Document:

m1172d_exhibits to PSA_MARM 2006-OA1 PSA Exhibits_85558_6.DOC

EXHIBIT A

(FORM OF SENIOR CERTIFICATE)

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

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, AS AMENDED (THE “CODE”).

	Certificate No.:

	[1]

	Cut-off Date:

	March 1, 2006

	First Distribution Date:

	April 25, 2006 

	Last Scheduled Distribution Date:

	April 25, 2046       

	Pass-Through Rate:

	Variable in accordance with the Agreement

	Initial Certificate Principal Balance of this Certificate (“Denomination”):

	$[____________]

	Initial Certificate Principal Balances of all Certificates of this Class:

	$[____________]

	CUSIP:

	[_____________]

MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

MASTR ADJUSTABLE RATE MORTGAGES TRUST 2006-OA1

Mortgage Pass-Through Certificates, Series 2006-OA1

Class [_]-A-[_]

evidencing a percentage interest in the distributions allocable to the Certificates of the above-referenced Class with respect to a Trust Fund consisting primarily of adjustable-rate mortgage loans (the “Mortgage Loans”) secured by first liens on one- to four-family residential properties

Mortgage Asset Securitization Transactions, Inc., as Depositor

Principal in respect of this Certificate is distributable monthly as set forth herein.  Accordingly, the Certificate Principal Balance at any time may be less than the Certificate Principal Balance as set forth herein.  This Certificate does not evidence an obligation of, or an interest in, and is not guaranteed by the Depositor, the Transferor, the Master Servicer, the Trust Administrator, the Custodian or the Trustee referred to below or any of their respective affiliates.  Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any governmental agency or instrumentality.

This certifies that CEDE & CO. is the registered owner of the Percentage Interest evidenced by this Certificate in certain monthly distributions with respect to a Trust Fund consisting primarily of the Mortgage Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”).  The Trust Fund was created pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date specified above (the “Agreement”) among the Depositor, UBS Real Estate Securities Inc., as transferor (the “Transferor”), Wells Fargo Bank, N.A., as master servicer (in such capacity, the “Master Servicer”), as trust administrator (in such capacity, the “Trust Administrator”), and as custodian (in such capacity, the “Custodian”), U.S. Bank National Association, as trustee (the “Trustee”), and Clayton Fixed Income Services, Inc f/k/a the Murray Hill Company, as Credit Risk Manager.  Distributions on this Certificate will be made primarily from collections on the applicable Mortgage Loans pursuant to the terms of the Agreement.  To the extent not defined herein, the capitalized terms used herein have the meanings assigned 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 the acceptance hereof assents and by which such Holder is bound.

Reference is hereby made to the further provisions of this Certificate set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

This Certificate shall not be entitled to any benefit under the Agreement or be valid for any purpose unless manually countersigned by an authorized signatory of the Trust Administrator.

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

Dated: April __, 2006

WELLS FARGO BANK, N.A.,

as Trust Administrator

By:

Countersigned:

By:

Authorized Signatory of

WELLS FARGO BANK, N.A.,

as Trust Administrator

EXHIBIT B

(FORM OF MEZZANINE CERTIFICATE)

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

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, AS AMENDED (THE “CODE”).

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN CERTIFICATES AS DESCRIBED IN 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 SECTION 4975 OF THE CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

	Certificate No.:

	[1]

	Cut-off Date:

	March 1, 2006

	First Distribution Date:

	April 25, 2006 

	Last Scheduled Distribution Date:

	April 25, 2046

	Pass-Through Rate:

	Variable in accordance with the Agreement

	Initial Certificate Principal Balance of this Certificate (“Denomination”):

	$[____________]

	Initial Certificate Principal Balances of all Certificates of this Class:

	$[____________]

	CUSIP:

	[_____________]

MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

MASTR ADJUSTABLE RATE MORTGAGES TRUST 2006-OA1

Mortgage Pass-Through Certificates, Series 2006-OA1

Class M-[  ]

evidencing a percentage interest in the distributions allocable to the Certificates of the above-referenced Class with respect to a Trust Fund consisting primarily of adjustable-rate mortgage loans (the “Mortgage Loans”) secured by first liens on one- to four-family residential properties

Mortgage Asset Securitization Transactions, Inc., as Depositor

Principal in respect of this Certificate is distributable monthly as set forth herein.  Accordingly, the Certificate Principal Balance at any time may be less than the Certificate Principal Balance as set forth herein.  This Certificate does not evidence an obligation of, or an interest in, and is not guaranteed by the Depositor, the Transferor, the Master Servicer, the Trust Administrator, the Custodian or the Trustee referred to below or any of their respective affiliates.  Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any governmental agency or instrumentality.

This certifies that CEDE & CO. is the registered owner of the Percentage Interest evidenced by this Certificate in certain monthly distributions with respect to a Trust Fund consisting primarily of the Mortgage Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”).  The Trust Fund was created pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date specified above (the “Agreement”) among the Depositor, UBS Real Estate Securities Inc., as transferor (the “Transferor”), Wells Fargo Bank, N.A., as master servicer (in such capacity, the “Master Servicer”), as trust administrator (in such capacity, the “Trust Administrator”), and as custodian (in such capacity, the “Custodian”), U.S. Bank National Association, as trustee (the “Trustee”), and Clayton Fixed Income Services, Inc f/k/a the Murray Hill Company, as Credit Risk Manager.  Distributions on this Certificate will be made primarily from collections on the applicable Mortgage Loans pursuant to the terms of the Agreement.  To the extent not defined herein, the capitalized terms used herein have the meanings assigned 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 the acceptance hereof assents and by which such Holder is bound.

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(b) of the Agreement.

Reference is hereby made to the further provisions of this Certificate set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

This Certificate shall not be entitled to any benefit under the Agreement or be valid for any purpose unless manually countersigned by an authorized signatory of the Trust Administrator.

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

Dated:  April __, 2006

WELLS FARGO BANK, N.A.,

as Trust Administrator

By:

Countersigned:

By:

Authorized Signatory of

WELLS FARGO BANK, N.A.,

as Trust Administrator

EXHIBIT C

(FORM OF CLASS X CERTIFICATE)

Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to Issuer or its agent for registration of transfer, exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

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, AS AMENDED (THE “CODE”).

THIS CERTIFICATE HAS NO PRINCIPAL BALANCE AND IS NOT ENTITLED TO ANY DISTRIBUTIONS IN RESPECT OF PRINCIPAL.

	Certificate No.:

	[1]

	Cut-off Date:

	March 1, 2006

	First Distribution Date:

	April 25, 2006 

	Last Scheduled Distribution Date:

	April 25, 2046 

	Pass-Through Rate:

	Variable in accordance with the Agreement

	Initial Notional Amount of this Certificate (“Denomination”):

	$[_______]

	Initial Notional Amount of all Certificates of this Class:

	$[_________]

	CUSIP:

	[_____________]

MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

MASTR ADJUSTABLE RATE MORTGAGES TRUST 2006-OA1

Mortgage Pass-Through Certificates, Series 2006-OA1

Class X[_]

evidencing a percentage interest in the distributions allocable to the Certificates of the above-referenced Class with respect to a Trust Fund consisting primarily of adjustable-rate mortgage loans (the “Mortgage Loans”) secured by first liens on one- to four-family residential properties

Mortgage Asset Securitization Transactions, Inc., as Depositor

This Certificate does not evidence an obligation of, or an interest in, and is not guaranteed by the Depositor, the Transferor, the Master Servicer, the Trust Administrator, the Custodian or the Trustee referred to below or any of their respective affiliates.  Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any governmental agency or instrumentality.

This certifies that CEDE & CO. is the registered owner of the Percentage Interest evidenced by this Certificate specified above in certain monthly distributions with respect to a Trust Fund consisting primarily of the Mortgage Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”).  The Trust Fund was created pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date specified above (the “Agreement”) among the Depositor, UBS Real Estate Securities Inc., as transferor (the “Transferor”), Wells Fargo Bank, N.A., as master servicer (in such capacity, the “Master Servicer”), as trust administrator (in such capacity, the “Trust Administrator”), and as custodian (in such capacity, the “Custodian”), U.S. Bank National Association, as trustee (the “Trustee”), and Clayton Fixed Income Services, Inc f/k/a the Murray Hill Company, as Credit Risk Manager.  Distributions on this Certificate will be made primarily from collections on the applicable Mortgage Loans pursuant to the terms of the Agreement.  To the extent not defined herein, the capitalized terms used herein have the meanings assigned 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 the acceptance hereof assents and by which such Holder is bound.

Reference is hereby made to the further provisions of this Certificate set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

This Certificate shall not be entitled to any benefit under the Agreement or be valid for any purpose unless manually countersigned by an authorized signatory of the Trust Administrator.

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

Dated:  April  __, 2006

WELLS FARGO BANK, N.A.,

as Trust Administrator

By:

Countersigned:

By:

Authorized Signatory of

WELLS FARGO BANK, N.A.,

as Trust Administrator

EXHIBIT D-1

 (FORM OF CLASS C CERTIFICATE)

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, AS AMENDED (THE “CODE”).

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN CERTIFICATES AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

THIS ERISA-RESTRICTED CERTIFICATE OR ANY INTEREST HEREIN MAY NOT BE TRANSFERRED UNLESS THE TRANSFEREE DELIVERS TO THE TRUST ADMINISTRATOR (I) A REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN OR ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE CODE OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE SUCH PLAN’S OR ARRANGEMENT’S ASSETS (A “PLAN”) OR A PERSON ACQUIRING THE CERTIFICATE FOR, ON BEHALF OF OR WITH THE ASSETS OF SUCH PLAN (A “BENEFIT PLAN INVESTOR”) OR (II) IF THE TRANSFEREE IS AN INSURANCE COMPANY AND THE CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN OR (III) AN OPINION OF COUNSEL IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.  IN THE EVENT THE REPRESENTATIONS REFERRED TO IN THE PRECEDING SENTENCE ARE NOT FURNISHED, SUCH REPRESENTATION SHALL BE DEEMED TO HAVE BEEN MADE TO THE TRUST ADMINISTRATOR BY THE TRANSFEREE’S ACCEPTANCE OF THIS CERTIFICATE, OR BY ANY BENEFICIAL OWNER WHO PURCHASES AN INTEREST IN THIS CERTIFICATE IN BOOK-ENTRY FORM.  IN THE EVENT THAT A REPRESENTATION IS VIOLATED, OR ANY ATTEMPT TO TRANSFER THIS CERTIFICATE TO A BENEFIT PLAN INVESTOR IS ATTEMPTED WITHOUT THE DELIVERY TO THE TRUST ADMINISTRATOR OF THE OPINION OF COUNSEL DESCRIBED ABOVE, THE ATTEMPTED TRANSFER OR ACQUISITION OF THIS CERTIFICATE SHALL BE VOID AND OF NO EFFECT.

	Certificate No.:

	[1]

	Cut-off Date:

	March 1, 2006

	First Distribution Date:

	April 25, 2006 

	Last Scheduled Distribution Date:

	April 25, 2046

	Pass-Through Rate:

	Variable in accordance with the Agreement

	Initial Certificate Principal Balance of this Certificate (“Denomination”):

	$[____________]

	Initial Certificate Principal Balances of all Certificates of this Class:

	$[____________]

	CUSIP:

	[_____________]

 MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

MASTR ADJUSTABLE RATE MORTGAGES TRUST 2006-OA1

Mortgage Pass-Through Certificates, Series 2006-OA1

Class C

evidencing a percentage interest in the distributions allocable to the Certificates of the above-referenced Class with respect to a Trust Fund consisting primarily of adjustable-rate mortgage loans (the “Mortgage Loans”) secured by first liens on one- to four-family residential properties

Mortgage Asset Securitization Transactions, Inc., as Depositor

Principal in respect of this Certificate is distributable monthly as set forth herein.  Accordingly, the Certificate Principal Balance at any time may be less than the Certificate Principal Balance as set forth herein.  This Certificate does not evidence an obligation of, or an interest in, and is not guaranteed by the Depositor, the Transferor, the Master Servicer, the Trust Administrator, the Custodian or the Trustee referred to below or any of their respective affiliates.  Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any governmental agency or instrumentality.

This certifies that [___________] is the registered owner of the Percentage Interest evidenced by this Certificate in certain monthly distributions with respect to a Trust Fund consisting primarily of the Mortgage Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”).  The Trust Fund was created pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date specified above (the “Agreement”) among the Depositor, UBS Real Estate Securities Inc., as transferor (the “Transferor”), Wells Fargo Bank, N.A., as master servicer (in such capacity, the “Master Servicer”), as trust administrator (in such capacity, the “Trust Administrator”), and as custodian (in such capacity, the “Custodian”), U.S. Bank National Association, as trustee (the “Trustee”), and Clayton Fixed Income Services, Inc f/k/a the Murray Hill Company, as Credit Risk Manager. Distributions on this Certificate will be made primarily from collections on the applicable Mortgage Loans pursuant to the terms of the Agreement.  To the extent not defined herein, the capitalized terms used herein have the meanings assigned 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 the acceptance hereof assents and by which such Holder is bound.

No transfer of a Certificate of this Class shall be made unless such transfer is made pursuant to an effective registration statement under the Securities Act and any applicable state securities laws or is exempt from the registration requirements under said Act and such laws.  In the event that a transfer is to be made in reliance upon an exemption from the Securities Act and such laws, in order to assure compliance with the Securities Act and such laws, the Certificateholder desiring to effect such transfer and such Certificateholder’s prospective transferee shall each certify to the Trust Administrator in writing the facts surrounding the transfer.  In the event that such a transfer is to be made within three years from the date of the initial issuance of Certificates pursuant hereto, there shall also be delivered (except in the case of a transfer pursuant to Rule 144A of the Securities Act) to the Trust Administrator an Opinion of Counsel that such transfer may be made pursuant to an exemption from the Securities Act and such state securities laws, which Opinion of Counsel shall not be obtained at the expense of the Trustee, the Master Servicer, the Trust Administrator or the Depositor.  The Holder hereof desiring to effect such transfer shall, and does hereby agree to, indemnify the Trustee and the Trust Administrator and the Depositor 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 an ERISA-Restricted Certificate shall be made unless the Trust Administrator shall have received either (i) a representation letter from the transferee of such ERISA-Restricted Certificate, acceptable to and in form and substance satisfactory to the Trust Administrator, to the effect that such transferee is not an employee benefit plan or arrangement subject to Section 406 of ERISA or Section 4975 of the Code or an entity whose underlying assets include such plan’s or arrangement’s assets, or a person acquiring such Certificate for, on behalf of or with the assets of, such plan or arrangement (a “Plan”) which representation letter shall not be an expense of the Trust Administrator or the Trust Fund, (ii) if the purchaser is an insurance company and the ERISA-Restricted Certificate has been the subject of an ERISA-Qualifying Underwriting, a representation that the purchaser is an insurance company which is purchasing such Certificates with funds contained in an “insurance company general account” (as such term is defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”)) and that the purchase and holding of such Certificate are covered under Sections I and III of PTCE 95-60 or (iii) in the case of any such ERISA-Restricted Certificate presented for registration in the name of a Plan or a person acquiring such Certificate for, on behalf of or with the assets of a Plan, (a “Benefit Plan Investor”), an Opinion of Counsel satisfactory to the Trust Administrator to the effect that the purchase or holding of such Certificate will not result in prohibited transactions under Section 406 of ERISA and/or Section 4975 of the Code and will not subject the Trustee, the Transferor, the Depositor, the Master Servicer or the Trust Administrator to any obligation in addition to those undertaken in this Agreement, which Opinion of Counsel shall not be an expense of such parties.  In the event the representations referred to in the preceding sentence are not furnished, such representation shall be deemed to have been made to the Trust Administrator by the transferee’s acceptance of an ERISA-Restricted Certificate or by any beneficial owner who purchases an interest in this certificate in book-entry form.  In the event that a representation is violated, or any attempt to transfer an ERISA-Restricted Certificate to a Benefit Plan Investor is attempted without the delivery to the Trust Administrator of the Opinion of Counsel described above, the attempted transfer or acquisition of this certificate shall be void and of no effect.

Reference is hereby made to the further provisions of this Certificate set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

This Certificate shall not be entitled to any benefit under the Agreement or be valid for any purpose unless manually countersigned by an authorized signatory of the Trust Administrator.

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

Dated:  April __, 2006

WELLS FARGO BANK, N.A.,

as Trust Administrator

By:

Countersigned:

By:

Authorized Signatory of

WELLS FARGO BANK, N.A.,

as Trust Administrator

EXHIBIT D-2

(FORM OF CLASS P CERTIFICATE)

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES NOT TO OFFER, SELL OR OTHERWISE TRANSFER SUCH CERTIFICATE EXCEPT IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND (A) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE ACT, (B) FOR SO LONG AS THIS CERTIFICATE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE ACT (“RULE 144A”), TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (C) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501 (A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE ACT IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS UNDER THE ACT, OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT, SUBJECT IN EACH OF THE FOREGOING CASES TO THE COMPLETION AND DELIVERY BY THE TRANSFEROR TO THE TRUST ADMINISTRATOR OF A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE LAST PAGE OF THIS CERTIFICATE.

NEITHER AN ERISA-RESTRICTED CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE TRANSFEREE REPRESENTS TO THE TRUST ADMINISTRATOR THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE CODE, OR DELIVERS TO THE TRUST ADMINISTRATOR A REPRESENTATION LETTER OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.  (SUCH REPRESENTATION SHALL BE DEEMED TO HAVE BEEN MADE TO THE TRUST ADMINISTRATOR BY THE TRANSFEREE’S ACCEPTANCE OF AN ERISA-RESTRICTED CERTIFICATE AND BY A BENEFICIAL OWNER’S ACCEPTANCE OF ITS INTEREST IN SUCH CERTIFICATE.) NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY HEREIN, ANY PURPORTED TRANSFER OF AN ERISA-RESTRICTED CERTIFICATE TO OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT SUBJECT TO ERISA OR THE CODE WITHOUT THE OPINION OF COUNSEL SATISFACTORY TO THE TRUST ADMINISTRATOR AS DESCRIBED ABOVE SHALL BE VOID AND OF NO EFFECT.

