Document:

Exhibit 10.1

    Exhibit
      10.1

     

    
      

      

    

    
 

    
      	
               

              AMENDED
                AND RESTATED CREDIT AGREEMENT

               

              Dated
                as of May 24, 2007

               

              among

               

              ODYSSEY
                HEALTHCARE OPERATING A, LP,

               

              ODYSSEY
                HEALTHCARE OPERATING B, LP, and

               

              HOSPICE
                OF THE PALM COAST, INC.

               

              as
                Borrowers,

               

              THE
                OTHER CREDIT PARTIES SIGNATORY HERETO,

               

              as
                Credit Parties,

               

              THE
                LENDERS SIGNATORY HERETO

               

              FROM
                TIME TO TIME,

               

              as
                Lenders,

               

              and

               

              GENERAL
                ELECTRIC CAPITAL CORPORATION,

               

              as
                Agent and Lender

               

              GECC
                CAPITAL MARKETS GROUP, INC.,

               

              as
                Lead Arranger

               

            

    

    

    
      

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      

        
          	
                  TABLE
                    OF CONTENTS

                	 
	 	 	 	
                  Page

                
	
                  1.
                    AMOUNT
                    AND TERMS OF CREDIT

                	
                  2

                
	
                  1.1.

                	 	
                  Credit
                    Facilities.

                	
                  2

                
	
                  1.2.

                	 	
                  Letters
                    of Credit.

                	
                  3

                
	
                  1.3.

                	 	
                  Prepayments.

                	
                  4

                
	
                  1.4.

                	 	
                  Use
                    of Proceeds.

                	
                  5

                
	
                  1.5.

                	 	
                  Interest
                    and Applicable Margins.

                	
                  6

                
	
                  1.6.

                	 	
                  [Intentionally
                    Omitted]

                	
                  7

                
	
                  1.7.

                	 	
                  [Intentionally
                    Omitted].

                	
                  8

                
	
                  1.8.

                	 	
                  Cash
                    Management Systems.

                	
                  8

                
	
                  1.9.

                	 	
                  Fees.

                	
                  9

                
	
                  1.10.

                	 	
                  Receipt
                    of Payments.

                	
                  9

                
	
                  1.11.

                	 	
                  Application
                    and Allocation of Payments.

                	
                  9

                
	
                  1.12.

                	 	
                  Loan
                    Account and Accounting.

                	
                  9

                
	
                  1.13.

                	 	
                  Indemnity.

                	
                  10

                
	
                  1.14.

                	 	
                  Access.

                	
                  11

                
	
                  1.15.

                	 	
                  Taxes.

                	
                  12

                
	
                  1.16.

                	 	
                  Capital
                    Adequacy; Increased Costs; Illegality.

                	
                  12

                
	
                  1.17.

                	 	
                  Single
                    Loan; Joint and Several Obligations.

                	
                  14

                
	
                  2.
                    CONDITIONS
                    PRECEDENT

                	
                  15

                
	
                  2.1.

                	 	
                  Conditions
                    to the Initial Loans.

                	
                  15

                
	
                  2.2.

                	 	
                  Further
                    Conditions to Each Loan.

                	
                  16

                
	
                  3.
                    REPRESENTATIONS
                    AND WARRANTIES

                	
                  17

                
	
                  3.1.

                	 	
                  Existence;
                    Compliance with Law.

                	
                  17

                
	
                  3.2.

                	 	
                  Executive
                    Offices, Collateral Locations, FEIN.

                	
                  17

                
	
                  3.3.

                	 	
                  Power,
                    Authorization, Enforceable Obligations.

                	
                  18

                
	
                  3.4.

                	 	
                  Financial
                    Statements and Projections.

                	
                  18

                
	
                  3.5.

                	 	
                  Material
                    Adverse Effect.

                	
                  19

                
	
                  3.6.

                	 	
                  Ownership
                    of Property; Liens.

                	
                  20

                
	
                  3.7.

                	 	
                  Labor
                    Matters.

                	
                  20

                
	
                  3.8.

                	 	
                  Ventures,
                    Subsidiaries and Affiliates; Outstanding Stock and
                    Indebtedness.

                	
                  20

                
	
                  3.9.

                	 	
                  Government
                    Regulation.

                	
                  21

                
	
                  3.10.

                	 	
                  Margin
                    Regulations.

                	
                  21

                
	
                  3.11.

                	 	
                  Taxes.

                	
                  21

                
	
                  3.12.

                	 	
                  ERISA.

                	
                  22

                
	
                  3.13.

                	 	
                  No
                    Litigation.

                	
                  23

                
	
                  3.14.

                	 	
                  Brokers.

                	
                  23

                
	
                  3.15.

                	 	
                  Intellectual
                    Property.

                	
                  23

                
	
                  3.16.

                	 	
                  Full
                    Disclosure.

                	
                  24

                
	
                  3.17.

                	 	
                  Environmental
                    Matters.

                	
                  24

                
	
                  3.18.

                	 	
                  Insurance.

                	
                  25

                
	
                  3.19.

                	 	
                  Deposit
                    and Disbursement Accounts.

                	
                  25

                
	
                  3.20.

                	 	
                  [Intentionally
                    Omitted]

                	
                  25

                
	
                  3.21.

                	 	
                  [Intentionally
                    Omitted]

                	
                  25

                
	
                  3.22.

                	 	
                  Agreements
                    and Other Documents.

                	
                  25

                
	
                  3.23.

                	 	
                  Solvency.

                	
                  26

                
	
                  3.24.

                	 	
                  Compliance
                    With Health Care Laws.

                	
                  26

                
	
                  3.25.

                	 	
                  HIPAA
                    Compliance.

                	
                  27

                

        

         

        
          
            
            

          

          
            -i-

            
              

            

          

          
            
            

          

        

         

        
          	
                  4.
                    FINANCIAL
                    STATEMENTS AND INFORMATION

                	
                  28

                
	
                  4.1.

                	 	
                  Reports
                    and Notices.

                	
                  28

                
	
                  4.2.

                	 	
                  Communication
                    with Accountants.

                	
                  28

                
	
                  5.
                    AFFIRMATIVE
                    COVENANTS

                	
                  28

                
	
                  5.1.

                	 	
                  Maintenance
                    of Existence and Conduct of Business.

                	
                  28

                
	
                  5.2.

                	 	
                  Payment
                    of Charges.

                	
                  29

                
	
                  5.3.

                	 	
                  Books
                    and Records.

                	
                  29

                
	
                  5.4.

                	 	
                  Insurance;
                    Damage to or Destruction of Collateral.

                	
                  29

                
	
                  5.5.

                	 	
                  Compliance
                    with Laws and Corporate Integrity Agreement.

                	
                  31

                
	
                  5.6.

                	 	
                  Supplemental
                    Disclosure.

                	
                  31

                
	
                  5.7.

                	 	
                  Intellectual
                    Property.

                	
                  31

                
	
                  5.8.

                	 	
                  Environmental
                    Matters.

                	
                  32

                
	
                  5.9.

                	 	
                  Landlords’
                    Agreements, Mortgagee Agreements, Bailee Letters, Lease Performance
                    and
                    Real Estate Purchases.

                	
                  32

                
	
                  5.10.

                	 	
                  Further
                    Assurances.

                	
                  33

                
	
                  5.11.

                	 	
                  Non-Guarantor
                    Subsidiaries.

                	
                  33

                
	
                  6.
                    NEGATIVE
                    COVENANTS

                	
                  34

                
	
                  6.1.

                	 	
                  Mergers,
                    Subsidiaries, Etc.

                	
                  34

                
	
                  6.2.

                	 	
                  Investments;
                    Loans and Advances.

                	
                  36

                
	
                  6.3.

                	 	
                  Indebtedness.

                	
                  37

                
	
                  6.4.

                	 	
                  Employee
                    Loans and Affiliate Transactions.

                	
                  37

                
	
                  6.5.

                	 	
                  Capital
                    Structure and Business.

                	
                  38

                
	
                  6.6.

                	 	
                  Guaranteed
                    Indebtedness.

                	
                  38

                
	
                  6.7.

                	 	
                  Liens.

                	
                  38

                
	
                  6.8.

                	 	
                  Sale
                    of Stock and Assets.

                	
                  39

                
	
                  6.9.

                	 	
                  ERISA.

                	
                  39

                
	
                  6.10.

                	 	
                  Financial
                    Covenants.

                	
                  39

                
	
                  6.11.

                	 	
                  Hazardous
                    Materials.

                	
                  39

                
	
                  6.12.

                	 	
                  Sale-Leasebacks.

                	
                  40

                
	
                  6.13.

                	 	
                  Cancellation
                    of Indebtedness.

                	
                  40

                
	
                  6.14.

                	 	
                  Restricted
                    Payments.

                	
                  40

                
	
                  6.15.

                	 	
                  Change
                    of Corporate Name or Location; Change of Fiscal Year.

                	
                  40

                
	
                  6.16.

                	 	
                  No
                    Impairment of Intercompany Transfers.

                	
                  41

                
	
                  6.17.

                	 	
                  No
                    Speculative Transactions.

                	
                  41

                
	
                  6.18.

                	 	
                  Leases;
                    Real Estate Purchases.

                	
                  41

                
	
                  6.19.

                	 	
                  Business
                    Associate Agreement.

                	
                  41

                

        

         

        
          
            
            

          

          
            -ii-

            
              

            

          

          
            
            

          

        

         

        
          	
                  7.
                    TERM

                	
                  42

                
	
                  7.1.

                	 	
                  Termination.

                	
                  42

                
	
                  7.2.

                	 	
                  Survival
                    of Obligations Upon Termination of Financing Arrangements.

                	
                  42

                
	
                  8.
                    EVENTS
                    OF DEFAULT; RIGHTS AND REMEDIES

                	
                  43

                
	
                  8.1.

                	 	
                  Events
                    of Default.

                	
                  43

                
	
                  8.2.

                	 	
                  Remedies.

                	
                  44

                
	
                  8.3.

                	 	
                  Waivers
                    by Credit Parties.

                	
                  45

                
	
                  9.
                    ASSIGNMENT
                    AND PARTICIPATIONS; APPOINTMENT OF AGENT

                	
                  46

                
	
                  9.1.

                	 	
                  Assignment
                    and Participations.

                	
                  46

                
	
                  9.2.

                	 	
                  Appointment
                    of Agent.

                	
                  47

                
	
                  9.3.

                	 	
                  Agent's
                    Reliance, Etc.

                	
                  47

                
	
                  9.4.

                	 	
                  GE
                    Capital and Affiliates.

                	
                  47

                
	
                  9.5.

                	 	
                  Lender
                    Credit Decision.

                	
                  48

                
	
                  9.6.

                	 	
                  Indemnification.

                	
                  48

                
	
                  9.7.

                	 	
                  Successor
                    Agent.

                	
                  48

                
	
                  9.8.

                	 	
                  Setoff
                    and Sharing of Payments.

                	
                  49

                
	
                  9.9.

                	 	
                  Advances;
                    Payments; Non-Funding Lenders; Information; Actions in
                    Concert.

                	
                  50

                
	
                  10.
                    SUCCESSORS
                    AND ASSIGNS

                	
                  52

                
	
                  10.1.

                	 	
                  Successors
                    and Assigns.

                	
                  52

                
	
                  11.
                    MISCELLANEOUS

                	
                  53

                
	
                  11.1.

                	 	
                  Complete
                    Agreement; Modification of Agreement.

                	
                  53

                
	
                  11.2.

                	 	
                  Amendments
                    and Waivers.

                	
                  54

                
	
                  11.3.

                	 	
                  Fees
                    and Expenses.

                	
                  55

                
	
                  11.4.

                	 	
                  No
                    Waiver.

                	
                  56

                
	
                  11.5.

                	 	
                  Remedies.

                	
                  56

                
	
                  11.6.

                	 	
                  Severability.

                	
                  56

                
	
                  11.7.

                	 	
                  Conflict
                    of Terms.

                	
                  56

                
	
                  11.8.

                	 	
                  Confidentiality.

                	
                  57

                
	
                  11.9.

                	 	
                  GOVERNING
                    LAW.

                	
                  57

                
	
                  11.10.

                	 	
                  Notices.

                	
                  58

                
	
                  11.11.

                	 	
                  Section
                    Titles.

                	
                  59

                
	
                  11.12.

                	 	
                  Counterparts.

                	
                  59

                
	
                  11.13.

                	 	
                  WAIVER
                    OF JURY TRIAL.

                	
                  59

                
	
                  11.14.

                	 	
                  Press
                    Releases and Related Matters.

                	
                  59

                
	
                  11.15.

                	 	
                  Reinstatement.

                	
                  60

                
	
                  11.16.

                	 	
                  Advice
                    of Counsel.

                	
                  60

                
	
                  11.17.

                	 	
                  No
                    Strict Construction.

                	
                  60

                
	
                  11.18.

                	 	
                  USA
                    PATRIOT Act Notice.

                	
                  60

                
	
                  11.19.

                	 	
                  Effect
                    of Amendment and Restatement on Existing Credit Agreement.

                	
                  61

                

        

         

        
          
            
            

          

          
            -iii-

            
              

            

          

          
            
            

          

        

        
          	
                  12.
                    CROSS-GUARANTY

                	
                  62

                
	
                  12.1.

                	 	
                  Cross-Guaranty.

                	
                  62

                
	
                  12.2.

                	 	
                  Waivers
                    by Borrowers.

                	
                  63

                
	
                  12.3.

                	 	
                  Benefit
                    of Guaranty.

                	
                  63

                
	
                  12.4.

                	 	
                  Subordination
                    of Subrogation, Etc.

                	
                  63

                
	
                  12.5.

                	 	
                  Election
                    of Remedies.

                	
                  63

                
	
                  12.6.

                	 	
                  Limitation.

                	
                  64

                
	
                  12.7.

                	 	
                  Contribution
                    with Respect to Guaranty Obligations.

                	
                  64

                
	
                  12.8.

                	 	
                  Liability
                    Cumulative.

                	
                  65

                

        

      

    

     

    
      
        
        

      

      
        -iv-

        
          

        

      

      
        
        

      

    

    INDEX
      OF APPENDICES

     

    
      	
              Annex
                A (Recitals)

            	
              -

            	
              Definitions

            
	
              Annex
                B (Section 1.2)

            	
              -

            	
              Letters
                of Credit

            
	
              Annex
                C (Section 1.8)

            	
              -

            	
              Cash
                Management System

            
	
              Annex
                D (Section 2.1(a))

            	
              -

            	
              Closing
                Checklist

            
	
              Annex
                E (Section 4.1(a))

            	
              -

            	
              Financial
                Statements and Projections -Reporting

            
	
              Annex
                F (Section 6.10)

            	
              -

            	
              Financial
                Covenants

            
	
              Annex
                G (Section 9.9(a))

            	
              -

            	
              Lenders'
                Wire Transfer Information

            
	
              Annex
                H (Section 11.10)

            	
              -

            	
              Notice
                Addresses

            
	
              
                Annex
                  I (from Annex A-Commitments
                  definition)

              

            	
              -

            	
              Commitments
                as of Closing Date

            

    

     

    
      	
              Exhibit
                1.1(a)(i)

            	
              -

            	
              Form
                of Notice of Revolving Credit Advance

            
	
              Exhibit
                1.1(a)(ii)

            	
              -

            	
              Form
                of Revolving Note

            
	
              Exhibit
                1.5(e)

            	
              -

            	
              Form
                of Notice of Conversion/Continuation

            
	
              Exhibit
                9.1(a)

            	
              -

            	
              Form
                of Assignment Agreement

            

    

     

    
      	
              Schedule
                1.1

            	
              -

            	
              Agent's
                Representatives

            
	
              Disclosure
                Schedule 3.1

            	
              -

            	
              Type
                of Entity; State of Organization

            
	
              Disclosure
                Schedule 3.2

            	
              -

            	
              Executive
                Offices; Collateral Locations; FEIN

            
	
              Disclosure
                Schedule 3.4(a)

            	
              -

            	
              Financial
                Statements

            
	
              Disclosure
                Schedule 3.4(b)

            	
              -

            	
              Projections

            
	
              Disclosure
                Schedule 3.6

            	
              -

            	
              Real
                Estate and Leases

            
	
              Disclosure
                Schedule 3.7

            	
              -

            	
              Labor
                Matters

            
	
              Disclosure
                Schedule 3.8

            	
              -

            	
              Ventures,
                Subsidiaries and Affiliates; Outstanding Stock

            
	
              Disclosure
                Schedule 3.11

            	
              -

            	
              Tax
                Matters

            
	
              Disclosure
                Schedule 3.12

            	
              -

            	
              ERISA
                Plans

            
	
              Disclosure
                Schedule 3.13

            	
              -

            	
              Litigation

            
	
              Disclosure
                Schedule 3.15

            	
              -

            	
              Intellectual
                Property

            
	
              Disclosure
                Schedule 3.17

            	
              -

            	
              Hazardous
                Materials

            
	
              Disclosure
                Schedule 3.18

            	
              -

            	
              Insurance

            
	
              Disclosure
                Schedule 3.19

            	
              -

            	
              Deposit
                and Disbursement Accounts

            
	
              Disclosure
                Schedule 3.22

            	
              -

            	
              Material
                Agreements

            
	
              Disclosure
                Schedule 3.24

            	
              -

            	
              Medicare/Medicaid

            
	
              Disclosure
                Schedule 6.3

            	
              -

            	
              Indebtedness

            
	
              Disclosure
                Schedule 6.4(a)

            	
              -

            	
              Transactions
                with Affiliates

            
	
              Disclosure
                Schedule 6.7

            	
              -

            	
              Existing
                Liens

            

    

    

    
      
        
        

      

      
        -v-

        
          

        

      

      
        
        

      

    

    AMENDED
      AND RESTATED CREDIT AGREEMENT

     

    This
      AMENDED AND RESTATED CREDIT AGREEMENT dated as of May 24, 2007 among ODYSSEY
      HEALTHCARE OPERATING A, LP, a Delaware limited partnership ("OpCoA"),
      ODYSSEY HEALTHCARE OPERATING B, LP, a Delaware limited partnership
      ("OpCoB"),
      HOSPICE OF THE PALM COAST, INC., a Florida not for profit corporation
      ("Palm
      Coast";
      OpCoA,
      OpCoB and Palm Coast being referred to together as the "Borrowers"
      and each
      individually as a "Borrower"),
      the
      other Credit Parties signatory hereto; GENERAL ELECTRIC CAPITAL CORPORATION,
      a
      Delaware corporation (in its individual capacity, "GE
      Capital"),
      for
      itself, as Lender, and as Agent for Lenders; and the other Lenders signatory
      hereto from time to time.

