Amount and Group II Available Distribution
                  Amount, respectively, remaining after distributions pursuant
                  to clauses (i) through (vi) above, by Pro Rata Allocation, the
                  amount of any unreimbursed losses previously allocated to such
                  Classes of Certificates, and then to the Subordinate
                  Certificates, in the order of their seniority, the amount of
                  any unreimbursed losses previously allocated to such Classes
                  of Certificates.

                                    (viii) To the Class R Certificates, the
                  remainder (which is expected to be zero), if any of the Group
                  I Available Distribution Amount and Group II Available
                  Distribution Amount remaining after distributions pursuant to
                  clauses (i) through (vii) above.

                  On each Distribution Date, the amount of any Prepayment
Charges received in connection with the Loans during the related Prepayment
Period will be paid to the Class II-A-2 Certificates.

                           (b) On each Distribution Date on or after the Credit
Support Depletion Date, to the extent of the Group I Available Distribution
Amount and Group II Available Distribution Amount on such Distribution Date,
distributions will be made to the Group I Senior Certificates and Group II
Senior Certificates in the following order of priority:

                                    (i) FIRST, (a) concurrently to the Group I
                  Senior Certificates from the Group I Available Distribution
                  Amount, the related Interest Distribution Amount pro rata
                  based on the amount payable to each such Class, to the extent
                  of amounts available, and (b) to the Group II Senior
                  Certificates from the Group II Available Distribution Amount,
                  the related Interest Distribution Amount pro rata based on the
                  amount payable to each such Class, to the extent of amounts
                  available;

                                    (ii) SECOND, (a) to the Group I Senior
                  Certificates (other than the Class I-A-2, Class I-A-4 and
                  Class I-A-6 Certificates) on a pro rata basis based on the
                  Certificate Principal Balance of each such Class, the Group I
                  Available Distribution Amount remaining after payments
                  pursuant to clause (i)(a) above, and (b) to the Group II
                  Senior Certificates (other than the Class II-A-2 Certificates)
                  on a pro rata basis based on the Certificate Principal Balance
                  of each such Class, the Group II Available Distribution Amount
                  remaining after payments pursuant to clause (i)(b) above, in
                  each case until the Certificate Principal Balance of each such
                  Class has been reduced to zero;

                                    (iii) THIRD, from the Group I Available
                  Distribution Amount and Group II Available Distribution Amount
                  remaining after payments pursuant to clauses (i) and (ii)
                  above, to each Class of Certificates for which a Senior
                  Interest Shortfall Amount exists, the Senior Interest
                  Shortfall Amount for such Distribution Date, pro rata, based
                  on such Senior Interest Shortfall Amount;

                                    (iv) FOURTH, (a) from the remaining Group I
                  Available Distribution Amount, on a pro rata basis based on
                  the entitlement of the Class I-A-1, Class I-A-3 and Class
                  I-A-5 Certificates, as follows: (i) to the Class I-A-1 Reserve
                  Fund and then from the Class I-A-1 Reserve Fund, to the Class
                  I-A-1 Certificates, the Net WAC Rate Carryover Amount payable
                  to such Class for such Distribution Date (after taking into
                  account all payments received by the Securities Administrator
                  from the related Cap Contract), (ii) to the Class I-A-3
                  Reserve Fund and then from the Class I-A-3 Reserve Fund, to
                  the Class I-A-3 Certificates, the Net WAC Rate Carryover
                  Amount payable to such Class for such Distribution Date (after
                  taking into account all payments received by the Securities
                  Administrator from the related Cap Contract), (iii) to the
                  Class I-A-5 Reserve Fund and then from the Class I-A-5 Reserve
                  Fund, to the Class I-A-5 Certificates, the Net WAC Rate
                  Carryover Amount payable to such Class for such Distribution
                  Date (after taking into account all payments received by the
                  Securities Administrator from the related Cap Contract); and
                  (b) from the remaining Group II Available Distribution Amount,
                  to the Class II-A-1 Reserve Fund and then from the Class
                  II-A-1 Reserve Fund, to the Class II-A-1 Certificates, the Net
                  WAC Rate Carryover Amount payable to such Class for such
                  Distribution Date (after taking into account all payments
                  received by the Securities Administrator from the related Cap
                  Contract);

                                    (v) FIFTH, (a) from the Group I Available
                  Distribution Amount remaining after payments pursuant to
                  clauses (i) through (iv) above, to the Group I Senior
                  Certificates (other than the Class I-A-2, Class I-A-4 and
                  Class I-A-6 Certificates) on a pro rata basis based on the
                  outstanding Certificate Principal Balance of such Class, the
                  amount of any unreimbursed losses previously allocated to each
                  such Class and (b) from the Group II Available Distribution
                  Amount remaining after payments pursuant to clauses (i)
                  through (iv) above, to the Group II Senior Certificates (other
                  than the Class II-A-2 Certificates), on a pro rata basis based
                  on the outstanding Certificate Principal Balance of such
                  Class, the amount of any unreimbursed losses previously
                  allocated to each such Class; and

                                    (vi) SIXTH, to the Class R Certificates, the
                  remainder, if any (which is expected to be zero), of the Group
                  I Available Distribution Amount and Group II Available
                  Distribution Amount remaining after distributions pursuant to
                  clauses (i) through (v) above.

                  On each Distribution Date, the amount of any Prepayment
Charges received in connection with the Loans during the related Prepayment
Period will be paid to the Class II-A-2 Certificates.

                  Section 4.2 ALLOCATION REALIZED LOSSES.

                           (a) Prior to each Distribution Date, the Master
Servicer, based solely on the information provided by the related Servicer,
shall determine the amount of Realized Losses, if any, with respect to each
Group I Loan and Group II Loan.

                           (b) Realized Losses, other than Excess Losses, shall
be allocated as follows: (i) for losses allocable to principal, (a) first,
sequentially, to the Class B-5, Class B-4, Class B-3, Class B-2, Class B-1 and
Class M Certificates, in that order, until the Certificate Principal Balance of
each such Class been reduced to zero, and (b) second, (1) with respect to
Realized Losses related to the Group I Loans, concurrently to the Class I-A-1,
Class I-A-3, Class I-A-5 and Class I-A-7 Certificates, on a pro rata basis based
on the Certificate Principal Balance of each such Class, in each case until the
Certificate Principal Balance of such Class has been reduced to zero, and (b)
with respect to Realized Losses related to the Group II Loans, concurrently to
the Class II-A-1, Class II-A-3 and Class R Certificates, on a pro rata basis
based on the Certificate Principal Balance of each such Class, in each case
until the Certificate Principal Balance of each such Class has been reduced to
zero; and (ii) for losses allocable to interest, (a) first, sequentially, to the
Class B-5, Class B-4, Class B-3, Class B-2, Class B-1 and Class M Certificates,
in that order, in reduction of accrued but unpaid interest thereon until the
amount of interest accrued on such Certificate on such Distribution Date has
been reduced to zero, and then in reduction of the Certificate Principal Balance
of such Certificate until the Certificate Principal Balance thereof has been
reduced to zero, and (b) second, to the Senior Certificates relating to the Loan
Group for which such Realized Losses were incurred, by Pro Rata Allocation,
until the aggregate of the Certificate Principal Balances thereof have been
reduced to zero. In addition, to the extent the related Servicer receives
Subsequent Recoveries with respect to any defaulted Loan, the amount of the
Realized Loss with respect to that defaulted Loan will be reduced to the extent
such Subsequent Recoveries are applied to reduce the Certificate Principal
Balance of any Class of Certificates on any Distribution Date.

                           (c) Excess Losses with respect to the Group I Loans
and Group II Loans will be allocated to the outstanding Class or Classes of
Senior Certificates (other than the Class I-A-2, Class I-A-4, Class I-A-6 and
Class II-A-2 Certificates) of the related Loan Group and to the Subordinate
Certificates by Pro Rata Allocation.

                           (d) On each Distribution Date, if the aggregate
Certificate Principal Balance of the Group I Senior Certificates (other than the
Class I-A-2, Class I-A-4 and Class I-A-6 Certificates), Group II Senior
Certificates (other than the Class II-A-2 Certificates) and Subordinate
Certificates exceeds the aggregate Principal Balance of the Group I Loans and
Group II Loans (after giving effect to distributions of principal and the
allocation and reimbursement of all losses on the related certificates on such
Distribution Date), such excess will be deemed a principal loss and will be
allocated to the Subordinate Certificates in reverse order of seniority until
the Certificate Principal Balance of each such Class has been reduced to zero.
If the Certificate Principal Balance of each Subordinate Certificate has been
reduced to zero and the aggregate Certificate Principal Balance of the Group I
Senior Certificates (other than the Class I-A-2, Class I-A-4 and Class I-A-6
Certificates) and Group II Senior Certificates (other than the Class II-A-2
Certificates) exceeds the aggregate Principal Balance of the Group I Loans and
Group II Loans (after giving effect to distributions of principal and the
allocation and reimbursement of all losses on the Certificates on such
Distribution Date), such excess will be deemed a principal loss and, if
attributable to the Group I Loans, will be allocated to the Group I Senior
Certificates (other than the Class I-A-2, Class I-A-4 and Class I-A-6
Certificates) by Pro Rata Allocation until the Certificate Principal Balance of
each such Class has been reduced to zero, and if attributable to the Group II
Loans, will be allocated to the Group II Senior Certificates (other than the
Class II-A-2 Certificates) by Pro Rata Allocation, until Certificate Principal
Balance of each such Class has been reduced to zero.

                           (e) Realized Losses from the Group I Loans and Group
II Loans shall be applied after all distributions have been made on each
Distribution Date, first, to REMIC I Regular Interest LT-1SUB and REMIC I
Regular Interest LT-2SUB, as applicable, so that the Uncertificated Balance of
each such REMIC I Regular Interest is equal to 0.1% of the excess of (x) the
aggregate Scheduled Principal Balance of the Loans in the related Loan Group
over (y) the current Certificate Principal Balance of the Group I Senior
Certificates (other than the Class I-A-2, Class I-A-4 and Class I-A-6
Certificates) or Group II Senior Certificates (other than the Class II-A-2
Certificates), as applicable (except that if any such excess is a larger number
than in the preceding distribution period, the least amount of Realized Losses
shall be applied to such REMIC I Regular Interests such that the REMIC I
Subordinated Balance Ratio is maintained); and second, to REMIC I Regular
Interest LT-1GRP and REMIC I Regular Interest LT-2GRP, as applicable, so that
the Undertificated Principal Balance of each such REMIC I Regular Interest
remains equal to 0.1% of the aggregate Scheduled Principal Balance of the Group
I Loans and Group II Loans, respectively, and third, any remaining Realized
Losses from each Loan Group shall be allocated to REMIC I Regular Interest
LT-ZZZ.

                  Realized Losses from the Group I Loans and the Group II Loans
shall be applied after all distributions have been made on each Distribution
Date, first, to REMIC II Regular Interest LT-ISUB and REMIC II Regular Interest
LT-IISUB, respectively, and second, any remaining Realized Losses from each Loan
Group shall be allocated to (i) REMIC II Regular Interest LT-IA1, REMIC II
Regular Interest LT-IA3, REMIC II Regular Interest LT-IA5 and REMIC II Regular
Interest LT-IA7, pro rata and (ii) REMIC II Regular Interest LT-IIA1 and REMIC
II Regular Interest LT-IIA3, pro rata respectively.

                  Section 4.3 REDUCTION OF CERTIFICATE PRINCIPAL BALANCES ON THE
CERTIFICATES.

                           (a) All reductions in the Certificate Principal
Balance of a Certificate effected by distributions of principal or allocations
of Realized Losses with respect to the related Loans made on any Distribution
Date shall be binding upon all Holders of such Certificate and of any
Certificate issued upon the registration of transfer or exchange therefor or in
lieu thereof, whether or not such distribution is noted on such Certificate. Any
Subsequent Recoveries collected by the Interim Servicers or the Servicers will
be distributed as part of the Available Distribution Amount in accordance with
the priorities described under Section 4.1. Holders of such Certificates will
not be entitled to any payment in respect of current interest on the amount of
such increases for any Interest Accrual Period preceding the Distribution Date
on which such increase occurs.

                           (b) The final distribution of principal of each
Certificate (and the final distribution with respect to the Residual
Certificates upon termination of the Trust Fund) shall be payable in the manner
provided above only upon presentation and surrender thereof on or after the
Distribution Date therefor at the office or agency of the Securities
Administrator specified in the notice delivered pursuant to Section 4.6 or
Section 9.1.

                           (c) Whenever, on the basis of Curtailments, Payoffs
and Monthly Payments on the Loans and related Insurance Proceeds and Liquidation
Proceeds received and expected to be received during the applicable Prepayment
Period, the Securities Administrator believes that the entire remaining unpaid
aggregate Certificate Principal Balance of any Class of Certificates shall
become distributable on the next Distribution Date, the Securities Administrator
shall, no later than the Determination Date of the month of such Distribution
Date, mail or cause to be mailed to each Person in whose name a Certificate to
be so retired is registered at the close of business on the Record Date, to the
Underwriter and to each Rating Agency a notice to the effect that:

                                    (i) it is expected that funds sufficient to
                  make such final distribution shall be available in the
                  Distribution Account on such Distribution Date, and

                                    (ii) if such funds are available, (A) such
                  final distribution shall be payable on such Distribution Date,
                  but only upon presentation and surrender of such Certificate
                  at the office or agency of the Securities Administrator
                  maintained for such purpose (the address of which shall be set
                  forth in such notice), and (B) no interest shall accrue on
                  such Certificate after such Distribution Date.

                  Section 4.4 COMPLIANCE WITH WITHHOLDING REQUIREMENTS.

                  Notwithstanding any other provision of this Agreement, the
Trustee and the Securities Administrator shall comply with all federal
withholding requirements respecting payments to Certificateholders of interest
or original issue discount that the Trustee and the Securities Administrator
reasonably believe are applicable under the Code. The consent of
Certificateholders shall not be required for such withholding. In the event the
Securities Administrator does withhold any amount from interest or original
issue discount payments or advances thereof to any Certificateholder pursuant to
federal withholding requirements, the Securities Administrator shall indicate
the amount withheld to such Certificateholders.

                  Section 4.5 DISTRIBUTIONS ON THE UNCERTIFICATED REMIC REGULAR
INTERESTS

                  Distributions of principal from the Loans shall be deemed to
be made to the REMIC I Regular Interests, in each case from the related Loan
Group, first, to REMIC I Regular Interest LT-1SUB and REMIC I Regular Interest
LT-2SUB, as applicable, so that the Uncertificated Principal Balance of each
such REMIC I Regular Interest is equal to 0.1% of the excess of (x) the
aggregate Scheduled Principal Balance of the Loans in the related Loan Group
over (y) the current Certificate Principal Balance of the Group I Senior
Certificates or Group II Senior Certificates related to such Loan Group (except
that if any such excess is a larger number than in the preceding distribution
period, the least amount of principal shall be distributed to such REMIC I
Regular Interests such that the REMIC I Subordinated Balance Ratio is
maintained); second, to REMIC I Regular Interest LT-1GRP and REMIC I Regular
Interest LT-2GRP, as applicable, so that the Uncertificated Principal Balance of
each such REMIC I Regular Interest remains equal to 0.1% of the aggregate
Scheduled Principal Balance of the Group I Loans and Group II Loans,
respectively; and third, any remaining principal in each Loan Group to REMIC I
Regular Interest LT-ZZZ. Interest shall be payable to each REMIC I Regular
Interest at the related Uncertificated REMIC I Pass-Through Rate on each such
REMIC I Regular Interest's Uncertificated Principal Balance.

                  Distributions of principal from the Loans shall be deemed to
be made to the REMIC II Regular Interests, in each case from the related Loan
Group, first, to REMIC II Regular Interest LT-IA1, REMIC I Regular Interest
LT-IA3, REMIC I Regular Interest LT-IA5, REMIC I Regular Interest LT-IA7, REMIC
II Regular Interest LT-IIA1, REMIC II Regular Interest LT-IIA3 and REMIC II
Regular Interest LT-R, in the same manner and priority as such distributions are
made to the Class I-A-1, Class I-A-3, Class I-A-5, Class I-A-7, Class II-A-1,
Class II-A-3 and Class R Certificates, respectively, and second, any remaining
principal in each Loan Group to REMIC II Regular Interest LT-ISUB and REMIC II
Regular Interest LT-IISUB in the same manner and priority as such distributions
are made to the Subordinate Certificates. Interest shall be payable to each
REMIC II Regular Interest at the related Uncertificated REMIC II Pass-Through
Rate on each such REMIC II Regular Interest's Uncertificated Principal Balance.

                  Section 4.6 STATEMENTS TO CERTIFICATEHOLDERS.

                  On each Distribution Date, the Securities Administrator shall
provide or make available, upon request to each Holder of a Certificate and the
Credit Risk Manager, a statement (each, a "Remittance Report") as to the
distributions made to such Certificateholders on such Distribution Date setting
forth:

                                    (i) the amount of the distribution made on
                  such Distribution Date to the Holders of the Certificates
                  allocable to principal;

                                    (ii) the amount of the distribution made on
                  such Distribution Date to the Holders of the Certificates
                  allocable to interest;

                                    (iii) the aggregate Servicing Fee received
                  by each Interim Servicer and each Servicer and the Master
                  Servicing Fee received by the Master Servicer during the
                  related Due Period;

                                    (iv) the number and aggregate Principal
                  Balance of the Group I Loans and Group II Loans delinquent
                  one, two and three months or more;

                                    (v) the (A) number and aggregate Principal
                  Balance of Group I Loans and Group II Loans with respect to
                  which foreclosure proceedings have been initiated, and (B) the
                  number and aggregate Principal Balance of Mortgaged Properties
                  acquired through foreclosure, deed in lieu of foreclosure or
                  other exercise of rights respecting the Trustee's security
                  interest in the Group I Loans and Group II Loans;

                                    (vi) the aggregate Principal Balance of the
                  Group I Loans and Group II Loans as of the close of business
                  on the last day of the related Prepayment Period;

                                    (vii) the amount of Special Hazard Coverage
                  available to the Group I Senior Certificates and Group II
                  Senior Certificates remaining as of the close of business on
                  the applicable Determination Date;

                                    (viii) the amount of Bankruptcy Coverage
                  available to the Group I Senior Certificates and Group II
                  Senior Certificates remaining as of the close of business on
                  the applicable Determination Date;

                                    (ix) the amount of Fraud Coverage available
                  to the Group I Senior Certificates and Group II Senior
                  Certificates remaining as of the close of business on the
                  applicable Determination Date;

                                    (x) the amount of Realized Losses with
                  respect to the Group I Loans and Group II Loans allocable to
                  the Certificates on the related Distribution Date and the
                  cumulative amount of Realized Losses incurred and allocated to
                  the related Certificates since the Cut-Off Date;

                                    (xi) the amount of interest accrued but not
                  paid to each Class of Certificates entitled to interest since
                  (a) the prior Distribution Date and (b) the Closing Date;

                                    (xii) the amount of funds advanced by each
                  Interim Servicer, each Servicer and the Master Servicer for
                  such Distribution Date with respect to Group I Loans and Group
                  II Loans;

                                    (xiii) the total amount of Payoffs and
                  Curtailments received during the related Prepayment Period
                  with respect to Group I Loans and Group II Loans and the
                  aggregate amount of any Prepayment Charges received in respect
                  thereof;

                                    (xiv) with respect to any Group I Loan and
                  Group II Loan that became an REO Property during the preceding
                  calendar month, the loan number of such Loan, the Principal
                  Balance and the Scheduled Principal Balance of such Loan;

                                    (xv) to the extent provided by the related
                  Interim Servicer or the related Servicer, the book value of
                  any REO Property as of the close of business on the last
                  Business Day of the calendar month preceding the Distribution
                  Date with respect to the Group I Loans and Group II Loans;

                                    (xvi) the aggregate amount of Extraordinary
                  Trust Fund expenses withdrawn from the Distribution Account
                  for such Distribution Date;

                                    (xvii) the aggregate Certificate Principal
                  Balance of each Class of Certificates, after giving effect to
                  the distributions and allocations of Realized Losses made on
                  such Distribution Date, separately identifying any reduction
                  thereof due to allocations of Realized Losses;

                                    (xviii) the aggregate amount of any
                  Prepayment Interest Shortfalls for such Distribution Date on
                  the Group I Loans and Group II Loans, to the extent not
                  covered by payments by the Master Servicer pursuant to Section
                  3.20;

                                    (xix) the aggregate amount of Relief Act
                  Interest Shortfalls for such Distribution Date with respect to
                  the Group I Loans and Group II Loans;

                                    (xx) the respective Pass-Through Rates
                  applicable to each Class of Certificates as of such
                  Distribution Date;

                                    (xxi) the Net WAC Rate Carryover Amount, if
                  any, for such Distribution Date;

                                    (xxii) the Net WAC Rate Carryover Amount, if
                  any, outstanding after reimbursements therefor on such
                  Distribution Date;

                                    (xxiii) the amount of any deposit to each
                  Reserve Fund contemplated by Section 3.25;

                                    (xxiv) the balance of each Reserve Fund
                  prior to the deposit or withdrawal of any amounts on such
                  Distribution Date;

                                    (xxv) the amount of any withdrawal from
                  related Reserve Fund pursuant to Section 4.1(a)(v) and
                  (b)(iv); and

                                    (xxvi) the balance of each Reserve Fund
                  after all deposits and withdrawals on such Distribution Date.

                  The Securities Administrator shall make such statement (and,
at its option, any additional files containing the same information in an
alternative format) available each month to the Certificateholders, the Trustee
and the Rating Agencies via the Securities Administrator's internet website. The
Securities Administrator's internet website shall initially be located at
http:\\www.ctslink.com and assistance in using the website can be obtained by
calling the Securities Administrator's customer service desk at 1-301-815-6600.
Parties that are unable to use the above distribution option are entitled to
have a paper copy mailed to them via first class mail by calling the customer
service desk and indicating such. The Securities Administrator 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
Securities Administrator shall provide timely and adequate notification to all
above parties regarding any such changes.

                  In the case of information furnished pursuant to subclause (i)
above, the amounts shall be expressed as a dollar amount per single Certificate
of the relevant Class.

                  Within a reasonable period of time after the end of each
calendar year, the Securities Administrator shall furnish to each Person who at
any time during the calendar year was a Holder of a Regular Interest Certificate
a statement containing the information set forth in subclause (i) above,
aggregated for such calendar year or applicable portion thereof during which
such person was a Certificateholder. Such obligation of the Securities
Administrator shall be deemed to have been satisfied to the extent that
substantially comparable information shall be provided by the Securities
Administrator pursuant to any requirements of the Code as from time to time are
in force.

                  Within a reasonable period of time after the end of each
calendar year, the Securities Administrator shall furnish to each Person who at
any time during the calendar year was a Holder of a Class R Certificate a
statement setting forth the amount, if any, actually distributed with respect to
the Class R Certificates aggregated for such calendar year or applicable portion
thereof during which such Person was a Certificateholder.

                  The Securities Administrator shall, upon request, furnish to
each Certificateholder, during the term of this Agreement, such periodic,
special, or other reports or information, whether or not provided for herein, as
shall be reasonable with respect to the Certificateholder, as applicable, or
otherwise with respect to the purposes of this Agreement, all such reports or
information to be provided at the expense of the Certificateholder, in
accordance with such reasonable and explicit instructions and directions as the
Certificateholder may provide.

                  On each Distribution Date the Securities Administrator shall
provide Bloomberg Financial Markets, L.P. ("Bloomberg") CUSIP level factors for
each Class of Certificates as of such Distribution Date, using a format and
media mutually acceptable to the Securities Administrator and Bloomberg.

                  Section 4.7 ADVANCES.

                  If the Monthly Payment on a Loan or a portion thereof is
delinquent as of its Due Date, other than as a result of interest shortfalls due
to bankruptcy proceedings or application of the Relief Act, and the related
Servicer or Interim Servicer fails to make an advance of the delinquent amount
pursuant to the related Servicing Agreement, the Master Servicer shall deposit
in the Distribution Account, from its own funds or from amounts on deposit in
the Distribution Account that are held for future distribution, not later than
the Distribution Account Deposit Date immediately preceding the related
Distribution Date an amount equal to such delinquency, net of the Servicing Fee
and Master Servicing Fee for such Loan except to the extent the Master Servicer
determines any such advance to be nonrecoverable from Liquidation Proceeds,
Insurance Proceeds, or future payments on the Loan for which such Advance was
made. Any amounts held for future distribution and so used shall be
appropriately reflected in the Master Servicer's records and replaced by the
Master Servicer by deposit in the Distribution Account on or before any future
Distribution Account Deposit Date to the extent that the Group I Available
Distribution Amount or Group II Available Distribution Amount (determined
without regard to Advances to be made on the related Distribution Account
Deposit Date) shall be less than the total amount that would be distributed to
the related Classes of Certificateholders pursuant to Section 4.1 on such
Distribution Date if such amounts held for future distributions had not been so
used to make Advances. Subject to the foregoing, the Master Servicer shall
continue to make such Advances through the date that the related Servicer or
Interim Servicer, as applicable is required to do so under its Servicing
Agreement. In the event the Master Servicer elects not to make an Advance
because the Master Servicer deems such Advance nonrecoverable pursuant to this
Section 4.7 on the related Distribution Account Deposit Date, the Master
Servicer shall present an Officer's Certificate to the Trustee (i) stating that
the Master Servicer elects not to make an Advance in a stated amount and (ii)
detailing the reason it deems the advance to be nonrecoverable.

<PAGE>

                                   ARTICLE V
                                THE CERTIFICATES

                  Section 5.1 THE CERTIFICATES.

                           (a) The Certificates in the aggregate will represent
the entire beneficial ownership interest in the Loans and all other assets
included in REMIC I.

                  The Certificates will be substantially in the forms annexed
hereto as Exhibits A-1 through A-10. The Certificates of each Class will be
issuable in registered form only, in denominations of authorized Percentage
Interests as described in the definition thereof. Each Certificate will share
ratably in all rights of the related Class.

                  Upon original issue, the Certificates shall be executed and
authenticated by the Securities Administrator and delivered by the Trustee to
and upon the written order of the Depositor. The Certificates shall be executed
by manual or facsimile signature on behalf of the Trust by the Securities
Administrator by an authorized signatory. Certificates bearing the manual or
facsimile signatures of individuals who were at any time the proper officers of
the Securities Administrator shall bind the Trust, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Certificates or did not hold such offices at
the date of such Certificates. No Certificate shall be entitled to any benefit
under this Agreement or be valid for any purpose, unless there appears on such
Certificate a certificate of authentication substantially in the form provided
herein executed by the Securities Administrator by manual signature, and such
certificate of authentication 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.

                           (b) The Certificates, other than the Class R
Certificates and Junior Subordinate Certificates, shall initially be issued as
one or more Certificates held by the Book-Entry Custodian or, if appointed to
hold such Certificates as provided below, the Depository and registered in the
name of the Depository or its nominee and, except as provided below,
registration of such Certificates may not be transferred by the Securities
Administrator except to another Depository that agrees to hold such Certificates
for the respective Certificate Owners with Ownership Interests therein. The
Certificate Owners shall hold their respective Ownership Interests in and to
such Certificates through the book-entry facilities of the Depository and,
except as provided below, shall not be entitled to definitive, fully registered
Certificates ("Definitive Certificates") in respect of such Ownership Interests.
All transfers by Certificate Owners of their respective Ownership Interests in
the Book-Entry Certificates shall be made in accordance with the procedures
established by the Depository Participant or brokerage firm representing such
Certificate Owner. Each Depository Participant shall only transfer the Ownership
Interests in the Book-Entry Certificates of Certificate Owners it represents or
of brokerage firms for which it acts as agent in accordance with the
Depository's normal procedures. The Securities Administrator is hereby initially
appointed as the Book-Entry Custodian and hereby agrees to act as such in
accordance herewith and in accordance with the agreement that it has with the
Depository authorizing it to act as such. The Book-Entry Custodian may, and, if
it is no longer qualified to act as such, the Book-Entry Custodian shall,
appoint, by a written instrument delivered to the Depositor, the Servicers, the
Master Servicer and, if the Trustee is not the Book-Entry Custodian, the
Trustee, any other transfer agent (including the Depository or any successor
Depository) to act as Book-Entry Custodian under such conditions as the
predecessor Book-Entry Custodian and the Depository or any successor Depository
may prescribe, provided that the predecessor Book-Entry Custodian shall not be
relieved of any of its duties or responsibilities by reason of any such
appointment of other than the Depository. If the Securities Administrator
resigns or is removed in accordance with the terms hereof, the successor
Securities Administrator or, if it so elects, the Depository shall immediately
succeed to its predecessor's duties as Book-Entry Custodian. The Depositor shall
have the right to inspect, and to obtain copies of, any Certificates held as
Book-Entry Certificates by the Book-Entry Custodian.

                           (c) Any Junior Subordinate Certificate initially
offered and sold in offshore transactions in reliance on Regulation S shall be
issued in the form of a temporary global certificate in definitive, fully
registered form (each, a "Regulation S Temporary Global Certificate"), which
shall be deposited with the Securities Administrator or an agent of the
Securities Administrator as custodian for the Depository and registered in the
name of Cede & Co. as nominee of the Depository for the account of designated
agents holding on behalf of Euroclear or Clearstream. Beneficial interests in
each Regulation S Temporary Global Certificate may be held only through
Euroclear or Clearstream; provided, however, that such interests may be
exchanged for interests in a Definitive Certificate in accordance with the
requirements described in Section 5.02. After the expiration of the Release
Date, a beneficial interest in a Regulation S Temporary Global Certificate may
be exchanged for a beneficial interest in the related permanent global
certificate of the same Class (each, a "Regulation S Permanent Global
Certificate"), in accordance with the procedures set forth in Section 5.02. Each
Regulation S Permanent Global Certificate shall be deposited with the Securities
Administrator or an agent of the Securities Administrator as custodian for the
Depository and registered in the name of Cede & Co. as nominee of the
Depository.

                           (d) The Junior Subordinate Certificates offered and
sold to Qualified Institutional Buyers ("QIBs") in reliance on Rule 144A under
the Securities Act ("Rule 144A") will be issued in the form of Definitive
Certificates.

                           (e) The Trustee, the Servicers, the Securities
Administrator, the Master Servicer and the Depositor may for all purposes
(including the making of payments due on the Book-Entry Certificates and Global
Certificates) deal with the Depository as the authorized representative of the
Certificate Owners with respect to the Book-Entry Certificates and Global
Certificates for the purposes of exercising the rights of Certificateholders
hereunder. The rights of Certificate Owners with respect to the Book-Entry
Certificates and Global Certificates shall be limited to those established by
law and agreements between such Certificate Owners and the Depository
Participants and brokerage firms representing such Certificate Owners. Multiple
requests and directions from, and votes of, the Depository as Holder of the
Book-Entry Certificates and Global Certificates with respect to any particular
matter shall not be deemed inconsistent if they are made with respect to
different Certificate Owners. The Securities Administrator may establish a
reasonable record date in connection with solicitations of consents from or
voting by Certificateholders and shall give notice to the Depository of such
record date.

                  If (i)(A) the Depositor advises the Securities Administrator
in writing that the Depository is no longer willing or able to properly
discharge its responsibilities as Depository, and (B) the Depositor is unable to
locate a qualified successor, (ii) the Depositor at its option advises the
Securities Administrator in writing that it elects to terminate the book-entry
system through the Depository or (iii) after the occurrence of a Servicer Event
of Default, Certificate Owners representing in the aggregate not less than 51%
of the Ownership Interests of the Book-Entry Certificates advise the Securities
Administrator through the Depository, in writing, that the continuation of a
book-entry system through the Depository is no longer in the best interests of
the Certificate Owners, the Securities Administrator shall notify all
Certificate Owners, through the Depository, of the occurrence of any such event
and of the availability of Definitive Certificates to Certificate Owners
requesting the same. With respect to a Global Certificate, the related
Certificate Owner (other than a Holder of a Regulation S Temporary Global
Certificate) may request that its interest in a Global Certificate be exchanged
for a Definitive Certificate. Upon surrender to the Securities Administrator of
the Book-Entry Certificates by the Book-Entry Custodian or the Depository, as
applicable, or the Global Certificates by the Depository accompanied by
registration instructions from the Depository for registration of transfer, the
Securities Administrator shall cause the Definitive Certificates to be issued.
Such Definitive Certificates will be issued in minimum denominations of $10,000
except that any beneficial ownership that was represented by a Book-Entry
Certificate, or a Global Certificate, as applicable in an amount less than
$10,000 immediately prior to the issuance of a Definitive Certificate shall be
issued in a minimum denomination equal to the amount represented by such
Book-Entry Certificate or a Global Certificate, as applicable. None of the
Depositor, the Servicers, the Master Servicer, the Securities Administrator or
the Trustee shall be liable for any delay in the 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 Depository shall be deemed
to be imposed upon and performed by the Securities Administrator on behalf of
the Trustee, to the extent applicable with respect to such Definitive
Certificates, and the Securities Administrator on behalf of the Trustee shall
recognize the Holders of the Definitive Certificates as Certificateholders
hereunder.

                           (f) Neither the Trustee nor the Securities
Administrator shall have any liability to the Trust Fund and shall be
indemnified by the Trust Fund for, any cost, liability or expense incurred by
them arising from a registration of a Certificate or transfer, pledge sale or
other disposition of a Certificate in reliance upon a certification, Officer's
Certificate, affidavit, ruling or Opinion of Counsel described in this Article
V.

                  Section 5.2 REGISTRATION OF TRANSFER AND EXCHANGE OF
CERTIFICATES.

                           (a) The Securities Administrator shall cause to be
kept at one of the offices or agencies to be appointed by the Securities
Administrator in accordance with the provisions of Section 8.11, a Certificate
Register for the Certificates in which, subject to such reasonable regulations
as it may prescribe, the Securities Administrator shall provide for the
registration of Certificates and of transfers and exchanges of Certificates as
herein provided.

                           (b) No transfer of any Junior Subordinate Certificate
shall be made unless that transfer is made pursuant to an effective registration
statement under the Securities Act, and effective registration or qualification
under applicable state securities laws, or is made in a transaction that does
not require such registration or qualification. In the event that such a
transfer of a Junior Subordinate Certificate is to be made without registration
or qualification (other than in connection with the initial transfer of any such
Certificate by the Depositor), the Securities Administrator shall require
receipt of: (i) if such transfer is purportedly being made in reliance upon Rule
144A under the Securities Act, written certifications from the Certificateholder
desiring to effect the transfer and from such Certificateholder's prospective
transferee, substantially in the form attached hereto as Exhibit B-1; (ii) if
such transfer is purportedly being made in reliance upon Rule 501(a) under the
Securities Act, written certifications from the Certificateholder desiring to
effect the transfer and from such Certificateholder's prospective transferee,
substantially in the form attached hereto as Exhibit B-2; (iii) if such transfer
is purportedly being made in reliance on Regulation S, a written certification
from the prospective transferee, substantially in the form attached hereto as
Exhibit B-3 and (iv) in all other cases, an Opinion of Counsel satisfactory to
the Securities Administrator that such transfer may be made without such
registration or qualification (which Opinion of Counsel shall not be an expense
of the Trust Fund or of the Depositor, the Trustee, the Master Servicer, the
Securities Administrator or the Servicers), together with copies of the written
certification(s) of the Certificateholder desiring to effect the transfer and/or
such Certificateholder's prospective transferee upon which such Opinion of
Counsel is based, if any. Neither of the Depositor nor the Securities
Administrator is obligated to register or qualify any such Certificates under
the Securities Act or any other securities laws or to take any action not
otherwise required under this Agreement to permit the transfer of such
Certificates without registration or qualification. Any Certificateholder
desiring to effect the transfer of any such Certificate shall, and does hereby
agree to, indemnify the Trustee, the Depositor, the Master Servicer, the
Securities Administrator and the Servicers against any liability that may result
if the transfer is not so exempt or is not made in accordance with such federal
and state laws.

                  A holder of a beneficial interest in a Regulation S Temporary
Global Certificate must provide Euroclear or Clearstream, as the case may be,
with a certificate in the form of Annex A to Exhibit B-4 hereto certifying that
the beneficial owner of the interest in such Global Certificate is not a U.S.
Person (as defined in Regulation S), and Euroclear or Clearstream, as the case
may be, must provide to the Trustee and Securities Administrator a certificate
in the form of Exhibit B-4 hereto prior to (i) the payment of interest or
principal with respect to such holder's beneficial interest in the Regulation S
Temporary Global Certificate and (ii) any exchange of such beneficial interest
for a beneficial interest in a Regulation S Permanent Global Certificate.

                           (c) No transfer of a Residual Certificate or any
interest therein shall be made to any Plan subject to ERISA or Section 4975 of
the Code, any Person acting, directly or indirectly, on behalf of any such Plan
or any Person acquiring such Certificates with "Plan Assets" of a Plan within
the meaning of the Department of Labor regulation promulgated at 29 C.F.R. ss.
2510.3-101 ("Plan Assets") unless the Securities Administrator is provided with
an Opinion of Counsel on which the Depositor, the Master Servicer, the
Securities Administrator, the Trustee and the Servicers may rely, which
establishes to the satisfaction of the Securities Administrator that the
purchase of such Certificates is permissible under applicable law, will not
constitute or result in any prohibited transaction under ERISA or Section 4975
of the Code and will not subject the Depositor, the Servicers, the Trustee, the
Master Servicer, the Securities Administrator or the Trust Fund to any
obligation or liability (including obligations or liabilities under ERISA or
Section 4975 of the Code) in addition to those undertaken in this Agreement,
which Opinion of Counsel shall not be an expense of the Depositor, the
Servicers, the Trustee, the Master Servicer, the Securities Administrator, the
Trust Fund. An Opinion of Counsel will not be required in connection with the
initial transfer of any such Certificate by the Depositor to an affiliate of the
Depositor (in which case, the Depositor or any affiliate thereof shall have
deemed to have represented that such affiliate is not a Plan or a Person
investing Plan Assets) and the Securities Administrator shall be entitled to
conclusively rely upon a representation (which, upon the request of the
Securities Administrator, shall be a written representation) from the Depositor
of the status of such transferee as an affiliate of the Depositor.

                  Each Transferee of a Class M or Class B Certificate will be
deemed to have represented by virtue of its purchase or holding of such
Certificate (or interest therein) that either (a) such Transferee is not a Plan
or purchasing such Certificate with Plan Assets, (b) for Certificates other than
Class B-3, Class B-4 or Class B-5 Certificates, it has acquired and is holding
such Certificate in reliance on Prohibited Transaction Exemption ("PTE") 94-84
or FAN 97-03E, as amended by PTE 97-34, 62 Fed. Reg. 39021 (July 21, 1997), PTE
2000-58, 65 Fed. Reg. 67765 (November 13, 2000) and PTE 2002-41, 67 Fed. Reg.
54487 (August 22, 2002) (the "Exemption"), and that it understands that there
are certain conditions to the availability of the Exemption including that such
Certificate must be rated, at the time of purchase, not lower than "BBB-" (or
its equivalent) by a Rating Agency or (c) the following conditions are
satisfied: (i) such Transferee is an insurance company, (ii) the source of funds
used to purchase or hold such Certificate (or interest therein) is an "insurance
company general account" (as defined in PTCE 95-60, and (iii) the conditions set
forth in Sections I and III of PTCE 95-60 have been satisfied.

                  If any Certificate or any interest therein is acquired or held
in violation of the conditions described in this Section 5.2(c), the next
preceding permitted beneficial owner will be treated as the beneficial owner of
that Certificate, retroactive to the date of transfer to the purported
beneficial owner. Any purported beneficial owner whose acquisition or holding of
any certificate or interest therein was effected in violation of the conditions
described in this Section 5.2(c) shall indemnify and hold harmless the
Depositor, the Trustee, the Servicers, the Master Servicer, the Securities
Administrator and the Trust Fund from and against any and all liabilities,
claims, costs or expenses incurred by those parties as a result of that
acquisition or holding.

                           (d) Each Transferee of a Class R Certificate shall be
deemed by the acceptance or acquisition of the related Ownership Interest to
have agreed to be bound by the following provisions and to have irrevocably
appointed the Depositor or its designee as its attorney-in-fact to negotiate the
terms of any mandatory sale under clause (v) below and to execute all
instruments of transfer and to do all other things necessary in connection with
any such sale, and the rights of each Transferee of a Class R Certificate are
expressly subject to the following provisions:

                                    (i) Each such Transferee shall be a
                  Permitted Transferee and shall promptly notify the Securities
                  Administrator of any change or impending change in its status
                  as a Permitted Transferee.

                                    (ii) No Person shall acquire an Ownership
                  Interest in a Class R Certificate unless such Ownership
                  Interest is a PRO RATA undivided interest.

                                    (iii) In connection with any proposed
                  transfer of any Ownership Interest in a Class R Certificate,
                  the Securities Administrator shall as a condition to
                  registration of the transfer, require delivery to it, in form
                  and substance satisfactory to it, of each of the following:

                                            (A) an affidavit in the form of
                           Exhibit C hereto from the proposed Transferee to the
                           effect that such Transferee is a Permitted Transferee
                           and that it is not acquiring its Ownership Interest
                           in the Class R Certificate that is the subject of the
                           proposed transfer as a nominee, trustee or agent for
                           any Person who is not a Permitted Transferee; and

                                            (B) a covenant of the proposed
                           Transferee to the effect that the proposed Transferee
                           agrees to be bound by and to abide by the transfer
                           restrictions applicable to the Class R Certificates.

                                    (iv) Any attempted or purported transfer of
                  any Ownership Interest in a Class R Certificate in violation
                  of the provisions of this Section shall be absolutely null and
                  void and shall vest no rights in the purported Transferee. If
                  any purported Transferee shall, in violation of the provisions
                  of this Section, become a Holder of a Class R Certificate,
                  then the prior Holder of such Class R Certificate that is a
                  Permitted Transferee shall, upon discovery that the
                  registration of transfer of such Class R Certificate was not
                  in fact permitted by this Section, be restored to all rights
                  as Holder thereof retroactive to the date of registration of
                  transfer of such Class R Certificate. The Securities
                  Administrator shall be under no liability to any Person for
                  any registration of transfer of a Class R Certificate that is
                  in fact not permitted by this Section or for making any
                  distributions due on such Class R 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
                  Securities Administrator received the documents specified in
                  clause (iii). The Securities Administrator shall be entitled
                  to recover from any Holder of a Class R Certificate that was
                  in fact not a Permitted Transferee at the time such
                  distributions were made all distributions made on such Class R
                  Certificate. Any such distributions so recovered by the
                  Securities Administrator shall be distributed and delivered by
                  the Securities Administrator to the prior Holder of such Class
                  R Certificate that is a Permitted Transferee.

                                    (v) If any Person other than a Permitted
                  Transferee acquires any Ownership Interest in a Class R
                  Certificate in violation of the restrictions in this Section,
                  then the Securities Administrator shall have the right but not
                  the obligation, without notice to the Holder of such Class R
                  Certificate or any other Person having an Ownership Interest
                  therein, to notify the Depositor to arrange for the sale of
                  such Class R Certificate. The proceeds of such sale, net of
                  commissions (which may include commissions payable to the
                  Depositor or its affiliates in connection with such sale),
                  expenses and taxes due, if any, will be remitted by the
                  Securities Administrator to the previous Holder of such Class
                  R Certificate that is a Permitted Transferee, except that in
                  the event that the Securities Administrator determines that
                  the Holder of such Class R Certificate may be liable for any
                  amount due under this Section or any other provisions of this
                  Agreement, the Securities Administrator may withhold a
                  corresponding amount from such remittance as security for such
                  claim. The terms and conditions of any sale under this clause
                  (v) shall be determined in the sole discretion of the
                  Securities Administrator and it shall not be liable to any
                  Person having an Ownership Interest in a Class R Certificate
                  as a result of its exercise of such discretion.

                                    (vi) If any Person other than a Permitted
                  Transferee acquires any Ownership Interest in a Class R
                  Certificate in violation of the restrictions in this Section,
                  then the Securities Administrator upon receipt of reasonable
                  compensation will provide to the Internal Revenue Service, and
                  to the persons specified in Sections 860E(e)(3) and (6) of the
                  Code, information needed to compute the tax imposed under
                  Section 860E(e)(5) of the Code on transfers of Class R
                  interests to Disqualified Organizations.

                  The foregoing provisions of this Section shall cease to apply
to transfers occurring on or after the date on which there shall have been
delivered to the Securities Administrator, in form and substance satisfactory to
the Securities Administrator, (i) written notification from each Rating Agency
that the removal of the restrictions on transfer set forth in this Section will
not cause such Rating Agency to downgrade its rating of the Certificates and
(ii) an Opinion of Counsel to the effect that such removal will not cause any
REMIC created hereunder to fail to qualify as a REMIC. The Holder of the Class R
Certificate issued hereunder, while not a Disqualified Organization, is the Tax
Matters Person.

                           (e) Subject to the preceding subsections, upon
surrender for registration of transfer of any Certificate at any office or
agency of the Securities Administrator maintained for such purpose pursuant to
Section 8.11, the Securities Administrator shall execute, authenticate and
deliver, in the name of the designated Transferee or Transferees, one or more
new Certificates of the same Class of a like aggregate Percentage Interest.

                           (f) At the option of the Holder thereof, any
Certificate may be exchanged for other Certificates of the same Class with
Authorized Denominations and a like aggregate Percentage Interest, upon
surrender of such Certificate to be exchanged at any office or agency of the
Securities Administrator maintained for such purpose pursuant to Section 8.11.
Whenever any Certificates are so surrendered for exchange, the Securities
Administrator shall execute, authenticate and deliver, the Certificates which
the Certificateholder making the exchange is entitled to receive. Every
Certificate presented or surrendered for transfer or exchange shall (if so
required by the Securities Administrator) be duly endorsed by, or be accompanied
by a written instrument of transfer in the form satisfactory to the Securities
Administrator duly executed by, the Holder thereof or his attorney duly
authorized in writing.

                           (g) No service charge to the Certificateholders shall
be made for any transfer or exchange of Certificates, but the Securities
Administrator may require payment of a sum sufficient to cover any tax or
governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

                           (h) All Certificates surrendered for transfer and
exchange shall be canceled and destroyed by the Securities Administrator in
accordance with its customary procedures.

                  Section 5.3 MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES.

                  If (i) any mutilated Certificate is surrendered to the
Securities Administrator, or the Securities Administrator receives evidence to
its satisfaction of the destruction, loss or theft of any Certificate and of the
ownership thereof, and (ii) there is delivered to Securities Administrator such
security or indemnity as may be required by it to save it harmless, then, in the
absence of actual knowledge by the Securities Administrator that such
Certificate has been acquired by a protected purchaser, the Securities
Administrator, shall execute, authenticate and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of the same Class and of like denomination and Percentage Interest.
Upon the issuance of any new Certificate under this Section, the Securities
Administrator 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 Securities Administrator)
connected therewith. Any replacement Certificate issued pursuant to this Section
shall constitute complete and indefeasible evidence of ownership in the
applicable REMIC created hereunder, as if originally issued, whether or not the
lost, stolen or destroyed Certificate shall be found at any time.

                  Section 5.4 PERSONS DEEMED OWNERS.

                  The Depositor, the Servicers, the Trustee, the Master
Servicer, the Securities Administrator and any agent of any of them may treat
the Person in whose name any Certificate is registered as the owner of such
Certificate for the purpose of receiving distributions pursuant to Section 4.1
and for all other purposes whatsoever, and none of the Depositor, the Servicers,
the Trustee, the Master Servicer, the Securities Administrator or any agent of
any of them shall be affected by notice to the contrary.

                  Section 5.5 CERTAIN AVAILABLE INFORMATION.

                  On or prior to the date of the first sale of any Junior
Subordinate Certificate to an Independent third party, the Depositor shall
provide to the Securities Administrator ten copies of any private placement
memorandum or other disclosure document used by the Depositor in connection with
the offer and sale of such Certificate. In addition, if any such private
placement memorandum or disclosure document is revised, amended or supplemented
at any time following the delivery thereof to the Securities Administrator, the
Depositor promptly shall inform the Securities Administrator of such event and
shall deliver to the Securities Administrator ten copies of the private
placement memorandum or disclosure document, as revised, amended or
supplemented. The Securities Administrator shall maintain at its office as set
forth in Section 11.5 hereof and shall make available free of charge during
normal business hours for review by any Holder of a Certificate or any Person
identified to the Securities Administrator as a prospective transferee of a
Certificate, originals or copies of the following items: (i) in the case of a
Holder or prospective transferee of a Junior Subordinate Certificate, the
private placement memorandum or other disclosure document relating to such Class
of Certificates, in the form most recently provided to the Securities
Administrator; and (ii) in all cases, (A) this Agreement and any amendments
hereof entered into pursuant to Section 10.1, (B) all monthly statements
required to be delivered to Certificateholders of the Junior Subordinate
Certificates pursuant to Section 4.6 since the Closing Date, and all other
notices, reports, statements and written communications delivered to the
Certificateholders of the relevant Class pursuant to this Agreement since the
Closing Date and (C) any copies of all Officers' Certificates of the Servicers
since the Closing Date delivered to the Master Servicer to evidence such
Person's determination that any Monthly Advance or Servicing Advance was, or if
made, would be a Nonrecoverable Monthly Advance or Nonrecoverable Servicing
Advance. Copies and mailing of any and all of the foregoing items will be
available from the Securities Administrator upon request at the expense of the
Person requesting the same.

<PAGE>

                                   ARTICLE VI
        THE DEPOSITOR AND THE MASTER SERVICER AND THE CREDIT RISK MANAGER

                  Section 6.1 LIABILITY OF THE DEPOSITOR AND THE MASTER
SERVICER.

                  The Depositor and the Master Servicer each shall be liable in
accordance herewith only to the extent of the obligations specifically imposed
by this Agreement upon them in their respective capacities as Depositor and
Master Servicer and undertaken hereunder by the Depositor and the Master
Servicer herein.

                  Section 6.2 MERGER OR CONSOLIDATION OF THE DEPOSITOR OR THE
MASTER SERVICER.

                  Subject to the following paragraph, the Depositor shall keep
in full effect its existence, rights and franchises as a corporation under the
laws of the jurisdiction of its incorporation. Subject to the following
paragraph, the Master Servicer shall keep in full effect its existence, rights
and franchises as a corporation under the laws of the jurisdiction of its
formation. The Depositor and the Master Servicer each shall obtain and preserve
its qualification to do business as a foreign corporation in each jurisdiction
in which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, the Certificates or any of the Loans and to
perform its respective duties under this Agreement.

                  The Depositor or the Master Servicer may be merged or
consolidated with or into any Person, or transfer all or substantially all of
its assets to any Person, in which case any Person resulting from any merger or
consolidation to which the Depositor or the Master Servicer shall be a party, or
any Person succeeding to the business of the Depositor or the Master Servicer,
shall be the successor of the Depositor or the Master Servicer, as the case may
be, hereunder, without the execution or filing of any paper or any further act
on the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided, however, that the Rating Agencies' ratings of the
Certificates in effect immediately prior to such merger or consolidation will
not be qualified, reduced or withdrawn as a result thereof (as evidenced by a
letter to such effect from the Rating Agencies).

                  Section 6.3 LIMITATION ON LIABILITY OF THE DEPOSITOR, THE
MASTER SERVICER, THE INTERIM SERVICERS, THE SERVICERS, THE SECURITIES
ADMINISTRATOR AND OTHERS.

                  None of the Depositor, the Master Servicer, the Securities
Administrator, the Interim Servicers, the Servicers or any of the directors,
officers, employees or agents of the Depositor, the Master Servicer, the
Securities Administrator or the Servicers shall be under any liability to the
Trust Fund or the Certificateholders for any action taken or for refraining from
the taking of any action in good faith pursuant to this Agreement or the
Servicing Agreements, or for errors in judgment; provided, however, that this
provision shall not protect the Depositor, the Master Servicer, the Securities
Administrator, the Servicers, the Interim Servicers or any such person against
any breach of warranties, representations or covenants made herein or in the
Servicing Agreements, or against any specific liability imposed on the Master
Servicer, the Securities Administrator, the Interim Servicers or the Servicers
pursuant hereto or pursuant to the Servicing Agreements, or against any
liability which would otherwise be imposed by reason of willful misfeasance, bad
faith or gross negligence in the performance of duties or by reason of reckless
disregard of obligations and duties hereunder or under the Servicing Agreements.
The Depositor, the Master Servicer, the Securities Administrator, the Servicers,
the Interim Servicers and any director, officer, employee or agent of the
Depositor, the Master Servicer, the Securities Administrator, the Servicers or
the Interim Servicers may rely in good faith on any document of any kind which,
PRIMA FACIE, is properly executed and submitted by any Person respecting any
matters arising hereunder or under the Servicing Agreements. The Depositor, the
Master Servicer, the Servicers, the Securities Administrator, the Custodian and
any director, officer, employee or agent of the Depositor, the Master Servicer,
the Servicers, the Interim Servicers, the Custodian or the Securities
Administrator shall be indemnified and held harmless by the Trust Fund against
any loss, liability or expense incurred in connection with any legal action
relating to this Agreement, the Certificates, any Servicing Agreement or the Cap
Contracts, or any loss, liability or expense incurred by any of such Persons
other than by reason of such Person's willful misfeasance, bad faith or gross
negligence in the performance of its duties hereunder or by reason of reckless
disregard of its obligations and duties hereunder. None of the Depositor, the
Master Servicer, the Securities Administrator, the Custodian, any Servicer or
any Interim Servicer shall be under any obligation to appear in, prosecute or
defend any legal action unless such action is related to its respective duties
under this Agreement, the Custodial Agreement, the applicable Servicing
Agreement or the Cap Contracts and, in its opinion, does not involve it in any
expense or liability; provided, however, that each of the Depositor, the Master
Servicer, the Custodian and the Securities Administrator may in its discretion
undertake any such action which it may deem necessary or desirable with respect
to this Agreement and the rights and duties of the parties hereto and the
interests of the Certificateholders hereunder. In such event, the legal expenses
and costs of such action and any liability resulting therefrom (except any loss,
liability or expense incurred by reason of willful misfeasance, bad faith or
gross negligence in the performance of duties hereunder or by reason of reckless
disregard of obligations and duties hereunder) shall be expenses, costs and
liabilities of the Trust Fund, and the Depositor, the Master Servicer, the
Custodian, the Servicers, the Interim Servicers and the Securities Administrator
shall be entitled to be reimbursed therefor from the related Distribution
Account as and to the extent provided in Article III, any such right of
reimbursement being prior to the rights of the Certificateholders to receive any
amount in the related Distribution Account.

                  Section 6.4 LIMITATION ON RESIGNATION OF THE MASTER SERVICER.

                  The Master Servicer shall not resign from the obligations and
duties hereby imposed on it except upon determination that its duties hereunder
are no longer permissible under applicable law. Any such determination pursuant
to the preceding sentence permitting the resignation of the Master Servicer
shall be evidenced by an Opinion of Counsel to such effect obtained at the
expense of the Master Servicer and delivered to the Trustee and the Rating
Agencies. No resignation of the Master Servicer shall become effective until the
Trustee or a successor Master Servicer shall have assumed the Master Servicer's
responsibilities, duties, liabilities (other than those liabilities arising
prior to the appointment of such successor) and obligations under this
Agreement.

                  Section 6.5 ASSIGNMENT OF MASTER SERVICING.

                  The Master Servicer may sell and assign its rights and
delegate its duties and obligations in its entirety as Master Servicer under
this Agreement; provided, however, that: (i) the purchaser or transferee
accepting such assignment and delegation (a) shall be a Person which shall be
qualified to service mortgage loans for Fannie Mae or Freddie Mac; (b) shall
have a net worth of not less than $15,000,000 (unless otherwise approved by each
Rating Agency pursuant to clause (ii) below); (c) shall be reasonably
satisfactory to the Trustee (as evidenced in a writing signed by the Trustee);
and (d) shall execute and deliver to the Trustee an agreement, in form and
substance reasonably satisfactory to the Trustee, which contains an assumption
by such Person of the due and punctual performance and observance of each
covenant and condition to be performed or observed by it as master servicer
under this Agreement, any custodial agreement from and after the effective date
of such agreement; (ii) each Rating Agency shall be given prior written notice
of the identity of the proposed successor to the Master Servicer and each Rating
Agency's rating of the Certificates in effect immediately prior to such
assignment, sale and delegation will not be downgraded, qualified or withdrawn
as a result of such assignment, sale and delegation, as evidenced by a letter to
such effect delivered to the Master Servicer and the Trustee; and (iii) the
Master Servicer assigning and selling the master servicing shall deliver to the
Trustee an officer's certificate and an Opinion of Independent counsel, each
stating that all conditions precedent to such action under this Agreement have
been completed and such action is permitted by and complies with the terms of
this Agreement. No such assignment or delegation shall affect any liability of
the Master Servicer arising prior to the effective date thereof.

                  Section 6.6 RIGHTS OF THE DEPOSITOR IN RESPECT OF THE MASTER
SERVICER.