Certificate No.:

P

Cut-off Date:

March 1, 2006

First Distribution Date:

April 25, 2006

Last Scheduled Distribution Date:

April 25, 2046

Initial Certificate Principal Balance of this Certificate

$100

CUSIP:

[________]

MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

MASTR ADJUSTABLE RATE MORTGAGES TRUST 2006-OA1

Mortgage Pass-Through Certificates, Series 2006-OA1

Class P

evidencing  a  percentage  interest  in  the Class  P Prepayment Charges

Mortgage Asset Securitization Transactions, Inc., as Depositor

This Certificate does not evidence an obligation of, or an interest in, and is not guaranteed by the Depositor, the Master Servicer, the Trust Administrator, the Trustee or the Custodian referred to below or any of their respective affiliates. Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any governmental agency or instrumentality.

This certifies that [_______________] is the registered owner of the Percentage Interest evidenced by this Certificate in the Class P Prepayment Charges with respect to a Trust Fund consisting primarily of the Mortgage Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”). The Trust Fund was created pursuant to a Pooling and Servicing Agreement dated as of the date specified above (the “Agreement”) among the Depositor, UBS Real Estate Securities Inc., as transferor (the “Transferor”), Wells Fargo Bank, National Association, as master servicer (in such capacity, the “Master Servicer”), trust administrator (in such capacity, the “Trust Administrator”) and as custodian (in such capacity, the “Custodian”), U.S. Bank National Association, as trustee (the “Trustee”), and Clayton Fixed Income Services, Inc f/k/a the Murray Hill Company, as Credit Risk Manager. Distributions on this Certificate will be made from Class P Prepayment Charges pursuant to the terms of the Agreement. To the extent not defined herein, the capitalized terms used herein have the meanings assigned 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 the acceptance hereof assents and by which such Holder is bound.

No transfer of a Certificate of this Class shall be made unless such transfer is made pursuant to an effective registration statement under the Securities Act and any applicable state securities laws or is exempt from the registration requirements under said Act and such laws. In the event that a transfer is to be made in reliance upon an exemption from the Securities Act and such laws, in order to assure compliance with the Securities Act and such laws, the Certificateholder desiring to effect such transfer and such Certificateholder's prospective transferee shall each certify to the Trust Administrator in writing the facts surrounding the transfer or there shall be delivered to the Trust Administrator at the expense of the transferor an Opinion of Counsel addressed to the Trust Administrator that such transfer may be made pursuant to an exemption from the Securities Act. The Holder hereof desiring to effect such transfer shall, and does hereby agree to, indemnify the Trust Administrator, the Trustee, the Master Servicer and the Depositor 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 an ERISA-Restricted Certificate shall be made unless the Trust Administrator shall have received either (i) a representation (letter) from the transferee of such Certificate, acceptable to and in form and substance satisfactory to the Trust Administrator, to the effect that such transferee is not an employee benefit plan or other retirement arrangement subject to Section 406 of ERISA and/or Section 4975 of the Code, or a person acting for, on behalf of or with the assets of, any such plan or arrangement, (ii) in the case of an ERISA-Restricted Certificate which is the subject of an ERISA Qualifying Underwriting, if the purchaser is an insurance company, a representation that the purchaser is an insurance company which is purchasing such Certificates with funds contained in an “insurance company general account” (as such term is defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”)) and the purchase and holding of such Certificates are covered under Sections I and III of PTCE 95-60, or (iii) an Opinion of Counsel satisfactory to the Trust Administrator to the effect that the purchase or holding of such Certificate will not result in prohibited transactions under Section 406 of ERISA and/or Section 4975 of the Code and will not subject the Trustee, the Transferor, the Depositor, the Master Servicer or the Trust Administrator to any obligation in addition to those undertaken in the Agreement, which Opinion of Counsel shall not be an expense of such parties, the Master Servicer, the Trust Administrator or the Trust Fund.  (Such representations shall be deemed to have been made to the Trust Administrator by the Transferee’s acceptance of an ERISA-Restricted Certificate and by a beneficial owner’s acceptance of its interest in a Certificate of this Class.) Notwithstanding anything else to the contrary herein, any purported transfer of an ERISA-Restricted Certificate to or on behalf of an employee benefit plan or other retirement arrangement subject to ERISA or the Code without the Opinion of Counsel satisfactory to the Trust Administrator as described above shall be void and of no effect.

Reference is hereby made to the further provisions of this Certificate set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

This Certificate shall not be entitled to any benefit under the Agreement or be valid for any purpose unless manually countersigned by an authorized signatory of the Trust Administrator.

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

Dated:  April __, 2006

WELLS FARGO BANK, N.A.,

as Trust Administrator

By:

Countersigned:

By:

Authorized Signatory of

WELLS FARGO BANK, N.A.,

as Trust Administrator

EXHIBIT D-3

(FORM OF CLASS R CERTIFICATE)

THIS CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES PERSON.

FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”).  TRANSFERS OF THIS CERTIFICATE TO ANY PERSON WHO IS NOT A PERMITTED TRANSFEREE, AS SET FORTH IN SECTION 5.02(C) OF THE AGREEMENT IS PROHIBITED.

THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

THIS ERISA-RESTRICTED CERTIFICATE OR ANY INTEREST HEREIN MAY NOT BE TRANSFERRED UNLESS THE TRANSFEREE DELIVERS TO THE TRUST ADMINISTRATOR (I) A REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN OR ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE CODE OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE SUCH PLAN’S OR ARRANGEMENT’S ASSETS (A “PLAN”) OR A PERSON ACQUIRING THE CERTIFICATE FOR, ON BEHALF OF OR WITH THE ASSETS OF SUCH PLAN (A “BENEFIT PLAN INVESTOR”) OR (II) IF THE TRANSFEREE IS AN INSURANCE COMPANY AND THE CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN OR (III) AN OPINION OF COUNSEL IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.  IN THE EVENT THE REPRESENTATIONS REFERRED TO IN THE PRECEDING SENTENCE ARE NOT FURNISHED, SUCH REPRESENTATION SHALL BE DEEMED TO HAVE BEEN MADE TO THE TRUST ADMINISTRATOR BY THE TRANSFEREE’S ACCEPTANCE OF THIS CERTIFICATE, OR BY ANY BENEFICIAL OWNER WHO PURCHASES AN INTEREST IN THIS CERTIFICATE IN BOOK-ENTRY FORM.  IN THE EVENT THAT A REPRESENTATION IS VIOLATED, OR ANY ATTEMPT TO TRANSFER THIS CERTIFICATE TO A BENEFIT PLAN INVESTOR IS ATTEMPTED WITHOUT THE DELIVERY TO THE TRUST ADMINISTRATOR OF THE OPINION OF COUNSEL DESCRIBED ABOVE, THE ATTEMPTED TRANSFER OR ACQUISITION OF THIS CERTIFICATE SHALL BE VOID AND OF NO EFFECT.

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE TRUSTEE 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(D) OF THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED ORGANIZATION IS PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS CERTIFICATE.

	Certificate No.:

	[1]

	Cut-off Date:

	March 1, 2006

	First Distribution Date:

	April 25, 2006

	Last Scheduled Distribution Date:

	April 25, 2046

	Aggregate Percentage Interest of the Class R[-_] Certificates as of the Issue Date: 

	100.00%

	CUSIP:

	[____________]

MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

MASTR ADJUSTABLE RATE MORTGAGES TRUST 2006-OA1

Mortgage Pass-Through Certificates, Series 2006-OA1 

Class R[-_]

evidencing a percentage interest in the distributions allocable to the Certificates of the above-referenced Class with respect to a Trust Fund consisting primarily of adjustable-rate mortgage loans (the “Mortgage Loans”) secured by first liens on one- to four-family residential properties

Mortgage Asset Securitization Transactions, Inc., as Depositor

This Certificate does not evidence an obligation of, or an interest in, and is not guaranteed by the Depositor, the Transferor, the Master Servicer, the Trust Administrator, the Custodian or the Trustee referred to below or any of their respective affiliates.  Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any governmental agency or instrumentality.

This certifies that [___________] is the registered owner of the Percentage Interest evidenced by this Certificate in certain monthly distributions with respect to a Trust Fund consisting primarily of the Mortgage Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”).  The Trust Fund was created pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date specified above (the “Agreement”) among the Depositor, UBS Real Estate Securities Inc., as transferor (the “Transferor”), Wells Fargo Bank, N.A., as master servicer (in such capacity, the “Master Servicer”), as trust administrator (in such capacity, the “Trust Administrator”), and as custodian (in such capacity, the “Custodian”), U.S. Bank National Association, as trustee (the “Trustee”), and Clayton Fixed Income Services, Inc f/k/a the Murray Hill Company, as Credit Risk Manager. Distributions on this Certificate will be made primarily from collections on the applicable Mortgage Loans pursuant to the terms of the Agreement.  To the extent not defined herein, the capitalized terms used herein have the meanings assigned 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 the acceptance hereof assents and by which such Holder is bound.

Any distribution of the proceeds of any remaining assets of the Trust Fund will be made only upon presentment and surrender of this Class R[-_] Certificate at the Corporate Trust Office of the Trust Administrator.

Prior to registration of any transfer, sale or other disposition of this Certificate, the proposed transferee shall provide to the Trust 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 a residual interest in a 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 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 the Trust Fund to cease to qualify as a REMIC or cause the imposition of a tax upon the REMIC.

No transfer of an ERISA-Restricted Certificate shall be made unless the Trust Administrator shall have received either (i) a representation letter from the transferee of such ERISA-Restricted Certificate, acceptable to and in form and substance satisfactory to the Trust Administrator, to the effect that such transferee is not an employee benefit plan or arrangement subject to Section 406 of ERISA or Section 4975 of the Code or an entity whose underlying assets include such plan’s or arrangement’s assets, or a person acquiring such Certificate for, on behalf of or with the assets of, such plan or arrangement (a “Plan”) which representation letter shall not be an expense of the Trust Administrator or the Trust Fund, (ii) if the purchaser is an insurance company and the ERISA-Restricted Certificate has been the subject of an ERISA-Qualifying Underwriting, a representation that the purchaser is an insurance company which is purchasing such Certificates with funds contained in an “insurance company general account” (as such term is defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”)) and that the purchase and holding of such Certificate are covered under Sections I and III of PTCE 95-60 or (iii) in the case of any such ERISA-Restricted Certificate presented for registration in the name of a Plan or a person acquiring such Certificate for, on behalf of or with the assets of a Plan, (a “Benefit Plan Investor”), an Opinion of Counsel satisfactory to the Trust Administrator to the effect that the purchase or holding of such Certificate will not result in prohibited transactions under Section 406 of ERISA and/or Section 4975 of the Code and will not subject the Trustee, the Transferor, the Depositor, the Master Servicer or the Trust Administrator to any obligation in addition to those undertaken in this Agreement, which Opinion of Counsel shall not be an expense of such parties.  In the event the representations referred to in the preceding sentence are not furnished, such representation shall be deemed to have been made to the Trust Administrator by the transferee’s acceptance of an ERISA-Restricted Certificate or by any beneficial owner who purchases an interest in this certificate in book-entry form.  In the event that a representation is violated, or any attempt to transfer an ERISA-Restricted Certificate to a Benefit Plan Investor is attempted without the delivery to the Trust Administrator of the Opinion of Counsel described above, the attempted transfer or acquisition of this certificate shall be void and of no effect.

Reference is hereby made to the further provisions of this Certificate set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

This Certificate shall not be entitled to any benefit under the Agreement or be valid for any purpose unless manually countersigned by an authorized signatory of the Trust Administrator.

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

Dated:  April __, 2006

WELLS FARGO BANK, N.A.,

as Trust Administrator

By:

Countersigned:

By:

Authorized Signatory of

WELLS FARGO BANK, N.A.,

as Trust Administrator

EXHIBIT E-1

[RESERVED]

EXHIBIT E-2

[RESERVED]

EXHIBIT F

(Form of Reverse of Certificates)

MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

MASTR ADJUSTABLE RATE MORTGAGES TRUST 2006-OA1

Mortgage Pass-Through Certificates, Series 2006-OA1

This Certificate is one of a duly authorized issue of Certificates designated as Mortgage Asset Securitization Transactions, Inc. MASTR Adjustable Rate Mortgages Trust 2006-OA1, Mortgage Pass-Through Certificates, of the Series specified on the face hereof (herein collectively called the “Certificates”), and representing a beneficial ownership interest in the Trust Fund created by the Agreement.

The Certificateholder, by its acceptance of this Certificate, agrees that it will look solely to the funds on deposit in the Distribution Account for payment hereunder and that the Trust Administrator is not liable to the Certificateholders for any amount payable under this Certificate or the Agreement or, except as expressly provided in the Agreement, subject to any liability under the Agreement.

This Certificate does not purport to summarize the Agreement and reference is made to the Agreement for the interests, rights and limitations of rights, benefits, obligations and duties evidenced thereby, and the rights, duties and immunities of the Trust Administrator.

Pursuant to the terms of the Agreement, a distribution 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 (the “Distribution Date”), commencing on the first Distribution Date specified on the face hereof, to the Person in whose name this Certificate is registered at the close of business on the applicable 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 Holders of Certificates of the Class to which this Certificate belongs on such Distribution Date pursuant to the Agreement.  [For the Classes other than the Class 2-A-1, Class 3-A-1, Class 3-A-2, Class 3-A-3 and Class X Certificates only] [The Record Date applicable to each Distribution Date is the Business Day immediately preceding the related Distribution Date] [For the Class 2-A-1, Class 3-A-1, Class 3-A-2, Class 3-A-3 and Class X Certificates only] [The Record Date applicable to each Distribution Date is the last Business Day of the month in which the related Distribution Date occurs]. 

Distributions on this Certificate shall be made by wire transfer of immediately available funds to the account of the Holder hereof at a bank or other entity having appropriate facilities therefor, if such Certificateholder shall have so notified the Trust Administrator in writing at least five Business Days prior to the related Record Date and such Certificateholder shall satisfy the conditions to receive such form of payment set forth in the Agreement, or, if not, by check mailed by first class mail to the address of such Certificateholder appearing in the Certificate Register.  The final distribution on each Certificate will be made in like manner, but only upon presentment and surrender of such Certificate at the Corporate Trust Office of the Trust Administrator or such other location specified in the notice to Certificateholders of such final distribution.

The Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Trust Administrator and the rights of the Certificateholders under the Agreement at any time by the Transferor, the Depositor, the Master Servicer, the Trust Administrator, the Custodian and the Trustee with the consent of the Holders of Certificates affected by such amendment evidencing the requisite Percentage Interest, as provided in the Agreement.  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 therefor 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 of the Trust Administrator upon surrender of this Certificate for registration of transfer at the offices that the Trust Administrator designates for such purposes, accompanied by a written instrument of transfer in form satisfactory to the Trust Administrator and the Certificate Registrar 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 and evidencing the same aggregate Percentage Interest in the Trust Fund will be issued to the designated transferee or transferees.

The Certificates are issuable only as registered Certificates without coupons in denominations 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 and 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, but the Trust Administrator may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

The Depositor, the Master Servicer, the Trust Administrator and the Trustee and any agent of the Depositor, the Master Servicer, the Trust Administrator or the Trustee may treat the Person in whose name this Certificate is registered as the owner hereof for all purposes, and neither the Depositor, the Master Servicer, the Trust Administrator, the Trustee, nor any such agent shall be affected by any notice to the contrary.

On any Distribution Date on which the Pool Principal Balance is less than 10% of the aggregate Cut-off Date Principal Balances of the Mortgage Loans, the Master Servicer will have the option to repurchase, in whole, from the Trust Fund all remaining Mortgage Loans and all property acquired in respect of the Mortgage Loans at a purchase price determined as provided in the Agreement.  In the event that no such optional termination occurs, the obligations and responsibilities created by the Agreement will terminate upon the later of the maturity or other liquidation (or any advance with respect thereto) of the last Mortgage Loan remaining in the Trust Fund or the disposition of all property in respect thereof and the distribution to Certificateholders of all amounts required to be distributed pursuant to the Agreement.  In no event, however, will the trust created by the Agreement continue beyond the expiration of 21 years from the death of the last survivor of the descendants living at the date of the Agreement of a certain person named in the Agreement.

Any term used herein that is defined in the Agreement shall have the meaning assigned in the Agreement, and nothing herein shall be deemed inconsistent with that meaning.

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto 

(Please print or typewrite name and address including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby authorizes the transfer of registration of such Percentage Interest to assignee on the Certificate Register of the Trust Fund.

I (We) further direct the Trust Administrator to issue a new Certificate of a like denomination and Class, to the above named assignee and deliver such Certificate to the following address:

Dated: 

Signature by or on behalf of assignor

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 __________________________.  Statements should be mailed to ________________________________________________ ___________________________________________________________________________________________________________________________________________________________.

This information is provided by, 

the assignee named above, or 

,

as its agent.

STATE OF 

)

)

ss.:

COUNTY OF 

)

On the

day of _______, 200_   before me, a notary public in and for said State, personally appeared ___________________________________, known to me who, being by me duly sworn, did depose and say that he executed the foregoing instrument.

Notary Public

[Notarial Seal]

EXHIBIT G

FORM OF INITIAL CERTIFICATION OF CUSTODIAN

[date]

Mortgage Asset Securitization Transactions, Inc.

1285 Avenue of the Americas

New York, NY 10019

U.S. Bank National Association, as trustee

60 Livingston Avenue, EP-MN-WS3D,

St. Paul, Minnesota 55107-2292

Attn: Structured Finance/MARM 2006-OA1

Re:

Pooling and Servicing Agreement among Mortgage Asset Securitization Transactions, Inc., as depositor, UBS Real Estate Securities Inc., as transferor, Wells Fargo Bank, N.A., as master servicer, as trust administrator, and as custodian, and U.S. Bank National Association, as trustee, and Clayton Fixed Income Services, Inc f/k/a the Murray Hill Company, as Credit Risk Manager, in connection with MASTR Adjustable Rate Mortgages Trust 2006-OA1, Mortgage Pass-Through Certificates, Series 2006-OA1.

Gentlemen:

In accordance with Section 2.02 of the above-captioned Pooling and Servicing Agreement (the “Pooling and Servicing Agreement”), the undersigned, as Custodian acting on behalf of the Trustee with respect to the related Mortgage Loans, hereby certifies that, as to each related Mortgage Loan listed in the Mortgage Loan Schedule (other than any related Mortgage Loan paid in full or any related Mortgage Loan listed on the attached schedule) it has received:

(i)

(a) the original Mortgage Note or (b) with respect to any Lost Mortgage Note, a lost note affidavit from the Depositor stating that the original Mortgage Note was lost or destroyed; and

(ii)

a duly executed assignment of the Mortgage (which may be included in a blanket assignment or assignments).