     

    RECITALS

     

    WHEREAS,
      Borrowers are each a party to that certain Credit Agreement dated as of May
      14,
      2004, by and among Agent, GE Capital as the sole lender party thereto, Borrowers
      and the other Credit Parties signatory from time to time thereto, as amended
      by
      that certain Consent and Amendment No. 1 to Credit Agreement dated as of
      November 1, 2004, as further amended by that certain Waiver and Amendment No.
      2
      to Credit Agreement dated as of February 22, 2006, as further amended by that
      certain Consent, Waiver and Amendment No. 3 to Credit Agreement dated as of
      September 29, 2006, as further amended by that certain Consent and Amendment
      No.
      4 to Credit Agreement dated as of October 19, 2006, as further amended by that
      certain Amendment No. 5 to Credit Agreement dated as of May 4, 2007 and as
      further amended by that certain Amendment No. 6 to Credit Agreement dated as
      of
      May 14, 2007 (the "Existing
      Credit Agreement");

     

    WHEREAS,
      the parties desire to amend and restate the Existing Credit Agreement to, among
      other things, (a) increase the amount of the Revolving Loan Commitment and
      (b)
      provide (i) working capital financing for Borrowers, (ii) funds for Permitted
      Acquisitions, Restricted Payments and other general corporate purposes of
      Borrowers and (iii) funds for other purposes permitted hereunder; and for these
      purposes, Lenders are willing to make certain loans and other extensions of
      credit to Borrowers of up to such amount upon the terms and conditions set
      forth
      herein; and

     

    WHEREAS,
      Borrowers have secured all of their obligations under the Loan Documents by
      granting to Agent, for the benefit of Agent and Lenders, a security interest
      in
      and lien upon substantially all of their existing personal property and
      after-acquired personal property; and

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    WHEREAS,
      each Credit Party, other than Borrowers and the Non-Guarantor Subsidiaries,
      has
      guaranteed all of the obligations of Borrowers to Agent and Lenders under the
      Loan Documents and granted to Agent, for the benefit of Agent and Lenders,
      a
      security interest in and lien upon substantially all of its existing personal
      property and after-acquired personal property, including, without limitation,
      the Stock of each Subsidiary owned by such Credit Party to secure such guaranty;
      and

     

    WHEREAS,
      capitalized terms used in this Agreement shall have the meanings ascribed to
      them in Annex A
      and, for
      purposes of this Agreement and the other Loan Documents, the rules of
      construction set forth in Annex A
      shall
      govern. All Annexes, Disclosure Schedules, Exhibits and other attachments
      (collectively, "Appendices")
      hereto,
      or expressly identified to this Agreement, are incorporated herein by reference,
      and taken together with this Agreement, shall constitute but a single agreement.
      These Recitals shall be construed as part of the Agreement.

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants hereinafter
      contained, and for other good and valuable consideration, the parties hereto
      agree as follows:

     

    
      	
              1.

            	
              AMOUNT
                AND TERMS OF CREDIT

            

    

     

    1.1. Credit
      Facilities.

     

    (a) Revolving
      Credit Facility.

     

    (i) Subject
      to
      the terms and conditions hereof, each Lender agrees to make available to
      Borrowers from time to time until the Commitment Termination Date its Pro Rata
      Share of advances (each, a "Revolving
      Credit Advance").
      The
      Pro Rata Share of the Revolving Loan of any Lender shall not at any time exceed
      its separate Revolving Loan Commitment and the Revolving Loans of all Lenders
      shall not at any time exceed the Maximum Amount. The obligations of each Lender
      hereunder shall be several and not joint. Until the Commitment Termination
      Date,
      Borrowers may from time to time borrow, repay and reborrow under this
Section 1.1(a).
      Each
      Revolving Credit Advance shall be made on notice by Borrowers to one of the
      representatives of Agent identified in Schedule 1.1
      at the
      address specified therein. Any such notice must be given no later than (1)
      noon
      (New York time) on the Business Day of the proposed Revolving Credit Advance,
      in
      the case of an Index Rate Loan, or (2) noon (New York time) on the date
      which is 3 Business Days prior to the proposed Revolving Credit Advance, in
      the
      case of a LIBOR Loan. Each such notice (a "Notice
      of Revolving Credit Advance")
      must be
      given in writing (by telecopy or overnight courier) substantially in the form
      of
Exhibit
      1.1(a)(i),
      and
      shall include the information required in such Exhibit and such other
      information as may be reasonably required by Agent. If Borrowers desire to
      have
      the Revolving Credit Advances bear interest by reference to a LIBOR Rate,
      Borrowers must comply with Section 1.5(e).

     

    (ii) Except
      as
      provided in Section 1.12,
      each
      Borrower shall execute and deliver to each Lender a note to evidence the
      Revolving Loan Commitment of that Lender. Each note shall be in the principal
      amount of the Revolving Loan Commitment of the applicable Lender, dated the
      Closing Date and substantially in the form of Exhibit 1.1(a)(ii)
      (each a
      "Revolving
      Note"
      and,
      collectively, the "Revolving
      Notes").
      Each
      Revolving Note shall represent the joint and several obligation of each Borrower
      to pay the full principal amount of the applicable Lender's Revolving Loan
      Commitment or, if less, such Lender's Pro Rata Share of the aggregate unpaid
      principal amount of all Revolving Credit Advances together with interest thereon
      as prescribed in Section 1.5.
      The
      entire unpaid balance of the aggregate Revolving Loan and all other
      non-contingent Obligations shall be due and payable in full in immediately
      available funds on the Commitment Termination Date.

     

    (iii) [Intentionally
      Omitted].

     

    (iv) The
      Borrowers may request, in writing, that the then effective Revolving Loan
      Commitments be increased by up to $10,000,000, which increase shall be effective
      upon (i) the receipt by Agent of written commitments by one or more Lenders
      (which may include new Lenders to this Agreement by means of a joinder in form
      and substance reasonably satisfactory to Agent) to provide the entirety of
      such
      increased amount and (ii) satisfaction of each of the following conditions:
      (A)
      no Event of Default shall have occurred and be continuing or shall occur as
      a
      result of such increase in Revolving Loan Commitments, in each case as of the
      time of the making of such request by Borrowers for such increase through and
      including the date, if any, that the Revolving Loan Commitment has been so
      increased, (B) no Material Adverse Effect shall have occurred as of the time
      of
      the making of such request by Borrowers for such increase through and including
      the date, if any, that the Revolving Loan Commitment has been so increased,
      (C)
      each Credit Party shall, and shall cause its Subsidiaries to, execute and
      deliver such documents and instruments and take such other actions (including,
      without limitation, executing and issuing new Revolving Notes) as may be
      reasonably requested by the Agent in connection with such increase, (D) GE
      Capital, for its own account, shall have received payment in full from Borrowers
      of an arranger fee, if any, referred to in the GE Capital Fee Letter, (E) the
      Lender or Lenders providing such incremental increase in the Revolving Loan
      Commitments shall have received payment in full from Borrowers of any closing
      fee required by such Lenders in connection with such commitment increase and
      (F)
      Borrowers shall have delivered a certificate, in form and substance reasonably
      satisfactory to Agent, indicating that all of the conditions to such increase
      set forth in this clause (iv) have been satisfied. No Lender shall have any
      obligation, without such Lender's written consent, to increase its individual
      Revolving Loan Commitment pursuant to this clause (iv). Within two (2) Business
      Days of the consummation of any increase to the Revolving Loan Commitments
      contemplated by this clause (iv), the Lenders shall effect such inter-Lender
      transfers and settlements necessary to give effect to changes in the Pro Rata
      Shares as a result of such increase. Any Lender that shall fail to receive
      full
      settlement within such two (2) Business Day period shall be entitled to receive
      interest thereon at the Index Rate from the Lender or Lenders that shall have
      failed to make full settlement. Agent hereby agrees to use its best efforts
      to
      solicit Lender commitments to Borrowers' request for any such increased amount
      pursuant to this clause (iv).

     

    (b) [Intentionally
      Omitted].

     

    (c) [Intentionally
      Omitted]

     

    (d) Reliance
      on Notices.
      Agent
      shall be entitled to rely upon, and shall be fully protected in relying upon,
      any Notice of Revolving Credit Advance, Notice of Conversion/Continuation or
      similar notice believed by Agent in good faith to be genuine. Agent may assume
      that each Person executing and delivering any notice in accordance herewith
      was
      duly authorized, unless the responsible individual acting thereon for Agent
      has
      actual knowledge to the contrary. Agent and each Lender may regard any notice
      or
      other communication pursuant to any Loan Document from either Borrower as a
      notice or communication from all Borrowers, and may give any notice or
      communication required or permitted to be given to any Borrower or Borrowers
      hereunder to another Borrower or Borrowers.

     

    1.2. Letters
      of
      Credit.

     

    Subject
      to
      and in accordance with the terms and conditions contained herein and in
Annex B,
      Borrowers shall have the right to request, and Lenders agree to incur, or
      purchase participations in, Letter of Credit Obligations in respect of each
      Borrower. 

    
       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    1.3. Prepayments.

     

    (a) Reductions
      in Revolving Loan Commitments.
      Borrowers may at any time on at least 5 days' prior written notice by Borrowers
      to Agent permanently reduce (but not terminate) the Revolving Loan Commitment;
      provided,
      that
      (A) any such prepayments or reductions shall be in a minimum amount of
      $500,000 and integral multiples of $100,000 in excess of such amount and
      (B) after giving effect to such reductions, Borrowers shall comply with
Section 1.3(b)(i).
      In
      addition, Borrowers may at any time on at least 10 days' prior written notice
      by
      Borrowers to Agent terminate the Revolving Loan Commitment; provided,
      that
      upon such termination, all Loans and other Obligations shall be due and payable
      in full and all Letter of Credit Obligations shall be cash collateralized or
      otherwise satisfied in accordance with Annex B
      hereto.
      Any voluntary prepayment and any reduction or termination of the Revolving
      Loan
      Commitment must be accompanied by payment of any LIBOR funding breakage costs
      in
      accordance with Section 1.13(b).
      Upon any
      such reduction or termination of the Revolving Loan Commitment, each Borrower's
      right to request Revolving Credit Advances, or request that Letter of Credit
      Obligations be incurred on its behalf, shall simultaneously be permanently
      reduced or terminated, as the case may be; provided,
      that a
      permanent reduction of the Revolving Loan Commitment shall require a
      corresponding pro rata reduction in the L/C Sublimit.

     

    (b) Mandatory
      Prepayments.

     

    (i) If
      at any
      time the aggregate outstanding balances of the Revolving Loan exceed the Maximum
      Amount (an "Overadvance"),
      Borrowers shall, within one Business Day of the earlier of Borrower's knowledge
      of the existence of such Overadvance or notice from Agent of the existence
      of
      such Overadvance, repay the aggregate outstanding Revolving Credit Advances
      to
      the extent required to eliminate such excess. If any such excess remains after
      repayment in full of the aggregate outstanding Revolving Credit Advances,
      Borrowers shall provide cash collateral for the Letter of Credit Obligations
      in
      the manner set forth in Annex B
      to the
      extent required to eliminate such excess. 

     

    (ii) After
      the
      occurrence and during the continuation of an Event of Default, within three
      Business Days of receipt by any Credit Party of proceeds of any asset
      disposition (excluding proceeds of asset dispositions permitted by Section 6.8(a)),
      or any
      sale of Stock of any Subsidiary of any Credit Party, Borrowers shall prepay
      the
      Loans in an amount equal to all such proceeds, net of (A) reasonable and
      customary commissions and other reasonable and customary transaction costs,
      fees
      and expenses properly attributable to such transaction and payable by Borrowers
      in connection therewith (in each case, paid to non-Affiliates),
      (B) transfer taxes, (C) amounts payable to holders of senior Liens (to
      the extent such Liens constitute Permitted Encumbrances hereunder), if any,
      and
      (D) an appropriate reserve for income taxes in accordance with GAAP in
      connection therewith. Any such prepayment shall be applied in accordance with
      Section 1.3(c).

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (iii) After
      the
      occurrence and during the continuation of an Event of Default, if any Credit
      Party incurs Indebtedness (other than Indebtedness permitted by Section 6.3),
      no
      later than three Business Days following the date of receipt of the proceeds
      thereof, Borrowers shall prepay the Loans in an amount equal to all such
      proceeds, net of underwriting discounts and commissions and other reasonable
      costs paid to non-Affiliates in connection therewith. Any such prepayment shall
      be applied in accordance with Section 1.3(c).

     

    (c) Application
      of Certain Mandatory Prepayments.
      Any
      prepayments made by any Borrower pursuant to Sections 1.3(b)(ii)
      or
(b)(iii)
      above or
      Section 5.4(c) shall be applied as follows: first, to Fees and reimbursable
      expenses of Agent then due and payable pursuant to any of the Loan Documents;
      second, to interest then due and payable on Revolving Credit Advances; third,
      to
      the principal balance of Revolving Credit Advances outstanding until the same
      has been paid in full; and last, to any Letter of Credit Obligations to provide
      cash collateral therefor in the manner set forth in Annex B,
      until
      all such Letter of Credit Obligations have been fully cash collateralized in
      the
      manner set forth in Annex B.
      The
      Revolving Loan Commitments shall not be permanently reduced by the amount of
      any
      such prepayments.

     

    (d) No
      Implied Consent.
      Nothing
      in this Section 1.3
      shall be
      construed to constitute Agent's or any Lender's consent to any transaction
      that
      is not permitted by other provisions of this Agreement or the other Loan
      Documents.

     

    1.4. Use
      of
      Proceeds.

     

    Borrowers
      shall utilize the proceeds of the Revolving Loan solely for the financing of
      Borrowers' ordinary working capital and Capital Expenditures, to finance
      Permitted Acquisitions, to make Restricted Payments in accordance with
Section
      6.14
      hereof
      and for general corporate needs. 

    
       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

    1.5. Interest
      and Applicable Margins.

     

    (a) Borrowers
      shall pay interest to Agent, for the ratable benefit of Lenders in accordance
      with the various Loans being made by each Lender, in arrears on each applicable
      Interest Payment Date, at the Index Rate plus the Applicable Revolver Index
      Margin per annum or, at the election of Borrowers, the applicable LIBOR Rate
      plus the Applicable Revolver LIBOR Margin per annum, based on the aggregate
      Revolving Credit Advances outstanding from time to time.

     

    As
      of the
      Closing Date, the Applicable Margins are as follows:

     

    
      	
              Applicable
                Revolver Index Margin

               

            	
              0.00%

               

            
	
              Applicable
                Revolver LIBOR Margin

               

            	
              1.00%

               

            

    

    

    The
      Applicable Margins shall be adjusted by reference to the following
      grids:

     

    
      	
              If
                Leverage Ratio is:

            	
              Applicable
                Revolver Index Margin:

            	
              Applicable
                Revolver LIBOR Margin:

            
	
              <
                1.0x

            	
              0.00%

            	
              1.00%

            
	
              >
                1.0x, but < 1.50x

            	
              0.25%

            	
              1.25%

            
	
              >
                1.50x, but < 2.0x

            	
              0.50%

            	
              1.50%

            
	
              >
                2.0x

            	
              0.75%

            	
              1.75%

            

    

    

    Adjustments
      in the Applicable Margins commencing with the Fiscal Quarter ending June 30,
      2007 shall be implemented quarterly on a prospective basis, for each calendar
      month commencing at least five (5) days after the date of delivery to Lenders
      of
      the quarterly unaudited or annual audited (as applicable) Financial Statements
      evidencing the need for an adjustment. Concurrently with the delivery of those
      Financial Statements, Borrowers shall deliver to Agent and Lenders a
      certificate, signed by its chief financial officer, setting forth in reasonable
      detail the basis for the continuance of, or any change in, the Applicable
      Margins.  Failure
      to
      timely deliver such Financial Statements shall, in addition to any other remedy
      provided for in this Agreement, result in an increase in the Applicable Margins
      to the highest level set forth in the foregoing grid, until the first day of
      the
      first calendar month following the delivery of those Financial Statements
      demonstrating that such an increase is not required. If an Event of Default
      has
      occurred and is continuing at the time any reduction in the Applicable Margins
      is to be implemented, that reduction shall be deferred until the first day
      of
      the first calendar month following the date on which such Event of Default
      is
      waived or cured. If, as a result of any restatement of or other adjustment
      to
      the Financial Statements or for any other reason, Agent or Requisite Lenders
      determine that (a) the Leverage Ratio as calculated by Borrowers as of any
      applicable date was inaccurate and (b) a proper calculation of the Leverage
      Ratio would have resulted in a higher level of pricing for any period, then
      Borrowers shall automatically and retroactively be obligated to pay to Lenders,
      and shall pay to Lenders promptly on demand by Agent, an amount equal to the
      excess of the amount of interest and fees that should have been paid for such
      period over the amount of interest and fees actually paid for such
      period.

     

    (b) If
      any
      payment on any Loan becomes due and payable on a day other than a Business
      Day,
      the maturity thereof will be extended to the next succeeding Business Day
      (except as set forth in the definition of LIBOR Period) and, with respect to
      payments of principal, interest thereon shall be payable at the then applicable
      rate during such extension.

     

    (c) All
      computations of Fees calculated on a per annum basis and interest shall be
      made
      by Agent on the basis of a 360-day year (or, in the case of Index Rate Loans,
      calculated on the basis of a 365/366-day year), in each case for the actual
      number of days occurring in the period for which such interest and Fees are
      payable. The Index Rate is a floating rate determined for each day. Each
      determination by Agent of an interest rate and Fees hereunder shall be final,
      binding and conclusive on Borrowers, absent manifest error.

     

    (d) So
      long as
      an Event of Default has occurred and is continuing under Section 8.1(h)
      or
(i)
      or so
      long as any Event of Default has occurred and is continuing under Section
      8.1(a)
      and at
      the election of Agent (or upon the written request of Requisite Lenders)
      confirmed by written notice from Agent to Borrowers, the interest rates
      applicable to the Loans and the Letter of Credit Fees shall be increased by
      two
      percentage points (2%) per annum above the rates of interest or the rate of
      such
      Fees otherwise applicable hereunder ("Default
      Rate"),
      and
      all outstanding Obligations shall bear interest at the Default Rate applicable
      to such Obligations. Interest and Letter of Credit Fees at the Default Rate
      shall (x) with respect to any Event of Default under Section
      8.1(h)
      or
(i),
      accrue
      from the initial date of such Event of Default or (y) with respect to any Event
      of Default under Section
      8.1(a),
      accrue
      from the date of receipt of written notice from Agent of such Event of Default
      and shall continue until that Event of Default is cured or waived and shall
      be
      payable upon demand.