                  The Master Servicer shall afford the Depositor and the
Trustee, upon reasonable notice, during normal business hours, access to all
records maintained by the Master Servicer in respect of the Master Servicer's
rights and obligations hereunder and access to officers of the Master Servicer
responsible for such obligations. Upon request, the Master Servicer shall
furnish to the Depositor and the Trustee the most recent financial statements of
its parent and such other information relating to the Master Servicer's capacity
to perform its obligations under this Agreement as it possesses. To the extent
such information is not otherwise available to the public, the Depositor and the
Trustee shall not disseminate any information obtained pursuant to the preceding
two sentences without the Master Servicer's written consent, except as required
pursuant to this Agreement or to the extent that it is appropriate to do so (i)
in working with legal counsel, auditors, taxing authorities or other
governmental agencies or (ii) pursuant to any law, rule, regulation, order,
judgment, writ, injunction or decree of any court or governmental authority
having jurisdiction over the Depositor, the Trustee or the Trust Fund, and in
any case, the Depositor or the Trustee, as the case may be, shall use its best
efforts to assure the confidentiality of any such disseminated non-public
information. The Depositor may, but is not obligated to, enforce the obligations
of the Master Servicer under this Agreement and may, but is not obligated to,
perform, or cause a designee to perform, any defaulted obligation of the Master
Servicer under this Agreement or exercise the rights of the Master Servicer
under this Agreement; provided that the Master Servicer shall not be relieved of
any of its obligations under this Agreement by virtue of such performance by the
Depositor or its designee. The Depositor shall not have any responsibility or
liability for any action or failure to act by the Master Servicer and is not
obligated to supervise the performance of the Master Servicer under this
Agreement or otherwise.

                  Section 6.7 DUTIES OF THE CREDIT RISK MANAGER.

                  For and on behalf of the Depositor, pursuant to the Credit
Risk Management Agreements the Credit Risk Manager will provide reports and
recommendations concerning certain delinquent and defaulted Loans, and as to the
collection of any Prepayment Charges with respect to the Loans. Such reports and
recommendations will be based upon information provided to the Credit Risk
Manager pursuant to the related Credit Risk Management Agreement, and the Credit
Risk Manager shall look solely to the related Servicer and/or Master Servicer
for all information and data (including loss and delinquency information and
data) relating to the servicing of the related Loans. Upon any termination of
the Credit Risk Manager or the appointment of a successor Credit Risk Manager,
the Depositor shall give written notice thereof to the Servicers, the Master
Servicer, the Trustee and each Rating Agency. Notwithstanding the foregoing, the
termination of the Credit Risk Manager pursuant to this Section shall not become
effective until the appointment of a successor Credit Risk Manager.

                  Section 6.8 LIMITATION UPON LIABILITY OF THE CREDIT RISK
MANAGER.

                  Neither the Credit Risk Manager, nor any of its directors,
officers, employees, or agents shall be under any liability to the Trustee, the
Certificateholders, or the Depositor for any action taken or for refraining from
the taking of any action made in good faith pursuant to this Agreement, in
reliance upon information provided by a Servicer under a Credit Risk Management
Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Credit Risk Manager or any such person against liability
that would otherwise be imposed by reason of willful malfeasance or bad faith in
its performance of its duties. The Credit Risk Manager and any director,
officer, employee, or agent of the Credit Risk Manager 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, and may rely in good faith upon
the accuracy of information furnished by a Servicer pursuant to a Credit Risk
Management Agreement in the performance of its duties thereunder and hereunder.

                  Section 6.9 REMOVAL OF THE CREDIT RISK MANAGER.

                  The Credit Risk Manager may be removed as Credit Risk Manager
by Certificateholders evidencing, in aggregate, not less than 66 2/3% of the
aggregate Percentage Interests of all Classes of Certificates, in the exercise
of its or their sole discretion. The Certificateholders shall provide written
notice of the Credit Risk Manager's removal to the Trustee. Upon receipt of such
notice, the Trustee shall provide written notice to the Credit Risk Manager of
its removal, which shall be effective upon receipt of such notice by the Credit
Risk Manager.

<PAGE>

                                  ARTICLE VII
                                     DEFAULT

                  Section 7.1 MASTER SERVICER EVENTS OF DEFAULT.

                  "Master Servicer Event of Default," wherever used herein,
means any one of the following events:

                                    (i) [Reserved];

                                    (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 the
                  Master Servicer contained in this Agreement, or the breach by
                  the Master Servicer of any representation and warranty
                  contained in Section 2.5, which continues unremedied for a
                  period of 30 days after the date on which written notice of
                  such failure, requiring the same to be remedied, shall have
                  been given to the Master Servicer by the Depositor or the
                  Trustee or to the Master Servicer, the Depositor and the
                  Trustee by the Holders of the related Certificates evidencing,
                  in aggregate, not less than 25% of the aggregate Certificate
                  Principal Balance of the Certificates; or

                                    (iii) a decree or order of a court or agency
                  or supervisory authority having jurisdiction in the premises
                  in an involuntary case under any present or future federal or
                  state bankruptcy, insolvency or similar law or the appointment
                  of a conservator or receiver or liquidator in any insolvency,
                  readjustment of debt, marshalling of assets and liabilities or
                  similar proceeding, 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 90 days; 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 or similar proceedings of or relating to it or
                  of or relating to all or substantially all of its property; or

                                    (v) the Master Servicer shall admit in
                  writing its inability to pay its debts generally as they
                  become due, file a petition to take advantage of any
                  applicable insolvency or reorganization statute, make an
                  assignment for the benefit of its creditors, or voluntarily
                  suspend payment of its obligations; or

                                    (vi) any failure of the Master Servicer to
                  make any Advance on any Distribution Account Deposit Date
                  required to be made from its own funds pursuant to Section 4.7
                  which continues unremedied until 3:00 p.m. New York time on
                  the Business Day immediately following the Distribution
                  Account Deposit Date.

                  If a Master Servicer Event of Default described in clauses
(ii) through (v) of this Section shall occur, then, and in each and every such
case, so long as such Master Servicer Event of Default shall not have been
remedied, the Depositor or the Trustee may, and at the written direction of the
Holders of Certificates evidencing, in aggregate, not less than 51% of the
aggregate Certificate Principal Balance of the Certificates, the Trustee shall,
by notice in writing to the Master Servicer (and to the Depositor if given by
the Trustee or to the Trustee if given by the Depositor) with a copy to each
Rating Agency, terminate all of the rights and obligations of the Master
Servicer (and the Securities Administrator if the Master Servicer and the
Securities Administrator are the same entity) in its capacity as Master Servicer
(and in its capacity as Securities Administrator if the Master Servicer and the
Securities Administrator are the same entity) under this Agreement, to the
extent permitted by law, and in and to the Loans and the proceeds thereof.
Except as otherwise provided in Section 7.4, if a Master Servicer Event of
Default described in clause (vi) hereof shall occur, the Trustee shall, by
notice in writing to the Master Servicer and the Depositor, terminate all of the
rights and obligations of the Master Servicer (and the Securities Administrator
if the Master Servicer and the Securities Administrator are the same entity) in
its capacity as Master Servicer under this Agreement (and in its capacity as
Securities Administrator if the Master Servicer and the Securities Administrator
are the same entity) and in and to the 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, if applicable, the Securities
Administrator) under this Agreement, whether with respect to the Certificates
(other than as a Holder of any Certificate) or the Loans or otherwise, shall
pass to and be vested in the Trustee pursuant to and under this Section, and,
without limitation, the Trustee is hereby authorized and empowered, as
attorney-in-fact or otherwise, to execute and deliver, on behalf of and at the
expense of the Master Servicer, (and, if applicable, the Securities
Administrator) 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 Loans and related documents, or otherwise. The
Master Servicer (and, if applicable, the Securities Administrator) agrees
promptly (and in any event no later than ten Business Days subsequent to such
notice) to provide the Trustee with all documents and records requested by it to
enable it to assume the Master Servicer's (and, if applicable, the Securities
Administrator's) functions under this Agreement, and to cooperate with the
Trustee in effecting the termination of the Master Servicer's (and, if
applicable, the Securities Administrator's) responsibilities and rights under
this Agreement (provided, however, that the Master Servicer shall continue to be
entitled to receive all amounts accrued or owing to it under this Agreement on
or prior to the date of such termination, whether in respect of Advances or
otherwise, and shall continue to be entitled to the benefits of Section 6.3,
notwithstanding any such termination, with respect to events occurring prior to
such termination). For purposes of this Section 7.1, the Trustee shall not be
deemed to have knowledge of a Master Servicer Event of Default unless a
Responsible Officer of the Trustee assigned to and working in the Trustee's
Corporate Trust Office has actual knowledge thereof or unless written notice of
any event which is in fact such a Master Servicer Event of Default is received
by the Trustee and such notice references the Certificates, the Trust or this
Agreement. The Trustee shall promptly notify the Rating Agencies of the
occurrence of a Master Servicer Event of Default of which it has knowledge as
provided above.

                  Section 7.2 TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR.

                  On and after the time the Master Servicer receives a notice of
termination, the Trustee shall be the successor in all respects to the Master
Servicer (and, if applicable, the Securities Administrator) in its capacity as
Master Servicer (and, if applicable, the Securities Administrator) under this
Agreement and the transactions set forth or provided for herein, and all the
responsibilities, duties and liabilities relating thereto and arising thereafter
shall be assumed by the Trustee (except for any representations or warranties of
the Master Servicer under this Agreement, the responsibilities, duties and
liabilities contained in Section 2.3 and the obligation to deposit amounts in
respect of losses pursuant to Section 3.23(c)) by the terms and provisions
hereof including, without limitation, the Master Servicer's obligations to make
Advances no later than each Distribution Date pursuant to Section 4.7; provided,
however, that if the Trustee is prohibited by law or regulation from obligating
itself to make advances regarding delinquent mortgage loans, then the Trustee
shall not be obligated to make Advances pursuant to Section 4.7; and provided
further, that any failure to perform such duties or responsibilities caused by
the Master Servicer's failure to provide information required by Section 7.1
shall not be considered a default by the Trustee as successor to the Master
Servicer hereunder. As compensation therefor, the Trustee shall be entitled to
the Master Servicing Fee and all funds relating to the Loans, investment
earnings on the Distribution Account and all other remuneration to which the
Master Servicer would have been entitled if it had continued to act hereunder.
Notwithstanding the above and subject to the immediately following paragraph,
the Trustee may, if it shall be unwilling to so act, or shall, if it is unable
to so act or if it is prohibited by law from making advances regarding
delinquent mortgage loans or if the Holders of Certificates evidencing, in
aggregate, not less than 51% of the Certificate Principal Balance of the
Certificates so request in writing promptly appoint or petition a court of
competent jurisdiction to appoint, an established mortgage loan servicing
institution acceptable to each Rating Agency and having a net worth of not less
than $15,000,000, as the successor to the Master Servicer under this Agreement
in the assumption of all or any part of the responsibilities, duties or
liabilities of the Master Servicer under this Agreement.

                  No appointment of a successor to the Master Servicer (and, if
applicable, the Securities Administrator) under this Agreement shall be
effective until the assumption by the successor of all of the Master Servicer's
(and, if applicable, the Securities Administrator's) responsibilities, duties
and liabilities hereunder. In connection with such appointment and assumption
described herein, the Trustee may make such arrangements for the compensation of
such successor out of payments on Loans as it and such successor shall agree;
provided, however, that no such compensation shall be in excess of that
permitted the Master Servicer (and, if applicable, the Securities Administrator)
as such hereunder. The Depositor, the Trustee and such successor shall take such
action, consistent with this Agreement, as shall be necessary to effectuate any
such succession. Pending appointment of a successor to the Master Servicer (and,
if applicable, the Securities Administrator) under this Agreement, the Trustee
shall act in such capacity as hereinabove provided. The transition costs and
expenses incurred by the Trustee in connection with the replacement of the
Master Servicer (and, if applicable, the Securities Administrator) shall be
reimbursed out of the Trust.

                  Section 7.3 NOTIFICATION TO CERTIFICATEHOLDERS.

                           (a) Upon any termination of the Master Servicer
pursuant to Section 7.1 or any appointment of a successor to the Master Servicer
pursuant to Section 7.2, the Trustee shall give prompt written notice thereof to
the Certificateholders at their respective addresses appearing in the
Certificate Register.

                           (b) Not later than the later of 60 days after the
occurrence of any event, which constitutes or which, with notice or lapse of
time or both, would constitute a Master Servicer Event of Default or five days
after a Responsible Officer of the Trustee becomes aware of the occurrence of
such an event, the Trustee shall transmit by mail to all Holders of Certificates
notice of each such occurrence, unless such default or Master Servicer Event of
Default shall have been cured or waived.

                  Section 7.4 WAIVER OF MASTER SERVICER EVENTS OF DEFAULT.

                  The Holders evidencing, in aggregate, not less than 66-2/3% of
the aggregate Percentage Interests of all Certificates affected by any default
or Master Servicer Event of Default hereunder may waive such default or Master
Servicer Event of Default; PROVIDED, HOWEVER, that a default or Master Servicer
Event of Default under clause (vi) of Section 7.1 may be waived only by all of
the Holders of the related Regular Interest Certificates. Upon any such waiver
of a default or Master Servicer Event of Default, such default or Master
Servicer Event of Default shall cease to exist and shall be deemed to have been
remedied for every purpose hereunder. No such waiver shall extend to any
subsequent or other default or Master Servicer Event of Default or impair any
right consequent thereon except to the extent expressly so waived.

<PAGE>

                                  ARTICLE VIII
             CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

                  Section 8.1 DUTIES OF TRUSTEE AND SECURITIES ADMINISTRATOR.

                  The Trustee, prior to the occurrence of a Master Servicer
Event of Default and after the curing or waiver of all Master Servicer Events of
Default which may have occurred, and the Securities Administrator each undertake
to perform such duties and only such duties as are specifically set forth in
this Agreement as duties of the Trustee and the Securities Administrator,
respectively. During the continuance of a Master Servicer Event of Default, 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 its exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs. Any permissive right of the Trustee enumerated in
this Agreement shall not be construed as a duty.

                  Each of the Trustee and the Securities Administrator, upon
receipt of all resolutions, certificates, statements, opinions, reports,
documents, orders or other instruments furnished to it, which are specifically
required to be furnished pursuant to any provision of this Agreement, shall
examine them to determine whether they conform on their face to the requirements
of this Agreement. If any such instrument is found not to conform on its face to
the requirements of this Agreement, the Trustee or the Securities Administrator,
as the case may be, shall take such action as it deems appropriate to have the
instrument corrected, and if the instrument is not corrected to its
satisfaction, the Securities Administrator shall provide notice to the Trustee
thereof and the Trustee shall provide notice to the Certificateholders.

                  No provision of this Agreement shall be construed to relieve
the Trustee or the Securities Administrator from liability for its own negligent
action, its own negligent failure to act or its own misconduct; PROVIDED,
HOWEVER, that:

                                    (i) Prior to the occurrence of a Master
                  Servicer Event of Default, and after the curing or waiver of
                  all such Master Servicer Events of Default which may have
                  occurred with respect to the Trustee and at all times with
                  respect to the Securities Administrator, the duties and
                  obligations of the Trustee and the Securities Administrator
                  shall be determined solely by the express provisions of this
                  Agreement, neither the Trustee nor the Securities
                  Administrator shall be liable except for the performance of
                  such duties and obligations as are specifically set forth in
                  this Agreement, no implied covenants or obligations shall be
                  read into this Agreement against the Trustee or the Securities
                  Administrator and, in the absence of bad faith on the part of
                  the Trustee or the Securities Administrator, respectively, the
                  Trustee or the Securities Administrator, respectively, may
                  conclusively rely, as to the truth of the statements and the
                  correctness of the opinions expressed therein, upon any
                  certificates or opinions furnished to the Trustee or the
                  Securities Administrator, respectively, that conform to the
                  requirements of this Agreement;

                                    (ii) Neither the Trustee nor the Securities
                  Administrator shall be liable for an error of judgment made in
                  good faith by a Responsible Officer or Responsible Officers of
                  the Trustee or an officer or officers of the Securities
                  Administrator, respectively, unless it shall be proved that
                  the Trustee or the Securities Administrator, respectively, was
                  negligent in ascertaining the pertinent facts; and

                                    (iii) Neither the Trustee nor the Securities
                  Administrator shall be liable with respect to any action
                  taken, suffered or omitted to be taken by it in good faith in
                  accordance with the direction of the Holders of Certificates
                  evidencing, in aggregate, not less than 25% (or such other
                  percentage set forth in this Agreement) of the aggregate
                  Certificate Principal Balance of the Certificates, relating to
                  the time, method and place of conducting any proceeding for
                  any remedy available to the Trustee or the Securities
                  Administrator or exercising any trust or power conferred upon
                  the Trustee or the Securities Administrator under this
                  Agreement.

                  Section 8.2 CERTAIN MATTERS AFFECTING TRUSTEE AND SECURITIES
ADMINISTRATOR.

                           (a) Except as otherwise provided in Section 8.1:

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

                                    (ii) The Trustee and the Securities
                  Administrator may consult with counsel of its selection and
                  any advice of such counsel or any Opinion of Counsel shall be
                  full and complete authorization and protection in respect of
                  any action taken or suffered or omitted by it hereunder in
                  good faith and in accordance with such advice or Opinion of
                  Counsel;

                                    (iii) Neither the Trustee nor the Securities
                  Administrator shall be under any obligation to exercise any of
                  the trusts or powers vested in it by this Agreement or to
                  institute, conduct or defend any litigation hereunder or in
                  relation hereto at the request, order or direction of any of
                  the Certificateholders, pursuant to the provisions of this
                  Agreement, unless such Certificateholders shall have offered
                  to the Trustee or the Securities Administrator, as the case
                  may be, reasonable security or indemnity satisfactory to it
                  against the costs, expenses and liabilities which may be
                  incurred therein or thereby; nothing contained herein shall,
                  however, relieve the Trustee of the obligation, upon the
                  occurrence of a Master Servicer Event of Default (which has
                  not been cured or waived), to exercise such of the rights and
                  powers vested in it by this Agreement, and to 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;

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

                                    (v) Prior to the occurrence of a Master
                  Servicer Event of Default hereunder and after the curing or
                  waiver of all Master Servicer Events of Default which may have
                  occurred with respect to the Trustee and at all times with
                  respect to the Securities Administrator, neither the Trustee
                  nor the Securities Administrator shall be bound to make any
                  investigation into the facts or matters stated in any
                  resolution, certificate, statement, instrument, opinion,
                  report, notice, request, consent, order, approval, bond or
                  other paper or document, unless requested in writing to do so
                  by the Holders of Certificates evidencing, in aggregate, not
                  less than 25% of the Trust Fund; PROVIDED, HOWEVER, that if
                  the payment within a reasonable time to the Trustee or the
                  Securities Administrator of the costs, expenses or liabilities
                  likely to be incurred by it in the making of such
                  investigation is, in the opinion of the Trustee or the
                  Securities Administrator, as applicable, not reasonably
                  assured to the Trustee or the Securities Administrator by such
                  Certificateholders, the Trustee or the Securities
                  Administrator, as applicable, may require reasonable indemnity
                  satisfactory to it against such expense, or liability from
                  such Certificateholders as a condition to taking any such
                  action;

                                    (vi) The Trustee may execute any of the
                  trusts or powers hereunder or perform any duties hereunder
                  either directly or by or through agents or attorneys and the
                  Trustee shall not be responsible for any misconduct or
                  negligence on the part of any agent or attorney appointed with
                  due care by it hereunder;

                                    (vii) The Securities Administrator shall not
                  be liable for any loss resulting from the investment of funds
                  held in the Distribution Account at the direction of the
                  Master Servicer pursuant to Section 3.23(c);

                                    (viii) Neither the Trustee nor the
                  Securities Administrator shall be liable for any action taken,
                  suffered, or omitted to be taken 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;

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

                                    (x) The rights, privileges, protections,
                  immunities and benefits given to the Trustee, including,
                  without limitation, its right to be indemnified, are extended
                  to, and shall be enforceable by, each agent, custodian and
                  other Person employed to act hereunder.

                           (b) The Trustee is hereby directed by the Depositor
to execute the Cap Contracts on behalf of the Trust Fund in the form presented
to it by the Depositor and shall have no responsibility for the contents of the
Cap Contracts, including, without limitation, the representations and warranties
contained therein. Any funds payable by the Trustee under the Cap Contracts at
closing shall be paid by the Depositor. Notwithstanding anything to the contrary
contained herein or in the Cap Contracts, the Trustee shall not be required to
make any payments to the counterparty under the Cap Contracts.

                           (c) All rights of action under this Agreement or
under any of the Certificates, enforceable by the Trustee, may be enforced by it
without the possession of any of the Certificates, or the production thereof at
the trial or other proceeding relating thereto, and any such suit, action or
proceeding instituted by the Trustee shall be brought in its name for the
benefit of all the Holders of such Certificates, subject to the provisions of
this Agreement.

                  Section 8.3 TRUSTEE AND SECURITIES ADMINISTRATOR NOT LIABLE
FOR CERTIFICATES OR LOANS.

                  The recitals contained herein and in the Certificates (other
than the signature of the Securities Administrator, the authentication of the
Securities Administrator on the Certificates, the acknowledgments of the Trustee
contained in Article II and the representations and warranties of the Trustee in
Section 8.12) shall be taken as the statements of the Depositor and neither the
Trustee nor the Securities Administrator assumes any responsibility for their
correctness. Neither the Trustee nor the Securities Administrator makes any
representations or warranties as to the validity or sufficiency of this
Agreement (other than as specifically set forth in Section 8.12), the Cap
Contracts or of the Certificates (other than the signature of the Securities
Administrator and authentication of the Securities Administrator on the
Certificates) or of any Loan or related document. The Trustee shall not be
accountable for the use or application by the Depositor of any of the
Certificates or of the proceeds of such Certificates, or for the use or
application of any funds paid to the Depositor or the Master Servicer in respect
of the Loans or deposited in or withdrawn from the Distribution Account.

                  Section 8.4 TRUSTEE, MASTER SERVICER AND SECURITIES
ADMINISTRATOR MAY OWN CERTIFICATES.

                  Each of the Trustee, the Master Servicer and the Securities
Administrator in its individual capacity or any other capacity may become the
owner or pledgee of Certificates and may transact business with other interested
parties and their Affiliates with the same rights it would have if it were not
Trustee, Master Servicer or the Securities Administrator.

                  Section 8.5 FEES AND EXPENSES OF TRUSTEE AND SECURITIES
ADMINISTRATOR.

                  The fees of the Trustee and the Securities Administrator
hereunder and of Wells Fargo under the Custodial Agreement shall be paid in
accordance with a side letter agreement with the Master Servicer and at the sole
expense of the Master Servicer. In addition, the Trustee, the Securities
Administrator, the Custodian and any director, officer, employee or agent of the
Trustee, the Securities Administrator and the Custodian shall be indemnified by
the Trust and held harmless against any loss, liability or expense (including
reasonable attorney's fees and expenses) incurred by the Trustee or the
Securities Administrator in connection with any default administration to be
performed by the Trustee or the Securities Administrator pursuant to this
Agreement or other agreements related hereto and any claim or legal action or
any pending or threatened claim or legal action arising out of or in connection
with the acceptance or administration of its respective obligations and duties
under this Agreement or the Cap Contracts, including other agreements related
hereto, other than any loss, liability or expense (i) for which the Trustee is
indemnified by the Master Servicer, (ii) that constitutes a specific liability
of the Trustee or the Securities Administrator, respectively, pursuant to
Section 10.1(g) or (iii) any loss, liability or expense incurred by reason of
willful misfeasance, bad faith or gross negligence by the Trustee, or Securities
Administrator in the performance of its duties hereunder or by reason of
reckless disregard of its obligations and duties hereunder. The Master Servicer
agrees to indemnify the Trustee, from, and hold the Trustee harmless against,
any loss, liability or expense (including reasonable attorney's fees and
expenses) incurred by the Trustee by reason of the Master Servicer's willful
misfeasance, bad faith or gross negligence in the performance of its duties
under this Agreement or by reason of the Master Servicer's reckless disregard of
its obligations and duties under this Agreement. Such indemnity shall survive
the termination or discharge of this Agreement and the resignation or removal of
the Trustee. Any payment hereunder made by the Master Servicer to the Trustee
shall be from the Master Servicer's own funds, without reimbursement from REMIC
I therefor.

                  Section 8.6 ELIGIBILITY REQUIREMENTS FOR TRUSTEE AND
SECURITIES ADMINISTRATOR.

                  The Trustee and the Securities Administrator shall at all
times be a corporation or an association (other than the Depositor, the Seller,
the Master Servicer or any Affiliate of the foregoing) 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 at least $50,000,000 (or a member of a bank holding company whose
capital and surplus is at least $50,000,000) and subject to supervision or
examination by federal or state authority. If such corporation or association
publishes reports of conditions 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
association shall be deemed to be its combined capital and surplus as set forth
in its most recent report of conditions so published. In case at any time the
Trustee or the Securities Administrator, as applicable, shall cease to be
eligible in accordance with the provisions of this Section, the Trustee or the
Securities Administrator, as applicable, shall resign immediately in the manner
and with the effect specified in Section 8.7.

         Additionally, the Securities Administrator (i) may not be an
originator, Master Servicer, Servicer, the Depositor or an affiliate of the
Depositor unless the Securities Administrator is in an institutional trust
department, (ii) must be authorized to exercise corporate trust powers under the
laws of its jurisdiction of organization, and (iii) must be rated at least
"A/F1" by Fitch, if Fitch is a Rating Agency, or the equivalent rating by S&P
(or such rating acceptable to Fitch pursuant to a rating confirmation). If no
successor securities administrator shall have been appointed and shall have
accepted appointment within 60 days after Wells Fargo Bank, N.A., as Securities
Administrator, ceases to be the securities administrator pursuant to this
Section 8.06, then the Trustee shall perform the duties of the Securities
Administrator pursuant to this Agreement. The Trustee shall notify the Rating
Agencies of any change of Securities Administrator. Notwithstanding the above,
the Trustee may, if it shall be unwilling to so act, or shall, if it is unable
to so act, promptly appoint or petition a court of competent jurisdiction to
appoint, a Person that satisfies the eligibility criteria set forth herein as
the Trustee under this Agreement in the assumption of all or any part of the
responsibilities, duties or liabilities of the Trustee under this Agreement.
Wells Fargo Bank, N.A. or one of its Affiliates shall act as Securities
Administrator for so long as it is Master Servicer under this Agreement.

                  Section 8.7 RESIGNATION AND REMOVAL OF TRUSTEE AND SECURITIES
ADMINISTRATOR.

                  The Trustee and the Securities Administrator may at any time
resign (including, in the case of the Securities Administrator, in connection
with the resignation or termination of the Master Servicer) and be discharged
from the trust hereby created by giving written notice thereof to the Depositor,
to the Master Servicer, to the Securities Administrator (or the Trustee, if the
Securities Administrator resigns) and to the Certificateholders. Upon receiving
such notice of resignation, the Depositor shall promptly appoint a successor
trustee or successor securities administrator by written instrument, in
duplicate, which instrument shall be delivered to the resigning Trustee or
Securities Administrator, as applicable, and to the successor trustee or
successor securities administrator, as applicable. A copy of such instrument
shall be delivered to the Certificateholders, the Trustee, the Securities
Administrator and the Master Servicer by the Depositor. If no successor trustee
or successor securities administrator shall have been so appointed and have
accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Trustee or Securities Administrator, as the case may
be, may, at the expense of the Trust Fund, petition any court of competent
jurisdiction for the appointment of a successor trustee, successor securities
administrator, Trustee or Securities Administrator, as applicable.

                  If at any time the Trustee or the Securities Administrator
shall cease to be eligible in accordance with the provisions of Section 8.6 and
shall fail to resign after written request therefor by the Depositor, or if at
any time the Trustee or the Securities Administrator shall become incapable of
acting, or shall be adjudged bankrupt or insolvent, or a receiver of the Trustee
or the Securities Administrator or of its property shall be appointed, or any
public officer shall take charge or control of the Trustee or the Securities
Administrator or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Depositor may remove the Trustee or the
Securities Administrator, as applicable and appoint a successor trustee or
successor securities administrator, as applicable, by written instrument, in
duplicate, which instrument shall be delivered to the Trustee or the Securities
Administrator so removed and to the successor trustee or successor securities
administrator. A copy of such instrument shall be delivered to the
Certificateholders, the Trustee, the Securities Administrator and the Master
Servicer by the Depositor.

                  The Holders of Certificates evidencing, in aggregate, not less
than 51% of the Certificate Principal Balance of the Certificates, may at any
time remove the Trustee or the Securities Administrator and appoint a successor
trustee or successor securities administrator by written instrument or
instruments, in triplicate, signed by such Holders or their attorneys-in-fact
duly authorized, one complete set of which instruments shall be delivered to the
Depositor, one complete set to the Trustee or the Securities Administrator so
removed and one complete set to the successor so appointed. A copy of such
instrument shall be delivered to the Certificateholders, the Trustee (in the
case of the removal of the Securities Administrator), the Securities
Administrator (in the case of the removal of the Trustee) and the Master
Servicer by the Depositor. All costs and expenses incurred by the Trustee in
connection with its removal without cause hereunder shall be reimbursed to it by
the Trust Fund.

                  Any resignation or removal of the Trustee or the Securities
Administrator and appointment of a successor trustee or successor securities
administrator pursuant to any of the provisions of this Section shall not become
effective until acceptance of appointment by the successor trustee or successor
securities administrator, as applicable, as provided in Section 8.8.

                  Notwithstanding anything to the contrary contained herein, the
Master Servicer and the Securities Administrator shall at all times be the same
Person.

                  Section 8.8 SUCCESSOR TRUSTEE OR SECURITIES ADMINISTRATOR.

                  Any successor trustee or successor securities administrator
appointed as provided in Section 8.7 shall execute, acknowledge and deliver to
the Depositor and its predecessor trustee or predecessor securities
administrator an instrument accepting such appointment hereunder, and thereupon
the resignation or removal of the predecessor trustee or predecessor securities
administrator shall become effective and such successor trustee or successor
securities administrator without any further act, deed or conveyance, shall
become fully vested with all the rights, powers, duties and obligations of its
predecessor hereunder, with the like effect as if originally named as trustee or
securities administrator herein. The predecessor trustee or predecessor
securities administrator shall deliver to the successor trustee or successor
securities administrator all Loan Documents and related documents and statements
to the extent held by it hereunder, as well as all moneys, held by it hereunder,
and the Depositor and the predecessor trustee or predecessor securities
administrator shall execute and deliver such instruments and do such other
things as may reasonably be required for more fully and certainly vesting and
confirming in the successor trustee or successor securities administrator all
such rights, powers, duties and obligations.

                  No successor trustee or successor securities administrator
shall accept appointment as provided in this Section unless at the time of such
acceptance such successor trustee or successor securities administrator shall be
eligible under the provisions of Section 8.6 and the appointment of such
successor trustee or successor securities administrator shall not result in a
downgrading of any Class of Certificates by any Rating Agency, as evidenced by a
letter from each Rating Agency.

                  Upon acceptance of appointment by a successor trustee or
successor securities administrator as provided in this Section, the Depositor
shall mail notice of the succession of such trustee hereunder to all Holders of
the related Certificates at their addresses as shown in the Certificate
Register. If the Depositor fails to mail such notice within 10 days after
acceptance of appointment by the successor trustee or successor securities
administrator, the successor trustee or successor securities administrator shall
cause such notice to be mailed at the expense of the Depositor.

                  Section 8.9 MERGER OR CONSOLIDATION OF TRUSTEE OR SECURITIES
ADMINISTRATOR.

                  Any corporation or association into which the Trustee or the
Securities Administrator may be merged or converted or with which it may be
consolidated or any corporation or association resulting from any merger,
conversion or consolidation to which the Trustee or the Securities Administrator
shall be a party, or any corporation or association succeeding to the business
of the Trustee or the Securities Administrator shall be the successor of the
Trustee or the Securities Administrator hereunder, provided such corporation or
association shall be eligible under the provisions of Section 8.6, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, anything herein to the contrary notwithstanding.

                  Section 8.10 APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE.

                  Notwithstanding any other provisions hereof, at any time, for
the purpose of meeting any legal requirements of any jurisdiction in which any
part of REMIC I or property securing the same may at the time be located, the
Trustee shall have the power and shall execute and deliver all instruments to
appoint one or more Persons approved by the Trustee to act as co-trustee or
co-trustees, jointly with the Trustee, or separate trustee or separate trustees,
of all or any part of REMIC I, and to vest in such Person or Persons, in such
capacity, and for the benefit of the Holders of the Certificates, such title to
REMIC I, or any part thereof, and, subject to the other provisions of this
Section 8.10, such powers, duties, obligations, rights and trusts as the Trustee
may consider necessary or desirable. No co-trustee or separate trustee hereunder
shall be required to meet the terms of eligibility as a successor trustee under
Section 8.6 hereunder and no notice to Holders of Certificates of the
appointment of co-trustee(s) or separate trustee(s) shall be required under
Section 8.8 hereof.

                  In the case of any appointment of a co-trustee or separate
trustee pursuant to this Section 8.10 all rights, powers, duties and obligations
conferred or imposed upon the Trustee shall be conferred or imposed upon and
exercised or performed by the Trustee and such separate trustee or co-trustee
jointly, except to the extent that under any law of any jurisdiction in which
any particular act or acts are to be performed by the Trustee (whether as
Trustee hereunder or as successor to a defaulting Master Servicer hereunder),
the Trustee shall be incompetent or unqualified to perform such act or acts, in
which event such rights, powers, duties and obligations (including the holding
of title to REMIC I or any portion thereof in any such jurisdiction) shall be
exercised and performed by such separate trustee or co-trustee at the direction
of the Trustee.

                  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 or co-trustee shall refer to this Agreement and
the conditions of this Article VIII. Each separate trustee and co-trustee, upon
its acceptance of the trust conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Trustee, or separately, as may be provided therein, subject to all the
provisions of this Agreement, specifically including every provision of this
Agreement relating to the conduct of, affecting the liability of, or affording
protection to, the Trustee. Every such instrument shall be filed with the
Trustee.

                  Any separate trustee or co-trustee may, at any time,
constitute the Trustee, its agent or attorney-in-fact, with full power and
authority, to the extent not prohibited by law, to do any lawful act under or in
respect of this Agreement on its behalf and in its name. If any separate trustee
or co-trustee 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 or co-trustee.

                  Section 8.11 APPOINTMENT OF OFFICE OR AGENCY.

                  The Securities Administrator shall appoint an office or agency
in the City of Minneapolis located at Sixth Street and Marquette Avenue,
Minneapolis, Minnesota 55479, where the Certificates may be surrendered for
registration of transfer or exchange, and presented for final distribution and
where notices and demands to or upon the Securities Administrator in respect of
the Certificates and this Agreement may be served.

                  Section 8.12 REPRESENTATIONS AND WARRANTIES OF THE TRUSTEE.

                  The Trustee hereby represents and warrants to the Master
Servicer, the Securities Administrator and the Depositor as applicable, as of
the Closing Date, that:

                                    (i) It is a national banking association
                  duly organized, validly existing and in good standing under
                  the laws of the United States of America.

                                    (ii) The execution and delivery of this
                  Agreement by it, and the performance and compliance with the
                  terms of this Agreement by it, will not violate its articles
                  of incorporation or bylaws or constitute a default (or an
                  event which, with notice or lapse of time, or both, would
                  constitute a default) under, or result in the breach of, any
                  material agreement or other instrument to which it is a party
                  or which is applicable to it or any of its assets.

                                    (iii) It has the full power and authority to
                  enter into and consummate all transactions contemplated by
                  this Agreement, has duly authorized the execution, delivery
                  and performance of this Agreement, and has duly executed and
                  delivered this Agreement.

                                    (iv) This Agreement, assuming due
                  authorization, execution and delivery by the other parties
                  hereto, constitutes a valid, legal and binding obligation of
                  it, enforceable against it in accordance with the terms
                  hereof, subject to (A) applicable bankruptcy, insolvency,
                  receivership, reorganization, moratorium and other laws
                  affecting the enforcement of creditors' rights generally, and
                  (B) general principles of equity, regardless of whether such
                  enforcement is considered in a proceeding in equity or at law.

                                    (v) It is not in violation of, and its
                  execution and delivery of this Agreement and its performance
                  and compliance with the terms of this Agreement will not
                  constitute a violation of, any law, any order or decree of any
                  court or arbiter, or any order, regulation or demand of any
                  federal, state or local governmental or regulatory authority,
                  which violation, in its good faith and reasonable judgment, is
                  likely to affect materially and adversely either the ability
                  of it to perform its obligations under this Agreement or its
                  financial condition.

                                    (vi) No litigation is pending or, to the
                  best of its knowledge, threatened against it, which would
                  prohibit it from entering into this Agreement or, in its good
                  faith reasonable judgment, is likely to materially and
                  adversely affect either the ability of it to perform its
                  obligations under this Agreement or its financial condition.

<PAGE>

                                   ARTICLE IX
                                   TERMINATION

                  Section 9.1 TERMINATION UPON PURCHASE OR LIQUIDATION OF THE
LOANS.

                           (a) Subject to Section 9.2, the respective
obligations and responsibilities under this Agreement of the Depositor, the
Master Servicer, the Securities Administrator and the Trustee (other than the
obligations of the Master Servicer to the Securities Administrator and the
Trustee pursuant to Section 8.5 and of the Master Servicer to pay Compensating
Interest to the Securities Administrator and the Securities Administrator to
make payments in respect of REMIC I Regular Interests or the Classes of
Certificates as hereinafter set forth) shall terminate upon payment to the
Certificateholders and the deposit of all amounts held by or on behalf of the
Trustee and required hereunder to be so paid or deposited on the Distribution
Date coinciding with or following the earlier to occur of (i) the purchase by
the Master Servicer (as defined below) of all Loans and each REO Property
remaining in REMIC I and (ii) the final payment or other liquidation (or any
advance with respect thereto) of the last Loan or REO Property remaining in
REMIC I; PROVIDED, HOWEVER, that in no event shall the trust created hereby
continue beyond the earlier of (a) 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, living on the date hereof and
(b) the Last Scheduled Distribution Date. The purchase by the Master Servicer of
all Mortgage Loans and each REO Property remaining in REMIC I shall be at a
price (the "Termination Price") equal to the sum of (i) the greater of (A) the
aggregate Purchase Price of all the Mortgage Loans included in REMIC I, plus the
appraised value of each REO Property, if any, included in REMIC I, such
appraisal to be conducted by an appraiser mutually agreed upon by the Master
Servicer and the Trustee in their reasonable discretion and (B) the aggregate
fair market value of all of the assets of REMIC I (as determined by the Master
Servicer and the Trustee, as of the close of business on the third Business Day
next preceding the date upon which notice of any such termination is furnished
to Certificateholders pursuant to the third paragraph of this Section 9.1) plus
(ii) any amounts due the Interim Servicers, the Servicers and the Master
Servicer in respect of unpaid Servicing Fees, Master Servicing Compensation and
outstanding Monthly Advances and Servicing Advances.

                           (b) The Master Servicer shall have the right to
purchase all of the Loans and each REO Property remaining in REMIC I pursuant to
clause (i) of the preceding paragraph no later than the Determination Date in
the month immediately preceding the Distribution Date on which the Certificates
will be retired; PROVIDED, HOWEVER, that the Master Servicer may elect to
purchase all of the Loans and each REO Property remaining in REMIC I pursuant to
clause (i) above only if the aggregate Scheduled Principal Balance of the Loans
and each REO Property remaining in the Trust Fund at the time of such election
is less than or equal to 10% of the aggregate Scheduled Principal Balance of the
Loans as of the Cut-Off Date.

                           (c) Notice of the liquidation of the Certificates
shall be given promptly by the Securities Administrator by letter to the
Certificateholders mailed (a) in the event such notice is given in connection
with the purchase of the Loans and each REO Property by the Master Servicer, not
earlier than the 15th day and not later than the 25th day of the month next
preceding the month of the final distribution on the Certificates or (b)
otherwise during the month of such final distribution on or before the
Determination Date in such month, in each case specifying (i) the Distribution
Date upon which the Trust Fund will terminate and the final payment in respect
of REMIC I Regular Interests or the Certificates will be made upon presentation
and surrender of the related Certificates at the office of the Securities
Administrator therein designated, (ii) the amount of any such final payment,
(iii) that no interest shall accrue in respect of REMIC I Regular Interests or
Certificates from and after the Interest Accrual Period relating to the final
Distribution Date therefor and (iv) that the Record Date otherwise applicable to
such Distribution Date is not applicable, payments being made only upon
presentation and surrender of the Certificates at the office of the Securities
Administrator. In the event such notice is given in connection with the purchase
of all of the Loans and each REO Property remaining in the REMIC I by the Master
Servicer, the Master Servicer shall deliver to the Securities Administrator for
deposit in the Distribution Account not later than the last Business Day of the
month next preceding the month of the final distribution on the Certificates an
amount in immediately available funds equal to the above-described Termination
Price. The Securities Administrator shall remit (a) to the Master Servicer from
such funds deposited in the Distribution Account (i) any amounts which the
Master Servicer notifies it in writing that the Master Servicer would be
permitted to withdraw and retain from the Distribution Account pursuant to
Section 3.24 and (ii) any other amounts otherwise payable by the Securities
Administrator to the Master Servicer from amounts on deposit in the Distribution
Account pursuant to the terms of this Agreement and notified by the Master
Servicer in writing and (b) to the Servicers, any amounts reimbursable to the
Servicers pursuant to the Servicing Agreements, in each case prior to making any
final distributions pursuant to Section 9.1(d) below. Upon certification to the
Trustee and the Securities Administrator by a Servicing Officer of the making of
such final deposit, the Trustee shall promptly release to the Master Servicer
the Mortgage Files for the remaining Loans, and the Trustee shall execute all
assignments, endorsements and other instruments necessary to effectuate such
transfer in each case without recourse, representation or warranty.

                           (d) Upon presentation of the Certificates by the
Certificateholders on the final Distribution Date, the Securities Administrator
shall distribute to each Certificateholder so presenting and surrendering its
Certificates the amount otherwise distributable on such Distribution Date in
accordance with Section 4.1 in respect of the Certificates so presented and
surrendered. Any funds not distributed to any Holder or Holders of Certificates
being retired on such Distribution Date because of the failure of such Holder or
Holders to tender their Certificates shall, on such date, be set aside and held
in trust and credited to the account of the appropriate non-tendering Holder or
Holders. If any Certificates as to which notice has been given pursuant to this
Section 9.1 shall not have been surrendered for cancellation within six months
after the time specified in such notice, the Securities Administrator shall mail
a second notice to the remaining non-tendering Certificateholders to surrender
their Certificates for cancellation in order to receive the final distribution
with respect thereto. If within one year after the second notice all such
Certificates shall not have been surrendered for cancellation, the Securities
Administrator shall, directly or through an agent, mail a final notice to the
remaining non-tendering Certificateholders concerning surrender of their
Certificates. The costs and expenses of maintaining the funds in trust and of
contacting such Certificateholders shall be paid out of the assets remaining in
the trust funds. If within one year after the final notice any such Certificates
shall not have been surrendered for cancellation, the Securities Administrator
shall pay to the Depositor all such amounts, and all rights of non-tendering
Certificateholders in or to such amounts shall thereupon cease. No interest
shall accrue or be payable to any Certificateholder on any amount held in trust
by the Securities Administrator as a result of such Certificateholder's failure
to surrender its Certificate(s) for final payment thereof in accordance with
this Section 9.1. Any such amounts held in trust by the Securities Administrator
shall be held in an Eligible Account and the Securities Administrator may direct
any depository institution maintaining such account to invest the funds in one
or more Eligible Investments. All income and gain realized from the investment
of funds deposited in such accounts held in trust by the Securities
Administrator shall be for the benefit of the Securities Administrator;
PROVIDED, HOWEVER, that the Securities Administrator shall deposit in such
account the amount of any loss of principal incurred in respect of any such
Eligible Investment made with funds in such accounts immediately upon the
realization of such loss.

                  Immediately following the deposit of funds in trust hereunder
in respect of the Certificates, the Trust Fund shall terminate.

                  Section 9.2 ADDITIONAL TERMINATION REQUIREMENTS.

                           (a) In the event that the Master Servicer purchases
all the Loans and each REO Property or the final payment on or other liquidation
of the last Loan or REO Property remaining in REMIC I pursuant to Section 9.1,
the Trust Fund shall be terminated in accordance with the following additional
requirements:

                                    (i) The Securities Administrator shall
                  specify the first day in the 90-day liquidation period in a
                  statement attached to each REMIC's final Tax Return pursuant
                  to Treasury regulation Section 1.860F-1 and shall satisfy all
                  requirements of a qualified liquidation under Section 860F of
                  the Code and any regulations thereunder, as evidenced by an
                  Opinion of Counsel obtained by and at the expense of the
                  Master Servicer;

                                    (ii) During such 90-day liquidation period
                  and, at or prior to the time of making of the final payment on
                  the Certificates, the Securities Administrator shall sell all
                  of the assets of REMIC I to the Master Servicer for cash; and

                                    (iii) At the time of the making of the final
                  payment on the Certificates, the Securities Administrator
                  shall distribute or credit, or cause to be distributed or
                  credited, to the Holders of the Residual Certificates all cash
                  on hand in the Trust Fund (other than cash retained to meet
                  claims), and the Trust Fund shall terminate at that time.

                           (b) At the expense of the requesting Master Servicer
(or, if the Trust Fund is being terminated as a result of the occurrence of the
event described in clause (ii) of the first paragraph of Section 9.1, at the
expense of the Trust Fund), the Master Servicer shall prepare or cause to be
prepared the documentation required in connection with the adoption of a plan of
liquidation of each REMIC pursuant to this Section 9.2.

                           (c) By their acceptance of Certificates, the Holders
thereof hereby agree to authorize the Securities Administrator to specify the
90-day liquidation period for each REMIC, which authorization shall be binding
upon all successor Certificateholders.

<PAGE>

                                   ARTICLE X
                                REMIC PROVISIONS

                  Section 10.1 REMIC ADMINISTRATION.

                           (a) The Trustee shall elect to treat each REMIC as a
REMIC under the Code and, if necessary, under applicable state law and as
instructed by the Securities Administrator. Each such election shall be made by
the Securities Administrator on Form 1066 or other appropriate federal tax or
information return or any appropriate state return for the taxable year ending
on the last day of the calendar year in which the Certificates are issued. For
the purposes of the REMIC election in respect of REMIC I, the REMIC I Regular
Interests shall be designated as the Regular Interests in REMIC I and Component
R-1 shall be designated as the Residual Interest in REMIC I. For the purposes of
the REMIC election in respect of REMIC II, the REMIC II Regular Interests shall
be designated as the Regular Interests in REMIC II and Component R-2 shall be
designated as the Residual Interest in REMIC II. The Class I-A-1, Class I-A-2,
Class I-A-3, Class I-A-4, Class I-A-5, Class I-A-6, Class I-A-7, Class II-A-1,
Class II-A-2, Class II-A-3, Class M, Class B-1, Class B-2, Class B-3, Class B-4
and Class B-5 Certificates shall be designated as the Regular Interests in REMIC
III and Component R-3 shall be designated as the Residual Interest in REMIC III.
The Trustee shall not permit the creation of any "interests" in each Trust REMIC
(within the meaning of Section 860G of the Code) other than the REMIC I Regular
Interests, the REMIC II Regular Interests and the interests represented by the
Certificates.

                           (b) The Closing Date is hereby designated as the
"Startup Day" of each REMIC created hereunder within the meaning of Section
860G(a)(9) of the Code.

                           (c) The Securities Administrator shall be reimbursed
for any and all expenses relating to any tax audit of the Trust Fund (including,
but not limited to, any professional fees or any administrative or judicial
proceedings with respect to each REMIC that involve the Internal Revenue Service
or state tax authorities), including the expense of obtaining any tax related
Opinion of Counsel except as specified herein. The Securities Administrator, as
agent for each REMIC's tax matters person shall (i) act on behalf of the Trust
Fund in relation to any tax matter or controversy involving any REMIC and (ii)
represent the Trust Fund in any administrative or judicial proceeding relating
to an examination or audit by any governmental taxing authority with respect
thereto. The holder of the largest Percentage Interest of each Class of Residual
Certificates shall be designated, in the manner provided under Treasury
regulations section 1.860F-4(d) and Treasury regulations section
301.6231(a)(7)-1, as the tax matters person of the related REMIC created
hereunder. By their acceptance thereof, the holder of the largest Percentage
Interest of the Residual Certificates hereby agrees to irrevocably appoint the
Securities Administrator or an Affiliate as its agent to perform all of the
duties of the tax matters person for the Trust Fund.

                           (d) The Securities Administrator shall prepare and
file and the Trustee shall sign all of the Tax Returns in respect of each REMIC
created hereunder. The expenses of preparing and filing such returns shall be
borne by the Securities Administrator without any right of reimbursement
therefor.

                           (e) The Securities Administrator shall perform on
behalf of each REMIC all reporting and other tax compliance duties that are the
responsibility of such REMIC under the Code, the REMIC Provisions or other
compliance guidance issued by the Internal Revenue Service or any state or local
taxing authority. Among its other duties, as required by the Code, the REMIC
Provisions or other such compliance guidance, the Securities Administrator shall
provide (i) to any Transferor of a Residual Certificate such information as is
necessary for the application of any tax relating to the transfer of a Residual
Certificate to any Person who is not a Permitted Transferee upon receipt of
additional reasonable compensation, (ii) to the Certificateholders such
information or reports as are required by the Code or the REMIC Provisions
including reports relating to interest, original issue discount and market
discount or premium (using the Prepayment Assumption as required) and (iii) to
the Internal Revenue Service the name, title, address and telephone number of
the person who shall serve as the representative of each REMIC. The Depositor
shall provide or cause to be provided to the Securities Administrator, within
ten (10) days after the Closing Date, all information or data that the
Securities Administrator reasonably determines to be relevant for tax purposes
as to the valuations and issue prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption and projected cash flow of
the Certificates.

                           (f) To the extent in the control of the Trustee or
the Securities Administrator, each such Person (i) shall take such action and
shall cause each REMIC created hereunder to take such action as shall be
necessary to create or maintain the status thereof as a REMIC under the REMIC
Provisions, (ii) shall not take any action, cause the Trust Fund 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 (A) endanger
the status of each REMIC as a REMIC or (B) result in the imposition of a tax
upon the Trust Fund (including but not limited to the tax on prohibited
transactions as defined in Section 860F(a)(2) of the Code and the tax on
contributions to a REMIC set forth in Section 860G(d) of the Code) (either such
event, an "Adverse REMIC Event") unless such action or inaction is permitted
under this Agreement or the Trustee and the Securities Administrator have
received an Opinion of Counsel, addressed to them (at the expense of the party
seeking to take such action but in no event at the expense of the Trustee or the
Securities Administrator) to the effect that the contemplated action will not,
with respect to any REMIC, endanger such status or result in the imposition of
such a tax, nor (iii) shall the Securities Administrator take or fail to take
any action (whether or not authorized hereunder) as to which the Trustee has
advised it in writing that it has received an Opinion of Counsel to the effect
that an Adverse REMIC Event could occur with respect to such action; provided
that the Securities Administrator may conclusively rely on such Opinion of
Counsel and shall incur no liability for its action or failure to act in
accordance with such Opinion of Counsel. In addition, prior to taking any action
with respect to any REMIC or the respective assets of each, or causing any REMIC
to take any action, which is not contemplated under the terms of this Agreement,
the Securities Administrator shall consult with the Trustee or its designee, in
writing, with respect to whether such action could cause an Adverse REMIC Event
to occur with respect to any REMIC, and the Securities Administrator shall not
take any such action or cause any REMIC to take any such action as to which the
Trustee has advised it in writing that an Adverse REMIC Event could occur. The
Trustee may consult with counsel to make such written advice, and the cost of
same shall be borne by the party seeking to take the action not permitted by
this Agreement, but in no event shall such cost be an expense of the Trustee.

                           (g) In the event that any tax is imposed on
"prohibited transactions" of any REMIC created hereunder as defined in Section
860F(a)(2) of the Code, on the "net income from foreclosure property" of such
REMIC as defined in Section 860G(c) of the Code, on any contributions to any
such REMIC after the Startup Day therefor pursuant to Section 860G(d) of the
Code, or any other tax is imposed by the Code or any applicable provisions of
state or local tax laws, such tax shall be charged (i) to the Trustee pursuant
to Section 10.3 hereof, if such tax arises out of or results from a breach by
the Trustee of any of its obligations under this Article X, (ii) to the
Securities Administrator pursuant to Section 10.3 hereof, if such tax arises out
of or results from a breach by the Securities Administrator of any of its
obligations under this Article X, (iii) to the Master Servicer pursuant to
Section 10.3 hereof, if such tax arises out of or results from a breach by the
Master Servicer of any of its obligations under Article III or under this
Article X, or (iv) against amounts on deposit in the Distribution Account and
shall be paid by withdrawal therefrom.

                           (h) The Trustee and the Securities Administrator
shall, for federal income tax purposes, maintain books and records with respect
to each REMIC on a calendar year and on an accrual basis.

                           (i) Following the Startup Day, the Trustee shall not
accept any contributions of assets to any REMIC other than in connection with
any Substitute Loan delivered in accordance with Section 2.3 unless it shall
have received an Opinion of Counsel addressed to it to the effect that the
inclusion of such assets in the Trust Fund will not cause the related REMIC to
fail to qualify as a REMIC at any time that any Certificates are outstanding or
subject such REMIC to any tax under the REMIC Provisions or other applicable
provisions of federal, state and local law or ordinances.

                           (j) Neither the Trustee nor the Securities
Administrator shall knowingly enter into any arrangement by which any REMIC will
receive a fee or other compensation for services nor permit any REMIC to receive
any income from assets other than "qualified mortgages" as defined in Section
860G(a)(3) of the Code or "permitted investments" as defined in Section
860G(a)(5) of the Code.

                           (k) The Securities Administrator shall apply for an
employer identification number with the Internal Revenue Service via a Form SS-4
or other comparable method for each REMIC. In connection with the foregoing, the
Securities Administrator shall provide the name and address of the person who
can be contacted to obtain information required to be reported to the holders of
Regular Interests in each REMIC as required by IRS Form 8811.

                  Section 10.2 PROHIBITED TRANSACTIONS AND ACTIVITIES.

                  None of the Depositor, the Securities Administrator, the
Master Servicer or the Trustee shall sell, dispose of or substitute for any of
the Loans (except in connection with (i) the foreclosure of a Loan, including
but not limited to, the acquisition or sale of a Mortgaged Property acquired by
deed in lieu of foreclosure, (ii) the bankruptcy of REMIC I (iii) the
termination of REMIC I pursuant to Article IX of this Agreement, (iv) a
substitution pursuant to Article II of this Agreement or (v) a purchase of Loans
pursuant to Article II of this Agreement), nor acquire any assets for any REMIC
(other than REO Property acquired in respect of a defaulted Loan), nor sell or
dispose of any investments in the related Distribution Account for gain, nor
accept any contributions to any REMIC after the Closing Date (other than a
Substitute Loan delivered in accordance with Section 2.3), unless it has
received an Opinion of Counsel, addressed to the Trustee (at the expense of the
party seeking to cause such sale, disposition, substitution, acquisition or
contribution but in no event at the expense of the Trustee) that such sale,
disposition, substitution, acquisition or contribution will not (a) affect
adversely the status of any REMIC as a REMIC or (b) cause any REMIC to be
subject to a tax on "prohibited transactions" or "contributions" pursuant to the
REMIC Provisions.

                  Section 10.3 INDEMNIFICATION.

                           (a) The Trustee agrees to be liable for any taxes and
costs incurred by the Trust Fund, the Depositor, the Securities Administrator or
the Master Servicer including, without limitation, any reasonable attorneys fees
imposed on or incurred by the Trust Fund, the Depositor, the Securities
Administrator or the Master Servicer as a result of the Trustee's failure to
perform its covenants set forth in this Article X in accordance with the
standard of care of the Trustee set forth in this Agreement.

                           (b) The Master Servicer agrees to indemnify the Trust
Fund, the Depositor and the Trustee for any taxes and costs including, without
limitation, any reasonable attorneys' fees imposed on or incurred by the Trust
Fund, the Depositor or the Trustee, as a result of the Master Servicer's failure
to perform its covenants set forth in Article III in accordance with the
standard of care of the Master Servicer set forth in this Agreement.

                           (c) The Securities Administrator agrees to be liable
for any taxes and costs incurred by the Trust Fund, the Depositor or the Trustee
including, without limitation, any reasonable attorneys fees imposed on or
incurred by the Trust Fund, the Depositor or the Trustee as a result of the
Securities Administrator's failure to perform its covenants set forth in this
Article X in accordance with the standard of care of the Securities
Administrator set forth in this Agreement.