Based on its review and examination and only as to the foregoing documents, such documents appear regular on their face and related to such Mortgage Loan.

The Custodian has made no independent examination of any documents contained in each related Mortgage File beyond the review specifically required in the Pooling and Servicing Agreement.  The Custodian makes no representations as to:  (i) the validity, legality, sufficiency, enforceability or genuineness of any of the documents contained in each related Mortgage File of any of the related Mortgage Loans identified on the Mortgage Loan Schedule, or (ii) the collectability, insurability, effectiveness or suitability of any such Mortgage Loan.

Capitalized words and phrases used herein shall have the respective meanings assigned to them in the Pooling and Servicing Agreement.

[NAME OF CUSTODIAN],

as Custodian

By:

Name:

Title:

EXHIBIT H

FORM OF FINAL CERTIFICATION OF CUSTODIAN

[date]

U.S. Bank National Association, as trustee

60 Livingston Avenue, EP-MN-WS3D,

St. Paul, Minnesota 55107-2292

Attn: Structured Finance/MARM 2006-OA1

UBS Real Estate Securities Inc.

1285 Avenue of the Americas

New York, NY 10019

Mortgage Asset Securitization Transactions, Inc.

1285 Avenue of the Americas

New York, NY 10019

Re:

Pooling and Servicing Agreement among Mortgage Asset Securitization Transactions, Inc., as depositor, UBS Real Estate Securities Inc., as transferor, Wells Fargo Bank, N.A., as master servicer, as trust administrator, and as custodian, U.S. Bank National Association, as trustee, and Clayton Fixed Income Services, Inc f/k/a the Murray Hill Company, as Credit Risk Manager, in connection with MASTR Adjustable Rate Mortgages Trust 2006-OA1, Mortgage Pass-Through Certificates, Series 2006-OA1.

Gentlemen:

In accordance with Section 2.02 of the above-captioned Pooling and Servicing Agreement (the “Pooling and Servicing Agreement”), the undersigned, as Custodian acting on behalf of the Trustee with respect to the related Mortgage Loans, hereby certifies that, as to each related Mortgage Loan listed in the Mortgage Loan Schedule (other than any related Mortgage Loan paid in full or any related Mortgage Loan listed on the attached schedule) it has received:

(i)

the original Mortgage Note endorsed in the form provided in Section 2.01(b) of the Pooling and Servicing Agreement, with all intervening endorsements showing a complete chain of endorsement from the originator to the Person endorsing the Mortgage Note.

(ii)

The original recorded Mortgage.

(iii)

A duly executed assignment of the Mortgage in the form provided in Section 2.01(b) of the Pooling and Servicing Agreement, or, if the Depositor has certified or the Custodian otherwise knows that the related Mortgage has not been returned from the applicable recording office, a copy of the assignment of the Mortgage (excluding information to be provided by the recording office).

(iv)

The original or duplicate original recorded assignment or assignments of the Mortgage showing a complete chain of assignment from the originator to the Depositor.

(v)

The original or duplicate original lender’s title policy and all riders thereto.

Based on its review and examination and only as to the foregoing documents, (a) such documents appear regular on their face and related to such Mortgage Loan, and (b) the information set forth in items (1), (2), (3), (4), (9), (16) and (21) of the definition of the “Mortgage Loan Schedule” in Section 1.01 of the Pooling and Servicing Agreement accurately reflects information set forth in the Mortgage File.

The Custodian on behalf of the Trustee has made no independent examination of any documents contained in each related Mortgage File beyond the review specifically required in the Pooling and Servicing Agreement.  The Custodian on behalf of the Trustee makes no representations as to:  (i) the validity, legality, sufficiency, enforceability or genuineness of any of the documents contained in each related Mortgage File of any of the related Mortgage Loans identified on the Mortgage Loan Schedule, or (ii) the collectability, insurability, effectiveness or suitability of any such Mortgage Loan.

Capitalized words and phrases used herein shall have the respective meanings assigned to them in the Pooling and Servicing Agreement.

[NAME OF CUSTODIAN],

as Custodian 

By:

Name:

Title:

EXHIBIT I

FORM OF CLASS R[-_] TRANSFER AFFIDAVIT

MASTR ADJUSTABLE RATE MORTGAGES TRUST 2006-OA1

Mortgage Asset Securitization Transactions, Inc.

Mortgage Pass-Through Certificates

Series 2006-OA1

STATE OF 

)

)

ss.:

COUNTY OF 

)

The undersigned, being first duly sworn, deposes and says as follows:

1.

The undersigned is an officer of _______, the proposed Transferee of an Ownership Interest in a Class R[-_] Certificate (the “Certificate”) issued pursuant to the Pooling and Servicing Agreement dated as of March 1, 2006 (the “Agreement”) among Mortgage Asset Securitization Transactions, Inc., as depositor, UBS Real Estate Securities Inc., as transferor (the “Transferor”), Wells Fargo Bank, N.A., as master servicer (in such capacity, the “Master Servicer”), as trust administrator (in such capacity, the “Trust Administrator”), and as custodian (in such capacity, the “Custodian”), U.S. Bank National Association, as trustee (the “Trustee”), and Clayton Fixed Income Services, Inc f/k/a the Murray Hill Company, as Credit Risk Manager.  Capitalized terms used, but not defined herein or in Exhibit 1 hereto, shall have the meanings ascribed to such terms in the Agreement.  The Transferee has authorized the undersigned to make this affidavit on behalf of the Transferee.

2.

The Transferee is, as of the date hereof, and will be, as of the date of the Transfer, a Permitted Transferee.  The Transferee is acquiring its Ownership Interest in the Certificate either (i) for its own account or (ii) as nominee, trustee or agent for another Person and has attached hereto an affidavit from such Person in substantially the same form as this affidavit.  The Transferee has no knowledge that any such affidavit is false.

3.

The Transferee has been advised of, and understands that (i) a tax will be imposed on Transfers of the Certificate to Persons that are Disqualified Organizations; (ii) such tax will be imposed on the transferor, or, if such Transfer is through an agent (which includes a broker, nominee or middleman) for a Person that is a Disqualified Organization, on the agent; and (iii) the Person otherwise liable for the tax shall be relieved of liability for the tax if the subsequent Transferee furnished to such Person an affidavit that such subsequent Transferee is not a Disqualified Organization and, at the time of Transfer, such Person does not have actual knowledge that the affidavit is false.

4.

The Transferee has been advised of, and understands that a tax will be imposed on a “pass-through entity” holding the Certificate if at any time during the taxable year of the pass-through entity a Person that is a Disqualified Organization is the record holder of an interest in such entity.  The Transferee understands that such tax will not be imposed for any period with respect to which the record holder furnishes to the pass-through entity an affidavit that such record holder is not a Disqualified Organization and the pass-through entity does not have actual knowledge that such affidavit is false; provided, that a pass-through entity which is an “electing large partnership” under the Code will be subject to tax in all events.  (For this purpose, a “pass-through entity” includes a regulated investment company, a real estate investment trust or common trust fund, a partnership, trust or estate, and certain cooperatives and, except as may be provided in Treasury Regulations, persons holding interests in pass-through entities as a nominee for another Person.) The Transferee further understands that it may incur tax liabilities with respect to the holding of the Certificate in excess of cash flows generated thereby.

5.

The Transferee has reviewed the provisions of Section 5.02(c) of the Agreement (attached hereto as Exhibit 2 and incorporated herein by reference) and understands the legal consequences of the acquisition of an Ownership Interest in the Certificate including, without limitation, the restrictions on subsequent Transfers and the provisions regarding voiding the Transfer and mandatory sales.  The Transferee expressly agrees to be bound by and to abide by the provisions of Section 5.02(c) of the Agreement and the restrictions noted on the face of the Certificate.  The Transferee understands and agrees that any breach of any of the representations included herein shall render the Transfer to the Transferee contemplated hereby null and void.

6.

The Transferee agrees to require a Transfer Affidavit from any Person to whom the Transferee attempts to Transfer its Ownership Interest in the Certificate, and in connection with any Transfer by a Person for whom the Transferee is acting as nominee, trustee or agent, and the Transferee will not Transfer its Ownership Interest or cause any Ownership Interest to be Transferred to any Person that the Transferee knows is not a Permitted Transferee.  In connection with any such Transfer by the Transferee, the Transferee agrees to deliver to the Trust Administrator a certificate substantially in the form set forth as Exhibit I to the Agreement (a “Transferor Certificate”) to the effect that such Transferee has no actual knowledge that the Person to which the Transfer is to be made is not a Permitted Transferee.

7.

The Transferee does not have the intention to impede the assessment or collection of any tax legally required to be paid with respect to the Certificate.  The Transferee historically has paid its debts as they have become due and intends to do so in the future.  The Transferee understands that the taxable income and tax liability with respect to this Certificate will exceed distributions with respect to the Certificate in some or all periods and intends to pay all taxes with respect to the Certificate as they become due.

8.

The Transferee’s taxpayer identification number is __________.

9.

The Transferee is a U.S. Person as defined in Code Section 7701(a)(30) or is not a U.S. Person and has furnished the Transferor and the Trust Administrator with a duly completed Internal Revenue Service Form W-8ECI or any applicable successor form.

10.

The Transferee is aware that the Certificate may be a “noneconomic residual interest” within the meaning of proposed Treasury regulations promulgated pursuant to the Code and that the transferor of a noneconomic residual interest will remain liable for any taxes due with respect to the income on such residual interest, unless no significant purpose of the transfer was to impede the assessment or collection of tax.

11.

The Transferee will not cause income with respect to the Certificate to be attributable to a foreign permanent establishment or fixed base, within the meaning of an applicable income tax treaty, of the Transferee or any other U.S. Person.

12.

Check one of the following paragraphs:

□ The present value of the anticipated tax liabilities associated with holding the Certificate, as applicable, does not exceed the sum of:

(i)

the present value of any consideration given to the Transferee to acquire 

such Certificate;

(ii)

the present value of the expected future distributions on such

Certificate; and 

(iii)

the present value of the anticipated tax savings associated with holding 

such Certificate as the related REMIC generates losses.

For purposes of this calculation, (i) the Transferee is assumed to pay tax at the highest rate currently specified in Section 11(b) of the Code (but the tax rate in Section 55(b)(1)(B) of the Code may be used in lieu of the highest rate specified in Section 11(b) of the Code if the Transferee has been subject to the alternative minimum tax under Section 55 of the Code in the preceding two years and will compute its taxable income in the current taxable year using the alternative minimum tax rate) and (ii) present values are computed using a discount rate equal to the short-term Federal rate prescribed by Section 1274(d) of the Code for the month of the transfer and the compounding period used by the Transferee.

□ The transfer of the Certificate complies with U.S. Treasury Regulations Sections 1.860E-1(c)(5) and (6) and, accordingly,

(i)

the Transferee is an “eligible corporation,” as defined in U.S. Treasury Regulations Section 1.860E-1(c)(6)(i), as to which income from the Certificate will only be taxed in the United States;

(ii)

at the time of the transfer, and at the close of the Transferee’s two fiscal years preceding the year of the transfer, the Transferee had gross assets for financial reporting purposes (excluding any obligation of a person related to the Transferee within the meaning of U.S. Treasury Regulations Section 1.860E-1(c)(6)(ii)) in excess of $100 million and net assets in excess of $10 million;

(iii)

the Transferee will transfer the Certificate only to another “eligible corporation,” as defined in U.S. Treasury Regulations Section 1.860E-1(c)(6)(i), in a transaction that satisfies the requirements of U.S. Treasury Regulations Sections 1.860E-1(c)(4)(i), (ii) and (iii) and Section 1.860E-1(c)(5); and

(iv)

the Transferee determined the consideration paid to it to acquire the Certificate based on reasonable market assumptions (including, but not limited to, borrowing and investment rates, prepayment and loss assumptions, expense and reinvestment assumptions, tax rates and other factors specific to the Transferee) that it has determined in good faith.

□ None of the above.

13.

The Transferee is either:  (i) not an employee benefit plan or other retirement arrangement subject to Section 406 of ERISA and/or Section 4975 of the Code, or a person acting for, on behalf of or with the assets of, any such plan or arrangement, (ii) if the purchaser is an insurance company, the purchaser is an insurance company which is purchasing such Certificate with funds contained in an “insurance company general account” (as such term is defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”)) and the purchase and holding of such Certificate is covered under Sections I and III of PTCE 95-60, or (iii) the Transferee has delivered to the Trust Administrator an Opinion of Counsel satisfactory to the Trust Administrator to the effect that the purchase or holding of such Certificate will not result in prohibited transactions under Section 406 of ERISA and/or Section 4975 of the Code and will not subject the Trustee, the Transferor, the Depositor, the Master Servicer or the Trust Administrator to any obligation in addition to those undertaken in the Agreement, which Opinion of Counsel shall not be an expense of such parties or the Trust Fund.

*         *         *

IN WITNESS WHEREOF, the Transferee has caused this instrument to be executed on its behalf, pursuant to authority of its Board of Directors, by its duly authorized officer and its corporate seal to be hereunto affixed, duly attested, this ____________ day of __________________, 200_.

PRINT NAME OF TRANSFEREE

By:

Name:

Title:

[Corporate Seal]

ATTEST:

[Assistant] Secretary

Personally appeared before me the above-named _______, known or proved to me to be the same person who executed the foregoing instrument and to be the __________ of the Transferee, and acknowledged that he executed the same as his free act and deed and the free act and deed of the Transferee.

Subscribed and sworn before me this 

 day of _______, 200_.

NOTARY PUBLIC

My Commission expires the ______ day of ________________, 200_.

EXHIBIT 1

to EXHIBIT I

Certain Definitions

“Disqualified Organization”:  A Person specified in clauses (i)-(iv) of the definition of “Permitted Transferee.”

“Ownership Interest”:  As to any Residual Certificate, any ownership interest in such Certificate, including any interest in such Certificate as the Holder thereof and any other interest therein, whether direct or indirect, legal or beneficial.

“Permitted Transferee”:  Any person other than (i) the United States, any State or political subdivision thereof, or any agency or instrumentality of any of the foregoing, (ii) a foreign government, International Organization or any agency or instrumentality of either of the foregoing, (iii) an organization (except certain farmers’ cooperatives described in Section 521 of the Code) which is exempt from tax imposed by Chapter 1 of the Code (including the tax imposed by Section 511 of the Code on unrelated business taxable income) on any excess inclusions (as defined in Section 860E(c)(l) of the Code) with respect to any Residual Certificate, (iv) rural electric and telephone cooperatives described in Section 1381(a)(2)(C) of the Code, (v) a Person that is not a citizen or resident of the United States, a corporation, partnership (except as provided in applicable Treasury Regulations), or other entity created or organized in or under the laws of the United States or any state thereof or the District of Columbia, an estate whose income is subject to United States federal income tax purposes 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 persons described in this clause (v) have the authority to control all substantial decisions of the trust (or, to the extent provided in applicable Treasury Regulations, certain trusts in existence on September 20, 1996 which are eligible to elect to be treated as United States persons) unless such Person has furnished the transferor and the Trust Administrator with a duly completed Internal Revenue Service Form W-8ECI or any applicable successor form, (vi) any Person with respect to whom income on any residual certificate is attributable to a foreign permanent establishment or fixed base, within the meaning of an applicable treaty, of such Person or any other U.S. Person and (vii) any other Person so designated by the Depositor based upon an Opinion of Counsel that the Transfer of an Ownership Interest in a Residual Certificate to such Person may cause a 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 Section 7701 of the Code or successor provisions.  A corporation will not be treated as an instrumentality of the United States or of any State or political subdivision thereof for these purposes if all of its activities are subject to tax and, with the exception of the Freddie Mac, a majority of its board of directors is not selected by such government unit.

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

“Transfer”:  Any direct or indirect transfer or sale of any Ownership Interest in a Residual Certificate.

“Transferee”:  Any Person who is acquiring by Transfer any Ownership Interest in a Residual Certificate.

EXHIBIT 2

to EXHIBIT I

Each Person who has or who acquires any Ownership Interest in a Residual Certificate shall be deemed by the acceptance or acquisition of such Ownership Interest to have agreed to be bound by the following provisions, and the rights of each Person acquiring any Ownership Interest in a Residual Certificate are expressly subject to the following provisions:

(i)

Each Person holding or acquiring any Ownership Interest in a Residual Certificate shall be a Permitted Transferee and shall promptly notify the Trust Administrator of any change or impending change in its status as a Permitted Transferee.

(ii)

No Ownership Interest in a Residual Certificate may be registered on the Closing Date or thereafter transferred, and the Trust Administrator shall not register the Transfer of any Residual Certificate unless, in addition to the certificates required to be delivered to the Trust Administrator under subparagraph (b) above, the Trust Administrator shall have been furnished with an affidavit (a “Transfer Affidavit”) of the initial owner or the proposed transferee in the form attached hereto as Exhibit I.

(iii)

Each Person holding or acquiring any Ownership Interest in a Residual Certificate shall agree (A) to obtain a Transfer Affidavit from any other Person to whom such Person attempts to Transfer its Ownership Interest in a Residual Certificate, (B) to obtain a Transfer Affidavit from any Person for whom such Person is acting as nominee, trustee or agent in connection with any Transfer of a Residual Certificate and (C) not to Transfer its Ownership Interest in a Residual Certificate or to cause the Transfer of an Ownership Interest in a Residual Certificate to any other Person if it has actual knowledge that such Person is not a Permitted Transferee.

(iv)

Any attempted or purported Transfer of any Ownership Interest in a Residual Certificate in violation of the provisions of this Section 5.02(c) shall be absolutely null and void and shall vest no rights in the purported Transferee.  If any purported transferee shall become a Holder of a Residual Certificate in violation of the provisions of this Section 5.02(c), then the last preceding Permitted Transferee shall be restored to all rights as Holder thereof retroactive to the date of registration of Transfer of such Residual Certificate.  The Trust Administrator shall be under no liability to any Person for any registration of Transfer of a Residual Certificate that is in fact not permitted by Section 5.02(b) and this Section 5.02(c) or for making any payments due on such Certificate to the Holder thereof or taking any other action with respect to such Holder under the provisions of this Agreement so long as the Transfer was registered after receipt of the related Transfer Affidavit, Transferor Certificate and either the Rule 144A Letter or the Investment Letter.  The Trust Administrator shall be entitled but not obligated to recover from any Holder of a Residual Certificate that was in fact not a Permitted Transferee at the time it became a Holder or, at such subsequent time as it became other than a Permitted Transferee, all payments made on such Residual Certificate at and after either such time.  Any such payments so recovered by the Trust Administrator shall be paid and delivered by the Trust Administrator to the last preceding Permitted Transferee of such Certificate.