     

    (e) Subject
      to
      the conditions precedent set forth in Section 2.2,
      Borrowers shall have the option to (i) request that any Revolving Credit
      Advance be made as a LIBOR Loan, (ii) convert at any time all or any part
      of outstanding Loans from Index Rate Loans to LIBOR Loans, (iii) convert
      any LIBOR Loan to an Index Rate Loan, subject to payment of LIBOR breakage
      costs
      in accordance with Section 1.13(b)
      if such
      conversion is made prior to the expiration of the LIBOR Period applicable
      thereto, or (iv) continue all or any portion of any Loan as a LIBOR Loan
      upon the expiration of the applicable LIBOR Period and the succeeding LIBOR
      Period of that continued Loan shall commence on the first day after the last
      day
      of the LIBOR Period of the Loan to be continued. Any Loan or group of Loans
      having the same proposed LIBOR Period to be made or continued as, or converted
      into, a LIBOR Loan must be in a minimum amount of $500,000 and integral
      multiples of $100,000 in excess of such amount. Any such election must be made
      by noon (New York time) on
      the 3rd
      Business Day prior to (1) the date of any proposed Advance which is to bear
      interest at the LIBOR Rate, (2) the end of each LIBOR Period with respect
      to any LIBOR Loans to be continued as such, or (3) the date on which
      Borrowers wish to convert any Index Rate Loan to a LIBOR Loan for a LIBOR Period
      designated by Borrowers in such election. If no election is received with
      respect to a LIBOR Loan by noon (New York time) on the 3rd Business Day prior
      to
      the end of the LIBOR Period with respect thereto (or if an Event of Default
      has
      occurred and is continuing or if the additional conditions precedent set forth
      in Section 2.2
      shall not
      have been satisfied), that LIBOR Loan shall be converted to an Index Rate Loan
      at the end of its LIBOR Period. Borrowers must make such election by notice
      to
      Agent in writing, by telecopy or overnight courier. In the case of any
      conversion or continuation, such election must be made pursuant to a written
      notice (a "Notice
      of Conversion/Continuation")
      in the
      form of Exhibit
      1.5(e).

     

    (f) Notwithstanding
      anything to the contrary set forth in this Section 1.5,
      if a
      court of competent jurisdiction determines in a final order that the rate
      of interest
      payable hereunder exceeds the highest rate of interest permissible under law
      (the "Maximum
      Lawful Rate"),
      then
      so long as the Maximum Lawful Rate would be so exceeded, the rate of interest
      payable hereunder shall be equal to the Maximum Lawful Rate; provided,
      however,
      that if
      at any time thereafter the rate of interest payable hereunder is less than
      the
      Maximum Lawful Rate, Borrowers shall continue to pay interest hereunder at
      the
      Maximum Lawful Rate until such time as the total interest received by Agent,
      on
      behalf of Lenders, is equal to the total interest that would have been received
      had the interest rate payable hereunder been (but for the operation of this
      paragraph) the interest rate payable since the Closing Date as otherwise
      provided in this Agreement. Thereafter, interest hereunder shall be paid at
      the
      rate(s) of interest and in the manner provided in Sections 1.5(a)
      through
(e),
      unless
      and until the rate of interest again exceeds the Maximum Lawful Rate, and at
      that time this paragraph shall again apply. In no event shall the total interest
      received by any Lender pursuant to the terms hereof exceed the amount that
      such
      Lender could lawfully have received had the interest due hereunder been
      calculated for the full term hereof at the Maximum Lawful Rate. If the Maximum
      Lawful Rate is calculated pursuant to this paragraph, such interest shall be
      calculated at a daily rate equal to the Maximum Lawful Rate divided by the
      number of days in the year in which such calculation is made. If,
      notwithstanding the provisions of this Section 1.5(f),
      a court
      of competent jurisdiction shall finally determine that a Lender has received
      interest hereunder in excess of the Maximum Lawful Rate, Agent shall, to the
      extent permitted by applicable law, promptly apply such excess in the order
      specified in Section 1.11
      and
      thereafter shall refund any excess to Borrowers or as a court of competent
      jurisdiction may otherwise order.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    1.6. [Intentionally
      Omitted]

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    1.7. [Intentionally
      Omitted].

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    1.8. Cash
      Management Systems.

     

    On
      or
      prior to the date of the making of the initial Revolving Credit Advance or
      the
      incurrence of the initial Letter of Credit Obligations, Borrowers will establish
      and will maintain until the Termination Date, the cash management systems
      described in Annex C
      (the
      "Cash
      Management Systems").

     

    1.9. Fees.

     

    (a) Borrowers
      shall pay to GE Capital, individually, the Fees specified in that certain fee
      letter of even date herewith among Borrowers and GE Capital (the "GE
      Capital Fee Letter"),
      at the
      times specified for payment therein. 

     

    (b) As
      additional compensation for the Lenders, Borrowers shall pay to Agent, for
      the
      ratable benefit of Lenders, in arrears, on or before the fifth Business Day
      of
      each month prior to the Commitment Termination Date and on the Commitment
      Termination Date, a Fee for Borrowers' non-use of the Revolving Loan Commitments
      in an amount equal to one quarter of one percent (0.25%) per annum (calculated
      on the basis of a 360 day year for actual days elapsed) multiplied by the
      difference between (x) the Maximum Amount (as it may be adjusted from time
      to time) and (y) the average for the period of the daily closing balances
      of the aggregate Revolving Loan outstanding during the period for which such
      Fee
      is due.

     

    (c) Borrowers
      shall pay to Agent, for the ratable benefit of Lenders, the Letter of Credit
      Fee
      as provided in Annex
      B.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    1.10. Receipt
      of
      Payments.

     

    Borrowers
      shall make each payment under this Agreement not later than 2:00 p.m. (New
      York time) on the day when due in immediately available funds in Dollars to
      the
      Collection Account. For purposes of computing interest and Fees as of any date,
      all payments shall be deemed received on the Business Day on which immediately
      available funds therefor are received in the Collection Account prior to
      2:00 p.m. New York time. Payments received after 2:00 p.m. New York
      time on any Business Day or on a day that is not a Business Day shall be deemed
      to have been received on the following Business Day.

     

    1.11. Application
      and Allocation of Payments.

     

    (a) So
      long as
      no Event of Default has occurred and is continuing, (i) voluntary
      prepayments shall be applied as determined by Borrowers, subject to the
      provisions of Section 1.3(a);
      and
      (ii) mandatory prepayments shall be applied as set forth in Section 1.3(c).
      All
      payments and prepayments applied to a particular Loan shall be applied ratably
      to the portion thereof held by each Lender as determined by its Pro Rata
      Share. As to any other payment, and as to all payments made when an Event of
      Default has occurred and is continuing or following the Commitment Termination
      Date, each Borrower hereby irrevocably waives the right to direct the
      application of any and all payments received from or on behalf of such Borrower,
      and each Borrower hereby irrevocably agrees that Agent shall have the continuing
      exclusive right to apply any and all such payments against the Obligations
      of
      Borrowers as Agent may deem advisable notwithstanding any previous entry by
      Agent in the Loan Account or any other books and records. In the absence of
      a
      specific determination by Agent with respect thereto, payments shall be applied
      to amounts then due and payable in the following order: (1) to Fees and
      Agent's expenses reimbursable hereunder; (2) to interest on the other
      Loans, ratably in proportion to the interest accrued as to each Loan;
      (3) to principal payments on the other Loans and to provide cash collateral
      for Letter of Credit Obligations in the manner described in Annex B,
      ratably
      to the aggregate, combined principal balance of the other Loans and outstanding
      Letter of Credit Obligations; and (4) to all other Obligations, including
      expenses of Lenders to the extent reimbursable under Section 11.3.
      

     

    (b) At
      any
      time an Event of Default under Section
      8.1(a)
      has
      occurred and is continuing for at least ten (10) Business Days, Agent is
      authorized to, and at its sole election may, charge to the Revolving Loan
      balance on behalf of each Borrower and cause to be paid all Fees, expenses,
      Charges, costs (including insurance premiums in accordance with Section 5.4(a))
      and
      interest and principal, other than principal of the Revolving Loan, owing by
      Borrowers under this Agreement or any of the other Loan Documents if and to
      the
      extent Borrowers fail to pay promptly any such amounts as and when due, it
      being
      understood that in the event Agent charges the Revolving Loan balance for any
      unpaid amount, the Event of Default then in existence under Section
      8.1(a)
      solely as
      a result of Borrowers' failure to pay such amount shall be cured by such charge
      to Borrowers' Revolving Loan balance. At Agent's option and to the extent
      permitted by law, any charges so made shall constitute part of the Revolving
      Loan hereunder. 

     

    1.12. Loan
      Account and Accounting.

     

    Agent
      shall maintain a loan account (the "Loan
      Account")
      on its
      books to record: all Advances, all payments made by Borrowers, and all other
      debits and credits as provided in this Agreement with respect to the Loans
      or
      any other Obligations. All entries in the Loan Account shall be made in
      accordance with Agent's customary accounting practices as in effect from time
      to
      time. The balance in the Loan Account, as recorded on Agent's most recent
      printout or other written statement, shall be prima facie evidence of the
      amounts due and owing to Agent and Lenders by each Borrower; provided,
      that any
      failure to so record or any error in so recording shall not limit or otherwise
      affect any Borrower's duty to pay the Obligations. Agent shall render to
      Borrowers a monthly accounting of transactions with respect to the Loans setting
      forth the balance of the Loan Account as to Borrowers for the immediately
      preceding month. Unless Borrowers notify Agent in writing of any objection
      to
      any such accounting (specifically describing the basis for such objection),
      within 45 days after the date thereof, each and every such accounting shall
      (absent manifest error) be deemed final, binding and conclusive on Borrowers
      in
      all respects as to all matters reflected therein. Only those items expressly
      objected to in such notice shall be deemed to be disputed by
      Borrowers.
      Notwithstanding any provision herein contained to the contrary, any Lender
      may
      elect (which election may be revoked) to dispense with the issuance of Notes
      to
      that Lender and may rely on the Loan Account as evidence of the amount of
      Obligations from time to time owing to it.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    1.13. Indemnity.

     

    (a) Each
      Credit Party that is a signatory hereto shall jointly and severally indemnify
      and hold harmless each of Agent, Lenders and their respective Affiliates, and
      each such Person's respective officers, directors, employees, attorneys, agents
      and representatives (each, an "Indemnified
      Person"),
      from
      and against any and all suits, actions, proceedings, claims, damages, losses,
      liabilities and expenses (including reasonable attorneys' fees and disbursements
      and other costs of investigation or defense, including those incurred upon
      any
      appeal) that may be instituted or asserted against or incurred by any such
      Indemnified Person as the result of credit having been extended, suspended
      or
      terminated under this Agreement and the other Loan Documents and the
      administration of such credit, and in connection with or arising out of the
      transactions contemplated hereunder and thereunder and any actions or failures
      to act in connection therewith, including any and all Environmental Liabilities
      and legal costs and expenses arising out of or incurred in connection with
      disputes between or among any parties to any of the Loan Documents
      (collectively, "Indemnified
      Liabilities");
      provided,
      that no
      such Credit Party shall be liable for any indemnification to an Indemnified
      Person to the extent that any such suit, action, proceeding, claim, damage,
      loss, liability or expense results from that Indemnified Person's bad faith,
      gross negligence or willful misconduct. NO INDEMNIFIED PERSON SHALL BE
      RESPONSIBLE OR LIABLE TO ANY OTHER PARTY TO ANY LOAN DOCUMENT, ANY SUCCESSOR,
      ASSIGNEE OR THIRD PARTY BENEFICIARY OF SUCH PERSON OR ANY OTHER PERSON ASSERTING
      CLAIMS DERIVATIVELY THROUGH SUCH PARTY, FOR INDIRECT, PUNITIVE, EXEMPLARY OR
      CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED AS A RESULT OF CREDIT HAVING BEEN
      EXTENDED, SUSPENDED OR TERMINATED UNDER ANY LOAN DOCUMENT OR AS A RESULT OF
      ANY
      OTHER TRANSACTION CONTEMPLATED HEREUNDER OR THEREUNDER.

     

    (b) To
      induce
      Lenders to provide the LIBOR Rate option on the terms provided herein, if
      (i) any LIBOR Loans are repaid in whole or in part prior to the last day of
      any applicable LIBOR Period (whether that repayment is made pursuant to any
      provision of this Agreement or any other Loan Document or occurs as a result
      of
      acceleration, by operation of law or otherwise); (ii) any Borrower shall
      default in payment when due of the principal amount of or interest on any LIBOR
      Loan; (iii) any Borrower shall refuse to accept any borrowing of, or shall
      request a termination of, any borrowing of, conversion into or continuation
      of,
      LIBOR Loans after Borrowers have given notice requesting the same in accordance
      herewith; or (iv) any Borrower shall fail to make any prepayment of a LIBOR
      Loan after Borrowers
      have
      given
      a notice thereof in accordance herewith, then Borrowers shall jointly and
      severally indemnify and hold harmless each Lender from and against all losses,
      costs and expenses resulting from or arising from any of the foregoing. Such
      indemnification shall include any loss (including loss of margin) or expense
      arising from the reemployment of funds obtained by it or from fees payable
      to
      terminate deposits from which such funds were obtained. For the purpose of
      calculating amounts payable to a Lender under this subsection, each Lender
      shall
      be deemed to have actually funded its relevant LIBOR Loan through the purchase
      of a deposit bearing interest at the LIBOR Rate in an amount equal to the amount
      of that LIBOR Loan and having a maturity comparable to the relevant LIBOR
      Period; provided,
      that
      each Lender may fund each of its LIBOR Loans in any manner it sees fit, and
      the
      foregoing assumption shall be utilized only for the calculation of amounts
      payable under this subsection. This covenant shall survive the termination
      of
      this Agreement and the payment of the Notes and all other amounts payable
      hereunder. As promptly as practicable under the circumstances, each Lender
      shall
      provide Borrowers with its written calculation of all amounts payable pursuant
      to this Section 1.13(b),
      and such
      calculation shall be binding (absent manifest error) on the parties hereto
      unless Borrowers shall object in writing within 10 Business Days of receipt
      thereof, specifying the basis for such objection in reasonable
      detail.

     

    
      
        
        

      

      
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    1.14. Access.

     

    Except
      to
      the extent prohibited by applicable law and by confidentiality agreements,
      each
      Credit Party that is a party hereto shall, during normal business hours, from
      time to time upon 3 Business Days' prior notice as frequently as Agent
      reasonably determines to be appropriate, but, unless an Event of Default has
      occurred and is continuing, no more than twice in any Fiscal Year:
      (a) provide Agent and any of its officers, employees and agents access to
      its properties, facilities, advisors and employees (including officers) of
      each
      Credit Party and to the Collateral, (b) permit Agent, and any of its
      officers, employees and agents, to inspect, audit and make extracts from any
      Credit Party's books and records, and (c) permit Agent, and its officers,
      employees and agents, to inspect, review, evaluate and make test verifications
      and counts of the Accounts, Inventory and other Collateral of any Credit Party;
      provided, that if no Event of Default has occurred and is continuing, Borrowers
      shall not be responsible for the costs of any such visits, inspections or
      verifications in any Fiscal Year. If a Default or Event of Default has occurred
      and is continuing or if access is necessary to preserve or protect the
      Collateral as determined by Agent, each such Credit Party shall provide such
      access to Agent and to each Lender at all times and without advance notice.
      Each
      Credit Party shall, so long as any Event of Default has occurred and is
      continuing, make available to Agent and its counsel, as quickly as is possible
      under the circumstances, originals or copies of all books and records that
      Agent
      may reasonably request. Each Credit Party shall deliver any document or
      instrument necessary for Agent, as it may from time to time reasonably request,
      to obtain records from any service bureau or other Person that maintains records
      for such Credit Party, and shall maintain duplicate records or supporting
      documentation on media, including computer tapes and discs owned by such Credit
      Party. Representatives of other Lenders may accompany Agent's representatives
      on
      regularly scheduled audits at no charge to Borrowers.

     

    
      
        
        

      

      
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    1.15. Taxes.

     

    (a) Any
      and
      all payments by each Borrower hereunder (including any payments made pursuant
      to
Section 12)
      or under
      the Notes shall be made, in accordance with this Section 1.15,
      free and
      clear of and without deduction for any and all present or future Taxes. If
      any
      Borrower shall be required by law to deduct any Taxes from or in respect of
      any
      sum payable hereunder (including any sum payable pursuant to Section 12)
      or under
      the Notes, (i) the sum payable shall be increased as much as shall be
      necessary so that after making all required deductions (including deductions
      applicable to additional sums payable under this Section 1.15)
      Agent or
      Lenders, as applicable, receive an amount equal to the sum they would have
      received had no such deductions been made, (ii) such Borrower shall make
      such deductions, and (iii) such Borrower shall pay the full amount deducted
      to the relevant taxing or other authority in accordance with applicable law.
      Within 45 days after the date of any payment of Taxes, Borrowers shall furnish
      to Agent the original or a certified copy of a receipt evidencing payment
      thereof, or other evidence of such payment reasonably satisfactory to Agent.
      Agent and Lenders shall not be obligated to return or refund any amounts
      received pursuant to this Section.

     

    (b) Each
      Credit Party that is a signatory hereto shall jointly and severally indemnify
      and, within 10 days of written demand therefor, pay Agent and each Lender for
      the full amount of Taxes (including any Taxes imposed by any jurisdiction on
      amounts payable under this Section 1.15)
      paid by
      Agent or such Lender, as appropriate, and any liability (including penalties,
      interest and expenses) arising therefrom or with respect thereto, whether or
      not
      such Taxes were correctly or legally asserted.

     

    (c) Each
      Lender organized under the laws of a jurisdiction outside the United States
      (a
      "Foreign
      Lender")
      as to
      which payments to be made under this Agreement or under the Notes are exempt
      from United States withholding tax under an applicable statute or tax treaty
      shall provide to Borrowers and Agent a properly completed and executed IRS
      Form
      W-8ECI or Form W-8BEN or other applicable form, certificate or document
      prescribed by the IRS or the United States certifying as to such Foreign
      Lender's entitlement to such exemption (a "Certificate
      of Exemption").
      Any
      foreign Person that seeks to become a Lender under this Agreement shall provide
      a Certificate of Exemption to Borrowers and Agent prior to becoming a Lender
      hereunder. No foreign Person may become a Lender hereunder if such Person fails
      to deliver a Certificate of Exemption
      in
      advance of becoming a Lender.

     

    1.16. Capital
      Adequacy; Increased Costs; Illegality.

     

    (a) If
      any
      Lender shall have determined that any law, treaty, governmental (or
      quasi-governmental) rule, regulation, guideline or order regarding capital
      adequacy, reserve requirements or similar requirements or compliance by any
      Lender with any request or directive regarding capital adequacy, reserve
      requirements or similar requirements (whether or not having the force of law),
      in each case, adopted after the Closing Date, from any central bank or other
      Governmental Authority increases or would have the effect of increasing the
      amount of capital, reserves or other funds required to be maintained by such
      Lender and thereby reducing the rate of return on such Lender's capital as
      a
      consequence of its obligations hereunder, then Borrowers shall from time to
      time
      within 5 Business Days of written demand by such Lender (with a copy of such
      demand to Agent) pay to Agent, for the account of such Lender, additional
      amounts sufficient to compensate such Lender for such reduction. A certificate
      as to the amount of that reduction and showing the basis of the computation
      thereof in reasonable detail submitted by such Lender to Borrowers and to Agent
      shall, absent manifest error, be final, conclusive and binding for all
      purposes.