<PAGE>

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

                  Section 11.1 AMENDMENT. This Agreement may be amended from
time to time by the Depositor, the Master Servicer, the Securities Administrator
and the Trustee, without the consent of any of the Certificateholders, (a) to
cure any ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein, or to make any other provisions
with respect to matters or questions arising under this Agreement, (b) to
modify, eliminate or add to any provisions to such extent as shall be necessary
to maintain the qualification of the Trust Fund as two REMICs at all times that
any Certificates are outstanding, provided, that such action shall not, as
evidenced by an Opinion of Counsel addressed and delivered to the Trustee,
adversely affect in any material respect the interests of any Certificateholder.
No amendment shall be deemed to adversely affect in any material respect the
interests of any Certificateholder who shall have consented thereto, and no
Opinion of Counsel shall be required to address the effect of any such amendment
on any such consenting Certificateholder.

                  This Agreement may also be amended from time to time by the
Depositor, the Master Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of Certificates evidencing, in aggregate, not
less than 66-2/3% of the Trust Fund for the purpose of adding any provisions or
changing in any manner or eliminating any of the provisions of this Agreement or
of modifying in any manner the rights of the Holders of Certificates; provided,
however, that no such amendment shall (a) reduce in any manner the amount of, or
delay the timing of, payments received on Loans which are required to be
distributed in respect of any Certificate without the consent of the Holder of
such Certificate; (b) adversely affect in any material respect the interest of
the Holders of the Senior Certificates (other than the Class R Certificates) in
a manner other than as described in (a) above without the consent of the Holders
of such Senior Certificates (other than the Class R Certificates) aggregating
not less than 66-2/3% of the aggregate Percentage Interest evidenced by all
Senior Certificates (other than the Class R Certificates); (c) adversely affect
in any material respect the interest of the Holders of the Subordinate
Certificates in a manner other than as described in clause (a) above without the
consent of the Holders of Subordinate Certificates aggregating not less than
66-2/3% of the aggregate Percentage Interest evidenced by all Subordinate
Certificates; (d) adversely affect in any material respect the interest of the
Class R Certificateholder without the consent of the Holder of the Class R
Certificates; (e) change in any material respect the rights and obligations of
the Master Servicer or successor Master Servicer under this Agreement without
the prior written consent of such party; or (f) reduce the aforesaid percentage
of the Certificates the Holders of which are required to consent to any such
amendments without the consent of the Holders of all Certificates then
outstanding; provided, that for the purposes of this Agreement, the Holder of
the Class R Certificate shall have no right to vote at all times that any Senior
Certificates (other than the Class R Certificates), or Subordinate Certificates
are outstanding if such amendment relates to the modification, elimination or
addition of any provision necessary to maintain the qualification of the Trust
Fund as three REMICs. Without limiting the generality of the foregoing, any
amendment to this Agreement required in connection with the compliance with or
the clarification of any reporting obligations described in Section 3.18 hereof
shall not require the consent of any Certificateholder or any Opinion of Counsel
or Rating Agency confirmation.

                  Notwithstanding any contrary provision of this Agreement, the
Trustee shall not consent to any amendment to this Agreement unless it shall
have first received an Opinion of Counsel addressed to it to the effect that
such amendment will not cause any of REMIC I, REMIC II or REMIC III of the Trust
Fund to fail to qualify as a REMIC at any time that any REMIC Regular Interests
or Regular Interest Certificates are outstanding.

                  As soon as practicable after the execution of any such
amendment, the Trustee shall furnish written notification of the substance of
such amendment to each Certificateholder and Rating Agency.

                  It shall not be necessary for the consent of the
Certificateholders under this Section 11.1 to approve the particular form of any
proposed amendment, but it shall be sufficient if such consent shall approve the
substance thereof. The manner of obtaining such consents and of evidencing the
authorization of the execution thereof by Certificateholders shall be subject to
such reasonable regulations as the Trustee may prescribe.

                  Prior to the execution of any amendment to this Agreement, the
Trustee shall be entitled to receive and rely upon an Opinion of Counsel
addressed to it stating that the execution of such amendment is authorized or
permitted by this Agreement. The Trustee may, but shall not be obligated to,
enter into any such amendment which affects the Trustee's own rights, duties or
immunities under this Agreement.

                  Section 11.2 RECORDATION OF AGREEMENT; COUNTERPARTS. To the
extent permitted by applicable law, this Agreement (or an abstract hereof, if
acceptable by the applicable recording office) is subject to recordation in all
appropriate public offices for real property records in all the counties or
other comparable jurisdictions in which any or all of the properties subject to
the Mortgages are situated, and in any other appropriate public recording office
or elsewhere, such recordation to be effected by the Depositor at the expense of
the Certificateholders, but only after the Depositor has delivered to the
Trustee an Opinion of Counsel to the effect that such recordation materially and
beneficially affects the interests of the Certificateholders.

                  For the purpose of facilitating the recordation of this
Agreement as herein provided and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and such counterparts shall
constitute but one and the same instrument.

                  Section 11.3 LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS. The
death or incapacity of any Certificateholder shall not operate to terminate this
Agreement or the Trust Fund, nor entitle such Certificateholder's legal
representatives or heirs to claim an accounting or take any action or proceeding
in any court for a partition or winding up of the Trust Fund, nor otherwise
affect the rights, obligations and liabilities of the parties hereto or any of
them.

                  Except as otherwise expressly provided herein no
Certificateholder, solely by virtue of its status as Certificateholder, shall
have any right to vote or in any manner otherwise control the operation and
management of the Trust Fund, or the obligations of the parties hereto, nor
shall anything herein set forth, or contained in the terms of the Certificates,
be construed so as to constitute the Certificateholders from time to time as
partners or members of an association, nor shall any Certificateholder be under
any liability to any third person by reason of any action taken by the parties
to this Agreement pursuant to any provision hereof.

                  No Certificateholder, 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 default
and of the continuance thereof, as hereinbefore provided, and unless all of the
Holders of Certificates evidencing, in aggregate, not less than 25% of the Trust
Fund 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 costs,
expenses and liabilities to be incurred therein or thereby, and the Trustee, for
60 days after its receipt of such notice, request and offer of indemnity, shall
have neglected or refused to institute any such action, suit or proceeding; it
being understood and intended, and being expressly covenanted by each
Certificateholder with every other Certificateholder and the Trustee, that no
one or more holders of Certificates 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 11.3, each and every
Certificateholder and the Trustee shall be entitled to such relief as can be
given either at law or in equity.

                  Section 11.4 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES OTHER THAN 5-1401 OF THE GENERAL OBLIGATIONS LAW),
AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                  Section 11.5 NOTICES. All demands, notices and communications
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered at or mailed by certified or registered mail, return
receipt requested (a) in the case of the Depositor, to 60 Wall Street, New York,
New York 10005, Attention: Deutsche Alt-A Securities, Inc., Mortgage Loan Trust,
Series 2005-2, (telecopy number:(212) 250-2500, or such other address or
telecopy number as may hereafter be furnished to the Master Servicer and the
Trustee in writing by the Depositor, (b) in the case of the Master Servicer and
the Securities Administrator, P.O. Box 98, Columbia, Maryland 21046 and for
overnight delivery to 9062 Old Annapolis Road, Columbia, Maryland 21045,
Attention: Deutsche Alt-A Securities, Inc., 2005-2 (telecopy number: (410)
715-2380), or such other address or telecopy number as may hereafter be
furnished to the Trustee and the Depositor in writing by the Master Servicer or
the Securities Administrator, and (c) in the case of the Trustee, at the
Corporate Trust Office or such other address or telecopy number as the Trustee
may hereafter furnish to the Master Servicer and the Depositor in writing by the
Trustee. Any notice required or permitted to be given to a Certificateholder
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 when mailed, whether or not the Certificateholder receives such
notice. A copy of any notice required to be telecopied hereunder also shall be
mailed to the appropriate party in the manner set forth above.

                  Section 11.6 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 11.7 NOTICE TO RATING AGENCIES.

                  The Trustee shall use its best efforts promptly to provide
notice to the Rating Agencies with respect to each of the following of which it
has actual knowledge:

                  1.       Any material change or amendment to this Agreement;

                  2.       The occurrence of any Master Servicer Event of
                           Default that has not been cured or waived;

                  3.       The resignation or termination of the Master Servicer
                           or the Trustee;

                  4.       The repurchase or substitution of Loans pursuant to
                           or as contemplated by Section 2.3;

                  5.       The final payment to the Holders of any Class of
                           Certificates;

                  6.       Any change in the location of the Distribution
                           Account; and

                  7.       Any event that would result in the inability of the
                           Trustee to make advances regarding delinquent Loans
                           pursuant to Section 7.2.

                  The Master Servicer shall make available to each Rating Agency
copies of the following:

                  1.       Each annual statement as to compliance described in
                           Section 3.16; and

                  2.       Each annual independent public accountants' servicing
                           report described in Section 3.17.

                  Any such notice pursuant to this Section 11.7 shall be in
writing and shall be deemed to have been duly given if personally delivered at
or mailed by first class mail, postage prepaid, or by express delivery service
to Fitch, Inc., 1 State Street Plaza, New York, New York 10004 and to Moody's
Investors Service, Inc., 99 Church Street, New York, New York 10007 or such
other addresses as the Rating Agencies may designate in writing to the parties
hereto.

                  Section 11.8 ARTICLE AND SECTION REFERENCES.

                  All article and section references used in this Agreement,
unless otherwise provided, are to articles and sections in this Agreement.

                  Section 11.9 GRANT OF SECURITY INTEREST.

                  It is the express intent of the parties hereto that the
conveyance of the Loans by the Depositor to the Trustee, on behalf of the Trust
Fund and for the benefit of the Certificateholders, be, and be construed as, a
sale of the Loans by the Depositor and not a pledge of the Loans to secure a
debt or other obligation of the Depositor. However, in the event that,
notwithstanding the aforementioned intent of the parties, the Loans are held to
be property of the Depositor, then, (a) it is the express intent of the parties
that such conveyance be deemed a pledge of the Loans by the Depositor to the
Trustee, on behalf of the Trust Fund and for the benefit of the related
Certificateholders, to secure a debt or other obligation of the Depositor and
(b)(1) this Agreement shall also be deemed to be a security agreement within the
meaning of Articles 8 and 9 of the Uniform Commercial Code as in effect from
time to time in the State of New York; (2) the conveyance provided for in
Section 2.1 hereof shall be deemed to be a grant by the Depositor to the
Trustee, on behalf of the Trust Fund and for the benefit of the related
Certificateholders, of a security interest in all of the Depositor's right,
title and interest in and to the Loans and all amounts payable to the holders of
the Loans in accordance with the terms thereof and all proceeds of the
conversion, voluntary or involuntary, of the foregoing into cash, instruments,
securities or other property, including without limitation all amounts, other
than investment earnings, from time to time held or invested in the Distribution
Account, whether in the form of cash, instruments, securities or other property;
(3) the obligations secured by such security agreement shall be deemed to be all
of the Depositor's obligations under this Agreement, including the obligation to
provide to the Certificateholders the benefits of this Agreement relating to the
Loans and the Trust Fund; and (4) notifications to persons holding such
property, and acknowledgments, receipts or confirmations from persons holding
such property, shall be deemed notifications to, or acknowledgments, receipts or
confirmations from, financial intermediaries, bailees or agents (as applicable)
of the Trustee for the purpose of perfecting such security interest under
applicable law. Accordingly, the Depositor hereby grants to the Trustee, on
behalf of the Trust Fund and for the benefit of the Certificateholders, a
security interest in the Loans and all other property described in clause (2) of
the preceding sentence, for the purpose of securing to the Trustee the
performance by the Depositor of the obligations described in clause (3) of the
preceding sentence. Notwithstanding the foregoing, the parties hereto intend the
conveyance pursuant to Section 2.1 to be a true, absolute and unconditional sale
of the Loans and assets constituting the Trust Fund by the Depositor to the
Trustee, on behalf of the Trust Fund and for the benefit of the
Certificateholders.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

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

                               DEUTSCHE ALT-A SECURITIES, INC., as Depositor

                               By:_____________________________________________
                               Name:
                               Its:

                               By:_____________________________________________
                               Name:
                               Its:

                               WELLS FARGO BANK, NATIONAL ASSOCIATION
                               as Master Servicer and Securities Administrator

                               By:_____________________________________________
                               Name:
                               Its:

                               HSBC BANK USA, NATIONAL ASSOCIATION,
                               not in its individual capacity but solely
                               as Trustee

                               By:_____________________________________________
                               Name:
                               Its:

<PAGE>

With Respect to Sections 6.7, 6.8 and 6.9:

THE MURRAYHILL COMPANY

By:____________________________________
Name:
Title:

<PAGE>

STATE OF                               )
                                       ) ss.:
COUNTY OF                              )

                  On the ___ day of February 2005, before me, a notary public in
and for said State, personally appeared _____________________ known to me to be
a _____________________ of Deutsche Alt-A Securities, Inc., one of the
corporations that executed the within instrument, and also known to me to be the
person who executed it on behalf of said corporation, and acknowledged to me
that such corporation executed the within instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                  Notary Public

[Notarial Seal]

<PAGE>

STATE OF          )
                  ) ss.:
COUNTY OF         )

                  On the ___ day of February 2005, before me, a notary public in
and for said State, personally appeared _____________________ known to me to be
a _____________________ of Deutsche Alt-A Securities, Inc., one of the
corporations that executed the within instrument, and also known to me to be the
person who executed it on behalf of said corporation, and acknowledged to me
that such corporation executed the within instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                  Notary Public

[Notarial Seal]

<PAGE>

STATE OF          )
                  ) ss.:
COUNTY OF         )

                  On the __ day of February 2005, before me, a notary public in
and for said State, personally appeared _________________________ known to me to
be a ___________________ of Wells Fargo Bank, National Association, one of the
corporations that executed the within instrument, and also known to me to be the
person who executed it on behalf of said corporation, and acknowledged to me
that such corporation executed the within instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                  Notary Public

[Notarial Seal]

<PAGE>

STATE OF          )
                  ) ss.:
COUNTY OF         )

                  On the ___ day of February 2005, before me, a notary public in
and for said State, personally appeared _______________ known to me to be a
_______________ of HSBC Bank USA, National Association, one of the corporations
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                  Notary Public

[Notarial Seal]

                                   EXHIBIT A-1

                     FORM OF CLASS I-A-[1][3][5] CERTIFICATE

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 (THE "CODE").

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
         ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
         REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
         COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR
         OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
         SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

         THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED
         BY THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO
         AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY,
         FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE
         PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE
         DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY
         ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE
         SECURITIES ADMINISTRATOR NAMED HEREIN.

<PAGE>

<TABLE>
<CAPTION>

<S>                                                           <C>
DBALT Series 2005-2, Class I-A-[1][3][5]                      Aggregate Certificate Principal Balance of the
                                                              I-A-[1][3][5] Certificates as of the Issue Date:   $

Pass-Through Rate: Floating                                   Denomination:  $

Date of Pooling and Servicing Agreement and                   Master Servicer: Wells Fargo Bank, N.A.
Cut-off Date: February 1, 2005

First Distribution Date: March 25, 2005                       Trustee: HSBC Bank USA, National Association

No.__                                                         Issue Date: February 28, 2005
                                                              CUSIP:________________
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

       DEUTSCHE ALT-A SECURITIES, INC. MORTGAGE LOAN TRUST, SERIES 2005-2
                      ASSET BACKED PASS-THROUGH CERTIFICATE

evidencing a fractional undivided interest in the distributions allocable to the
Class I-A [1][3][5] Certificates with respect to a trust fund consisting
primarily of a pool of conventional one- to four-family fixed rate mortgage
loans (the "Mortgage Loans") secured by one- to four- family residences, units
in planned unit developments and individual condominium units (the "Trust Fund")
sold by DEUTSCHE ALT-A SECURITIES, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         DEUTSCHE ALT-A SECURITIES, INC., THE MASTER SERVICER, THE SECURITIES
         ADMINISTRATOR, THE TRUSTEE, ANY SERVICER OR ANY OF THEIR RESPECTIVE
         AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS
         ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that [Cede & Co.] is the registered owner of
the Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in certain assets of the
Trust Fund generally consisting of the Mortgage Loans and related assets sold by
Deutsche Alt-A Securities, Inc. (the "Depositor"). This Certificate is primarily
backed by the Group I Loans sold by DB Structured Products, Inc. to the
Depositor. Wells Fargo Bank, N.A. will act as master servicer of the Group I
Loans (the "Master Servicer," which term includes any successors thereto under
the Agreement referred to below). The Trust Fund was created pursuant to the
Pooling and Servicing Agreement dated as of the Cut-Off Date specified above
(the "Agreement"), among the Depositor, Wells Fargo Bank, N.A., as Master
Servicer and securities administrator (the "Securities Administrator") and HSBC
Bank USA, National Association as trustee (the "Trustee"), a summary of certain
of the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, capitalized terms used herein shall have the meaning ascribed to
them in the Agreement. This Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement, to which Agreement the Holder
of this Certificate by virtue of its acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following such 25th day (a "Distribution Date"),
commencing on the First Distribution Date specified above, to the Person in
whose name this Certificate is registered on the Business Day immediately
preceding such Distribution Date (the "Record Date"), in an amount equal to the
product of the Percentage Interest evidenced by this Certificate and the amount
required to be distributed to the Holders of Class I-A-[1][3][5] Certificates on
such Distribution Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Securities Administrator by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
I-A-[1][3][5] Certificates or otherwise by check mailed by first class mail to
the address of the Person entitled thereto, as such name and address shall
appear on the Certificate Register. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Securities
Administrator of the pendency of such distribution and only upon presentation
and surrender of this Certificate at the office or agency appointed by the
Securities Administrator for that purpose as provided in the Agreement.

                  The Pass-Through Rate with respect to the first Distribution
Date is equal to [[for the Class I-A-1 Certificates] 3.00% per annum and with
respect to any Distribution Date thereafter shall be a rate per annum equal to
the lesser of (a) One-Month LIBOR plus 0.40% per annum and (b) the weighted
average of the Net Mortgage Rates of the Group I Loans for the related
Distribution Date.] [[for the Class I-A-3 Certificates] 2.95% per annum and with
respect to any Distribution Date thereafter shall be a rate per annum equal to
the least of (a) One-Month LIBOR plus 0.35% per annum, (b) the weighted average
of the Net Mortgage Rates of the Group I Loans for the related Distribution Date
and (c) 6.25% per annum, with respect to the first twelve Distribution Dates and
8.50% per annum, with respect to any Distribution Date thereafter.] [[for the
Class I-A-5 Certificates] 3.10% per annum, and as to any Distribution Date
thereafter shall be a per annum rate equal to the lesser of (a) One-Month LIBOR
plus 0.50% per annum and (b) the weighted average of the Net Mortgage Rates of
the Group I Loans for the related Distribution Date.]

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificate of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans and payments received
pursuant to the related Cap Contract, all as more specifically set forth herein
and in the Agreement. As provided in the Agreement, withdrawals from the
Collection Account and the Distribution Account may be made from time to time
for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee, the Securities
Administrator and the rights of the Certificateholders under the Agreement at
any time by the Depositor, the Master Servicer, the Trustee and the Securities
Administrator with the consent of the Holders of Certificates evidencing, in the
aggregate, not less than 66-2/3% Percentage Interests of all Certificates. Any
such consent by the Holder of this Certificate shall be conclusive and binding
on such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator duly executed by, the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  No service charge will be made for any such registration of
transfer or exchange of Certificates, but the Securities Administrator may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer or exchange of
Certificates.

                  The Depositor, the Master Servicer, the Trustee, the
Securities Administrator and any agent of the Depositor, the Master Servicer,
the Trustee or the Securities Administrator may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee or the Securities Administrator
nor any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Securities Administrator and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement of all the
Mortgage Loans and all property acquired in respect of such Mortgage Loans. The
Agreement permits, but does not require, the party designated in the Agreement
to purchase all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than or equal to 10% of the
aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Securities Administrator, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:
                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:
                                              ----------------------------------
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class I-A-[1][3][5] Certificates referred
to in the within-mentioned Agreement.

                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:
                                              ----------------------------------
                                                      Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>

<S>                        <C>                                <C>                       <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -             CUSTODIAN
                                                                                          -----------------
                                                                                        (Cust)   (Minor)
         TEN ENT -         as tenants by the entireties                                 under Uniform Gifts to
                                                                                        Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto___________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following
address:_______________________________________________________________________
_______________________________________________________________________________

Dated:

                                          _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________>

         This information is provided by ______________________________________,
the assignee named above, or ____________________________________, as its agent.

<PAGE>

                                   EXHIBIT A-2

                     FORM OF CLASS I-A-[2][4][6] CERTIFICATE

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 (THE "CODE").

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
         ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
         REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
         COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR
         OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
         SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

<PAGE>

<TABLE>
<CAPTION>

<S>                                               <C>
DBALT Series 2005-2, Class I-A-[2][4][6]          Initial Notional Amount of the I-A-[2][4][6]
                                                  Certificates as of the Issue Date:

Pass-Through Rate: Variable                       Master Servicer: Wells Fargo Bank, N.A.

Date of Pooling and Servicing Agreement and       Trustee: HSBC Bank USA, National Association
Cut-off Date: February 1, 2005

First Distribution Date: March 25, 2005           Issue Date: February 28, 2005

No.__                                             CUSIP:________________
</TABLE>

       DEUTSCHE ALT-A SECURITIES, INC. MORTGAGE LOAN TRUST, SERIES 2005-2
                      ASSET BACKED PASS-THROUGH CERTIFICATE

evidencing a fractional undivided interest in the distributions allocable to the
Class I-A-[2][4][6] Certificates with respect to a trust fund consisting
primarily of a pool of conventional one- to four-family fixed rate mortgage
loans (the "Mortgage Loans") secured by one- to four- family residences, units
in planned unit developments and individual condominium units (the "Trust Fund")
sold by DEUTSCHE ALT-A SECURITIES, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         DEUTSCHE ALT-A SECURITIES, INC., THE MASTER SERVICER, THE SECURITIES
         ADMINISTRATOR, THE TRUSTEE, ANY SERVICER OR ANY OF THEIR RESPECTIVE
         AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS
         ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that [Cede & Co.] is the registered owner of
the Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in certain assets of the
Trust Fund generally consisting of the Mortgage Loans and related assets sold by
Deutsche Alt-A Securities, Inc. (the "Depositor"). This Certificate is primarily
backed by the Group I Loans sold by DB Structured Products, Inc. to the
Depositor. Wells Fargo Bank, N.A. will act as master servicer of the Mortgage
Loans (the "Master Servicer," which term includes any successors thereto under
the Agreement referred to below). The Trust Fund was created pursuant to the
Pooling and Servicing Agreement dated as of the Cut-Off Date specified above
(the "Agreement"), among the Depositor, Wells Fargo Bank, N.A., as Master
Servicer and securities administrator (the "Securities Administrator") and HSBC
Bank USA, National Association as trustee (the "Trustee"), a summary of certain
of the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, capitalized terms used herein shall have the meaning ascribed to
them in the Agreement. This Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement, to which Agreement the Holder
of this Certificate by virtue of its acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following such 25th day (a "Distribution Date"),
commencing on the First Distribution Date specified above, to the Person in
whose name this Certificate is registered on the Business Day immediately
preceding such Distribution Date (the "Record Date"), in an amount equal to the
product of the Percentage Interest evidenced by this Certificate and the amount
required to be distributed to the Holders of Class I-A-[2][4][6] Certificates on
such Distribution Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Securities Administrator by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date, or otherwise by check mailed by
first class mail to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register. Notwithstanding the above, the
final distribution on this Certificate will be made after due notice by the
Securities Administrator of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Securities Administrator for that purpose as provided in the Agreement.

                  The Pass-Through Rate with respect to the first Distribution
Date shall be equal to [[for the Class I-A-2 Certificates] [2.9447% per annum,
and with respect to any Distribution Date thereafter shall be a per annum rate
equal to the excess, if any, of the weighted average of the Net Mortgage Rates
of the Group I Loans for the related Distribution Date over One-Month LIBOR plus
0.40% per annum.] [[for the Class I-A-4 Certificates] [2.9947% per annum, and
with respect to any Distribution Date thereafter shall be a per annum rate equal
to the excess, if any, of the weighted average of the Net Mortgage Rates of the
Group I Loans for the related Distribution Date over the lesser of (i) One-Month
LIBOR plus 0.35% per annum and (ii) 6.25% per annum, with respect to the first
twelve Distribution Dates and 8.50% per annum, with respect to any Distribution
Date thereafter.] [[for the Class I-A-6 Certificates] [2.8447% per annum, and
with respect to any Distribution Date thereafter shall be a per annum rate equal
to the excess, if any, of the weighted average of the Net Mortgage Rates of the
Group I Loans for the related Distribution Date over One-Month LIBOR plus 0.50%
per annum].

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificate of the Series
specified on the face hereof (herein called the "Certificates"). The
Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans as more specifically
set forth herein and in the Agreement. As provided in the Agreement, withdrawals
from the Collection Account and the Distribution Account may be made from time
to time for purposes other than distributions to Certificateholders, such
purposes including reimbursement of advances made, or certain expenses incurred,
with respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee, the Securities
Administrator and the rights of the Certificateholders under the Agreement at
any time by the Depositor, the Master Servicer, the Trustee and the Securities
Administrator with the consent of the Holders of Certificates evidencing, in the
aggregate, not less than 66-2/3% Percentage Interests of all Certificates. Any
such consent by the Holder of this Certificate shall be conclusive and binding
on such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator duly executed by, the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  No service charge will be made for any such registration of
transfer or exchange of Certificates, but the Securities Administrator may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer or exchange of
Certificates.

                  The Depositor, the Master Servicer, the Trustee, the
Securities Administrator and any agent of the Depositor, the Master Servicer,
the Trustee or the Securities Administrator may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee or the Securities Administrator
nor any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Securities Administrator and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement of all the
Mortgage Loans and all property acquired in respect of such Mortgage Loans. The
Agreement permits, but does not require, the party designated in the Agreement
to purchase all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than or equal to 10% of the
aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Securities Administrator, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:
                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:
                                              ----------------------------------
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class I-A-[2][4][6] Certificates referred
to in the within-mentioned Agreement.

                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:
                                              ----------------------------------
                                                      Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>

<S>                        <C>                                <C>                       <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -             CUSTODIAN
                                                                                          -----------------
                                                                                        (Cust)   (Minor)
         TEN ENT -         as tenants by the entireties                                 under Uniform Gifts to
                                                                                        Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto___________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following
address:_______________________________________________________________________
_______________________________________________________________________________

Dated:

                                          _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________>

         This information is provided by ______________________________________,
the assignee named above, or ____________________________________, as its agent.

<PAGE>

                                      A-3-5

                                   EXHIBIT A-3

                         FORM OF CLASS I-A-7 CERTIFICATE

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 (THE "CODE").

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
         ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
         REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
         COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR
         OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
         SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

         THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED
         BY THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO
         AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY,
         FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE
         PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE
         DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY
         ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE
         SECURITIES ADMINISTRATOR NAMED HEREIN.

<PAGE>

<TABLE>
<CAPTION>

<S>                                               <C>
DBALT Series 2005-2, Class I-A-7                  Aggregate Certificate Principal Balance of the
                                                  I-A-7 Certificates as of the Issue Date: $

Pass-Through Rate: Variable                       Denomination: $

Date of Pooling and Servicing Agreement and       Master Servicer: Wells Fargo Bank, N.A.
Cut-off Date: February 1, 2005

First Distribution Date: March 25, 2005           Trustee: HSBC Bank USA, National Association

No.__                                             Issue Date: February 28, 2005

                                                  CUSIP:________________
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

       DEUTSCHE ALT-A SECURITIES, INC. MORTGAGE LOAN TRUST, SERIES 2005-2
                      ASSET BACKED PASS-THROUGH CERTIFICATE

evidencing a fractional undivided interest in the distributions allocable to the
Class I-A-7 Certificates with respect to a trust fund consisting primarily of a
pool of conventional one- to four-family fixed rate mortgage loans (the
"Mortgage Loans") secured by one- to four- family residences, units in planned
unit developments and individual condominium units (the "Trust Fund") sold by
DEUTSCHE ALT-A SECURITIES, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         DEUTSCHE ALT-A SECURITIES, INC., THE MASTER SERVICER, THE SECURITIES
         ADMINISTRATOR, THE TRUSTEE, ANY SERVICER OR ANY OF THEIR RESPECTIVE
         AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS
         ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that [Cede & Co.] is the registered owner of
the Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in certain assets of the
Trust Fund generally consisting of the Mortgage Loans and related assets sold by
Deutsche Alt-A Securities, Inc. (the "Depositor"). This Certificate is primarily
backed by the Group I Loans sold by DB Structured Products, Inc. to the
Depositor. Wells Fargo Bank, N.A. will act as master servicer of the Group I
Loans (the "Master Servicer," which term includes any successors thereto under
the Agreement referred to below). The Trust Fund was created pursuant to the
Pooling and Servicing Agreement dated as of the Cut-Off Date specified above
(the "Agreement"), among the Depositor, Wells Fargo Bank, N.A., as Master
Servicer and securities administrator (the "Securities Administrator") and HSBC
Bank USA, National Association as trustee (the "Trustee"), a summary of certain
of the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, capitalized terms used herein shall have the meaning ascribed to
them in the Agreement. This Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement, to which Agreement the Holder
of this Certificate by virtue of its acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following such 25th day (a "Distribution Date"),
commencing on the First Distribution Date specified above, to the Person in
whose name this Certificate is registered on the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs
(the "Record Date"), in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to the Holders of Class I-A-7 Certificates on such Distribution Date pursuant to
the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Securities Administrator by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
I-A-7 Certificates or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Securities Administrator
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Securities
Administrator for that purpose as provided in the Agreement.

                  The Pass-Through Rate with respect to the first Distribution
Date is equal to 5.9447% per annum and with respect to any Distribution Date
thereafter shall be a rate per annum equal to the weighted average of the Net
Mortgage Rates of the Group I Loans for the related Distribution Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificate of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee, the Securities
Administrator and the rights of the Certificateholders under the Agreement at
any time by the Depositor, the Master Servicer, the Trustee and the Securities
Administrator with the consent of the Holders of Certificates evidencing, in the
aggregate, not less than 66-2/3% Percentage Interests of all Certificates. Any
such consent by the Holder of this Certificate shall be conclusive and binding
on such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator duly executed by, the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  No service charge will be made for any such registration of
transfer or exchange of Certificates, but the Securities Administrator may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer or exchange of
Certificates.

                  The Depositor, the Master Servicer, the Trustee, the
Securities Administrator and any agent of the Depositor, the Master Servicer,
the Trustee or the Securities Administrator may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee or the Securities Administrator
nor any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Securities Administrator and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement of all the
Mortgage Loans and all property acquired in respect of such Mortgage Loans. The
Agreement permits, but does not require, the party designated in the Agreement
to purchase all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than or equal to 10% of the
aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Securities Administrator, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:
                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:
                                              ----------------------------------
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class I-A-7 Certificates referred to in the
within-mentioned Agreement.

                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:
                                              ----------------------------------
                                                      Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>

<S>                        <C>                                <C>                       <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -             CUSTODIAN
                                                                                          -----------------
                                                                                        (Cust)   (Minor)
         TEN ENT -         as tenants by the entireties                                 under Uniform Gifts to
                                                                                        Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto___________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following
address:_______________________________________________________________________
_______________________________________________________________________________

Dated:

                                          _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________>

         This information is provided by ______________________________________,
the assignee named above, or ____________________________________, as its agent.

<PAGE>

                                   EXHIBIT A-4

                        FORM OF CLASS II-A-1 CERTIFICATE

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 (THE "CODE").

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
         ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
         REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
         COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR
         OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
         SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

         THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED
         BY THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO
         AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY,
         FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE
         PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE
         DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY
         ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE
         SECURITIES ADMINISTRATOR NAMED HEREIN.

<PAGE>

<TABLE>
<CAPTION>

<S>                                               <C>
DBALT Series 2005-2, Class II-A-1                 Aggregate Certificate Principal Balance of the
                                                  II-A-1 Certificates as of the Issue Date: $

Pass-Through Rate: Floating                       Denomination: $

Date of Pooling and Servicing Agreement and       Master Servicer: Wells Fargo Bank, N.A.
Cut-off Date: February 1, 2005

First Distribution Date: March 25, 2005           Trustee: HSBC Bank USA, National Association

No.__                                             Issue Date: February 28, 2005

                                                  CUSIP:________________
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

       DEUTSCHE ALT-A SECURITIES, INC. MORTGAGE LOAN TRUST, SERIES 2005-2
                      ASSET BACKED PASS-THROUGH CERTIFICATE

evidencing a fractional undivided interest in the distributions allocable to the
Class II-A-1 Certificates with respect to a trust fund consisting primarily of a
pool of conventional one- to four-family fixed rate mortgage loans (the
"Mortgage Loans") secured by one- to four- family residences, units in planned
unit developments and individual condominium units (the "Trust Fund") sold by
DEUTSCHE ALT-A SECURITIES, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         DEUTSCHE ALT-A SECURITIES, INC., THE MASTER SERVICER, THE SECURITIES
         ADMINISTRATOR, THE TRUSTEE, ANY SERVICER OR ANY OF THEIR RESPECTIVE
         AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS
         ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that [Cede & Co.] is the registered owner of
the Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in certain assets of the
Trust Fund generally consisting of the Group II Loans and related assets sold by
Deutsche Alt-A Securities, Inc. (the "Depositor"). This Certificate is primarily
backed by the Group II Mortgage Loans sold by DB Structured Products, Inc. to
the Depositor. Wells Fargo Bank, N.A. will act as master servicer of the Group
II Loans (the "Master Servicer," which term includes any successors thereto
under the Agreement referred to below). The Trust Fund was created pursuant to
the Pooling and Servicing Agreement dated as of the Cut-Off Date specified above
(the "Agreement"), among the Depositor, Wells Fargo Bank, N.A., as Master
Servicer and securities administrator (the "Securities Administrator") and HSBC
Bank USA, National Association as trustee (the "Trustee"), a summary of certain
of the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, capitalized terms used herein shall have the meaning ascribed to
them in the Agreement. This Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement, to which Agreement the Holder
of this Certificate by virtue of its acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following such 25th day (a "Distribution Date"),
commencing on the First Distribution Date specified above, to the Person in
whose name this Certificate is registered on the last Business Day of the month
immediately preceding the month in which such Distribution Date occurs (the
"Record Date"), in an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount required to be distributed to the
Holders of Class II-A-1 Certificates on such Distribution Date pursuant to the
Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Securities Administrator by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
II-A-1 Certificates or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Securities Administrator
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Securities
Administrator for that purpose as provided in the Agreement.

                  The Pass-Through Rate with respect to the first Distribution
Date is equal to 2.90% per annum and with respect to any Distribution date
thereafter shall be a rate per annum equal to the lesser of (a) One-Month LIBOR
plus 0.30% per annum and (b) the weighted average of the Net Mortgage Rates of
the Group II Loans for the related Distribution Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificate of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans and payments received
pursuant to the related Cap Contract, all as more specifically set forth herein
and in the Agreement. As provided in the Agreement, withdrawals from the
Collection Account and the Distribution Account may be made from time to time
for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee, the Securities
Administrator and the rights of the Certificateholders under the Agreement at
any time by the Depositor, the Master Servicer, the Trustee and the Securities
Administrator with the consent of the Holders of Certificates evidencing, in the
aggregate, not less than 66-2/3% Percentage Interests of all Certificates. Any
such consent by the Holder of this Certificate shall be conclusive and binding
on such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator duly executed by, the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  No service charge will be made for any such registration of
transfer or exchange of Certificates, but the Securities Administrator may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer or exchange of
Certificates.

                  The Depositor, the Master Servicer, the Trustee, the
Securities Administrator and any agent of the Depositor, the Master Servicer,
the Trustee or the Securities Administrator may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee or the Securities Administrator
nor any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Securities Administrator and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement of all the
Mortgage Loans and all property acquired in respect of such Mortgage Loans. The
Agreement permits, but does not require, the party designated in the Agreement
to purchase all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than or equal to 10% of the
aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Securities Administrator, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:
                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:
                                              ----------------------------------
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class II-A-1 Certificates referred to in
the within-mentioned Agreement.

                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:
                                              ----------------------------------
                                                      Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>

<S>                        <C>                                <C>                       <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -             CUSTODIAN
                                                                                          -----------------
                                                                                        (Cust)   (Minor)
         TEN ENT -         as tenants by the entireties                                 under Uniform Gifts to
                                                                                        Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto___________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following
address:_______________________________________________________________________
_______________________________________________________________________________

Dated:

                                          _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________>

         This information is provided by ______________________________________,
the assignee named above, or ____________________________________, as its agent.

<PAGE>

                                   EXHIBIT A-5

                        FORM OF CLASS II-A-2 CERTIFICATE

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 (THE "CODE").

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
         ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
         REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
         COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR
         OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
         SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

<PAGE>

<TABLE>
<CAPTION>

<S>                                               <C>
DBALT Series 2005-2, Class II-A-2                 Initial Notional Amount of the II-A-2 Certificates
                                                  as of the Issue Date:

Pass-Through Rate: Variable                       Master Servicer: Wells Fargo Bank, N.A.

Date of Pooling and Servicing Agreement and       Trustee: HSBC Bank USA, National Association
Cut-off Date: February 1, 2005

First Distribution Date: March 25, 2005           Issue Date: February 28, 2005

No.__                                             CUSIP:________________
</TABLE>

       DEUTSCHE ALT-A SECURITIES, INC. MORTGAGE LOAN TRUST, SERIES 2005-2
                      ASSET BACKED PASS-THROUGH CERTIFICATE

evidencing a fractional undivided interest in the distributions allocable to the
Class II-A-2 Certificates with respect to a trust fund consisting primarily of a
pool of conventional one- to four-family fixed rate mortgage loans (the
"Mortgage Loans") secured by one- to four- family residences, units in planned
unit developments and individual condominium units (the "Trust Fund") sold by
DEUTSCHE ALT-A SECURITIES, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         DEUTSCHE ALT-A SECURITIES, INC., THE MASTER SERVICER, THE SECURITIES
         ADMINISTRATOR, THE TRUSTEE, ANY SERVICER OR ANY OF THEIR RESPECTIVE
         AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS
         ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that [Cede & Co.] is the registered owner of
the Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in certain assets of the
Trust Fund generally consisting of the Mortgage Loans and related assets sold by
Deutsche Alt-A Securities, Inc. (the "Depositor"). This Certificate is primarily
backed by the Group II Loans sold by DB Structured Products, Inc. to the
Depositor. Wells Fargo Bank, N.A. will act as master servicer of the Mortgage
Loans (the "Master Servicer," which term includes any successors thereto under
the Agreement referred to below). The Trust Fund was created pursuant to the
Pooling and Servicing Agreement dated as of the Cut-Off Date specified above
(the "Agreement"), among the Depositor, Wells Fargo Bank, N.A., as Master
Servicer and securities administrator (the "Securities Administrator") and HSBC
Bank USA, National Association as trustee (the "Trustee"), a summary of certain
of the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, capitalized terms used herein shall have the meaning ascribed to
them in the Agreement. This Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement, to which Agreement the Holder
of this Certificate by virtue of its acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following such 25th day (a "Distribution Date"),
commencing on the First Distribution Date specified above, to the Person in
whose name this Certificate is registered on the Business Day immediately
preceding such Distribution Date (the "Record Date"), in an amount equal to the
product of the Percentage Interest evidenced by this Certificate and the amount
required to be distributed to the Holders of Class I-A-2 Certificates on such
Distribution Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Securities Administrator by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date, or otherwise by check mailed by
first class mail to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register. Notwithstanding the above, the
final distribution on this Certificate will be made after due notice by the
Securities Administrator of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Securities Administrator for that purpose as provided in the Agreement.

                  The Pass-Through Rate with respect to the first Distribution
Date shall be equal to 2.4592% per annum, and with respect to any Distribution
Date thereafter shall be a per annum rate equal to the excess, if any, of the
weighted average of the Net Mortgage Rates of the Group II Loans for the related
Distribution Date over One-Month LIBOR plus 0.30% per annum.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificate of the Series
specified on the face hereof (herein called the "Certificates"). The
Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans as more specifically
set forth herein and in the Agreement. As provided in the Agreement, withdrawals
from the Collection Account and the Distribution Account may be made from time
to time for purposes other than distributions to Certificateholders, such
purposes including reimbursement of advances made, or certain expenses incurred,
with respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee, the Securities
Administrator and the rights of the Certificateholders under the Agreement at
any time by the Depositor, the Master Servicer, the Trustee and the Securities
Administrator with the consent of the Holders of Certificates evidencing, in the
aggregate, not less than 66-2/3% Percentage Interests of all Certificates. Any
such consent by the Holder of this Certificate shall be conclusive and binding
on such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator duly executed by, the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  No service charge will be made for any such registration of
transfer or exchange of Certificates, but the Securities Administrator may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer or exchange of
Certificates.

                  The Depositor, the Master Servicer, the Trustee, the
Securities Administrator and any agent of the Depositor, the Master Servicer,
the Trustee or the Securities Administrator may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee or the Securities Administrator
nor any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Securities Administrator and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement of all the
Mortgage Loans and all property acquired in respect of such Mortgage Loans. The
Agreement permits, but does not require, the party designated in the Agreement
to purchase all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than or equal to 10% of the
aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Securities Administrator, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:
                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:
                                              ----------------------------------
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class II-A-2 Certificates referred to in
the within-mentioned Agreement.

                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:
                                              ----------------------------------
                                                      Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>

<S>                        <C>                                <C>                       <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -             CUSTODIAN
                                                                                          -----------------
                                                                                        (Cust)   (Minor)
         TEN ENT -         as tenants by the entireties                                 under Uniform Gifts to
                                                                                        Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto___________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following
address:_______________________________________________________________________
_______________________________________________________________________________

Dated:

                                          _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________>

         This information is provided by ______________________________________,
the assignee named above, or ____________________________________, as its agent.

<PAGE>

                                   EXHIBIT A-6

                        FORM OF CLASS II-A-3 CERTIFICATE

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 (THE "CODE").

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
         ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
         REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
         COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR
         OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
         SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

         THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED
         BY THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO
         AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY,
         FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE
         PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE
         DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY
         ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE
         SECURITIES ADMINISTRATOR NAMED HEREIN.

<PAGE>

<TABLE>
<CAPTION>

<S>                                               <C>
DBALT Series 2005-2, Class II-A-3                 Aggregate Certificate Principal Balance of the
                                                  II-A-3 Certificates as of the Issue Date: $

Pass-Through Rate: Variable                       Denomination: $

Date of Pooling and Servicing Agreement and       Master Servicer: Wells Fargo Bank, N.A.
Cut-off Date: February 1, 2005

First Distribution Date: March 25, 2005           Trustee: HSBC Bank USA, National

No.__                                             Issue Date: February 28, 2005

                                                  CUSIP:________________
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

       DEUTSCHE ALT-A SECURITIES, INC. MORTGAGE LOAN TRUST, SERIES 2005-2
                      ASSET BACKED PASS-THROUGH CERTIFICATE

evidencing a fractional undivided interest in the distributions allocable to the
Class II-A-3 Certificates with respect to a trust fund consisting primarily of a
pool of conventional one- to four-family fixed rate mortgage loans (the
"Mortgage Loans") secured by one- to four- family residences, units in planned
unit developments and individual condominium units (the "Trust Fund") sold by
DEUTSCHE ALT-A SECURITIES, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         DEUTSCHE ALT-A SECURITIES, INC., THE MASTER SERVICER, THE SECURITIES
         ADMINISTRATOR, THE TRUSTEE, ANY SERVICER OR ANY OF THEIR RESPECTIVE
         AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS
         ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that [Cede & Co.] is the registered owner of
the Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in certain assets of the
Trust Fund generally consisting of the Mortgage Loans and related assets sold by
Deutsche Alt-A Securities, Inc. (the "Depositor"). This Certificate is primarily
backed by the Group II Loans sold by DB Structured Products, Inc. to the
Depositor. Wells Fargo Bank, N.A. will act as master servicer of the Group I
Loans (the "Master Servicer," which term includes any successors thereto under
the Agreement referred to below). The Trust Fund was created pursuant to the
Pooling and Servicing Agreement dated as of the Cut-Off Date specified above
(the "Agreement"), among the Depositor, Wells Fargo Bank, N.A., as Master
Servicer and securities administrator (the "Securities Administrator") and HSBC
Bank USA, National Association as trustee (the "Trustee"), a summary of certain
of the pertinent provisions of which is set forth hereafter. To the extent not
defined herein, capitalized terms used herein shall have the meaning ascribed to
them in the Agreement. This Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement, to which Agreement the Holder
of this Certificate by virtue of its acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following such 25th day (a "Distribution Date"),
commencing on the First Distribution Date specified above, to the Person in
whose name this Certificate is registered on the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs
(the "Record Date"), in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to the Holders of Class II-A-3 Certificates on such Distribution Date pursuant
to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Securities Administrator by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
I-A-3 Certificates or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Securities Administrator
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Securities
Administrator for that purpose as provided in the Agreement.

                  The Pass-Through Rate with respect to the first Distribution
Date is equal to 5.3532% per annum and with respect to any Distribution Date
thereafter shall be a rate per annum equal to the weighted average of the Net
Mortgage Rates of the Group II Loans for the related Distribution Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificate of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee, the Securities
Administrator and the rights of the Certificateholders under the Agreement at
any time by the Depositor, the Master Servicer, the Trustee and the Securities
Administrator with the consent of the Holders of Certificates evidencing, in the
aggregate, not less than 66-2/3% Percentage Interests of all Certificates. Any
such consent by the Holder of this Certificate shall be conclusive and binding
on such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator duly executed by, the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  No service charge will be made for any such registration of
transfer or exchange of Certificates, but the Securities Administrator may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer or exchange of
Certificates.

                  The Depositor, the Master Servicer, the Trustee, the
Securities Administrator and any agent of the Depositor, the Master Servicer,
the Trustee or the Securities Administrator may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee or the Securities Administrator
nor any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Securities Administrator and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement of all the
Mortgage Loans and all property acquired in respect of such Mortgage Loans. The
Agreement permits, but does not require, the party designated in the Agreement
to purchase all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than or equal to 10% of the
aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assumes
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Securities Administrator, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:
                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:
                                              ----------------------------------
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class II-A-3 Certificates referred to in
the within-mentioned Agreement.

                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:
                                              ---------------------------------
                                                      Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>

<S>                        <C>                                <C>                       <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -             CUSTODIAN
                                                                                          -----------------
                                                                                        (Cust)   (Minor)
         TEN ENT -         as tenants by the entireties                                 under Uniform Gifts to
                                                                                        Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto___________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following
address:_______________________________________________________________________
_______________________________________________________________________________

Dated:

                                          _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________>

         This information is provided by ______________________________________,
the assignee named above, or ____________________________________, as its agent.

<PAGE>

                                   EXHIBIT A-7

                           FORM OF CLASS M CERTIFICATE

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 (THE "CODE").

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
         ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
         REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
         COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR
         OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
         SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

         THIS CERTIFICATE IS SUBORDINATE TO THE GROUP I SENIOR CERTIFICATES AND
         THE GROUP II SENIOR CERTIFICATES, TO THE EXTENT DESCRIBED IN THE
         AGREEMENT REFERRED TO HEREIN.

         ANY TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO MAKE THE
         REPRESENTATIONS SET FORTH IN SECTION 5.2(C) OF THE AGREEMENT REFERRED
         TO HEREIN.

         THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED
         BY THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO
         AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY,
         FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE
         PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE
         DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY
         ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE
         SECURITIES ADMINISTRATOR NAMED HEREIN.

<PAGE>

<TABLE>
<CAPTION>

<S>                                               <C>
DBALT Series 2005-2, Class M                      Aggregate Certificate Principal Balance of the
                                                  Class M Certificates as of the Issue Date:
                                                  $_______________

Pass-Through Rate: Variable                       Denomination: $______________

Date of Pooling and Servicing Agreement           Master Servicer: Wells Fargo Bank, N.A.
and Cut-off Date: February 1, 2005

First Distribution Date: March 25, 2005           Trustee: HSBC Bank USA, National Association

No.___                                            Issue Date: February 28, 2005

                                                  CUSIP:_________________
</TABLE>

       DEUTSCHE ALT-A SECURITIES, INC. MORTGAGE LOAN TRUST, SERIES 2005-2
                      ASSET BACKED PASS-THROUGH CERTIFICATE

evidencing a fractional undivided interest in the distributions allocable to the
Class M Certificates with respect to a trust fund consisting primarily of a pool
of conventional one- to four-family fixed rate mortgage loans (the "Mortgage
Loans") secured by one- to four- family residences, units in planned unit
developments and individual condominium units (the "Trust Fund") sold by
DEUTSCHE ALT-A SECURITIES, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         DEUTSCHE ALT-A SECURITIES, INC., THE MASTER SERVICER, THE SECURITIES
         ADMINISTRATOR, THE TRUSTEE, ANY SERVICER OR ANY OF THEIR RESPECTIVE
         AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS
         ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that [Cede & Co.] is the registered owner of
the Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in certain assets of the
Trust Fund generally consisting of the Mortgage Loans and related assets sold by
Deutsche Alt-A Securities, Inc. (the "Depositor"). The Mortgage Loans were sold
by DB Structured Products, Inc. to the Depositor. Wells Fargo Bank, N.A. will
act as master servicer of the Mortgage Loans (the "Master Servicer," which term
includes any successors thereto under the Agreement referred to below). The
Trust Fund was created pursuant to the Pooling and Servicing Agreement dated as
of the Cut-Off Date specified above (the "Agreement"), among the Depositor,
Wells Fargo Bank, N.A., as Master Servicer and securities administrator (the
"Securities Administrator") and HSBC Bank USA, National Association as trustee
(the "Trustee"), a summary of certain of the pertinent provisions of which is
set forth hereafter. To the extent not defined herein, capitalized terms used
herein shall have the meaning ascribed to them in the Agreement. This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of its acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following such 25th day (a "Distribution Date"),
commencing on the First Distribution Date specified above, to the Person in
whose name this Certificate is registered on the last Business Day of the month
immediately preceding the month in which such Distribution Date occurs (the
"Record Date"), in an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount required to be distributed to the
Holders of Class M Certificates on such Distribution Date pursuant to the
Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Securities Administrator by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
M Certificates, or otherwise by check mailed by first class mail to the address
of the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Securities Administrator of the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Securities Administrator
for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable with respect to the first
Distribution Date shall be 5.8888% per annum, and with respect to any
Distribution Date thereafter shall equal a rate per annum equal to the weighted
average of the Net Mortgage Rates of the Group I Mortgage Loans and the Group II
Mortgage Loans for the related Distribution Date (weighted on the basis of the
results of subtracting from the aggregate principal balance of each loan group
the current aggregate Certificate Principal Balance of the related Senior
Certificates, other than the Class I-A-2, Class I-A-4, Class I-A-6 and Class
II-A-2 Certificates).

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificate of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans as more specifically
set forth herein and in the Agreement. As provided in the Agreement, withdrawals
from the Collection Account and the Distribution Account may be made from time
to time for purposes other than distributions to Certificateholders, such
purposes including reimbursement of advances made, or certain expenses incurred,
with respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee, the Securities
Administrator and the rights of the Certificateholders under the Agreement at
any time by the Depositor, the Master Servicer, the Trustee and the Securities
Administrator with the consent of the Holders of Certificates evidencing, in the
aggregate, not less than 66-2/3% Percentage Interests of all Certificates. Any
such consent by the Holder of this Certificate shall be conclusive and binding
on such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator duly executed by, the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  Any transferee of this Certificate shall be deemed to make the
representations set forth in Section 5.2(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  No service charge will be made for any such registration of
transfer or exchange of Certificates, but the Securities Administrator may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer or exchange of
Certificates.

                  The Depositor, the Master Servicer, the Trustee, the
Securities Administrator and any agent of the Depositor, the Master Servicer,
the Trustee or the Securities Administrator may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee or the Securities Administrator
nor any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Securities Administrator and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement of all the
Mortgage Loans and all property acquired in respect of such Mortgage Loans. The
Agreement permits, but does not require, the party designated in the Agreement
to purchase all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than or equal to 10% of the
aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assume
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Securities Administrator by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:

                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:___________________________________
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class M Certificates referred to in the
within-mentioned Agreement.

                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:___________________________________
                                                      Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>

<S>                        <C>                                <C>                       <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -             CUSTODIAN
                                                                                          -----------------
                                                                                        (Cust)   (Minor)
         TEN ENT -         as tenants by the entireties                                 under Uniform Gifts to
                                                                                        Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto___________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following
address:_______________________________________________________________________
_______________________________________________________________________________

Dated:

                                          _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________>

         This information is provided by ______________________________________,
the assignee named above, or ____________________________________, as its agent.

<PAGE>

                                   EXHIBIT A-8

                       FORM OF CLASS B-[1][2] CERTIFICATES

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE GROUP I
         SENIOR CERTIFICATES, THE GROUP II SENIOR CERTIFICATES, THE CLASS M
         CERTIFICATES [AND THE CLASS B-1 CERTIFICATES], TO THE EXTENT DESCRIBED
         IN THE AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE
         TRANSFEREE PROVIDES A CERTIFICATION PURSUANT TO SECTION 5.2(C) OF THE
         AGREEMENT.

         THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED
         BY THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO
         AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY,
         FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE
         PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE
         DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY
         ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE
         SECURITIES ADMINISTRATOR NAMED HEREIN.

<PAGE>

<TABLE>
<CAPTION>

<S>                                                            <C>
DBALT Series 2005-2, Class B-[1][2]                            Aggregate Certificate Principal Balance of the
                                                               Class B-[1][2] Certificates as of the Issue Date: $

Pass-Through Rate: Variable                                    Denomination: $

Date of Pooling and Servicing Agreement                        Master Servicer: Wells Fargo Bank, N.A.
and Cut-off Date: February 1, 2005

First Distribution Date: March 25, 2005                        Trustee: HSBC Bank USA, National Association

No. ______                                                     Issue Date: February 28, 2005

                                                               CUSIP:
</TABLE>

       DEUTSCHE ALT-A SECURITIES, INC. MORTGAGE LOAN TRUST, SERIES 2005-2
                      ASSET BACKED PASS-THROUGH CERTIFICATE

evidencing a fractional undivided interest in the distributions allocable to the
Class B-[1][2] Certificates with respect to a trust fund consisting primarily of
a pool of conventional one- to four-family fixed rate mortgage loans (the
"Mortgage Loans") secured by one- to four- family residences, units in planned
unit developments and individual condominium units (the "Trust Fund") sold by
DEUTSCHE ALT-A SECURITIES, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         DEUTSCHE ALT-A SECURITIES, INC., THE MASTER SERVICER, THE SECURITIES
         ADMINISTRATOR, THE TRUSTEE, ANY SERVICER OR ANY OF THEIR RESPECTIVE
         AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS
         ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that [Cede & Co.] is the registered owner of
the Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in certain assets of the
Trust Fund generally consisting of the Mortgage Loans and related assets sold by
Deutsche Alt-A Securities, Inc. (the "Depositor"). The Mortgage Loans were sold
by DB Structured Products, Inc. to the Depositor. Wells Fargo Bank, N.A. will
act as master servicer of the Mortgage Loans (the "Master Servicer," which term
includes any successors thereto under the Agreement referred to below). The
Trust Fund was created pursuant to the Pooling and Servicing Agreement dated as
of the Cut-Off Date specified above (the "Agreement"), among the Depositor,
Wells Fargo Bank, N.A., as Master Servicer and securities administrator (the
"Securities Administrator") and HSBC Bank USA, National Association as trustee
(the "Trustee"), a summary of certain of the pertinent provisions of which is
set forth hereafter. To the extent not defined herein, capitalized terms used
herein shall have the meaning ascribed to them in the Agreement. This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of its acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following such 25th day (a "Distribution Date"),
commencing on the First Distribution Date specified above, to the Person in
whose name this Certificate is registered at the close of business on the last
Business Day of the month immediately preceding the month in which such
Distribution Date occurs (the "Record Date"), in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class B-[1][2] Certificates on such
Distribution Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Securities Administrator by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
B-[1][2] Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Securities Administrator
of the pendency of such distribution and only upon presentation and surrender of
this Certificate at the office or agency appointed by the Securities
Administrator for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable with respect to the first
Distribution Date shall be 5.8888% per annum, and with respect to any
Distribution Date thereafter shall equal a rate per annum equal to the weighted
average of the Net Mortgage Rates of the Group I Mortgage Loans and the Group II
Mortgage Loans for the related Distribution Date (weighted on the basis of the
results of subtracting from the aggregate principal balance of each loan group
the current aggregate Certificate Principal Balance of the related Senior
Certificates, other than the Class I-A-2, Class I-A-4, Class I-A-6 and Class
II-A-2 Certificates).

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee, the Securities
Administrator and the rights of the Certificateholders under the Agreement at
any time by the Depositor, the Master Servicer, the Trustee and the Securities
Administrator with the consent of the Holders of Certificates evidencing, in the
aggregate, not less than 66-2/3% Percentage Interest of all Certificates. Any
such consent by the Holder of this Certificate shall be conclusive and binding
on such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator duly executed by, the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  No transfer of this Certificate shall be made to any person
unless the Transferee provides a certification pursuant to Section 5.2(c) of the
Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  No service charge will be made for any such registration of
transfer or exchange of Certificates, but the Securities Administrator may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer or exchange of
Certificates.