(v)

The Depositor shall use its best efforts to make available, upon receipt of written request from the Trust Administrator, all information necessary to compute any tax imposed under Section 860E(e) of the Code as a result of a Transfer of an Ownership Interest in a Residual Certificate to any Holder who is not a Permitted Transferee described in clauses (i) through (iv) of the definition thereof.

The restrictions on Transfers of a Residual Certificate set forth in this Section 5.02(c) shall cease to apply (and the applicable portions of the legend on a Residual Certificate may be deleted) with respect to Transfers occurring after delivery to the Trust Administrator of an Opinion of Counsel, which Opinion of Counsel shall not be an expense of the Trust Fund, the Trustee, the Loan Seller, the Transferors, the Master Servicer or the Trust Administrator, to the effect that the elimination of such restrictions will not cause a REMIC hereunder to fail to qualify as a REMIC at any time that the Certificates are outstanding or result in the imposition of any tax on the Trust Fund, a Certificateholder or another Person.  Each Person holding or acquiring any Ownership Interest in a Residual Certificate hereby consents to any amendment of this Agreement which, based on an Opinion of Counsel furnished to the Trust Administrator, is reasonably necessary (a) to ensure that the record ownership of, or any beneficial interest in, a Residual Certificate is not transferred, directly or indirectly, to a Person that is not a Permitted Transferee and (b) to provide for a means to compel the Transfer of a Residual Certificate which is held by a Person that is not a Permitted Transferee to a Holder that is a Permitted Transferee.

EXHIBIT J

FORM OF TRANSFEROR CERTIFICATE

_____________________

Date

Mortgage Asset Securitization Transactions, Inc.

1285 Avenue of the Americas

New York, New York 10019

Wells Fargo Bank, N.A., as trust administrator

Sixth Street and Marquette Avenue 

Minneapolis, Minnesota  55479

Attention:

Re:

Mortgage Asset Securitization Transactions, Inc., MASTR Adjustable Rate Mortgages Trust 2006-OA1, Mortgage Pass-Through Certificates, Series 2006-OA1, Class R[-_]

Ladies and Gentlemen:

In connection with our disposition of the above Certificates we certify that (a) we have not offered or sold any Certificates to, or solicited offers to buy any Certificates from, any person, or otherwise approached or negotiated with any person with respect thereto, in a manner that would be deemed, or taken any other action which would result in, a violation of Section 5 of the Securities Act of 1933, as amended and (b) to the extent we are disposing of a Class R[-_] Certificate, (i) we have no knowledge the Transferee is not a Permitted Transferee, (ii) after conducting a reasonable investigation of the financial condition of the Transferee, we have no reason to believe that the Transferee will not pay taxes with respect to the Class R[-_] Certificate when due, and (iii) we have no reason to believe that the statements made in paragraphs 7, 10 and 11 of the Transferee’s Transfer Affidavit are false.

Very truly yours,

Print Name of Transferor

By:

Authorized Officer

EXHIBIT K

FORM OF INVESTMENT LETTER (NON-RULE 144A)

_____________________

Date

Mortgage Asset Securitization Transactions, Inc.

1285 Avenue of the Americas

New York, New York 10019

Wells Fargo Bank, N.A., as trust administrator

Sixth Street and Marquette Avenue 

Minneapolis, Minnesota 55479

Attention: 

Re:

Mortgage Asset Securitization Transactions, Inc., MASTR Adjustable Rate Mortgages Trust 2006-OA1, Mortgage Pass-Through Certificates, Series 2006-OA1, Class [__________]

Ladies and Gentlemen:

In connection with our acquisition of the above Certificates we certify that (a) we understand that the Certificates are not being registered under the Securities Act of 1933, as amended (the “Act”), or any state securities laws and are being transferred to us in a transaction that is exempt from the registration requirements of the Act and any such laws, (b) we are an “accredited investor,” as defined in Regulation D under the Act, and have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of investments in the Certificates, (c) we have had the opportunity to ask questions of and receive answers from the Depositor concerning the purchase of the Certificates and all matters relating thereto or any additional information deemed necessary to our decision to purchase the Certificates, (d) in the case of an ERISA-Restricted Certificate, either (i) we are not an employee benefit plan or other retirement arrangement subject to Section 406 of ERISA and/or Section 4975 of the Code, or a person acting for, on behalf of or with the assets of, any such plan or arrangement, (ii) in the case of an ERISA-Restricted Certificate which is the subject of an ERISA Qualifying Underwriting, if we are an insurance company, we are an insurance company that is purchasing such Certificates with funds contained in an “insurance company general account” (as such term is defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”)) and the purchase and holding of such Certificates are covered under Sections I and III of PTCE 95-60 or (iii) we have provided the Trust Administrator with a satisfactory Opinion of Counsel as required in the Agreement to the effect that the purchase or holding of such ERISA-Restricted Certificate will not result in prohibited transactions under Section 406 of ERISA and/or Section 4975 of the Code and will not subject the Trustee, the Transferor, the Depositor, the Master Servicer or the Trust Administrator to any obligation in addition to those undertaken in the Agreement, (e) in the case of an ERISA-Restricted Cap Certificate prior to the termination of the Cap Agreement, either (i) the Investor is neither a Plan nor a person acting on behalf of any such Plan or using the assets of any such Plan to effect such transfer or (ii) the acquisition and holding of the ERISA-Restricted Cap Certificate are eligible for exemptive relief under PTCE 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE 96-23, (f) we are acquiring the Certificates for investment for our own account and not with a view to any distribution of such Certificates (but without prejudice to our right at all times to sell or otherwise dispose of the Certificates in accordance with clause (h) below), (f) we are acquiring the Certificates for investment for our own account and not with a view to any distribution of such Certificates (but without prejudice to our right at all times to sell or otherwise dispose of the Certificates in accordance with clause (h) below), (g) we have not offered or sold any Certificates to, or solicited offers to buy any Certificates from, any person, or otherwise approached or negotiated with any person with respect thereto, or taken any other action which would result in a violation of Section 5 of the Act, and (h) we will not sell, transfer or otherwise dispose of any Certificates unless (1) such sale, transfer or other disposition is made pursuant to an effective registration statement under the Act or is exempt from such registration requirements, and if requested, we will at our expense provide an opinion of counsel satisfactory to the addressees of this Certificate that such sale, transfer or other disposition may be made pursuant to an exemption from the Act, (2) the purchaser or transferee of such Certificate has executed and delivered to you a certificate to substantially the same effect as this certificate, and (3) the purchaser or transferee has otherwise complied with any conditions for transfer set forth in the Pooling and Servicing Agreement.

Very truly yours,

Print Name of Transferor

By:

Authorized Officer

EXHIBIT L

FORM OF RULE 144A LETTER

_____________________

Date

Mortgage Asset Securitization Transactions, Inc.

1285 Avenue of the Americas

New York, New York 10019  

Wells Fargo Bank, N.A., as trust administrator

Sixth Street and Marquette Avenue 

Minneapolis, Minnesota 55479

Attention: 

Re:

Mortgage Asset Securitization Transactions, Inc., MASTR Adjustable Rate Mortgages Trust 2006-OA1, Mortgage Pass-Through Certificates, Series 2006-OA1, Class [_______________]

Ladies and Gentlemen:

In connection with our acquisition of the above Certificates we certify that (a) we understand that the Certificates are not being registered under the Securities Act of 1933, as amended (the “Act”), or any state securities laws and are being transferred to us in a transaction that is exempt from the registration requirements of the Act and any such laws, (b) we have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of investments in the Certificates, (c) we have had the opportunity to ask questions of and receive answers from the Depositor concerning the purchase of the Certificates and all matters relating thereto or any additional information deemed necessary to our decision to purchase the Certificates, (d) in the case of an ERISA-Restricted Certificate, either (i) we are not an employee benefit plan or other retirement arrangement subject to Section 406 of ERISA and/or Section 4975 of the Code, or a person acting for, on behalf of or with the assets of, any such plan or arrangement, (ii) in the case of an ERISA-Restricted Certificate which is the subject of an ERISA Qualifying Underwriting, if we are an insurance company, we are an insurance company that is purchasing such Certificates with funds contained in an “insurance company general account” (as such term is defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”)) and that the purchase and holding of such Certificates are covered under Sections I and III of PTCE 95-60 or (iii) we have provided the Trust Administrator with a satisfactory Opinion of Counsel as required in the Agreement to the effect that the purchase or holding of such ERISA-Restricted Certificate will not result in prohibited transactions under Section 406 of ERISA and/or Section 4975 of the Code and will not subject the Trustee, the Transferor, the Depositor, the Master Servicer or the Trust Administrator to any obligation in addition to those undertaken in the Agreement, (e) in the case of an ERISA-Restricted Cap Certificate prior to the termination of the Cap Agreement, either (i) the Investor is neither a Plan nor a person acting on behalf of any such Plan or using the assets of any such Plan to effect such transfer or (ii) the acquisition and holding of the ERISA-Restricted Cap Certificate are eligible for exemptive relief under PTCE 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE 96-23, (f) we have not, nor has anyone acting on our behalf offered, transferred, pledged, sold or otherwise disposed of the Certificates, any interest in the Certificates or any other similar security to, or solicited any offer to buy or accept a transfer, pledge or other disposition of the Certificates, any interest in the Certificates or any other similar security from, or otherwise approached or negotiated with respect to the Certificates, any interest in the Certificates or any other similar security with, any person in any manner, or made any general solicitation by means of general advertising or in any other manner, or taken any other action, that would constitute a distribution of the Certificates under the Securities Act or that would render the disposition of the Certificates a violation of Section 5 of the Securities Act or require registration pursuant thereto, nor will act, nor has authorized or will authorize any person to act, in such manner with respect to the Certificates and (g) we are a “qualified institutional buyer” as that term is defined in Rule 144A under the Securities Act and have completed either of the forms of certification to that effect attached hereto as Annex 1 or Annex 2.  We are aware that the sale to us is being made in reliance on Rule 144A.  We are acquiring the Certificates for our own account or for resale pursuant to Rule 144A and further, understand that such Certificates may be resold, pledged or transferred only (i) to a person reasonably believed to be a qualified institutional buyer that purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A, or (ii) pursuant to another exemption from registration under the Securities Act.

ANNEX 1

to EXHIBIT L

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

(For Transferees Other Than Registered Investment Companies)

The undersigned (the “Buyer”) hereby certifies as follows to the parties listed in the Rule 144A Transferee Certificate to which this certification relates with respect to the Certificates described therein:

1.

As indicated below, the undersigned is the President, Chief Financial Officer, Senior Vice President or other executive officer of the Buyer.

2.

In connection with purchases by the Buyer, the Buyer is a “qualified institutional buyer” as that term is defined in Rule 144A under the Securities Act of 1933, as amended (“Rule 144A”) because (i) the Buyer owned and/or invested on a discretionary basis either at least $100,000 in securities or, if Buyer is a dealer, Buyer must own and/or invest on a discretionary basis at least $10,000,000 in securities (except for the excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year (such amount being calculated in accordance with Rule 144A and (ii) the Buyer satisfies the criteria in the category marked below.

·

Corporation, etc.  The Buyer is a corporation (other than a bank, savings and loan association or similar institution), Massachusetts or similar business trust, partnership, or charitable organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

·

Bank.  The Buyer (a) is a national bank or banking institution organized under the laws of any State, territory or the District of Columbia, the business of which is substantially confined to banking and is supervised by 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.

·

Savings and Loan.  The Buyer (a) is a savings and loan association, building and loan association, cooperative bank, homestead association or similar institution, which is supervised and examined by a State or Federal authority having supervision over 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 Buyer is a dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934.

·

Insurance Company.  The Buyer is an insurance company whose primary and predominant business activity is the writing of insurance or the reinsuring of risks underwritten by insurance companies and which is subject to supervision by the insurance commissioner or a similar official or agency of a State, territory or the District of Columbia.

·

State or Local Plan.  The Buyer is a plan established and maintained by a State, its political subdivisions, or any agency or instrumentality of the State or its political subdivisions, for the benefit of its employees.

·

ERISA Plan.  The Buyer is an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974.

·

Investment Advisor.  The Buyer is an investment advisor registered under the Investment Advisors Act of 1940.

·

Small Business Investment Company.  Buyer is a small business investment company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958.

·

Business Development Company.  Buyer is a business development company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940.

3.

The term “securities” as used herein does not include (i) securities of issuers that are affiliated with the Buyer, (ii) securities that are part of an unsold allotment to or subscription by the Buyer, if the Buyer is a dealer, (iii) securities issued or guaranteed by the U.S. or any instrumentality thereof, (iv) bank deposit notes and certificates of deposit, (v) loan participations, (vi) repurchase agreements, (vii) securities owned but subject to a repurchase agreement and (viii) currency, interest rate and commodity swaps.

4.

For purposes of determining the aggregate amount of securities owned and/or invested on a discretionary basis by the Buyer, the Buyer used the cost of such securities to the Buyer and did not include any of the securities referred to in the preceding paragraph, except (i) where the Buyer reports its securities holdings in its financial statements on the basis of their market value, and (ii) no current information with respect to the cost of those securities has been published.  If clause (ii) in the preceding sentence applies, the securities may be valued at market.  Further, in determining such aggregate amount, the Buyer may have included securities owned by subsidiaries of the Buyer, but only if such subsidiaries are consolidated with the Buyer in its financial statements prepared in accordance with generally accepted accounting principles and if the investments of such subsidiaries are managed under the Buyer’s direction.  However, such securities were not included if the Buyer is a majority-owned, consolidated subsidiary of another enterprise and the Buyer is not itself a reporting company under the Securities Exchange Act of 1934, as amended.

5.

The Buyer acknowledges that it is familiar with Rule 144A and understands that the seller to it and other parties related to the Certificates are relying and will continue to rely on the statements made herein because one or more sales to the Buyer may be in reliance on Rule 144A.

6.

Until the date of purchase of the Rule 144A Securities, the Buyer will notify each of the parties to which this certification is made of any changes in the information and conclusions herein.  Until such notice is given, the Buyer’s purchase of the Certificates will constitute a reaffirmation of this certification as of the date of such purchase.  In addition, if the Buyer is a bank or savings and loan is provided above, the Buyer agrees that it will furnish to such parties updated annual financial statements promptly after they become available.

Print Name of Buyer

By:

Name:

Title:

Date:

ANNEX 2

to EXHIBIT L

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

(For Transferees That are Registered Investment Companies)

The undersigned (the “Buyer”) hereby certifies as follows to the parties listed in the Rule 144A Transferee Certificate to which this certification relates with respect to the Certificates described therein:

1.

As indicated below, the undersigned is the President, Chief Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a “qualified institutional buyer” as that term is defined in Rule 144A under the Securities Act of 1933, as amended (“Rule 144A”), because Buyer is part of a Family of Investment Companies (as defined below), is such an officer of the Adviser.

2.

In connection with purchases by Buyer, the Buyer is a “qualified institutional buyer” as defined in SEC Rule 144A because (i) the Buyer is an investment company registered under the Investment Company Act of 1940, as amended and (ii) as marked below, the Buyer alone, or the Buyer’s Family of Investment Companies, owned at least $100,000,000 in securities (other than the excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year.  For purposes of determining the amount of securities owned by the Buyer or the Buyer’s Family of Investment Companies, the cost of such securities was used, except (i) where the Buyer or the Buyer’s Family of Investment Companies reports its securities holdings in its financial statements on the basis of their market value, and (ii) no current information with respect to the cost of those securities has been published.  If clause (ii) in the preceding sentence applies, the securities may be valued at market.

___ The Buyer owned $_______ in securities (other than the excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).

___ The Buyer is part of a Family of Investment Companies which owned in the aggregate $_______ in securities (other than the excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).

3.

The term “Family of Investment Companies” as used herein means two or more registered investment companies (or series thereof) that have the same investment adviser or investment advisers that are affiliated (by virtue of being majority owned subsidiaries of the same parent or because one investment adviser is a majority owned subsidiary of the other).

4.

The term “securities” as used herein does not include (i) securities of issuers that are affiliated with the Buyer or are part of the Buyer’s Family of Investment Companies, (ii) securities issued or guaranteed by the U.S. or any instrumentality thereof, (iii) bank deposit notes and certificates of deposit, (iv) loan participations, (v) repurchase agreements, (vi) securities owned but subject to a repurchase agreement and (vii) currency, interest rate and commodity swaps.

5.

The Buyer is familiar with Rule 144A and understands that the parties listed in the Rule 144A Transferee Certificate to which this certification relates are relying and will continue to rely on the statements made herein because one or more sales to the Buyer will be in reliance on Rule 144A.  In addition, the Buyer will only purchase for the Buyer’s own account.

6.

Until the date of purchase of the Certificates, the undersigned will notify the parties listed in the Rule 144A Transferee Certificate to which this certification relates of any changes in the information and conclusions herein.  Until such notice is given, the Buyer’s purchase of the Certificates will constitute a reaffirmation of this certification by the undersigned as of the date of such purchase.

Print Name of Buyer or Adviser

By:

Name:

Title:

IF AN ADVISER:

Print Name of Buyer

Date:

EXHIBIT M

FORM OF REQUEST FOR RELEASE OF DOCUMENTS

To:

Wells Fargo Bank, N.A.

1015 10th Avenue S.E.

Minneapolis, MN  55414-0031

Attn:   Inventory Control—MARM 2006-OA1

Re:

Pooling and Servicing Agreement, dated as of March 1, 2006, by and among Mortgage Asset Securitization Transactions, Inc., as depositor, UBS Real Estate Securities Inc., as transferor, Wells Fargo Bank, N.A., as master servicer, as trust administrator and as custodian, U.S. Bank National Association, as trustee, and Clayton Fixed Income Services, Inc f/k/a the Murray Hill Company, as Credit Risk Manager.