     

    
      
        
        

      

      
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    (b) If,
      due to
      either (i) the introduction of or any change in any law or regulation (or
      any change in the interpretation thereof) or (ii) the compliance with any
      guideline or request from any central bank or other Governmental Authority
      (whether or not having the force of law), in each case adopted after the Closing
      Date, there shall be any increase in the cost to any Lender of agreeing to
      make
      or making, funding or maintaining any Loan, then Borrowers shall from time
      to
      time, within 5 Business Days of written demand by such Lender (with a copy
      of
      such demand to Agent), pay to Agent for the account of such Lender additional
      amounts sufficient to compensate such Lender for such increased cost. A
      certificate as to the amount of such increased cost in reasonable detail,
      submitted to Borrowers and to Agent by such Lender, shall be conclusive and
      binding on Borrowers for all purposes, absent manifest error. Each Lender agrees
      that, as promptly as practicable after it becomes aware of any circumstances
      referred to above which would result in any such increased cost, the affected
      Lender shall, to the extent not inconsistent with such Lender's internal
      policies of general application, use reasonable commercial efforts to minimize
      costs and expenses incurred by it and payable to it by Borrowers pursuant to
      this Section 1.16(b).

     

    (c) Notwithstanding
      anything to the contrary contained herein, if, after the Closing Date, the
      introduction of or any change in any law or regulation (or any change in the
      interpretation thereof) shall make it unlawful, or any central bank or other
      Governmental Authority shall assert that it is unlawful, for any Lender to
      agree
      to make or to make or to continue to fund or maintain any LIBOR Loan, then,
      unless that Lender is able to make or to continue to fund or to maintain such
      LIBOR Loan at another branch or office of that Lender without, in that Lender's
      opinion, adversely affecting it or its Loans or the income obtained therefrom,
      on written notice thereof and demand therefor by such Lender to Borrowers
      through Agent, (i) the obligation of such Lender to agree to make or to
      make or to continue to fund or maintain LIBOR Loans shall terminate and
      (ii)  Borrowers shall forthwith prepay in full all outstanding LIBOR Loans
      owing by Borrowers to such Lender, together with interest accrued thereon,
      unless Borrowers, within 5 Business Days after the delivery of such notice
      and
      demand, convert all LIBOR Loans into Index Rate Loans.

     

    (d) Within
      15
      days after receipt by Borrowers of written notice and demand from any Lender
      (an
      "Affected
      Lender")
      for
      payment of additional amounts or increased costs as provided in Sections 1.15(a),
      1.16(a)
      or
1.16(b),
      Borrowers may, at their option, notify Agent and such Affected Lender of its
      intention to replace the Affected Lender. So long as no Default or Event of
      Default has occurred and is continuing, Borrowers, with the consent of Agent,
      may obtain, at Borrowers' expense, a
      replacement Lender ("Replacement
      Lender")
      for the
      Affected Lender, which Replacement Lender must be reasonably satisfactory to
      Agent. If Borrowers obtain a Replacement Lender within 90 days following notice
      of their intention to do so, the Affected Lender must sell and assign its Loans
      and Commitments to such Replacement Lender for an amount equal to the principal
      balance of all Loans held by the Affected Lender and all accrued interest and
      Fees with respect thereto through the date of such sale; provided,
      that
      Borrowers shall have reimbursed such Affected Lender for the additional amounts
      or increased costs that it is entitled to receive under this Agreement through
      the date of such sale and assignment.
      Notwithstanding the foregoing, Borrowers shall not have the right to obtain
      a
      Replacement Lender if the Affected Lender rescinds its demand for increased
      costs or additional amounts within 15 days following its receipt of Borrowers'
      notice of intention to replace such Affected Lender. Furthermore, if Borrowers
      give a notice of intention to replace and do not so replace such Affected Lender
      within 90 days thereafter, Borrowers' rights under this Section 1.16(d)
      shall
      terminate with respect to such replacement attempt and Borrowers shall promptly
      pay all increased costs or additional amounts demanded by such Affected Lender
      pursuant to Sections 1.15(a),
      1.16(a)
      and
1.16(b).

     

    
      
        
        

      

      
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    1.17. Single
      Loan;
      Joint
      and Several Obligations.

     

    All
      Loans
      to each Borrower and all of the other Obligations of each Borrower arising
      under
      this Agreement and the other Loan Documents shall constitute one general joint
      and several obligation of Borrowers secured, until the Termination Date, by
      all
      of the Collateral.

     

    
      
        
        

      

      
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              2.

            	
              CONDITIONS
                PRECEDENT

            

    

     

    2.1. Conditions
      to the Initial Loans.

     

    No
      Lender
      shall be obligated to make the initial Revolving Credit Advance or incur the
      initial Letter of Credit Obligations, or to take, fulfill, or perform any other
      action hereunder, until the following conditions have been satisfied or provided
      for in a manner satisfactory to Agent, or waived in writing by Agent and
      Lenders: 

     

    (a) Credit
      Agreement; Loan Documents.
      This
      Agreement or counterparts hereof shall have been duly executed by, and delivered
      to, Borrowers, each other Credit Party, Agent and Lenders; and Agent shall
      have
      received such documents, instruments, agreements and legal opinions as Agent
      shall reasonably request in connection with the transactions contemplated by
      this Agreement and the other Loan Documents, including all those listed in
      the
      Closing Checklist attached hereto as Annex D,
      each in
      form and substance reasonably satisfactory to Agent. 

     

    (b) Approvals.
      Agent
      shall have received (i) satisfactory evidence that the Credit Parties have
      obtained all required consents and approvals of all Persons including all
      requisite Governmental Authorities, to the execution, delivery and performance
      of this Agreement and the other Loan Documents or (ii) an officer's
      certificate in form and substance reasonably satisfactory to Agent affirming
      that no such consents or approvals are required.

     

    (c) Payment
      of Fees.
      Borrowers shall have paid the Fees required to be paid on the Closing Date
      in
      the respective amounts specified in Section 1.9
      (including the Fees specified in the GE Capital Fee Letter), and shall have
      reimbursed Agent for all fees, costs and expenses of closing incurred (to the
      extent Borrowers have been notified of such costs and expenses) as of or prior
      to the Closing Date.

     

    (d) Capital
      Structure; Other Indebtedness.
      The
      capital structure of each Credit Party and the terms and conditions of all
      Indebtedness of each Credit Party shall be acceptable to Agent in its sole
      discretion.

     

    (e) Due
      Diligence.
      Agent
      shall have completed its legal due diligence (including, without limitation,
      lien, tax lien, judgment and litigation searches), with results reasonably
      satisfactory to Agent.

     

    
      
        
        

      

      
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    2.2. Further
      Conditions to Each Loan.

     

    Except
      as
      otherwise expressly provided herein, no Lender shall be obligated to fund any
      Advance, convert or continue any Loan as a LIBOR Loan or incur any Letter of
      Credit Obligation, if, as of the date thereof:

     

    (a) any
      representation or warranty by any Credit Party contained herein or in any other
      Loan Document is untrue or incorrect in any material respect as of such date,
      except to the extent that such representation or warranty expressly relates
      to
      an earlier date and except for changes therein expressly permitted or expressly
      contemplated by this Agreement and Agent or Requisite Lenders have determined
      not to make such Advance, convert or continue any Loan as LIBOR Loan or incur
      such Letter of Credit Obligation as a result of the fact that such warranty
      or
      representation is untrue or incorrect in any material respect;

     

    (b) any
      event
      or circumstance having a Material Adverse Effect has occurred since the date
      hereof as determined by the Requisite Lenders and Agent or Requisite Lenders
      have determined not to make such Advance, convert or continue any Loan as a
      LIBOR Loan or incur such Letter of Credit Obligation as a result of the fact
      that such event or circumstance has occurred;

     

    (c) any
      Default or Event of Default has occurred and is continuing or would result
      after
      giving effect to any Advance (or the incurrence of any Letter of Credit
      Obligation), and Agent or Requisite Lenders shall have determined not to make
      any Advance, convert or continue any Loan as a LIBOR Loan or incur any Letter
      of
      Credit Obligation as a result of that Default or Event of Default; or

     

    (d) after
      giving effect to any Advance (or the incurrence of any Letter of Credit
      Obligations), the outstanding principal amount of the aggregate Revolving Loans
      would exceed the Maximum Amount.

     

    The
      request and acceptance by any Borrower of the proceeds of any Advance or the
      incurrence of any Letter of Credit Obligations shall be deemed to constitute,
      as
      of the date thereof, (i) a representation and warranty by Borrowers that
      the conditions in this Section 2.2
      have been
      satisfied and (ii) a reaffirmation by Borrowers of the cross-guaranty
      provisions set forth in Section 12
      and of
      the granting and continuance of Agent's Liens, on behalf of itself and Lenders,
      pursuant to the Collateral Documents.

     

    
      
        
        

      

      
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              3.

            	
              REPRESENTATIONS
                AND WARRANTIES

            

    

     

    To
      induce
      Lenders to make the Loans and to incur Letter of Credit Obligations, the Credit
      Parties executing this Agreement, jointly and severally, make the following
      representations and warranties to Agent and each Lender with respect to all
      Credit Parties, each and all of which shall survive the execution and delivery
      of this Agreement. 

     

    3.1. Existence;
      Compliance with Law.

     

    Each
      Credit Party (a) is a corporation, limited liability company or limited
      partnership duly organized, validly existing and in good standing under the
      laws
      of its respective jurisdiction of incorporation or organization set forth in
      Disclosure
      Schedule 3.1;
      (b) is duly qualified to conduct business and is in good standing in each
      other jurisdiction where its ownership or lease of property or the conduct
      of
      its business requires such qualification, except where the failure to be so
      qualified would not result in exposure to losses, damages or liabilities in
      excess of $1,000,000; (c) has the requisite power and authority and the
      legal right to own, pledge, mortgage or otherwise encumber and operate its
      properties, to lease the property it operates under lease and to conduct its
      business as now, heretofore and proposed to be conducted; (d) subject to
      specific representations regarding Environmental Laws, has all material
      licenses, permits, consents or approvals from or by, and has made all material
      filings with, and has given all material notices to, all Governmental
      Authorities having jurisdiction, to the extent required for such ownership,
      operation and conduct; (e) is in compliance with its charter and bylaws or
      partnership or operating agreement, as applicable; and (f) subject to
      specific representations set forth herein regarding ERISA, Environmental Laws,
      tax and other laws, is in compliance with all applicable provisions of law,
      except where the failure to comply, individually or in the aggregate, could
      not
      reasonably be expected to have a Material Adverse Effect.

     

    3.2. Executive
      Offices, Collateral Locations, FEIN.

     

    As
      of the
      Closing Date, each Credit Party’s name as it appears in official filings in its
      state of incorporation or organization, state of incorporation or organization,
      organization type, organization number, if any, issued by its state of
      incorporation or organization, and the current location of each Credit Party's
      chief executive office and business premises are set forth in Disclosure
      Schedule 3.2,
      and,
      except as set forth on Disclosure
      Schedule 3.2
      none of
      such locations has changed to another state within twelve months preceding
      the
      Closing Date and each Credit Party has only one state of incorporation or
      organization. In addition, Disclosure
      Schedule 3.2
      lists the
      federal employer identification number of each Credit Party.

     

    
      
        
        

      

      
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    3.3. Power,
      Authorization, Enforceable Obligations.

     

    The
      execution, delivery and performance by each Credit Party of the Loan Documents
      to which it is a party and the creation of all Liens provided for therein:
      (a) are within such Credit Party's power; (b) have been duly
      authorized by all necessary corporate, limited liability company or limited
      partnership action; (c) do not contravene any provision of such Credit
      Party's charter, bylaws or partnership or operating agreement as applicable;
      (d) do not violate any law or regulation, or any order or decree of any
      court or Governmental Authority; (e) do not conflict with or result in the
      breach or termination
      of, constitute a default under or accelerate or permit the acceleration of
      any
      performance required by, any indenture, mortgage, deed of trust, lease,
      agreement or other instrument to which such Person is a party or by which such
      Person or any of its property is bound; (f) do not result in the creation
      or imposition of any Lien upon any of the property of such Person other than
      those in favor of Agent, on behalf of itself and Lenders, pursuant to the Loan
      Documents; and (g) do not require the consent or approval of any
      Governmental Authority or any other Person, except those that have been obtained
      or are otherwise referred to in Section 2.1(b),
      all of
      which will have been duly obtained, made or complied with prior to the Closing
      Date. Each of the Loan Documents shall be duly executed and delivered by each
      Credit Party that is a party thereto and each such Loan Document shall
      constitute a legal, valid and binding obligation of such Credit Party
      enforceable against it in accordance with its terms, subject to applicable
      bankruptcy, insolvency, reorganization, moratorium or other laws affecting
      creditors' rights generally and subject to general principles of equity
      regardless of whether considered in a proceeding in law or equity.

     

    3.4. Financial
      Statements and Projections.

     

    Except
      for
      the Projections, all Financial Statements concerning Holdings and its
      Subsidiaries that are referred to below have been prepared in accordance with
      GAAP consistently applied throughout the periods covered (except as disclosed
      therein and except, with respect to unaudited Financial Statements, for the
      absence of footnotes and normal year-end audit adjustments) and present fairly
      in all material respects the financial position of the Persons covered thereby
      as at the dates thereof and the results of their operations and cash flows
      for
      the periods then ended.

     

    (a) Financial
      Statements.
      The
      following Financial Statements attached hereto as Disclosure
      Schedule 3.4(a)
      have been
      delivered on or prior to the date hereof:

     

    (i) The
      audited consolidated balance sheet at December 31, 2006 and the related
      consolidated statements of income and cash flows of Holdings and its
      Subsidiaries for the Fiscal Year then ended, certified by Ernst & Young
      LLP.

     

    (ii) The
      unaudited consolidated balance sheet at March 31, 2007 and the related
      consolidated statements of income and cash flows of Holdings and its
      Subsidiaries for the Fiscal Quarter then ended.

     

    
      
        
        

      

      
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    (b) Projections.
      The
      Projections delivered on the date hereof and attached hereto as Disclosure
      Schedule 3.4(b)
      have been
      prepared by Borrowers in light of the past operations of their businesses,
      and
      reflect projections for the five year period beginning on January 1, 2007 on
      an
      annual basis. The Projections are based upon the same accounting principles
      as
      those used in the preparation of the financial statements described above and
      the estimates and assumptions stated therein, all of which Borrowers believe
      to
      be reasonable and fair in light of current conditions and current facts known
      to
      Borrowers and, as of the Closing Date, reflect Borrowers' good faith and
      reasonable estimates of the future financial performance of Borrowers and of
      the
      other information projected therein for the period set forth therein (it being
      understood that all such Projections will be subject to uncertainties and
      contingencies and that no representation is given that any particular projection
      will be realized).

     

    3.5. Material
      Adverse Effect.

     

    Between
      December 31, 2006 and the Closing Date: (a) no Credit Party has incurred
      any obligations, contingent or noncontingent liabilities, liabilities for
      Charges, long-term leases or unusual forward or long-term commitments that,
      alone or in the aggregate, could reasonably be expected to have a Material
      Adverse Effect, (b) no contract, lease or other agreement or instrument has
      been entered into by any Credit Party or has become binding upon any Credit
      Party's assets and no law or regulation applicable to any Credit Party has
      been
      adopted that has had or could reasonably be expected to have a Material Adverse
      Effect, and (c) no Credit Party is in default and to the best of Borrowers'
      knowledge no third party is in default under any material contract, lease or
      other agreement or instrument, that alone or in the aggregate could reasonably
      be expected to have a Material Adverse Effect. Between December 31, 2006 and
      the
      Closing Date no event has occurred, that alone or together with other events,
      could reasonably be expected to have a Material Adverse Effect. 

     

    3.6. Ownership
      of Property; Liens.

     

    As
      of the
      Closing Date, the real estate ("Real
      Estate")
      listed
      in Disclosure
      Schedule 3.6
      constitutes all of the real property owned, leased, or subleased by any Credit
      Party. Each Credit Party owns good and indefeasible fee simple title to all
      of
      its owned Real Estate, and valid and marketable leasehold interests in all
      of
      its leased Real Estate, all as described on Disclosure
      Schedule 3.6,
      and a
      summary of terms of all such leases reasonably satisfactory to Agent has been
      delivered to Agent. Disclosure
      Schedule 3.6
      further
      describes any Real Estate with respect to which any Credit Party is a lessor,
      sublessor or assignor as of the Closing Date. Each Credit Party also has good
      and marketable title to, or valid leasehold interests in, all of its personal
      property and assets material to its business, except for minor defects in title
      that do not interfere with its ability to conduct its business as currently
      conducted or to utilize such properties or assets for their intended purposes.
      As of the Closing Date, none of the properties and assets of any Credit Party
      are subject to any Liens other than
      Permitted Encumbrances, and there are no facts, circumstances or conditions
      known to any Credit Party that could reasonably be expected to result in any
      Liens (including Liens arising under Environmental Laws) other than Permitted
      Encumbrances. Disclosure
      Schedule 3.6
      also
      describes, as of the Closing Date, any purchase options, rights of first refusal
      or other similar contractual rights pertaining to any Real Estate owned by
      a
      Credit Party or granted by, or in favor of, any Credit Party pertaining to
      any
      other Real Estate. As of the Closing Date, no portion of any Credit Party's
      Real
      Estate has suffered any material damage by fire or other casualty loss that
      has
      not heretofore been repaired and restored in all material respects to its
      original condition (normal wear and tear excepted) or otherwise remedied. As
      of
      the Closing Date, all material permits required to have been issued or
      appropriate to enable the Real Estate to be lawfully occupied and used for
      all
      of the purposes for which it is currently occupied and used have been lawfully
      issued and are in full force and effect. 

     

    
      
        
        

      

      
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    3.7. Labor
      Matters.

     

    As
      of the
      Closing Date (a) no strikes or other material labor disputes against any
      Credit Party are pending or, to any Credit Party's knowledge, threatened;
      (b) hours worked by and payment made to employees of each Credit Party
      comply in all material respects with the Fair Labor Standards Act and each
      other
      federal, state, local or foreign law applicable to such matters; (c) all
      payments due from any Credit Party for employee health and welfare insurance
      have been paid or accrued as a liability on the books of such Credit Party;
      (d) except as set forth in Disclosure
      Schedule 3.7,
      no
      Credit Party is a party to or bound by any collective bargaining agreement,
      management agreement, employment agreement, bonus, restricted stock, stock
      option, or stock appreciation plan or agreement or any similar plan, agreement
      or arrangement (and true and complete copies of any collective bargaining
      agreements, management agreements and employment agreements described on
Disclosure
      Schedule 3.7
      have been
      delivered to Agent); (e) there is no organizing activity involving any
      Credit Party pending or, to any Credit Party's knowledge, threatened by any
      labor union or group of employees; (f) there are no representation
      proceedings pending or, to any Credit Party's knowledge, threatened with the
      National Labor Relations Board, and no labor organization or group of employees
      of any Credit Party has made a pending demand for recognition; and
      (g) except as set forth in Disclosure
      Schedule 3.7,
      there
      are no material complaints or charges against any Credit Party pending or,
      to
      the knowledge of any Credit Party, threatened to be filed with any Governmental
      Authority or arbitrator based on, arising out of, in connection with, or
      otherwise relating to the employment or termination of employment by any Credit
      Party of any individual.