                  The Depositor, the Master Servicer, the Trustee, the
Securities Administrator and any agent of the Depositor, the Master Servicer,
the Trustee or the Securities Administrator may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee or the Securities Administrator
nor any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Securities Administrator and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement of all the
Mortgage Loans and all property acquired in respect of such Mortgage Loans. The
Agreement permits, but does not require, the party designated in the Agreement
to purchase all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than or equal to 10% of the
aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assume
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Securities Administrator, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:
                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:___________________________________
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class B-[1][2] Certificates referred to in
the within-mentioned Agreement.

                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:___________________________________
                                                      Authorized Signatory

<PAGE>

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto___________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following
address:_______________________________________________________________________
_______________________________________________________________________________

Dated:

                                          _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________>

         This information is provided by ______________________________________,
the assignee named above, or ____________________________________, as its agent.

<PAGE>

                                   EXHIBIT A-9

                     FORM OF CLASS B-[3][4][5] CERTIFICATES

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE GROUP I
         SENIOR CERTIFICATES, THE GROUP II SENIOR CERTIFICATES, THE CLASS M
         CERTIFICATES, THE CLASS B-1 CERTIFICATES [,/AND] CLASS B-2 CERTIFICATES
         [[,/AND] CLASS B-3 CERTIFICATES [,/AND] CLASS B-4 CERTIFICATES], TO THE
         EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

         THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED
         BY THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO
         AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY,
         FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE
         PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE
         DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY
         ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE
         SECURITIES ADMINISTRATOR NAMED HEREIN.

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER ANY STATE
         SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE,
         AGREES THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR
         OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND
         OTHER APPLICABLE LAWS AND (1) OUTSIDE OF THE UNITED STATES WITHIN THE
         MEANING OF AND IN COMPLIANCE WITH REGULATION S UNDER THE ACT
         ("REGULATION S"), OR (2) WITHIN THE UNITED STATES TO (A) "QUALIFIED
         INSTITUTIONAL BUYERS" WITHIN THE MEANING OF AND IN COMPLIANCE WITH RULE
         144A UNDER THE ACT ("RULE 144A") OR (B) TO INSTITUTIONAL INVESTORS THAT
         ARE "ACCREDITED INVESTORS" WITHIN THE MEANING OF RULE 501(A)(1), (2),
         (3) OR (7) OF "REGULATION D" UNDER THE ACT.

         [THIS CERTIFICATE IS A REGULATION S TEMPORARY GLOBAL CERTIFICATE FOR
         PURPOSES OF REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF
         1933, AS AMENDED (THE "SECURITIES ACT"). PRIOR TO THE DATE THAT IS 40
         DAYS AFTER THE LATER OF (I) THE COMMENCEMENT OF THE OFFERING OF THE
         OFFERED CERTIFICATES AND (II) THE CLOSING DATE, THIS CERTIFICATE MAY
         NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE UNITED
         STATES OR TO A U.S. PERSON EXCEPT PURSUANT TO AN EXEMPTION FROM THE
         REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.]

         [NO BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL CERTIFICATE
         SHALL BE ENTITLED TO RECEIVE PAYMENTS OF PRINCIPAL OR INTEREST HEREIN
         UNLESS THE REQUIRED CERTIFICATIONS HAVE BEEN DELIVERED PURSUANT TO THE
         TERMS OF THE AGREEMENT (AS DEFINED HEREIN).]

         [THE HOLDER OF THIS REGULATION S PERMANENT GLOBAL CERTIFICATE BY ITS
         ACCEPTANCE HEREOF AGREES NOT TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
         CERTIFICATE WITHIN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED IN
         REGULATION S UNDER THE SECURITIES ACT) PRIOR TO THE DATE WHICH IS THE
         LATER OF (I) 40 DAYS AFTER THE LATER OF THE CLOSING DATE AND (II) THE
         DATE ON WHICH THE REQUISITE CERTIFICATIONS ARE DUE TO AND PROVIDED TO
         THE TRUSTEE AND SECURITIES ADMINISTRATOR PURSUANT TO THE AGREEMENT (AS
         DEFINED BELOW), EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
         REQUIREMENTS OF THE SECURITIES ACT.]

         NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE
         TRANSFEREE PROVIDES A CERTIFICATION PURSUANT TO SECTION 5.2(C) OF THE
         AGREEMENT.

<PAGE>

<TABLE>
<CAPTION>

<S>                                                            <C>
DBALT Series 2005-2, Class B-[3][4][5]            Aggregate Certificate Principal Balance of the
                                                  Class B-[3][4][5] Certificates as of the Issue
                                                  Date: $

Pass-Through Rate: Variable                       Denomination: $

Date of Pooling and Servicing Agreement           Master Servicer: Wells Fargo Bank, N.A.
and Cut-off Date: February 1, 2005

First Distribution Date: March 25, 2005           Trustee: HSBC Bank USA, National Association

No. ______                                        Issue Date: February 28, 2005

                                                  CUSIP:
</TABLE>

       DEUTSCHE ALT-A SECURITIES, INC. MORTGAGE LOAN TRUST, SERIES 2005-2
                      ASSET BACKED PASS-THROUGH CERTIFICATE

evidencing a fractional undivided interest in the distributions allocable to the
Class B-[3][4][5] Certificates with respect to a trust fund consisting primarily
of a pool of conventional one- to four-family fixed rate mortgage loans (the
"Mortgage Loans") secured by one- to four- family residences, units in planned
unit developments and individual condominium units (the "Trust Fund") sold by
DEUTSCHE ALT-A SECURITIES, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         DEUTSCHE ALT-A SECURITIES, INC., THE MASTER SERVICER, THE SECURITIES
         ADMINISTRATOR, THE TRUSTEE, ANY SERVICER OR ANY OF THEIR RESPECTIVE
         AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS
         ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that [Deutsche Bank Securities Inc.] is the
registered owner of the Percentage Interest evidenced hereby in the beneficial
ownership interest of Certificates of the same Class as this Certificate in
certain assets of the Trust Fund generally consisting of the Mortgage Loans and
related assets sold by Deutsche Alt-A Securities, Inc. (the "Depositor"). The
Mortgage Loans were sold by DB Structured Products, Inc. to the Depositor. Wells
Fargo Bank, N.A. will act as master servicer of the Mortgage Loans (the "Master
Servicer," which term includes any successors thereto under the Agreement
referred to below). The Trust Fund was created pursuant to the Pooling and
Servicing Agreement dated as of the Cut-Off Date specified above (the
"Agreement"), among the Depositor, Wells Fargo Bank, N.A., as Master Servicer
and securities administrator (the "Securities Administrator") and HSBC Bank USA,
National Association as trustee (the "Trustee"), a summary of certain of the
pertinent provisions of which is set forth hereafter. To the extent not defined
herein, capitalized terms used herein shall have the meaning ascribed to them in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of its acceptance hereof assents and by which such
Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following such 25th day (a "Distribution Date"),
commencing on the First Distribution Date specified above, to the Person in
whose name this Certificate is registered at the close of business on the last
Business Day of the month immediately preceding the month in which such
Distribution Date occurs (the "Record Date"), in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class B-[3][4][5] Certificates on such
Distribution Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Securities Administrator by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
B-[3][4][5] Certificates, or otherwise by check mailed by first class mail to
the address of the Person entitled thereto, as such name and address shall
appear on the Certificate Register. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Securities
Administrator of the pendency of such distribution and only upon presentation
and surrender of this Certificate at the office or agency appointed by the
Securities Administrator for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable with respect to the first
Distribution Date shall be 5.8888% per annum, and with respect to any
Distribution Date thereafter shall equal a rate per annum equal to the weighted
average of the Net Mortgage Rates of the Group I Mortgage Loans and the Group II
Mortgage Loans for the related Distribution Date (weighted on the basis of the
results of subtracting from the aggregate principal balance of each loan group
the current aggregate Certificate Principal Balance of the related Senior
Certificates, other than the Class I-A-2, Class I-A-4, Class I-A-6 and Class
II-A-2 Certificates).

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee, the Securities
Administrator and the rights of the Certificateholders under the Agreement at
any time by the Depositor, the Master Servicer, the Trustee and the Securities
Administrator with the consent of the Holders of Certificates evidencing, in the
aggregate, not less than 66-2/3% Percentage Interest of all Certificates. Any
such consent by the Holder of this Certificate shall be conclusive and binding
on such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator duly executed by, the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  No service charge will be made for any such registration of
transfer or exchange of Certificates, but the Securities Administrator may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer or exchange of
Certificates.

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of this Certificate is to be made without
registration or qualification, the Securities Administrator shall require
receipt of (i) if such transfer is purportedly being made in reliance upon Rule
144A or Regulation S under the 1933 Act, written certifications from the Holder
of the Certificate desiring to effect the transfer, and from such Holder's
prospective transferee, substantially in the forms attached to the Agreement as
Exhibits B-1 and B-3, respectively, (ii) if such transfer is purportedly being
made in reliance upon Rule 501(a) under the 1933 Act, written certifications
from the Holder of the Certificate desiring to effect the transfer and from such
Holder's prospective transferee, substantially in the form attached to the
Agreement as Exhibit B-2 and (iii) in all other cases, an Opinion of Counsel
satisfactory to it that such transfer may be made without such registration or
qualification (which Opinion of Counsel shall not be an expense of the Trust
Fund or of the Depositor, the Trustee, the Master Servicer or the Securities
Administrator in their respective capacities as such), together with copies of
the written certification(s) of the Holder of the Certificate desiring to effect
the transfer and/or such Holder's prospective transferee upon which such Opinion
of Counsel is based. None of the Depositor, the Trustee or the Securities
Administrator is obligated to register or qualify the Class of Certificates
specified on the face hereof under the 1933 Act or any other securities law or
to take any action not otherwise required under the Agreement to permit the
transfer of such Certificates without registration or qualification. Any Holder
desiring to effect a transfer of this Certificate shall be required to indemnify
the Trustee, the Depositor, the Master Servicer and the Securities Administrator
against any liability that may result if the transfer is not so exempt or is not
made in accordance with such federal and state laws.

                  No transfer of this Certificate shall be made to any person
unless the Transferee provides a certification pursuant to Section 5.2(c) of the
Agreement.

                  The Depositor, the Master Servicer, the Trustee, the
Securities Administrator and any agent of the Depositor, the Master Servicer,
the Trustee or the Securities Administrator may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee or the Securities Administrator
nor any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Securities Administrator and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement of all the
Mortgage Loans and all property acquired in respect of such Mortgage Loans. The
Agreement permits, but does not require, the party designated in the Agreement
to purchase all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than or equal to 10% of the
aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assume
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Securities Administrator, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:
                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:__________________________________
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class B-[3][4][5] Certificates referred to
in the within-mentioned Agreement.

                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:__________________________________
                                                      Authorized Signatory

<PAGE>

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto___________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following
address:_______________________________________________________________________
_______________________________________________________________________________

Dated:

                                          _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________>

         This information is provided by ______________________________________,
the assignee named above, or ____________________________________, as its agent.

<PAGE>

                                  EXHIBIT A-10

                           FORM OF CLASS R CERTIFICATE

         THIS CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES PERSON.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 (THE "CODE").

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
         ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
         REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
         COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR
         OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
         SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
         MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02(C) OF THE
         AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
         MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE
         SECURITIES ADMINISTRATOR THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED
         STATES OR ANY POSSESSION THEREOF, ANY STATE OR POLITICAL SUBDIVISION
         THEREOF, ANY FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY
         AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (2) ANY ORGANIZATION
         (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) THAT 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,
         (3) ANY ORGANIZATION DESCRIBED IN SECTION 1381(A)(2)(C) OF THE CODE
         (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR (3)
         SHALL HEREINAFTER BE REFERRED TO AS A "DISQUALIFIED ORGANIZATION") OR
         (4) AN AGENT OF A DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF SUCH
         TRANSFER IS TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX, AND (II)
         SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO THE
         FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE
         REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR OTHER
         DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN
         AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED
         TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT
         BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER,
         INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
         CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE HEREOF SHALL
         BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH AND THE
         PROVISIONS OF SECTION 5.02(C) OF THE AGREEMENT REFERRED TO HEREIN. ANY
         PERSON THAT IS A DISQUALIFIED ORGANIZATION IS PROHIBITED FROM ACQUIRING
         BENEFICIAL OWNERSHIP OF THIS CERTIFICATE.

<PAGE>

<TABLE>
<CAPTION>

<S>                                                              <C>
DBALT Series 2005-2, Class R                                     Aggregate Percentage Interest of the Class R
                                                                 Certificates as of the Issue Date: 100.00%

Pass-Through Rate:  Variable

Date of Pooling and Servicing Agreement                          Master Servicer: Wells Fargo Bank, N.A.
and Cut-off Date: February 1, 2005

First Distribution Date: March 25, 2005                          Trustee: HSBC Bank USA, National Association

No __                                                            Issue Date: February 28, 2005
</TABLE>

       DEUTSCHE ALT-A SECURITIES, INC. MORTGAGE LOAN TRUST, SERIES 2005-2
                      ASSET BACKED PASS-THROUGH CERTIFICATE

evidencing a fractional undivided interest in the distributions allocable to the
Class R Certificates with respect to a trust fund consisting primarily of a pool
of conventional one- to four-family fixed rate mortgage loans (the "Mortgage
Loans") secured by one- to four- family residences, units in planned unit
developments and individual condominium units (the "Trust Fund") sold by
DEUTSCHE ALT-A SECURITIES, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         DEUTSCHE ALT-A SECURITIES, INC., THE MASTER SERVICER, THE SECURITIES
         ADMINISTRATOR, THE TRUSTEE, ANY SERVICER OR ANY OF THEIR RESPECTIVE
         AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS
         ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that [Deutsche Bank Securities Inc.] is the
registered owner of the Percentage Interest evidenced hereby in the beneficial
ownership interest of Certificates of the same Class as this Certificate in
certain assets of the Trust Fund generally consisting of the Loans and related
assets sold by Deutsche Alt-A Securities, Inc. (the "Depositor"). The Loans were
sold by DB Structured Products, Inc. to the Depositor. Wells Fargo Bank, N.A.
will act as master servicer of the Loans (the "Master Servicer," which term
includes any successors thereto under the Agreement referred to below). The
Trust Fund was created pursuant to the Pooling and Servicing Agreement dated as
of the Cut-Off Date specified above (the "Agreement"), among the Depositor,
Wells Fargo Bank, N.A., as Master Servicer and securities administrator (the
"Securities Administrator") and HSBC Bank USA, National Association as trustee
(the "Trustee"), a summary of certain of the pertinent provisions of which is
set forth hereafter. To the extent not defined herein, capitalized terms used
herein shall have the meaning ascribed to them in the Agreement. This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of its acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following such 25th day (a "Distribution Date"),
commencing on the First Distribution Date specified above, to the Person in
whose name this Certificate is registered at the close of business on the last
Business Day of the month immediately preceding the month in which such
Distribution Date occurs (the "Record Date"), in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class R Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Securities Administrator by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
R Certificates, or otherwise by check mailed by first class mail to the address
of the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Securities Administrator of the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Securities Administrator
for that purpose as provided in the Agreement.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificate of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, as more specifically
set forth herein and in the Agreement. As provided in the Agreement, withdrawals
from the Collection Account and the Distribution Account may be made from time
to time for purposes other than distributions to Certificateholders, such
purposes including reimbursement of advances made, or certain expenses incurred,
with respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Master Servicer, the Trustee, the Securities
Administrator and the rights of the Certificateholders under the Agreement at
any time by the Depositor, the Master Servicer, the Trustee and the Securities
Administrator with the consent of the Holders of Certificates evidencing, in the
aggregate, not less than 66-2/3% Percentage Interest of all Certificates. Any
such consent by the Holder of this Certificate shall be conclusive and binding
on such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Securities Administrator
as provided in the Agreement, duly endorsed by, or accompanied by an assignment
in the form below or other written instrument of transfer in form satisfactory
to the Securities Administrator duly executed by, the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                  Each Holder of this Certificate will be deemed to have agreed
to be bound by the restrictions set forth in the Agreement to the effect that
(i) each person holding or acquiring any Ownership Interest in this Certificate
must be a United States Person and a Permitted Transferee, (ii) the transfer of
any Ownership Interest in this Certificate will be conditioned upon the delivery
to the Securities Administrator of, among other things, an affidavit to the
effect that it is a United States Person and Permitted Transferee, (iii) any
attempted or purported transfer of any Ownership Interest in this Certificate in
violation of such restrictions will be absolutely null and void and will vest no
rights in the purported transferee, and (iv) if any person other than a United
States Person and a Permitted Transferee acquires any Ownership Interest in this
Certificate in violation of such restrictions, then the Depositor will have the
right, in its sole discretion and without notice to the Holder of this
Certificate, to sell this Certificate to a purchaser selected by the Depositor,
which purchaser may be the Depositor, or any affiliate of the Depositor, on such
terms and conditions as the Depositor may choose.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  Prior to registration of any transfer, sale or other
disposition of this Certificate, the proposed transferee shall provide to the
Securities Administrator (i) an affidavit to the effect that such transferee is
any Person other than a Disqualified Organization or the agent (including a
broker, nominee or middleman) of a Disqualified Organization, and (ii) a
certificate that acknowledges that (A) the Class R Certificates have been
designated as representing the beneficial ownership of the residual interests in
each REMIC, (B) it will include in its income a PRO RATA share of the net income
of the Trust Fund and that such income may be an "excess inclusion," as defined
in the Code, that, with certain exceptions, cannot be offset by other losses or
benefits from any tax exemption, and (C) it expects to have the financial means
to satisfy all of its tax obligations including those relating to holding the
Class R Certificates. Notwithstanding the registration in the Certificate
Register of any transfer, sale or other disposition of this Certificate to a
Disqualified Organization or an agent (including a broker, nominee or middleman)
of a Disqualified Organization, such registration shall be deemed to be of no
legal force or effect whatsoever and such Person shall not be deemed to be a
Certificateholder for any purpose, including, but not limited to, the receipt of
distributions in respect of this Certificate.

                  The Holder of this Certificate, by its acceptance hereof,
shall be deemed to have consented to the provisions of Section 5.02(c) of the
Agreement and to any amendment of the Agreement deemed necessary by counsel of
the Depositor to ensure that the transfer of this Certificate to any Person
other than a Permitted Transferee or any other Person will not cause any portion
of the Trust Fund to cease to qualify as a REMIC or cause the imposition of a
tax upon any REMIC.

                  No service charge will be made for any such registration of
transfer or exchange of Certificates, but the Securities Administrator may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer or exchange of
Certificates.

                  The Depositor, the Master Servicer, the Trustee, the
Securities Administrator and any agent of the Depositor, the Master Servicer,
the Trustee or the Securities Administrator may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee or the Securities Administrator
nor any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Securities Administrator and required to be paid to them
pursuant to the Agreement following the earlier of (i) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust Fund and (ii) the purchase by the party designated
in the Agreement at a price determined as provided in the Agreement of all the
Mortgage Loans and all property acquired in respect of such Mortgage Loans. The
Agreement permits, but does not require, the party designated in the Agreement
to purchase all the Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Stated Principal Balance of the
Mortgage Loans at the time of purchase being less than or equal to 10% of the
aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and neither the Trustee nor the Securities Administrator assume
any responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Securities Administrator, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated:
                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:___________________________________
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

                  This is one of the Class R Certificates referred to in the
within-mentioned Agreement.

                                          WELLS FARGO BANK, N.A.
                                          as Securities Administrator

                                          By:___________________________________
                                                      Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

<TABLE>
<CAPTION>

<S>                        <C>                                <C>                       <C>
         TEN COM -         as tenants in common               UNIF GIFT MIN ACT -             CUSTODIAN
                                                                                          -----------------
                                                                                        (Cust)   (Minor)
         TEN ENT -         as tenants by the entireties                                 under Uniform Gifts to
                                                                                        Minors Act
         JT TEN -          as joint tenants with right if                                _________________
                           survivorship and not as tenants                                    (State)
                           in common
</TABLE>

                  Additional abbreviations may also be used though not in the
above list.

                                   ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto___________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to____% evidenced by the within Asset-Backed Pass-
Through Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

                  I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following
address:_______________________________________________________________________
_______________________________________________________________________________

Dated:

                                          _____________________________________
                                          Signature by or on behalf of assignor

                                          _____________________________________
                                          Signature Guaranteed

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________ for the account of ___________________________,
account number______________ or, if mailed by check, to ________________________
_______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
________________________________________________________________________________
_______________________________________________________________________________>

         This information is provided by ______________________________________,
the assignee named above, or ____________________________________, as its agent.

<PAGE>

                                   EXHIBIT B-1

                    FORM OF TRANSFEROR REPRESENTATION LETTER

                                     [Date]

Wells Fargo Bank, N.A.
Sixth and Marquette Avenue
Minneapolis, Minnesota 55479
Attention: Corporate Trust DBALT-2005-2

         Re:      Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series
                  2005-2 Asset Backed Pass-Through Certificates Class B-3, Class
                  B-4 and Class B-5 Certificates
                  ------------------------------

Ladies and Gentlemen:

                  In connection with the transfer by ______________________ (the
"Transferor") to ___________________ (the "Transferee") of the captioned
mortgage pass-through certificates (the "Certificates"), the Transferor hereby
certifies as follows:

                  Neither the Transferor nor anyone acting on its behalf has (a)
offered, pledged, sold, disposed of or otherwise transferred any Certificate,
any interest in any Certificate or any other similar security to any person in
any manner, (b) has solicited any offer to buy or to accept a pledge,
disposition or other transfer of any Certificate, any interest in any
Certificate or any other similar security from any person in any manner, (c) has
otherwise approached or negotiated with respect to any Certificate, any interest
in any Certificate or any other similar security with any person in any manner,
(d) has made any general solicitation by means of general advertising or in any
other manner, (e) has taken any other action, that (in the case of each of
subclauses (a) through (e) above) would constitute a distribution of the
Certificates under the Securities Act of 1933, as amended (the "1933 Act"), or
would render the disposition of any Certificate a violation of Section 5 of the
1933 Act or any state securities law or would require registration or
qualification pursuant thereto. The Transferor will not act, nor has it
authorized or will it authorize any person to act, in any manner set forth in
the foregoing sentence with respect to any Certificate. The Transferor will not
sell or otherwise transfer any of the Certificates, except in compliance with
the provisions of that certain Pooling and Servicing Agreement, dated as of
February 1, 2005, among Deutsche Alt-A Securities, Inc. as Depositor, Wells
Fargo Bank, N.A. as Master Servicer and Securities Administrator and HSBC Bank
USA, National Association as trustee (the "Pooling and Servicing Agreement"),
pursuant to which Pooling and Servicing Agreement the Certificates were issued.

<PAGE>

                  Capitalized terms used but not defined herein shall have the
meanings assigned thereto in the Pooling and Servicing Agreement.

                                          Very truly yours,

                                          [Transferor]

                                          By: _________________________________
                                          Name:
                                          Title:

<PAGE>

                    FORM OF TRANSFEREE REPRESENTATION LETTER

                                     [Date]

Wells Fargo Bank, N.A.
Sixth and Marquette Avenue
Minneapolis, Minnesota 55479
Attention: Corporate Trust DBALT 2005-2

         Re:      Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series
                  2005-2 Asset Backed Pass-Through Certificates Class B-3, Class
                  B-4 and Class B-5 Certificates
                  --------------------------------------------------------------

Ladies and Gentlemen:

                  In connection with the purchase from
______________________________ (the "Transferor") on the date hereof of the
captioned trust certificates (the "Certificates"), (the "Transferee") hereby
certifies as follows:

                           1. The Transferee is a "qualified institutional
                  buyer" as that term is defined in Rule 144A ("Rule 144A")
                  under the Securities Act of 1933 (the "1933 Act") and has
                  completed either of the forms of certification to that effect
                  attached hereto as Annex 1 or Annex 2. The Transferee is aware
                  that the sale to it is being made in reliance on Rule 144A.
                  The Transferee is acquiring the Certificates for its own
                  account or for the account of a qualified institutional buyer,
                  and understands that such Certificate may be resold, pledged
                  or transferred only (i) to a person reasonably believed to be
                  a qualified institutional buyer that purchases for its own
                  account or for the account of a qualified institutional buyer
                  to whom notice is given that the resale, pledge or transfer is
                  being made in reliance on Rule 144A, or (ii) pursuant to
                  another exemption from registration under the 1933 Act.

                           2. The Transferee has been furnished with all
                  information regarding (a) the Certificates and distributions
                  thereon, (b) the nature, performance and servicing of the
                  Mortgage Loans, (c) the Pooling and Servicing Agreement
                  referred to below, and (d) any credit enhancement mechanism
                  associated with the Certificates, that it has requested.

                           3. The Transferee: (a) is not an employee benefit or
                  other plan subject to the prohibited transaction provisions of
                  the Employee Retirement Income Security Act of 1974, as
                  amended ("ERISA), or Section 4975 of the Internal Revenue Code
                  of 1986, as amended (the "Code") (each, a "Plan"), or any
                  other person (including an investment manager, a named
                  fiduciary or a trustee of any Plan) acting, directly or
                  indirectly, on behalf of or purchasing any Certificate with
                  "plan assets" of any Plan within the meaning of the Department
                  of Labor ("DOL") regulation at 29 C.F.R. ss.2510.3-101 or (b)
                  (i) it is an insurance company, (ii) the source of funds used
                  to acquire or hold the certificate or interest therein is an
                  "insurance company general account," as such term is defined
                  in Prohibited Transaction Class Exemption ("PTCE") 95-60, and
                  (iii) the conditions in Sections I and III of PTCE 95-60 have
                  been satisfied.]

                  In addition, the Transferee hereby certifies, represents and
warrants to, and covenants with, the Depositor, the Trustee, the Securities
Administrator and the Master Servicer that the Transferee will not transfer such
Certificates to any Plan or person unless such Plan or person meets the
requirements set forth in paragraph 3 above.

                  All capitalized terms used but not otherwise defined herein
have the respective meanings assigned thereto in the Pooling and Servicing
Agreement, dated as of February 1, 2005, among Deutsche Alt-A Securities, Inc.
as Depositor, Wells Fargo Bank, N.A. as Master Servicer and Securities
Administrator and HSBC Bank USA, National Association as Trustee, pursuant to
which the Certificates were issued.

                                          [TRANSFEREE]

                                          By:__________________________
                                          Name:
                                          Title:

<PAGE>

                                                          ANNEX 1 TO EXHIBIT B-1
                                                          ----------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [For Transferees Other Than Registered Investment Companies]

                  The undersigned hereby certifies as follows to [name of
Transferor] (the "Transferor") and Wells Fargo Bank, N.A., as Securities
Administrator, with respect to the asset backed pass-through certificates (the
"Certificates") described in the Transferee Certificate to which this
certification relates and to which this certification is an Annex:

                  1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
entity purchasing the Certificates (the "Transferee").

                  2. In connection with purchases by the Transferee, the
Transferee is a "qualified institutional buyer" as that term is defined in Rule
144A under the Securities Act of 1933 ("Rule 144A") because (i) the Transferee
owned and/or invested on a discretionary basis $________________1 in securities
(except for the excluded securities referred to below) as of the end of the
Transferee's most recent fiscal year (such amount being calculated in accordance
with Rule 144A) and (ii) the Transferee satisfies the criteria in the category
marked below.

         ___      CORPORATION, ETC. The Transferee is a corporation (other than
                  a bank, savings and loan association or similar institution),
                  Massachusetts or similar business trust, partnership, or any
                  organization described in Section 501(c)(3) of the Internal
                  Revenue Code of 1986.

         ___      BANK. The Transferee (a) is a national bank or banking
                  institution organized under the laws of any State, territory
                  or the District of Columbia, the business of which is
                  substantially confined to banking and is supervised by the
                  State or territorial banking commission or similar official or
                  is a foreign bank or equivalent institution, and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements, A COPY OF WHICH IS
                  ATTACHED HERETO.

------------------
1 Transferee must own and/or invest on a discretionary basis at least
$100,000,000 in securities unless Transferee is a dealer, and, in that case,
Transferee must own and/or invest on a discretionary basis at least $10,000,000
in securities.

<PAGE>

         ___      SAVINGS AND LOAN. The Transferee (a) is a savings and loan
                  association, building and loan association, cooperative bank,
                  homestead association or similar institution, which is
                  supervised and examined by a State or Federal authority having
                  supervision over any such institutions or is a foreign savings
                  and loan association or equivalent institution and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements, A COPY OF WHICH IS
                  ATTACHED HERETO.

         ___      BROKER-DEALER. The Transferee is a dealer registered pursuant
                  to Section 15 of the Securities Exchange Act of 1934.

         ___      INSURANCE COMPANY. The Transferee is an insurance company
                  whose primary and predominant business activity is the writing
                  of insurance or the reinsuring of risks underwritten by
                  insurance companies and which is subject to supervision by the
                  insurance commissioner or a similar official or agency of a
                  State, territory or the District of Columbia.

         ___      STATE OR LOCAL PLAN. The Transferee is a plan established and
                  maintained by a State, its political subdivisions, or any
                  agency or instrumentality of the State or its political
                  subdivisions, for the benefit of its employees.

         ___      ERISA PLAN. The Transferee is an employee benefit plan within
                  the meaning of Title I of the Employee Retirement Income
                  Security Act of 1974.

         ___      INVESTMENT ADVISOR The Transferee is an investment advisor
                  registered under the Investment Advisers Act of 1940.

                  3. The term "SECURITIES" as used herein DOES NOT INCLUDE (i)
securities of issuers that are affiliated with the Transferee, (ii) securities
that are part of an unsold allotment to or subscription by the Transferee, if
the Transferee is a dealer, (iii) securities issued or guaranteed by the U.S. or
any instrumentality thereof, (iv) bank deposit notes and certificates of
deposit, (v) loan participations, (vi) repurchase agreements, (vii) securities
owned but subject to a repurchase agreement and (viii) currency, interest rate
and commodity swaps.

                  4. For purposes of determining the aggregate amount of
securities owned and/or invested on a discretionary basis by the Transferee, the
Transferee used the cost of such securities to the Transferee and did not
include any of the securities referred to in the preceding paragraph. Further,
in determining such aggregate amount, the Transferee may have included
securities owned by subsidiaries of the Transferee, but only if such
subsidiaries are consolidated with the Transferee in its financial statements
prepared in accordance with generally accepted accounting principles and if the
investments of such subsidiaries are managed under the Transferee's direction.
However, such securities were not included if the Transferee is a
majority-owned, consolidated subsidiary of another enterprise and the Transferee
is not itself a reporting company under the Securities Exchange Act of 1934.

                  5. The Transferee acknowledges that it is familiar with Rule
144A and understands that the Transferor and other parties related to the
Certificates are relying and will continue to rely on the statements made herein
because one or more sales to the Transferee may be in reliance on Rule 144A.

         ___      ___     Will the Transferee be purchasing the Certificates
         Yes      No      only for the Transferee's own account?

                  6. If the answer to the foregoing question is "no", the
Transferee agrees that, in connection with any purchase of securities sold to
the Transferee for the account of a third party (including any separate account)
in reliance on Rule 144A, the Transferee will only purchase for the account of a
third party that at the time is a "qualified institutional buyer" within the
meaning of Rule 144A. In addition, the Transferee agrees that the Transferee
will not purchase securities for a third party unless the Transferee has
obtained a current representation letter from such third party or taken other
appropriate steps contemplated by Rule 144A to conclude that such third party
independently meets the definition of "qualified institutional buyer" set forth
in Rule 144A.

                  7. The Transferee will notify each of the parties to which
this certification is made of any changes in the information and conclusions
herein. Until such notice is given, the Transferee's purchase of the
Certificates will constitute a reaffirmation of this certification as of the
date of such purchase. In addition, if the Transferee is a bank or savings and
loan as provided above, the Transferee agrees that it will furnish to such
parties updated annual financial statements promptly after they become
available.

Dated:
                                          ___________________________________
                                          Print Name of Transferee

                                          By:________________________________
                                          Name:
                                          Title:

<PAGE>

                                                          ANNEX 2 TO EXHIBIT B-1
                                                          ----------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [For Transferees That Are Registered Investment Companies]

                  The undersigned hereby certifies as follows to [name of
Transferor] (the "Transferor") and Wells Fargo Bank, N.A., as Securities
Administrator, with respect to the asset backed pass-through certificates (the
"Certificates") described in the Transferee Certificate to which this
certification relates and to which this certification is an Annex:

                  1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the entity purchasing the
Certificates (the "Transferee") or, if the Transferee is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933 ("Rule 144A") because the Transferee is part of a Family of
Investment Companies (as defined below), is such an officer of the investment
adviser (the "Adviser").

                  2. In connection with purchases by the Transferee, the
Transferee is a "qualified institutional buyer" as defined in Rule 144A because
(i) the Transferee is an investment company registered under the Investment
Company Act of 1940, and (ii) as marked below, the Transferee alone, or the
Transferee's Family of Investment Companies, owned at least $100,000,000 in
securities (other than the excluded securities referred to below) as of the end
of the Transferee's most recent fiscal year. For purposes of determining the
amount of securities owned by the Transferee or the Transferee's Family of
Investment Companies, the cost of such securities was used.

         ___      The Transferee owned $________________________ in securities
                  (other than the excluded securities referred to below) as of
                  the end of the Transferee's most recent fiscal year (such
                  amount being calculated in accordance with Rule 144A).

         ___      The Transferee is part of a Family of Investment Companies
                  which owned in the aggregate $_______________ in securities
                  (other than the excluded securities referred to below) as of
                  the end of the Transferee's most recent fiscal year (such
                  amount being calculated in accordance with Rule 144A).

                  3. The term "FAMILY OF INVESTMENT COMPANIES" as used herein
means two or more registered investment companies (or series thereof) that have
the same investment adviser or investment advisers that are affiliated (by
virtue of being majority owned subsidiaries of the same parent or because one
investment adviser is a majority owned subsidiary of the other).

                  4. The term "SECURITIES" as used herein does not include (i)
securities of issuers that are affiliated with the Transferee or are part of the
Transferee's Family of Investment Companies, (ii) securities issued or
guaranteed by the U.S. or any instrumentality thereof, (iii) bank deposit notes
and certificates of deposit, (iv) loan participations, (v) repurchase
agreements, (vi) securities owned but subject to a repurchase agreement and
(vii) currency, interest rate and commodity swaps.

                  5. The Transferee is familiar with Rule 144A and understands
that the parties to which this certification is being made are relying and will
continue to rely on the statements made herein because one or more sales to the
Transferee will be in reliance on Rule 144A. In addition, the Transferee will
only purchase for the Transferee's own account.

                  6. The undersigned will notify the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice, the Transferee's purchase of the Certificates will constitute
a reaffirmation of this certification by the undersigned as of the date of such
purchase.

Dated:
                                          _____________________________________
                                          Print Name of Transferee or Advisor

                                          By:__________________________________
                                          Name:
                                          Title:

                                          IF AN ADVISER:

                                          _____________________________________
                                          Print Name of Transferee

<PAGE>

                    FORM OF TRANSFEREE REPRESENTATION LETTER

                  The undersigned hereby certifies on behalf of the purchaser
named below (the "Purchaser") as follows:

                  1. I am an executive officer of the Purchaser.

                  2. The Purchaser is a "qualified institutional buyer", as
         defined in Rule 144A, ("Rule 144A") under the Securities Act of 1933,
         as amended.

                  3. As of the date specified below (which is not earlier than
         the last day of the Purchaser's most recent fiscal year), the amount of
         "securities", computed for purposes of Rule 144A, owned and invested on
         a discretionary basis by the Purchaser was in excess of $100,000,000.

Name of Purchaser  _____________________________________________________________

By: (Signature)  _______________________________________________________________

Name of Signatory  _____________________________________________________________

Title  _________________________________________________________________________

Date of this certificate  ______________________________________________________

Date of information provided in paragraph 3  ___________________________________

<PAGE>

                                   EXHIBIT B-2

                    FORM OF TRANSFEROR REPRESENTATION LETTER

                                                              ____________, 20__

Wells Fargo Bank, N.A.
Sixth and Marquette Avenue
Minneapolis, Minnesota 55479
Attention: Corporate Trust DBALT 2005-2

         Re:      Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series
                  2005-2 Asset Backed Pass-Through Certificates Class B-3, Class
                  B-4 and Class B-5 Certificates
                  --------------------------------------------------------------

Ladies and Gentlemen:

                  In connection with the transfer by ________________ (the
"Transferor") to __________________________ (the "Transferee") of the captioned
mortgage pass-through certificates (the "Certificates"), the Transferor hereby
certifies as follows:

                  Neither the Seller nor anyone acting on its behalf has (a)
offered, pledged, sold, disposed of or otherwise transferred any Certificate,
any interest in any Certificate or any other similar security to any person in
any manner, (b) has solicited any offer to buy or to accept a pledge,
disposition or other transfer of any Certificate, any interest in any
Certificate or any other similar security from any person in any manner, (c) has
otherwise approached or negotiated with respect to any Certificate, any interest
in any Certificate or any other similar security with any person in any manner,
(d) has made any general solicitation by means of general advertising or in any
other manner, or (e) has taken any other action, that (as to any of (a) through
(e) above) would constitute a distribution of the Certificates under the
Securities Act of 1933 (the "Act'), that would render the disposition of any
Certificate a violation of Section 5 of the Act or any state securities law, or
that would require registration or qualification pursuant thereto. The Seller
will not act, in any manner set forth in the foregoing sentence with respect to
any Certificate. The Seller has not and will not sell or otherwise transfer any
of the Certificates, except in compliance with the provisions of the Pooling and
Servicing Agreement.

                                          Very truly yours,

                                          ______________________________________
                                          (Transferor)

                                          By:___________________________________
                                          Name:
                                          Title:

<PAGE>

                            FORM OF TRANSFEREE LETTER

                                                           _______________, 20__

Wells Fargo Bank, N.A.
Sixth and Marquette Avenue
Minneapolis, Minnesota 55479
Attention: Corporate Trust DBALT 2005-2

         Re:      Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series
                  2005-2 Asset Backed Pass-Through Certificates Class B-3, Class
                  B-4 and Class B-5 Certificates
                  --------------------------------------------------------------

Ladies and Gentlemen:

                  In connection with the transfer by ______________________ (the
"Transferor") to __________________________ (the "Transferee") of the captioned
mortgage pass-through certificates (the "Certificates"), the Transferee hereby
certifies as follows:

                  1. The Transferee understands that (a) the Certificates have
         not been and will not be registered or qualified under the Securities
         Act of 1933, as amended (the "Act") or any state securities law, (b)
         the Depositor is not required to so register or qualify the
         Certificates, (c) the Certificates may be resold only if registered and
         qualified pursuant to the provisions of the Act or any state securities
         law, or if an exemption from such registration and qualification is
         available, (d) the Pooling and Servicing Agreement contains
         restrictions regarding the transfer of the Certificates and (e) the
         Certificates will bear a legend to the foregoing effect.

                  2. The Transferee is acquiring the Certificates for its own
         account for investment only and not with a view to or for sale in
         connection with any distribution thereof in any manner that would
         violate the Act or any applicable state securities laws.

                  3. The Transferee is (a) a substantial, sophisticated
         institutional investor having such knowledge and experience in
         financial and business matters, and, in particular, in such matters
         related to securities similar to the Certificates, such that it is
         capable of evaluating the merits and risks of investment in the
         Certificates, (b) able to bear the economic risks of such an investment
         and (c) an "accredited investor" within the meaning of Rule 501(a)
         promulgated pursuant to the Act.

                  4. The Transferee has been furnished with, and has had an
         opportunity to review (a) a copy of the Pooling and Servicing Agreement
         and (b) such other information concerning the Certificates, the
         Mortgage Loans and the Depositor as has been requested by the
         Transferee from the Depositor or the Transferor and is relevant to the
         Transferee's decision to purchase the Certificates. The Transferee has
         had any questions arising from such review answered by the Depositor or
         the Transferor to the satisfaction of the Transferee.

                  5. The Transferee has not and will not nor has it authorized
         or will it authorize any person to (a) offer, pledge, sell, dispose of
         or otherwise transfer any Certificate, any interest in any Certificate
         or any other similar security to any person in any manner, (b) solicit
         any offer to buy or to accept a pledge, disposition of other transfer
         of any Certificate, any interest in any Certificate or any other
         similar security from any person in any manner, (c) otherwise approach
         or negotiate with respect to any Certificate, any interest in any
         Certificate or any other similar security with any person in any
         manner, (d) make any general solicitation by means of general
         advertising or in any other manner or (e) take any other action, that
         (as to any of (a) through (e) above) would constitute a distribution of
         any Certificate under the Act, that would render the disposition of any
         Certificate a violation of Section 5 of the 1933 Act or any state
         securities law, or that would require registration or qualification
         pursuant thereto. The Transferee will not sell or otherwise transfer
         any of the Certificates, except in compliance with the provisions of
         the Pooling and Servicing Agreement.

                  6. The Transferee: (a) is not an employee benefit or other
         plan subject to the prohibited transaction provisions of the Employee
         Retirement Income Security Act of 1974, as amended ("ERISA"), or
         Section 4975 of the Internal Revenue Code of 1986, as amended (the
         "Code") (each, a "Plan"), or any other person (including an investment
         manager, a named fiduciary or a trustee of any Plan) acting, directly
         or indirectly, on behalf of or purchasing any Certificate with "plan
         assets" of any Plan within the meaning of the Department of Labor
         ("DOL") regulation at 29 C.F.R. ss.12510.3-101 or (b) (i) it is an
         insurance company, (ii) the source of funds used to acquire or hold the
         certificate or interest therein is an "insurance company general
         account," as such term is defined in Prohibited Transaction Class
         Exemption ("PTCE") 95-60, and (iii) the conditions in Sections I and
         III of PTCE 95-60 have been satisfied.]

                  In addition, the Transferee hereby certifies, represents and
warrants to, and covenants with, the Depositor, the Trustee, the Securities
Administrator and the Master Servicer that the Transferee will not transfer such
Certificates to any Plan or person unless such Plan or person meets the
requirements set forth in paragraph 6 above.

                                          Very truly yours,

                                          By:________________________________
                                          Name:
                                          Title:

<PAGE>

                                   EXHIBIT B-3

                    FORM OF REGULATION S TRANSFER CERTIFICATE

[Date]

Wells Fargo Bank, N.A.
Sixth and Marquette Avenue
Minneapolis, Minnesota 55479
Attention: Corporate Trust DBALT 2005-2

         Re:      Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series
                  2005-2 Asset Backed Pass-Through Certificates Class B-3, Class
                  B-4, Class B-5
                  --------------------------------------------------------------

Ladies and Gentlemen:

                  Reference is hereby made to the Pooling and Servicing
Agreement (the "Agreement"), dated as of February 1, 2005, among Deutsche Alt-A
Securities, Inc. (the "Depositor"), Wells Fargo Bank, N.A., as master and
securities administrator (the "Master Servicer") and HSBC Bank USA, National
Association, as trustee (the "Trustee"). Capitalized terms used herein but not
defined herein shall have the meanings assigned thereto in the Agreement.

                  This letter relates to U.S. $[__________] Certificate
Principal Balance of Class B-[3][4][5] Certificates (the "Certificates") which
are held in the name of [name of transferor] (the "Transferor") to effect the
transfer of the Certificates to a person who wishes to take delivery thereof in
the form of an equivalent beneficial interest [name of transferee] (the
"Transferee").

                  In connection with such request, the Transferor hereby
certifies that such transfer has been effected in accordance with the transfer
restrictions set forth in the Agreement and the private placement memorandum
dated February 25, 2005 relating to the Certificates and that the following
additional requirements (if applicable) were satisfied:

                  (a) the offer of the Certificates 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 were made in contravention of
the requirements of Rule 903(b) or 904(b) of Regulation S, as applicable;

                  (d) the transfer or exchange is not part of a plan or scheme
to evade the registration requirements of the Securities Act;

                  (e) the Transferee is not a U.S. Person, as defined in
Regulation S under the Securities Act;

                  (f) the transfer was made in accordance with the applicable
provisions of Rule 903(b)(2) or (3) or Rule 904(b)(1), as the case may be; and

                  (g) the Transferee understands that the Certificates have not
been and will not be registered under the Securities Act, that any offers, sales
or deliveries of the Certificates purchased by the Transferee in the United
States or to U.S. persons prior to the date that is 40 days after the later of
(i) the commencement of the offering of the Certificates and (ii) the Closing
Date, may constitute a violation of United States law, and that (x)
distributions of principal and interest and (y) the exchange of beneficial
interests in a Temporary Regulation S Global Certificate for beneficial
interests in the related Permanent Regulation S Global Certificate, in each
case, will be made in respect of such Certificates only following the delivery
by the Holder of a certification of non-U.S. beneficial ownership, at the times
and in the manner set forth in the Agreement.

<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.

                                          [Name of Transferor]

                                          By:__________________________________
                                          Name:
                                          Title:

<PAGE>

                                   EXHIBIT B-4

                         FORM OF CLEARSTREAM CERTIFICATE

[Date]

HSBC Bank USA
452 Fifth Avenue
New York, New York 10018
Attention: Deutsche Alt-A Securities Trust 2005-2

Wells Fargo Bank, N.A.
Sixth Street & Marquette Avenue
Minneapolis, Minnesota 55479
Attention:        Deutsche Alt-A Securities, Inc., 2005-2

         Re:      Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series
                  2005-2 Mortgage Pass-through Certificates, (the "Trust") Class
                  [B-3, B-4, B-5] Certificates (The "Certificates")
                  -------------------------------------------------------

Ladies and Gentlemen:

                  Reference is hereby made to the Pooling and Servicing
Agreement (the "Agreement"), dated as of February 1, 2005, among Deutsche
Mortgage Securities, Inc. (the "Depositor"), Wells Fargo Bank, N.A., as master
servicer and securities administrator (the "Master Servicer") and HSBC Bank USA,
as trustee (the "Trustee"). Capitalized terms used herein but not defined herein
shall have the meanings assigned thereto in the Agreement.

                  This is to certify that, based solely on certificates we have
received in writing, by tested telex or by electronic transmissions from member
organizations appearing in our records as persons being entitled to a portion of
the Certificates set forth below (our "Member Organizations"), substantially to
the effect set forth in Annex A hereto, U.S. $________ certificate balance of
the above-captioned Certificates held by us or on our behalf are beneficially
owned by non-U.S.] person(s). As used in this paragraph, the term "U.S. person"
has the meaning given to it by Regulation S under the United States Securities
Act of 1933, as amended (the "Securities Act").

                  We further certify (i) that we are not making available
herewith for exchange any portion of the Temporary Regulation S Global
Certificates excepted in such certificates and (ii) that as of the date hereof
we have not received any notification from any of our Member Organizations to
the effect that the statements made by such Member Organizations with respect to
any interest in the Certificates identified above are no longer true and cannot
be relied upon as of the date hereof. We understand that this certification is
required in connection with certain securities laws of the United States. In
connection therewith, if administrative or legal proceedings are commenced or
threatened in connection with this certificate is or would be relevant, we
irrevocably authorized you to produce this certificate to any interested party
in such proceedings.

                                          Yours faithfully,

                                          [[Insert Name of Depositary for
                                          Euroclear], as operator of the
                                          Euroclear system]

                                          or

                                          [CLEARSTREAM, SOCIETE ANONYME]

                                          By:___________________________________

<PAGE>

                                                          ANNEX A TO EXHIBIT B-4
                                                          ----------------------

                     FORM OF MEMBER ORGANIZATION CERTIFICATE

[(Insert Name of Depositary for
Euroclear), as operator of the
Euroclear system or Clearstream, societe anonyme]

         Re:      Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series
                  2005-2 Mortgage Pass-through Certificates, (the "Trust") Class
                  [B-3, B-4, B-5] Certificates (The "Certificates")
                  -------------------------------------------------------

Ladies and Gentlemen:

                  Reference is hereby made to the Pooling and Servicing
Agreement (the "Agreement"), dated as of February 1, 2005, among Deutsche
Mortgage Securities, Inc. (the "Depositor"), Wells Fargo Bank , N.A., as master
servicer and securities administrator (the "Master Servicer") and HSBC Bank USA,
as trustee (the "Trustee"). Capitalized terms used herein but not defined herein
shall have the meanings assigned thereto in the Agreement.

                  This is to certify that, as of the date hereof and except as
set forth below, the Certificates held by you for our account [except $
________________ of such beneficial interest in such Certificates in respect of
which we are not able to certify and as to which we understand the exercise of
any rights to payments thereon or the exchange for Permanent Regulation S Global
Certificates cannot be made until we do so certify,] are beneficially owned by
non-U.S. persons. As used in this paragraph, the term "U.S. person" has the
meaning given to it by Regulation S under the Securities Act.

                  We undertake to advise you promptly by tested telex on or
prior to the date on which you intend to submit your certification relating to
the Certificates held by you for our account in accordance with your documented
procedures if any applicable statement herein is not correct on such date, and
in the absence of any such notification it may be assumed that this certificate
applies as of such date.

Dated: ____________, 200__(1)

                                         Faithfully,

                                         [Name of Person giving the certificate]

------------------
(1) To be dated no earlier than 15 days prior to the event to which the
certification relates.

<PAGE>

                                    EXHIBIT C

                           FORM OF TRANSFER AFFIDAVIT

                                          Affidavit pursuant to Section
                                          860E(e)(4) of the Internal Revenue
                                          Code of 1986 as amended and for other
                                          purposes

STATE OF          )
                  )ss:
COUNTY OF         )

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

                  1. That he/she is [Title of Officer] of [Name of Investor]
(the "Investor"), a [savings institution] [corporation] duly organized and
existing under the laws of [the State of _____] [the United States], on behalf
of which he makes this affidavit.

                  2. That (i) the Investor is not a "disqualified organization"
as defined in Section 860E(e)(5) of the Internal Revenue Code of 1986, as
amended (the "Code"), and will not be a disqualified organization as of [Closing
Date] [date of purchase]; (ii) it is not acquiring the Deutsche Alt-A
Securities, Inc. Mortgage Loan Trust, Series 2005-2 Mortgage Pass-Through
Certificates, Class R Certificates (the "Residual Certificates") for the account
of a disqualified organization; (iii) it consents to any amendment of the
Pooling and Servicing Agreement that shall be deemed necessary by Deutsche Alt-A
Securities, Inc. (upon advice of counsel) to constitute a reasonable arrangement
to ensure that the Residual Certificates will not be owned directly or
indirectly by a disqualified organization; and (iv) it will not transfer such
Residual Certificates unless (a) it has received from the transferee an
affidavit in substantially the same form as this affidavit containing these same
four representations and (b) as of the time of the transfer, it does not have
actual knowledge that such affidavit is false.

                  3. That the Investor is one of the following: (i) a citizen or
resident of the United States, (ii) a corporation or partnership (including an
entity treated as a corporation or partnership for federal income tax purposes)
created or organized in, or under the laws of, the United States or any state
thereof or the District of Columbia (except, in the case of a partnership, to
the extent provided in regulations), provided that no partnership or other
entity treated as a partnership for United States federal income tax purposes
shall be treated as a United States Person unless all persons that own an
interest in such partnership either directly or through any entity that is not a
corporation for United States federal income tax purposes are United States
Persons, (iii) an estate whose income is subject to United States federal income
tax regardless of its source, or (iv) a trust other than a "foreign trust," as
defined in Section 7701 (a)(31) of the Code.

                  4. That the Investor's taxpayer identification number is
________________.

                  5. That no purpose of the acquisition of the Residual
Certificates is to avoid or impede the assessment or collection of tax.

                  6. That the Investor understands that, as the holder of the
Residual Certificates, the Investor may incur tax liabilities in excess of any
cash flows generated by such Residual Certificates.

                  7. That the Investor intends to pay taxes associated with
holding the Residual Certificates as they become due.

                  8. The Investor has provided the Securities Administrator with
an opinion of counsel on which the Trustee, the Depositor, the Master Servicer
and the Securities Administrator may rely, acceptable to and in form and
substance satisfactory to the Trustee to the effect that the purchase of
Certificates is permissible under applicable law, will not constitute or result
in any non-exempt prohibited transaction under ERISA or Section 4975 of the Code
and will not subject the Trust Fund, the Trustee, the Depositor, the Master
Servicer or the Securities Administrator to any obligation or liability
(including obligations or liabilities under ERISA or Section 4975 of the Code)
in addition to those undertaken in the Pooling and Servicing Agreement.

                  IN WITNESS WHEREOF, the Investor 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 INVESTOR]

                                          By:__________________________________
                                                [Name of Officer]
                                                [Title of Officer]

                                                [Address of Investor for receipt
                                                of distributions]

                                                Address of Investor
                                                for receipt of tax information:

<PAGE>

                  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 Investor, 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 Investor.

                  Subscribed and sworn before me this ___ day of _________,
20___.

NOTARY PUBLIC

STATE OF        )
                )ss:
COUNTY OF       )

My commission expires the ___ day of ___________________, 20___.

<PAGE>

                                   SCHEDULE 1

                                  LOAN SCHEDULE

<PAGE>

                                   SCHEDULE 2

                           PREPAYMENT CHARGE SCHEDULE

                                 FILED BY PAPER

<PAGE>

                                   SCHEDULE 3

                SERVICING ADVANCES INCURRED PRIOR TO CUT-OFF DATE

                                      None.Stock Purchase Agreement

    

       

      
        
          

        

      

      
        STOCK
          PURCHASE AGREEMENT

         

        BY
          AND
          AMONG

         

        OHI
          ASSET
          (OH), LLC,
          AS
          PURCHASER, AND

                                          OMEGA
          HEALTHCARE INVESTORS, INC.,
          AS PURCHASER PARENT

         

        AND

         

        HOLLIS
          J.
          GARFIELD, ALBERT M. WIGGINS, JR., A. DAVID WIGGINS, ESTATE OF EVELYN R.
          GARFIELD, EVELYN R. GARFIELD REVOCABLE TRUST, SG TRUST B--HOLLIS TRUST,
          EVELYN
          GARFIELD FAMILY TRUST AND EVELYN GARFIELD REMAINDER TRUST, AS
          SHAREHOLDERS

         

        AND

         

        BALDWIN
          HEALTH CENTER, INC., 

         

        COPLEY
          HEALTH CENTER, INC.,

         

        HANOVER
          HOUSE, INC., 

         

        HOUSE
          OF
          HANOVER, LTD.,

         

        PAVILLION
          NORTH, LLP, D/B/A WEXFORD HOUSE NURSING CENTER,

         

        PAVILLION
          NURSING CENTER NORTH, INC.,

         

        PAVILLION
          NORTH PARTNERS INC., AND 

         

        THE
          SUBURBAN PAVILION, INC.,

         

        AS
          THE
          COMPANIES

         

        AND
          

         

        OMG
          MSTR
          LSCO, LLC, AS THE NEW OPERATOR, AND

                                        COMMUNICARE
          HEALTH
          SERVICES, INC., AS NEW OPERATOR PARENT

         

        AND

         

        EMERY
          MEDICAL MANAGEMENT CO., AS A LIMITED PARTY

         

         

         

         

      

      June
        10,
        2005

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          EXECUTION VERSION

        

      

      
        	
                ARTICLE
                  I DEFINITIONS     

              	
                1

              	 
	
                1.01. Certain
                  Defined Terms.

              	
                1

              	 
	
                1.02. Other
                  Defined Terms

              	
                6

              	 
	
                1.03. Construction.

              	
                8

              	 
	
                ARTICLE
                  II PURCHASE AND SALE OF COMPANY SHARES

              	
                8

              	 
	
                2.01. Purchase
                  and Sale

              	
                9

              	 
	
                2.02. Purchase
                  Price; Allocation.

              	
                9

              	 
	
                2.03. Working
                  Capital Adjustment Amount and Payment

              	
                9

              	 
	
                2.04. Working
                  Capital Adjustment Procedure.

              	
                10

              	 
	
                2.05. Accounts
                  Receivable Adjustment.

              	
                11

              	 
	
                2.06. Closing.

              	
                13

              	 
	
                ARTICLE
                  III REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANIES

              	
                16

              	 
	
                3.01. Organization
                  and Power.

              	
                16

              	 
	
                3.02. Authorization;
                  No Violation

              	
                16

              	 
	
                3.03. Subsidiaries

              	
                17

              	 
	
                3.04. Financial
                  Statements

              	
                17

              	 
	
                3.05. Capitalization.

              	
                17

              	 
	
                3.06. Title
                  and Condition of Properties.

              	
                18

              	 
	
                3.07. Licenses.

              	
                19

              	 
	
                3.08. Accounts
                  Receivable

              	
                19

              	 
	
                3.09. Inventories

              	
                19

              	 
	
                3.10. Tax
                  Matters.

              	
                19

              	 
	
                3.11. Contracts
                  and Commitments.

              	
                22

              	 
	
                3.12. Accreditation;
                  Medicare and Medicaid; Third Party Payor Reimbursement.

              	
                23

              	 
	
                3.13. Intellectual
                  Property Rights.

              	
                26

              	 
	
                3.14. Litigation;
                  Proceedings

              	
                26

              	 
	
                3.15. Brokerage

              	
                27

              	 
	
                3.16. Governmental
                  Consent, etc.

              	
                27

              	 
	
                3.17. Employees
                  and Agents.

              	
                27

              	 
	
                3.18. Employee
                  Benefit Plans

              	
                27

              	 
	
                3.19. Insurance

              	
                30

              	 
	
                3.20. Affiliate
                  Transactions

              	
                30

              	 
	
                3.21. Compliance
                  with Laws; Licenses; Certain Operations

              	
                31

              	 
	
                3.22. Environmental
                  Matters.

              	
                31

              	 
	
                3.23. Bank
                  Accounts

              	
                32

              	 
	
                3.24. FET
                  Lien

              	
                33

              	 
	
                3.25. Rent
                  Roll; Bed Tax and Fees.

              	
                33

              	 
	
                3.26. Resident
                  Trust Funds

              	
                33

              	 
	
                3.27. Absence
                  of Certain Developments

              	
                33

              	 
	
                3.28. Absence
                  of Undisclosed Liabilities

              	
                35

              	 
	
                3.29. Proceedings
                  and Orders

              	
                35

              	 
	
                3.30. Record
                  Retention Policies

              	
                35

              	 
	
                3.31. Disclosure

              	
                35

              	 
	
                ARTICLE
                  IV REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS

              	
                35

              	 
	
                4.01. Authorization

              	
                35

              	 
	
                4.02. No
                  Violation

              	
                35

              	 
	
                4.03. Company
                  Shares

              	
                36

              	 
	
                4.04. Governmental
                  Consents, etc.

              	
                36

              	 
	
                4.05. Proceedings
                  and Orders

              	
                36

              	 
	
                4.06. Sufficient
                  Funds

              	
                36

              	 
	
                ARTICLE
                  V REPRESENTATIONS AND WARRANTIES OF THE PURCHASER AND THE PURCHASER
                  PARENT

              	
                36

              	 
	
                5.01. Company
                  Organization and Power

              	
                36

              	 
	
                5.02. Authorization

              	
                36

              	 
	
                5.03. No
                  Violation

              	
                37

              	 
	
                5.04. Governmental
                  Consent, etc.

              	
                37

              	 
	
                5.05. Purchase
                  for Investment

              	
                37

              	 
	
                5.06. Proceedings
                  and Orders

              	
                37

              	 
	
                5.07. Sufficient
                  Funds

              	
                37

              	 
	
                ARTICLE
                  VI REPRESENTATIONS AND WARRANTIES OF THE NEW OPERATOR AND THE NEW
                  OPERATOR
                  PARENT

              	
                37

              	 
	
                6.01. Corporate
                  Organization and Power

              	
                37

              	 
	
                6.02. Authorization

              	
                38

              	 
	
                6.03. No
                  Violation

              	
                38

              	 
	
                6.04. Governmental
                  Consent, etc.

              	
                38

              	 
	
                6.05. Proceedings
                  and Orders

              	
                38

              	 
	
                6.06. Sufficient
                  Funds

              	
                38

              	 
	
                ARTICLE
                  VII CERTAIN COVENANTS

              	
                38

              	 
	
                7.01. Access
                  and Investigation; Record Retention and Transfer.

              	
                39

              	 
	
                7.02. Employment
                  Matters; Benefit Plans

              	
                40

              	 
	
                7.03. Cost
                  Reports.

              	
                42

              	 
	
                7.04. Survey
                  Reports

              	
                43

              	 
	
                7.05. Resident
                  Trust Accounts

              	
                43

              	 
	
                7.06. Affirmative
                  Covenants

              	
                43

              	 
	
                7.07. Negative
                  Covenants

              	
                44

              	 
	
                7.08. Shareholder
                  Covenant Not to Compete.

              	
                46

              	 
	
                7.09. Hired
                  Employees

              	
                46

              	 
	
                7.10. Cooperation
                  Regarding Licensing Matters

              	
                46

              	 
	
                7.11. Regulatory
                  and Other Authorizations; Consents.

              	
                46

              	 
	
                7.12. Exclusivity

              	
                47

              	 
	
                7.13. Monthly
                  Financial Statements

              	
                47

              	 
	
                7.14. Transition

              	
                47

              	 
	
                7.15. Proration
                  and Expenses.

              	
                47

              	 
	
                7.16. [Intentionally
                  Omitted.]