In connection with the administration of the related Mortgage Loans held by you as Custodian pursuant to the above-captioned Pooling and Servicing Agreement, we request the release, and hereby acknowledge receipt, of the Mortgage File for the Mortgage Loan described below, for the reason indicated.  If such Mortgage Loan is being repurchased, we hereby certify that the Purchase Price for such Mortgage Loan has been paid.

Mortgage Loan Number:

Mortgagor Name, Address & Zip Code:

Reason for Requesting Documents (check one):

_______

1.

Mortgage Paid in Full

_______

2.

Foreclosure

_______

3.  

Substitution

_______

4.

Other Liquidation (Repurchases, etc.)

_______

5.

Nonliquidation

Reason:____________________________________

Address to which Custodian should

Deliver the Mortgage File:

__________________________________________

__________________________________________

__________________________________________

By:_______________________________________

            (authorized signer)

Issuer:_____________________________________

Address:___________________________________

  ___________________________________

Date:______________________________________

Custodian

Wells Fargo Bank, N.A.

 

Please acknowledge the execution of the above request by your signature and date below:

____________________________________

_________________

Signature

Date

Documents returned to Custodian:

____________________________________

_________________

Custodian

Date

EXHIBIT N

FORM OF SARBANES-OXLEY CERTIFICATION

Re:

The [

] agreement dated as of [

l, 200[ ] (the “Agreement”), among [IDENTIFY PARTIES]

I, ____________________________, the _______________________ of [NAME OF COMPANY] (the “Company”), certify to [the Purchaser], [the Depositor], and the [Master Servicer] [Trust Administrator][Trustee], and their officers, with the knowledge and intent that they will rely upon this certification, that:

a.

I have reviewed the servicer compliance statement of the Company provided in accordance with Item 1123 of Regulation AB (the “Compliance Statement”), the report on assessment of the Company’s compliance with the servicing criteria set forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided in accordance with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Item 1122 of Regulation AB (the “Servicing Assessment”), the registered public accounting firm’s attestation report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange Act and Section 1122(b) of Regulation AB (the “Attestation Report”), and all servicing reports, officer’s certificates and other information relating to the servicing of the Mortgage Loans by the Company during 200[ ] that were delivered by the Company to the [Depositor] [Master Servicer] [Trust Administrator] [Trustee] pursuant to the Agreement (collectively, the “Company Servicing Information”);

b.

Based on my knowledge, the Company Servicing Information, taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in the light of the circumstances under which such statements were made, not misleading with respect to the period of time covered by the Company Servicing Information;

c.

Based on my knowledge, all of the Company Servicing Information required to be provided by the Company under the Agreement has been provided to the [Depositor] [Master Servicer] [Trust Administrator] [Trustee];

d.

I am responsible for reviewing the activities performed by the Company as servicer under the Agreement, and based on my knowledge and the compliance review conducted in preparing the Compliance Statement and except as disclosed in the Compliance Statement, the Servicing Assessment or the Attestation Report, the Company has fulfilled its obligations under the Agreement in all material respects; and

e.

The Compliance Statement required to be delivered by the Company pursuant to this Agreement, and the Servicing Assessment and Attestation Report required to be provided by the Company and by any Subservicer and Subcontractor pursuant to the Agreement, have been provided to the [Depositor] [Master Servicer].  Any material instances of noncompliance described in such reports have been disclosed to the [Depositor] [Master Servicer]. Any material instance of noncompliance with the Servicing Criteria has been disclosed in such reports.

	 	Date:  _________________________

	 	 
	 	 
	 	By:

_______________________________

	 	Name:

	 	Title:

	 	 

EXHIBIT O

FORM OF CAP CONTRACT

EXHIBIT P

[RESERVED]

EXHIBIT Q

FORM OF ASSESSMENT OF COMPLIANCE

[Name of Trust] (the “Trust”)

Mortgage Pass-Through Certificates

Series 20[__]-[__]

I, [name of certifying individual], a duly elected and acting officer of [__________________________] (the “Assessing Party”), certify pursuant to Section 3.22 of the Pooling and Servicing Agreement to the Depositor, [the Trust Administrator] and each Person, if any, who “controls” the Depositor [or the Trust Administrator] within the meaning of the Securities Act of 1933, as amended, and their respective officers and directors, with respect to the calendar year immediately preceding the date of this Certificate (the “Relevant Year”), as follows:

1.

I am responsible for assessing compliance with the Servicing Criteria applicable to the Assessing Party during the Relevant Year. For purposes of this assessment, I have used the Servicing Criteria as set for in Item 1122 of Regulation AB.

2.

Based on my knowledge, the Assessing Party was in compliance with the Servicing Criteria applicable to the Assessing Party during the Relevant Year other than [state any material instance of noncompliance with respect thereto during such period].  This assessment is based on the activities the Assessing Party performs with respect to asset-backed securities transactions taken as a whole involving the Assessing Party, that are backed by the same asset type as the related Loans serviced by it.

3.

Based on the activities the Assessing Party performs with respect to asset-backed securities transactions taken as a whole involving the Assessing Party, that are backed by the same asset type as the related Mortgage Loans serviced by it, the following Servicing Criteria are not applicable to the Assessing Party: [____________]. 

4.

A registered public accounting firm has issued an attestation report on the Assessing Party’s assessment of compliance for the period consisting of Relevant Year.

Capitalized terms used but not defined herein have the meanings assigned in the pooling and servicing agreement dated as of March 1, 2006 (the “Pooling and Servicing Agreement”) among Mortgage Asset Securitization Transactions, Inc., as depositor, UBS Real Estate Securities Inc., as transferor, Wells Fargo Bank, N.A., as master servicer, trust administrator, and as custodian, U.S. Bank National Association, as trustee, and Clayton Fixed Income Services, Inc f/k/a the Murray Hill Company, as Credit Risk Manager.  

[__________________], 

as Assessing Party

By: 

[Name]

[Title]

[Date]

EXHIBIT R

[RESERVED]

EXHIBIT S

ADDITIONAL DISCLOSURE NOTIFICATION*

[Wells Fargo Bank, N.A., as Trust Administrator

Old Annapolis Road

Columbia, Maryland 21045

Attn:  Corporate Trust Services-  MASTR ADJUSTABLE RATE MORTGAGES TRUST 2006-OA1—SEC REPORT PROCESSING]

[Mortgage Asset Securitization Transactions, Inc.

1285 Avenue of the Americas

New York, NY 10019]

RE:  Additional Form [10-D][10-K][8-K] Disclosure Required

Ladies and Gentlemen:

In accordance with Section [ ] of the Pooling and Servicing Agreement, dated as of February 1, 2006, among Mortgage Asset Securitization Transactions, Inc., as Depositor, UBS Real Estate Securities Inc., as Transferor, Wells Fargo Bank N.A., as Master Servicer, Trust Administrator and Custodian, U.S. Bank National Association, as Trustee, and Clayton Fixed Income Services, Inc f/k/a the Murray Hill Company, as Credit Risk Manager, the undersigned, as [          ], hereby notifies you that certain events have come to our attention that [will] [may] need to be disclosed on Form [10-D][10-K][8-K].

Description of Additional Form [10-D][10-K][8-K] Disclosure:

List of any Attachments hereto to be included in the Additional Form [10-D][10-K][8-K] Disclosure:

Any inquiries related to this notification should be directed to [                       ], phone number:  [         ]; email address:  [                   ].  

[NAME OF PARTY],

as [role]

By: 

Name:

Title:

*  To be sent via email to cts.sec.notifications@wellsfargo.com and by facsimile to 410-715-2380 in addition to overnight mail to the address above.

EXHIBIT T

Additional Form 10-D Disclosure

	ADDITIONAL FORM 10-D DISCLOSURE

	Item on Form 10-D

	Party Responsible 

	Item 1: Distribution and Pool Performance Information

	 
	Information included in the [Monthly Statement]

	Master Servicer

Servicer

Trust Administrator

	Any information required by 1121 which is NOT included on the [Monthly Statement]

	Depositor

	Item 2: Legal Proceedings

Any legal proceeding pending against the following entities or their respective property, that is material to Certificateholders, including any proceeding known to be contemplated by governmental authorities:

	 
	▪ Issuing Entity (Trust Fund)

	Trustee, Master Servicer, Trust Administrator and Depositor

	▪ Sponsor (Seller)

	Seller (if a party to the Pooling and Servicing Agreement) or Depositor

	▪ Depositor

	Depositor

	▪ Trustee

	Trustee

	▪ Trust Administrator

	Trust Administrator

	▪ Master Servicer

	Master Servicer

	▪ Custodian

	Custodian

	▪ 1110(b) Originator

	Depositor

	▪ Any 1108(a)(2) Servicer (other than the Master Servicer or Trust Administrator)

	Servicer

	▪ Any other party contemplated by 1100(d)(1)

	Depositor

	Item 3:  Sale of Securities and Use of Proceeds

Information from Item 2(a) of Part II of Form 10-Q:

With respect to any sale of securities by the sponsor, depositor or issuing entity, that are backed by the same asset pool or are otherwise issued by the issuing entity, whether or not registered, provide the sales and use of proceeds information in Item 701 of Regulation S-K.  Pricing information can be omitted if securities were not registered.

	Depositor

	

Item 4:  Defaults Upon Senior Securities

Information from Item 3 of Part II of Form 10-Q:

Report the occurrence of any Event of Default (after expiration of any grace period and provision of any required notice)

	

Trust Administrator

Trustee

	Item 5:  Submission of Matters to a Vote of Security Holders

Information from Item 4 of Part II of Form 10-Q

	Trust Administrator

Trustee

	Item 6:  Significant Obligors of Pool Assets

Item 1112(b) – Significant Obligor Financial Information*

	Depositor

	*This information need only be reported on the Form 10-D for the distribution period in which updated information is required pursuant to the Item.

	 
	Item 7:  Significant Enhancement Provider Information

Item 1114(b)(2) – Credit Enhancement Provider Financial Information*

	 
	▪ Determining applicable disclosure threshold

	Depositor

	▪ Requesting required financial information (including any required accountants’ consent to the use thereof) or effecting incorporation by reference

	Depositor

	Item 1115(b) – Derivative Counterparty Financial Information*

	 
	▪ Determining current maximum probable exposure

	Depositor

	▪ Determining current significance percentage

	Depositor

	▪ Requesting required financial information (including any required accountants’ consent to the use thereof) or effecting incorporation by reference

	Depositor

	*This information need only be reported on the Form 10-D for the distribution period in which updated information is required pursuant to the Items.

	 
	

Item 8:  Other Information

Disclose any information required to be reported on Form 8-K during the period covered by the Form 10-D but not reported

	

Any party responsible for the applicable Form 8-K Disclosure item

	Item 9:  Exhibits

	 
	Monthly Statement to Certificateholders

	Trust Administrator

	Exhibits required by Item 601 of Regulation S-K, such as material agreements

	Depositor

EXHIBIT U

Additional Form 10-K Disclosure

	ADDITIONAL FORM 10-K DISCLOSURE

	Item on Form 10-K

	Party Responsible 

	Item 1B: Unresolved Staff Comments

	Depositor

	Item 9B:  Other Information

Disclose any information required to be reported on Form 8-K during the fourth quarter covered by the Form 10-K but not reported

	Any party responsible for disclosure items on Form 8-K

	Item 15:  Exhibits, Financial Statement Schedules

	Trust Administrator

Depositor

	Reg AB Item 1112(b):  Significant Obligors of Pool Assets

	 
	Significant Obligor Financial Information*

	Depositor

	*This information need only be reported on the Form 10-K if updated information is required pursuant to the Item.

	 
	Reg AB Item 1114(b)(2):  Credit Enhancement Provider Financial Information

	 
	▪ Determining applicable disclosure threshold

	Depositor

	▪ Requesting required financial information (including any required accountants’ consent to the use thereof) or effecting incorporation by reference

	Depositor

	*This information need only be reported on the Form 10-K if updated information is required pursuant to the Item.

	 
	Reg AB Item 1115(b):  Derivative Counterparty Financial Information

	 
	▪ Determining current maximum probable exposure

	Depositor

	▪ Determining current significance percentage

	Depositor

	▪ Requesting required financial information (including any required accountants’ consent to the use thereof) or effecting incorporation by reference

	Depositor

	*This information need only be reported on the Form 10-K if updated information is required pursuant to the Item.

	 
	Reg AB Item 1117: Legal Proceedings

Any legal proceeding pending against the following entities or their respective property, that is material to Certificateholders, including any proceeding known to be contemplated by governmental authorities:

	 
	▪ Issuing Entity (Trust Fund)

	Trustee, Master Servicer, Trust Administrator and Depositor

	▪ Sponsor (Seller)

	Seller (if a party to the Pooling and Servicing Agreement) or Depositor

	▪ Depositor

	Depositor

	▪ Trustee

	Trustee

	▪ Trust Administrator

	Trust Administrator

	▪ Master Servicer

	Master Servicer

	▪ Custodian

	Custodian

	▪ 1110(b) Originator

	Depositor

	▪ Any 1108(a)(2) Servicer (other than the Master Servicer or Trust Administrator)

	Servicer

	▪ Any other party contemplated by 1100(d)(1)

	Depositor

	Reg AB Item 1119:  Affiliations and Relationships

	 
	Whether (a) the Sponsor (Seller), Depositor or Issuing Entity is an affiliate of the following parties, and (b) to the extent known and material, any of the following parties are affiliated with one another:

	Depositor as to (a) 

Sponsor/Seller as to (a)

	▪ Master Servicer

	Master Servicer 

	▪ Trust Administrator

	Trust Administrator

	▪ Trustee

	Trustee

	▪ Any other 1108(a)(3) servicer

	Servicer

	▪ Any 1110 Originator

	Depositor/Sponsor

	▪ Any 1112(b) Significant Obligor

	Depositor/Sponsor

	▪ Any 1114 Credit Enhancement Provider

	Depositor/Sponsor

	▪ Any 1115 Derivate Counterparty Provider

	Depositor/Sponsor

	▪ Any other 1101(d)(1) material party

	Depositor/Sponsor

	Whether there are any “outside the ordinary course business arrangements” other than would be obtained in an arm’s length transaction between (a) the Sponsor (Seller), Depositor or Issuing Entity on the one hand, and (b) any of the following parties (or their affiliates) on the other hand, that exist currently or within the past two years and that are material to a Certificateholder’s understanding of the Certificates:

	Depositor as to (a) 

Sponsor/Seller as to (a)

	▪ Master Servicer

	Master Servicer 

	▪ Trust Administrator

	Trust Administrator

	▪ Trustee

	Trustee

	▪ Any other 1108(a)(3) servicer

	Servicer

	▪ Any 1110 Originator

	Depositor/Sponsor

	▪ Any 1112(b) Significant Obligor

	Depositor/Sponsor

	▪ Any 1114 Credit Enhancement Provider

	Depositor/Sponsor

	▪ Any 1115 Derivate Counterparty Provider

	Depositor/Sponsor

	▪ Any other 1101(d)(1) material party

	Depositor/Sponsor

	Whether there are any specific relationships involving the transaction or the pool assets between (a) the Sponsor (Seller), Depositor or Issuing Entity on the one hand, and (b) any of the following parties (or their affiliates) on the other hand, that exist currently or within the past two years and that are material:

	Depositor as to (a) 

Sponsor/Seller as to (a)

	▪ Master Servicer

	Master Servicer 

	▪ Trust Administrator

	Trust Administrator

	▪ Trustee

	Trustee

	▪ Any other 1108(a)(3) servicer

	Servicer

	▪ Any 1110 Originator

	Depositor/Sponsor

	▪ Any 1112(b) Significant Obligor

	Depositor/Sponsor

	▪ Any 1114 Credit Enhancement Provider

	Depositor/Sponsor

	▪ Any 1115 Derivate Counterparty Provider

	Depositor/Sponsor

	▪ Any other 1101(d)(1) material party

	Depositor/Sponsor

EXHIBIT V

Form 8-K Disclosure Information

	FORM 8-K DISCLOSURE INFORMATION

	Item on Form 8-K

	Party Responsible 

	Item 1.01- Entry into a Material Definitive Agreement

Disclosure is required regarding entry into or amendment of any definitive agreement that is material to the securitization, even if depositor is not a party.  

Examples: servicing agreement, custodial agreement.

Note: disclosure not required as to definitive agreements that are fully disclosed in the prospectus

	All parties with respect to any agreement entered into by such party

	Item 1.02- Termination of a Material Definitive Agreement

Disclosure is required regarding termination of  any definitive agreement that is material to the securitization (other than expiration in accordance with its terms), even if depositor is not a party.  

Examples: servicing agreement, custodial agreement.

	All parties with respect to any agreement entered into by such party

	Item 1.03- Bankruptcy or Receivership

Disclosure is required regarding the bankruptcy or receivership, with respect to any of the following: 

	Depositor

	▪ Sponsor (Seller)

	Depositor/Sponsor (Seller)

	▪ Depositor

	Depositor

	▪ Master Servicer

	Master Servicer

	▪ Affiliated Servicer

	Servicer

	▪ Other Servicer servicing 20% or more of the pool assets at the time of the report

	Servicer

	▪ Other material servicers

	Servicer

	▪ Trustee

	Trustee

	▪ Trust Administrator

	Trust Administrator

	▪ Significant Obligor

	Depositor

	▪ Credit Enhancer (10% or more)

	Depositor

	▪ Derivative Counterparty

	Depositor

	▪ Custodian

	Custodian

	Item 2.04- Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement

Includes an early amortization, performance trigger or other event, including event of default, that would materially alter the payment priority/distribution of cash flows/amortization schedule.

Disclosure will be made of events other than waterfall triggers which are disclosed in the monthly statements to the certificateholders.

	Depositor

Master Servicer

Trust Administrator

	Item 3.03- Material Modification to Rights of Security Holders

Disclosure is required of any material modification to document defining the rights of Certificateholders, including the Pooling and Servicing Agreement.

	Trust Administrator/Trustee/Depositor (with respect to each, only to the extent it is a party to any such documents)

	Item 5.03- Amendments of Articles of Incorporation or Bylaws; Change of Fiscal Year

Disclosure is required of any amendment “to the governing documents of the issuing entity”.

	Depositor

	Item 6.01- ABS Informational and Computational Material

	Depositor

	Item 6.02- Change of Servicer or Trust Administrator

Requires disclosure of any removal, replacement, substitution or addition of any master servicer, affiliated servicer, other servicer servicing 10% or more of pool assets at time of report, other material servicers or trustee.