     

    3.8. Ventures,
      Subsidiaries and Affiliates; Outstanding Stock and Indebtedness.

     

    Except
      as
      set forth in Disclosure
      Schedule 3.8,
      as of
      the Closing Date, no Credit Party has any Subsidiaries, is engaged in any joint
      venture or partnership with any other Person, or is an Affiliate of any other
      Person. All of the issued and outstanding Stock of each Credit Party (excluding
      Holdings) is owned by each of the Stockholders and in the amounts set forth
      in
Disclosure Schedule 3.8.
      Except
      as set forth in Disclosure
      Schedule 3.8,
      there
      are no outstanding rights to purchase, options, warrants or similar rights
      or
      agreements pursuant to which any Credit Party may be required to issue, sell,
      repurchase or redeem any of its Stock or other equity securities or any Stock
      or
      other equity securities of its Subsidiaries. All outstanding Indebtedness and
      Guaranteed Indebtedness of each Credit Party as of the Closing Date (except
      for
      the Obligations) is described in Section 6.3
      (including Disclosure
      Schedule 6.3).
      

     

    
      
        
        

      

      
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    3.9. Government
      Regulation.

     

    No
      Credit
      Party is an "investment company" or an "affiliated person" of, or "promoter"
      or
      "principal underwriter" for, an "investment company," as such terms are defined
      in the Investment Company Act of 1940. No Credit Party is subject to regulation
      under the Federal Power Act, or any other federal or state statute that
      restricts or limits its ability to incur Indebtedness or to perform its
      obligations hereunder. The making of the Loans by Lenders to Borrowers, the
      incurrence of the Letter of Credit Obligations on behalf of Borrowers, the
      application of the proceeds thereof and repayment thereof will not violate
      any
      provision of any such statute or any rule, regulation or order issued by the
      Securities and Exchange Commission.

     

    3.10. Margin
      Regulations.

     

    No
      Credit
      Party is engaged, nor will it engage, principally or as one of its important
      activities, in the business of extending credit for the purpose of "purchasing"
      or "carrying" any "margin stock" as such terms are defined in Regulation U
      of
      the Federal Reserve Board as now and from time to time hereafter in effect
      (such
      securities being referred to herein as "Margin
      Stock").
      No
      Credit Party owns any Margin Stock, and none of the proceeds of the Loans or
      other extensions of credit under this Agreement will be used, directly or
      indirectly, for the purpose of purchasing or carrying any Margin Stock, for
      the
      purpose of reducing or retiring any Indebtedness that was originally incurred
      to
      purchase or carry any Margin Stock or for any other purpose that might cause
      any
      of the Loans or other extensions of credit under this Agreement to be considered
      a "purpose credit" within the meaning of Regulations T, U or X of the Federal
      Reserve Board. No Credit Party will take or permit to be taken any action that
      might cause any Loan Document to violate any regulation of the Federal Reserve
      Board.

     

    3.11. Taxes.

     

    All
      tax
      returns, reports and statements, including information returns, required by
      any
      Governmental Authority to be filed by any Credit Party have been filed with
      the
      appropriate Governmental Authority and all Charges have been paid prior to
      the
      date on which any fine, penalty, interest or late charge may be added thereto
      for nonpayment thereof (or any such fine, penalty, interest, late charge or
      loss
      has been paid), excluding Charges or other amounts less than $500,000 in
      aggregate or being contested in accordance with Section 5.2(b).
      Proper
      and accurate amounts have been withheld by each Credit Party from its respective
      employees for all periods in compliance in all material respects with all
      applicable federal, state, local and foreign laws and such withholdings have
      been timely paid to the respective Governmental Authorities. Disclosure
      Schedule 3.11
      sets
      forth as of
      the
      Closing Date those taxable years for which any Credit Party's tax returns are
      currently being audited by the IRS or any other applicable Governmental
      Authority, and any assessments or threatened assessments in connection with
      such
      audit, or otherwise currently outstanding. Except as described in Disclosure
      Schedule 3.11,
      no
      Credit Party has executed or filed with the IRS or any other Governmental
      Authority any agreement or other document extending, or having the effect of
      extending, the period for assessment or collection of any Charges. None of
      the
      Credit Parties and their respective predecessors are liable for any Charges
      in
      an aggregate amount greater than $500,000: (a) under any agreement
      (including any tax sharing agreements) or (b) to each Credit Party's
      knowledge, as a transferee. As of the Closing Date, no Credit Party has agreed
      or been requested to make any adjustment under IRC Section 481(a), by
      reason of a change in accounting method or otherwise, which could reasonably
      be
      expected to have a Material Adverse Effect.

     

    
      
        
        

      

      
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    3.12. ERISA.

     

    (a) Disclosure
      Schedule 3.12
      lists
      (i) all ERISA Affiliates and (ii) all Plans and separately identifies
      all Pension Plans, including Title IV Plans, Multiemployer Plans, ESOPs and
      Welfare Plans, including all Retiree Welfare Plans. Copies of all such listed
      Plans, together with a copy of the latest IRS/DOL 5500-series form for each
      such
      Plan, have been delivered to Agent. Except with respect to Multiemployer Plans,
      each Qualified Plan has been determined by the IRS to qualify under
      Section 401 of the IRC, the trusts created thereunder have been determined
      to be exempt from tax under the provisions of Section 501 of the IRC, and
      nothing has occurred that could reasonably be expected to result in the loss
      of
      such qualification or tax-exempt status. Each Plan is in compliance in all
      material respects with the applicable provisions of ERISA and the IRC, including
      the timely filing of all reports required under the IRC or ERISA, including
      the
      statement required by 29 CFR Section 2520.104-23. Neither any Credit Party
      nor ERISA Affiliate has failed to make any contribution or pay any amount due
      as
      required by either Section 412 of the IRC or Section 302 of ERISA or
      the terms of any such Plan. Neither any Credit Party nor ERISA Affiliate has
      engaged in a "prohibited transaction," as defined in Section 406 of ERISA
      and Section 4975 of the IRC, in connection with any Plan, that could
      reasonably be expected to subject any Credit Party to a material tax on
      prohibited transactions imposed by Section 502(i) of ERISA or
      Section 4975 of the IRC.

     

    (b) Except
      as
      set forth in Disclosure
      Schedule 3.12:
      (i) no Title IV Plan has any Unfunded Pension Liability; (ii) no ERISA
      Event or event described in Section 4062(e) of ERISA with respect to any
      Title IV Plan has occurred or is reasonably expected to occur; (iii) there
      are no pending, or to the knowledge of any Credit Party, threatened claims
      (other than claims for benefits in the normal course), sanctions, actions or
      lawsuits, asserted or instituted against any Plan or any Person as fiduciary
      or
      sponsor of any Plan; (iv) no Credit Party or ERISA Affiliate has incurred
      or reasonably expects to incur any liability as a result of a complete or
      partial withdrawal from a Multiemployer Plan; (v) within the last five
      years no Title IV Plan of any Credit Party or ERISA Affiliate has been
      terminated, whether or not in a "standard termination" as that term is used
      in
      Section 4041(b)(1) of ERISA, nor has any Title IV Plan of any Credit Party
      or any ERISA Affiliate (determined at any time within the last five years)
      with
      Unfunded Pension Liabilities been transferred outside of the "controlled group"
      (within the meaning of Section 4001(a)(14) of ERISA) of any Credit Party or
      ERISA Affiliate (determined at such time); (vi) except in the case of any
      ESOP, Stock of all Credit Parties and their ERISA Affiliates makes up, in the
      aggregate, no more than ten percent (10%) of fair market value of the assets
      of
      any Plan measured on the basis of fair market value as of the latest valuation
      date of any Plan; and (vii) no liability under any Title IV Plan has been
      satisfied with the purchase of a contract from an insurance company that is
      not
      rated AAA by the Standard & Poor's Corporation or an equivalent rating by
      another nationally recognized rating agency.

     

    
      
        
        

      

      
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    3.13. No
      Litigation.

     

    No
      action,
      claim, lawsuit, demand, investigation or proceeding is now pending or, to the
      knowledge of any Credit Party, threatened against any Credit Party, before
      any
      Governmental Authority or before any arbitrator or panel of arbitrators
      (collectively, "Litigation"),
      (a) that challenges any Credit Party's right or power to enter into or
      perform any of its obligations under the Loan Documents to which it is a party,
      or the validity or enforceability of any Loan Document or any action taken
      thereunder, or (b) that has a reasonable risk of being determined adversely
      to any Credit Party and that, if so determined, could be reasonably be expected
      to have a Material Adverse Effect. Except as set forth on Disclosure
      Schedule 3.13,
      as of
      the Closing Date there is no Litigation pending or, to any Credit Party's
      knowledge, threatened, that seeks damages in excess of $1,000,000 not otherwise
      covered by or in excess of any applicable insurance policy of a Credit Party,
      or
      injunctive relief against, or alleges criminal misconduct of, any Credit
      Party.

     

    3.14. Brokers.

     

    No
      broker
      or finder brought about the obtaining, making or closing of the Loans, and
      no
      Credit Party or Affiliate thereof has any obligation to any Person in respect
      of
      any finder's or brokerage fees in connection therewith.

     

    3.15. Intellectual
      Property.

     

    As
      of the
      Closing Date, each Credit Party owns or has rights to use all Intellectual
      Property necessary to continue to conduct its business as now conducted by
      it,
      and each Patent, Trademark, Copyright and License is listed, together with
      application or registration numbers, as applicable, in Disclosure
      Schedule 3.15.
      Each
      Credit Party conducts its business and affairs without infringement of or
      interference with any Intellectual Property of any other Person in any material
      respect. Except as set forth in Disclosure
      Schedule 3.15,
      no
      Credit Party is aware of any infringement claim by any other Person with respect
      to any Intellectual Property. 

     

    
      
        
        

      

      
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    3.16. Full
      Disclosure.

     

    No
      information contained in this Agreement, any of the other Loan Documents, any
      Projections or Financial Statements or other written reports from time to time
      delivered hereunder or any written statement furnished by or on behalf of any
      Credit Party to Agent or any Lender pursuant to the terms of this Agreement
      contains or will contain any untrue statement of a material fact or omits or
      will omit to state a material fact necessary to make the statements contained
      herein or therein not misleading in light of the circumstances under which
      they
      were made (it being understood that all Projections will be subject to
      uncertainties and contingencies and that no representation is given that any
      particular projection will be realized). Borrowers will take no action, or
      omit
      to take any action, that would cause the Liens granted to Agent, on behalf
      of
      itself and Lenders, pursuant to the Collateral Documents to not be at any time
      fully perfected first priority Liens in and to the Collateral described therein
      (to the extent the Collateral Documents and applicable law allow for such
      perfection), subject, as to priority, only to Permitted
      Encumbrances.

     

    3.17. Environmental
      Matters.

     

    (a) Except
      as
      set forth in Disclosure
      Schedule 3.17,
      as of
      the Closing Date: (i) the Real Estate is free of contamination from any
      Hazardous Material except for such contamination that would not adversely impact
      the value or marketability of such Real Estate and that would not result in
      Environmental Liabilities that could reasonably be expected to exceed
      $1,000,000; (ii) no Credit Party has caused or suffered to occur any
      Release of Hazardous Materials on, at, in, under, above, to, from or about
      any
      of its Real Estate; (iii) the Credit Parties are and have been in
      compliance with all Environmental Laws, except for such noncompliance that
      would
      not result in Environmental Liabilities which could reasonably be expected
      to
      exceed $1,000,000; (iv) the Credit Parties have obtained, and are in
      compliance with, all Environmental Permits required by Environmental Laws for
      the operations of their respective businesses as presently conducted, except
      where the failure to so obtain or comply with such Environmental Permits would
      not result in Environmental Liabilities that could reasonably be expected to
      exceed $1,000,000, and all such Environmental Permits are valid, uncontested
      and
      in good standing; (v) no Credit Party is involved in operations or knows of
      any facts, circumstances or conditions, including any Releases of Hazardous
      Materials, that are likely to result in any Environmental Liabilities of such
      Credit Party which could reasonably be expected to exceed $1,000,000 , and
      no
      Credit Party has permitted any current or former tenant or occupant of the
      Real
      Estate to engage in any such operations; (vi) there is no Litigation
      arising under or related to any Environmental Laws, Environmental Permits or
      Hazardous Material that seeks damages, penalties, fines, costs or expenses
      in
      excess of $1,000,000 or injunctive relief against, or that alleges criminal
      misconduct by, any Credit Party; (vii) no written notice has been received
      by any Credit Party identifying it as a "potentially responsible party" or
      requesting information under CERCLA or analogous state statutes, and to the
      knowledge of the Credit Parties, there are no facts, circumstances or conditions
      that may result in any Credit Party being identified as a "potentially
      responsible party" under CERCLA or analogous state statutes; and (viii) the
      Credit Parties have provided to Agent copies of all existing environmental
      reports, reviews and audits and all written information pertaining to actual
      or
      potential Environmental Liabilities, in each case relating to any Credit Party.
      

     

    
      
        
        

      

      
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    (b) Each
      Credit Party hereby acknowledges and agrees that Agent (i) is not now, and
      has not ever been, in control of any of the Real Estate or any Credit Party's
      affairs, and (ii) does not have the capacity through the provisions of the
      Loan Documents or otherwise to influence any Credit Party's conduct with respect
      to the ownership, operation or management of any of its Real Estate or
      compliance with Environmental Laws or Environmental Permits.

     

    3.18. Insurance.

     

    Disclosure
      Schedule 3.18
      lists all
      insurance policies of any nature maintained, as of the Closing Date, for current
      occurrences by each Credit Party, as well as a summary of the terms of each
      such
      policy.

     

    3.19. Deposit
      and Disbursement Accounts.

     

    Disclosure
      Schedule 3.19
      lists all
      banks and other financial institutions at which any Credit Party maintains
      deposit or other accounts as of the Closing Date, and such Schedule correctly
      identifies the name, address and telephone number of each depository, the name
      in which the account is held, a description of the purpose of the account,
      and
      the complete account number therefor.

     

    3.20. [Intentionally
      Omitted]

     

    3.21. [Intentionally
      Omitted]

     

    3.22. Agreements
      and Other Documents.

     

    As
      of the
      Closing Date, each Credit Party has provided to Agent or its counsel, on behalf
      of Lenders, accurate and complete copies (or summaries) of all of the following
      agreements or documents to which it is subject and each of which is listed
      in
      Disclosure Schedule 3.22:
      supply
      agreements and purchase agreements not terminable by such Credit Party within
      60
      days following written notice issued by such Credit Party and involving
      transactions in excess of $1,000,000 per annum; leases of Equipment having
      a
      remaining term of one year or longer and requiring aggregate rental and other
      payments in excess of $1,000,000 per annum; licenses and permits held by the
      Credit Parties, the absence of which could be reasonably likely to have a
      Material Adverse Effect; instruments and documents evidencing any Indebtedness
      or Guaranteed Indebtedness of such Credit Party in an amount in excess of
      $500,000 and any Lien granted by such Credit Party with respect thereto; and
      instruments and agreements evidencing the issuance of any equity securities,
      warrants, rights or options to purchase equity securities of such Credit Party.
      

     

    
      
        
        

      

      
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    3.23. Solvency.

     

    Both
      before and after giving effect to (a) the Loans and Letter of Credit
      Obligations to be made or incurred on the Closing Date or such other date as
      Loans and Letter of Credit Obligations requested hereunder are made or incurred,
      (b) the disbursement of the proceeds of such Loans pursuant to the
      instructions of Borrowers; and (c) the payment and accrual of all
      transaction costs in connection with the foregoing, each Credit Party is and
      will be Solvent.

     

    3.24. Compliance
      With Health Care Laws. 

     

    Without
      limiting the generality of Sections 3.1 or 5.5 or any other representation
      or
      warranty made herein, Credit Parties and each of the facilities operated by
      Credit Parties and, to Credit Parties' knowledge, each of Credit Parties'
      licensed employees and contractors (other than contracted agencies) in the
      exercise of their respective duties on behalf of any Credit Party or any such
      facilities, is in compliance with all applicable statutes, laws, ordinances,
      rules and regulations of any federal, state or local governmental authority
      with
      respect to regulatory matters primarily relating to patient healthcare
      (including without limitation Title XVIII of the Social Security Act, as
      amended, governing Medicare and regulations pertaining thereto; all federal
      laws
      and regulations affecting the medical assistance program established by Titles
      V, XIX, XX, and XXI of the Social Security Act, and all state laws, regulations
      and plans for medical assistance enacted in connection with the federal laws
      and
      regulations; Section 1128B(b) of the Social Security Act, as amended, 42 U.S.C.
      Section 1320a-7(b) (Criminal Penalties Involving Medicare or State Health Care
      Programs) and regulations pertaining thereto, commonly referred to as the
      "Federal Anti-Kickback Statute;" Section 1877 of the Social Security Act, as
      amended, 42 U.S.C Section 1395nn (Ethics in Patient Referrals Act) and
      regulations pertaining thereto, commonly referred to as the "Stark Statute;"
      31
      U.S.C. §3729 et
      seq.
      commonly
      known as the “False Claims Act” and regulations pertaining thereto; federal laws
      and regulations regarding the submission of false claims, false billing, false
      coding, and similar state laws and regulations; federal and state laws and
      regulations applicable to reimbursement and reassignment; federal and state
      licensing laws and regulations; laws and regulations administered by the federal
      Food and Drug Administration; laws and regulations administered by the federal
      Drug Enforcement Administration and analogous state agencies; and state
      certificate of need laws (collectively, "Healthcare
      Laws")),
      except where the failure to so comply could not reasonably be expected to have
      a
      Material Adverse Effect. Each Credit Party has maintained in all material
      respects all records required to be maintained by the Food and Drug
      Administration, Drug Enforcement Agency and State Boards of Pharmacy and the
      federal and state Medicare and Medicaid programs as required by the Healthcare
      Laws and, to the knowledge of such Credit Party, there are no presently existing
      circumstances which could reasonably be expected to result in violations of
      the
      Healthcare Laws that could reasonably be expected to have a Material Adverse
      Effect. Each Credit Party and each of its Affiliates is acting in compliance
      with the Corporate Integrity Agreement, and its corporate compliance plan in
      all
      material respects. Each Credit Party and its Affiliates have such permits,
      licenses, franchises, certificates and other approvals or authorizations of
      governmental or regulatory authorities as are necessary under applicable law
      to
      own their respective properties and to conduct their respective business
      (including without limitation such permits as are required under such federal,
      state and other health care laws, and under such HMO or similar licensure laws
      and such insurance laws and regulations, as are applicable thereto), and with
      respect to those facilities and other businesses that participate in Medicare
      and/or Medicaid, to receive reimbursement under Medicare and Medicaid, except
      where the failure to have such licenses, permits, franchises, certificates
      or
      other government approvals or authorizations could not reasonably be expected
      to
      have a Material Adverse Effect. Except as listed in Disclosure Schedule 3.24,
      to
      Credit Parties' knowledge, there currently exist no restrictions, deficiencies,
      required plans of correction actions or other such remedial measures with
      respect to federal and state Medicare and Medicaid certifications or
      licensure.