              	
                49

              	 
	
                7.17. Required
                  Approvals

              	
                49

              	 
	
                7.18. Notification

              	
                49

              	 
	
                7.19. Cooperation
                  After Closing

              	
                49

              	 
	
                7.20. Deposit
                  Account Authorization Documents.

              	
                49

              	 
	
                7.21. Assignment
                  of Contracts

              	
                50

              	 
	
                ARTICLE
                  VIII CONDITIONS TO THE PURCHASER’S OBLIGATION TO CLOSE

              	
                50

              	 
	
                8.01. Conditions
                  to the Purchaser’s Obligation

              	
                50

              	 
	
                ARTICLE
                  IX CONDITIONS TO OBLIGATION OF THE SHAREHOLDERS TO CLOSE

              	
                51

              	 
	
                9.01. Conditions
                  to Obligation of the Shareholders to Close

              	
                51

              	 
	
                ARTICLE
                  X CONDITIONS TO OBLIGATION OF THE NEW OPERATOR TO CLOSE

              	
                52

              	 
	
                10.01. Conditions
                  to Obligation of the New Operator to Close

              	
                52

              	 
	
                ARTICLE
                  XI INDEMNIFICATION

              	
                53

              	 
	
                11.01. Survival

              	
                53

              	 
	
                11.02. Right
                  to Indemnification Not Affected by Knowledge

              	
                54

              	 
	
                11.03. Indemnification
                  by the Shareholders.

              	
                54

              	 
	
                11.04. Indemnification
                  by the Purchaser and the Purchaser Parent.

              	
                56

              	 
	
                11.05. Indemnification
                  by the New Operator and the New Operator Parent.

              	
                57

              	 
	
                11.06. Method
                  of Asserting Claims

              	
                57

              	 
	
                11.07. Adjustments

              	
                59

              	 
	
                11.08. Payments

              	
                59

              	 
	
                11.09. Escrow

              	
                59

              	 
	
                11.10. Exclusive
                  Remedy

              	
                59

              	 
	
                ARTICLE
                  XII TERMINATION

              	
                59

              	 
	
                12.01. Termination

              	
                59

              	 
	
                12.02. Effect
                  of Termination

              	
                60

              	 
	
                12.03. Release
                  of Deposit Amount

              	
                60

              	 
	
                12.04. Effect
                  of Closing

              	
                60

              	 
	
                ARTICLE
                  XIII ADDITIONAL AGREEMENTS

              	
                60

              	 
	
                13.01. Cooperation
                  on Tax Matters.

              	
                60

              	 
	
                13.02. Press
                  Release and Announcements

              	
                61

              	 
	
                13.03. Specific
                  Performance

              	
                61

              	 
	
                13.04. Remittances

              	
                61

              	 
	
                13.05. Efforts
                  To Consummate Closing Transactions

              	
                61

              	 
	
                ARTICLE
                  XIV MISCELLANEOUS

              	
                62

              	 
	
                14.01. Amendment

              	
                62

              	 
	
                14.02. Extension;
                  Waiver

              	
                62

              	 
	
                14.03. Entire
                  Agreement; No Third Party Beneficiaries

              	
                62

              	 
	
                14.04. Governing
                  Law; Venue; Waiver of Jury Trial.

              	
                62

              	 
	
                14.05. Notices

              	
                62

              	 
	
                14.06. Counterparts

              	
                64

              	 
	
                14.07. Successors
                  and Assigns

              	
                64

              	 
	
                14.08. Shareholders’
                  Representative

              	
                64

              	 
	
                14.09. Schedules
                  and Exhibits

              	
                64

              	 

      

      

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          EXECUTION VERSION

        

      

      STOCK
        PURCHASE AGREEMENT

       

      This
        Stock Purchase Agreement (this “Agreement”),
        dated
        as of June 10, 2005, is entered into by and among OHI Asset (OH), LLC, a
        Delaware limited liability company (the “Purchaser”),
        Omega
        Healthcare Investors, Inc., a Maryland corporation (the “Purchaser
        Parent”),
        Hollis J. Garfield (“HJG”),
        Albert M. Wiggins, Jr. (“AMW”),
        A.
        David Wiggins (“ADW”),
        Estate of Evelyn R. Garfield (“Garfield
        Estate”),
        Evelyn R. Garfield Revocable Trust (“Revocable
        Trust”),
        SG
        Trust B--Hollis Trust (“Hollis
        Trust”),
        Evelyn Garfield Family Trust (“Family
        Trust”),
        and
        Evelyn Garfield Remainder Trust (“Remainder
        Trust”)
        (each
        of HJG, AMW, ADW, Garfield Estate, Revocable Trust, Hollis Trust, Family
        Trust
        and Remainder Trust shall be referred to in this Agreement from time to time,
        collectively, as the “Shareholders”
        and
        each, individually, as a “Shareholder”),
        Baldwin Health Center, Inc. (“Baldwin”),
        Copley Health Center, Inc. (“Copley”),
        Hanover House, Inc. (“Hanover
        I”),
        House
        of Hanover, Ltd. (“Hanover
        II”),
        Pavillion North, LLP, d/b/a Wexford House Nursing Center (“Wexford”),
        Pavillion Nursing Center North, Inc. (“PNCN”),
        Pavillion North Partners, Inc. (PNP”),
        and
        The Suburban Pavillion, Inc. (“Suburban”)
        (each
        of Baldwin, Copley, Hanover I, Hanover II, Wexford, PNCN, PNP and Suburban
        shall
        be referred to in this Agreement from time to time, collectively, as the
        “Companies”
        and
        each, individually, as a “Company”),
        OMG
        MSTR LSCO, LLC an Ohio limited liability company (the “New Operator”),
        CommuniCare Health Services, Inc., an Ohio corporation (the “New
        Operator Parent”),
        and
        Emery Medical Management Co., an Ohio corporation (“EMM”),
        as a
        party only for the limited purposes explicitly set forth in this
        Agreement.

       

      BACKGROUND:

       

      WHEREAS,
        the Companies are engaged in the business (the “Business”)
        of
        operating the nursing home properties described on Exhibit
        A
        (the
“Facilities”).

       

      WHEREAS,
        the Shareholders own all of the issued and outstanding shares, membership
        interests or partnership interests of each Company as disclosed on Schedule
        3.05
        (the
“Company
        Shares”),
        and,
        accordingly, control the business and operations of each Company.

       

      WHEREAS,
        the Shareholders desire to sell to the Purchaser, and the Purchaser desires
        to
        purchase from the Shareholders, the Company Shares, all on the terms and
        conditions hereinafter set forth.

       

      WHEREAS,
        the New Operator desires to operate the Business after the Closing, all on
        the
        terms and conditions hereinafter set forth.

       

      NOW,
        THEREFORE, in consideration of the mutual covenants of the Parties as
        hereinafter set forth and other good and valuable consideration, the receipt
        and
        sufficiency of which are hereby acknowledged, the Parties hereto hereby agree
        as
        follows.

       

                                                           
        Article
        I  

                                                          Definitions

       

      1.01.  Certain
        Defined Terms.

       

      (a)  “Affiliate”
        as
        applied to any Person, means any other Person, directly or indirectly,
        controlling, controlled by or under common control with that Person. The
        term
“control” (including, with correlative meanings, the terms
“controlling,”“controlled by” and “under common control with”), as applied to
        any Person, includes the possession, directly or indirectly, of ten percent
        (10%) or more of the voting power (or in the case of a Person which is not
        a
        corporation, ten percent (10%) or more of the ownership interest, beneficial
        or
        otherwise) of such Person or the power otherwise to direct or cause the
        direction of the management and policies of that Person, whether through
        voting,
        by contract or otherwise.

       

      (b)  “Assets”
        means
        all properties, assets, rights and interests of every kind and nature, whether
        real or personal, tangible or intangible and wherever located and by whomever
        possessed.

       

      (c)  “Ancillary
        Documents”
        means
        any exhibits, schedules or certificates or other agreements or documents
        delivered or to be delivered pursuant to the terms of this Agreement by a
        Party
        or otherwise incorporated in this Agreement.

       

      (d)  “Business
        Days”
        means
        any day other than a Saturday, Sunday or day when banks are closed or authorized
        to be closed in the State of Maryland.

       

      (e)  “Charter
        Documents”
        means,
        as applicable, (i) the certificate or articles of incorporation of a corporation
        and by-laws, together with all amendments thereto through the date hereof
        or
        (ii) the articles of organization and operating agreement of a limited liability
        company, together with all amendments thereto through the date
        hereof.

       

      (f)  “CHOW
        Notice”
        means
        the change of ownership notice required by Ohio Administrative Code Section
        5101:3 - 3-516.

       

      (g)  “COBRA”
        means
        the Consolidated Omnibus Budget Reconciliation Act of 1985, as reflected
        in Code
        Section 4980B, ERISA Sections 601 through 607 and their related regulations.
        

       

      (h)  “Code”
        means
        the Internal Revenue Code of 1986, as amended.

       

      (i)  “Collective
        Bargaining Agreement”
        means
        the collective bargaining agreement disclosed on Schedule
        3.17.

       

      (j)  “Contract”
        means
        any note, bond, mortgage, indenture, loan, contract, factoring arrangement,
        License, agreement, lease or other instrument or obligation to which the
        Party
        in question is a party or by which it or any of its assets may be
        bound.

       

      (k)  “Damages”
        means
        the amount of any loss, liability, claims, damage (including incidental and
        consequential damages), expense (including costs of investigation and defense
        and reasonable attorneys’ fees) or diminution of value, whether or not involving
        a third-party claim.

       

      (l)  “ERISA”
        means
        the Employee Retirement Income Security Act of 1974, as amended.

       

      (m)  “Exhibits”
        means
        the exhibits referenced in this Agreement.

       

      (n)  “FET
        Lien”
        means
        the general federal and Ohio estate tax Liens attaching to those Company
        Shares
        includable in the federal gross estate of Evelyn Garfield.

       

      (o)  “GAAP”
        means
        United States generally accepted accounting principles as in effect as of
        the
        date hereof.

       

      (p)  “Governmental
        Agency”
        means
        any foreign, domestic or local court, administrative agency, bureau, board,
        commission, office, authority, department or other governmental
        entity.

       

      (q)  “HIPAA”
        means
        the Health Insurance Portability and Accountability Act of 1996.

       

      (r)  “Indebtedness”
        means,
        with respect to any Person (without duplication) (i) all indebtedness for
        borrowed money or for the deferred purchase price of property or services
        (including reimbursement and all other obligations with respect to surety
        bonds,
        letters of credit and bankers’ acceptances, whether or not matured, but
        excluding all accounts payable not outstanding for more than 180 days and
        accruals), including the current portion of such indebtedness, (ii) all
        obligations evidenced by notes, bonds, debentures or similar instruments,
        (iii)
        all capital lease obligations, (iv) the direct or indirect guaranty, endorsement
        (other than for collection or deposit in the ordinary course of business),
        co-making, discounting with recourse, or sale with recourse by a Person of
        the
        obligation of another Person, and (v) obligations of any third party secured
        by
        any asset or right of any such Person.

       

      (s)  “Indebtedness
        Liability”
        means
        an amount equal to, as of the Closing Date, the outstanding principal of,
        accrued and unpaid interest on, any prepayment penalties or premiums on,
        and any
        other amounts payable with respect to, all Indebtedness of the Companies,
        but
        not including any Current Liabilities (as defined below).

       

      (t)  “Intellectual
        Property”
        means
        (i) all inventions (whether patentable or unpatentable and whether or not
        reduced to practice), all improvements thereto, and all U.S. and non-U.S.
        patents, patent applications, and patent disclosures, together with all
        reissuances, continuations, continuations-in-part, revisions, extensions,
        and
        reexaminations thereof; (ii) all U.S. and non-U.S. trademarks, service marks,
        trade dress, logos, trade names, domain names and corporate names, together
        with
        all translations, adaptations, derivations, and combinations thereof and
        including all goodwill associated therewith, and all applications,
        registrations, and renewals in connection therewith; (iii) all copyrightable
        works, all U.S. and non-U.S. copyrights, and all applications, registrations,
        and renewals in connection therewith; (iv) all mask works and all applications,
        registrations, and renewals in connection therewith; (v) all trade secrets
        and
        confidential business information (including ideas, research and development,
        know-how, formulas, compositions, manufacturing and production processes
        and
        techniques, technical data, designs, drawings, specifications, customer and
        supplier lists, pricing and cost information, and business and marketing
        plans
        and proposals); (vi) all Software; (vii) all other proprietary rights; and
        (viii) all copies and tangible embodiments thereof (in whatever form or
        medium).

       

      (u)  “IRS”
        means
        the Internal Revenue Service.

       

      (v)  “JCAHO”
        means
        the Joint Commission on Accreditation of Healthcare Organizations.

       

      (w)  “Knowledge”
        shall mean, with respect to any Company, the knowledge after due inquiry
        of AMW,
        HJG, Rufus D. Heard, G. Leslie Atkinson, Judy Kaneen, and, with respect to
        each
        Facility, the applicable on-site Facility administrator.

       

      (x)  “Law”
        means
        any foreign, domestic or local law, statute, principle of common law,
        regulation, rule, code, ordinance, order, consent decree, settlement agreement
        or governmental requirement, and any judgment, decision, decree, writ,
        injunction, award, ruling or order of any Governmental Agency (including
        the
        IRS).

       

      (y)  “Legal
        Requirement”
        any
        federal, state, local, municipal, foreign, international, multinational,
        or
        other administrative order, constitution, Law or treaty.

       

      (z)  “Liability”
        means
        any liability, obligation, debt, claim, damage, loss or expense (whether
        known
        or unknown, whether asserted or unasserted, whether absolute or contingent,
        whether accrued or unaccrued, whether liquidated or unliquidated, and whether
        due or to become due).

       

      (aa)  “Licenses”
        means
        licenses, permits, registrations, certificates of authority, certificates
        of
        need, consents, approvals, authorizations, qualifications and certifications
        which have been issued to a Person by any Governmental Agency in connection
        with
        the ownership of its Assets and the operation of its business.

       

      (bb)  “Lien”
        means
        any mortgage, pledge, lien, encumbrance, charge, security interest or other
        claim against title.

       

      (cc)  “Loss”
        or
“Losses”
        means
        all actions, suits, proceedings, hearings, investigations, charges, complaints,
        claims, demands, injunctions, orders, decrees, rulings, Damages, dues,
        penalties, fines, costs, amounts paid in settlement, liabilities, obligations,
        Taxes, Liens, losses, expenses and fees, including court costs.

       

      (dd)  “Material
        Adverse Effect”
        means,
        with respect to any Person, a material adverse effect on the condition
        (financial or otherwise), business (including continued operation thereof
        in the
        Ordinary Course of Business), operations, prospects, Assets or results of
        operations of such Person.

       

      (ee)  “Medicaid”
        means
        the medical assistance program established by Title XIX of the Social Security
        Act (42 U.S.C. Sections 1396 et seq.) and any statute succeeding
        thereto.

       

      (ff)  “Medicaid
        Obligations”
        means
        (i) any fees, fines, penalties or civil monetary penalties that have arisen
        or
        may arise in any manner from the Companies’ participation in Medicaid; (ii)
        Medicaid overpayments or any other financial obligations arising from any
        adjustments or reductions in Medicaid reimbursement that have arisen or may
        arise in any manner from the Companies’ participation in Medicaid; or (iii) all
        other monetary and non-monetary obligations, sanctions, remedies or liabilities
        of any kind or nature whatsoever that have arisen or may arise in any manner
        from the Companies’ participation in Medicaid.

       

      (gg)  “Medicare”
        means
        the health insurance program for the aged and disabled established by Title
        XVIII of the Social Security Act (42 U.S.C. Sections 1395 et seq.) and any
        statute succeeding thereto.

       

      (hh)  “Medicare
        Obligations”
        means
        (i) any fees, fines, penalties or civil monetary penalties that have arisen
        or
        may arise in any manner from the Companies’ participation in Medicare; (ii)
        Medicare overpayments or any other financial obligations arising from any
        adjustments or reductions in Medicare reimbursement that have arisen or may
        arise in any manner from the Companies’ participation in Medicare; or (iii) all
        other monetary and non-monetary obligations, sanctions, remedies or liabilities
        of any kind or nature whatsoever that have arisen or may arise in any manner
        from the Companies’ participation in Medicare.

       

      (ii)  “OIG”
        means
        the Office of Inspector General for the Department of Health and Human
        Services.

       

      (jj)  “Order”
        means
        any award, decision, injunction, judgment, order, ruling, subpoena or verdict
        entered, issued, made or rendered by any court, administrative agency or
        other
        Governmental Agency or arbitrator.

       

      (kk)  “Ordinary
        Course of Business”
        means,
        with respect to a Person, the ordinary course of business consistent with
        such
        Person’s past custom and practice (including with respect to quantity and
        frequency).

       

      (ll)  “Party”
        or
“Parties”
        means
        any or all Persons that are parties to this Agreement.

       

      (mm)  “Payoff
        Letters”
        means
        the letters provided by the lenders or other holders of Indebtedness Liability
        to one or more of the Companies in connection with the repayment of the
        Indebtedness Liability as contemplated hereby, which shall be reasonably
        satisfactory in form and substance to the Purchaser and its
        counsel.

       

      (nn)  “Permitted
        Liens”
        means
        (i) Tax Liens with respect to Taxes not yet due and payable or which are
        being
        contested by such Person in good faith by appropriate proceedings and for
        which
        appropriate reserves have been established by such Person in accordance with
        GAAP; (ii) deposits or pledges made in connection with, or to secure payment
        of,
        utilities or similar services, workers’ compensation, unemployment insurance,
        old age pensions or other social security obligations; (iii) mechanics’,
        materialmen’s or contractors’ Liens incurred in the Ordinary Course of Business
        for amounts not yet due and payable and which amounts (A) have been incurred
        under Contracts disclosed on Schedule
        3.11(a),
        and (B)
        have been reserved for and reflected in the Company Statements; and (iv)
        those
        Liens disclosed on Schedule 1.01(nn).

       

      (oo)  “Person”
        means
        an individual, a partnership, a corporation, an association, a limited liability
        company, a trust, a joint venture, an unincorporated organization, a
        Governmental Agency, or any other entity.

       

      (pp)  “Schedules”
        means
        the schedules referenced in this Agreement.

       

      (qq)  “Software”
        means
        all (i) computer programs, whether in source code or object code, (ii)
        descriptions, flow charts and other work products used to design, plan or
        develop any of the foregoing, and (iii) data and documentation relating to
        any
        of the foregoing.

       

      (rr)  “Subsidiary”
        means
        any Person with respect to which any Person (or a Subsidiary thereof) owns
        a
        majority of the common stock, units or other equity interests or has the
        power
        to vote or direct the voting of sufficient securities to elect a majority
        of the
        board of directors or comparable governing body.

       

      (ss)  “Tax”
        means
        any federal, state, local, or foreign income, provider, gross receipts, license,
        payroll, employment, excise, severance, stamp, occupation, premium, windfall
        profits, environmental, customs duties, capital stock, franchise, profits,
        withholding, social security (or similar), unemployment, disability, real
        property, personal property, sales, use, transfer, registration, value added,
        alternative or add-on minimum, retailer’s occupation taxes and other taxes
        commonly understood to be sales or use taxes, estimated, or other tax of
        any
        kind whatsoever, including any interest, penalty, or addition thereto, whether
        disputed or not and including any obligation to indemnify or otherwise assume
        or
        succeed to the Tax Liability of any other Person.

       

      (tt)  “Tax
        Return”
        means
        any return, declaration, report, claim for refund, or information return
        or
        statement relating to Taxes, including any schedule or attachment thereto,
        and
        including any amendment thereof.

       

      (uu)  “Title
        Commitment”
        means a
        commitment for an owner’s title insurance policy issued by a nationally
        recognized title company.

       

      (vv)  “Transaction
        Fees”
        means
        an amount in cash equal to, as of the Closing Date, the sum of (i) the
        outstanding fees and expenses of any counsel to any Company and accountant
        to
        any Company incurred by any Company on or prior to the Closing Date in
        connection with the transactions contemplated by this Agreement, and (ii)
        all
        other outstanding fees and expenses incurred by any Company on or prior to
        the
        Closing Date in connection with the transactions contemplated by this
        Agreement.

       

      (ww)  “WARN
        Act”
        means
        the Worker Adjustment and Retraining Notification Act., 29 U.S.C. Section
        2101 -
        2109, and the regulations issued thereunder by the United States Department
        of
        Labor, 29 C.F.R. Section 639.

       

      1.02.  Other
        Defined Terms.
        The
        following terms have the meanings defined for such terms in the Sections
        set
        forth below:

       

      
        	
                Definition

                 

              	
                Section

                 

              
	
                Accounts
                  Receivable

              	
                2.05(a)

              
	
                Advisors

              	
                7.01(a)

              
	
                ADW

              	
                Introductory
                  Clause

              
	
                Agreement

              	
                Introductory
                  Clause

              
	
                AMW

              	
                Introductory
                  Clause

              
	
                Baldwin

              	
                Introductory
                  Clause

              
	
                Base
                  Balance Sheet

              	
                2.04(a)

              
	
                Base
                  Net Working Capital 

              	
                2.04(a)

              
	
                Basket

              	
                11.03(b)

              
	
                Benefit
                  Plans

              	
                3.18(a)

              
	
                Business

              	
                Background

              
	
                Closing

              	
                2.06(a)

              
	
                Closing
                  Adjustment Amount

              	
                2.02(c)

              
	
                Closing
                  Date Balance Sheet

              	
                2.04(b)

              
	
                Closing
                  Date

              	
                2.06(a)

              
	
                Closing
                  Net Working Capital

              	
                2.04(b)

              
	
                Collection
                  Deadline

              	
                2.05(a)

              
	
                Company

              	
                Introductory
                  Clause

              
	
                Company
                  Latest Balance Sheet

              	
                3.04

              
	
                Company
                  Shares

              	
                Background

              
	
                Company
                  Statements

              	
                3.04

              
	
                Contract
                  Termination Liability

              	
                7.21

              
	
                Copley

              	
                Introductory
                  Clause

              
	
                Current
                  Assets

              	
                2.04(a)

              
	
                Current
                  Liabilities

              	
                2.04(a)

              
	
                Customer
                  Contracts

              	
                3.11(c)

              
	
                Deposit
                  Amount

              	
                2.02(b)

              
	
                Deposit
                  Agreement

              	
                2.02(b)

              
	
                Direct
                  Claim

              	
                11.06(b)

              
	
                Document
                  Retention Period

              	
                7.01(c)

              
	
                Effective
                  Time

              	
                2.06(a)

              
	
                EMM

              	
                Introductory
                  Clause

              
	
                Employees

              	
                3.17(c)

              
	
                Employee
                  Termination Time

              	
                7.02(a)

              
	
                Environmental
                  Laws

              	
                3.22(a)(i)

              
	
                Environmental
                  Permits

              	
                3.22(c)

              
	
                ERISA
                  Affiliate

              	
                3.18(a)

              
	
                Escrow
                  Agent

              	
                2.02(c)

              
	
                Escrow
                  Amount

              	
                2.02(c)

              
	
                Escrow
                  Agreement 

              	
                2.02(c)

              
	
                Facilities

              	
                Background

              
	
                Family
                  Trust

              	
                Introductory
                  Clause

              
	
                Garfield
                  Estate

              	
                Introductory
                  Clause

              
	
                Government
                  Programs

              	
                3.12(d)

              
	
                Hanover
                  I

              	
                Introductory
                  Clause

              
	
                Hanover
                  II

              	
                Introductory
                  Clause

              
	
                Hazardous
                  Materials

              	
                3.22(a)(i)

              
	
                Hired
                  Employees

              	
                7.02(b)

              
	
                Healthcare
                  Fraud Laws

              	
                3.12(g)

              
	
                HJG

              	
                Introductory
                  Clause

              
	
                Hollis
                  Trust

              	
                Introductory
                  Clause

              
	
                Independent
                  Accountants

              	
                2.04(d)

              
	
                LandAmerica

              	
                2.02(b)

              
	
                M&A
                  Qualified Beneficiaries

              	
                7.02(d)

              
	
                Net
                  Working Capital

              	
                2.04(a)

              
	
                New
                  Operator

              	
                Introductory
                  Clause

              
	
                New
                  Operator Indemnified Party 

              	
                11.03(a)

              
	
                New
                  Operator Parent

              	
                Introductory
                  Clause 

              
	
                PBGC

              	
                3.18(g)

              
	
                PCBs

              	
                3.22(d)

              
	
                PNCN

              	
                Introductory
                  Clause

              
	
                PNP

              	
                Introductory
                  Clause

              
	
                Private
                  Programs

              	
                3.12(e)

              
	
                Purchase
                  Price

              	
                2.02(a)

              
	
                Purchaser
                  

              	
                Introductory
                  Clause

              
	
                Purchaser
                  Indemnified Party

              	
                11.03(a)

              
	
                Purchaser
                  Parent

              	
                Introductory
                  Clause

              
	
                Real
                  Property Tax Liability

              	
                7.15(d)

              
	
                Real
                  Property

              	
                3.06(a)

              
	
                Refund
                  Amount

              	
                2.04(e)(i)

              
	
                Release

              	
                3.22(a)(iii)

              
	
                Required
                  Consents

              	
                2.06(b)(xiv)

              
	
                Remainder
                  Trust

              	
                Introductory
                  Clause

              
	
                Rent
                  Rolls

              	
                3.25(a)

              
	
                Revocable
                  Trust

              	
                Introductory
                  Clause

              
	
                Shareholders

              	
                Introductory
                  Clause

              
	
                Shareholder
                  Indemnified Party

              	
                11.04(a)

              
	
                Shareholders’
                  Representative

              	
                14.08

              
	
                Sick
                  Time Agreement

              	
                7.02(b)

              
	
                Straddle
                  Tax Period

              	
                13.01(b)

              
	
                Suburban

              	
                Introductory
                  Clause

              
	
                Tail
                  Coverage

              	
                7.06(g)

              
	
                Tangible
                  Property

              	
                3.06(b)

              
	
                Terminated
                  Contracts

              	
                7.21

              
	
                Title
                  Policies

              	
                2.06(b)(iv)

              
	
                Third
                  Party Claim

              	
                11.06(a)(i)

              
	
                Trust
                  Accounts

              	
                3.26

              
	
                UCC
                  Searches

              	
                8.01(g)

              
	
                VEBA

              	
                7.02(g)

              
	
                Wexford

              	
                Introductory
                  Clause

              
	
                Working
                  Capital Adjustment Amount

              	
                2.03

              

      

      

       

      1.03.  Construction.

       

      (a)  Unless
        the context of this Agreement otherwise requires: (i) words of any gender
        include each other gender; (ii) words using the singular or plural number
        also
        include the plural or singular number, respectively; (iii) the terms
“hereof,”“herein,”“hereby,” and derivative or similar words refer to this entire
        Agreement; (iv) the terms “Article” or “Section” refer to the specified Article
        or Section of this Agreement; (v) the word “including” shall mean “including,
        without limitation;” and (vi) the word “or” shall be disjunctive but not
        exclusive.

       

      (b)  References
        to agreements and other documents shall be deemed to include all subsequent
        amendments and other modifications thereto.

       

      (c)  References
        to statutes shall include all regulations promulgated thereunder and references
        to statutes or regulations shall be construed as including all statutory
        and
        regulatory provisions consolidating, amending or replacing the statute or
        regulation.

       

      (d)  The
        language used in this Agreement shall be deemed to be the language chosen
        by the
        parties to express their mutual intent, and no rule of strict construction
        shall
        be applied against any Party.

       

      (e)  The
        disclosure Schedules and Exhibits to this Agreement shall be treated as if
        fully
        incorporated into the body of the Agreement.

       

      (f)  All
        accounting terms used herein and not expressly defined herein shall have
        the
        meanings given to them under GAAP.

       

                                                      Article
        II  

                                          Purchase
        and Sale of Company Shares

       

      2.01.  Purchase
        and Sale.
        Upon
        the terms and subject to the conditions contained in this Agreement, the
        Shareholders agree to sell, assign, transfer, convey and deliver to the
        Purchaser at the Closing all right, title and interest in and to all of the
        Company Shares, free and clear of all Liens. The Purchaser, in reliance upon
        the
        representations and warranties of the Companies and the Shareholders contained
        herein and on the terms and conditions herein set forth, hereby agrees to
        purchase the Company Shares from Shareholders at the Closing on the terms
        and
        conditions set forth herein.

       

      2.02.  Purchase
        Price; Allocation. 

       

      (a)  The
        aggregate purchase price for the Company Shares (the “Purchase
        Price”)
        shall
        be an amount equal to (i) $62,699,469, plus
        or
        minus (ii) the Working Capital Adjustment Amount as provided in Section
        2.03.
        

       

      (b)  LandAmerica
        National Commercial Services (“LandAmerica”),
        as
        escrow agent, is holding $500,000 (the “Deposit
        Amount”)
        deposited by the Purchaser pursuant to the terms of the Deposit Escrow
        Instructions dated May 5, 2005 attached hereto as Schedule 2.02(b)
        (the
“Deposit
        Agreement”).
        Subject to the terms of the Deposit Agreement, at the Closing, the Deposit
        Amount will be applied to the Purchase Price as provided in Section
        2.02(c)
        below.

       

      (c)  At
        the
        Closing, the Purchaser shall make the following payments on account of the
        Purchase Price: (i) on behalf of the Companies, the Purchaser shall cause
        the
        Indebtedness Liability to be repaid in full to the party or parties entitled
        thereto pursuant to the Payoff Letters; (ii) on behalf of the Companies,
        the
        Purchaser shall pay the unpaid Transaction Fees to the person or persons
        entitled thereto in accordance with the instructions delivered by the
        Shareholders’ Representative prior to the Closing Date; (iii) the Purchaser
        shall deposit with Bank of America (the “Escrow
        Agent”)
        under
        an escrow agreement to be agreed upon by the Shareholders’ Representative, the
        Purchaser, the New Operator and the Escrow Agent (the “Escrow
        Agreement”)
        the
        amount of $9,500,000, which agreement shall provide, among other things,
        that
        the funds held in escrow shall be released to the Shareholders on the third
        anniversary of the Closing Date, subject to the resolution of any claims
        made
        during such three year period and any claims pending on such third anniversary;
        (iv) the Purchaser shall direct LandAmerica to transfer the Deposit Amount
        to
        the Escrow Agent to be held pursuant to the Escrow Agreement (the aggregate
        amount deposited with the Escrow Agent pursuant to subsections (iii) and
        (iv) is
        referred to as the “Escrow
        Amount”);
        and
        (v) the Purchaser shall pay the remainder of the Purchase Price, less $3,000,000
        or such other amount as the Purchaser and the Shareholders’ Representative may
        agree upon in writing prior to the Closing (the “Closing
        Adjustment Amount”)
        and
        without taking into account any Working Capital Adjustment Amount, to the
        Shareholders by delivery of a wire transfer to such account as the Shareholders’
        Representative shall designate in writing not later than three Business Days
        before the Closing Date. The Purchaser shall pay one-half of all fees and
        expenses of the Escrow Agent as set forth in the Escrow Agreement and the
        Shareholders, collectively, shall pay the other one-half.

       

      (d)  The
        Purchase Price shall be allocated among the Company Shares as of the Closing
        Date, as disclosed on Schedule 2.02(d).
        Any
        subsequent adjustments to the Purchase Price shall be reflected in the
        allocation as mutually agreed upon by the Purchaser and the Shareholders’
        Representative in a manner consistent with the allocations disclosed on
Schedule
        2.02(d).

       

      2.03.  Working
        Capital Adjustment Amount and Payment.
        The
“Working
        Capital Adjustment Amount”
        (which
        may be a positive or negative number) will be equal to the amount determined
        by
        subtracting the Base Net Working Capital (as defined below) from the Closing
        Net
        Working Capital (as defined below). If the Working Capital Adjustment Amount
        is
        negative, the Purchase Price shall be reduced by such amount, subject to
        the
        provisions of Section
        2.04(e).
        If the
        Working Capital Adjustment Amount is positive, then the Purchase Price shall
        be
        increased by such amount, subject to the provisions of Section
        2.04(e).
        After
        the Closing, the Closing Net Working Capital and the Working Capital Adjustment
        Amount shall be determined as provided in Section
        2.04
        and the
        Purchase Price shall be adjusted as provided in Section
        2.04(e).

       

      2.04.  Working
        Capital Adjustment Procedure. 

       

      (a)  “Net
        Working Capital”
        as of a
        given date shall mean the amount calculated by subtracting the aggregate
        Current
        Liabilities of the Companies as of that date from the aggregate Current Assets
        of the Companies as of that date. “Current
        Assets”
        means
        the sum of cash, trade accounts receivable (including any unpaid Governmental
        Agency payments or reimbursements relating to any time before the Closing
        Date),
        inventory, prepaid expenses and deposits (including any prepaid real estate
        Taxes, personal property Taxes or bed Taxes relating to any time on or after
        the
        Closing Date), and all other current assets as determined according to GAAP
        as
        consistently applied by the Companies. “Current
        Liabilities”
        means
        the sum of all liabilities including trade accounts payable, accrued expenses,
        accrued employment-related liabilities and payroll taxes, deferred income
        and
        all other current liabilities, an accrual for all real property, personal
        property and bed taxes relating to any time before the Closing (whether or
        not
        any such Taxes are due or owing before the Closing), and an accrual for the
        contributions the Companies are required to make to any Benefit Plan pro
        rated
        through the Closing Date, but does not include Indebtedness Liability and
        Transaction Fees. To the extent that the termination of any Benefit Plan
        by any
        Company pursuant to the terms of this Agreement terminates such Company’s
        obligation to make a contribution to any Benefit Plan after the Closing Date,
        then no accrual for such contribution will be required on the Closing Date
        Balance Sheet. The aggregate Net Working Capital of the Companies as of March
        31, 2005 was $13,899,469 (the “Base
        Net Working Capital”),
        as
        reflected on the combined Company Latest Balance Sheets (as defined below).
        The
        principles, policies and practices used to prepare the Base Balance Sheet
        and
        the calculations used to determine the amount of the Base Net Working Capital
        are described on Schedule
        2.04(a). 

       

      (b)  Promptly
        after the Closing, the Shareholders shall prepare, or cause to be prepared,
        a
        consolidated balance sheet of the Companies as of the Closing Date on the
        same
        basis and applying the same accounting principles, policies and practices
        that
        were used in preparing the Company Latest Balance Sheets, including the
        principles, policies and practices disclosed on Schedule
        2.04(a)
        (the
“Closing
        Date Balance Sheet”).
        The
        Shareholders shall then determine the Net Working Capital as of the Closing
        Date
        (the “Closing
        Net Working Capital”)
        based
        upon the Closing Date Balance Sheet and calculated on the same basis and
        applying the same principles, policies and practices that were used in preparing
        the Base Net Working Capital and as disclosed on Schedule
        2.04(a),
        except
        as otherwise required by the provisions of Section
        2.04(a)
        The
        Shareholders shall deliver the Closing Date Balance Sheet and their
        determination of the Closing Net Working Capital to the Purchaser on or before
        the 45th
        day
        after the Closing Date.

       

      (c)  If,
        on or
        before the 30th
        day
        after the Purchaser’s receipt of the Closing Date Balance Sheet and the Closing
        Net Working Capital calculation from the Shareholders, the Purchaser has
        not
        given the Shareholders’ Representative written notice of its objection as to the
        Closing Net Working Capital calculation (which notice shall specify the disputed
        portions of the Closing Date Balance Sheet and shall state the basis of the
        objection), then the Closing Net Working Capital as calculated by the
        Shareholders shall be binding and conclusive on the Parties and be used in
        computing the actual Working Capital Adjustment Amount. If the Purchaser
        timely
        gives the Shareholders’ Representative such notice of objection, then all items
        on the Closing Date Balance Sheet which are not identified as disputed in
        such
        notice shall be deemed accepted by the Purchaser and shall not be subject
        to
        further adjustment.

       

      (d)  If
        the
        Purchaser timely gives the Shareholders’ Representative such notice of
        objection, and if the Shareholders’ Representative and the Purchaser fail to
        resolve the issues outstanding with respect to the Closing Date Balance Sheet
        and the calculation of the Closing Net Working Capital on or before the
        10th
        day
        after the Shareholders’ Representative’s receipt of the Purchaser’s objection
        notice, the Shareholders’ Representative and the Purchaser shall submit the
        issues remaining in dispute to KPMG, independent public accountants (the
        “Independent
        Accountants”),
        for
        resolution, applying the principles, policies and practices referred to in
        Section
        2.04(a).
        If
        issues are submitted to the Independent Accountants for resolution: (i) the
        Shareholders’ Representative and the Purchaser shall furnish or cause to be
        furnished to the Independent Accountants such work papers and other documents
        and information relating to the disputed issues as the Independent Accountants
        may request and are available to that Party or its agents and shall be afforded
        the opportunity to present to the Independent Accountants any material relating
        to the disputed issues and to discuss the issues with the Independent
        Accountants; (ii) the determination by the Independent Accountants, as set
        forth
        in a notice to be delivered to both the Shareholders’ Representative and the
        Purchaser on or before the 30th
        day
        after the submission to the Independent Accountants of the issues remaining
        in
        dispute, shall be final, binding and conclusive on the Parties and shall
        be used
        in the calculation of the Closing Net Working Capital; and (iii) the Purchaser
        shall pay one-half of all fees and expenses of the Independent Accountants
        for
        such determination and the Shareholders, collectively, shall pay the other
        one-half.

       

      (e)  After
        the
        final determination of the Working Capital Adjustment Amount, one of the
        following payments shall be made.

       

      (i)  If
        the
        Working Capital Adjustment Amount is a negative number which is greater than
        the
        Closing Adjustment Amount, requiring a reduction of the Purchase Price, then
        the
        Shareholders shall, on or before the fifth Business Day after the final
        determination of the Working Capital Adjustment Amount as provided in this
        Section
        2.04,
        pay to
        the Purchaser an amount equal to (A) the Working Capital Adjustment Amount,
        less
        (B) the Closing Adjustment Amount (such amount, the “Refund
        Amount”),
        and
        the Shareholders shall have no further claim pursuant to this Article
        II
        to
        receive any portion of the Closing Adjustment Amount. If the Shareholders
        do not
        timely pay the full Refund Amount to the Purchaser, the Purchaser may, in
        its
        sole discretion and at its option, direct the Escrow Agent to promptly deliver
        to the Purchaser the unpaid portion of the Refund Amount. If the Purchaser
        directs the Escrow Agent to deliver such amount to the Purchaser, then the
        Purchaser shall retain the right to pursue payment from the Shareholders
        as
        required by the first sentence of this Section
        2.04(e)(i),
        which
        payment would be deposited in the Escrow Account to replenish the funds paid
        to
        the Purchaser pursuant to this Section
        2.04(e). 

       

      (ii)  If
        the
        Working Capital Adjustment Amount is zero or is a negative number which is
        less
        than the Closing Adjustment Amount, requiring a reduction in the Purchase
        Price,
        then the Purchaser shall, on or before the fifth Business Day after the final
        determination of the Working Capital Adjustment Amount as provided in this
        Section
        2.04,
        pay to
        the Shareholders’ Representative an amount equal to (A) the Closing Adjustment
        Amount, less (B) the Working Capital Adjustment Amount, and the Purchaser
        shall
        retain the balance of the Closing Adjustment Amount.

       

      (iii)  If
        the
        Working Capital Adjustment Amount is a positive number, requiring an increase
        in
        the Purchase Price, then the Purchaser shall, on or before the fifth Business
        Day after the final determination of the Working Capital Adjustment Amount
        as
        provided in this Section
        2.04,
        pay to
        the Shareholders’ Representative an amount equal to (A) the Closing Adjustment
        Amount, plus (B) the Working Capital Adjustment Amount.

       

      2.05.  Accounts
        Receivable Adjustment.

       

      (a)  The
        accounts receivable reflected on the Closing Date Balance Sheet, as finally
        determined, are referred to in this Section
        2.05
        as the
“Accounts
        Receivable.”
        The
        Parties acknowledge and expect that the Accounts Receivable will be stated
        net
        of reasonably estimated provisions for (i) bad debts, and (ii) refunds or
        reimbursements the Shareholders expect the Companies to be required to make
        arising from overpayments made to the Companies by Medicaid or Medicare in
        respect of operations before the Closing Date. 

       

      (b)  The
        Purchaser shall appoint EMM as its agent to collect the Accounts Receivable
        in
        full on or before the 120th
        day
        after the Closing Date (the “Collection
        Deadline”)
        and
        shall designate the bank account or accounts into which collections shall
        be
        deposited. EMM shall provide the Purchaser with bi-weekly reports of its
        collection activities with such detail as the Purchaser may reasonably request.
        During
        the period beginning on the Closing Date and ending on the Collection Deadline,
        the Purchaser and the New Operator shall cooperate with the reasonable requests
        of EMM for assistance in billing and collecting the Accounts Receivable,
        but
        only to the extent that the Purchaser or the New Operator have information
        relating to the Accounts Receivable or have employees otherwise engaged in
        the
        billing and collection of accounts receivable generally. After the Closing
        Date,
        EMM (i) shall coordinate its collection activities with the New Operator
        with
        respect to those Accounts Receivable which relate to individuals who are
        residents of any Facility at the time such collection activities are underway,
        (ii) shall not unreasonably interfere with the business relationship between
        the
        New Operator and any such individual for so long as the individual remains
        a
        resident of any Facility, and (iii) shall in no event initiate litigation
        with
        any such individual for so long as the individual remains a resident of any
        Facility. The New Operator agrees that all collections from such individuals
        shall be applied to the oldest account receivable from such individual and
        each
        such collection attributable to one of the Accounts Receivable shall be remitted
        promptly to EMM.

       

      (c)  Any
        amounts received by the Purchaser before the Collection Deadline from a debtor
        on an Account Receivable will first be applied to the oldest Account Receivable
        of that debtor. If the Purchaser does not receive, on or before the Collection
        Deadline, the full amount of the Accounts Receivable, then, on or before
        the
        fifth Business Day after the Collection Deadline, the Purchaser shall assign
        to
        the Shareholders each individual Account Receivable which has not been paid
        in
        full and the Shareholders, jointly and severally, shall be obligated to pay
        to
        the Purchaser an amount equal to 103.5% of an amount equal to the difference
        between (i) the Accounts Receivable, and (ii) the amount received by the
        Purchaser pursuant to this Section
        2.05,
        not
        including the amount of interest calculated pursuant to subsection (d) below.
        If
        the Purchaser receives collections in excess of an amount equal to (A) the
        Accounts Receivable, plus (B) the amount of interest calculated pursuant
        to
        subsection (d) below, then the Purchaser shall transfer the entire amount
        of
        such excess to the Shareholders. The Shareholders’ Representative shall act as
        the Shareholders’ agent for purpose of executing any and all applicable transfer
        documents in connection with any such assignment. The Purchaser and the New
        Operator shall thereafter cooperate with the Shareholders as may be reasonably
        necessary to enable them to pursue collection of the Accounts Receivable
        so
        assigned, but only to the extent that the Purchaser and the New Operator
        have
        information relating to the Accounts Receivable which the Shareholders do
        not
        possess. If the Purchaser receives any funds from a debtor of an Account
        Receivable after the Purchaser has assigned such Account Receivable to, and
        the
        Purchaser has received payment in full from, the Shareholders as set forth
        in
        this subsection (c), then the Purchaser promptly shall transfer all such
        funds
        to the Shareholders’ Representative. If the Purchaser receives any funds from a
        debtor of an Account Receivable after the Collection Deadline with respect
        to
        any Account Receivable for which the Purchaser has not received payment in
        full
        from the Shareholders as set forth in this subsection (c), then the Purchaser
        shall retain such funds and apply them to such Accounts Receivable.

       

      (d)  If
        the
        Purchaser receives payment of any portion of any individual Account Receivable
        during the period beginning on the 31st
        day
        after the Closing Date and ending on the Collection Deadline, then the
        Shareholders, jointly and severally, shall be obligated to pay to the Purchaser
        an amount equal to the percentage of the payments so received by the Purchaser
        during such period as set forth below. 

       

      
        	
                 

                Collection
                  Period

              	
                %
                  of the Payments Collected

                During
                  the Period

                 

              
	
                31
                  to 60 days after the Closing Date

                 

              	
                1.5%

                 

              
	
                61
                  to 90 days after the Closing Date

                 

              	
                2.5%

                 

              
	
                91
                  to 120 days after the Closing Date

                 

              	
                3.5%

                 

              

      

      

      Not
        later
        than 15 Business Days after the end of each of the collection periods set
        forth
        above, the Purchaser shall provide to the Shareholders’ Representative a written
        report showing the amounts received by the Purchaser with respect to the
        Accounts Receivable for the period then most recently ended. The Shareholders
        shall be obligated to pay the amount required by this subsection (d) not
        later
        than 10 Business Days after the date the Shareholders’ Representative receives
        such notice.

      

      (e)  The
        Shareholders shall make such payments required by this Section
        2.05
        by wire
        transfer of immediately available funds or by cashier’s check. If the
        Shareholders do not timely make any payments required by this Section
        2.05,
        then
        the Purchaser may, in its sole discretion and at its option, direct the Escrow
        Agent to promptly deliver to the Purchaser the amount owed by the Shareholders
        to the Purchaser pursuant to this Section
        2.05.
        If the
        Purchaser directs the Escrow Agent to deliver such amount to the Purchaser,
        then
        the Purchaser shall retain the right to pursue payment from the Shareholders
        as
        required by this Section
        2.05,
        which
        payment would be deposited in the Escrow Account to replenish the funds paid
        to
        the Purchaser pursuant to this Section
        2.05.
        

       

      2.06.  Closing.

       

      (a)  Subject
        to the terms and conditions of this Agreement, the sale and purchase of the
        Company Shares contemplated hereby shall take place at a closing (the
“Closing”)
        to be
        held on June 28, 2005, at the Duquesne Club, 325 Sixth Avenue, Pittsburgh,
        Pennsylvania 15222, or at such other time or on such other date or at such
        other
        place as the Shareholders, the Purchaser and the New Operator may mutually
        agree
        upon in writing (the day on which the Closing takes place being the
“Closing
        Date”).
        The
        Closing shall be deemed to be effective at 12:01 am Pittsburg, Pennsylvania
        time
        on the Closing Date (the “Effective
        Time”).

       

      (b)  At
        the
        Closing, the Shareholders and the Companies shall deliver or cause to be
        delivered to the Purchaser and the New Operator (unless otherwise
        indicated):

       

      (i)  to
        the
        Purchaser, certificates representing the Company Shares (if certificated),
        duly
        endorsed (or accompanied by duly executed stock powers or assignment documents)
        for transfer to the Purchaser, or, if necessary, executed lost certificate
        affidavits and indemnifications in a form satisfactory to the Purchaser and
        its
        counsel;

       

      (ii)  to
        the
        Purchaser, the Payoff Letters reflecting the Indebtedness Liability, including
        the Indebtedness Liability disclosed on Schedule
        2.06(b);

       

      (iii)  evidence
        of the release of (A) all Liens on any of the Assets of any Company, other
        than
        Permitted Liens, and the termination of all UCC financing statements or other
        filings, or written instructions authorizing the Purchaser to terminate all
        financing statements or other filings, relating to such Liens and to any
        other
        financing statements filed with respect to any Company on in a form satisfactory
        to the Purchaser and its counsel, including copies of terminations of any
        security interest and quitclaims pertaining to all Intellectual Property,
        and
        (B) the FET Lien, including releases by the IRS and all applicable state
        taxing
        authorities;

       

      (iv)  to
        the
        Purchaser, owner’s title insurance policies without standard exceptions, but
        with endorsements for, with respect to each parcel of Real Property located
        in
        the State of Ohio, zoning 3.1, access, contiguity, survey, tax parcel and
        comprehensive, and, with respect to each parcel of Real Property located
        in the
        State of Pennsylvania, access, contiguity and tax parcel (the “Title
        Policies”)
        with
        values equal to the fair market values of each parcel of Real Property as
        provided herein based upon the Title Commitments disclosed on Schedule
        2.06(b)
        issued
        by Certified Title Insurance Company and subject only to (A) Liens for Taxes
        that are not yet due and payable, (B) the Liens disclosed on Schedule
        1.01(nn),
        and (C)
        any Liens or other matters created by the Purchaser or arising out of the
        wrongful acts or negligence of the Purchaser;

       

      (v)  to
        the
        Purchaser, invoices reflecting the unpaid Transaction Fees, if any, which
        invoices shall include wire transfer instructions for payment;

       

      (vi)  a
        certificate, dated as of the Closing Date, executed by an officer of each
        Company and by the Shareholders’ Representative (on behalf of the Shareholders),
        certifying the fulfillment of the conditions specified in paragraphs (a),
        (b)
        and (c) of Sections
        8.01 and 10.01,
        to the
        extent they relate to the Shareholders or the Company;

       

      (vii)  the
        Escrow Agreement
        executed by the Shareholders;

       

      (viii)  evidence
        that the Shareholders have obtained, at their sole cost and expense, the
        Tail
        Coverage;

       

      (ix)  the
        certificate of incorporation or organization of each Company certified as
        of the
        most recent practicable date by the applicable state authority in the applicable
        jurisdiction;

       

      (x)  a
        certificate of the applicable state authority as to the good standing or
        full
        force and effect, as applicable, of each Company in its jurisdiction of
        incorporation or organization as of the most recent practicable
        date;

       

      (xi)  a
        certificate of the Secretary of each Company, certifying as to the code of
        regulations or bylaws or operating agreement, as applicable, of such Company
        and
        the resolutions of the board of directors or managers or partners, as
        applicable, of each Company authorizing this Agreement and the transactions
        contemplated hereby;

       

      (xii)  a
        legal
        opinion of Buckingham, Doolittle & Burroughs, LLP, counsel to the
        Shareholders and the Companies, in the form to be agreed upon by the
        Shareholders’ Representative, the Purchaser and the New Operator;

       

      (xiii)  written
        resignations and releases from the directors, officers and managers of each
        Company who are disclosed on Schedule
        3.01
        in the
        form attached as Exhibit
        B;

       

      (xiv)  all
        consents and approvals contemplated by Section
        3.16
        and
Section 4.04
        or such
        customary assurances (which may be verbal) that such consents and approvals
        will
        be received after the Closing Date in the Ordinary Course of Business;
provided,
        however,
        that
        the consents and approvals disclosed on Schedule
        2.06(b)(xiv)
        (the
“Required
        Consents”)
        shall
        be delivered at the Closing in writing; 

       

      (xv)  to
        the
        Purchaser, original corporate record books and stock record books of each
        Company; 

       

      (xvi)  to
        the
        New Operator, the payment required by Section
        7.02(d);

       

      (xvii)  the
        Sick
        Time Agreement executed by the Shareholders.

       

      (c)  At
        the
        Closing, the Purchaser shall deliver or cause to be delivered to the
        Shareholders and the New Operator (unless otherwise indicated):

       

      (i)  the
        cash
        payments on account of the Purchase Price due under the provisions of
Section
        2.02(c);

       

      (ii)  a
        certificate, dated as of the Closing Date, executed by an officer of Purchaser,
        certifying the fulfillment of the conditions specified in paragraphs (a)
        and (b)
        of Sections
        9.01 and 10.01,
        to the
        extent they relate to the Purchaser or the Purchaser Parent;

       

      (iii)  the
        Escrow Agreement executed by the Purchaser;

       

      (iv)  the
        certificate of incorporation of the Purchaser certified as of the most recent
        practicable date by the State of Delaware;

       

      (v)  a
        certificate of the State of Delaware as to the good standing of the Purchaser
        in
        such jurisdiction as of the most recent practicable date;

       

      (vi)  a
        certificate of the Secretary of Purchaser, certifying as to the bylaws of
        the
        Purchaser and as to the resolutions of the board of directors of the Purchaser
        authorizing this Agreement and the transactions contemplated hereby;

       

      (vii)  a
        legal
        opinion of Dykema Gossett PLLC, counsel to the Purchaser, in the form to
        be
        agreed upon by the Shareholders’ Representative, the Purchaser and the New
        Operator; and

       

      (viii)  the
        Sick
        Time Agreement executed by the Purchaser.

       

      (d)  At
        the
        Closing, the New Operator shall deliver or cause to be delivered to the
        Shareholders and the Purchaser:

       

      (i)  a
        certificate, dated as of the Closing Date, executed by an officer of New
        Operator, certifying the fulfillment of the conditions specified in paragraphs
        (a) and (b) of Sections
        8.01 and 9.01,
        to the
        extent they relate to the New Operator;

       

      (ii)  the
        Escrow Agreement executed by the New Operator;

       

      (iii)  the
        certificate of organization of the New Operator certified as of the most
        recent
        practicable date by the State of Ohio;

       

      (iv)  a
        certificate of the State of Ohio as to the good standing of the New Operator
        in
        such jurisdiction as of the most recent practicable date;

       

      (v)  a
        certificate of the Secretary of the New Operator, certifying as to the
        resolutions of the managers or members of the New Operator authorizing this
        Agreement and the transactions contemplated hereby; 

       

      (vi)  a
        legal
        opinion of Benesch, Friedlander, Coplan & Aronoff LLP, counsel to the New
        Operator, in the form to be agreed upon by the Shareholders’ Representative, the
        Purchaser and the New Operator; and

       

      (vii)  the
        Sick
        Time Agreement executed by the New Operator.