	Master Servicer/Trust Administrator/Depositor/

Servicer

Trustee (as to itself or the Master Servicer)

	Reg AB disclosure about any new servicer or master servicer is also required.

	Servicer/Master Servicer/Depositor

	Reg AB disclosure about any new Trustee is also required.

	Trustee

	Item 6.03- Change in Credit Enhancement or External Support

Covers termination of any enhancement in manner other than by its terms, the addition of an enhancement, or a material change in the enhancement provided.  Applies to external credit enhancements as well as derivatives.  

	Depositor/Trust Administrator

	Reg AB disclosure about any new enhancement provider is also required.

	Depositor

	Item 6.04- Failure to Make a Required Distribution

	Trust Administrator

	Item 6.05- Securities Act Updating Disclosure

If any material pool characteristic differs by 5% or more at the time of issuance of the securities from the description in the final prospectus, provide updated Reg AB disclosure about the actual asset pool.

	Depositor

	If there are any new servicers or originators required to be disclosed under Regulation AB as a result of the foregoing, provide the information called for in Items 1108 and 1110 respectively.

	Depositor

	Item 7.01- Reg FD Disclosure

	All parties as to material nonpublic information disclosed by such party

	Item 8.01- Other Events

Any event, with respect to which information is not otherwise called for in Form 8-K, that the registrant deems of importance to certificateholders.

	Depositor

	Item 9.01- Financial Statements and Exhibits

	Responsible party for reporting/disclosing the financial statement or exhibit

EXHIBIT W

[RESERVED]

Exhibit X

Assessments of Compliance and Attestation Reports Servicing Criteria1

	Reg. AB Item 1122(d) Servicing Criteria

	Wells Fargo Bank, N.A.

	General Servicing Considerations

	 
	monitoring performance or other triggers and events of default

	X

	monitoring performance of vendors of activities outsourced

	X

	maintenance of back-up servicer for pool assets

	 
	fidelity bond and E&O policies in effect

	X

	Cash Collection and Administration

	 
	timing of deposits to custodial account

	X

	wire transfers to investors by authorized personnel

	X

	advances or guarantees made, reviewed and approved as required

	X

	accounts maintained as required

	X

	accounts at federally insured depository institutions

	X

	unissued checks safeguarded

	X

	monthly reconciliations of accounts

	X

	Investor Remittances and Reporting

	 
	investor reports

	X

	remittances

	X

	proper posting of distributions

	X

	reconciliation of remittances and payment statements

	X

	Pool Asset Administration

	 
	maintenance of pool collateral

	X

	safeguarding of pool assets/documents

	X

	additions, removals and substitutions of pool assets

	 
	posting and allocation of pool asset payments to pool assets

	 
	reconciliation of servicer records

	 
	modifications or other changes to terms of pool assets

	 
	loss mitigation and recovery actions

	 
	records regarding collection efforts

	 
	adjustments to variable interest rates on pool assets

	 
	matters relating to funds held in trust for obligors

	 
	payments made on behalf of obligors (such as for taxes or insurance)

	 
	late payment penalties with respect to payments made on behalf of obligors 

	 
	records with respect to payments made on behalf of obligors

	 
	recognition and recording of delinquencies, charge-offs and uncollectible accounts

	X

	maintenance of external credit enhancement or other support

	 

1 The descriptions of the Item 1122(d) servicing criteria use key words and phrases and are not verbatim recitations of the servicing criteria.  Refer to Regulation AB, Item 1122(d) for a full description of servicing criteria.

Assessments of Compliance and Attestation Reports Servicing Criteria*

	Reg. AB Item 1122(d) Servicing Criteria

	Servicer

	Trustee

	Custodian/

Paying Agent/

Master Servicer/

Trust Administrator

	General Servicing Considerations

	 	 	 
	monitoring performance or other triggers and events of default

	X

	 	X

	monitoring performance of vendors of activities outsourced

	X

	 	X

	maintenance of back-up servicer for pool assets

	X

	 	 
	fidelity bond and E&O policies in effect

	X

	 	X

	Cash Collection and Administration

	 	 	 
	timing of deposits to custodial account

	X

	 	X

	wire transfers to investors by authorized personnel

	X

	 	X

	advances or guarantees made, reviewed and approved as required

	X

	 	X

	accounts maintained as required

	X

	 	X

	accounts at federally insured depository institutions

	X

	 	X

	unissued checks safeguarded

	X

	 	X

	monthly reconciliations of accounts

	X

	 	X

	Investor Remittances and Reporting

	 	 	 
	investor reports

	X

	 	X

	remittances

	X

	 	X

*

The descriptions of the Item 1122(d) servicing criteria use key words and phrases and are not verbatim recitations of the servicing criteria.  Refer to Regulation AB, Item 1122 for a full description of servicing criteria.

	Reg. AB Item 1122(d) Servicing Criteria

	Servicer

	Trustee

	Custodian/

Paying Agent/

Master Servicer/

Trust Administrator

	proper posting of distributions

	X

	 	X

	reconciliation of remittances and payment statements

	X

	 	X

	Pool Asset Administration

	 	 	 
	maintenance of pool collateral

	X

	 	X

	safeguarding of pool assets/documents

	X

	 	X

	additions, removals and substitutions of pool assets

	X

	 	 
	posting and allocation of pool asset payments to pool assets

	X

	 	 
	reconciliation of servicer records

	X

	 	 
	modifications or other changes to terms of pool assets

	X

	 	 
	loss mitigation and recovery actions

	X

	 	 
	records regarding collection efforts

	X

	 	 
	adjustments to variable interest rates on pool assets

	X

	 	 
	matters relating to funds held in trust for obligors

	X

	 	 
	payments made on behalf of obligors (such as for taxes or insurance)

	X

	 	 
	late payment penalties with respect to payments made on behalf of obligors 

	X

	 	 
	records with respect to payments made on behalf of obligors

	X

	 	 
	recognition and recording of delinquencies, charge-offs and uncollectible accounts

	X

	 	X

	maintenance of external credit enhancement or other support6-K

EXHIBIT 10.1  

TOP IMAGE SYSTEMS LTD.
AND ITS SUBSIDIARIES 

INTERIM CONSOLIDATED
FINANCIAL STATEMENTS 

AS OF JUNE 30, 2006 

U.S. DOLLARS IN
THOUSANDS 

UNAUDITED 

INDEX 

		Page

		
		
		
		
	Consolidated Balance Sheets	2 - 3 
	 
	Consolidated Statements of Operations 	4 
	 
	Statements of Changes in Shareholders' Equity 	5 
	 
	Consolidated Statements of Cash Flows 	6 - 7 
	 
	Notes to Consolidated Financial Statements 	8 - 12 

	TOP IMAGE SYSTEMS LTD.

AND ITS SUBSIDIARIES 
	  
	CONSOLIDATED BALANCE SHEETS 
	

	U.S. dollars in thousands 

		December 31,

2005
	June 30,

2006

			Unaudited

	 		
			
			
	    ASSETS	 	 	 		 	 		 
	 	 	 
	CURRENT ASSETS:	 	 
	  Cash and cash equivalents	 	 	$	  8,200	 	$	  7,219	 
	  Marketable securities	 	 	 	1,805	 	 	2,307	 
	  Trade receivables (net of allowance for doubtful accounts of $ 412 and

    $ 391 at December 31, 2005 and June 30, 2006, respectively)	 	 	 	6,802	 	 	7,770	 
	  Other accounts receivable and prepaid expenses	 	 	 	622	 	 	1,111	 
		
		
	
	 	 	 
	Total current assets	 	 	 	17,429	 	 	18,407	 
		
		
	
	 	 	 
	LONG-TERM ASSETS:	 	 
	  Severance pay fund	 	 	 	654	 	 	604	 
	  Long-term deposits	 	 	 	135	 	 	68	 
	  Property and equipment, net	 	 	 	577	 	 	557	 
	  Other intangible assets, net	 	 	 	1,100	 	 	950	 
	  Goodwill	 	 	 	465	 	 	465	 
		
		
	
	 	 	 
	Total long-term assets	 	 	 	2,931	 	 	2,644	 
		
		
	
	 	 	 
	Total assets	 	 	$	 20,360	 	$	 21,051	 
		
		
	

The accompanying notes are an
integral part of the consolidated financial statements. 

- 2 -

	TOP IMAGE SYSTEMS LTD.

AND ITS SUBSIDIARIES 
	  
	CONSOLIDATED BALANCE SHEETS 
	

	U.S. dollars in thousands (except share and per share data) 

		December 31,

2005
	June 30,

2006

			Unaudited

	 		
			
			
	    LIABILITIES AND SHAREHOLDERS' EQUITY	 	 	 		 	 		 
	 	 	 
	CURRENT LIABILITIES:	 	 
	  Short-term bank loans	 	 	$	   2,179	 	$	   1,988	 
	  Trade payables	 	 	 	900	 	 	446	 
	  Accrued expenses and other accounts payable	 	 	 	2,213	 	 	2,888	 
		
		
	
	 	 	 
	Total current liabilities	 	 	 	5,292	 	 	5,322	 
		
		
	
	 	 	 
	ACCRUED SEVERANCE PAY	 	 	 	850	 	 	919	 
		
		
	
	 	 	 
	SHAREHOLDERS' EQUITY:	 	 
	  Share capital -	 	 
	    Ordinary shares of NIS 0.04 par value -	 	 
	      Authorized: 125,000,000 shares at December 31, 2005 and June 30, 2006;	 	 
	      Issued and outstanding: 8,777,366 and 8,826,366 shares at December 31,	 	 
	      2005 and June 30, 2006, respectively	 	 	 	97	 	 	97	 
	  Additional paid-in capital	 	 	 	29,561	 	 	29,686	 
	  Accumulated deficit	 	 	 	(15,440	)	 	(14,973	)
		
		
	
	 	 	 
	Total shareholders' equity	 	 	 	14,218	 	 	14,810	 
		
		
	
	 	 	 
	Total liabilities and shareholders' equity	 	 	$	  20,360	 	$	  21,051	 
		
		
	

The accompanying notes are an integral
part of the consolidated financial statements. 

- 3 -

	TOP IMAGE SYSTEMS LTD.

AND ITS SUBSIDIARIES 
	  
	CONSOLIDATED STATEMENTS OF OPERATIONS 
	

	U.S. dollars in thousands (except share and per share data) 

		Year ended

December 31,

2005
	Six months ended

June 30,

		2005
	2006

			Unaudited

	 			
				
	Revenues:	 	 	 		 	 		 	 		 
	  Products	 	 	$	      9,888	 	$	      4,471	 	$	      5,875	 
	  Services	 	 	 	6,932	 	 	3,529	 	 	3,599	 
		
		
		
	
	 	 	 
	Total revenues	 	 	 	16,820	 	 	8,000	 	 	9,474	 
		
		
		
	
	 	 	 
	Cost of revenues:	 	 
	  Products	 	 	 	3,363	 	 	1,057	 	 	1,151	 
	  Services	 	 	 	3,400	 	 	2,230	 	 	2,444	 
		
		
		
	
	 	 	 
	Total cost of revenues	 	 	 	6,763	 	 	3,287	 	 	3,595	 
		
		
		
	
	 	 	 
	Gross profit	 	 	 	10,057	 	 	4,713	 	 	5,879	 
		
		
		
	
	 	 	 
	Operating costs and expenses:	 	 
	  Research and development	 	 	 	1,312	 	 	644	 	 	884	 
	  Selling and marketing	 	 	 	5,396	 	 	2,755	 	 	3,171	 
	  General and administrative	 	 	 	3,470	 	 	1,701	 	 	1,576	 
	  Liquidated damages related to September 2004 investment	 	 	 	164	 	 	164	 	 	-	 
		
		
		
	
	 	 	 
	Total operating costs and expenses	 	 	 	10,342	 	 	5,264	 	 	5,631	 
		
		
		
	
	 	 	 
	Operating income (loss)	 	 	 	(285	)	 	(551	)	 	248	 
	Financial income (expenses), net	 	 	 	(146	)	 	(141	)	 	227	 
		
		
		
	
	 	 	 
	Income (loss) before taxes on income	 	 	 	(431	)	 	(692	)	 	475	 
	Taxes on income	 	 	 	30	 	 	-	 	 	8	 
		
		
		
	
	 	 	 
	Net income (loss)	 	 	$	       (461	)	$	       (692	)	$	        467	 
		
		
		
	
	 	 	 
	Basic and diluted net earnings (loss) per share	 	 	$	      (0.05	)	$	      (0.08	)	$	       0.05	 
		
		
		
	
	 	 	 
	Weighted average number of shares used in the computation of basic	 	 
	  net earnings (loss) per share	 	 	 	8,764,222	 	 	8,755,169	 	 	8,806,714	 
		
		
		
	
	Weighted average number of shares used in the computation of diluted

  net earnings (loss) per share	 	 	 	8,764,222	 	 	8,755,169	 	 	8,993,278	 
		
		
		
	

The accompanying notes are an
integral part of the consolidated financial statements. 

- 4 -

	TOP IMAGE SYSTEMS LTD.

AND ITS SUBSIDIARIES 
	  
	STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY 
	

	U.S. dollars in thousands 

		Share

capital
	Additional

paid-in

capital
	Accumulated

other

comprehensive

loss
	Accumulated

deficit
	Comprehensive

income (loss)
	Total

	 						
							
							
							
	Balance at January 1, 2005	 	 	$	   97	 	$	  29,579	 	$	  (2	)	$	 (14,979	)	 	 	 	$	  14,695	 
	 	 	 
	Net unrealized gains on	 	 
	  available-for-sale securities	 	 	 	-	 	 	-	 	 	2	 	 	-	 	$	     2	 	 	2	 
	Net loss	 	 	 	-	 	 	-	 	 	-	 	 	(461	)	 	(461	)	 	(461	)
										
			
	Comprehensive loss	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	  (459	)	 	 	 
										
			
	Issuance expenses	 	 	 	-	 	 	(77	)	 	-	 	 	-	 	 	 	 	 	(77	)
	Exercise of stock options	 	 	 	*) -	 	 	15	 	 	-	 	 	-	 	 	 	 	 	15	 
	Employee stock-based

  compensation related to

  acceleration of vesting	 	 	 	-	 	 	44	 	 	-	 	 	-	 	 	 	 	 	44	 
		
		
		
		
				
	
	 	 	 
	Balance at December 31, 2005	 	 	 	97	 	 	29,561	 	 	-	 	 	(15,440	)	 	 	 	 	14,218	 
	 	 	 
	Net income	 	 	 	-	 	 	-	 	 	-	 	 	467	 	$	   467	 	 	467	 
										
			
	Comprehensive income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	   467	 	 	 	 
										
			
	 	 	 
	Exercise of stock options	 	 	 	(* -	 	 	85	 	 	-	 	 	-	 	 	 	 	 	85	 
	Employee stock-based	 	 
	  compensation	 	 	 	-	 	 	40	 	 	-	 	 	-	 	 	 	 	 	40	 
		
		
		
		
				
	
	 	 	 
	Balance at June 30, 2006

  (unaudited)	 	 	$	   97	 	$	  29,686	 	$	  -	 	$	 (14,973	)	 	 	 	$	  14,810	 
		
		
		
		
				
	

     *)    
          Represents an amount lower than $ 1. 

The accompanying notes are an
integral part of the consolidated financial statements. 

- 5 -

	TOP IMAGE SYSTEMS LTD.

AND ITS SUBSIDIARIES 
	  
	CONSOLIDATED STATEMENTS OF CASH FLOWS 
	

	U.S. dollars in thousands 

		Year ended

December 31,

2005
	Six months ended

June 30,

		2005
	2006

			Unaudited

	 			
				
	Cash flows from operating activities: 	 	 	 		 	 		 	 		 
	 	 	 
	  Net income (loss)	 	 	$	    (461	)	$	    (692	)	$	     467	 
	  Adjustments to reconcile net income (loss) to net cash used in	 	 
	    operating activities:	 	 
	    Stock-compensation due to acceleration of vesting	 	 	 	44	 	 	-	 	 	-	 
	    Stock based compensation	 	 	 	-	 	 	-	 	 	40	 
	    Interest on short-term bank loans	 	 	 	3	 	 	-	 	 	-	 
	    Depreciation and amortization	 	 	 	524	 	 	264	 	 	261	 
	    Accrued severance pay, net	 	 	 	10	 	 	(10	)	 	119	 
	    Gain from marketable securities, net	 	 	 	(3	)	 	(3	)	 	(2	)
	    Increase in trade receivables, net	 	 	 	(1,261	)	 	(952	)	 	(968	)
	    Increase in other accounts receivable and prepaid expenses	 	 	 	(56	)	 	(143	)	 	(489	)
	    Increase (decrease) in trade payables	 	 	 	495	 	 	241	 	 	(454	)
	    Increase in accrued expenses and other accounts payable	 	 	 	284	 	 	225	 	 	870	 
		
		
		
	
	 	 	 
	Net cash used in operating activities	 	 	 	(421	)	 	(1,070	)	 	(156	)
		
		
		
	
	 	 	 
	Cash flows from investing activities: 	 	 
	 	 	 
	  Payment of accrued expenses on account of acquisition	 	 	 	(73	)	 	(73	)	 	(114	)
	  Purchase of property and equipment	 	 	 	(164	)	 	(91	)	 	(91	)
	  Proceeds from sale of marketable securities	 	 	 	279	 	 	279	 	 	-	 
	  Purchase of marketable securities	 	 	 	(1,800	)	 	(1,500	)	 	(500	)
	  Decrease in long-term deposits	 	 	 	12	 	 	3	 	 	67	 
		
		
		
	
	 	 	 
	Net cash used in investing activities	 	 	 	(1,746	)	 	(1,382	)	 	(638	)
		
		
		
	
	 	 	 
	Cash flows from financing activities: 	 	 
	 	 	 
	  Proceeds from exercise of stock options	 	 	 	15	 	 	6	 	 	85	 
	  Increase (decrease) in short-term bank loans, net	 	 	 	469	 	 	689	 	 	(191	)
	  Payment of accrued issuance expenses	 	 	 	(253	)	 	(253	)	 	(81	)
		
		
		
	
	 	 	 
	Net cash provided by (used in) financing activities	 	 	 	231	 	 	442	 	 	(187	)
		
		
		
	
	 	 	 
	Decrease in cash and cash equivalents	 	 	 	(1,936	)	 	(2,010	)	 	(981	)
	Cash and cash equivalents at the beginning of the period	 	 	 	10,136	 	 	10,136	 	 	8,200	 
		
		
		
	
	 	 	 
	Cash and cash equivalents at the end of the period	 	 	$	   8,200	 	$	   8,126	 	$	   7,219	 
		
		
		
	

The accompanying notes are an integral
part of the consolidated financial statements. 