     

    
      
        
        

      

      
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    3.25. HIPAA
      Compliance.

     

    (a) To
      the
      extent that and for so long as (i) any Credit Party is a "covered entity" as
      defined in 45 C.F.R. § 160.103, (ii) any Credit Party and/or its business
      and operations are subject to or covered by the HIPAA administrative
      requirements codified at 45 C.F.R. Parts 160 and 162 (the "Transactions
      Rule")
      and/or
      the HIPAA security and privacy requirements codified at 45 C.F.R. Parts 160
      and
      164 (the "Privacy
      and Security Rules"),
      and/or
      (iii) any Credit Party sponsors any "group health plans" as defined in 45 C.F.R.
      § 160.103, such Credit Party has, except to the extent that the failure to
      do any of the following could not reasonably be expected to have a Material
      Adverse Effect: (x) completed surveys, audits, inventories, reviews, analyses
      and/or assessments, including risk assessments, (collectively "Assessments")
      of all
      areas of its business and operations subject to HIPAA and/or that could be
      adversely affected by the failure of such Credit Party to be HIPAA Compliant
      (as
      defined below) to the extent these Assessments are appropriate or required
      for
      such Credit Party to be HIPAA Compliant; (y) developed a plan for becoming
      HIPAA Compliant (a "HIPAA
      Compliance Plan");
      and
      (z) implemented those provisions of its HIPAA Compliance Plan necessary to
      ensure that such Credit Party is HIPAA Compliant. For purposes of this
      Agreement, "HIPAA
      Compliant"
      shall
      mean that a Credit Party (1) is in compliance in all material respects with
      the
      applicable requirements of HIPAA, including all requirements of the Transactions
      Rule and the Privacy and Security Rules and (2) is not subject to, and could
      not
      reasonably be expected to become subject to, any civil or criminal penalty
      or
      any investigation, claim or process that could reasonably be expected to have
      a
      Material Adverse Effect.

     

    (b) Each
      Credit Party represents that it, collectively with the other entities identified
      herein as a " Credit Party" and/or certain other affiliates of such Credit
      Party
      have elected to be treated as a single covered entity in accordance with the
      Privacy and Security Rules (45 C.F.R. § 164.105(b)) (the "Affiliated
      Covered Entities"),
      have
      documented such affiliation in accordance with 45 C.F.R. §164.105(b), and are in
      compliance with the requirements of 45 C.F.R. §164.105(b). As such, each Credit
      Party represents and warrants that it has the legal right, power and authority
      to execute the Business Associate Agreement on behalf of the Affiliated Covered
      Entity, in accordance with the Privacy and Security Rules, and that the
      provisions of the Business Associate Agreement shall be binding upon each Credit
      Party and all of such Credit Party's affiliates that are participating as
      Affiliated Covered Entities, in accordance with the Privacy and Security Rules,
      as if each and every such affiliate were a party to such Business Associate
      Agreement directly.

     

    
      
        
        

      

      
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              4.

            	
              FINANCIAL
                STATEMENTS AND INFORMATION

            

    

     

    4.1. Reports
      and Notices.

     

    Each
      Credit Party executing this Agreement hereby agrees that from and after the
      Closing Date and until the Termination Date, it shall deliver to Agent or to
      Agent and Lenders, as required, the Financial Statements, notices, Projections
      and other information at the times, to the Persons and in the manner set forth
      in Annex E.

     

    4.2. Communication
      with Accountants.

     

    Each
      Credit Party executing this Agreement authorizes (a) Agent and (b) so
      long as an Event of Default has occurred and is continuing, each Lender, to
      communicate directly with its independent certified public accountants,
      including Ernst & Young LLP, and authorizes and, at Agent's request, shall
      instruct those accountants and advisors to disclose and make available to Agent
      and each Lender any and all Financial Statements and other supporting financial
      documents, schedules and information relating to any Credit Party (including
      copies of any issued management letters) with respect to the business, financial
      condition and other affairs of any Credit Party;
      provided, however, that such accountants' failure to disclose or make materials
      available to Agent and Lenders as a result of such accountants' confidentiality
      policies shall not constitute a breach of this Section
      4.2.

     

    
      	
              5.

            	
              AFFIRMATIVE
                COVENANTS

            

    

     

    Each
      Credit Party executing this Agreement jointly and severally agrees as to all
      Credit Parties that from and after the date hereof and until the Termination
      Date:

     

    5.1. Maintenance
      of Existence and Conduct of Business.

     

    Except
      as
      otherwise expressly permitted in this Agreement, each Credit Party shall: (a)
      do
      or cause to be done all things necessary to preserve and keep in full force
      and
      effect its corporate existence and its rights and franchises; (b) continue
      to
      conduct its business substantially as now conducted or as otherwise permitted
      hereunder; and (c) at all times maintain, preserve and protect all of its
      material assets and properties used or useful in the conduct of its business,
      and keep the same in good repair, working order and condition in all material
      respects (taking into consideration ordinary wear and tear) and from time to
      time make, or cause to be made, all necessary or appropriate repairs,
      replacements and improvements thereto consistent with industry
      practices.

     

    
      
        
        

      

      
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    5.2. Payment
      of
Charges.

     

    (a) Subject
      to
Section 5.2(b),
      each
      Credit Party shall pay and discharge or cause to be paid and discharged promptly
      all Charges due and payable by it, including (i) Charges imposed upon it,
      its income and profits, or any of its property (real, personal or mixed) and
      all
      Charges with respect to tax, social security and unemployment withholding with
      respect to its employees, (ii) lawful claims for labor, materials, supplies
      and services or otherwise, and (iii) all storage or rental charges payable
      to warehousemen or bailees, in each case, before any thereof shall become past
      due.

     

    (b) Each
      Credit Party may in good faith contest, by appropriate proceedings, the validity
      or amount of any Charges, Taxes or claims; provided,
      that
      (i) adequate reserves with respect to such contest are maintained on the
      books of such Credit Party, in accordance with GAAP; (ii) no Lien shall be
      imposed to secure payment of such Charges (other than payments to warehousemen
      and/or bailees) that is superior to any of the Liens securing the Obligations
      and such contest is maintained and prosecuted continuously and with diligence
      and operates to suspend collection or enforcement of such Charges;
      (iii) none of the Collateral becomes subject to forfeiture or loss as a
      result of such contest; (iv) such Credit Party shall promptly pay or
      discharge such contested Charges, Taxes or claims and all additional charges,
      interest, penalties and expenses, if any, and shall deliver to Agent evidence
      reasonably acceptable to Agent of such compliance, payment or discharge, if
      such
      contest is terminated or discontinued adversely to such Credit Party or the
      conditions set forth in this Section 5.2(b)
      are no
      longer met; and (v) Agent has not advised Borrowers in writing that Agent
      reasonably believes that nonpayment or nondischarge thereof could have or result
      in a Material Adverse Effect.

     

    5.3. Books
      and
      Records.

     

    Each
      Credit Party shall keep adequate books and records with respect to its business
      activities in which proper entries, reflecting all financial transactions,
      are
      made in accordance with GAAP and on a basis consistent with the Financial
      Statements attached as Disclosure
      Schedule 3.4(a).

     

    5.4. Insurance;
      Damage to or Destruction of Collateral.

     

    (a) The
      Credit
      Parties shall, at their sole cost and expense, maintain the policies of
      insurance described on Disclosure
      Schedule 3.18
      as in
      effect on the date hereof or otherwise in form and amounts and with insurers
      reasonably acceptable to Agent; provided that the Credit Parties shall have
      at
      least ten (10) Business Days to effect any changes in their policies of
      insurance described on Disclosure
      Schedule 3.18
      requested
      by Agent. Such policies of insurance (or the loss payable and additional insured
      endorsements delivered to Agent) shall contain provisions pursuant to which
      the
      insurer agrees to provide 30 days' prior written notice to Agent in the event
      of
      any non-renewal, cancellation or amendment of any such insurance policy. If
      any
      Credit Party at any time or times hereafter shall fail to obtain or maintain
      any
      of the policies of insurance required above, or to pay all premiums relating
      thereto, Agent may at any time or times thereafter obtain and maintain such
      policies of insurance and pay such premiums and take any other action with
      respect thereto that Agent deems advisable. Agent shall have no obligation
      to
      obtain insurance for any Credit Party or pay any premiums therefor. By doing
      so,
      Agent shall not be deemed to have waived any Default or Event of Default arising
      from any Credit Party's failure to maintain such insurance or pay any premiums
      therefor. All sums so disbursed, including reasonable attorneys' fees, court
      costs and other charges related thereto, shall be payable on demand by Borrowers
      to Agent and shall be additional Obligations hereunder secured by the
      Collateral. 

     

    
      
        
        

      

      
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    (b) Agent
      reserves the right at any time upon any change in any Credit Party's risk
      profile (including any change in the product mix maintained by any Credit Party
      or any laws affecting the potential liability of such Credit Party) to, after
      prior written notice to Borrowers, require additional forms and limits of
      insurance to, in Agent's reasonable opinion, adequately protect both Agent's
      and
      Lenders' interests in all or any portion of the Collateral and to ensure that
      each Credit Party is protected by insurance in amounts and with coverage
      customary for its industry. If reasonably requested by Agent in writing, each
      Credit Party shall deliver to Agent from time to time a report of a reputable
      insurance broker, reasonably satisfactory to Agent, with respect to its
      insurance policies.

     

    (c) Each
      Credit Party shall deliver to Agent, in form and substance reasonably
      satisfactory to Agent, endorsements to (i) all "All Risk" insurance naming
      Agent, on behalf of itself and Lenders, as loss payee, and (ii) all general
      liability and other liability policies naming Agent, on behalf of itself and
      Lenders, as additional insured. Each Credit Party irrevocably makes, constitutes
      and appoints Agent (and all officers, employees or agents designated by Agent),
      so long as any Event of Default has occurred and is continuing or the
      anticipated insurance proceeds exceed $1,000,000, as such Credit Party's true
      and lawful agent and attorney-in-fact
      for the purpose of making, settling and adjusting claims under such "All Risk"
      policies of insurance, endorsing the name of such Credit Party on any check
      or
      other item of payment for the proceeds of such "All Risk" policies of insurance
      and for making all determinations and decisions with respect to such "All Risk"
      policies of insurance. Agent shall have no duty to exercise any rights or powers
      granted to it pursuant to the foregoing power-of-attorney, but, while exercising
      any rights and powers hereunder, agrees to act in good faith. Borrowers shall
      promptly notify Agent of any loss, damage, or destruction to the Collateral
      in
      the amount of $1,000,000 or more, whether or not covered by insurance. After
      deducting from such proceeds the expenses, if any, incurred by Agent in the
      collection or handling thereof, Agent may, at its option, apply such proceeds
      to
      the reduction of the Obligations in accordance with Section 1.3(c),
      or
      permit or require the applicable Credit Party to use such money, or
      any part
      thereof, to replace, repair, restore or rebuild the Collateral in a diligent
      and
      expeditious manner with materials and workmanship of substantially the same
      quality as existed before the loss, damage or destruction. Notwithstanding
      the
      foregoing, if the casualty giving rise to such insurance proceeds could not
      reasonably be expected to have a Material Adverse Effect, such insurance
      proceeds do not exceed $3,000,000 in the aggregate and no Event of Default
      has
      occurred and is continuing, Agent shall make available to the applicable Credit
      Party such proceeds and permit such Credit Party to replace, restore, repair
      or
      rebuild the property; provided,
      that if
      such Credit Party shall not have completed or entered into binding agreements
      to
      complete such replacement, restoration, repair or rebuilding within 180 days
      of
      such casualty, such Credit Party shall pay such proceeds to Agent and Agent
      may
      apply such insurance proceeds to the Obligations in accordance with Section 1.3(c).
      To the
      extent not used to replace, repair, restore or rebuild the Collateral, such
      insurance proceeds shall be applied in accordance with Section 1.3(c).
      

     

    
      
        
        

      

      
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    5.5. Compliance
      with Laws
      and
      Corporate Integrity Agreement.

     

    Each
      Credit Party shall comply with all federal, state, local and foreign laws and
      regulations applicable to it, including all Healthcare Laws and those laws
      and
      regulations relating to ERISA and labor matters and Environmental Laws and
      Environmental Permits, except, in each case, to the extent that the failure
      to
      comply, individually or in the aggregate, could not reasonably be expected
      to
      have a Material Adverse Effect. Each
      Credit Party shall, and shall cause each of its Subsidiaries to, comply with
      the
      terms and conditions of the Corporate Integrity Agreement in all material
      respects.

     

    5.6. Supplemental
      Disclosure.

     

    From
      time
      to time as may be reasonably requested by Agent (which request will not be
      made
      more frequently than once each year absent the occurrence and continuance of
      an
      Event of Default), the Credit Parties shall supplement each Disclosure Schedule
      hereto, or any representation herein or in any other Loan Document, with respect
      to any matter hereafter arising that, if existing or occurring at the date
      of
      this Agreement, would have been required to be set forth or described in such
      Disclosure Schedule or as an exception to such representation or that is
      necessary to correct any information in such Disclosure Schedule or
      representation which has been rendered inaccurate thereby (and, in the case
      of
      any supplements to any Disclosure Schedule, such Disclosure Schedule shall
      be
      appropriately marked to show the changes made therein); provided,
      that
      (a) no such supplement to any such Disclosure Schedule or representation
      shall amend, supplement or otherwise modify any Disclosure Schedule or
      representation, or be or be deemed a waiver of any Default or Event of Default
      resulting from the matters disclosed therein, except as consented to by Agent
      and Requisite Lenders in writing, and (b) no supplement shall be required
      or permitted as to representations and warranties that relate solely to any
      preceding specific date.

     

    5.7. Intellectual
      Property.

     

    Each
      Credit Party will (i) conduct its business and affairs without infringement
      of
      or interference with any Intellectual Property of any other Person in any
      material respect and (ii) within ten (10) Business Days of the filing thereof,
      provide Agent with written notice of the registration of any Intellectual
      Property with any Governmental Authority.

     

    
      
        
        

      

      
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    5.8. Environmental
      Matters.

     

    Each
      Credit Party shall and shall cause each Person within its control to:
      (a) conduct its operations and keep and maintain its Real Estate in
      compliance with all Environmental Laws and Environmental Permits other than
      noncompliance that could not reasonably be expected to have a Material Adverse
      Effect; (b) implement any and all investigation, remediation, removal and
      response actions that are appropriate or necessary to comply with Environmental
      Laws and Environmental Permits pertaining to the presence, generation,
      treatment, storage, use, disposal, transportation or Release of any Hazardous
      Material on, at, in, under, above, to, from or about any of its Real Estate
      except where noncompliance could be reasonably likely to result in Environmental
      Liabilities in excess of $1,000,000; (c) notify Agent promptly after such
      Credit Party becomes aware of any violation of Environmental Laws or
      Environmental Permits or any Release on, at, in, under, above, to, from or
      about
      any Real Estate that is reasonably likely to result in Environmental Liabilities
      in excess of $1,000,000; and (d) promptly forward to Agent a copy of any
      order, notice, request for information or any communication or report received
      by such Credit Party in connection with any such violation or Release or any
      other matter relating to any Environmental Laws or Environmental Permits that
      could reasonably be expected to result in Environmental Liabilities in excess
      of
      $1,000,000, in each case whether or not the Environmental Protection Agency
      or
      any Governmental Authority has taken or threatened any action in connection
      with
      any such violation, Release or other matter. If Agent at any time has a
      reasonable basis to believe that there may be a violation of any Environmental
      Laws or Environmental Permits by any Credit Party or any Environmental Liability
      arising thereunder, or a Release of Hazardous Materials on, at, in, under,
      above, to, from or about any of its Real Estate, that, in each case, could
      reasonably be expected to have a Material
      Adverse Effect, then each Credit Party shall, upon Agent's written request
      (i) cause the performance of such environmental audits including subsurface
      sampling of soil and groundwater, and preparation of such environmental reports,
      at Borrowers' expense, as Agent may from time to time reasonably request, which
      shall be conducted by reputable environmental consulting firms reasonably
      acceptable to Agent and shall be in form and substance reasonably acceptable
      to
      Agent, and (ii) permit Agent or its representatives to have access to all
      Real Estate for the purpose of conducting such environmental audits and testing
      as Agent deems appropriate, including subsurface sampling of soil and
      groundwater. Borrowers shall reimburse Agent for the costs of such audits and
      tests and the same will constitute a part of the Obligations secured hereunder.
      

     

    5.9. Landlords’
      Agreements, Mortgagee Agreements, Bailee Letters, Lease Performance
      and
      Real
      Estate Purchases.

     

    (a) Each
      Credit Party shall use commercially reasonable efforts to obtain a landlord’s
      agreement, mortgagee agreement or bailee letter, as applicable, from the lessor
      of each leased property, mortgagee of owned property or bailee with respect
      to
      any location where data, systems or information critical to the business of
      any
      Credit Party are located, which agreement or letter shall contain a waiver
      or
      subordination of all Liens or claims that the landlord, mortgagee or bailee
      may
      assert against the Collateral at that location, and shall otherwise be
      reasonably satisfactory in form and substance to Agent. Each Credit Party shall
      timely and fully pay and perform its obligations under all leases and other
      agreements with respect to each leased location or public warehouse where any
      Collateral is or may be located. 

     

    
      
        
        

      

      
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    (b) In
      the
      event that the aggregate value of the real property owned by the Credit Parties
      is greater than $25,000,000 and the aggregate outstanding amount of the
      Revolving Loans is greater than $35,000,000 for ten (10) Business Days in total
      subsequent to the Closing Date, to the extent not previously delivered to the
      Agent, each Credit Party shall promptly deliver to Agent a Mortgage on any
      real
      property owned or thereafter acquired by such Credit Party, together with all
      Mortgage Supporting Documents relating thereto (or, if such real property is
      located in a jurisdiction outside the United States, similar documents deemed
      appropriate by Agent to obtain the equivalent in such jurisdiction of a
      first-priority mortgage on such real property) and all legal opinions relating
      to the matters described in this Section 5.9(b),
      which
      opinions shall be as reasonably required by, and in form and substance and
      from
      counsel reasonably satisfactory to, Agent. For the avoidance of doubt, the
      Credit Parties shall continue to be obligated to deliver such Mortgages,
      Mortgage Supporting Documents and legal opinions described in the preceding
      sentence notwithstanding the fact that the aggregate value of such owned real
      property declines below $25,000,000 and the aggregate outstanding amount of
      the
      Revolving Loans declines below $35,000,000 after being in excess of $35,000,000
      for ten (10) Business Days in total subsequent to the Closing Date.