       

                                                      Article
        III  

                                      Representations
        and
        Warranties Regarding the Companies

       

      As
        an
        inducement to the Purchaser, the Purchaser Parent and the New Operator to
        enter
        into this Agreement, the Companies and the Shareholders, jointly and severally,
        hereby represent and warrant to the Purchaser, the Purchaser Parent, the
        New
        Operator and the New Operator Parent as follows.

       

      3.01.  Organization
        and Power.

       

      (a)  Each
        Company is duly organized, validly existing and in good standing under the
        Laws
        of its state of incorporation or formation. Each Company has all Licenses
        and
        authorizations necessary to own its properties and to carry on its businesses
        as
        now being conducted and is duly qualified to do business as a foreign
        corporation and is in good standing under the Laws of each state or other
        jurisdiction, if any, except where the failure to obtain such Licenses or
        authorizations or to qualify would not have a Material Adverse Effect on
        such
        Company. Each Company has provided the Purchaser with true and correct copies
        of
        its Charter Documents. No
        Company has qualified to do business outside of its state of incorporation
        or
        organization.

       

      (b)  Schedule
        3.01
        contains
        a complete and correct list of all of the officers and directors or manager
        and
        members of each Company, as applicable. The minute books of each Company
        contain
        complete and correct copies of the minutes of each meeting and each action
        by
        written consent of each of its board of directors (or comparable governing
        body)
        or shareholders or members, as applicable, and the stock or membership interest
        ledger of each Company and contains a complete and correct record of all
        issuances and transfers of capital stock or membership interests of each
        Company.

       

      3.02.  Authorization;
        No Violation.
        The
        execution, delivery and performance by each Company of this Agreement and
        all
        Ancillary Documents to which the Company is a party and the consummation
        of the
        transactions contemplated hereby and thereby have been duly and validly
        authorized by all requisite corporate, company or partnership action and
        no
        other corporate, company or partnership proceedings on the part of any Company
        are necessary to authorize the execution, delivery or performance of this
        Agreement and all Ancillary Documents to which it is a party. This Agreement
        and
        all Ancillary Documents to which a Company is a party constitute valid and
        binding obligations of the Company enforceable against the Company in accordance
        with their respective terms, subject to bankruptcy, insolvency, reorganization,
        moratorium and other similar Laws relating to creditors’ rights generally, by
        general equitable principles (regardless of whether such enforceability is
        considered in a proceeding in equity or at Law) or by an implied covenant
        of
        good faith and fair dealing. Except for agreements relating to Indebtedness
        which will be paid off on the Closing Date, the execution, delivery and
        performance of this Agreement and all Ancillary Documents to which a Company
        is
        a party and the consummation of the transactions contemplated thereby do
        not and
        shall not conflict with or result in any breach of any of the provisions
        of,
        constitute a default under, result in a violation of, or cause the acceleration
        of any obligation under, or require any authorization, consent, approval,
        exemption or other action by or notice to any Governmental Agency under the
        provisions of any Company’s Charter Documents or any Contract to which any
        Company is bound or affected or any Law to which any Company is subject or
        by
        which any of the Assets of any Company is bound,
        other
        than any such matters which would not have a Material Adverse Effect on such
        Company.

       

      3.03.  Subsidiaries.
        Except
        as disclosed on Schedule
        3.03,
        none of
        the Companies has any Subsidiaries nor do any of the Companies own any shares
        of
        capital stock, membership interests, partnership interest, joint venture
        interest or other security or interest in any Person. None of the Companies
        has
        any direct or indirect right to acquire any interest or investment in any
        Person.

       

      3.04.  Financial
        Statements.
        Each of
        the Companies and the Shareholders have furnished the Purchaser with (a)
        unaudited balance sheets of each Company as of March 31, 2005 (the “Company
        Latest Balance
        Sheet”)
        and
        the related unaudited statements of income and cash flows for the period
        ended
        March 31, 2005, and (b) reviewed balance sheets of each Company as of December
        31, 2004 and December 31, 2003, and the related reviewed statements of income
        and cash flows for the years then ended (collectively with the Company Latest
        Balance Sheet, the “Company
        Statements”).
        Each
        of the Company Statements (including in all cases the notes thereof) has
        been
        based upon the information contained in the Companies’ books and records (which
        are accurate and complete in all material respects), has been prepared in
        accordance with GAAP consistently applied throughout the periods covered
        thereby, contain proper accruals and adequate reserves, and presents fairly,
        in
        all material respects, the financial condition, results of operations,
        shareholders’ equity and cash flows of each Company, as applicable, as of the
        times and for the periods referred to therein, except that the Company
        Statements described in clause (a) above are subject to year-end adjustments
        (none of which would be material, individually or in the aggregate). Since
        the
        date of the Company Latest Balance Sheet through the date hereof, there has
        been
        no material adverse change in the financial condition, operating results,
        assets, operations, prospects, employee relations, supplier relations or
        customer relations of each Company and each Company has conducted the Business
        only in the Ordinary Course of Business. 

       

      3.05.  Capitalization. 

       

      (a)  Schedule
        3.05
        sets
        forth (i) the number and classes of the authorized capital stock or membership
        interests of each Company, other than Wexford, and (ii) the total number
        of
        issued and outstanding shares of each class of the capital stock or membership
        interests of each Company, other than Wexford, the certificate number of
        each
        certificate which represents such shares or units, and the name of the
        Shareholder who holds each such certificate. 

       

      (b)  All
        of
        the issued and outstanding shares of capital stock or membership interests
        of
        each Company are validly issued, and, to the extent applicable, fully paid
        and
        nonassessable and owned, beneficially and of record, by the Shareholders
        in the
        classes, amounts and percentages disclosed on Schedule
        3.05,
        and no
        shares of capital stock or membership interests are subject to, or have been
        issued in violation of, preemptive rights. All issuances, sales and repurchases
        by each Company of its shares of capital stock or membership interests have
        been
        effected in compliance with all applicable Laws, including applicable federal
        and state securities Laws. 

       

      (c)  PNCN
        and
        PNP are the only partners of Wexford and hold 40% and 60%, respectively,
        of the
        partnership interests of Wexford. The Wexford partnership interests are not
        certificated. Neither PNCN nor PNP owns any assets of any kind other than
        their
        respective partnership interests in Wexford and cash in a bank account and
        neither conducts any business operations of any kind, other than the ownership
        of the Wexford partnership interests.

       

      (d)  No
        Company has outstanding (i) any stock, membership interests, partnership
        interests or other securities convertible into or exchangeable for any such
        equity interests, or (ii) any options, warrants or rights to subscribe for
        or to
        purchase its any stock, membership interests, partnership interests or any
        stock, membership interests, partnership interests or securities convertible
        into or exchangeable for any such equity interests. No Company is subject
        to any
        obligation (contingent or otherwise) to repurchase or otherwise acquire or
        retire any shares of its any stock, membership interests or partnership
        interests or any warrants, options or other rights to acquire any such equity
        interests. There are no voting agreements, voting trusts or other agreements
        (including contractual or statutory preemptive rights or cumulative voting
        rights), commitments or understandings with respect to the voting or transfer
        of
        the capital stock, membership interests or partnership interests of any
        Company.

       

      3.06.  Title
        and Condition of Properties.

       

      (a)  Schedule
        3.06(a)
        contains
        a complete and accurate list of all real property, leaseholds or other interests
        therein owned by each Company (the “Real
        Property”).
        The
        Companies and the Shareholders have delivered or made available to the Purchaser
        copies of the deeds and other instruments (as recorded) by which each Company
        acquired such Real Property, and copies of all title insurance policies,
        opinions, abstracts and surveys in the possession of the Shareholders or
        each
        Company relating to such Real Property. 

       

      (b)  Schedule
        3.06(b)
        contains
        a detailed list of all the tangible property grouped as to type, including
        the
        cost, accumulated depreciation and net book value, used in the operation
        of the
        Facilities (the “Tangible
        Property”).
        Each
        Company has good and marketable fee simple title to the Tangible Property
        free
        and clear of all Liens other than the Permitted Liens and Liens relating
        to
        Indebtedness which will be paid off at Closing. Except as disclosed on
Schedule
        3.06(b),
        all of
        the Tangible Property is located at the Real Property and the Companies have
        the
        full and unqualified right to require the immediate return of any of its
        Tangible Property which is not located at the Real Property. To the knowledge
        of
        the Shareholders and the Companies, all Tangible Property is in good working
        order and repair and is sufficient for the operation of the Facilities as
        presently conducted. Except as disclosed on Schedule
        3.06(b),
        to the
        knowledge of the Shareholders and the Companies, all contracts or agreements
        pursuant to which the Companies may hold or use any interest owned or claimed
        by
        it in or to the Tangible Property are in full force and effect.
        No
        Company has received written notice claiming that any such contracts or
        agreements are not in full force and effect.

       

      (c)  Each
        Company owns good and marketable title, free and clear of all Liens, to all
        of
        the personal property and assets shown on the Company Latest Balance Sheet
        or
        acquired thereafter in the Ordinary Course of Business or located at any
        of the
        Facilities, except for Permitted Liens and Liens relating to Indebtedness
        which
        will be paid off at Closing.

       

      (d)  Except
        as
        disclosed on Schedule
        3.06(d),
        to the
        knowledge of the Shareholders and the Companies, each Company’s buildings,
        machinery, equipment and other tangible assets used in the operation of the
        Facilities are in good operating condition and repair and are usable in the
        Ordinary Course of Business as conducted on the date of this Agreement. Each
        Company owns or leases under valid leases all buildings, machinery, equipment
        and other tangible assets necessary for the conduct of the Business as conducted
        on the date of this Agreement. All buildings, improvements or other property
        owned or leased by each Company are adequately supplied with utilities and
        other
        services at customary charges necessary for the operation thereof (including
        gas, electricity, water, telephone, sanitary and storm sewer and access to
        public roads). Any tap fees, hook-up fees or other associated charges accrued
        to
        date with respect to the Facilities have been fully paid with respect to
        all
        potable and industrial water and all gas, electrical, steam, compressed air,
        telecommunication, sanitary and storm sewage lines and systems and other
        similar
        systems serving the Facilities and no such fees or charges remain outstanding.
        The Tangible Property, buildings, plants, structures and equipment of each
        Company are sufficient for the continued conduct of the Business of such
        Company
        after the Closing, in substantially the same manner as conducted prior to
        the
        Closing.

       

      (e)  There
        is
        no material violation of any applicable zoning, building, fire or other
        ordinance or other Law relating to the operation of the Business on the Real
        Property, including any applicable environmental protection or occupational
        health and safety Laws. Final certificates of occupancy and/or use have been
        duly issued for each Facility by the applicable Governmental Agency. Within
        the
        three years immediately preceding the date of this Agreement, neither any
        Company nor any Shareholder has received notice of any such violation or
        any
        condemnation proceeding with respect to the Real Property.

       

      3.07.  Licenses. 

       

      (a)  Each
        of
        the Companies possess all material Licenses from Governmental Agencies that
        are
        required by applicable Law in connection with the operation of the Facilities.
        Schedule 3.07(a)
        sets
        forth a list of all material Licenses (including any pharmacy licenses or
        other
        ancillary licenses) issued to any Company. The Companies have provided true
        and
        correct copies of the Licenses to the Purchaser and the New
        Operator.

       

      (b)  Except
        as
        disclosed on Schedule
        3.07(a)
        and
        except as would not have a Material Adverse Effect on the Companies (i) each
        of
        the Companies has complied with, and is currently complying with, its
        obligations under each of the Licenses and all such Licenses are in full
        force
        and effect, and (ii) no written notice from any Governmental Agency in respect
        to the threatened, pending or possible revocation, termination, suspension
        or
        limitation of any of the Licenses has been given to any Shareholder or any
        Company, nor has any Shareholder or Company received notice of any proposed
        or
        threatened issuance of any such notice. The Shareholders and Companies have
        made
        available to the Purchaser true, correct and complete copies of any state
        licensing survey reports received by the Companies in the five years immediately
        preceding the date of this Agreement as well as any statements of deficiencies
        and plans of correction in connection with such reports. The Shareholders
        and
        the Companies have taken all reasonable steps to correct all deficiencies
        referenced in this Section
        3.07
        and a
        description of any uncorrected deficiency is disclosed on Schedule 3.07(b).

       

      (c)  Without
        limiting the generality of the foregoing, except as disclosed on Schedule
        3.07(c)
        each
        Company and its respective equipment and operations satisfy in all material
        respects the applicable licensing and certification requirements to operate
        the
        Facilities in the state in which such Facilities are operated and the
        requirements for participation in the Government Programs.

       

      3.08.  Accounts
        Receivable.
        All
        accounts receivable of each Company that are reflected on the applicable
        Company
        Latest Balance Sheet, or on its books as of the Closing Date, represent or
        will
        represent valid obligations arising from sales actually made or services
        actually performed in the Ordinary Course of Business and are and shall be
        subject to no valid counterclaims or setoffs in excess of any reserves
        therefore.

       

      3.09.  Inventories.
        All
        inventory of food and miscellaneous supplies of each Company is reflected
        on the
        Company Latest Balance Sheet and, as of the Closing Date consistent with
        past
        practices, consisted and shall consist of inventory of a quality and quantity
        usable and saleable in the Ordinary Course of Business. 

       

      3.10.  Tax
        Matters.

       

      (a)  Each
        Company has duly filed all Tax Returns of any and every nature and description
        required to be filed by it (all such Tax Returns being accurate and complete
        in
        all material respects) and has duly paid all Taxes and other governmental
        charges (whether or not shown on any Tax Return) which have been incurred
        or are
        claimed in writing to be due from or imposed on such Company, or any of its
        properties, assets, income, franchises, leases, Licenses, sales or use by
        any
        federal, state, local or foreign Tax authorities on or prior to the date
        hereof
        and the Closing Date, other than Taxes which are being contested in good
        faith
        and by appropriate proceedings and as to which such Company has set aside
        on its
        books adequate reserves or which may be attributable to the transactions
        contemplated hereby. The amounts recorded as reserves for Taxes on a gross
        or
        net basis on the Company Latest Balance Sheet are sufficient in the aggregate
        for payment by such Company of all unpaid Taxes (including any interest or
        penalties thereon) for the period ended as of the date of the Company Latest
        Balance Sheet or for any year or period prior thereto.

       

      (b)  Neither
        the IRS nor any state, local or foreign Tax authority has ever examined any
        income Tax Return of any Company, whether singly or as a member of an affiliated
        group, except as otherwise specifically disclosed on Schedule
        3.10,
        which
        sets forth the date or dates since December 31, 1997, through which any federal,
        state, local, foreign or other Tax authority has examined or is in the process
        of examining any Tax Returns of any Company. Except as disclosed on Schedule
        3.10,
        no
        Company is the beneficiary of any extension of time within which to file
        any Tax
        Return. There are no Liens for Taxes (other than Taxes not yet due and payable)
        upon any of the assets of any Company.

       

      (c)  Except
        as
        disclosed on Schedule
        3.10,
        neither
        the IRS nor any federal, state, local or other Tax authority is in the process
        of examining any Tax Return of any Company nor are any such exams pending,
        and,
        to the knowledge of the Shareholders and the Companies, no such exams are
        threatened. There are no disputes pending, or claims asserted, for Taxes
        upon
        any Company and, to the knowledge of the Shareholders and the Companies,
        no such
        disputes or claims are threatened.
        No
        Company has received written notice of any such dispute or claim.

       

      (d)  No
        Company has given any currently effective waivers extending the statutory
        period
        of limitation applicable to any federal, state or local Tax Return or for
        any
        period or agreed to an extension of time with respect to a Tax assessment
        or
        deficiency.

       

      (e)  No
        Company has in effect any power of attorney or authorization to any other
        Person
        to represent it with respect to any Taxes.

       

      (f)  No
        claim
        has ever been made by an authority in a jurisdiction where any Company does
        not
        file Tax Returns that such Company is or may be subject to taxation by that
        jurisdiction.

       

      (g)  No
        Company has filed any consolidated federal income Tax Return with an “affiliated
        group” (within the meaning of Section 1504 of the Code), where such Company was
        not the common parent of the group.

       

      (h)  No
        Company is, or has been, a party to any Tax allocation or sharing Contract
        pursuant to which it has any contingent or outstanding Liability to
        anyone.

       

      (i)  No
        Company has any Liability for Taxes of any Person as a transferee, or successor
        by contract, or otherwise.

       

      (j)  No
        Company has filed a consent under Section 341(f) of the Code.

       

      (k)  The
        Companies have provided the Purchaser with true and correct copies of each
        Company’s federal, state and local income Tax Returns filed on or prior to the
        date hereof and all examination reports, if any, relating to the audit of
        such
        Tax Returns by the IRS or other Tax authority for each taxable year beginning
        on
        or after January 1, 1998.

       

      (l)  All
        monies required to be withheld from employees, managers, independent
        contractors, equityholders or creditors of each Company for Taxes, or collected
        from customers or others as Taxes, have, in all material respects, been withheld
        as appropriate and collected and paid, when due, to the appropriate Governmental
        Agency, or if such payment is not yet due, an adequate reserve has been
        established for such Taxes.

       

      (m)  No
        Company has made any payments, is obligated to make any payments, or is a
        party
        to any agreement that could obligate it to make any payments that will not
        be
        deductible under Code Section 280G.

       

      (n)  No
        Company has been a United States real property holding corporation within
        the
        meaning of Code Section 897(c)(2) during the applicable period specified
        in Code
        Section 897(c)(1)(A)(ii). No Company has acquired any United States real
        property interest, as defined in Code Section 897(c), from a foreign
        Person
        without complying with the withholding requirements contained in Code Section
        1445.

       

      (o)  Each
        Company has disclosed on its federal income Tax Returns all positions taken
        therein that could give rise to a substantial understatement of federal income
        Tax within the meaning of Code Section 6662.

       

      (p)  No
        Company has participated in a “reportable transaction” within the meaning of
        Section 1.6011-4(b) of the Treasury Regulations.

       

      (q)  No
        Company will be required to include any item of income in, or exclude any
        item
        of deduction from, taxable income for any taxable period (or portion thereof)
        ending after the Closing Date as a result of any:

       

      (i)  change
        in
        method of accounting for a taxable period ending on or prior to the Closing
        Date;

       

      (ii)  “closing
        agreement” as described in Code Section 7121 (or any corresponding or similar
        provision of state, local or foreign income Tax Law) executed on or prior
        to the
        Closing Date;

       

      (iii)  installment
        sale or open transaction disposition made on or prior to the Closing Date;
        or

       

      (iv)  prepaid
        amount received on or prior to the Closing Date.

       

      (r)  No
        Company has distributed equity interest of another Person, or has had any
        of its
        equity interests distributed by another Person, in a transaction that was
        purported or intended to be governed in whole or in part by Code Section
        355 or
        Code Section 361.

       

      (s)  Except
        as
        disclosed on Schedule
        3.10,
        each of
        Copley, Hanover I and Suburban (and any predecessor company) has been a validly
        electing S corporation within the meaning of Code Sections 1361 and 1362
        at all
        times since its inception. Each of Copley, Hanover I and Suburban shall revoke
        its S election effective prior to the Closing Date. Hanover II shall elect
        to be
        taxed as a C corporation prior to the Closing Date.

       

      3.11.  Contracts
        and Commitments.

       

      (a)  Except
        as
        set forth in Schedule
        3.11(a)
        and
Schedule
        3.18,
        no
        Company is a party to or bound by any written or oral:

       

      (i)  provider
        agreement;

       

      (ii)  any
        agreements or arrangements with physicians or sources of referrals to any
        Facility;

       

      (iii)  bonus,
        pension, profit sharing, retirement or deferred compensation plan or stock
        purchase, stock option, hospitalization insurance or similar plan or practice,
        whether formal or informal, or severance agreements or arrangements or contracts
        requiring any Company to pay post-retirement medical benefits;

       

      (iv)  Contract
        with any labor union or Contract for the employment of any officer, individual
        employee or other person on a full-time, part-time or consulting
        basis;

       

      (v)  Contract
        relating to or evidencing any Indebtedness or relating to mortgaging, pledging
        or otherwise placing a Lien on any of its Assets;

       

      (vi)  guarantee
        of any Indebtedness, other than endorsements made for collection in the Ordinary
        Course of Business;

       

      (vii)  Contract
        with respect to the lending or investing of funds to or in other
        Persons;

       

      (viii)  license
        or royalty Contract;

       

      (ix)  Contract
        under which it is lessee of or holds or operates any personal property owned
        by
        any other Person, including any resident funds;

       

      (x)  Contract
        under which it is lessor of or permits any third Person to hold or operate
        any
        property, real or personal, owned or controlled by it;

       

      (xi)  Contract
        or group of related Contracts with the same Person for the purchase or sale
        of
        products or services other than the Customer Contracts (defined
        below);

       

      (xii)  Contract
        with any Person continuing over a period of more than six months from the
        date
        or dates thereof, not terminable by it on 30 days’ or less notice without
        penalties;

       

      (xiii)  Contract
        which prohibits it from freely engaging in business or in any way restrains
        its
        business activities anywhere in the world;

       

      (xiv)  Contract
        relating to the supply or the distribution of its products;

       

      (xv)  Contract
        with any officer, director, employee, manager, partner, equityholder, employee
        or other Affiliate; or

       

      (xvi)  Contract
        requiring the consent of any party thereto upon a change in control of any
        Company, containing any provision which would result in a modification of
        any
        rights or obligations of any party thereunder upon a change in control of
        any
        Company or which would provide any party any remedy (including rescission
        or
        liquidated damages) in the event of a change in control of any
        Company.

       

      (b)  No
        Contract has been breached in any material respect by any Company and no
        Contract has been breached in any material respect or canceled by the other
        party thereto. Each of the Contracts is valid, enforceable and in full force
        and
        effect in accordance with the terms thereof. No Contract has been amended,
        modified, supplemented or otherwise altered orally, in writing or by course
        of
        conduct except as disclosed on Schedule
        3.11.
        Since
        the date of the Company Latest Balance Sheet, no supplier or customer of
        any
        Company has notified such Company or any Shareholder that it shall stop or
        decrease in any material respect the rate of business done with such Company.
        To
        the knowledge of the Shareholders and the Companies, no supplier or customer
        of
        any Company intends to stop or decrease in any material respect the amount
        of
        business done with such Company or that any such supplier or customer intends
        to
        stop doing business after the Closing on substantially the same terms (including
        quantities) as prior to the Closing and no Company has received written notice
        from any supplier or customer to such effect. Each Company has, in all material
        respects, performed all the obligations required to be performed by it to
        the
        date of this Agreement and is not in receipt of any claim of default under
        any
        Contract, to which it is a party. No event has occurred which with the passage
        of time or the giving of notice or both would result in a breach or default
        under any Contract to which any Company is a party and, to the knowledge
        of the
        Shareholders and the Companies, no such event is threatened or
        pending.

       

      (c)  The
        Purchaser has been supplied with a true and correct copy of all written
        Contracts which are referred to on Schedule
        3.11
        (the
“Customer
        Contracts”),
        together with all amendments, waivers or other changes thereto, and a written
        description of all material terms of any such oral Contracts.
        Other
        than the Customer Contracts, there are no other material Contracts relating
        to
        the operation of the Business or the ownership of, or right to use, the
        Assets.

       

      (d)  There
        is
        no pending or, to the knowledge of the Shareholders and the Companies,
        threatened termination, cancellation, limitation, modification or change
        in any
        of the Companies business relationships with any customer or supplier or
        group
        of customers or suppliers related to the Business
        that
        might have a Material Adverse Effect on the Business.

       

      3.12.  Accreditation;
        Medicare and Medicaid; Third Party Payor Reimbursement.

       

      (a)  Each
        Facility is duly licensed by the appropriate authority and certified by Medicare
        and Medicaid for the operation of nursing facility beds. Schedule
        3.12(a)
        sets
        forth the authority by which each Facility is licensed and the number of
        nursing
        facility beds and other purposes for which each Facility is certified. All
        such
        licenses are unrestricted, unconditional, in good standing, in full force
        and
        effect and subject to no waiver or limitation.

       

      (b)  No
        life
        safety code waiver, vendor hold, decertification proceeding or licensure
        revocation, termination or suspension proceeding affecting any Facility,
        including any payment ban or admission ban, is currently pending or has been
        issued or pursued during the two years immediately preceding the date of
        this
        Agreement. Except as disclosed on Schedule
        3.12(b),
        no
        civil monetary penalty has been imposed or assessed on any Company during
        the
        two years immediately preceding the date of this Agreement. No Company or
        Shareholder has knowledge, nor any reason to believe, that the good standing
        of
        any such license is in jeopardy. No Company or Shareholder has received notice
        from any Governmental Agency requiring the correction of any condition with
        respect to any Facility which has not been the subject of a plan of correction
        for which compliance has been effected. There are no outstanding deficiencies
        or
        work orders for any Governmental Agency having jurisdiction over any Facility
        requiring conformity to any applicable Laws, including the Laws of any state
        or
        federal health care programs. No Shareholder, Company or Facility has received
        any notice of any claim, requirement or demand of any licensing or certifying
        agency supervising or having authority over the Facility or otherwise to
        rework
        or redesign it or to provide additional furniture, fixtures, equipment or
        inventory so as to conform to or comply with any existing Laws for which
        no
        waiver exists and which has not been fully satisfied prior to the date hereof
        or
        which shall not be satisfied prior to the Closing.

       

      (c)  Except
        as
        disclosed on Schedule 3.12(c),
        each
        Facility is currently accredited by the JCAHO. The Shareholders and Companies
        have made available to the Purchaser true, complete and correct copies of
        the
        most recent JCAHO accreditation survey report for each Facility and a list
        and
        description of events in the five years immediately preceding the date of
        this
        Agreement at each of the Facilities that constitute a “Sentinel Event” as
        defined by the JCAHO, if any. The Shareholders and the Companies have taken
        all
        reasonable steps to correct all material deficiencies referenced in this
        Section
        3.12.
        

       

      (d)  Except
        as
        disclosed on Schedule 3.12(d),
        each
        Facility is eligible to receive payment without restriction on Medicare and
        Medicaid and each Facility is a “provider” with a valid and current provider
        agreement and with one or more provider numbers with the federal Medicare
        and
        the applicable Medicaid programs of the states in which such Facility operates
        (the “Government
        Programs”).
        Except as reimbursement payment is escrowed as a consequence of the CHOW
        Notice,
        each of the Facilities has received Medicare or Medicaid reimbursement and
        is
        eligible to receive payment without restriction under Medicare and Medicaid.
        Except as disclosed on Schedule
        3.12(d),
        the
        Facilities are in compliance in all material respects with the conditions
        for
        participation in the Government Programs and Private Programs and have received
        all approvals or qualifications necessary for capital reimbursement on the
        Real
        Property. All billing practices of the Companies and the Facilities to third
        party payors, including the Government Programs and the Private Programs,
        have
        been in compliance in all material respects with all applicable Laws,
        regulations and policies of such third party payor and no Shareholder, Company
        or Facility has knowingly billed or received any payment or reimbursement
        in
        excess of the amounts allowed by Law. Except as disclosed on Schedule
        3.12(d),
        neither
        the Shareholders nor the Company have received written notice of any pending
        or
        threatened proceeding or investigation by the OIG or other Governmental Agency
        or under the Government Programs involving the Companies, the Shareholders,
        any
        of the Facilities or the Real Property. No Shareholder, Company or Facility
        (i)
        currently operates under a Corporate Integrity Agreement entered by the OIG
        or
        other Governmental Agency, or (ii) has received any written complaints or
        complaints through telephonic hotlines from the Employees, independent
        contractors, vendors, physicians or any other Person that would indicate
        a
        violation of any Laws. The Shareholders have made available to the Purchaser
        and
        the New Operator true, correct and complete copies of the most recent Medicare
        and Medicaid certification survey reports of each Facility, including any
        statement of deficiencies and plans of correction, and such Facility’s
        corrective action plans related thereto. The Shareholders and the Companies
        have
        taken all reasonable steps to correct all deficiencies referenced to this
        Section
        3.12(d)
        and a
        description of any uncorrected
        deficiency is disclosed on Schedule
        3.12(d).

       

      (e)  The
        Facilities participate in those private, non-governmental programs (including
        any private insurance program) disclosed on Schedule 3.12(e)
        under
        which it directly or indirectly is presently receiving payments in excess
        of
        $50,000 per annum (such private, non-governmental programs are referred to
        collectively as “Private
        Programs”).

       

      (f)  The
        Companies have timely filed, or caused to be filed, all cost reports required
        by
        third party payors, including Government Programs and Private Programs, or
        with
        any Governmental Agency, and, except as disclosed on Schedule 3.12(f),
        all
        such reports are complete and accurate in all material respects. Except as
        disclosed on Schedule
        3.12(f),
        the
        Companies have been in compliance in all material respects with filing
        requirements with respect to cost reports of each Facility, and such reports
        do
        not claim that any Facility has received payment or reimbursement materially
        in
        excess of the amount provided or allowed by applicable Law or any applicable
        agreement, except where reimbursement was noted on the cost report. The
        Companies have provided the Purchaser and the New Operator with true and
        correct
        copies of all such reports for the three most recent fiscal years of each
        Facility. No Shareholder or Company has received written notice of a material
        dispute between any Facility and the applicable government agency, including
        any
        fiscal intermediary or carrier, federal, state or local government body or
        entity, or the Administrator of the Center for Medicare and Medicaid Services,
        with respect to any Government Program cost reports or claims filed on behalf
        of
        the Companies, on or before the date of this Agreement.

       

      (g)  No
        Company is a party to, and neither any Company nor any Shareholder has received
        written notice of the commencement of, any investigation or debarment
        proceedings or any governmental investigation or action (including any civil
        investigation demand or subpoena) under the False Claims Act (31 U.S.C. Section
        3729 et seq.), the Anti-Kickback Act of 1986 (41 U.S.C. Section 51 et seq.),
        the
        Federal Health Care Programs Anti-Kickback statute (42 U.S.C. Section
        1320a-7a(b)), the Ethics in Patient Referrals Act of 1989, as amended (Stark
        Law) (42 U.S.C. 1395nn), the Civil Money Penalties Law (42 U.S.C. Section
        1320a-7a), or the Truth in Negotiations (10 U.S.C. Section 2304 et seq.),
        Health
        Care Fraud (18 U.S.C. 1347), Wire Fraud (18 U.S.C. 1343), Theft or Embezzlement
        (18 U.S.C. 669), False Statements (18 U.S.C. 1001), False Statements (18
        U.S.C.
        1035) and Patient Inducement Statute and equivalent state statutes or any
        rule
        or regulation promulgated by a Governmental Agency with respect to any of
        the
        foregoing (the “Healthcare
        Fraud Laws”)
        affecting the Shareholders or the Companies with respect to the Companies
        and
        the Business. For the five years immediately preceding the date of this
        Agreement, each Company has been in full compliance with all applicable
        Healthcare Fraud Laws.

       

      (h)  For
        the
        five years immediately preceding the date of this Agreement, no Company has
        been
        investigated or charged with any violation involving false, fraudulent or
        abusive practices relating to its participation in a Government Program,
        nor has
        any Shareholder or any Company (i) knowingly and willfully made or caused
        to be
        made a false statement or representation of a material fact in any applications
        for any benefit or payment under any Governmental Program, (ii) knowingly
        and
        willfully made or caused to be made any false statement or representation
        of a
        material fact for use in determining rights to any benefit or payment under
        any
        Governmental Program, (iii) knowingly and willfully failed to disclose any
        event
        affecting the initial or continued right to any benefit or payment under
        any
        Governmental Program on their own behalf or on behalf of another, with intent
        to
        secure such payment or benefit fraudulently, (iv) knowingly and willfully
        solicited, paid or received any remuneration (including kickback, bribe or
        rebate), directly or indirectly, in violation with any applicable Law, (v)
        presented or caused to be presented a claim for reimbursement for services
        that
        is for an item or service that was known or should have been known to be
        (A) not
        provided as claimed or (B) false or fraudulent, or (vi) knowingly and willfully
        made or caused to be made or induced or sought to induce the making of any
        material false statement or representation (or omitted to state a material
        fact
        required to be stated therein or necessary to make the statements contained
        therein not materially misleading) of a material fact with respect to (A)
        a
        Facility in order that the Facility may qualify for a Governmental Agency
        certification or (B) information to be provide under 42 U.S.C. Section
        1320a-3.

       

      (i)  The
        Companies are in compliance in all material respects with the Standards for
        Privacy of Individually Identifiable Health Information and the Transaction
        and
        Code Set Standards which were promulgated pursuant to HIPAA.

       

      (j)  Attached
        as Schedule 3.12(j)
        is a
        copy of the Facilities’ standard resident agreement form(s). There are no
        agreements with residents of any Facility or with any other Person or
        organization which deviate significantly from the attached standard resident
        form(s).

       

      3.13.  Intellectual
        Property Rights.

       

      (a)  Schedule
        3.13
        contains
        a complete and accurate list of all (i) patented or registered Intellectual
        Property owned or licensed by each Company or used in the Business, (ii)
        pending
        patent applications and applications for registrations of other Intellectual
        Property filed by any Company, and (iii) material unregistered Intellectual
        Property owned or licensed by any Company (other than commercially available
        Software with an annual license fee or purchase price of less than $1,000).
        Schedule
        3.13
        also
        contains a complete and accurate list of all licenses and other Contract
        rights
        granted by any Company to any third party with respect to any Intellectual
        Property and all licenses and other Contract rights granted by any third
        party
        to any Company with respect to any Intellectual Property, in each case
        identifying the subject Intellectual Property. Each Company owns, and the
        Assets
        of such Company includes, all right, title and interest to, free and clear
        of
        all Liens, or such Company has the right to use pursuant to a valid and
        enforceable written license or other Contract, all Intellectual Property
        necessary for or used in the operation of the Business as presently conducted,
        including all Intellectual Property identified on Schedule
        3.13.
        The
        loss or expiration of any Intellectual Property or related group of Intellectual
        Property owned or used by each Company would not reasonably be expected to
        have
        a Material Adverse Effect on any Company, and no such loss or expiration
        is
        pending or, to the knowledge of the Shareholders and the Companies,
        threatened.

       

      (b)  There
        have been no claims made by any third party asserting the invalidity, misuse
        or
        unenforceability of any Intellectual Property owned or used by any Company
        and
        there are no valid grounds for the same. No Company has received any charge,
        complaint, claim, demand or notices of, and no Shareholder is aware of any
        facts
        that indicate a likelihood of, any infringement or misappropriation by, or
        conflict or interference with, any third party with respect to such Intellectual
        Property (including any written demand or request that any Company license
        any
        rights from a third party). To the knowledge of the Shareholders and the
        Companies, the conduct of the Business has not infringed, misappropriated
        or
        conflicted with and does not infringe, misappropriate or conflict with any
        Intellectual Property of any other Person. To the knowledge of the Shareholders
        and the Companies, the Intellectual Property owned by or licensed to each
        Company has not been infringed, misappropriated or conflicted by any other
        Person. No Company has received written notice claiming that the conduct
        of the
        Business or the Intellectual Property owned or licensed by such Company has
        infringed, misappropriated or conflicted with any Intellectual Property of
        any
        other Person. The Intellectual Property disclosed on Schedule
        3.13
        shall be
        owned or otherwise available for use by each Company on substantially identical
        terms and conditions immediately after the Closing.

       

      3.14.  Litigation;
        Proceedings.
        Except
        as disclosed on Schedule
        3.14,
        there
        are no actions, suits, proceedings, orders or investigations pending or,
        to the
        knowledge of the Shareholders and the Companies, threatened, against or
        affecting any Company or the Company Shares at law or in equity, or before
        or by
        any Governmental Agency and there is no basis for any of the foregoing. No
        shareholder, officer, director, manager, member, partner, employee or agent
        of
        any Company has been or is authorized to make or receive, and no Shareholder
        knows of any such Person making or receiving, any bribe, kickback or other
        illegal payment at any time. Within the three years immediately preceding
        the
        date of this Agreement, no Company nor any Shareholder has received any opinion
        or legal advice in writing to the effect that any Company is exposed from
        a
        legal standpoint to any Liability or disadvantage which may be material to
        the
        Business as previously or presently conducted.

       

      3.15.  Brokerage.
        No
        broker, finder or financial advisor or other person is entitled to any brokerage
        fees, commissions, finders’ fees or financial advisory fees in connection with
        the transactions contemplated hereby by reason of any action taken by any
        of the
        Shareholders or the Companies or any of their respective directors, officers,
        members, managers, partners, employees, representatives or agents.

       

      3.16.  Governmental
        Consent, etc.
        No
        permit, consent, approval or authorization of, or declaration to or filing
        with,
        any Governmental Agency is required of any Company in connection with the
        execution, delivery or performance of this Agreement, or the consummation
        by
        each Company of any of the transactions contemplated hereby, except as disclosed
        on Schedule
        3.16.

       

      3.17.  Employees
        and Agents. 

       

      (a)  Each
        Company has complied in all material respects with all applicable Laws relating
        to the employment of labor and independent contractors, including provisions
        thereof relating to wages, hours, equal opportunity, immigration, collective
        bargaining, disabilities, family leave and the payment of social security
        and
        other Taxes. 

       

      (b)  Except
        as
        disclosed on Schedule
        3.17
        (i) no
        Company has any existing relationships with, or is a party to any collective
        bargaining agreement with, any union or employee representative, (ii) to
        the
        knowledge of the Shareholders and the Companies, there has been no union
        organization efforts by any employee of any Company, and (iii) no Company
        has
        received written notice that any such union organization efforts are threatened
        or pending. Except as disclosed on Schedule
        3.17,
        no
        Company has made any proposals regarding the terms of any Collective Bargaining
        Agreement. Except as disclosed on Schedule
        3.17,
        no
        Shareholder or Company has any knowledge of any facts that could give rise
        to
        any charge or claim of discrimination, unfair labor practices, or any other
        illegal activity with regard to any Employee. 

       

      (c)  No
        employee of any Company is subject to any noncompete, nondisclosure,
        confidentiality, employment, consulting or similar Contracts relating to,
        affecting or in conflict with the Business and related activities thereto.
        No
        Company nor any Shareholder has received any notice alleging that any violation
        of any such Contracts has occurred. Schedule
        3.17
        also
        contains a true, complete and correct list setting forth (i) the names,
        position, hiring date, current compensation rate and other compensation of
        all
        individuals currently employed by each Company on a salaried basis, (ii)
        the
        names and current compensation rate of all individuals currently employed
        by
        each Company on an hourly or piecework basis, and (iii) the names and total
        annual compensation for all independent contractors who render services on
        a
        regular basis to each Company and whose current annual compensation is in
        excess
        of $10,000 (collectively, the “Employees”).
        Schedule
        3.17
        contains
        a correct and complete list of all employees and consultants of each Company
        who
        have executed and delivered to such Company any Contract providing for the
        nondisclosure by such Person of any confidential information of such Company.
        Within the 90 days immediately preceding the Closing Date, no employee of
        any
        Company has suffered, or will have suffered, an “employment loss” with such
        Company, as the term “employment loss” is defined under the WARN Act, except as
        contemplated by Section
        7.02(a).
        Except
        as disclosed on Schedule
        3.17,
        all of
        the Employees are employees-at-will or otherwise employed such that the
        Shareholders or the Companies may terminate their employment as of the Closing
        Date without creating any meritorious cause of action against the Shareholders,
        the Companies, the Purchaser or the Purchaser Parent or otherwise giving
        rise to
        any liability for wrongful discharge, breach of contract, tort or any other
        cause at law or in equity. 

       

      3.18.  Employee
        Benefit Plans.
        For
        purpose of this Section
        3.18
        and any
        indemnification obligations of the Shareholders related to this Section
        3.18,
        EMM is
        deemed to be a “Company.” 

       

      (a)  Schedule
        3.18(a)
        contains
        a list of all employee benefit plans, within the meaning of Section 3(3)
        of
        ERISA, which each Company and/or any ERISA Affiliate maintains or maintained
        at
        any time during the five year period ending on the Closing Date or to which
        such
        Company contributes or contributed to at any time during the five year period
        ending on the Closing Date, or under which any employee or former employee,
        officer or former officer, director or former director, manager or former
        manager of such Company is covered or has benefit rights, and each other
        arrangement, program or plan pursuant to which any benefit is or shall be
        provided to an employee, former employee or retired employee whether formal
        or
        informal, including those providing any form of medical, health and dental
        insurance, pension or retirement benefits, fringe benefits, severance pay
        and
        benefits continuation, relocation assistance, vacation pay, tuition aid,
        voluntary employee benefit association benefits and matching gifts for
        charitable contributions to educational or cultural institutions (collectively,
        the “Benefit
        Plans”).
        Each
        Company has provided the Purchaser and the New Operator with true and correct
        copies of the following items with respect to each of the Benefit Plans:
        (i)
        plan and trust documents and all other insurance contracts and other funding
        arrangements, including all amendments thereto; (ii) the most recent
        determination letter received from the Internal Revenue Service with respect
        to
        each Benefit Plan that is intended to be qualified under Section 401 of the
        Code, and with respect to each welfare Benefit Plan Trust that is intended
        to be
        exempt federal income tax under Section 501(a) of the Code; (iii) the most
        recent three years’ Forms 5500 for each Benefit Plan which is required to file
        such reports, except as disclosed on Schedule
        3.18;
        and
        (iv) the most recent summary annual report and summary plan description.
        For
        purposes hereof, an “ERISA
        Affiliate”
        is any
        trade or business whether or not incorporated that together with any Company
        would be deemed a “single employer” within the meaning of ERISA Section 4001 or
        affiliated with such Company within the meaning of Code Section 414(b), (c),
        (m)
        or (o). 

       

      (b)  Except
        as
        disclosed on Schedule
        3.18(b),
        no
        Company maintains or has entered into any Benefit Plan or other document,
        plan
        or agreement that contains any change in control provisions which would cause
        an
        increase or acceleration of benefits or vesting, or contains any benefit
        entitlements (including severance pay, unemployment compensation, or any
        other
        type of payment) to employees or former employees of such Company or other
        provisions, which would cause an increase in liability of such Company or
        to the
        Purchaser as a result of the transactions contemplated by this Agreement
        or any
        related action thereafter. 

       

      (c)  Each
        of
        such Benefit Plans that is an employee pension Benefit Plan within the meaning
        of ERISA Section 3(2) and that is intended to be a qualified plan under Code
        Section 401(a): (i) has been amended to comply with current Law as required
        on
        the date hereof and will comply with current Law on the Closing Date; (ii)
        is,
        and has been, subject to a favorable determination letter issued by the Internal
        Revenue Service with respect to plan qualification or an application has
        been
        filed within the applicable remedial amendment period; and (iii) to the
        knowledge of the Shareholders and the Companies, nothing has occurred with
        respect to the operation of any such Benefit Plan that could cause the loss
        of
        such qualification of exemption or the imposition of any liability, penalty
        or
        tax under Law. 

       

      (d)  Any
        trust
        maintained in connection with a Benefit Plan (and from its establishment)
        has
        been exempt from federal income taxation under Code Section 501 and has not,
        at
        any time, had any “unrelated business taxable income” (as defined under the Code
        Section 512) and, to the knowledge of the Shareholders and the Companies,
        nothing has occurred with respect to the operation of any such Benefit Plan
        that
        could cause the loss of such qualification of exemption or the imposition
        of any
        liability, penalty or tax under Law. 

       

      (e)  Except
        as
        disclosed on Schedule
        3.18(e):
        (i) all
        accrued contributions and other payments required to be made by each Company
        or
        any ERISA Affiliate to any Benefit Plan through the date of the Company Latest
        Balance Sheet have been made or reserves adequate for such purposes as of
        the
        date of the Company Latest Balance Sheet have been set aside therefore and
        reflected on the Company Latest Balance Sheet; (ii) no Company nor any ERISA
        Affiliate is in default in any material respect in performing any of its
        contractual obligations under any of the Benefit Plans or any related trust
        agreement or insurance contract, and there are no outstanding Liabilities
        of any
        Benefit Plan other than Liabilities for benefits to be paid to participants
        in
        such Benefit Plan; and (iii) all such contributions are fully deductible
        under
        the Code as employer contributions and there is no actual or potential liability
        for the ten percent (10%) excise tax under Code Section 4972 on nondeductible
        contributions to Benefit Plans. 

       

      (f)  There
        is
        no pending or, to the knowledge of the Shareholders and the Companies,
        threatened litigation or claim (other than routine benefit claims) by or
        on
        behalf of or against any of the Benefit Plans (or with respect to the
        administration of any of the Benefit Plans) now or heretofore maintained
        by any
        Company which allege violations of applicable Law, nor, to the knowledge
        of the
        Shareholders and the Companies, are there any facts which could form the
        basis
        for any such claim or lawsuit. 

       

      (g)  Except
        as
        disclosed on Schedule
        3.18(g),
        each
        Benefit Plan is and has been in compliance in all material respects with,
        and
        each such Benefit Plan is and has been operated in all material respects
        in
        accordance with, its terms and the applicable Laws governing such Benefit
        Plan,
        including the rules and regulations promulgated by the Department of Labor,
        the
        Pension Benefit Guaranty Corporation (the “PBGC”)
        and
        the IRS under ERISA, the Code, HIPAA, COBRA or any other applicable
        Law. 

       

      (h)  Except
        as
        disclosed on Schedule
        3.18(h),
        no
        Company nor any ERISA Affiliate maintains or has ever maintained, contributes
        or
        has ever contributed to or is or has ever been obligated to contribute to,
        any
        Benefit Plan subject to the funding standards of Code Section 412 or ERISA
        Title
        I, Subtitle B, Part 3, or to ERISA Title IV. No condition exists that presents
        a
        material risk to any Company or any ERISA Affiliate of incurring a Liability
        under Title IV of ERISA with respect to any Benefit Plan. The PBGC has not
        instituted proceedings to terminate any Benefit Plan and no condition exists
        that presents a material risk that such proceedings shall be instituted.
        Except
        as disclosed on Schedule
        3.18(h),
        all
        reporting and disclosure requirements of ERISA and the Code have been satisfied
        in all material respects with respect to each of the Benefit Plans. Except
        as
        disclosed on Schedule
        3.18(h),
        no
        Company nor any ERISA Affiliate is required to contribute to, or has contributed
        or been obligated to contribute to, any Benefit Plan that is a “multiemployer
        plan” within the meaning of Section 3(37) of ERISA nor is there any withdrawal
        liability with respect to any such multiemployer plan. 

       

      (i)  No
        prohibited transaction has occurred with respect to any Benefit Plan that
        would
        result, directly or indirectly, in the imposition of any excise Tax under
        Section 4975 of the Code nor has any reportable event under Section 4043
        of
        ERISA occurred with respect to any Benefit Plan. 

       

      (j)  All
        taxes, penalties, interest charges and other financial obligations to federal,
        state and local governments and to participant or beneficiaries under any
        Benefit Plans (i) have been or shall be met in full by the Closing Date to
        the
        extent due on or before the Closing Date, and (ii) shall be accrued in full
        on
        the Closing Date Balance Sheet, as finally determined, to the extent due
        after
        the Closing Date. 

       

      (k)  To
        the
        knowledge of the Shareholders and the Companies, with respect to each Benefit
        Plan, no change has occurred with respect to the matters covered by the last
        Form 5500 series since its filing date. 

       

      (l)  No
        Company nor any ERISA Affiliate maintains, contributes to or has ever
        contributed to or is or has been obligated to contribute to any Benefit Plan
        that is an “employee welfare benefit plan” (as defined in ERISA Section 3(1))
        that provides benefits to or on behalf of any person following retirement
        or
        other termination of employment (except to the extent required by Code Section
        4980B). 

       

      (m)  Except
        as
        disclosed on Schedule
        3.18(m),
        each
        Benefit Plan that is a “group health plan” (as defined in Code Section
        5000(b)(1)) has complied and will comply at all times in all material respects
        with the requirements of applicable Law, including COBRA obligations under
        ERISA
§601 through 607, Code §162(k) (through December 31, 1988) and Code §4980B
        (commencing on January 1, 1989), and the Health Insurance Portability and
        Accountability Act of 1996 (including the portability, non-discrimination
        and
        administrative simplification requirements of HIPAA). 

       

      (n)  Schedule
        3.18(n)
        contains
        a true and correct list of the name and address of each individual (including
        a
        covered employee, covered spouse or covered dependent-child) who is currently
        receiving or entitled to elect to receive COBRA continuation coverage under
        any
        and all of the Companies’ group health plans, except for group health plans
        maintained by EMM solely for the benefit of its management or administrative
        employees, and a copy of any COBRA notice and election forms related to these
        individuals. For each person identified on Schedule
        3.18(n),
        the
        Companies shall provide the Purchaser and the New Operator with the following
        information: (i) indication as to whether the individual is currently receiving
        COBRA coverage or instead has the right to elect (but has not yet elected)
        COBRA
        coverage (in which case, identify the last day of the 60-day election period);
        (ii) the legal name and a description of the type (e.g. medical, dental,
        vision,
        etc) of group health plan involved; (iii) the identity of the Company that
        employed the covered employee; (iv) a description of the qualifying event
        (and
        any second qualifying event) (as defined under Treas. Reg. 54.4980B-4 and
        54.4980B-7); (v) the date on which such qualifying event (and any second
        qualifying event) occurred; and (v) the last day of the maximum 18, 29 or
        36-month COBRA period; provided,
        however,
        that
        the Shareholders and the Companies shall provide all information set forth
        in
        this subsection in a manner which complies with HIPAA. 

       

      (o)  Schedule
        3.18(o)
        contains
        a true and correct list of the name and address of each covered employee
        of any
        Company (other than EMM) who is receiving group health plan coverage under
        any
        of the Companies’ group health plans. Schedule
        3.18(o)
        shall
        include the following information for each such covered employee: (i) the
        name,
        age and relationship of any dependents covered under the applicable group
        health
        plan, (ii) the legal name and description of the type of group health plan
        involved, and (iii) the identity of the Company that employs the covered
        employee; provided,
        however,
        that
        the Shareholders and the Companies shall provide all information set forth
        in
        this subsection in a manner which complies with HIPAA. 

       

      3.19.  Insurance.
        Schedule
        3.19
        lists
        and briefly describes each insurance policy maintained by each Company with
        respect to its Facilities. The Shareholders have delivered to the Purchaser
        complete and correct copies of all such policies together with all riders
        and
        amendments thereto. All of such insurance policies are in full force and
        effect,
        and no Company is or has ever been in default with respect to its obligations
        under any of such insurance policies. During the three years immediately
        preceding the date of this Agreement, no Company has ever been refused any
        insurance coverage for which it has applied or had any insurance policy
        canceled. Each Company is insured in commercially reasonable amounts with
        respect to each of the matters disclosed on Schedule
        3.19,
        except
        for any applicable deductions.

       

      3.20.  Affiliate
        Transactions.
        Except
        as disclosed on Schedule
        3.20:

       

      (a)  no
        equityholder, employee, manager, officer or director of any Company nor
        Affiliate of any equityholder, employee, manager, officer or director of
        any
        Company, and no member of the immediate family of any employee, manager,
        officer
        or director of any Company is indebted to any Company;

       

      (b)  no
        Company is indebted, and is committed to make loans or extend or guarantee
        credit, to any employee, manager, officer or director of any Company or any
        Affiliate of any employee, manager, officer or director of any Company, or
        any
        member of the immediate family of any employee, manager, officer or director
        of
        any Company; and

       

      (c)  no
        Affiliate of any Company, manager, officer or director and no member of the
        immediate family of any Affiliate of any Company, manager, officer or director
        is interested, directly or indirectly, in any material Contract with any
        Company
        except for employment agreements entered into in the Ordinary Course of Business
        and approved by the Board of Directors (or comparable governing body) of
        such
        Company. No employee and no member of the immediate family of any employee
        is
        interested, directly or indirectly, in any material Contract with any Company.
        

       

      3.21.  Compliance
        with Laws; Licenses; Certain Operations.
        Except
        as disclosed on Schedule
        3.21,
        each
        Company has complied with and is in compliance in all material respects with
        all
        applicable Laws which affect the Business or the Assets of such Company or
        to
        which such Company may otherwise be subject, and no claims have been filed
        or
        asserted against such Company within the three years immediately preceding
        the
        date of this Agreement alleging any violation of any such Law; provided,
        however,
        that
        the terms of this section shall not limit or modify in any way the
        representations and warranties contained in Section
        3.12.

       

      3.22.  Environmental
        Matters.

       

      (a)  As
        used
        in this Section
        3.22,
        the
        following terms shall have the following meanings:

       

      (i)  “Hazardous
        Materials”
        mean
        any dangerous, toxic, hazardous or radioactive pollutant, contaminant, chemical,
        waste, material or substance as defined in or governed by any federal, state
        or
        local Law or other requirement relating to such substance or otherwise relating
        to the environment or human health or safety including any waste, material,
        substance, pollutant or contaminant that might cause any injury to human
        health
        or safety or to the environment or might subject any Company to any imposition
        of costs or liability under any Environmental Law.

       

      (ii)  “Environmental
        Laws”
        mean
        all applicable federal, state and local laws, rules, regulations, codes,
        ordinances, orders, decrees, directives, Licenses and judgments relating
        to
        pollution, contamination or protection of the environment (including all
        applicable federal, state and local laws, rules, regulations, codes, ordinances,
        orders, decrees, directives, Licenses and judgments relating to Hazardous
        Materials in effect as of the date of this Agreement).

       

      (iii)  “Release”
        shall
        mean the spilling, leaking, disposing, discharging, emitting, depositing,
        ejecting, leaching, escaping or any other release or threatened release,
        however
        defined, whether intentional or unintentional, of any Hazardous
        Material.

       

      (b)  Except
        as
        would not have a Material Adverse Effect, each Company’s operation of the
        Business at or from all real estate owned, leased or operated by such Company
        at
        any time complied and complies and its operation of its Assets comply with
        all
        applicable Environmental Laws. All real estate owned, leased or operated
        by each
        Company, whether occupied by such Company or third parties or vacant, complies
        with all applicable Environmental Laws, except for any such noncompliance
        that
        would not require the Purchaser or any Company to incur any material cost
        or
        expense to remedy.

       

      (c)  Each
        Company has obtained and maintained in full force and effect all environmental
        Licenses, certificates of compliance, approvals and other authorizations
        necessary to own or operate their respective Assets (collectively, the
“Environmental
        Permits”)
        all of
        which are disclosed on Schedule
        3.22.
        Each
        Company has filed all reports and notifications required to be filed under
        and
        pursuant to all applicable Environmental Laws with respect to the operation
        of
        the Business and the operation of their respective Assets, the Real Property
        and
        any other property owned, operated, or leased by any Company at any
        time.

       

      (d)  No
        Hazardous Materials have been generated, stored, treated, contained, handled,
        located, used, manufactured, processed, buried, incinerated, deposited, or
        released by any Company on, under or about any part of any real property
        now or
        ever owned, leased or operated by any Company in violation of any Environmental
        Law where such violation would have a Material Adverse Effect on such Company.
        No real property now or ever owned, leased or operated by any Company or
        any of
        their respective other Assets contain any asbestos, urea, formaldehyde, radon,
        polychlorinated biphenyls (“PCBs”)
        or
        pesticides at levels or amounts, or in a condition, that violate any
        Environmental Law or that otherwise would give any third party a cause of
        action
        against such Company.

       

      (e)  No
        Company nor any Shareholder has received any notice alleging in any manner
        that
        any Company is, or might be potentially, responsible for any Release of
        Hazardous Materials, or any costs arising under or in violation of Environmental
        Laws with respect to its Assets, the Real Property, the operation of the
        Business or otherwise.

       

      (f)  None
        of
        the real estate now or ever owned, leased or operated by any Company is or
        has
        been listed on the United States Environmental Protection Agency National
        Priorities List of Hazardous Waste Sites, or any other list, schedule, Law,
        inventory or record of hazardous or solid waste sites maintained by any
        Governmental Agency.

       

      (g)  To
        the
        knowledge of the Shareholders and the Companies, no condition exists at any
        property which any Company owns, operates or leases, or any property which
        any
        Company formerly owned, operated, or leased or where any wastes generated
        at any
        time by any Company may have been stored, treated, or disposed, which
        constitutes or which, with the passage of time, may constitute a violation
        of or
        give rise to Liability under any Environmental Law. No Company has received
        any
        notice alleging that any such condition exists.

       

      (h)  The
        Shareholders have disclosed and delivered to the Purchaser all environmental
        reports and investigations which any Company has obtained or ordered with
        respect to its Assets (including the Real Property) or the
        Business.

       

      (i)  No
        Lien
        has been attached or filed against any Company with respect to their respective
        Assets (including the Real Property) in favor of any Governmental Agency
        or
        private entity for (i) any Liability or imposition of costs under or in
        violation of any applicable Environmental Law; or (ii) any Release of Hazardous
        Materials.