- 6 -

	TOP IMAGE SYSTEMS LTD.

AND ITS SUBSIDIARIES 
	  
	CONSOLIDATED STATEMENTS OF CASH FLOWS 
	

	U.S. dollars in thousands 

		Year ended

December 31,

2005
	Six months ended

June 30,

		2005
	2006

			Unaudited

	 			
				
	Supplemental disclosure of cash flows activity: 	 	 	 		 	 		 	 		 
	 	 	 
	  Cash paid during the period for:	 	 
	 	 	 
	    Interest	 	 	$	 97	 	$	 42	 	$	 45	 
		
		
		
	
	 	 	 
	Non-cash activity: 	 	 
	 	 	 
	  Accrued issuance expenses	 	 	$	 77	 	$	 77	 	$	  -	 
		
		
		
	

The accompanying notes are an
integral part of the consolidated financial statements. 

- 7 -

	TOP IMAGE SYSTEMS LTD.

AND ITS SUBSIDIARIES 
	  
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
	

	U.S. dollars in thousands, except share and per share data 

	NOTE 1:  	– 	GENERAL  

	 	a. 	Business
and organization: 

	 	
Top
Image Systems Ltd. (“TIS” or “the Company”) is engaged in the
development and marketing of a variety of information recognition systems and
technologies and automated document capture solutions for the most efficient flow of
information within and between organizations. The Company’s software minimizes the
need for manual data entry by automatically capturing, reading, understanding,
identifying, processing, classifying and routing the information contained in documents,
increasing data capture accuracy and the rate of information processing. The Company’s
shares are traded on the National Association of Securities Dealers’ Quotation
System (“NASDAQ”) in the United States. 

	 	
For
information regarding the principal customers of the Company, see Note 4b.  

	 	b. 	The
Company’s marketing and sales activities are conducted through its
          wholly-owned subsidiaries in the U.S., U.K, Germany and Japan. 

	NOTE 2:  	– 	SIGNIFICANT
ACCOUNTING POLICIES  

	 	
Except
as describe in Note 5 The significant accounting policies applied in the annual financial
statements of the Company as of December 31, 2005, are applied consistently in these
financial statements. 

	 	
Impact
of recently issued accounting standards:  

	 	
In
June 2006, the Financial Accounting Standards Board issued Interpretation No. 48,
Accounting for Uncertainty in Income Taxes (FIN 48). FIN 48 prescribes a more likely than
not threshold for financial statement recognition and measurement of a tax position taken
or expected to be taken in a tax return. This Interpretation also requires de-recognition
of income tax assets and liabilities, and provides guidance on classification of current
and deferred income tax assets and liabilities, interest and penalties associated with
tax positions, accounting for income taxes in interim periods, and income tax
disclosures. This Interpretation is effective as of January 1, 2007. We are currently
evaluating the impact of FIN 48 on our financial statements. 

	NOTE 3:  	– 	UNAUDITED
INTERIM CONSOLIDATED FINANCIAL STATEMENTS  

	 	
The
accompanying unaudited interim consolidated financial statements have been prepared in
accordance with accounting principles generally accepted in the United States for interim
financial information. Accordingly, they do not include all the information and footnotes
required by accounting principles generally accepted in the United States for complete
financial statements. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been included.
Operating results for the six-month period ended June 30, 2006 are not necessarily
indicative of the results that may be expected for the year ended December 31, 2006. 

- 8 -

	TOP IMAGE SYSTEMS LTD.

AND ITS SUBSIDIARIES 
	  
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
	

	U.S. dollars in thousands, except share and per share data 

	NOTE 4:  	– 	GEOGRAPHICAL
INFORMATION  

	 	a. 	Business
segment, geographical areas and foreign operations: 

	 	
The
Company manages its business on the basis of one reportable segment (see Note 1 for a
brief description of the Company’s business). The Company’s business is divided
into the following geographic areas: Europe, the Americas, Far East, Israel and other
regions. 

	 	
Total
revenues are attributed to geographic areas based on the location of the customer.  

	 	b. 	Geographic
information: 

	 		Year ended

December 31,

2005
	Six month ended

June 30,

	 		2005
	2006

	 			Unaudited

	 	 			
	 				
	 	Product sales:	 	 	 		 	 		 	 		 
	 	  Israel	 	 	$	     60	 	$	     60	 	$	      2	 
	 	  Far East (excluding Japan)	 	 	 	2,020	 	 	366	 	 	834	 
	 	  Europe	 	 	 	5,604	 	 	2,663	 	 	3,376	 
	 	  North America	 	 	 	734	 	 	402	 	 	508	 
	 	  South America	 	 	 	210	 	 	280	 	 	45	 
	 	  Africa	 	 	 	512	 	 	190	 	 	240	 
	 	  Japan	 	 	 	748	 	 	510	 	 	870	 
	 		
		
		
	
	 	   	 	 
	 	 	 	 	 	9,888	 	 	4,471	 	 	5,875	 
	 		
		
		
	
	 	Service revenues:	 	 
	 	  Israel	 	 	 	78	 	 	58	 	 	5	 
	 	  Far East (excluding Japan)	 	 	 	375	 	 	193	 	 	307	 
	 	  Europe	 	 	 	3,396	 	 	1,756	 	 	1,958	 
	 	  North America	 	 	 	868	 	 	399	 	 	467	 
	 	  South America	 	 	 	15	 	 	15	 	 	7	 
	 	  Africa	 	 	 	53	 	 	20	 	 	44	 
	 	  Japan	 	 	 	2,147	 	 	1,088	 	 	811	 
	 		
		
		
	
	 	   	 	 
	 	 	 	 	 	6,932	 	 	3,529	 	 	3,599	 
	 		
		
		
	
	 	   	 	 
	 	Total revenues	 	 	$	 16,820	 	$	  8,000	 	$	  9,474	 
	 		
		
		
	
	 	   	 	 
	 	Sales to single customers exceeding 10% of	 	 
	 	   revenues:	 	 
	 	   	 	 
	 	Customer A	 	 	 	10	%	 	*) -	 	 	*) -	 
	 		
		
		
	
	 	   	 	 
	 	Customer B	 	 	 	*) -	 	 	*) -	 	 	10	%
	 		
		
		
	

	 	*) 	Less
than 10%  

	 	
The
Company’s substantial long-lived assets are located in Israel.  

- 9 -

	TOP IMAGE SYSTEMS LTD.

AND ITS SUBSIDIARIES 
	  
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
	

	U.S. dollars in thousands, except share and per share data 

	NOTE 5:  	– 	STOCK-BASED
COMPENSATION  

	 	
Effective
January 1, 2006, the Company adopted the provisions of Statement of Financial Accounting
Standard (SFAS) No. 123(R), “Share-Based Payment” (“SFAS 123(R)”),
which requires the Company to measure all employee stock-based compensation awards using
a fair value method and record the related expense in the financial statements. The
Company used the Black-Scholes option pricing model. The Company elected to use the
modified prospective method of adoption which requires that compensation expense be
recorded in the financial statements over the expected requisite service period for any
new options granted after the adoption of SFAS 123(R) as well as for existing awards for
which the requisite service has not been rendered as of the date of adoption and requires
that prior periods not be restated. 

	 	
A
summary of the activity in options granted to purchase the Company’s Ordinary shares
under the Company’s stock option plans is as follows: 

	 		Six months ended

June 30, 2006 (unaudited)

	 		Number of

options
	Weighted

average

exercise

price
	Weighted

average

remaining

contractual

term

(in years)
	Aggregate

intrinsic

value

	 	 				
	 					
	 					
	 	Outstanding at the beginning of	 	 	 		 	 		 	 		 	 		 
	 	   the period	 	 	 	822,000	 	$	 2.65	 	 	 	 	 	 	 
	 	   Granted	 	 	 	46,400	 	$	 2.83	 	 	 	 	 	 	 
	 	   Exercised	 	 	 	49,000	 	$	 1.75	 	 	 	 	 	 	 
	 	   Forfeited	 	 	 	-	 	 	-	 	 	 	 	 	 	 
	 		
						
	
	 	   	 	 
	 	Outstanding at the end of the	 	 
	 	   period	 	 	 	819,400	 	$	 2.71	 	 	7.83	 	$	  42,688	 
	 		
		
		
		
	
	 	   	 	 
	 	Number of options exercisable as

   of June 30, 2006	 	 	 	712,591	 	$	 2.74	 	 	7.17	 	$	  42,688	 
	 		
		
		
		
	
	 	   	 	 
	 	Vested and expected to vest	 	 	 	786,552	 	$	  2.7	 	 	5.29	 	$	  29,028	 
	 		
		
		
		
	

	 	
The
weighted-average fair value per share of the options granted during the six months ended
June 30, 2006 and 2005 was $ 2.83 and $ 2.92, respectively. The exercise prices of
such options were equal to the market price of the Company’s Ordinary shares on the
date of the respective option grants. 

	 	
The
Company recognizes compensation expenses for the value of its awards, which have graded
vesting based on the straight line method over the requisite service period of each of
the awards, net of estimated forfeitures. Estimated forfeitures are based on actual
historical pre-vesting forfeitures. 

	 	
The
total stock-based compensation charge included in the consolidated statement of
operations for the six months ended June 30, 2006 was in the total amount of $ 40 and was
recorded in general and administrative expenses. 

- 10 -

	TOP IMAGE SYSTEMS LTD.

AND ITS SUBSIDIARIES 
	  
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
	

	U.S. dollars in thousands, except share and per share data 

	NOTE 5:  	– 	STOCK-BASED
COMPENSATION (Cont.)  

	 	
Under
SFAS 123(R), the charge has been determined as if the Company had accounted for its
employee stock options under the fair value method of SFAS 123(R). The fair value for
these options was estimated on the date of grant using a Black-Scholes option pricing
model with the following weighted-average assumptions: 

	 		Six months

ended

June 30,

2006

	 		(unaudited)

	 		 
	 		
	 		
	 	Dividend yield	-
	 	Expected volatility	84%
	 	Risk-free interest rate	5%
	 	Expected forfeiture	32.3%
	 	Expected life	2.5 years

	 	
As
of June 30, 2006, there was a balance of $ 53 of unrecognized compensation expense
related to non-vested awards. The impact on both basic and diluted net loss per share for
the six months ended June 30, 2006 was $ 0.005. 

	 	
The
Company issues stock options to its employees and a director which provide the right to
purchase shares pursuant to approved stock option plans. Prior to the adoption of SFAS
123(R), the Company elected to follow Accounting Principles Board Opinion No. 25, “Accounting
for Stock Options Issued to Employees” (“APB No. 25”) and related
interpretations (collectively “APB No. 25”), in accounting for its stock option
plans. Under APB No. 25, when the exercise price of an employee stock option is less than
the market price of the underlying shares on the date of grant, compensation expense is
recognized. All options granted under these plans had an exercise price equal to the fair
market value of the underlying Ordinary shares on the date of grant. 

- 11 -

	TOP IMAGE SYSTEMS LTD.

AND ITS SUBSIDIARIES 
	  
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
	

	U.S. dollars in thousands, except share and per share data 

	NOTE 5:  	– 	STOCK-BASED
COMPENSATION (Cont.)  

	 	
The
following table illustrates the pro forma effect on net loss and net loss per share for
the six-month period ended June 30, 2005, had the Company applied the fair value
recognition provisions of SFAS No. 123 as expenses: 

	 		Six months

ended

June 30, 2005

	 		(unaudited)

	 	 	
	 		
	 		
	 	Net loss as reported	 	 	$	 (692	)
	 	Deduct: total stock-based employee compensation expense determined under fair value based	 	 
	 	   method for all awards	 	 	 	(96	)
	 		
	
	 	   	 	 
	 	Pro forma net loss	 	 	$	 (788	)
	 		
	
	 	   	 	 
	 	Net loss per share:	 	 
	 	   Basic and diluted as reported	 	 	$	 (0.0	8)
	 		
	
	 	   	 	 
	 	   Basic and diluted pro forma	 	 	$	 (0.0	9)
	 		
	

	 	
The
fair value for these options was estimated on the date of grant using a Black-Scholes
option pricing model with the following weighted-average assumptions: risk-free interest
rate of 3.25%; dividend yield of 0%; volatility factor of 36% and a weighted average
expected life of the options of 4 years. 

- 12 -

SELECTED FINANCIAL DATA 

        The
following selected consolidated financial data as of, and for the years ended, December
31, 2001, 2002, 2003, 2004 and 2005 have been derived from, and should be read in
conjunction with, the Company’s audited consolidated financial statements, related
notes and other financial information included in the Company’s annual reports on
Form 20-F previously filed with the Securities and Exchange Commission. The selected
consolidated financial data as of, and for the six months ended, June 30, 2006 have been
derived from, and should be read in conjunction with, the Company’s unaudited
consolidated financial statements, related notes and other financial information included
elsewhere in this report. The selected consolidated financial data should also be read in
conjunction with and are qualified by reference to “Operating and Financial Review
and Prospects” included in the applicable annual reports and elsewhere in this
report.

1

		Year Ended December 31
	Six-month

period

ended

June 30,

		2001
	2002
	2003
	2004
	2005
	2006

		In US$ except for weighted average number of shares data
	 						
							
	Statement of Operations Data
under U.S. GAAP: 	 	 	 		 	 		 	 		 	 		 	 		 	 		 
	   Revenues	 	 	$	     11,959	 	$	      7,799	 	$	      8,319	 	$	     11,178	 	$	     16,820	 	$	      9,474	 
	     Cost of revenues	 	 	 	3,072	 	 	3,005	 	 	2,340	 	 	3,472	 	 	6,763	 	 	3,595	 
	     Gross profit	 	 	 	8,887	 	 	4,794	 	 	5,979	 	 	7,706	 	 	10,057	 	 	5,879	 
	     Research and development, net	 	 	 	2,199	 	 	1,340	 	 	863	 	 	929	 	 	1,312	 	 	884	 
	     Selling, administrative and general	 	 	 	9,801	 	 	7,465	 	 	5,819	 	 	7,123	 	 	9,030	 	 	4,747	 
	     Financial expense (income), net	 	 	 	(287	)	 	(187	)	 	(109	)	 	(178	)	 	146	 	 	227	 
	     Other (income) expense	 	 	 	(34	)	 	4	 	 	-	 	 	-	 	 	-	 	 	-	 
	     Taxes on Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	30	 	 	8	 
	   Net income (loss)	 	 	 	(2,792	)	 	(3,828	)	 	(594	)	 	(168	)	 	(461	)	 	467	 
		
		
		
		
		
		
	
	 	 	 
	Net basic and dilutive income (loss)

   per share	 	 	$	     (0.458	)	$	     (0.627	)	$	      (0.11	)	$	     (0.024	)	$	     (0.053	)	$	       0.05	 
		
		
		
		
		
		
	
	 	 	 
	Weighted average number of shares	 	 
	   outstanding for basic	 	 
	   net earnings (loss) per share	 	 	 	6,098,890	 	 	6,098,890	 	 	6,102,496	 	 	6,905,559	 	 	8,764,222	 	 	8,806,714	 
		
		
		
		
		
		
	
	 	 	 
	Weighted average number of shares

   outstanding for dilutive

   net earnings (loss) per share	 	 	 	6,098,890	 	 	6,098,890	 	 	6,102,496	 	 	6,905,559	 	 	8,764,222	 	 	8,993,278	 
		
		
		
		
		
		
	

		As of December 31
	As of June 30,

		2001
	2002
	2003
	2004
	2005
	2006

		In US$
	 						
							
	Summary of Balance Sheet Data: 	 	 	 		 	 		 	 		 	 		 	 		 	 		 
	   Cash and cash equivalents	 	 	$	  9,419	 	$	  7,400	 	$	  5,854	 	$	 10,136	 	$	  8,200	 	$	  7,219	 
	   Working capital	 	 	 	11,292	 	 	7,739	 	 	7,353	 	 	12,232	 	 	12,137	 	 	13,085	 
	   Total Assets	 	 	 	16,161	 	 	12,488	 	 	12,130	 	 	19,742	 	 	20,360	 	 	21,051	 
	   Long Term debt	 	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	   Total liabilities	 	 	 	4,140	 	 	4,286	 	 	4,490	 	 	5,047	 	 	6,142	 	 	6,241	 
	   Shareholders' equity	 	 	 	12,020	 	 	8,202	 	 	7,639	 	 	14,695	 	 	14,218	 	 	14,810	 

2

OPERATING AND
FINANCIAL REVIEW AND PROSPECTS 

	A.  	Operating
Results  

        The
following discussion of our consolidated financial condition and consolidated results of
operations should be read together with our consolidated financial statements and notes to
our consolidated financial statements contained in this report and in our annual reports
previously filed with the Securities and Exchange Commission on Form 20-F, as well as the
discussion of our financial condition and results of operations under the heading
“Operating and Financial Review and Prospects” contained in such annual reports.
This discussion contains certain forward-looking statements that involve risks,
uncertainties and assumptions. As a result of many factors, including those set forth
under “Risk factors” in our annual report on Form 20-F for the year ended
December 31, 2005, our actual results may differ materially from those anticipated in
these forward-looking statements. 

        The
following table sets forth certain items from our results of operations as a percentage of
total revenues for the periods indicated: 

		Year Ended December 31,
	Six months ended June 30,

		2001
	2002
	2003
	2004
	2005
	2006

		In thousands except for weighted average number of shares data
	 						
							
	Statement of Operations
Data: 	 	 	 		 	 		 	 		 	 		 	 		 	 		 
	 	 	 
	   Revenues	 	 	 	100	%	 	100	%	 	100	%	 	100	%	 	100	%	 	100	%
	     Cost of revenues	 	 	 	26	%	 	39	%	 	28	%	 	31	%	 	40	%	 	38	%
	   Gross profit	 	 	 	74	%	 	61	%	 	72	%	 	69	%	 	60	%	 	62	%
	     Research and

      development, net	 	 	 	18	%	 	17	%	 	10	%	 	8	%	 	8	%	 	9	%
	     Selling, administrative	 	 
	      and general	 	 	 	82	%	 	96	%	 	70	%	 	64	%	 	54	%	 	50	%
	   Financial expense

    (income), net	 	 	 	(2	)%	 	(2	)%	 	(1	)%	 	(2	)%	 	1	%	 	(2	)%
	   Other (income) expense	 	 	 	0	%	 	0	%	 	0	%	 	0	%	 	0	%	 	0	%
	   Tax on income	 	 	 	0	%	 	0	%	 	0	%	 	0	%	 	0	%	 	0	%
	   Net profit (loss)	 	 	 	(23	)%	 	(49	)%	 	(7	)%	 	(2	)%	 	(3	)%	 	5	%

        We
derive revenue from the sale of products and solutions and also from service and
maintenance agreements. 