     

    5.10. Further
      Assurances.

     

    Each
      Credit Party executing this Agreement agrees that it shall and shall cause
      each
      other Credit Party to, at such Credit Party's expense and upon request of Agent,
      duly execute and deliver, or cause to be duly executed and delivered, to Agent
      such further instruments and do and cause to be done such further acts as may
      be
      necessary or proper in the reasonable opinion of Agent to carry out more
      effectively the provisions and purposes of this Agreement or any other Loan
      Document. Without limitation on the foregoing, Borrowers hereby agree to use
      their commercially reasonable efforts to cause the Credit Party that is the
      accountholder of each securities account at Banc of America Securities LLC
      to
      enter into, and have Banc of America Securities LLC enter into, a Control Letter
      with Agent with respect to such securities accounts as soon as reasonably
      practicable after the Closing Date, each of which Control Letters may be in
      a
      form substantially similar to the Control Letter existing on the Closing Date
      between Parent, Agent and Banc of America Securities LLC.

     

    5.11. Non-Guarantor
      Subsidiaries. 

     

    Upon
      Agent's request at any time either after the occurrence and during the
      continuance of an Event of Default or after such time that the aggregate
      outstanding amount of the Revolving Loans exceeds $35,000,000 for 10 (ten)
      Business Days in total subsequent to the Closing Date, each Credit Party shall
      cause the Non-Guarantor Subsidiaries to execute a Guaranty, in form and
      substance reasonably satisfactory to Agent and, subject to Section
      5.9(b),
      shall
      cause a first priority perfected Lien (subject to Permitted Encumbrances) to
      be
      granted in favor of Agent in all the assets and Stock of the Non-Guarantor
      Subsidiaries, and Credit Parties and the Non-Guarantor Subsidiaries shall
      execute such documents and take such actions (including the delivery of legal
      opinions, organizational documents, good standing certificates, resolutions
      and
      incumbency certificates) as may be reasonably required by Agent in connection
      therewith. For avoidance of doubt, the Credit Parties shall continue to be
      obligated to cause the Non-Guarantor Subsidiaries to provide a Guaranty and
      grant the Liens described in the immediately preceding sentence notwithstanding
      the cure or waiver of the applicable Event of Default or the aggregate
      outstanding amount of the Revolving Loans ceasing to exceed $35,000,000 after
      being in excess of $35,000,000 for ten (10) Business Days in total subsequent
      to
      the Closing Date, as applicable, at any time after the date Agent requested
      the
      delivery of such Guaranty and the granting of such Liens in accordance with
      this
Section
      5.11.
      

     

    
      
        
        

      

      
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              6.

            	
              NEGATIVE
                COVENANTS

            

    

     

    Each
      Credit Party executing this Agreement jointly and severally agrees as to all
      Credit Parties that from and after the date hereof until the Termination
      Date:

     

    6.1. Mergers,
      Subsidiaries, Etc.

     

    No
      Credit
      Party shall directly or indirectly, by operation of law or otherwise, (a) form
      any Subsidiary other than any of the Non-Guarantor Subsidiaries or acquire
      any
      Subsidiary, or (b) merge with, consolidate with, acquire all or
      substantially all of the assets or Stock of, or otherwise combine with or
      acquire, any Person (or business unit thereof). Notwithstanding the foregoing,
      (i) any Credit Party may merge into any other Credit Party that is not a
      Non-Guarantor Subsidiary; provided,
      that
      a
      Borrower shall be the survivor of any such merger to which a Borrower is a
      party,
      (ii) any
      Credit Party that is not a Non-Guarantor Subsidiary may acquire all or
      substantially all of the Stock of any other Credit Party, (iii) any Credit
      Party
      that is not a Borrower or a Non-Guarantor Subsidiary may acquire all or
      substantially all of the assets of any other Credit Party that is also not
      a
      Borrower or a Non-Guarantor Subsidiary, (iv) any Borrower may acquire all or
      substantially all of the assets or Stock of any other Credit Party, (v) any
      Credit Party may
      acquire all or substantially all of the assets or Stock of any Person (the
      "Target")
      and,
      (vi) any Borrower may form a Subsidiary in order to acquire all or substantially
      all of the stock or assets of a Target (in each case of (i) through (vi), herein
      referred to as, a "Permitted
      Acquisition")
      subject
      to the satisfaction of each of the following conditions, each to the reasonable
      satisfaction of Agent:

     

    (A) (1)
      Agent
      shall receive prompt written notice after the completion of any Permitted
      Acquisition with total consideration and other amounts payable of less than
      $5,000,000 (a "Threshold
      Acquisition"),
      and
      (2) with respect to any proposed Permitted Acquisition with total consideration
      and other amounts payable of $5,000,000 or more, Agent shall receive at least
      fifteen (15) Business Days' prior written notice of such proposed Permitted
      Acquisition, which notice shall, in each case, include a reasonably detailed
      description of such proposed Permitted Acquisition;

     

    (B) At
      the
      time of such Permitted Acquisition and after giving effect thereto, (1) no
      Default or Event of Default has occurred and is continuing; (2) the sum of
      all
      consideration and other amounts payable (including all transaction costs,
      non-competition payments or similar payments and all Indebtedness and Guaranteed
      Indebtedness incurred or assumed in connection therewith or Indebtedness,
      liabilities and contingent obligations otherwise reflected in a consolidated
      balance sheet of the Credit Parties after giving effect to such Permitted
      Acquisition) in connection with all Permitted Acquisitions completed subsequent
      to the Closing Date shall not exceed $50,000,000, and (3) such Permitted
      Acquisition shall only involve assets located in the United States and
      comprising a business, or those assets of a business, that involve the provision
      of hospice or home health services such that the consummation of such Permitted
      Acquisition would not subject Agent or any Lender to regulatory or third party
      approvals in connection with the exercise of its rights and remedies under
      this
      Agreement or any other Loan Documents other than the approvals applicable to
      a
      hospice or home health service provider;

     

    (C) the
      consideration and other amounts payable in connection with such Permitted
      Acquisition shall be payable in cash on the date of consummation of such
      Permitted Acquisition, other than (1) unsecured Indebtedness in an amount not
      to
      exceed 20% of the aggregate consideration and other amounts payable in
      connection with such Permitted Acquisition and (2) amounts due and payable
      after
      the date of the consummation of such Permitted Acquisition under customary
      non-competition agreements in an amount not to exceed $1,000,000 per
      agreement;

     

    (D) such
      Permitted Acquisition shall be consensual and shall have been approved by the
      Target's board of directors or other governing body and, if applicable, the
      Target's Stockholders;

     

    (E) no
      Indebtedness or Guaranteed Indebtedness shall be incurred, assumed or otherwise
      be reflected on a consolidated balance sheet of Borrowers and Target after
      giving effect to such Permitted Acquisition, except (1) Loans made hereunder
      and
      (2) Indebtedness and/or Guaranteed Indebtedness permitted under Section
      6.3
      or
Section
      6.6,
      as
      applicable; 

     

    (F) the
      Target
      shall have Pro Forma Acquisition EBITDA of not less than $0 for the trailing
      twelve month period preceding the date of the consummation of the Permitted
      Acquisition, as determined based upon the Target's financial statements for
      its
      most recently completed fiscal year and its most recent interim financial period
      completed within 60 days prior to the date of consummation of such Permitted
      Acquisition;

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    (G) the
      business and assets acquired in such Permitted Acquisition shall be free and
      clear of all Liens (other than Permitted Encumbrances);

     

    (H) at
      or
      prior to the closing of any Permitted Acquisition, subject to Section
      5.9(b),
      Agent
      will be granted a first priority perfected Lien (subject to Permitted
      Encumbrances) in all assets acquired pursuant thereto or, as applicable, in
      the
      assets and Stock of the Target, and Borrowers and the Target shall have executed
      such documents and taken such actions as may be reasonably required by Agent
      in
      connection therewith;

     

    (I) concurrently
      with delivery of the notice referred to in clause
      (A)
      above,
      Borrowers shall have delivered to Agent, in form and substance satisfactory
      to
      Agent in its reasonable credit judgment:

     

    
      	 	
              (1)

            	
              a
                pro forma consolidated balance sheet, income statement and cash flow
                statement of Holdings and its Subsidiaries (the "Acquisition
                Pro Forma"),
                based on recent financial statements, which shall fairly present
                in all
                material respects the assets, liabilities, financial condition and
                results
                of operations of Holdings and its Subsidiaries in accordance with
                GAAP
                consistently applied, but taking into account such Permitted Acquisition
                and the funding of all Loans in connection therewith, and such Acquisition
                Pro Forma shall (x) reflect that, on a pro forma basis, Holdings
                and its
                Subsidiaries would have had a Leverage Ratio not in excess of 1.0
                to 1.0
                for the four quarter period reflected in the Compliance Certificate
                most
                recently delivered to Agent pursuant to Section
                4.1
                prior to the consummation of such Permitted Acquisition (after giving
                effect to such Permitted Acquisition and all Loans funded in connection
                therewith as if made on the first day of such period), and (y) reflect
                that, on a pro forma basis, no Event of Default has occurred and
                is
                continuing or would result after giving effect to such Permitted
                Acquisition; and

            

    

     

    
      	 	
              (2)

            	
              a
                certificate of the chief financial officer of Holdings to the effect
                that:
                (x) the Credit Parties will be Solvent upon the consummation of the
                Permitted Acquisition; (y) the Acquisition Pro Forma fairly presents
                the
                financial condition of Holdings and its Subsidiaries (on a consolidated
                basis) as of the date thereof after giving effect to the Permitted
                Acquisition; and (z) Holdings and its Subsidiaries have completed
                their
                due diligence investigation with respect to the Target and such Permitted
                Acquisition, which investigation was conducted in a commercially
                reasonable manner, consistent with past practices;
                

            

    

     

    (J) on
      or
      prior to the date of such Permitted Acquisition (or promptly thereafter for
      any
      Threshold Acquisition), Agent shall have received (1) a copy of the acquisition
      agreement and (2) copies of all other related agreements, instruments, opinions,
      certificates, lien search results and other documents reasonably requested
      by
      Agent.

     

    Notwithstanding
      anything to the contrary in this Section
      6.1,
      Borrowers shall not be required to satisfy the conditions set forth in
      subsections (C),
      (F)
      and
      (I)
      above
      for any Threshold Acquisition.

     

    
      
        
        

      

      
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    6.2. Investments;
      Loans and Advances.

     

    Except
      as
      otherwise expressly permitted by this Section 6,
      no
      Credit Party shall make or permit to exist any investment in, or make, accrue
      or
      permit to exist loans or advances of money to, any Person, through the direct
      or
      indirect lending of money, holding of securities or otherwise, except that:
      (a) Borrowers may hold investments comprised of notes payable, or stock or
      other securities issued by Account Debtors to any Borrower pursuant to
      negotiated agreements with respect to settlement of such Account Debtor's
      Accounts in the ordinary course of business, so long as the aggregate amount
      of
      such Accounts so settled by Borrowers does not exceed $500,000; (b) each Credit
      Party may make and maintain investments in any other Credit Party; provided,
      that,
      (i) the aggregate amount of investments made by Credit Parties (other than
      any
      Non-Guarantor Subsidiary) in Odyssey Fort Worth and Odyssey Detroit shall not
      exceed $8,000,000 and (ii) the aggregate amount of investments made by Credit
      Parties (other than any Non-Guarantor Subsidiary) in all Non-Guarantor
      Subsidiaries (excluding Odyssey Fort Worth and Odyssey Detroit) shall not exceed
      $20,000,000; (c) Borrowers may make investments in (i) marketable
      direct obligations issued or unconditionally guaranteed by the United States
      of
      America or any agency thereof maturing within one year from the date of
      acquisition thereof, (ii) commercial paper maturing no more than one year
      from the date of creation thereof and currently having the highest rating
      obtainable from either Standard & Poor's Ratings Group or Moody's Investors
      Service, Inc., (iii) certificates of deposit maturing no more than one year
      from the date of creation thereof issued by commercial banks incorporated under
      the laws of the United States of America, each having combined capital, surplus
      and undivided profits of not less than $300,000,000 and having a senior
      unsecured rating of "A" or better by a nationally recognized rating agency
      (an
      "A
      Rated
      Bank"),
      (iv) time deposits maturing no more than 30 days from the date of creation
      thereof with A Rated Banks and (v) mutual funds that invest solely in one
      or more of the investments described in clauses (i)
      through
(iv)
      above,
      and (d) other investments not exceeding $5,000,000 in the aggregate at any
      time outstanding.

     

    
      
        
        

      

      
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    6.3. Indebtedness.

     

    No
      Credit
      Party shall create, incur, assume or permit to exist any Indebtedness, except
      (without duplication) (i) Indebtedness secured by purchase money security
      interests and Capital Leases permitted in Section 6.7(c),
      (ii) the Loans and the other Obligations, (iii) unfunded pension fund
      and other employee benefit plan obligations and liabilities to the extent they
      are permitted to remain unfunded under applicable law, (iv) existing
      Indebtedness described in Disclosure
      Schedule 6.3
      and
      refinancings thereof or amendments or modifications thereto that do not have
      the
      effect of increasing the principal amount thereof or changing the amortization
      thereof (other than to extend the same) and that are otherwise on terms and
      conditions no less favorable to any Credit Party than the terms of the
      Indebtedness being refinanced, amended or modified, (v) (i) Indebtedness
      consisting of intercompany loans and advances made by any Credit Party (other
      than the Non-Guarantor Subsidiaries) to any other Credit Party; provided,
      that,
      Credit Parties shall not make intercompany loans or advances to the
      Non-Guarantor Subsidiaries in excess of the respective amounts permitted under
      Section 6.2(b) less the amount of any other investments made under Section
      6.2(b) and (ii) Subordinated Indebtedness consisting of intercompany loans
      and
      advances made by any Non-Guarantor Subsidiary to any other Credit Party, (vi)
      Indebtedness arising upon the draw of one or more Permitted L/Cs, and (vii)
      unsecured Indebtedness incurred (x) in connection with Permitted Acquisitions
      not exceeding $10,000,000 in the aggregate at any time outstanding and (y)
      in
      connection with any single Permitted Acquisition not exceeding $5,000,000 in
      the
      aggregate.

     

    6.4. Employee
      Loans and Affiliate Transactions.

     

    (a) No
      Credit
      Party shall enter into or be a party to any transaction with any Affiliate
      (other than another Credit Party that is not a Non-Guarantor Subsidiary) thereof
      except in the ordinary course of and pursuant to the reasonable requirements
      of
      such Credit Party's business and upon fair and reasonable terms that are no
      less
      favorable to such Credit Party than would be obtained in a comparable arm's
      length transaction with a Person not an Affiliate of such Credit Party. In
      addition, if any such transaction or series of related transactions involves
      payments in excess of $1,000,000 in the aggregate, the terms of these
      transactions must be disclosed in advance, in writing, to Agent and Lenders.
      All
      such transactions existing as of the date hereof are described in Disclosure
      Schedule 6.4(a).

     

    (b) No
      Credit
      Party shall enter into any lending or borrowing transaction with any employees
      of any Credit Party, except loans to its respective employees in the ordinary
      course of business consistent with past practices for travel and entertainment
      expenses, relocation costs and similar purposes and stock option financing
      up to
      a maximum of $100,000 to any employee and up to a maximum of $500,000 in the
      aggregate at any one time outstanding.

     

    
      
        
        

      

      
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    6.5. Capital
      Structure and Business.

     

    No
      Credit
      Party shall (a) issue or sell any shares of preferred Stock to the extent
      the terms of such preferred Stock provide for, or permit the holders of such
      preferred Stock to require, a mandatory redemption or any other cash payment
      prior to May 24, 2009 unless such redemption or other cash payment is subject
      to
      the terms of this Agreement and the other Loan Documents, (b) make any
      change in its capital structure as described in Disclosure
      Schedule 3.8,
      including the issuance or sale of any shares of Stock, warrants or other
      securities convertible into Stock or any revision of the terms of its
      outstanding Stock; provided,
      that
      Holdings may issue or sell shares of its Stock for cash so long as no Change
      of
      Control occurs after giving effect thereto, or (c) amend its charter or
      bylaws in a manner that would adversely affect Agent or Lenders or such Credit
      Party's duty or ability to repay the Obligations. No Credit Party shall engage
      in any business other than the businesses currently engaged in by it or
      businesses reasonably related thereto.

     

    6.6. Guaranteed
      Indebtedness.

     

    No
      Credit
      Party shall create, incur, assume or permit to exist any Guaranteed Indebtedness
      in an aggregate amount greater than $1,000,000 except (a) by endorsement of
      instruments or items of payment for deposit to the general account of any Credit
      Party (other than a Non-Guarantor Subsidiary), (b) for Guaranteed
      Indebtedness incurred for the benefit of any other Credit Party (other than
      a
      Non-Guarantor Subsidiary) if the primary obligation is expressly permitted
      by
      this Agreement and (c) reimbursement obligations in respect of Permitted
      L/Cs.

     

    6.7. Liens.

     

    No
      Credit
      Party shall create, incur, assume or permit to exist any Lien on or with respect
      to its Accounts or any of its other properties or assets (whether now owned
      or
      hereafter acquired) (including any fee ownership interests in Real Estate which
      have not been required to be encumbered as Collateral pursuant to Section 5.9(b)
      hereof) except for (a) Permitted Encumbrances; (b) Liens in existence
      on the date hereof and summarized on Disclosure
      Schedule 6.7
      securing
      the Indebtedness described on Disclosure
      Schedule 6.3
      and
      permitted refinancings, extensions and renewals thereof, including extensions
      or
      renewals of any such Liens; provided,
      that the
      principal amount of the Indebtedness so secured is not increased and the Lien
      does not attach to any other property; and (c) Liens created after the date
      hereof by conditional sale or other title retention agreements (including
      Capital Leases) or in connection with purchase money Indebtedness with respect
      to assets acquired by any Credit Party in the ordinary course of business,
      involving the incurrence of an aggregate amount of purchase money Indebtedness
      and Capital Lease Obligations of not more than $5,000,000 outstanding at any
      one
      time for all such Liens (provided
      that such
      Liens attach only to the assets subject to such purchase money debt and such
      Indebtedness is or was incurred within 20 days following such purchase and
      does
      not exceed one hundred percent (100%) of the purchase price of the subject
      assets). In addition, no Credit Party shall become a party to any agreement,
      note, indenture or instrument, or take any other action, that would prohibit
      the
      creation of a Lien on any of its properties or other assets in favor of Agent,
      on behalf of itself and Lenders, as additional collateral for the Obligations,
      except operating leases, Capital Leases or Licenses which prohibit Liens upon
      the assets that are subject thereto.

     

    
      
        
        

      

      
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    6.8. Sale
      of
      Stock and Assets.

     

    Except
      as
      otherwise expressly permitted by Section 6.1 of this Agreement, no Credit Party
      shall sell, transfer, convey, assign or otherwise dispose of any of its
      properties or other assets, including the Stock of any of its Subsidiaries
      (whether in a public or a private offering or otherwise) or any of its Accounts,
      other than (a) the sale of Inventory in the ordinary course of business,
      and (b) the sale, transfer, conveyance or other disposition by a Credit
      Party of assets (other than the sale of Inventory in the ordinary course of
      business) having a net book value not exceeding $1,000,000 in any single
      transaction or $3,000,000 in the aggregate in any Fiscal Year. With respect
      to
      any disposition of assets or other properties permitted pursuant to clause (b)
      above,
      subject to Section 1.3(b),
      Agent
      agrees on reasonable prior written notice to release its Lien on such assets
      or
      other properties in order to permit the applicable Credit Party to effect such
      disposition and shall execute and deliver to Borrowers, at Borrowers' expense,
      appropriate UCC-3 termination statements and other releases as reasonably
      requested by Borrowers.