       

      3.23.  Bank
        Accounts.
        Schedule
        3.23
        hereto
        contains a complete and correct list setting forth the names of each bank
        or
        other financial institution in which each Company has an account or safe
        deposit
        or lock box, the account or box number, as the case may be, and the name
        of
        every Person authorized to draw thereon or having access thereto.

       

      3.24.  FET
        Lien.
        The
        Revocable Trust, the Remainder Trust, the Family Trust and the Garfield Estate,
        in the aggregate, have on the date of this Agreement, and will have on the
        Closing Date, sufficient assets available to them (including the proceeds
        of the
        sale of the Company Shares held by each) to pay any and all Tax liability,
        claims and other liabilities of the Garfield Estate and will have sufficient
        assets when such Taxes become due and payable to pay any and all such
        liabilities without any of the Company Shares being subject to any claim
        or
        judgment by any Governmental Agency after such Company Shares have been
        transferred to the Purchaser pursuant to this terms of this
        Agreement. 

       

      3.25.  Rent
        Roll; Bed Tax and Fees. 

       

      (a)  Schedule 3.25(a)
        contains
        a complete and correct “rent roll” for each Company, including a list of current
        residents, the term of resident agreement for each such resident and current
        occupancy rates (the “Rent
        Rolls”).
        The
        Rent Rolls shall be updated as of the Closing Date.

       

      (b)  With
        respect to each Facility, except as disclosed on Schedule 3.25(b),
        no
        Company or Shareholder has any Liability for any bed taxes or provider franchise
        fees. All such Liabilities will be paid in full prior to the Closing to the
        extent due on or before the Closing Date and, to the extent due after the
        Closing Date, all such liabilities will be accrued on the Closing Date Balance
        Sheet, as finally determined, to the extent they relate to any time before
        the
        Closing Date.

       

      3.26.  Resident
        Trust Funds.
        Each
        Company and Facility has complied in all material respects with all Laws
        relating to resident deposits in the possession of such Company made by or
        on
        behalf of residents of each Facility or other privately funded accounts for
        residents’ personal use (the “Trust
        Accounts”). 

       

      3.27.  Absence
        of Certain Developments.
        Except
        as set forth on Schedule
        3.27
        or as
        otherwise contemplated by this Agreement, since the date of the Company Latest
        Balance Sheet, no Company has:

       

      (a)  incurred
        any Indebtedness or agreed to incur any Indebtedness or incurred or become
        subject to any other material Liabilities, except current Liabilities incurred
        in the Ordinary Course of Business, and Liabilities under Contracts entered
        into
        in the Ordinary Course of Business;

       

      (b)  discharged
        or satisfied, or agreed to discharge or satisfy, any material Lien or paid
        any
        material Liability, other than current Liabilities paid in the Ordinary Course
        of Business;

       

      (c)  subjected
        to any Lien any portion of its Assets, except for Permitted Liens;

       

      (d)  sold,
        assigned or transferred any of its Assets, or agreed to do so, except in
        the
        Ordinary Course of Business, or canceled without fair consideration any material
        debts or claims owing to or held by it;

       

      (e)  sold,
        assigned, licensed, transferred, abandoned or permitted to lapse any material
        Intellectual Property or disclosed any material proprietary confidential
        information to any Person;

       

      (f)  made
        or
        granted, or agreed to make or grant, any bonus or any wage or salary increase
        to
        any employee or group of employees or made or granted any increase in any
        Benefit Plan or arrangement, or amended or terminated, or agreed to terminate
        or
        amend, any existing Benefit Plan or arrangement or adopted any new Benefit
        Plan
        or arrangement; 

       

      (g)  sold,
        leased, transferred or otherwise disposed of capital assets, real, personal,
        or
        mixed, which have an aggregate book value in excess of $10,000, mortgaged
        or
        encumbered any properties or assets, whether real or personal, which have
        an
        aggregate book value in excess of $10,000, or made or agreed to make any
        capital
        expenditures or capital commitments that aggregate in excess of $10,000,
        other
        than equipment replacements made in the ordinary course of
        business.

       

      (h)  made,
        or
        agreed to make, any loans or advances to, or guarantees for the benefit of,
        any
        Persons;

       

      (i)  suffered
        any extraordinary losses or waived any rights of material value with respect
        to
        its Assets or its Liabilities, whether or not in the Ordinary Course of Business
        or consistent with past practice;

       

      (j)  entered
        into, or agreed to enter into, any other transaction other than any transactions
        in the Ordinary Course of Business that do not involve the payment by any
        Company of more than $10,000;

       

      (k)  suffered
        any damage, destruction or casualty loss to its Assets, whether or not covered
        by insurance, other than normal wear and tear;

       

      (l)  made
        any
        material purchase commitment of services or goods which were in excess of
        the
        then current market price therefore or made any purchase commitment of services
        or goods upon terms and conditions materially more onerous than those usual
        and
        customary in the industry;

       

      (m)  made,
        or
        agreed to make, any declaration or payment to its shareholders of any dividend
        or other distribution in respect of its stock;

       

      (n)  issued
        or
        sold or caused to be issued or sold, any shares of its capital stock, or
        any
        securities or equity interests convertible into or exchangeable for any such
        shares of its capital stock, or repurchased, redeemed or otherwise acquired
        any
        outstanding shares of its capital stock or other equity interests of any
        Company, or agreed to take any such action;

       

      (o)  made
        any
        change in any method of accounting or accounting policies (for book or Tax
        purposes), other than those required by GAAP which have been disclosed in
        writing to the Purchaser;

       

      (p)  made
        or
        changed any election, changed an annual accounting period, adopted or changed
        any accounting method, filed any amended Tax Return, entered into any closing
        agreement, settled any Tax claim or assessment relating to any Company,
        surrendered any right to claim a refund of Taxes, consented to any extension
        or
        waiver of the limitation period applicable to any Tax claim or assessment
        relating to such Company, or taken any other similar action relating to the
        filing of any Tax Return or the payment of any Tax, if such election, adoption,
        change, amendment, agreement, settlement, surrender, consent or other action
        would have the effect of increasing the Tax Liability of any Company for
        any
        period ending after the Closing Date or decreasing any Tax attribute of any
        Company;

       

      (q)  delayed
        or postponed the payment of accounts payable or other Liabilities outside
        of the
        Ordinary Course of Business; or

       

      (r)  changed
        or authorized any change in its Charter Documents.

       

      3.28.  Absence
        of Undisclosed Liabilities.
        Except
        as disclosed on Schedule
        3.28,
        none of
        the Companies has any material liabilities or obligations of any nature (whether
        known or unknown and whether absolute, accrued, contingent, or otherwise)
        except
        for liabilities or obligations reflected or reserved against in the Company
        Statements and current liabilities incurred in the Ordinary Course of Business
        since the dates of the Company Statements and any accrued income tax liabilities
        reflected on the Company Statements.

       

      3.29.  Proceedings
        and Orders.
        There
        are no actions or proceedings pending or, to the knowledge of the Companies,
        threatened, against the Companies that challenge the Companies’ ability to
        consummate any of the transactions contemplated by this Agreement, and the
        Companies are not in default of any Order.

       

      3.30.  Record
        Retention Policies.
        The
        Companies do not have written retention policies regarding residents’ or
        employees’ health records, personnel files or other documentation relating to
        the Business. The practices of each Company regarding retention of such records
        comply with applicable Laws in all material respects. 

       

      3.31.  Disclosure.
        No
        representation or warranty by any Shareholder contained in this Agreement
        nor
        any of the schedules, attachments or exhibits hereto contains any untrue
        statement of a material fact or omits a material fact necessary to make the
        statements contained herein or therein, in light of the circumstances in
        which
        they were made, not misleading.

       

                                                
           Article IV  

                                      Representations
        and
        Warranties of the Shareholders

       

      As
        an
        inducement to the Purchaser, the Purchaser Parent, the New Operator and the
        New
        Operator Parent to enter into this Agreement, each Shareholder, jointly and
        severally, represents and warrants to the Purchaser, the Purchaser Parent,
        the
        New Operator and the New Operator Parent as follows.

       

      4.01.  Authorization.
        Each
        Shareholder has the requisite power and authority to execute, deliver and
        carry
        out this Agreement and the Ancillary Documents to which such Shareholder
        is a
        party. This Agreement and the Ancillary Documents to which such Shareholder
        is a
        party have been duly executed and delivered by such Shareholder and this
        Agreement and the Ancillary Documents to which such Shareholder is a party
        constitute valid and binding obligations of such Shareholder, enforceable
        against such Shareholder in accordance with their respective terms, subject
        to
        bankruptcy, insolvency, reorganization, moratorium and other similar Laws
        relating to creditors’ rights generally, by general equitable principles
        (regardless of whether such enforceability is considered in a proceeding
        in
        equity or at law) or by an implied covenant of good faith and fair
        dealing.

       

      4.02.  No
        Violation.
        The
        execution, delivery and performance of this Agreement and the Ancillary
        Documents to which such Shareholder is a party and the consummation of the
        transactions contemplated hereby and thereby do not and shall not, in any
        material respect (a) conflict with or result in any breach of any of the
        provisions of, (b) constitute a default under, result in a violation of,
        or
        cause the acceleration of any obligation under, (c) result in the creation
        of
        any Lien upon any of the Assets of any Company or such Shareholder under,
        or (d)
        require any authorization, consent, approval, exemption or other action by
        or
        notice to any court or other Governmental Agency under the provisions of
        any
        Company’s or any Shareholder’s Charter Documents or any Contract to which such
        Shareholder or any Company is bound or affected or any Law to which such
        Shareholder or any Company is subject or by which any of the Assets of any
        Company or such Shareholder is bound, except for agreements relating to
        Indebtedness that will be paid off on the Closing Date and provider agreements
        that are affected by the change of ownership of the Companies and the
        Business.

       

      4.03.  Company
        Shares.
        Each
        Shareholder is the sole record and beneficial owner of the Company Shares
        set
        forth opposite such Shareholder’s name on Schedule
        3.05
        and has,
        except as disclosed on Schedule
        4.03,
        good
        and marketable title to such Company Shares, free and clear of any Liens,
        other
        than transfer restrictions under federal and state securities Laws. Except
        as
        disclosed on Schedule
        4.03,
        upon
        consummation of the transactions provided for in this Agreement in accordance
        with the terms hereof, such Shareholder will deliver to the Purchaser good
        and
        marketable title to the Company Shares owned by him, free and clear of any
        Liens, other than transfer restrictions under federal and state securities
        Laws.
        The
        Company Shares are not subject to any contract restricting or otherwise relating
        to the voting or dividend rights or disposition of such shares. Other than
        the
        Company Shares, no Shareholder has any other equity interests or rights to
        acquire equity interests in any of the Companies.

       

      4.04.  Governmental
        Consents, etc.
        Except
        as disclosed on Schedule
        4.04,
        no
        permit, consent, approval or authorization of, or declaration to or filing
        with,
        any Governmental Agency is required of such Shareholder in connection with
        the
        execution, delivery or performance of this Agreement or any Ancillary Documents
        to which such Shareholder is a party, or the consummation by such Shareholder
        of
        any of the transactions contemplated hereby and thereby.

       

      4.05.  Proceedings
        and Orders.
        There
        are no actions or proceedings pending or, to the knowledge of the Shareholders,
        threatened, against the Shareholders or the Companies that challenge the
        Shareholders’ or the Companies’ ability to consummate any of the transactions
        contemplated by this Agreement, and neither the Shareholders nor the Companies
        are in default of any Order.

       

      4.06.  Sufficient
        Funds.
        On the
        Closing Date and thereafter, the Shareholders will have sufficient assets,
        in
        immediately available funds, to pay any amounts that they are obligated to
        pay
        hereunder.

       

      Article
        V  

      Representations
        and Warranties of the Purchaser and the Purchaser Parent

       

      As
        an
        inducement to the Shareholders, the New Operator and the New Operator Parent
        to
        enter into this Agreement, the Purchaser and the Purchaser Parent, jointly
        and
        severally, represent and warrant to the Shareholders, the New Operator and
        the
        New Operator Parent as follows. 

       

      5.01.  Company
        Organization and Power.
        The
        Purchaser and the Purchaser Parent are, respectively, a limited liability
        company and corporation, and each are duly organized, validly existing and
        in
        good standing under the Laws of the State of Delaware. Each of the Purchaser
        and
        the Purchaser Parent has all Licenses and authorizations necessary to own
        its
        properties and to carry on its businesses as now being conducted and is duly
        qualified to do business as a foreign company or corporation, as applicable,
        and
        is in good standing under the Laws of each state or country, if any, in which
        failure to obtain such Licenses or authorizations or to qualify would have
        a
        Material Adverse Effect on the Purchaser or the Purchaser Parent. Each of
        the
        Purchaser and the Purchaser Parent has provided the Shareholders with true
        and
        correct copies of its Charter Documents.

       

      5.02.  Authorization.
        The
        execution, delivery and performance by the Purchaser and the Purchaser Parent
        of
        this Agreement and the Ancillary Documents to which the Purchaser or the
        Purchaser Parent is a party and the consummation of the transactions
        contemplated hereby and thereby have been duly and validly authorized by
        all
        requisite company or corporate action, as applicable, and no other company
        or
        corporate proceedings on the part of the Purchaser or the Purchaser Parent,
        as
        applicable, are necessary to authorize the execution, delivery or performance
        of
        this Agreement or the Ancillary Documents to which it is a party. This Agreement
        and the Ancillary Documents to which the Purchaser or the Purchaser Parent
        is a
        party constitute the valid and binding obligations of the Purchaser and the
        Purchaser Parent enforceable against the Purchaser and the Purchaser Parent
        in
        accordance with their respective terms,
        subject
        to bankruptcy, insolvency, reorganization, moratorium and other similar Laws
        relating to creditors’ rights generally, by general equitable principles
        (regardless of whether such enforceability is considered in a proceeding
        in
        equity or at law) or by an implied covenant of good faith and fair
        dealing.

       

      5.03.  No
        Violation.
        The
        execution, delivery and performance of this Agreement and the Ancillary
        Documents to which the Purchaser or the Purchaser Parent is a party and the
        consummation of the transactions contemplated hereby and thereby do not and
        shall not, in any material respect (a) conflict with or result in any breach
        of
        any of the provisions of, (b) constitute a default under, result in a violation
        of, or cause the acceleration of any obligation under, or (c) require any
        authorization, consent, approval, exemption or other action by or notice
        to any
        Governmental Agency under the provisions of the Purchaser’s or the Purchaser
        Parent’s Charter Documents or any Contract to which the Purchaser or the
        Purchaser Parent is bound or affected or any Law to which the Purchaser or
        the
        Purchaser Parent is subject or by which any of the Assets of the Purchaser
        or
        the Purchaser Parent is bound.

       

      5.04.  Governmental
        Consent, etc.
        No
        permit, consent, approval or authorization of, or declaration to or filing
        with,
        any Governmental Agency is required of the Purchaser or the Purchaser Parent
        in
        connection with the execution, delivery or performance of this Agreement
        or any
        Ancillary Documents to which the Purchaser or the Purchaser Parent is a party,
        or the consummation by the Purchaser or the Purchaser Parent of any of the
        transactions contemplated hereby and thereby, except as disclosed on the
        Schedule
        5.04.

       

      5.05.  Purchase
        for Investment.
        The
        Purchaser is purchasing the Company Shares for its own account for investment
        and not for resale or distribution in any transaction that would be in violation
        of the securities Laws of the United States of America or any state thereof.
        The
        Purchaser is an “accredited investor” as defined in Rule 501 of Regulation D
        promulgated under the Securities Act of 1933, as amended.

       

      5.06.  Proceedings
        and Orders.
        There
        are no actions or proceedings pending or, to the knowledge of the Purchaser
        or
        the Purchaser Parent, threatened, against the Purchaser or the Purchaser
        Parent
        that challenge its ability to consummate any of the transactions contemplated
        by
        this Agreement, and the Purchaser and the Purchaser Parent are not in default
        of
        any Order.

       

      5.07.  Sufficient
        Funds.
        On the
        Closing Date and thereafter, the Purchaser will have sufficient assets, in
        immediately available funds, to pay the Purchase Price and any additional
        amounts that it is obligated to pay hereunder.

       

      Article
        VI  

      Representations
        and Warranties of the New Operator and the New Operator
        Parent

       

      As
        an
        inducement to the Shareholders, the Companies, the Purchaser, and the Purchaser
        Parent to enter into this Agreement, the New Operator and the New Operator
        Parent, jointly and severally, hereby represent and warrant to the Shareholders,
        the Companies, the Purchaser, and the Purchaser Parent as follows.

       

      6.01.  Corporate
        Organization and Power.
        The New
        Operator and the New Operator Parent are, respectively, a limited liability
        company and a corporation duly organized, validly existing and in good standing
        under the Laws of the State of Ohio. Each of the New Operator and the New
        Operator Parent has all Licenses and authorizations necessary to own its
        properties and to carry on its businesses as now being conducted and is duly
        qualified to do business as a foreign company or corporation, as applicable,
        and
        is in good standing under the Laws of each state or country, if any, in which
        failure to obtain such Licenses or authorizations or to qualify would have
        a
        Material Adverse Effect on the New Operator or New Operator Parent. Each
        of the
        New Operator and the New Operator Parent has provided the Shareholders with
        true
        and correct copies of its Charter Documents.

       

      6.02.  Authorization.
        The
        execution, delivery and performance by the New Operator and the New Operator
        of
        this Agreement and the Ancillary Documents to which the New Operator or the
        New
        Operator Parent is a party and the consummation of the transactions contemplated
        hereby and thereby have been duly and validly authorized by all requisite
        company action, and no other company proceedings on the part of the New Operator
        and the New Operator Parent, as applicable, are necessary to authorize the
        execution, delivery or performance of this Agreement or the Ancillary Documents
        to which it is a party. This Agreement and the Ancillary Documents to which
        the
        New Operator or the New Operator Parent is a party constitute the valid and
        binding obligations of the New Operator and the New Operator Parent enforceable
        against the New Operator and the New Operator Parent in accordance with their
        respective terms, subject to bankruptcy, insolvency, reorganization, moratorium
        and other similar Laws relating to creditors’ rights generally, by general
        equitable principles (regardless of whether such enforceability is considered
        in
        a proceeding in equity or at law) or by an implied covenant of good faith
        and
        fair dealing.

       

      6.03.  No
        Violation.
        The
        execution, delivery and performance of this Agreement and the Ancillary
        Documents to which the New Operator or the New Operator Parent is a party
        and
        the consummation of the transactions contemplated hereby and thereby do not
        and
        shall not, in any material respect (a) conflict with or result in any breach
        of
        any of the provisions of, (b) constitute a default under, result in a violation
        of, or cause the acceleration of any obligation under, or (c) require any
        authorization, consent, approval, exemption or other action by or notice
        to any
        Governmental Agency under the provisions of the New Operator’s or the New
        Operator Parent’s Charter Documents or any Contract to which the New Operator or
        the New Operator Parent is bound or affected or any Law to which the New
        Operator or the New Operator Parent is subject or by which any of the Assets
        of
        the New Operator or the New Operator Parent is bound.

       

      6.04.  Governmental
        Consent, etc.
        No
        permit, consent, approval or authorization of, or declaration to or filing
        with,
        any Governmental Agency is required of the New Operator or the New Operator
        Parent in connection with the execution, delivery or performance of this
        Agreement or any Ancillary Documents to which the New Operator or the New
        Operator Parent is a party, or the consummation by the New Operator or the
        New
        Operator Parent of any of the transactions contemplated hereby and thereby,
        except as disclosed on the Schedule
        6.04.

       

      6.05.  Proceedings
        and Orders.
        There
        are no actions or proceedings pending or, to the knowledge of the New Operator
        or the New Operator Parent, threatened, against the New Operator or the New
        Operator Parent that challenge its ability to consummate any of the transactions
        contemplated by this Agreement, and the New Operator and the New Operator
        Parent
        are not in default of any Order.

       

      6.06.  Sufficient
        Funds.
        On the
        Closing Date and thereafter, the New Operator and the New Operator Parent
        will
        have sufficient assets, in immediately available funds, to pay any amounts
        that
        either is obligated to pay hereunder.

       

      Article
        VII  

      Certain
        Covenants

       

      7.01.  Access
        and Investigation; Record Retention and Transfer. 

       

      (a)  Between
        the date of this Agreement and the Closing Date, the Shareholders and the
        Companies will, and will cause their representatives, to (i) afford the
        Purchaser and the New Operator and their respective representatives
        (collectively, the “Advisors”),
        each
        of whom has been advised of or agreed to the terms of the Confidentiality
        Agreement dated May 4, 2005, by and among the Purchaser Parent, the New Operator
        Parent and EMM, full and free access to the Real Property (including subsurface
        testing), the Facilities and each Company’s personnel, contracts, books and
        records and other documents and data, (ii) furnish the Purchaser, the New
        Operator and their respective Advisors copies of all such contracts, books
        and
        records, and other existing documents and data as the Purchaser or the New
        Operator may reasonably request, and (iii) furnish the Purchaser, the New
        Operator and their respective Advisors with such additional financial, operating
        and other data and information as the Purchaser, the New Operator or their
        respective Advisors may reasonably request.

       

      (b)  After
        the
        Closing Date, but subject to Section
        7.03,
        if
        there is a legitimate purpose (including the preparation of Tax Returns and
        preparation of the Closing Date Balance Sheet) or if there is an audit by
        the
        IRS, other Governmental Authority inquiry, or litigation or prospective
        litigation to which any Party is, or may become, a party, making necessary
        a
        Party’s access to the records of any other Party related to the Companies or the
        Business or making necessary a Party’s access to records of any other Party,
        then each Party shall allow representatives of the other Party access to
        such
        records at such Party’s place of business for the sole purpose of obtaining
        information for use described in this Agreement. 

       

      (c)  The
        Parties shall preserve all records relating to the Companies and the Business
        until the later of (i) the third anniversary of the Closing Date, or (ii)
        the
        expiration of the applicable retention period for each such class of records
        under applicable Law or, if there is no such required retention period, the
        expiration of the internal document retention policy period of the Party
        holding
        such records (the “Document
        Retention Period”).
        After
        the end of the Document Retention Period, the Party holding such records
        may
        dispose of such records in its sole discretion after providing the other
        Parties
        with sixty days advance written notice of its intention to do so. The Party
        holding such records shall make such records available to any other Party
        which,
        before the end of the Document Retention Period, notifies the holding Party
        that
        it desires to take possession of such records. If more than one Party timely
        provides such notice, then the Party holding the records shall make such
        records
        available to all Parties who provide such notice and such Parties shall be
        evenly share the cost of copying such records, if necessary. The Party holding
        the records shall make records available at a location designated by the
        holding
        Party and shall not be responsible for any transportation, copying, storage
        or
        other costs or expenses of any kind relating to such records. Notwithstanding
        anything to the contrary in this section, the Party holding the records shall
        have the right in its sole discretion to dispose of all such records on the
        30th
        day
        after the end of the Document Retention Period if the records are not removed
        from the designated location by another Party.

       

      (d)  The
        Shareholders shall be responsible at their sole cost and expense for responding
        to requests from any third party for records relating to any time period
        before
        the Closing Date. The Shareholders shall store any records which are retained
        by
        the Shareholders in an commercially reasonable manner at the warehouse
        maintained by Suburban as of the date of this Agreement in segregated space
        to
        be designated in such warehouse or such other location as the Purchaser,
        the New
        Operator, and the Shareholders’ Representative may agree. The New Operator shall
        cause such segregated space to be secured such that only the Shareholders’
        Representative shall have access to it. The Shareholders shall not move any
        records from such location without the prior written consent of the Purchaser
        and the New Operator, which consent shall not be unreasonably withheld or
        delayed. 

       

      7.02.  Employment
        Matters; Benefit Plans.
        For
        purpose of this Section
        7.02
        and any
        indemnification obligations of the Shareholders related to this Section
        7.02,
        EMM is
        deemed to be a “Company.” 

       

      (a)  Effective
        at 11:59:59 pm Cleveland, Ohio time on the day before the Closing Date (the
        “Employee
        Termination Time”),
        the
        Shareholders shall cause the Companies to terminate the employment of all
        of the
        Employees, with the Shareholders and the Companies remaining responsible
        for the
        payment of all obligations to the Employees accrued through the Employee
        Termination Time, other than any WARN Act Liabilities arising out of the
        consummation of the transactions contemplated by this Agreement and the COBRA
        obligations to the M&A Qualified Beneficiaries as set forth in Section
        7.02(f).
        

       

      (b)  The
        New
        Operator shall make employment offers to not less than 67% of the Employees
        as
        of the Effective Time, and to all of the Employees covered by the Collective
        Bargaining Agreement. All Employees who accept employment with the New Operator
        are referred to in this Agreement as the “Hired
        Employees”.
        Other
        than as set forth in this Agreement, the New Operator may establish the wages,
        rates, and terms and conditions of employment for the Hired Employees. The
        Shareholders and the Companies shall not advise or represent to the Employees
        what wage rates and terms and conditions of employment that the New Operator
        will be offering them; provided,
        however,
        that
        the New Operator may advise the Employees that if the New Operator hires
        them,
        the New Operator will honor any paid vacation time off and sick day benefits
        which are earned but unused as of the Closing Date. The Companies shall pay,
        on
        or before the 10th
        Business
        Day after the Closing Date, to the New Operator an amount equal to the aggregate
        accrued, unused paid vacation time for Hired Employees and the portion of
        paid
        vacation time that the Hired Employees have by the Closing Date accumulated
        toward their next annual allotment of paid vacation time (such aggregate
        amount,
        the “Paid
        Time Off Liability”).
        The
        Paid Time Off Liability shall be reflected on the Closing Date Balance Sheet
        as
        finally determined to the extent not paid directly by the Companies to the
        New
        Operator on or before the Closing Date. If, for any reason during the period
        beginning on the Closing Date and ending on the 18 month “anniversary” of the
        Closing Date, the New Operator does not actually incur any portion of the
        Paid
        Time Off Liability, then the New Operator shall refund the full amount of
        such
        portion to the applicable Company on or before the 15th Business Day after
        the
        date of such 18 month “anniversary.” The applicable Company shall then refund
        the full amount of such portion to the Shareholders on or before the 15th
        Business Day after receipt of such funds from the New Operator. The Companies
        shall cooperate with the New Operator’s reasonable requests to obtain copies of
        the Employees’ personnel files and to meet with the Employees; provided,
        however,
        that
        under no circumstances shall any Company have any obligation to provide the
        New
        Operator with medical records of, or any other information the distribution
        of
        which is restricted by Law relating to, any Employee without the prior written
        consent of the applicable Employee. On the Closing Date, the Shareholders
        shall
        deliver to the Purchaser and the New Operator a schedule showing the earned
        but
        unused paid vacation time off and sick day benefit for each Employee as of
        the
        Closing Date, and the amount of paid vacation time off benefit each such
        employee would earn if the Employee were to be employed by the applicable
        Company as of the Employee’s next hiring date anniversary. Such schedule shall
        be attached to this Agreement as Schedule
        7.02(b).
        On or
        before the Closing Date, the Companies, the New Operator and the Purchaser
        shall
        execute and deliver an agreement, on terms acceptable to each in their
        reasonable discretion, which shall address how the amount of Liabilities
        relating to sick time which have been earned but not used before the Closing
        Date by Hired Employees shall be calculated (the “Sick
        Time Agreement”).
        The
        Sick Time Agreement shall provide, among other things, that the Liability
        for
        sick time, as finally determined, shall be included with Paid Time Off
        Liabilities on and after the Closing Date for purposes of this subsection
        (b).

       

      (c)  Upon
        the
        termination of the Employees, each Company shall make provision for paying
        all
        accrued compensation due to its respective Employees, including the Hired
        Employees through but not including the Closing Date. Other than as set forth
        in
        this Agreement and as shall be accrued on the Closing Date Balance Sheet,
        as
        finally determined, neither the Purchaser nor the New Operator nor, after
        the
        Closing Date, any Company shall be responsible for any compensation or benefits
        owed to any Employees for periods prior to the Closing Date. 

       

      (d)  At
        the
        Closing, the Shareholders and Companies shall pay the New Operator $165,000
        in
        respect of the amount of the excess insurance premium charged to the New
        Operator for covering the “M&A Qualified Beneficiaries” (as that term is
        defined in Treas. Reg. 54.4980B-9; Q-A: 4 and 5). 

       

      (e)  Effective
        on the Closing Date, the New Operator shall recognize the union that is party
        to
        the Collective Bargaining Agreement and shall assume the obligations of Company
        that is party to the Collective Bargaining Agreement, including the hiring
        of
        all Employees covered under the Collective Bargaining Agreement. The union
        that
        is party to the Collective Bargaining Agreement shall not have any rights
        as a
        third party beneficiary of the obligations of the New Operator pursuant to
        this
        subsection. 

       

      (f)  Effective
        on the Closing Date, the New Operator (and not the Purchaser, the Companies,
        the
        Shareholders or the “selling group” (as that term is defined in Treas. Reg.
        54.4980B-9, Q-A:2)) shall assume and be fully responsible and liable to provide
        COBRA coverage to all M&A Qualified Beneficiaries under a group health plan
        maintained or established by the New Operator. In this regard, the New Operator,
        after the Closing Date, shall comply with all COBRA requirements under Law
        with
        respect to these M&A Qualified Beneficiaries (including Code Section 4980B,
        ERISA Section 601 through 607, Treas. Reg. 4980B and Labor Reg. 2590.606).
        The
        New Operator’s assumption of COBRA liability on and after the Closing Date under
        this subsection shall not relieve the Shareholders from their representations
        and warranties that the Companies and any ERISA Affiliates have, prior to
        Closing and prior to the termination of employment of the Employees as
        contemplated by Section
        7.02(a),
        fully
        complied in all material respects with the COBRA provisions under applicable
        Law, and shall only cover or include those individuals who are or were directly
        employed by one of the Companies (other than EMM or any other ERISA
        Affiliate).

       

      (g)  The
        Companies shall establish on the Closing Date Balance Sheet such reserves
        as, in
        combination with any funds being held as of the Closing Date under the Emery
        Medical Management Company VEBA (the “VEBA”),
        shall
        be sufficient to pay any and all claims under any Benefit Plan (other than
        COBRA
        obligations arising out of the termination of the employment of the Employees
        as
        contemplated by Section
        7.02(a)),
        arising out of or attributable to periods prior to the Closing and for the
        costs
        of administering such claims (“Benefit
        Plan Claims”).
        The
        amount of such reserves shall be determined by the Companies’ regular actuarial
        firm as set forth in the preceding sentence. The Shareholders shall at all
        times
        only permit distributions from the VEBA in a manner that will not jeopardize
        the
        tax-exempt status of the VEBA under the Code, and shall otherwise cause the
        VEBA
        to be maintained and administered in accordance with all applicable Laws
        until
        the earlier of the date (whether prior to or after the Closing) on which
        no
        funds remain in the VEBA, or the date on which all Benefit Plan Claims have
        been
        paid (to the extent payable from the VEBA), at which time the Shareholders
        will
        cause the VEBA to be terminated. In the event the VEBA continues in existence
        after the Closing, no Company shall make, and shall not be required to make,
        any
        contributions to the VEBA in excess of the amount accrued on the Closing
        Date
        Balance Sheet, as finally determined.
        If the
        aggregate amount of Benefit Plan Claims exceeds the amount of funds in the
        VEBA
        and the reserves contemplated by this subsection (g), then the Shareholders
        shall be responsible for the amount of such excess, subject to the limitations
        on the maximum amount of indemnification obligations as set forth in
Section
        11.03(b).

       

      (h)  Between
        the date of this Agreement and the Closing Date, the Shareholders shall,
        except
        as otherwise required pursuant to the terms of this Agreement, cause the
        Companies and any ERISA Affiliate to maintain the Benefit Plans in accordance
        with all applicable Laws.

       

      (i)  Prior
        to
        the Closing (or at least one day before Closing in the case of plan that
        is a
        pension plan (as defined in ERISA Section 3(2)), the Shareholders shall cause
        each Company (other than EMM) to cease its sponsorship of, participation
        in,
        obligation to contribute to and, in any other manner, acceptance of or continued
        responsibility for the administration or funding of any and all Benefit Plans.
        To the extent necessary, if one or more of the Companies is the sole sponsor
        of
        any such Benefit Plans, the Shareholders shall cause such Benefit Plan to
        be
        terminated by the Companies (other than EMM) effective not later than the
        Closing Date (or, if the plan is a pension plan, one day before the Closing
        Date). If one or more of the Companies is a sponsor but is not the sole sponsor
        of any such Benefit Plans, then the Shareholders shall cause the Companies
        to
        take such action as may be necessary to completely sever the Companies’ (other
        than EMM) sponsorship or participation of such Benefit Plan, effective not
        later
        than the Closing Date (or, if the plan is a pension plan, one day before
        the
        Closing Date). If the plan is a plan subject to ERISA Section 204(h), the
        Shareholders shall cause the Companies to take all further actions that may
        be
        required for the Companies (other than EMM) to cease permanently the accrual
        of
        any further benefits under the Benefit Plan including the timely issuance
        of any
        notices in advance of such cessation. In addition, the Shareholders shall
        cause
        to be taken all further actions as may be necessary to implement the Benefit
        Plan terminations and/or the discontinuance of sponsorship by the Companies
        of
        any Benefit Plan as required under this subsection in a manner that complies
        with all applicable Laws, including the preparation, submission and
        dissemination of annual reports (including Forms 5500), the providing of
        notices
        to participants, trustees and administrators, and the processing of benefit
        payments due there under.

       

      (j)  Anything
        to the contrary notwithstanding, this Agreement shall not be deemed to create
        or
        grant to any of the Employees any third party beneficiary rights or claims
        or
        any cause of action of any kind or nature.

       

      7.03.  Cost
        Reports. 

       

      (a)  The
        Shareholders shall prepare, or cause to be prepared, and file, or cause to
        be
        filed timely, all third party payor cost reports for the Facilities for periods
        prior to the Closing Date, and shall deliver copies of such reports to the
        Purchaser and the New Operator in form and content suitable in all material
        respects for filing with the appropriate governmental agency, not later than
        10
        Business Days prior to the deadline for any such report to be filed. The
        Shareholders shall be responsible for including in such cost reports all
        refunds
        or reimbursements payable to any Person or Governmental Agency with respect
        to
        payments made to the Companies before the Closing Date.

       

      (b)  After
        the
        Closing Date, the Purchaser shall grant the Shareholders sufficient authority
        to
        execute all such cost reports on behalf of the Companies; provided,
        however,
        that in
        no event shall the Shareholders cause any such cost reports to be filed until
        after the 10th
        Business
        Day after the Shareholders submit such cost report to the Purchaser for its
        review. The Purchaser, the New Operator and, after the Closing Date, the
        Companies shall cooperate with the Shareholders’ reasonable requests for
        assistance in connection with the Shareholders’ obligation to timely file or
        cause to be filed all such cost reports with the appropriate Governmental
        Agencies, including each Company’s final cost report for each Facility.

       

      (c)  Subject
        to Section
        11.03(e),
        the
        Shareholders shall pay, or cause to be paid, from its own funds and not from
        the
        Escrow Account all overpayments, recoupments, adjustments and/or recaptures
        which are or which become due pursuant to any such cost report for any period
        prior to the Closing Date concurrently with the filing of such final cost
        report
        to the extent the amount of any such overpayments, recoupments, adjustments
        and/or recaptures are not accrued on the Closing Date Balance Sheet, as finally
        determined. The Shareholders shall promptly and fully respond to any and
        all
        inquires or audits relating to such cost reports and the Purchaser and the
        New
        Operator shall permit the Shareholders access to the books and records of
        the
        Facilities for such purpose in accordance with the provisions of this Agreement.
        

       

      (d)  In
        the
        event that, after the Closing Date (i) any Governmental Agency or any other
        third party payor, with respect to any time prior to the Closing Date, withholds
        amounts from reimbursement checks of the New Operator arising from any purported
        (A) overpayment, recoupment, adjustment and/or recapture with respect to
        a
        Company attributable to amounts paid to the Companies prior to the Closing
        Date,
        (B) failure of a Company to pay assessment taxes, license fees/taxes or any
        other amounts due prior to the Closing Date, or (C) otherwise “clawsback” from
        the New Operator any insurance proceeds, rebates or other monies attributable
        to
        amounts paid to the Companies prior to the Closing Date, (ii) any civil monetary
        penalties are assessed against any of the Facilities with respect to any
        time
        prior to the Closing Date, or (iii) the New Operator incurs any Liability
        for
        any Taxes arising out of the ownership of the Assets or the operation of
        the
        Business before the Closing Date which are not accrued on the Closing Date
        Balance Sheet, as finally determined, then the Shareholders shall pay such
        amount to the New Operator on or before the tenth day after the New Operator’s
        demand; provided,
        however,
        that
        the New Operator shall be required to satisfy its rights under this section
        from
        the Escrow Account, to the extent funds remain in the Escrow Account, before
        proceeding against any Shareholder.

       

      7.04.  Survey
        Reports.
        Complete copies of any and all survey reports, and waivers of deficiencies,
        plans of correction and any other governmental investigation reports issued
        with
        respect to the Facilities during the three years immediately preceding the
        Closing Date have been provided to the Purchaser and the New Operator. The
        Shareholders and the Companies shall provide the Purchaser and the New Operator
        with any survey reports, waivers of deficiencies, plans of correction and
        any
        other governmental investigation reports issued with respect to the Facilities
        from and after the date of this Agreement through the Closing Date on or
        before
        the fifth Business Day after the receipt thereof by the Shareholders and
        the
        Companies.

       

      7.05.  Resident
        Trust Accounts.
        The
        Shareholders and the Companies shall maintain the Trust Accounts in compliance
        with residents’ rights and all applicable Laws. At the Closing, the Shareholders
        and the Companies shall deliver to the Purchaser and the New Operator a
        certified schedule of the Trust Account for each Facility. 

       

      7.06.  Affirmative
        Covenants.
        Prior
        to the Closing, the Shareholders will, except as otherwise required by the
        provisions of this Agreement, cause each Company to:

       

      (a)  conduct
        the Business only in the Ordinary Course of Business;

       

      (b)  keep
        in
        full force and effect its corporate existence and all rights, franchises
        and
        Intellectual Property relating to or pertaining to the Business;

       

      (c)  use
        its
        commercially reasonable efforts to retain its employees and agents and preserve
        its present business relationships, and continue to compensate its employees
        and
        agents in accordance with past custom and practice;

       

      (d)  maintain
        its Assets in reasonable and customary repair, order and condition and maintain
        insurance comparable to that in effect on the date of this Agreement; replace
        in
        accordance with past practice its inoperable, worn out and obsolete Assets
        with
        Assets of comparable quality; in the event of any casualty, loss or damage
        to
        any of its Assets prior to Closing, either repair or replace such Assets
        with
        Assets of comparable quality or, if Purchaser agrees in writing, transfer
        to
        Purchaser at Closing the proceeds of any insurance recovery with respect
        thereto;

       

      (e)  maintain
        its books, accounts and records in accordance with past custom and practice
        as
        used in the preparation of the Company Statements, file with the appropriate
        Tax
        authorities any and all Tax Returns required to be filed by it for the periods
        covered thereby and pay all Taxes required to be paid by it; 

       

      (f)  terminate
        or cause to be terminated the management agreements and leases except as
        disclosed on Schedule
        7.06(f);

       

      (g)  maintain
        and keep in full force and effect the insurance policies disclosed on
Schedule
        3.19.
        The
        Shareholders shall obtain a “tail” insurance endorsement for the benefit of the
        Companies with respect to those insurance policies disclosed on Schedule
        7.06(g)
        for acts
        or events occurring prior to the Closing Date, which endorsement shall extend
        until the third anniversary of the Closing Date the coverage of such policies
        as
        in effect on the date of this Agreement (the “Tail
        Coverage”);

       

      (h)  terminate
        or cause to be terminated all Contracts disclosed on Schedule
        7.06(h);
        any
        Damages incurred by the New Operator or the Purchaser in connection with
        the
        termination of the Contracts listed on Schedule
        7.06(h)
        shall be
        promptly paid by the Companies to the New Operator or Purchaser, as applicable,
        on or before the Closing Date; provided,
        however,
        that,
        to the extent such Damages are not paid by the Companies to the New Operator
        or
        Purchaser on or before the Closing Date, the Damages shall be reflected on
        the
        Closing Date Balance Sheet, as finally determined, as a liability of the
        Companies incurred in full prior to the Closing Date; and

       

      (i)  use
        its
        commercially reasonable efforts to obtain all consents and approvals necessary
        or desirable to consummate the transactions contemplated hereby, including
        with
        respect to each Contract that contains a change of control provision, a consent
        to the change of control of each Company contemplated hereby, to the Purchaser,
        and to cause the other conditions to the Purchaser’s obligation to close to be
        satisfied.

       

      7.07.  Negative
        Covenants.
        Prior
        to the Closing, without the prior written consent of the Purchaser and the
        New
        Operator or as expressly required by this Article
        VII,
        no
        Company shall and no Shareholder shall permit any Company to:

       

      (a)  take
        any
        action that would require any supplement or amendment to the disclosure
        Schedules;

       

      (b)  intentionally
        or negligently take or omit to take any action, or permit its Affiliates
        to take
        or omit to take any action, which would reasonably be anticipated to have
        a
        Material Adverse Effect upon the Business or the Assets of each Company,
        other
        than as a result of any change of ownership notice required to be made to
        any
        Governmental Agency as a result of the transactions contemplated by this
        Agreement;

       

      (c)  (i)
        issue
        or sell any shares of its capital stock or membership interests or any
        partnership interests, (ii) issue or sell any securities convertible into,
        or
        options with respect to, warrants to purchase or rights to subscribe for
        any
        shares of its capital stock or membership interests or any partnership
        interests, (iii) effect any recapitalization, reclassification, stock dividend,
        stock split or like change in its capitalization, (iv) amend its Charter
        Documents or (v) make any redemption or purchase of any shares of its capital
        stock or membership interests or any partnership interests;

       

      (d)  invest
        in
        or otherwise purchase any interest in any third Person or create any
        Subsidiaries;

       

      (e)  create,
        incur, assume or guarantee any indebtedness for borrowed money (including
        obligations in respect of capital leases), other than Indebtedness Liability
        in
        the Ordinary Course of Business;

       

      (f)  enter
        into any lease, tenancy, easement, encumbrance, contract or other commitment
        affecting any of the Real Property;

       

      (g)  increase
        the rate of compensation or benefits of, or pay or agree to pay any benefit
        to
        (including severance or termination pay), present or former managers, directors,
        officers or employees or enter into any employment or severance agreement,
        or
        amendments thereto, with any director, officer or senior manager of the Company,
        except as may be required by an existing Benefit Plan, agreement or arrangement
        disclosed to the Purchaser in the schedules to this Agreement;

       

      (h)  enter
        into, adopt, terminate, amend or contribute to any Benefit Plan, employment
        or
        severance agreement or any plan, agreement, program, policy, trust, fund
        or
        other arrangement that would be a Benefit Plan if it were in existence as
        of the
        date of this Agreement, except as required by applicable Laws or the provisions
        of this Agreement;

       

      (i)  waive
        or
        release any rights of a material value, or cancel, compromise, release or
        assign
        any material Indebtedness owed to it or any material claims held by
        it;

       

      (j)  cancel,
        terminate or permit to lapse any material insurance policy or coverage naming
        it
        as a beneficiary or a loss payable payee without obtaining comparable substitute
        insurance coverage;

       

      (k)  effectuate
        a “plant closing” or “mass layoff”(as those terms are defined under the WARN
        Act) affecting in whole or in part any site of employment, facility, operating
        unit or employees of any Company;

       

      (l)  fail
        to
        maintain the books, accounts and records relating to any Company in the usual
        regular and ordinary manner consistent with past practices or change any
        of
        material accounting principles, methods or practices;

       

      (m)  fail
        to
        comply with all applicable Laws and contractual provisions in all material
        respects, including with respect to the Collective Bargaining
        Agreement;

       

      (n)  operate
        the Business of the Companies other than in the usual regular ordinary manner,
        consistent with current practices, including practices relating to the
        collection of accounts receivable and payment of accounts payable and fail
        to
        use commercially reasonable efforts to preserve intact the present business
        organization of each Company, keep available the services of the present
        employees of each Company and preserve such Company’s present relationships with
        Persons having business dealings with any Company; or

       

      (o)  take
        any
        affirmative action, or fail to take any commercially reasonable action within
        their or its control, as a result of which any of the changes or events listed
        in Section
        3.24
        is
        likely to occur.

       

      7.08.  Shareholder
        Covenant Not to Compete. 

       

      (a)  Except
        as
        provided below, each Shareholder agrees that for a period commencing on the
        Closing Date and ending on the second anniversary of the Closing Date, he,
        she
        or it will not engage, directly or indirectly, in the business of operating
        nursing home properties either directly or as a partner, owner, shareholder,
        member, operator or consultant of any Person in any location within a 50
        mile
        radius of any Facility without the prior written consent of the Purchaser,
        which
        consent the Purchaser may withhold in its sole discretion.

       

      (b)  Notwithstanding
        anything to the contrary in this Section
        7.08,
        nothing
        in this Agreement shall prohibit the Shareholders either directly or indirectly,
        separately or in association with others from owning 5% or less of the issued
        and outstanding securities of any Person which is engaged in the business
        of
        operating nursing home properties whose securities are listed on a national
        securities exchange or listed on The Nasdaq National Market System.

       

      7.09.  Hired
        Employees.
        Prior
        to the Closing Date, the New Operator shall deliver to the Purchaser and
        the
        Shareholders’ Representative a schedule of Hired Employees. In offering
        employment to the Hired Employees, neither the Purchaser nor the New Operator
        shall become liable for any employment-related Liabilities attributable to
        periods through the Employee Termination Time other than WARN Act Liabilities
        arising out of the consummation of the transactions contemplated by this
        Agreement and the COBRA obligations to the M&A Qualified Beneficiaries as
        set forth in Section
        7.02(f). 

       

      7.10.  Cooperation
        Regarding Licensing Matters.
        The
        Shareholders, the Companies and the Purchaser agree to cooperate fully with
        each
        other and use their commercially reasonable efforts in preparing, filing,
        prosecuting and taking any other actions with respect to applications, requests
        or other actions that are or may be reasonable, necessary, proper or advisable
        to consummate and make effective, in the most expeditious manner practicable,
        the transactions contemplated by this Agreement, including, (i) the obtaining
        of
        all necessary waivers, consents or approvals of any Governmental Agency in
        connection with any licensing or License approval, and the making of all
        necessary registrations and filings; and (ii) the obtaining of all necessary
        consents, approvals or waivers from any Person other than Governmental
        Agencies. 

       

      7.11.  Regulatory
        and Other Authorizations; Consents. 

       

      (a)  Each
        of
        the Parties shall use its commercially reasonable efforts to (i) take, or
        cause
        to be taken, all appropriate action, and do, or cause to be done, all things
        necessary, proper or advisable under any Law or otherwise to consummate and
        make
        effective the transactions contemplated by this Agreement, (ii) obtain any
        consents, Licenses, certifications, waivers, approvals, authorizations or
        orders
        required to be made in connection with the authorization, execution and delivery
        of this Agreement and the consummation of the transactions contemplated hereby,
        and (iii) make all filings and give notice, and thereafter make any other
        submissions either required or reasonably deemed appropriate by each of the
        parties, with respect to this Agreement, and the transactions contemplated
        hereby required under any Law, including any applicable securities or antitrust
        Law. 

       

      (b)  In
        furtherance and not in limitation of the foregoing, each Party shall use
        its
        commercially reasonable efforts to resolve such objections, if any, as may
        be
        asserted with respect to the transactions contemplated by this Agreement
        under
        any Law of any Governmental Agency.

       

      (c)  The
        Shareholders shall cooperate with the Purchaser, before and after the Closing,
        in regards to the assignment of Medicare and Medicaid provider numbers and
        agreements, or in respect to any application by the Purchaser for participation
        in the Medicare and Medicaid programs or in respect to the licensure of the
        Business.

       

      7.12.  Exclusivity.
        From
        the date hereof through the Closing or the earlier termination of this
        Agreement, each Shareholder, each Company, and each of their respective
        directors, officers, managers, partners, employees, advisors, representatives,
        agents or affiliates, shall not engage in, solicit or initiate any discussions
        or negotiations with, or provide any information to (except to confirm that
        this
        Agreement exists or as may be required by Law or court order), or negotiate
        or
        enter into any agreement or agreement in principle with, any other person
        with
        respect to a sale of any Company, the assets of any Company (except as permitted
        by Section
        7.06),
        the
        equity interests of any Company or any similar business combination transaction.
        The Shareholders shall notify the Purchaser promptly if any unsolicited proposal
        or offer, or any inquiry or contact with any person with respect thereto,
        is
        made, such notice to include the identity of the person making such proposal,
        offer, inquiry or contact, and the terms of such offer.

       

      7.13.  Monthly
        Financial Statements.
        Until
        the Closing Date, each Company shall deliver to the Purchaser on or before
        the
        30th
        day
        after the end of each month a copy of the unaudited consolidating balance
        sheet
        of such Company and related unaudited consolidating statements of income
        and
        cash flows for such month prepared in a manner and containing information
        consistent with such Company’s current practices.

       

      7.14.  Transition.
        The
        Shareholders and the Companies will not take any action that is designed
        or
        intended to have the effect of discouraging any lessor, licensor, customer,
        supplier, or other business associate of any Company from maintaining the
        same
        business relationships with such Company after the Closing as it maintained
        with
        such Company prior to the Closing.

       

      7.15.  Proration
        and Expenses. 

       

      (a)  Subject
        to Section
        7.15(b),
        all
        recording fees arising out of or relating to the transactions contemplated
        by
        this Agreement (excluding transfer tax type fees), if any, shall be paid
        by the
        Shareholders. The Shareholders shall pay (i) any transfer taxes or fees due
        in
        connection with the transfer of the Company Shares, and (ii) one-half of
        any
        real estate transfer taxes incurred if the Purchaser assigns or transfers
        any
        parcel of Real Property to an Affiliate on or before the 45th
        day
        after the Closing Date. The Shareholders shall cause the Companies to pay
        (A)
        the cost of either new Title Policies or updates to existing title insurance
        policies for the Real Properties in an amount equal to the value of the specific
        Real Property as disclosed on Schedule
        7.15
        (whichever are applicable to the specific Real Property), and (B) if the
        Closing
        does not occur, the costs of the updated surveys and environmental site
        assessments procured by the Companies or the Shareholders for the Purchaser.
        The
        Shareholders shall cause all such environmental site assessments also to
        be
        certified in favor of the New Operator.

       

      (b)  The
        Purchaser shall pay for (i) the costs of endorsements to the Title Policies,
        appraisals, property inspection reports and other costs of its due diligence,
        (ii) if the Closing occurs, the costs of the updated surveys and environmental
        site assessments procured by the Companies or the Shareholders for the
        Purchaser’s specific benefit, and (iii) all real estate transfer taxes incurred
        with respect to the assignment or transfer of any parcel of Real Property
        after
        the Closing Date, other than as set forth in Section
        7.15(a)(ii),
        and
        recording fees incurred in connection with such assignment or transfer.

       

      (c)  Regardless
        of whether the transactions contemplated by this Agreement and the Ancillary
        Documents are consummated, each Party shall pay its or their own legal,
        accounting, consulting, and other professional fees, incurred in connection
        with
        the negotiation, preparation, investigation, and performance by such Party
        of
        this Agreement and the transactions contemplated hereby.

       

      (d)  The
        Closing Date Balance Sheet shall reflect a Liability for real estate Taxes
        attributable to the Facilities for any time prior to the Closing Date (the
        “Real
        Property Tax Liability”).
        The
        Real Property Tax Liability shall be computed on an accrual basis, using
        actual
        final tax bills to the extent available. If the final tax bills are not
        available as of the Closing Date, then the proration to determine the Real
        Property Tax Liability for any time prior to the Closing Date shall be based
        on
        105% of the most recent currently available tax bills attributable to the
        portion of the calendar year in question. If the aggregate Real Property
        Tax
        Liability, as finally determined after any appeal undertaken as has been
        elected
        or otherwise directed as set forth in this subsection (d), is greater than
        the
        amount reflected on the Closing Date Balance Sheet, then the Shareholders
        shall
        pay to the Purchaser the amount of the difference on or before the tenth
        day
        after the Shareholders’ Representative receives written notice of such final
        determination, which notice shall include reasonable documentation of the
        amount
        of such final determination. If the Shareholders do not timely pay the amount
        of
        such excess to the Purchaser, then the Purchaser may, in its sole discretion
        and
        at its option, direct the Escrow Agent to promptly deliver to the Purchaser
        the
        unpaid portion of such excess. If the aggregate Real Property Tax Liability,
        as
        finally determined after any appeal undertaken as has been elected or otherwise
        directed as set forth in this subsection (d), is less than the amount reflected
        on the Closing Date Balance Sheet, then the Purchaser shall pay the Shareholders
        the amount of the difference on or before the tenth day after such final
        determination. The Purchaser shall provide, on or before the tenth Business
        Day
        after receipt, to the Shareholders’ Representative copies of all tax bills for
        any Real Property Tax Liability attributable to any time prior to the Closing
        Date which the Purchaser or any Company receives after the Closing Date.
        If the
        Purchaser, the applicable Company and the New Operator elect, in the sole
        discretion of each, not to contest the amount of such tax bills, then the
        Shareholders’ Representative may direct the applicable Company to contest the
        amount of such tax bills at the Shareholders’ sole cost and expense.

       

      (e)  With
        respect to any tax bill for any Real Property Tax Liability attributable
        to any
        time prior to the Closing Date which the Purchaser or any Company receives
        after
        the Closing Date, the Purchaser, on or before the tenth Business Day after
        the
        day the Purchaser or any Company receives such tax bill, shall cause the
        Companies to pay to the New Operator the full amount of each such tax bill;
        provided,
        however,
        that if
        the amount of any such tax bill subsequently is reduced, then the New Operator
        shall refund to the applicable Company an amount equal to (i) the amount
        paid by
        the applicable Company to the New Operator with respect to such tax bill,
        less
        (ii) the amount of such tax bill, as finally determined. The New Operator
        shall
        pay such refund promptly after receiving notice from the Purchaser that the
        amount of such tax bill has been finally determined, which notice shall be
        accompanied by reasonable evidence of such final determination.

       

      (f)  With
        respect to any bill from any Governmental Agency for any bed taxes or provider
        franchise fees attributable to any time prior to the Closing Date which either
        (i) are unpaid as of the Closing Date, or (ii) the Purchaser or any Company
        receives after the Closing Date, the Purchaser, on or before the tenth Business
        Day after (A) the Closing Date, with respect to bills referred to in clause
        (i),
        or (B) the day the Purchaser or any Company receives such tax bill with respect
        to bills referred to in clause (ii), shall cause the Companies to pay to
        the New
        Operator the full amount of each such bill; provided,
        however,
        that if
        the amount of any such bill subsequently is reduced, then the New Operator
        shall
        refund to the applicable Company an amount equal to (x) the amount paid by
        the
        applicable Company to the New Operator with respect to such bill, less (y)
        the
        amount of such bill, as finally determined. The New Operator shall pay such
        refund promptly after receiving notice from the Purchaser that the amount
        of
        such bill has been finally determined, which notice shall be accompanied
        by
        reasonable evidence of such final determination.

       

      7.16.  [Intentionally
        Omitted.]

       

      7.17.  Required
        Approvals.
        As
        promptly as practicable after the date of this Agreement, the Shareholders
        will,
        and will cause each Company to, make all filings required by Legal Requirements
        to be made by them in order to consummate the transactions contemplated by
        this
        Agreement. Between the date of this Agreement and the Closing Date, the
        Companies and the Shareholders will (a) cooperate with the Purchaser and
        the New
        Operator with respect to all filings that the Purchaser or the New Operator
        elects to make or is required to make by Legal Requirements in connection
        with
        the transactions contemplated by this Agreement, and (b) cooperate with the
        Purchaser and the New Operator in obtaining all consents identified on
Schedule
        3.16.

       

      7.18.  Notification.
        Between
        the date of this Agreement and the Closing Date, the Shareholders and the
        Companies will promptly notify the Purchaser in writing if any Shareholder
        or
        Company becomes aware of any fact or condition that causes or constitutes
        a
        breach of any of the Shareholders’ or Companies’ representations and warranties
        as of the date of this Agreement, or if such Shareholder or Company becomes
        aware of the occurrence after the date of this Agreement of any fact or
        condition that would (except as expressly contemplated by this Agreement)
        cause
        or constitute a breach of any such representation or warranty had such
        representation or warranty been made as of the time of occurrence or discovery
        of such fact or condition.

       

      7.19.  Cooperation
        After Closing.
        If,
        after the Closing Date, a Party shall require the participation of any other
        Party or such other Party’s officers, managers or employees to aid in the
        defense or settlement of litigation or claims by third parties or any other
        matter or transaction contemplated by this Agreement, and so long as there
        exists no conflict of interest between the Parties, then the Parties shall
        use
        their commercially reasonable efforts to make such officers, managers or
        employees available to participate in such defense, provided that the Party
        requiring the participation of such officers, managers or employees shall
        pay
        all reasonable out-of-pocket costs, charges and expenses arising from such
        participation. Whenever the Shareholders are required by the provisions of
        this
        Agreement to take an action in the name of or on behalf of a Company, including
        the filing of cost reports and tax returns, the Purchaser shall cause such
        Company to grant to the person or persons designated by the Shareholder's
        Representative such authority as is necessary to enable such person or persons
        to take the required action.