        Our
sales to end-users, resellers, value-added resellers, distributors and system integrators
are made on credit terms and we do not hold collateral to secure payment. The terms of the
agreements with these customers do not provide them with the right to return the purchased
products or solutions. Payment with respect to such sales is generally due within a
specified period following receipt of an invoice. The period varies, but is up to 150 days
for end-users and up to 90 days for resellers, distributors and system integrators. We are
not party to any extended payment arrangements. 

        A
default in payment by one or more of our resellers, value-added resellers, distributors
and system integrators could adversely affect our business, results of operations, and
financial condition. We cannot assure you that uncollectible receivables will not exceed
our reserves. Any significant increase in uncollected accounts receivable beyond reserves
could have a material adverse effect on our business, results of operation, and financial
condition. 

        As
a result of our strategy of pursuing strategic alliances with value-added resellers,
distributors and system integrators, a substantial portion of our revenues is derived from
such alliances. During the years ended December 31, 2003, 2004, 2005, and the period of
six months ended June 30, 2006 revenues deriving from value-added resellers, distributors
and system integrators accounted for approximately 51%, 28%, 46% and 51%, respectively, of
our revenues. The decline during 2004 was mainly because of our direct sales to a major
customer in Europe. 

1

        Historically,
we have recognized a majority of our revenues from product sales. During the years ended
December 31, 2003, 2004, 2005, and the period of six months ended June 30, 2006, product
revenues accounted for approximately 75%, 62%, 59% and 62%, respectively, of revenues,
while service revenues accounted for approximately 25%, 38, 41% and 38% respectively, of
revenues. During 2004, we stopped marketing our AFPSProTM product, except for
Japan. In 2005, sales of eFLOWTM accounted for 95% of our product sales and for
approximately 60% of our revenue. 

        Seasonality  

        Our
sales cycle for eFLOWTM has ranged from 9 to 12 months. These sales cycles vary
by customer and could extend for longer periods depending on the time required by the
customer to evaluate the utility of the applicable product to its operations. Our
operating results could vary between periods as a result of this fluctuation in the length
of our sales cycles, the purchasing patterns of potential customers, the timing of
introduction of new products and product enhancements introduced by us and our
competitors, technological factors, variations in sales by distribution channels,
competitive pricing and generally non-recurring product sales. Consequently, our product
revenues may vary significantly by quarter. 

        Geographical
Considerations  

        The
following table summarizes total revenues by geographic market for each of the last three
completed fiscal years and the period of six months ended June 30, 2006: 

Total Revenues

by Region

(U.S. dollars in

thousands)

		Year Ended December 31,
	Six months ended

June 30,

		2003
	2004
	2005
	2006

		$	%	$	%	$	%	$	%
	 								
									
	Europe	 	 	 	5,729	 	 	69	%	 	7,966	 	 	71	%	 	9,000	 	 	54	%	 	5,334	 	 	56	%
	 	 	 
	North America	 	 	 	392	 	 	5	%	 	1,254	 	 	11	%	 	1,602	 	 	10	%	 	975	 	 	10	%
	Far East

(excluding Japan)	 	 	 	1,455	 	 	17	%	 	924	 	 	8	%	 	2,395	 	 	14	%	 	1,141	 	 	12	%
	Africa	 	 	 	144	 	 	2	%	 	180	 	 	2	%	 	565	 	 	3	%	 	284	 	 	3	%
	Japan	 	 	 	51	 	 	1	%	 	670	 	 	6	%	 	2,895	 	 	17	%	 	1,681	 	 	18	%
	Israel	 	 	 	31	 	 	0	%	 	184	 	 	2	%	 	138	 	 	1	%	 	7	 	 	0	%
	 	 	 
	South America	 	 	 	516	 	 	6	%	 	-	 	 	0	%	 	225	 	 	1	%	 	52	 	 	1	%
	 	 	 
	Middle East	 	 
	(excluding	 	 
	Israel)	 	 	 	1	 	 	0	%	 	-	 	 	0	%	 	-	 	 	0	%	 	0	 	 	0	%
		
		
		
		
		
		
		
		
	
	Total	 	 	 	8,319	 	 	100	%	 	11,178	 	 	100	%	 	16,820	 	 	100	%	 	9,474	 	 	100	%
		
		
		
		
		
		
		
		
	

        As
a result of the fluctuation in product sales in various geographic regions, we are subject
to the risks associated with international sales, including economic and political
instability, shipping delays, customs duties, export quotas and other trade restrictions,
any of which could have a significant impact on our ability to deliver products on a
competitive and timely basis and exacerbate the risks inherent in our business. While we
have not encountered significant difficulties in connection with the sales of our products
in international markets, the future imposition of, or significant increases in, the level
of custom duties, export quotas or other trade restrictions could have an adverse effect
on us. 

2

        Critical
Accounting Policies and Estimates  

        Our
consolidated financial statements have been prepared in accordance with generally accepted
accounting principles in the United States, or U.S. GAAP. We believe that several
accounting policies applied in the preparation of our consolidated financial statements
may be considered critical because they are most important to the portrayal of our
financial condition and results, and they require management’s most difficult,
subjective or complex judgments, often as a result of the need to make estimates about the
effect of matters that are inherently uncertain. We periodically evaluate our estimates,
including those relating to the allowance for doubtful accounts, contingencies and
litigation. We base our estimates on historical experience and on various other
assumptions that we believe to be reasonable under present circumstances. Actual results
may differ from these estimates under different assumptions or conditions. We believe the
following critical accounting policies require our more significant judgments and
estimates used in the preparation of our consolidated financial statements. 

        Revenue
Recognition

        We
derive revenue from primarily two sources: sales of software licenses and provision of
services. Service revenues include contracts for software maintenance and technical
support, consulting and training. 

        We
apply the provisions of Statement of Position (“SOP”) 97-2, “Software
Revenue Recognition” (as amended by SOP 98-4 and SOP 98-9) and related
interpretations to all revenue transactions. 

        We
allocate revenue from software arrangements involving multiple elements to each element
based on the relative fair values of the elements. The determination of fair value of each
element in multiple element arrangements is based on the price charged when a similar
element is sold separately and creates vendor specific objective evidence
(“VSOE”). Revenues are recognized under the “residual method” when
VSOE of fair value exists for all undelivered elements and VSOE of fair value does not
exist for all of the delivered elements, and when all SOP No. 97-2 criteria for revenue
recognition are met. 

        A
typical solution includes software licenses, maintenance, and technical support. Some
customer arrangements include training and consulting. Maintenance includes unspecified
updates on an if-and-when-available basis, and support includes telephone support, and bug
fixes or patches. Training consists of courses taught by our instructors at our facility
or at the customer’s site. Consulting consists primarily of product installation and
limited tailoring of the product to the customer’s needs. 

        We
have analyzed all of the elements included in our multiple-element arrangements and
determined that we have vendor-specific objective evidence of fair value to allocate
revenue to the different services. Accordingly, assuming all other revenue recognition
criteria are met, revenues from licenses are recognized upon delivery of the software
license in accordance with SOP 97-2, as amended. Revenues from maintenance and support
services are recognized ratably over the term of the agreement. Revenue for consulting and
training is recognized as the services are performed. 

        Our
criteria for revenue recognition are as follows: 

    1.        Persuasive
Evidence of an Arrangement Exists. It is our customary           practice to have a
written contract, which is signed by both the customer and           us, or to have a
purchase order from our customers, prior to recognizing revenue           from an
arrangement.  

    2.        Delivery
Has Occurred. Our software is physically or electronically           delivered to the
customer. If undelivered products or services exist that are           essential to the
functionality of the delivered product in an arrangement,           delivery is not
considered to have occurred.  

    3.        The
Vendor’s Fee is Fixed or Determinable. The fee our customers are           to
pay for the products or services is negotiated prior to the inception of the
          arrangement. Therefore, the fees are considered to be fixed or determinable at
          the inception of the arrangement.  

3

    4.        Collection
is Probable. Probability of collection for our customer’s           debts is
assessed by management on a customer-by-customer basis. This assessment           is
based, among other factors, on actual payment by the customer in previous
          transactions, general reputation of the customer in the market, and the history
          of relations between us and the customer.  

        License
revenues from reseller arrangements are recognized upon delivery unless payment is
dependent on third-party collection by the reseller. During the years ended December 31,
2003, 2004 , 2005 and the six month ended June 30, 2006, we had no arrangements in which
payment terms were dependent on third-party collection by the reseller. 

        When
services are considered essential, revenue under the arrangement is recognized using
contract accounting according to SOP 81-1. When consulting services are not considered
essential, the revenue allocable to the consulting services is recognized as the services
are performed or when acceptance is received, if required by the agreement. 

        If
services are considered essential to the functionality of the software licenses that
require significant customization, integration and installation, revenues are recognized
on the percentage of completion basis provided that the revenues are fixed or can be
reasonably estimated, collection is probable, costs related to performing the work are
determinable or can be reasonably determined, there is no substantial uncertainty
regarding the ability of the Company to complete the contract and to meet the contractual
terms and the percentage of completion can be reasonably estimated. The percentage of
completion is determined based on the ratio of actual cost to total estimated cost. Any
changes in those estimates could affect our results of operations. As for contracts in
which a loss is anticipated, a provision is recorded for the full amount of the expected
loss. 

        If
all the criteria for recognition of revenue from performance contracts are not met, then
revenue is recognized up to the amount of costs incurred whose collection is probable
(“zero profit margin” presentation). 

        Trade
Receivables and allowance for doubtful accounts. 

        Trade
receivables are recorded at cost, less the related allowance for doubtful trade
receivables. Management considers current information and events regarding the
customer’s ability to repay its obligations and determines accounts receivable to be
impaired when it is probable that we will be unable to collect those amounts. 

        The
balance sheet allowance for doubtful debts for all the periods through June 30, 2006 is
determined as a specific amount for those accounts the collection of which is uncertain.
We regularly review the allowance by considering factors such as historical experience,
credit quality, age of the accounts receivable balances, and current economic conditions
that may affect a customer’s ability to pay. If a major customer’s
creditworthiness deteriorates, or if actual defaults are higher than our historical
experience, or if other circumstances arise, our estimates of the recoverability of
amounts due to us could be overstated, and additional allowances could be required, which
could have an adverse impact on our results of operations. 

        Goodwill
and other intangible assets

        Under
Statement of Financial Accounting Standard No. 142, “Goodwill and Other Intangible
Assets,” goodwill is not amortized. SFAS No. 142 requires goodwill to be tested for
impairment on adoption and at least annually thereafter or between annual tests in certain
circumstances, and written down when impaired, rather than being amortized as previous
accounting standards required. Goodwill attributable to each of the reporting units is
tested for impairment by comparing the fair value of each reporting unit with its carrying
value. Fair value is determined using discounted cash flows, market multiples and market
capitalization. Significant estimates used in the methodologies include estimates of
future cash flows, future short-term and long-term growth rates, weighted average cost of
capital and estimates of market multiples for each of the reportable units. 

        Research
and Development Costs

        Research
and development costs, net of participations and grants received, are charged to our
statement of operations as incurred. 

4

        Loss
Contingencies

        We
are subject to the possibility of various loss contingencies arising in the ordinary
course of business. We consider the likelihood of loss or impairment of an asset or the
incurrence of a liability, as well as our ability to reasonably estimate the amount of
loss in determining loss contingencies. An estimated loss contingency is accrued when it
is probable that an asset has been impaired or a liability has been incurred and the
amount of loss can be reasonably estimated. We regularly evaluate current information
available to us to determine whether such accruals should be adjusted and whether new
accruals are required. 

        “Share-Based
Payment”

        Effective
January 1, 2006, the Company adopted the provisions of Statement of Financial Accounting
Standard (SFAS) No. 123(R), “Share-Based Payment” (“SFAS 123(R)”),
which requires the Company to measure all employee stock-based compensation awards using a
fair value method and record the related expense in the financial statements. We used the
Black-Scholes option pricing model. We elected to use the modified prospective method of
adoption which requires that compensation expense be recorded in the financial statements
over the expected requisite service period for any new options granted after the adoption
of SFAS 123(R) as well as for existing awards for which the requisite service has not been
rendered as of the date of adoption and requires that prior periods not be restated. The
impact on our results of operations was immaterial. 

Results of Operations
(all numbers herein are U.S. dollars in thousands)  

        The
following discussion and analysis should be read in conjunction with the section herein
entitled “Selected Financial Data” and the consolidated financial statements,
related notes and other financial information included herein. 

        Six
Months ended June 30th 2006 Compared to Six Months ended June 30th
2005 

             Revenues.
          Total revenues for the six months ended June 30, 2006 amounted to $9,474
          compared to $8,000 for the corresponding period in 2005, an increase of 22%.
          Product sales increased by $1,404 or 31%, from $4,471 in the six months ended
          June 30, 2005 to $5,875 in the six months ended June 30, 2006, mainly because of
          a large sale to a customer in the UK. Service revenues increased by $70, or
          approximately 2%, from $3,529 in the six months ended June 30, 2005 to $3,599 in
          the six months ended June 30, 2006. In the first half of 2006, we engaged in
          several sales in which our solution was sold to systems integrators, and
          therefore, service revenues did not increase in the same scale as our product
          sales. 

        Cost
of Revenues. Cost of revenues increased by $308, or 9%, from $3,287 in the six months
ended June 30, 2005 to $3,595 in the six months ended June 30, 2006. The increase is a
result of recruiting of more workforce mainly towards the end of the second quarter of
2006. 

        Research
and Development. Research and development expenses in the six months ended June 30,
2006 amounted to $884 compared to $644 for the six months ended June 30, 2005. In 2006, we
focused our research and developments efforts on increasing the learning capabilities of
our product, insertion of automatic QA tools and developing our future version. 

        Selling,
General and Administrative Expenses. Selling, general and administrative expenses in
the six months ended June 30, 2006 amounted to $4,747 compared to $4,620 for the six
months ended June 30, 2005, an increase of $127 or 3%. In first half of 2005, we held our
annual customers conference for which we incurred expenses in the amount of $211, whereas
in 2006 the conference will take place in November. This decrease was offset by an
increase in the size of our sales team in 2006, mainly in the UK. Also, we initiated in
2006 recording expenses with respect to our options grants in accordance with the
guidelines set forth in issued SFAS No. 123(R), “Share-Base Payment” (“SFAS
123(R)”) issued by the Financial Accounting Standards Board (“FASB”). Its
impact on our results of operations is disclosed in Note 5 to the financial statements. 

        Liquidated
Damages Related to September 2004 Private Placement. In the six months ended June 30,
2005, we incurred liquidated damages in the amount of $164 as part of our registration
commitment to investors in the September 2004 private placement. No such amounts were
incurred in the corresponding period of 2006. 

        Financing
Income, net. Financing income for the six months ended June 30, 2006 amounted to $227,
compared to financing expense of $141 for the six months ended June 30, 2005. The move to
financing income was primarily due to an increase of exchange gain in 2006, which is a
product of the strengthening of the Euro and British Pound against the U.S. Dollar. 

5

        Net
Income (Loss). As a result of the foregoing, our net income for the six months ended
June 30, 2006 was $467, compared to a net loss of $692 in the six months ended June 30,
2005. 

        Liquidity
and Capital Resources 

        As
of June 30, 2006, our cash, cash equivalents, bank deposits and marketable securities were
$9,526, compared to $10,005 as of December 31, 2005. 

        Net
cash used in operating activities for the six months ended June 30, 2006 was $156 as
compared to $421 for the year ended December 31, 2005. This decrease was attributable
primarily to the increase in our sales and the improvement in our collection efforts. Our
trade receivables increased by $968. This increase reflects our higher sales in the second
quarter of 2006 compared to the fourth quarter of 2005. Trade and other payables and
accrued expenses increased by $221 due to an increase in our operations and provisions
with regard to software components which were sold in the second quarter. 

        For
the six months ended June 30, 2006, the aggregate amount of our capital expenditures was
$114. These expenditures were principally for the purchases of computer hardware and
software and facilities improvements. 

        We
currently have a short-term line of credit with First International Bank of Israel. The
total amount available under this line of credit is the lesser of $2,300 and 75% of
certain eligible trade receivables. As of December 31, 2005, we had approximately $2,179
outstanding after extension of additional credit from the bank. The revolving line of
credit in NIS bears interest at a rate of prime + 1% (as of December 31, 2005, the prime
rate was 7%). The line of credit in US dollars bears interest at a rate of Libor + 2% (as
of December 31, 2005, the Libor rate was 4.375%). Any indebtedness under this credit line
is payable on demand and secured by a floating charge on our assets. Our ability to issue
securities is restricted. In the event that we default under the line of credit, the bank
could declare our indebtedness immediately due and payable and, if we are unable to make
the required payments, foreclose on our assets. Moreover, to the extent that our assets
continue to secure such indebtedness, such assets will not be available to secure
additional indebtedness unless approved by the Bank. 

        Our
line of credit decreased by $191 in the six months ended June 30, 2006 to $1,988. 

        Trends

        We
expect that semi-structured technology will become a central part of the document
management market. We are addressing this trend by strengthening and further developing
our semi-structured technology. 

        We
anticipate that growth will continue in the data capture market. We expect that new
recognition and classification technologies combined with more vertical market integration
will expend the main markets. However, we believe that there will be a move toward
integrated software solutions, such as Freedom, our eFLOW plug-in for
semi-structured content, instead of individual data capture products and semi-structured
technology. We also anticipate that the need for applications will increase substantially.
We expect outsourcing with respect to documents solutions to increase due to its cost
efficiency and improved quality and for the data capture industry to continue to move
toward consolidation. We are addressing these trends by solidifying our relationships with
our existing partners and seeking to become the preferred data capture solution provider
for many large integrated system providers. 

6

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