       

      7.20.  Deposit
        Account Authorization Documents. 

       

      (a)  The
        Companies shall cooperate with the requests of the Purchaser to execute and
        deliver, not later than the Business Day immediately preceding the Closing
        Date,
        appropriate signature cards and any other authorization documents required
        by
        the applicable financial institutions so that as of the Closing Date the
        Purchaser’s designated employees have the right to direct disbursements out of
        all deposit or other bank accounts of each Company, other than accounts which
        only hold resident funds. On the Closing Date, the Shareholders shall cooperate
        with the Purchaser’s requests to transfer by wire transfer of immediately
        available funds from such accounts to an account(s) designated by the Purchaser,
        which cooperation shall include, if requested (i) information regarding the
        appropriate contact personnel at the applicable financial institutions, and
        (ii)
        confirmation to such personnel that the Purchaser’s designated employees have
        authority to transfer funds from such accounts.

       

      (b)  The
        Companies shall cooperate with the requests of the New Operator to execute
        and
        deliver, not later than the Business Day immediately preceding the Closing
        Date,
        appropriate signature cards and any other authorization documents required
        by
        the applicable financial institutions so that as of the Closing Date the
        New
        Operator’s designated employees have the right to direct disbursements out of
        all deposit or other bank accounts of each Company which only hold resident
        funds. On the Closing Date, the Shareholders shall cooperate with the New
        Operator’s requests to transfer by wire transfer of immediately available funds
        from such accounts to an account(s) designated by the New Operator, which
        cooperation shall include, if requested (i) information regarding the
        appropriate contact personnel at the applicable financial institutions, and
        (ii)
        confirmation to such personnel that the New Operator’s designated employees have
        authority to transfer funds from such accounts.

       

      7.21.  Assignment
        of Contracts.
        On the
        Closing Date, the Companies shall assign to the New Operator all of the
        Contracts other than those listed on Schedule
        7.06(h)
        and the
        New Operator shall assume all such Contracts. Schedule
        7.21
        contains
        a list of Contracts for which termination notices will be sent by the Companies
        on the Closing Date (the "Terminated
        Contracts").
        Any
        Damages incurred by the New Operator or the Purchaser in connection with
        the
        termination of the Terminated Contracts (the "Contract
        Termination Liability")
        shall
        be promptly paid by the Companies to the New Operator or the Purchaser, as
        applicable, on or before the Closing Date. To the extent the Contract
        Termination Liability is not paid to the New Operator or the Purchaser on
        or
        before the Closing Date, the Contract Termination Liability shall be reflected
        on the Closing Date Balance Sheet, as finally determined, as a liability
        of the
        Companies incurred in full prior to the Closing Date. The parties acknowledge
        that Schedule 7.21 contains a list of Contracts to be terminated
        which
        are, by their terms, not terminable upon less than 60 days notice.

       

      Article
        VIII  

      Conditions
        to the Purchaser’s Obligation to Close

       

      8.01.  Conditions
        to the Purchaser’s Obligation.
        The
        obligation of the Purchaser to consummate the transactions contemplated by
        this
        Agreement is subject to the satisfaction of the following conditions on or
        before the Closing Date:

       

      (a)  the
        representations and warranties made by each Company, the Shareholders, the
        New
        Operator and the New Operator Parent in this Agreement (other than those
        made as
        of a specified date earlier than the Closing Date) shall be true and correct
        in
        all material respects on and as of the Closing Date, and any representation
        or
        warranty made as of a specified date earlier than the Closing Date shall
        have
        been true and correct in all material respects on and as of such earlier
        date;

       

      (b)  each
        of
        the Shareholders, the Companies, the New Operator and the New Operator Parent
        shall have performed and complied with, in all material respects, each agreement
        and covenant required by the provisions of this Agreement to be performed
        or
        complied with by them or it at or before the Closing;

       

      (c)  there
        shall have been (i) no change in the operations, financial condition, operating
        results, business prospects or Assets of the Business since the date of the
        Company Latest Balance Sheet, except as required by the provisions of this
        Agreement, and (ii) no casualty loss or damage to the Assets of any Company,
        whether or not covered by insurance, which, in either case would have a Material
        Adverse Effect on the Business;

       

      (d)  all
        necessary certificates and other approvals necessary to enable the Purchaser
        to
        acquire the Company Shares shall have been delivered to the Purchaser;

       

      (e)  all
        Required Consents, Licenses, and all other consents by third Persons or such
        customary assurances (which may be verbal) that such consents, Licenses and
        approvals will be received after the Closing Date in the Ordinary Course
        of
        Business that are required for the consummation of the transactions contemplated
        hereby or that are required to prevent a breach of, or a default under or
        a
        termination or modification of, any Contract (except for those Contracts
        for
        which the failure to obtain a consent would not have a Material Adverse Effect
        on the Business) or License to which any Company is a party or to which any
        of
        the Assets of any Company is subject, and releases of all Liens on or with
        respect to the Assets of any Company (other than Permitted Liens) shall have
        been obtained on terms and conditions satisfactory to the Purchaser in its
        sole
        discretion;

       

      (f)  no
        action
        or proceeding before any Governmental Agency shall be pending or threatened
        which, in the judgment of the Purchaser, made in good faith and upon the
        reasonable advice of counsel, makes it inadvisable to consummate the
        transactions contemplated hereby by reason of the probability that the action
        or
        proceeding shall result in a judgment, decree or order which would prevent
        the
        carrying out of this Agreement or any of the transactions contemplated hereby,
        declare unlawful the transactions contemplated by this Agreement, cause such
        transactions to be rescinded or affect the value or use of the Company Shares,
        the Assets of any Company or the Business;

       

      (g)  prior
        to
        the Closing Date, the Shareholders shall have provided to the Purchaser,
        at
        Shareholders’ own expense, customary UCC search reports (“UCC
        Searches”)
        of
        each Company and each Shareholder disclosing no Liens against the Company
        Shares
        or the Assets of each Company, other than the Permitted Liens against such
        Assets;
        

       

      (h)  all
        certificates, opinions, instruments and other documents required to be delivered
        to the Purchaser pursuant to Section
        2.06(b)
        or
        2.06(d)
        shall be
        reasonably satisfactory in form and substance to the Purchaser and its counsel,
        executed by the applicable Parties and delivered to the Purchaser on the
        Closing
        Date; and

       

      (i)  the
        Purchaser is satisfied, in its sole discretion, with the contents of the
        disclosure Schedules relating to this Agreement, other than Schedules
        5.04 and 7.06(g).

       

      Any
        conditions specified in this Section
        8.01
        may be
        waived by the Purchaser; provided that no such waiver shall be effective
        unless
        it is set forth in a writing executed by the Purchaser.

       

      Article
        IX  

      Conditions
        to Obligation of the Shareholders to Close

       

      9.01.  Conditions
        to Obligation of the Shareholders to Close.
        The
        obligation of the Shareholders to consummate the transactions contemplated
        by
        this Agreement is subject to the satisfaction of the following conditions
        on or
        before the Closing Date:

       

      (a)  the
        representations and warranties made by the Purchaser, the Purchaser Parent,
        the
        New Operator and the New Operator Parent in this Agreement (other than those
        made as of a specified date earlier than the Closing Date) shall be true
        and
        correct in all material respects on and as of the Closing Date as though
        such
        representation of warranty was made on and as of the Closing Date, and any
        representation or warranty made as of a specified date earlier than the Closing
        Date shall have been true and correct in all material respects on and as
        of such
        earlier date;

       

      (b)  the
        Purchaser and the New Operator shall have performed and complied with, in
        all
        material respects, each agreement and covenant required by the provisions
        of
        this Agreement to be performed or complied with by it at or before the
        Closing; 

       

      (c)  all
        certificates, opinions, instruments and other documents required to be delivered
        to Shareholders pursuant to Section
        2.06(c)
        shall be
        reasonably satisfactory in form and substance to the Shareholders and their
        counsel, executed by the applicable Parties and delivered to the Shareholders
        on
        the Closing Date; 

       

      (d)  no
        action
        or proceeding before any Governmental Agency which regulates any Facility
        shall
        be pending or threatened which, in the judgment of the Shareholder’s
        Representative, made in good faith and upon the reasonable advice of counsel,
        makes it inadvisable to consummate the transactions contemplated hereby by
        reason of the probability that the action or proceeding shall result in a
        judgment, decree or order which would prevent the carrying out of this Agreement
        or any of the transactions contemplated hereby, declare unlawful the
        transactions contemplated by this Agreement, cause such transactions to be
        rescinded or affect the value or use of the Assets of any Company or the
        Business; 

       

      (e)  the
        Purchaser shall pay the Purchase Price as set forth in Section
        2.02(c);
        and

       

      (f)  the
        Shareholders’ Representative is satisfied, in its sole discretion, with the
        contents of Schedules
        5.04, 6.04, 7.06(f), 7.06(g), and 7.06(h).

       

      Any
        condition specified in this Section
        9.01
        may be
        waived by the Shareholders’ Representative; provided that no such waiver shall
        be effective against the Shareholders unless it is set forth in a writing
        executed by the Shareholders’ Representative.

       

      Article
        X  

      Conditions
        to Obligation of the New Operator to Close

       

      10.01.  Conditions
        to Obligation of the New Operator to Close.
        The
        obligation of the New Operator to consummate the transactions contemplated
        by
        this Agreement is subject to the satisfaction of the following conditions
        on or
        before the Closing Date:

       

      (a)  the
        representations and warranties made by the Purchaser, the Purchaser Parent,
        the
        Shareholders, and the Companies in this Agreement (other than those made
        as of a
        specified date earlier than the Closing Date) shall be true and correct in
        all
        material respects on and as of the Closing Date as though such representation
        of
        warranty was made on and as of the Closing Date, and any representation or
        warranty made as of a specified date earlier than the Closing Date shall
        have
        been true and correct in all material respects on and as of such earlier
        date;

       

      (b)  the
        Purchaser, the Shareholders, and the Companies shall have performed and complied
        with, in all material respects, each agreement and covenant required by the
        provisions of this Agreement to be performed or complied with by it at or
        before
        the Closing; 

       

      (c)  there
        shall have been (i) no change in the operations, financial condition, operating
        results, business prospects or Assets of the Business since the date of the
        Company Latest Balance Sheet except as required by the provisions of this
        Agreement, and (ii) there shall have been no casualty loss or damage to the
        Assets of any Company, whether or not covered by insurance, which, in either
        case would have a Material Adverse Effect on the Business;

       

      (d)  all
        Required Consents and all other consents by third Persons or such customary
        assurances (which may be verbal) that such consents and approvals will be
        received after the Closing Date in the Ordinary Course of Business that are
        required for the consummation of the transactions contemplated hereby or
        that
        are required to prevent a breach of, or a default under or a termination
        or
        modification of, any Contract (except for those Contracts for which the failure
        to obtain a consent would not have a Material Adverse Effect on the Business)
        or
        License to which any Company is a party or to which any of the Assets of
        any
        Company is subject, and releases of all Liens on or with respect to the Assets
        of any Company (other than Permitted Liens) shall have been obtained on terms
        and conditions satisfactory to the New Operator in its sole
        discretion;

       

      (e)  all
        approvals from Governmental Agencies necessary to consummate the transactions
        contemplated herein and for the New Operator’s operation of the Facilities as
        duly licensed and Medicare and Medicaid certified nursing facilities shall
        have
        been granted;

       

      (f)  no
        action
        or proceeding before any Governmental Agency shall be pending or threatened
        which, in the judgment of the New Operator, made in good faith and upon the
        reasonable advice of counsel, makes it inadvisable to consummate the
        transactions contemplated hereby by reason of the probability that the action
        or
        proceeding shall result in a judgment, decree or order which would prevent
        the
        carrying out of this Agreement or any of the transactions contemplated hereby,
        declare unlawful the transactions contemplated by this Agreement, cause such
        transactions to be rescinded or affect the value or use of the Assets of
        any
        Company or the Business; 

       

      (g)  at
        the
        Closing (i) the Shareholders shall provide the New Operator with an accounting
        of all funds belonging to residents at any Facility which are held by any
        Company in a custodial or any other capacity and an accounting of all advance
        payments received by it pertaining to residents at the Facilities, (ii) such
        accounting shall set forth the names of the residents for whom such funds
        are
        held, the Company which holds such funds, the amounts held on behalf of each
        resident (including the account number and name of the financial institution
        at
        which the account is maintained), and shall be true, correct and complete
        as of
        the Closing Date, (iii) the Companies shall cooperate with the New Operator’s
        requests to transfer such funds as provided in Section
        7.20(b),
        and
        (iv) the New Operator shall provide the Purchaser with a copy of such accounting
        if the Purchaser so requests;

       

      (h)  the
        New
        Operator is satisfied, in its sole discretion, with the contents of the
        disclosure Schedules relating to this Agreement, other than Schedules
        6.04, 7.06(f), 7.06(g), and 7.06(h).

       

      Any
        condition specified in this Section
        10.01
        may be
        waived by the New Operator; provided that no such waiver shall be effective
        against the New Operator unless it is set forth in a writing executed by
        the New
        Operator.

       

      Article
        XI  

      Indemnification

       

      11.01.  Survival.
        Except
        for the representations and warranties of the Companies, the representations,
        warranties and covenants in this Agreement and in any Ancillary Document
        shall
        survive the Closing Date, but only to the extent specified below.

       

      (a)  All
        covenants and agreements contained in this Agreement and the Ancillary Documents
        that contemplate performance thereof following the Closing Date will survive
        the
        Closing Date in accordance with their terms.

       

      (b)  The
        representations and warranties set forth in this Agreement and the Ancillary
        Documents shall survive the Closing Date until the 18 month “anniversary” of the
        Closing Date; provided,
        however,
        that
        (i) the representations and warranties contained in Sections 3.05,
        3.15,
        3.24
        and
4.03,
        shall
        survive the Closing Date indefinitely, (ii) the representations and warranties
        contained in Sections 3.10,
        3.12,
        3.18,
        and
3.22
        shall
        survive the Closing Date until the expiration of the statute of limitations
        applicable to the underlying claims (as it may be extended from time to time).
        For purposes of this subsection (b), the monthly “anniversary” shall be the day
        of the month on which the Closing occurs. Therefore, by way of illustration
        only, if the Closing Date is June 29, 2005, then the 18 month “anniversary” will
        be December 29, 2006.

       

      11.02.  Right
        to Indemnification Not Affected by Knowledge.
        The
        right to indemnification, payment of Losses or other remedy based on such
        representations, warranties, covenants and obligations will not be affected
        by
        any investigation conducted with respect to, or any knowledge acquired (or
        capable of being acquired) at any time, whether before or after the execution
        and delivery of this Agreement or the Closing Date, with respect to the accuracy
        or inaccuracy of or compliance with, any such representation, warranty, covenant
        or obligation. The waiver of any condition based on the accuracy of any
        representation or warranty, or on the performance of or compliance with any
        covenant or obligation, will not affect the right to indemnification, payment
        of
        Losses, or other remedy based on such representations, warranties, covenants,
        and obligations.

       

      11.03.  Indemnification
        by the Shareholders.

       

      (a)  The
        Shareholders, jointly and severally, agree to and shall indemnify the Purchaser,
        the Purchaser Parent, and the Companies (and their respective officers,
        directors, employees, agents, shareholders, Subsidiaries, Affiliates,
        representatives, successors, and assigns) (each individually, a “Purchaser
        Indemnified Party”
        and
        collectively, the “Purchaser
        Indemnified Parties”)
        and
        the New Operator and the New Operator Parent (and their respective officers,
        directors, managers, members, employees, agents, shareholders, Subsidiaries,
        Affiliates, representatives, successors, and assigns) (each individually,
        a
“New
        Operator Indemnified Party”
        and
        collectively, the “New
        Operator Indemnified Parties”)
        and
        defend and hold the Purchaser Indemnified Parties and the New Operator
        Indemnified Parties harmless against any Losses that the Purchaser Indemnified
        Parties and the New Operator Indemnified Parties suffer, sustain or become
        subject to as a result of (i) any misrepresentation in any of the
        representations or breach of any of the warranties of the Shareholders or
        the
        Companies contained in this Agreement, (ii) any breach of, or failure to
        perform, any covenant of any Company or Shareholder contained in this Agreement,
        (iii) any claim for refund or reimbursement of any payment made to any Company
        by any Person who was a customer of the Business on or prior to the Closing
        Date
        based on preference or priority as asserted by any receiver or trustee in
        bankruptcy or bankruptcy court, or (iv) any claim for refund or reimbursement
        of
        any payment made to any Company by any Person or Governmental Agency before
        the
        Closing Date.
        The
        Shareholders acknowledge that neither the Purchaser Indemnified Parties nor
        the
        New Operator Indemnified Parties shall have any obligation to seek recovery
        or
        reimbursement for any Losses from any applicable insurance coverage before
        seeking recovery from the Shareholders pursuant to this Article
        XI,
        except
        that, with respect to Losses which are covered by the Tail Coverage, the
        Purchaser Indemnified Parties and the New Operator Indemnified Parties first
        must seek recovery or reimbursement under the Tail Coverage.

       

      (b)  The
        Shareholders shall not be liable for any Losses pursuant to this Section
        11.03
        (for
        indemnification or otherwise) to any Purchaser Indemnified Party or any New
        Operator Indemnified Party for any Losses to the extent that the aggregate
        of
        such Losses exceeds an amount equal to (i) the Purchase Price, less (ii)
        aggregate amount of the Indebtedness Liability, and, further, shall not be
        liable (for indemnification or otherwise) unless and until the aggregate
        Losses
        suffered by the Purchaser Indemnified Parties or by the New Operator Indemnified
        Parties shall exceed $100,000 (the “Basket”)
        and
        then only to the extent such Losses exceed the Basket; provided,
        however,
        that
        the limitations set forth in this Section
        11.03(b)
        shall
        not apply to claims based upon (A) fraud or willful misconduct by any
        Shareholder or any Company, or (B) Sections
        3.01(a),
        3.02,
        3.05,
        3.10,
        3.14,
        3.15,
        3.16,
        3.18,
        3.22, 3.24,
        4.01,
        4.02, 4.03,
        4.04,
        7.15(d)
        or
11.03(a)(iv). 

       

      (c)  Subject
        to the terms of Section
        11.03(b),
        the
        Shareholders, jointly and severally, agree to indemnify any Purchaser
        Indemnified Party and any New Operator Indemnified Party and defend and hold
        the
        Purchaser Indemnified Parties and the New Operator Indemnified Parties harmless
        against any Liabilities that the Purchaser Indemnified Parties or the New
        Operator Indemnified Parties suffer, sustain or become subject to as a result
        of
        any of the following Liabilities, regardless of whether any such Liabilities
        result from the (i) breach of a representation or warranty of any Company
        or
        Shareholder as set forth in this Agreement, or (ii) breach of, or failure
        to
        perform, any covenant of any Company or Shareholder as set forth in this
        Agreement:

       

      (i)  any
        Liabilities arising out of or relating to the failure to obtain a release
        of the
        FET Lien;

       

      (ii)  any
        Liabilities (including any Liability related to any Benefit Plan) for any
        and
        all claims by or on behalf of the Employees or any Governmental Agency
        (including the Department of Labor, the IRS and the PBGC) that accrued, arose
        or
        relates to any act or omission prior to the Closing, other than (A) those
        Liabilities related to the COBRA obligations to the M&A Qualified
        Beneficiaries as set forth in Section
        7.02(f),
        and (B)
        those other Liabilities not related to a Benefit Plan that arise out of or
        relate to the termination of the Employees as contemplated by Section
        7.02(a)
        or the
        hiring of any Employees by the New Operator;

       

      (iii)  any
        Liabilities arising from or due to any Collective Bargaining Agreement to
        which
        any of the Companies is a party and which arise before the Closing Date or
        which
        relate to events which occurred before the Closing Date, other than those
        liabilities solely arising out of or relating to actions taken by the New
        Operator or the Purchaser;

       

      (iv)  any
        Liabilities arising from or due to any Taxes incurred by any Shareholder
        at any
        time or by any Company before the Closing Date or which relate to events
        which
        occurred before the Closing Date;

       

      (v)  any
        Liabilities accruing, arising out of or relating to any federal, state or
        local
        investigation, claim or action against the Companies or the Shareholders
        or any
        of the Employees with respect to acts or omissions before the Closing; Date,
        other than those liabilities solely arising out of or relating to actions
        taken
        by the New Operator or the Purchaser; 

       

      (vi)  any
        civil
        or criminal Liabilities occurring, arising out of or relating to any acts
        or
        omissions of the Companies or the Shareholder, or their respective officers,
        directors, managers. members, employees, agents or representatives, with
        respect
        to actions or omissions which occur or fail to occur prior to the Closing
        Date
        and that violate any constitutional provision, statute, ordinance, Law,
        interpretation, standard, policy or order of any Governmental Agency, including
        any Liabilities arising out of or related to litigation or claims pending
        against any Company as of the Closing Date; and 

       

      (vii)  any
        Liabilities not otherwise referred to above in this subsection (c) incurred
        by
        any Company, any Shareholder or any Facility accrued prior to the Closing
        Date,
        or which relates to events which occurred before the Closing Date or to any
        condition that exists at, on or under any Facility as of the Closing Date,
        other
        than for those Liabilities (A) which are included on the Closing Date Balance
        Sheet, as finally determined, (B) which are assumed by the New Operator pursuant
        to the terms of this Agreement, (C) arising out of or relating to actions
        required to be taken by the Shareholders or the Companies pursuant to the
        terms
        of this Agreement, or (D) arising out of or relating to actions taken by
        the New
        Operator or the Purchaser.

       

      The
        Shareholders indemnification obligations under this subsection (c) shall
        survive
        the Closing Date indefinitely.

       

      (d)  The
        Purchaser Indemnified Parties and the Operator Indemnified Parties will not
        be
        permitted to each assert indemnification claims against the Shareholders
        under
        this Article
        XI
        with
        respect to Losses for which the Purchaser or the Purchaser Parent indemnifies
        a
        New Operator Indemnified Party or the New Operator or the New Operator Parent
        indemnifies a Purchaser Indemnified Party; provided,
        however,
        that if
        the Purchaser or the Purchaser Parent indemnifies a New Operator Indemnified
        Party or the New Operator or the New Operator Parent indemnifies a Purchaser
        Indemnified Party as contemplated by this subsection, then the Party making
        such
        indemnity shall be entitled to seek indemnification from the Shareholders
        pursuant to this Article
        XI
        for the
        full amount of such indemnity and all other Losses incurred in connection
        with
        claim. If the Purchaser or the Purchaser Parent indemnifies a New Operator
        Indemnified Party with respect to a claim made by a New Operator Indemnified
        Party for which the New Operator Indemnified Party previously has received
        an
        indemnification payment from the Shareholders, then the Purchaser and the
        Purchaser Parent shall not be permitted to make a claim against the Shareholders
        to the extent of the duplicable indemnification payment if the Shareholders’
        Representative provided written notice to the Purchaser and the Purchaser
        Parent
        that the Shareholders made such indemnification payment before the Purchaser
        or
        the Purchaser Parent makes such duplicative payment. If the New Operator
        or the
        New Operator Parent indemnifies a Purchaser Indemnified Party with respect
        to a
        claim made by a Purchaser Indemnified Party for which the Purchaser Indemnified
        Party previously has received an indemnification payment from the Shareholders,
        then the New Operator and the New Operator Parent shall not be permitted
        to make
        a claim against the Shareholders to the extent of the duplicable indemnification
        payment if the Shareholders’ Representative provided written notice to the New
        Operator that the Shareholders made such indemnification payment before the
        New
        Operator or the New Operator Parent makes such duplicative payment.

       

      (e)  If
        the
        aggregate Losses incurred by the Purchaser Indemnified Parties with respect
        to
        any indemnification claims made pursuant to Section
        11.03(a)(iv)
        become
        greater than $1,500,000 and if the Shareholders do not timely make any payments
        required by this Article
        XI,
        then
        the Purchaser may, in its sole discretion and at its option, direct the Escrow
        Agent to promptly deliver to the Purchaser the amount owed by the Shareholders
        to the Purchaser pursuant to this Article
        XI.
        If the
        Purchaser directs the Escrow Agent to deliver such amount to the Purchaser,
        then
        the Purchaser shall retain the right to pursue payment from the Shareholders
        as
        required by this Article
        XI,
        which
        payment would be deposited in the Escrow Account to replenish the funds paid
        to
        the Purchaser with respect to any indemnification claims made pursuant to
        Section
        11.03(a)(iv)
        in
        excess of $1,500,000. 

       

      11.04.  Indemnification
        by the Purchaser and the Purchaser Parent.

       

      (a)  The
        Purchaser and the Purchaser Parent, jointly and severally, agree to indemnify
        the Shareholders (each individually, a “Shareholder
        Indemnified Party”
        collectively, the “Shareholder
        Indemnified Parties”)
        and
        the New Operator Indemnified Parties and to defend and hold them harmless
        against any Losses which any of the Shareholder Indemnified Parties or the
        New
        Operator Indemnified Parties suffer, sustain or become subject to as a result
        of
        (i) any misrepresentation in any of the representations or breaches of any
        of
        the warranties of the Purchaser or the Purchaser Parent contained in this
        Agreement, or (ii) any breach of, or failure to perform, any covenant of
        the
        Purchaser or the Purchaser Parent contained in this Agreement.

       

      (b)  Notwithstanding
        anything to the contrary contained herein, neither the Purchaser nor the
        Purchaser Parent shall be liable for any Losses pursuant to this Section
        11.04
        (for
        indemnification or otherwise) to any Shareholder Indemnified Party or any
        New
        Operator Indemnified Party for any Losses to the extent that the aggregate
        of
        such Losses exceed the Purchase Price and, further, shall not be liable (for
        indemnification or otherwise) unless and until the aggregate Losses suffered
        by
        the Shareholder Indemnified Parties or by the New Operator Indemnified Parties
        shall exceed the Basket, and then only to the extent such Losses exceed the
        Basket; provided,
        however,
        that
        the limitations set forth in this Section
        11.04
        shall
        not apply to claims based upon (i) fraud or willful misconduct by the Purchaser
        or the Purchaser Parent, or (ii) Sections
        5.01,
        5.02, 5.03
        or
        5.04. 

       

      11.05.  Indemnification
        by the New Operator and the New Operator Parent.

       

      (a)  The
        New
        Operator and the New Operator Parent, jointly and severally, agree to indemnify
        the Shareholders Indemnified Parties and the Purchaser Indemnified Parties
        and
        defend and hold them harmless against any Losses which any of the Shareholder
        Indemnified Parties or the Purchaser Indemnified Parties suffer, sustain
        or
        become subject to as a result of (i) any misrepresentation in any of the
        representations or breaches of any of the warranties of the New Operator
        or the
        New Operator Parent contained in this Agreement, or (ii) any breach of, or
        failure to perform, any covenant of the New Operator contained in this
        Agreement.

       

      (b)  Notwithstanding
        anything to the contrary contained herein, other than as set forth in
Section
        11.05(c),
        the New
        Operator shall not be liable for any Losses pursuant to this Section
        11.05
        (for
        indemnification or otherwise) to any Shareholder Indemnified Party or any
        Purchaser Indemnified Party for any Losses to the extent that the aggregate
        of
        such Losses exceed the Purchase Price and, further, shall not be liable (for
        indemnification or otherwise) unless and until the aggregate Losses suffered
        by
        the Shareholder Indemnified Parties or by the Purchaser Indemnified Parties
        shall exceed the Basket, and then only to the extent such Losses exceed the
        Basket; provided,
        however,
        that
        the limitations set forth in this Section
        11.04
        shall
        not apply to claims based upon (i) fraud or willful misconduct by the New
        Operator or the New Operator Parent, or (ii) Sections
        6.01, 6.02, 6.03 or 6.04.
        

       

      (c)  Notwithstanding
        the limitations contained in Section
        11.03(b),
        the New
        Operator and the New Operator Parent, jointly and severally, agree to indemnify
        any Shareholder Indemnified Party or Purchaser Indemnified Party and defend
        and
        hold the Shareholder Indemnified Parties and the Purchaser Indemnified Parties
        harmless against any Losses that the Shareholder Indemnified Parties or the
        Purchaser Indemnified Parties suffer, sustain or become subject to as a result
        of any Liabilities to former employees of the Companies or arising out of
        or
        relating to (i) the termination of the Employees as contemplated by Section
        7.02(a),
        (ii)
        the selection and employment of the Hired Employees by the New Operator,
        (iii)
        all obligations for COBRA and the WARN Act assumed by New Operator under
        this
        Agreement, or (iv) any liability relating to, or arising out of the operating
        of
        the facilities by the New Operator on or after the Closing Date. 

       

      (d)  Notwithstanding
        the limitations contained in Section
        11.03(b),
        the New
        Operator and the New Operator Parent, jointly and severally, agree to indemnify
        any Shareholder Indemnified Party or Purchaser Indemnified Party and defend
        and
        hold the Shareholder Indemnified Parties and the Purchaser Indemnified Parties
        harmless against any Losses that the Shareholder Indemnified Parties or the
        Purchaser Indemnified Parties suffer, sustain or become subject to as a result
        of any Liabilities to former employees of the Companies under COBRA or the
        WARN
        Act arising out of or related to events occurring on or after the Effective
        Time.

       

      11.06.  Method
        of Asserting Claims.
        As used
        herein, an “Indemnified
        Party”
        shall refer to a “Purchaser Indemnified
        Party,”“Shareholder
        Indemnified Party” or “New Operator Indemnified Party,” as applicable,
“Indemnified Parties” shall refer to “Purchaser Indemnified
        Parties,”“Shareholder Indemnified Parties” or New Operator Indemnified Parties,”
        as applicable, and the “Indemnifying Party”
        shall refer to the Party obligated to indemnify such Indemnified
        Parties.

       

      (a)  Third
        Party Claims.

       

      (i)  In
        the
        event that any of the Indemnified Parties is made a defendant in or party
        to any
        action or proceeding, judicial or administrative, instituted by any third
        party
        for the liability or the costs or expenses of which are Shareholder Losses
        or
        Purchaser Losses, as the case may be (any such third party action or proceeding
        being referred to as a “Third
        Party Claim”),
        the
        Indemnified Party shall give the Indemnifying Party prompt notice thereof.
        The
        failure to give such notice shall not affect the Indemnified Party’s ability to
        seek reimbursement except to the extent such failure has materially and
        adversely affected the Indemnifying Party’s ability to defend successfully such
        Third Party Claim. The Indemnifying Party shall be entitled to contest and
        defend such Third Party Claim; provided,
        however,
        that
        the Indemnifying Party (A) has a reasonable basis for concluding that such
        defense may be successful, (B) consults with the Indemnified Party with respect
        to the handling of such Third Party Claim, (C) diligently contests and defends
        such Third Party Claim, and (D) unconditionally acknowledge that such Third
        Party Claim constitutes a Loss of the Indemnified Party for which such
        Indemnified Party is entitled to indemnification under this Article
        XI.
        Notice
        of the intention to contest and defend the Third Party Claim shall be given
        by
        the Indemnifying Party to the Indemnified Party on or before the 20th
        Business
        Day after the Indemnified Party gives notice to the Indemnifying Party of
        such
        Third Party Claim (but, in all events, at least five Business Days prior
        to the
        date that an answer to such Third Party Claim is due to be filed). Such contest
        and defense shall be conducted by reputable attorneys employed by the
        Indemnifying Party that are reasonably acceptable to the Indemnified Party.
        The
        Indemnified Party shall be entitled at any time, at its own cost and expense
        (which cost and expense shall not constitute a Loss unless such expense is
        incurred at the request of the Indemnifying Party, the Indemnified Party
        reasonably determines that the Indemnifying Party is not adequately representing
        or, because of a conflict of interest, may not adequately represent, any
        interests of the Indemnified Party), to participate in such contest and defense
        and to be represented by attorneys of its or their own choosing. If the
        Indemnified Party elects to participate in such defense, the Indemnified
        Party
        shall cooperate with the Indemnifying Party in the conduct of such defense.
        Neither the Indemnified Party nor the Indemnifying Party may concede, settle
        or
        compromise any Third Party Claim without the consent of the other Party,
        which
        consent shall not be unreasonably withheld or delayed. Notwithstanding the
        foregoing, in the event the Indemnifying Party fails or is not entitled to
        contest and defend a Third Party Claim, the Indemnified Party shall be entitled
        to contest, defend and settle such Third Party Claim, and pursue its
        indemnification rights hereunder and whatever other legal remedies may be
        available to enforce its rights under this Article
        XI
        at the
        cost and expense of the Indemnifying Party.

       

      (ii)  If
        (A) a
        Third Party Claim relates primarily to a criminal proceeding, action or
        indictment, (B) the Indemnified Party reasonably believes an adverse
        determination with respect to the Third Party Claim or other claim giving
        rise
        to such Third Party Claim is likely and such adverse determination would
        materially adversely affect the Indemnified Party’s reputation or future
        business prospects, (C) the Third Party Claim seeks an injunction or equitable
        relief against the Indemnified Party, or (D) the Indemnified Party
        reasonably determines that the Indemnifying Party cannot adequately represent
        the interests of the Indemnified Party because of a conflict of interest,
        then
        in any such case the Indemnified Party shall have the sole right to defend
        such
        Third Party Claim, and to pursue its indemnification rights hereunder and
        whatever other legal remedies may be available to enforce its rights under
        this
Article
        XI,
        at the
        cost and expense of the Indemnifying Party. The Indemnified Party may not
        concede, settle or compromise any such Third Party Claim without the consent
        of
        the Indemnifying Party, which consent shall not be unreasonably withheld
        or
        delayed. If the Indemnified Party elects to assume and control the defense
        of
        such a Third Party Claim, it will provide notice thereof to the Indemnifying
        Party on or before the 30th
        day
        after the Indemnified Party has obtained notice of such Third Party
        Claim.

       

      (iii)  If
        there
        shall be a settlement to which the Indemnifying Party consents or a final
        judgment for the plaintiff in any Third Party Claim, the defense of which
        the
        Indemnifying Party has elected to assume, the Indemnifying Party shall indemnify
        the Indemnified Party with respect to such settlement or judgment.

       

      (b)  Direct
        Claims.
        In the
        event any Indemnified Party has a claim (“Direct
        Claim”)
        against any Indemnifying Party that does not involve a Third Party Claim,
        the
        Indemnified Party shall deliver a notice of such Direct Claim with reasonable
        promptness to the Indemnifying Party. If the Indemnifying Party notifies
        the
        Indemnified Party that it does not dispute the Direct Claim described in
        such
        notice or fails to notify the Indemnified Party on or before the 30th
        day
        after delivery of such notice by the Indemnified Party, the Loss in the amount
        specified in the Indemnified Party’s notice shall be conclusively deemed a
        liability of the Indemnifying Party and the Indemnifying Party shall pay
        the
        amount of such Loss to the Indemnified Party on demand in accordance with
        the
        terms hereof. If the Indemnifying Party gives notice to the Indemnified Party
        that it disputes the Direct Claim within such 30 day period, the Indemnified
        Party may pursue its indemnification rights hereunder and whatever other
        legal
        remedies may be available to enforce its rights under this Article
        XI.

       

      11.07.  Adjustments.
        Any
        indemnification payments paid under this Article
        XI
        will be
        considered an adjustment to the Purchase Price.

       

      11.08.  Payments.
        Any
        payment pursuant to a claim for indemnification under this Article
        XI
        shall be
        made not later than ten days after receipt by the Indemnifying Party of written
        notice from the Indemnified Party stating the amount of the claim, unless
        the
        claim is subject to defense as provided in Section
        11.06
        above,
        in which case payment shall be made not later than five days after the amount
        of
        the claim is finally determined by written agreement between the Indemnifying
        Party and the Indemnified Party or a non-appealable judgment of a court of
        competent jurisdiction. In addition, such Party shall reimburse the other
        Party
        for any and all costs or expenses of any nature or kind whatsoever (including
        all reasonable attorneys’ fees) incurred in seeking to collect any such Losses
        to which it is entitled. Any payment required under this Section
        11.08
        which is
        not made
        when due
        shall bear interest at seven percent (7%) per annum from the date due until
        paid
        or, if less, the maximum rate permitted by applicable usury Laws. Interest
        on
        any such unpaid amount shall be compounded monthly, computed on the basis
        of a
        365-day year and shall be payable on demand.

       

      11.09.  Escrow.
        Except
        as otherwise set forth in this Agreement, subject to the limitations contained
        in this Article
        XI,
        the
        Purchaser or the New Operator shall give notice of a claim in the amount
        of any
        Losses and shall be required to satisfy such Losses from the Escrow Account,
        to
        the extent funds remain in the Escrow Account, before proceeding against
        any
        Shareholder for indemnification hereunder.

       

      11.10.  Exclusive
        Remedy.
        The
        Parties acknowledge and agree that the foregoing indemnification provisions
        in
        this Article
        XI
        shall be
        the exclusive remedy after the Closing Date of the Parties with respect to
        the
        transactions contemplated by this Agreement, other than for fraud.

       

      Article
        XII  

                                                        
Termination

       

      12.01.  Termination.
        This
        Agreement may be terminated at any time by notice given prior to or at the
        Closing:

       

      (a)  by
        mutual
        written consent of the Purchaser, the Shareholders’ Representative, and the New
        Operator;

       

      (b)  by
        either
        the Purchaser, the Shareholders’ Representative or the New Operator if there has
        been a misrepresentation or breach of a representation or warranty or breach
        of
        a covenant on the part of the other Party(ies) under this Agreement and any
        such
        misrepresentation or breach, if capable of cure, is not cured on or before
        the
        15th
        day
        after written notice thereof to such other Party(ies) or if events have occurred
        which have made it impossible to satisfy a condition precedent to the
        terminating Party’s(ies’) obligations to consummate the transactions
        contemplated hereby (other than as a result of any willful act or omission
        by
        the terminating Party(ies)), except where such misrepresentation or breach
        would
        not have Material Adverse Effect;

       

      (c)  by
        either
        the Purchaser, the Shareholders’ Representative or the New Operator if the
        transactions contemplated hereby have not been consummated for any reason
        by
        June 29, 2005; provided,
        however,
        that
        neither the Purchaser, the Shareholders nor the New Operator shall be entitled
        to terminate this Agreement pursuant to this subsection (c) if such
        Party’s(ies’) willful breach or obstruction of the consummation of this
        Agreement, respectively, has prevented the consummation of the transactions
        contemplated hereby; 

       

      (d)  by
        Purchaser or the New Operator in its sole discretion if the Shareholders
        shall
        have supplemented or amended any of the Schedules to this Agreement after
        the
        date hereof and the changes made by such supplement or amendment, together
        with
        any previous supplement or amendment of such schedules, are material;
        or

       

      (e)  by
        either
        the Purchaser, the Shareholders’ Representative or the New Operator, if a court
        of competent jurisdiction shall have issued an order permanently restraining
        or
        prohibiting the transactions contemplated by this Agreement.

       

      12.02.  Effect
        of Termination.
        In the
        event of termination of this Agreement as provided above, this Agreement
        shall
        become void, and there shall be no liability on the part of any Party, except
        for breaches of this Agreement prior to the time of such termination and
        except
        for the provisions contained in this Section
        12.02,
        Section
        12.03
        and
Article
        XIV.

       

      12.03.  Release
        of Deposit Amount.
        In the
        event of termination of this Agreement as provided above, the Purchaser shall
        give written notice of the termination to LandAmerica and the Shareholders’
        Representative and LandAmerica shall promptly deliver to the Purchaser the
        Deposit Amount; provided,
        however,
        in the
        event that the Shareholders terminate this Agreement pursuant to Section
        11.03(b)
        due to a
        misrepresentation or breach of a representation or warranty or breach of
        a
        covenant on the part of the Purchaser or the Purchaser Parent, then the
        Shareholders shall give written notice of the termination to LandAmerica
        and the
        Purchaser and LandAmerica shall promptly deliver to the Shareholders’
        Representative the Deposit Amount.

       

      12.04.  Effect
        of Closing.
        The
        Parties shall be deemed to have waived their respective rights to terminate
        this
        Agreement upon the completion of the Closing. No such waiver shall constitute
        a
        waiver of any other rights arising from the non-fulfillment of any condition
        precedent set forth in Article
        VIII,
        Article
        IX
        or
Article
        X
        unless
        such waiver is made in writing.

       

      Article
        XIII  

      Additional
        Agreements

       

      13.01.  Cooperation
        on Tax Matters. 

       

      (a)  After
        the
        Closing, the Parties shall furnish or cause to be furnished to each other,
        upon
        request, in a timely manner, such information (including access to books
        and
        records) and assistance relating to the transactions contemplated hereby
        and for
        any Company, as is reasonably necessary for the filing of any tax return,
        and
        for the preparation of any audit, and for the prosecution or defense of any
        proceeding relating to any proposed tax adjustment. The Parties shall cooperate
        with each other in the conduct of any tax audit or the proceeding regarding
        any
        of the foregoing and will adopt consistent positions for tax
        purposes.

       

      (b)  The
        Shareholders are responsible for the preparation and filing of any Tax Return
        required to be filed after the Closing Date for a Company that pertains to
        a
        period or tax year ending before the Closing Date. Any Tax Return for a Company
        that pertains to a period or tax year that includes the Closing Date
        (“Straddle
        Tax Period”)
        and
        includes a Tax that affects the Working Capital Adjustment Amount must be
        prepared by the Purchaser and submitted to the Shareholders’ Representative
        (together with schedules, statements and, to the extent required by the
        Shareholders’ Representative, supporting documentation) at least 40 days prior
        to the due date (including extensions) of such Tax Return. If the Shareholders’
        Representative objects to any item on such a Tax Return, the Shareholders’
        Representative must, on or before the 10th
        day
        after delivery of such Tax Return, notify the Purchaser in writing that it
        so
        objects, specifying with particularity any such item and stating the specific
        factual or legal basis for such objection. If a notice of objection is timely
        delivered and the Purchaser and the Shareholders’ Representative are unable to
        resolve such objection on or before the 10th
        day
        after receipt by the Purchaser of such notice, the disputed items must be
        submitted for resolution to the Independent Accountants. The Independent
        Accountants will resolve any disputed item on or before the 20th
        day
        after having the item referred to them pursuant to such procedures as they
        may
        establish. The Purchaser and the Shareholders’ Representative will act timely
        and promptly to implement the decision of the Independent Accountants. The
        Purchaser shall pay one-half of all fees and expenses of the Independent
        Accountants for purpose of this Section
        13.01(b)
        and the
        Shareholders, collectively, shall pay the other one-half. In the case of
        any
        Taxes that are payable for a Straddle Tax Period, for purposes of preparing
        the
        Tax accrual on the Company balance sheets, the taxable year of the Company
        which
        includes the Closing Date will be treated as closing immediately prior to
        the
        Closing Date. Without the prior written consent of the Shareholders’
        Representative, the Purchaser will not permit a Company to file any amended
        Tax
        Return for a Straddle Tax Period or for a period that ended before the Closing
        Date. 

       

      13.02.  Press
        Release and Announcements.
        No
        Party shall, prior to the Closing, issue any press release, make any public
        announcement relating to the subject matter of this Agreement or other
        announcements to the employees, customers or suppliers of any Company without
        the prior written approval of the other Parties; provided, that, notwithstanding
        the foregoing, any Party, upon prior notice to the other Parties, and upon
        granting the other Parties a reasonable opportunity to discuss its contents,
        may
        make any public disclosure such Party believes in good faith is required
        or
        permitted by applicable Law.

       

      13.03.  Specific
        Performance.
        Each
        Shareholder acknowledges that the Business and the Company Shares are unique
        and
        recognize and affirm that, in the event of a breach of this Agreement by
        any
        Shareholder, money damages would be inadequate and Purchaser would have no
        adequate remedy at law. Accordingly, each Shareholder agrees that Purchaser
        shall have the right, in addition to any other rights and remedies existing
        in
        its favor, to enforce its rights and each Shareholder’s obligations hereunder by
        an action or actions for specific performance, injunction and/or other equitable
        relief, without posting any bond or security.

       

      13.04.  Remittances.
        All
        remittances, mail and other communications relating to any Company received
        by
        any Shareholder at any time after the Closing Date shall be promptly turned
        over
        to Purchaser by such Shareholder.

       

      13.05.  Efforts
        To Consummate Closing Transactions.
        On the
        terms and subject to the conditions contained in this Agreement, each Party
        shall use his, her or its respective commercially reasonable efforts to take,
        or
        cause to be taken, all actions, and to do, or cause to be done, all things
        necessary, proper or advisable under applicable Laws to consummate, as soon
        as
        reasonably practicable, the Closing, including the satisfaction of all
        conditions thereto set forth herein.

       

      Article
        XIV  

      Miscellaneous

       

      

       

      14.01.  Amendment.
        This
        Agreement and the exhibits and schedules to this Agreement may not be amended
        except by an instrument in writing signed on behalf of each of the
        Parties.

       

      14.02.  Extension;
        Waiver.
        At any
        time prior to the Closing Date, the Parties may (a) extend the time for the
        performance of any of the obligations or other acts of the other Party, (b)
        waive any inaccuracies in the representations and warranties of the other
        Party
        contained in this Agreement or in any document delivered pursuant to this
        Agreement, and (c) waive compliance by the other Party with any of the
        agreements or conditions contained in this Agreement. Any agreement on the
        part
        of a Party to any such extension or waiver shall be valid if set forth in
        an
        instrument in writing signed on behalf of such Party.

       

      14.03.  Entire
        Agreement; No Third Party Beneficiaries.
        This
        Agreement, together with the exhibits, schedules and other agreements referred
        to in this Agreement (a) constitutes the entire agreement between the Parties
        pertaining to the subject matter of this Agreement and supersedes all prior
        and
        contemporaneous agreements, understandings, negotiations and discussions,
        whether oral or written, of the Parties, and (b) is not intended to confer
        upon
        any Person other than the Parties any rights or remedies under this Agreement,
        other than as expressly set forth in this Agreement.

       

      14.04.  Governing
        Law; Venue; Waiver of Jury Trial.

       

      (a)  This
        Agreement will be governed by and interpreted and construed in accordance
        with
        the internal Laws of the State of Maryland, without giving effect to its
        conflicts of law principles. Any action brought in connection with this
        Agreement or the transactions contemplated by this Agreement must be brought
        in
        a court of competent jurisdiction sitting in the State of Maryland. The Parties
        agree that jurisdiction and venue in such courts is proper and waive any
        defense
        of lack of personal jurisdiction or inappropriate or inconvenient
        venue.

       

      (b)  The
        Parties hereby waive any right to trial by jury in any proceeding arising
        out of
        or relating to this Agreement or the Ancillary Documents or the transactions
        contemplated thereby, whether now existing or arising after the date of this
        Agreement, and whether sounding in contract, tort or otherwise. The Parties
        agree that any of them may file a copy of this subsection with any court
        as
        written evidence of the knowing, voluntary and bargained-for agreement among
        the
        Parties irrevocably to waive trial by jury and that any proceeding whatsoever
        between them relating to the this Agreement or the Ancillary Documents or
        any of
        the transactions contemplated by the Transaction Documents shall instead
        be
        tried in a court by a judge sitting without a jury.

       

      14.05.  Notices.
        All
        notices and other communications under this Agreement shall be in writing
        and
        shall be deemed given on the (a) date delivered to the appropriate address
        by
        hand (or the first business day after delivery if delivered other than on
        a
        business day), (b) the first business day after being sent by a nationally
        recognized overnight courier service (next-day delivery and costs prepaid),
        (c)
        date received if sent by facsimile with confirmation of transmission by the
        transmitting equipment (or the first business day after receipt if received
        other than on a business day), or (d) the date received or rejected by the
        addressee, if sent by certified mail, postage prepaid, return receipt requested,
        in each case to the following addresses and facsimile numbers and marked
        to the
        attention of the person (by name or title) designated below with such mailed
        notice to be effective on the date such receipt is acknowledged:

       

      If
        to the
        Purchaser or the Purchaser Parent, addressed to:

       

      Omega
        Healthcare Investors, Inc.

      9690
        Deereco Road, Suite 100

      Timonium,
        Maryland 21093

      Attention:
        Daniel J. Booth

      Facsimile:
        (410) 427-8824

       

      With
        a
        copy to:

       

      Dykema
        Gossett PLLC

      39577
        Woodward Avenue, Suite 300

      Bloomfield
        Hills, Michigan 48304

      Attn:
        Kyle R. Hauberg

      Facsimile:
        (248) 203-0763

       

      With
        a
        copy to:

       

      Buckingham,
        Doolittle & Burroughs, LLP

      191
        West
        Nationwide Blvd., Suite 300

      Columbus,
        Ohio 43215

      Attention:
        Thomas W. Hess

      Facsimile:
        (614) 221-8590

       

      If
        to the
        New Operator or the New Operator Parent, addressed to:

       

      CommuniCare
        Health Services, Inc.

      4700
        Ashwood Drive, Suite 200

      Cincinnati,
        Ohio 45241

      Attention:
        Charles R. Stoltz, Chief Executive Officer

      Facsimile:
        (513) 530-1359

      

      With
        a
        copy to:

       

      Benesch,
        Friedlander, Coplan & Aronoff LLP

      2300
        BP
        Tower

      200
        Public Square

      Cleveland,
        Ohio 44114

      Attention:
        Harry M. Brown

      Facsimile:
        (216) 363-4588

      

      or
        to
        such other place and with such other copies as either Party may designate
        as to
        itself by written notice to the other Parties. Prior to the Closing Date,
        all
        notices to the Companies shall be sent to the Shareholders’ Representative.
        After to the Closing Date, all notices to the Companies shall be sent to
        the
        Purchaser.

       

      14.06.  Counterparts.
        This
        Agreement may be executed in one or more counterparts (including by facsimile
        or
        electronically transmitted copies), each of which shall be deemed an original,
        but all of which together shall constitute one and the same
        instrument.

       

      14.07.  Successors
        and Assigns. No
        Party
        may assign, directly or indirectly, its rights or obligations hereunder without
        the prior written consent of the other Parties. This Agreement shall be binding
        upon and inure to the benefit of the successors, heirs, administrators,
        executors and permitted assigns of the Parties hereto.

       

      14.08.  Shareholders’
        Representative.
        Each
        Shareholder hereby irrevocably appoints Albert M. Wiggins, Jr. (the
“Shareholders’
        Representative”)
        as the
        agent of such Shareholder for all purposes relating to or in connection with
        any
        transaction contemplated by or relating to this Agreement and to be carried
        out
        prior to, at or after the Closing including (i) approving any modifications
        or
        amendments to this Agreement, (ii) making decision with respect to the
        determination of the Net Working Capital Adjustment Amount, (iii) the
        appointment of the Escrow Agent and execution and delivery of the Escrow
        Agreement, (iv) entering into any settlement or submitting the dispute to
        the
        Independent Accountant, (v) taking any action that may be necessary or
        desirable, as determined by the Shareholders’ Representative, in its sole
        discretion, in connection with the termination of this Agreement as provided
        in
Article
        XII,
        (vi)
        delivering or causing to be delivered to the Purchaser at the Closing
        certificates representing the Company Shares, (vii) executing and delivering,
        on
        behalf of the Shareholders and the Companies any and all notices, documents
        or
        certificates to be executed by the Shareholders or the Companies in connection
        with this Agreement and the transactions contemplated hereby; (viii) making
        any
        payments or paying any expenses under or in connection with this Agreement,
        (ix)
        granting any consent or approval on behalf of the Shareholders or the Companies
        under this Agreement; and (x) resolving disputes with the Purchaser that
        arise
        under this Agreement including disputes regarding indemnification claims
        by any
        Party. Each Shareholder herby appoints the Shareholders’ Representative as such
        Shareholder’s true and lawful attorney-in-fact and agent, with full powers of
        substitution and resubstitution, in such Shareholder’s name, place and stead, in
        any and all capacities, in connection with the transactions contemplated
        by this
        Agreement, granting unto said attorney-in-fact and agent, full power and
        authority to do and perform each and every act and thing requisite and necessary
        to be done in connection with the sale of such Shareholder’s shares as fully to
        all intents and purposes as such Shareholder might or could do in person.
        Each
        Shareholder hereby authorizes the Purchaser and its Affiliates to rely upon
        the
        agency created hereby and releases the Purchaser and its Affiliates from
        any and
        all liability to such Shareholder of whatever nature arising out of or relating
        to such agency, to the same extent as though any act committed or omitted
        by the
        Shareholders’ Representative pursuant to such agency had been committed or
        omitted by such Shareholder.

       

      14.09.  Schedules
        and Exhibits.
        Nothing
        in any schedule attached hereto shall be adequate to disclose an exception
        to a
        representation or warranty made in this Agreement unless such schedule
        identifies the exception with reasonable particularity and describes the
        relevant facts in reasonable detail. Without limiting the generality of the
        foregoing, the mere listing (or inclusion of a copy) of a document or other
        item
        shall not be adequate to disclose an exception to a representation or warranty
        made in this Agreement, unless the representation or warranty has to do with
        the
        existence of the document or other item itself. No exceptions to any
        representations or warranties disclosed on one schedule shall constitute
        an
        exception to any other representations or warranties made in this
        Agreement.

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          EXECUTION VERSION

        

      

      IN
        WITNESS WHEREOF, the parties hereto have executed this Stock Purchase Agreement
        as of the date first written above.

       

      PURCHASER

       

      OHI
        Asset (OH), LLC

       

      By:
        /s/
        Daniel J. Booth

      Name:
        Daniel J. Booth

      Title:
        Chief
        Operating Officer

       

      PARENT

       

      Omega
        Healthcare Investors, Inc.

       

      By:
        /s/
        Daniel J. Booth

      Name:
        Daniel J. Booth

      Title:
        Chief
        Operating Officer

       

      

      SHAREHOLDERS

      

      /s/
        Hollis J. Garfield

      Hollis
        J. Garfield

      

      

      /s/
        Albert M. Wiggins, Jr.

      Albert
        M. Wiggins, Jr.

      

      

      /s/
        A.
        David Wiggins

      A.
        David Wiggins

      

      

      Estate
        of Evelyn R. Garfield

      By:
        /s/
        A.M. Wiggins, Jr.

      A.M.
        Wiggins, Jr.  

      Co-Executor   

      

      Evelyn
        R. Garfield Revocable Trust

      By:
        /s/
        Hollis G. Wiggins

      Hollis
        G.
        Wiggins  

      Co-Trustee    

      

      SG
        Trust B-Hollis Trust

      

      By:
        /s/
        Hollis G. Wiggins

      Hollis
        G.
        Wiggins  

      Trustee   

       

      

      

      Evelyn
        Garfield Family Trust

      By:
        /s/
        Hollis G. Wiggins

      Hollis
        G.
        Wiggins  

      Co-Trustee   

      

      Evelyn
        Garfield Remainder Trust

      By:
        /s/
        Hollis G. Wiggins

      Hollis
        G.
        Wiggins

      Co-Trustee 

      

      COMPANIES

       

      Baldwin
        Health Center, Inc.

       

      By:
        /s/
        Hollis J. Garfield

      Hollis
        J.
        Garfield  

      President   

      

      Copley
        Health Center, Inc.

       

      By:
        /s/
        Hollis J. Garfield

      Hollis
        J.
        Garfield  

      President   

      

      Hanover
        House, Inc.

      

      By:
        /s/
        Hollis J. Garfield

      Hollis
        J.
        Garfield  

      President   

      

      House
        of Hanover, Ltd.

       

      By:
        /s/
        Hollis J. Garfield

      Hollis
        J.
        Garfield  

      President   

      

      Pavillion
        North, LLP, d/b/a Wexford

      House
        Nursing Center

      

      By Pavillion
        Nursing Center North, Inc.

      General
        Partner

      

      By:
        /s/
        Hollis J. Garfield

      Hollis
        J.
        Garfield  

      President   

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
            EXECUTION
              VERSION

          

        

      

      Pavillion
        Nursing Center, North, Inc.

       

      By:
        /s/
        Hollis J. Garfield

      Hollis
        J.
        Garfield  

      President   

      

       

      Pavillion
        North Partners, Inc.

       

      By:
        /s/
        Hollis J. Garfield

      Hollis
        J.
        Garfield  

      President   

      

       

      The
        Suburban Pavilion, Inc.

       

      By:
        /s/
        Hollis J. Garfield

      Hollis
        J.
        Garfield  

      President   

      

       

      NEW
        OPERATOR

       

      OMG
        MSTR LSCO, LLC

       

      By:
        /s/Stephen L. Rosedale

      Name:
        Stephen
        L. Rosedale

                      
            Title: Chief Executive Officer

      

       

      NEW
        OPERATOR PARENT

       

      CommuniCare
        Health Services, Inc.

       

      By:
        /s/
        Stephen L. Rosedale

      Name:
        Stephen L. Rosedale

                         
         Title: Chief
        Executive Officer

      

       

      LIMITED
        PARTY

       

      Emery
        Medical Management Co.

       

      By:
        /s/
        Hollis J. Garfield

      Hollis
        J.
        Garfield  

      President

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