     

    6.9. ERISA.

     

    No
      Credit
      Party shall, or shall cause or permit any ERISA Affiliate to, cause or permit
      to
      occur an event that could result in the imposition of a Lien under
      Section 412 of the IRC or Section 302 or 4068 of ERISA
      or cause
      or permit to occur an ERISA Event to the extent such ERISA Event could
      reasonably be expected to have a Material Adverse Effect.

     

    6.10. Financial
      Covenants.

     

    Borrowers
      shall not breach or fail to comply with any of the Financial
      Covenants.

     

    6.11. Hazardous
      Materials.

     

    No
      Credit
      Party shall cause or permit a Release of any Hazardous Material on, at, in,
      under, above, to, from or about any of the Real Estate where such Release would
      (a) violate in any respect, or form the basis for any Environmental
      Liabilities under, any Environmental Laws or Environmental Permits or
      (b) otherwise adversely impact the value of any of the Real Estate or any
      of the Collateral, other than such violations or Environmental Liabilities
      that
      could not reasonably be expected to have a Material Adverse Effect.

     

    
      
        
        

      

      
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    6.12. Sale-Leasebacks.

     

    No
      Credit
      Party shall engage in any sale-leaseback, synthetic lease or similar transaction
      involving any of its assets.

     

    6.13. Cancellation
      of Indebtedness.

     

    No
      Credit
      Party shall cancel any claim or debt owing to it in excess of $500,000, except
      for reasonable consideration negotiated on an arm's length basis and in the
      ordinary course of its business consistent with past practices.

     

    6.14. Restricted
      Payments.

     

    No
      Credit
      Party shall make any Restricted Payment, except (a) payments with respect
      to intercompany loans and advances between Credit Parties to the extent
      permitted by Section 6.3,
      (b) dividends and distributions by Subsidiaries of any Credit Party paid to
      such Credit Party, (c) employee loans permitted under Section 6.4(b),
      (d)
      management fees paid by any Credit Party to any other Credit Party (other than
      Non-Guarantor Subsidiaries), and (e) payments by Holdings to purchase or redeem
      its Stock (or warrants, options or other rights to acquire such Stock) in an
      aggregate amount not to exceed $51,000,0000 in Fiscal Year 2007 and $30,000,000
      in any Fiscal Year thereafter; provided
      that,
      with respect to clause (e) only, (i) no Default or Event of Default exists
      at
      the time of any such payment or would occur as a result of the payment thereof
      and (ii) Borrowers are in compliance with the Financial Covenants on a pro
      forma
      basis for the four Fiscal Quarter period most recently ended prior to the making
      of such Restricted Payment as if the Restricted Payment (as well as any other
      Restricted Payment made since the end of such period) had occurred on the first
      day of such four Fiscal Quarter period.

     

    6.15. Change
      of
      Corporate Name or Location; Change of Fiscal Year.

     

    No
      Credit
      Party shall (a) change its name as it appears in official filings in the
      state of its incorporation or other organization, (b) change its chief
      executive office, principal place of business, or the location of its records
      concerning the Collateral, or (c) change its organization identification
      number, if any, issued by its state of incorporation or other organization,
      in
      each case without at least 30 days prior written notice to Agent and, in the
      case of a change in any Credit Party's chief executive office, a landlord
      agreement that is reasonably satisfactory to Agent shall have been obtained
      with
      respect to such location, and provided
      that any
      such new location shall be in the continental United States. No Credit Party
      shall change its Fiscal Year. No Credit Party shall (a) change the type of
      entity that it is, or (b) change its state of incorporation or
      organization, in each case without at least 30 days prior written notice to
      Agent and after Agent's written acknowledgment that any reasonable action
      requested by Agent in connection therewith, including to continue the perfection
      of any Liens in favor of Agent, on behalf of Lenders, in any Collateral, has
      been completed or taken.

     

    
      
        
        

      

      
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    6.16. No
      Impairment of Intercompany Transfers.

     

    No
      Credit
      Party shall directly or indirectly enter into or become bound by any agreement,
      instrument, indenture or other obligation (other than this Agreement and the
      other Loan Documents) that could directly or indirectly restrict, prohibit
      or
      require the consent of any Person with respect to the payment of dividends
      or
      distributions or the making or repayment of intercompany loans by a Subsidiary
      of any Borrower to any Borrower or between Borrowers.

     

    6.17. No
      Speculative Transactions.

     

    No
      Credit
      Party shall engage in any transaction involving commodity options, futures
      contracts or similar transactions, except solely to hedge against fluctuations
      in the prices of commodities owned or purchased by it and the values of foreign
      currencies receivable or payable by it and interest swaps, caps or
      collars.

     

    6.18. Leases;
      Real Estate Purchases.

     

    Except
      as
      permitted under Section 6.1
      in
      connection with a Permitted Acquisition, no Credit Party shall purchase a fee
      simple ownership interest in any single parcel of Real Estate with a purchase
      price in excess of $5,000,000.

     

    6.19. Business
      Associate Agreement.

     

    No
      Credit
      Party shall terminate the Business Associate Agreement.

    

    
      
        
        

      

      
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              7.

            	
              TERM

            

    

     

    7.1. Termination.

     

    The
      financing arrangements contemplated hereby shall be in effect until the
      Commitment Termination Date, and the Loans and all other Obligations shall
      be
      automatically due and payable in full on such date.

     

    7.2. Survival
      of Obligations Upon Termination of Financing Arrangements.

     

    Except
      as
      otherwise expressly provided for in the Loan Documents, no termination or
      cancellation (regardless of cause or procedure) of any financing arrangement
      under this Agreement shall in any way affect or impair the
      obligations, duties
      and
      liabilities of the Credit Parties or the rights of Agent and Lenders relating
      to
      any unpaid portion of the Loans or any other Obligations, due or not due,
      liquidated, contingent or unliquidated, or any transaction or event occurring
      prior to such termination, or any transaction or event, the performance of
      which
      is required after the Commitment Termination Date. Except as otherwise expressly
      provided herein or in any other Loan Document, all undertakings, agreements,
      covenants, warranties and representations of or binding upon the Credit Parties,
      and all rights of Agent and each Lender, all as contained in the Loan Documents,
      shall not terminate or expire, but rather shall survive any such termination
      or
      cancellation and shall continue in full force and effect until the Termination
      Date; provided,
      that the
      provisions of Section 11,
      the
      payment obligations under Sections 1.15
      and
1.16,
      and the
      indemnities contained in the Loan Documents shall survive the Termination
      Date.

     

     

    
      
        
        

      

      
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              8.

            	
              EVENTS
                OF DEFAULT; RIGHTS AND
                REMEDIES

            

    

     

    8.1. Events
      of
      Default.

     

    The
      occurrence of any one or more of the following events (regardless of the reason
      therefor) shall constitute an "Event of Default" hereunder:

     

    (a) Any
      Borrower (i) fails to make any payment of principal of the Loans when due
      and payable, (ii) fails to make any payment of interest on, or Fees owing in
      respect of, the Loans or any of the other Obligations within 3 Business Days
      following the date such interest, Fees or other Obligations are due and payable,
      or (iii) fails to pay or reimburse Agent or Lenders for any expense
      reimbursable hereunder or under any other Loan Document within 10 days following
      Agent's demand for such reimbursement or payment of expenses.

     

    (b) Any
      Credit
      Party fails or neglects to perform, keep or observe any of the provisions of
      Sections 1.4,
      5.4(a)
      or
6,
      or any
      of the provisions set forth in Annex
      F,
      respectively. 

     

    (c) Any
      Borrower fails or neglects to perform, keep or observe any of the provisions
      of
Section 1.8
      or 4 or
      any provisions set forth in Annexes
      C or E,
      respectively, and the same shall remain unremedied for the earlier of 3 Business
      Days after (i) any Senior Officer's knowledge of such breach or (ii) receipt
      by
      Borrowers of written notice from Agent of such breach. 

     

    (d) Any
      Credit
      Party fails or neglects to perform, keep or observe any other provision of
      this
      Agreement or of any of the other Loan Documents (other than any provision
      embodied in or covered by any other clause of this Section 8.1)
      and the
      same shall remain unremedied for the earlier of 15 days after (i) any Senior
      Officer's knowledge of such breach or (ii) receipt by Borrowers of written
      notice from Agent of such breach; provided, however, that if such breach is
      not
      susceptible to cure within such 15-day period and Borrowers are diligently
      pursuing such cure at the expiration of such 15-day period, such 15-day period
      shall be extended an additional 15 days.

     

    (e) A
      default
      or breach occurs under any other agreement, document or instrument to which
      any
      Credit Party is a party that is not cured within any applicable grace period
      therefor, and such default or breach (i) involves the failure to make any
      payment when due in respect of any Indebtedness or Guaranteed Indebtedness
      (other than the Obligations) of any Credit Party in excess of $1,000,000 in
      the
      aggregate (including (x) undrawn committed or available amounts and
      (y) amounts owing to all creditors under any combined or syndicated credit
      arrangements), or (ii) causes, or permits any holder of such Indebtedness
      or Guaranteed Indebtedness or a trustee to cause, Indebtedness or Guaranteed
      Indebtedness or a portion thereof in excess of $1,000,000 in the aggregate
      to
      become due prior to its stated maturity or prior to its regularly scheduled
      dates of payment, or cash collateral in respect thereof to be demanded, in
      each
      case, regardless of whether such default is waived, or such right is exercised,
      by such holder or trustee.

     

    (f) Any
      representation or warranty herein or in any Loan Document or in any written
      statement, report, financial statement or certificate made or delivered to
      Agent
      or any Lender by any Credit Party is untrue or incorrect in any material respect
      as of the date when made or deemed made.

     

    (g) Assets
      of
      any Credit Party with a fair market value of $500,000 or more are attached,
      seized, levied upon or subjected to a writ or distress warrant, or come within
      the possession of any receiver, trustee, custodian or assignee for the benefit
      of creditors of any Credit Party and such condition continues for 30 days or
      more.

     

    (h) A
      case or
      proceeding is commenced against any Credit Party seeking a decree or order
      in
      respect of such Credit Party (i) under the Bankruptcy Code, or any other
      applicable federal, state or foreign bankruptcy or other similar law,
      (ii) appointing a custodian, receiver, liquidator, assignee, trustee or
      sequestrator (or similar official) for such Credit Party or for any substantial
      part of any such Credit Party's assets, or (iii) ordering the winding-up or
      liquidation of the affairs of such Credit Party, and such case or proceeding
      shall remain undismissed or unstayed for 60 days or more or a decree or order
      granting the relief sought in such case or proceeding shall be entered by a
      court of competent jurisdiction.

     

    (i) Any
      Credit
      Party (i) files a petition seeking relief under the Bankruptcy Code, or any
      other applicable federal, state or foreign bankruptcy or other similar law,
      (ii) consents to or fails to contest in a timely and appropriate manner the
      institution of proceedings thereunder or the filing of any such petition or
      the
      appointment of or taking possession by a custodian, receiver, liquidator,
      assignee, trustee or sequestrator (or similar official) for such Credit Party
      or
      for any substantial part of any such Credit Party's assets, (iii) makes an
      assignment for the benefit of creditors, (iv) takes any action in
      furtherance of any of the foregoing, or (v) admits in writing its inability
      to, or is generally unable to, pay its debts as such debts become
      due.

     

    (j) A
      final
      judgment or judgments for the payment of money in excess of $1,000,000 in the
      aggregate at any time are outstanding against one or more of the Credit Parties
      and the same are not, within 30 days after the entry thereof, discharged or
      execution thereof stayed or bonded pending appeal, or such judgments are not
      discharged prior to the expiration of any such stay.

     

    
      
        
        

      

      
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    (k) Any
      material provision of any Loan Document for any reason ceases to be valid,
      binding and enforceable in accordance with its terms (or any Credit Party shall
      challenge the enforceability of any Loan Document or shall assert in writing,
      or
      engage in any action or inaction based on any such assertion, that any provision
      of any of the Loan Documents has ceased to be or otherwise is not valid, binding
      and enforceable in accordance with its terms), or any Lien created under any
      Loan Document ceases to be a valid and perfected first priority Lien (except
      as
      otherwise permitted herein or therein) in any of the Collateral purported to
      be
      covered thereby due to any action or omission by any Credit Party.

     

    (l) Any
      Change
      of Control occurs.

     

    8.2. Remedies.

     

    (a) If
      any
      Default or Event of Default has occurred and is continuing, Agent may (and
      at
      the written request of the Requisite Lenders shall), without notice, suspend
      the
      Revolving Loan facility with respect to additional Advances and/or the
      incurrence of additional Letter of Credit Obligations, whereupon any additional
      Advances and additional Letter of Credit Obligations shall be made or incurred
      in Agent's sole discretion (or in the sole discretion of the Requisite Lenders,
      if such suspension occurred at their direction) so long as such Default or
      Event
      of Default is continuing. If any Event of Default has occurred and is
      continuing, Agent may (and at the written request of Requisite Lenders shall),
      without notice except as otherwise expressly provided herein, increase the
      rate
      of interest applicable to the outstanding principal balance of the Loans and
      the
      Letter of Credit Fees to the Default Rate.

     

    (b) If
      any
      Event of Default has occurred and is continuing, Agent may (and at the written
      request of the Requisite Lenders shall), without notice: (i) terminate the
      Revolving Loan facility with respect to further Advances or the incurrence
      of
      further Letter of Credit Obligations; (ii) declare all or any portion of
      the Obligations, including all or any portion of any Loan to be forthwith due
      and payable, and require that the Letter of Credit Obligations be cash
      collateralized as provided in Annex B,
      all
      without presentment, demand, protest or further notice of any kind, all of
      which
      are expressly waived by Borrowers and each other Credit Party; (iii) conduct,
      at
      Borrowers' expense, such appraisals of Borrowers' assets as may be desired
      by
      Agent or Lenders or (iv) exercise any rights and remedies provided to Agent
      under the Loan Documents or at law or equity, including all remedies provided
      under the Code; provided,
      that
      upon the occurrence of an Event of Default specified in Sections 8.1(h)
      or
(i),
      the
      Revolving Loan facility shall be immediately terminated and all of the
      Obligations, including the aggregate Revolving Loan, shall become immediately
      due and payable without declaration, notice or demand by any
      Person.

     

    
      
        
        

      

      
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    8.3. Waivers
      by
      Credit Parties.

     

    Except
      as
      otherwise provided for in this Agreement or by applicable law, each Credit
      Party
      waives (including for purposes of Section 12):
      (a) presentment, demand and protest and notice of presentment, dishonor,
      notice of intent to accelerate, notice of acceleration, protest, default,
      nonpayment, maturity, release, compromise, settlement, extension or renewal
      of
      any or all commercial paper, accounts, contract rights, documents, instruments,
      chattel paper and guaranties at any time held by Agent on which any Credit
      Party
      may in any way be liable, and hereby ratifies and confirms whatever Agent may
      do
      in this regard, (b) all rights to notice and a hearing prior to Agent's
      taking possession or control of, or to Agent's replevy, attachment or levy
      upon,
      the Collateral or any bond or security that might be required by any court
      prior
      to allowing Agent to exercise any of its remedies, and (c) the benefit of
      all valuation, appraisal, marshaling and exemption laws.

     

    
      
        
        

      

      
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              9.

            	
              ASSIGNMENT
                AND PARTICIPATIONS; APPOINTMENT OF
                AGENT

            

    

     

    9.1. Assignment
      and Participations.

     

    (a) Subject
      to
      the terms of this Section 9.1,
      any
      Lender may make an assignment to a Qualified Assignee of, or sell participations
      in, at any time or times, the Loan Documents, Loans, Letter of Credit
      Obligations and any Commitment or any portion thereof or interest therein,
      including any Lender's rights, title, interests, remedies, powers or duties
      thereunder. Any assignment by a Lender shall: (i) require the consent of
      Agent (which consent shall not be unreasonably withheld or delayed with respect
      to a Qualified Assignee) and the execution of an assignment agreement (an
      "Assignment
      Agreement")
      substantially in the form attached hereto as Exhibit
      9.1(a)
      and
      otherwise in form and substance reasonably satisfactory to, and acknowledged
      by,
      Agent; (ii) be conditioned on such assignee Lender representing to the
      assigning Lender and Agent that it is purchasing the applicable Loans to be
      assigned to it for its own account, for investment purposes and not with a
      view
      to the distribution thereof; (iii) after giving effect to any such partial
      assignment, the assignee Lender shall have Commitments in an amount at least
      equal to $5,000,000 and the assigning Lender shall have retained Commitments
      in
      an amount at least equal to $5,000,000; (iv) include a payment to Agent of
      an assignment fee of $3,500; and (v) so long as no Event of Default has
      occurred and is continuing, require the consent of Borrowers (which consent
      shall not be unreasonably withheld or delayed with respect to a Qualified
      Assignee, it being understood that Borrowers shall not be unreasonable in
      withholding their consent based on the negative reputation of a potential
      Qualified Assignee or as a result of a potential Qualified Assignee being a
      lead
      agent or arranger for a financing of a competitor of Borrowers in the hospice
      services business that is of comparable size to Borrowers). Borrowers agree
      that
      upon request of Agent they shall provide a list of potential Qualified Assignees
      for which they intend to withhold their consent and the reasons therefor. In
      the
      case of an assignment by a Lender under this Section 9.1,
      the
      assignee shall have, to the extent of such assignment, the same rights, benefits
      and obligations as all other Lenders hereunder. The assigning Lender shall
      be
      relieved of its obligations hereunder with respect to its Commitments or
      assigned portion thereof from and after the date of such assignment. Each
      Borrower hereby acknowledges and agrees that any permitted assignment shall
      give
      rise to a direct obligation of Borrowers to the assignee and that the assignee
      shall be considered to be a "Lender". In all instances, each Lender's liability
      to make Loans hereunder shall be several and not joint and shall be limited
      to
      such Lender's Pro Rata Share of the applicable Commitment. In the event Agent
      or
      any Lender assigns or otherwise transfers all or any part of the Obligations
      in
      accordance herewith, Agent or any such Lender shall so notify Borrowers and
      Borrowers shall, upon the written request of Agent or such Lender, execute
      new
      Notes in exchange for the Notes, if any, being assigned. Notwithstanding the
      foregoing provisions of this Section 9.1(a),
      any
      Lender may at any time pledge the Obligations held by it and such Lender's
      rights under this Agreement and the other Loan Documents to a Federal Reserve
      Bank, and any Lender that is an investment fund may assign the Obligations
      held
      by it and such Lender's rights under this Agreement and the other Loan Documents
      to another investment fund managed by the same investment advisor; provided,
      that no
      such pledge to a Federal Reserve Bank shall release such Lender from such
      Lender's obligations hereunder or under any other Loan Document. 

     

    (b) Any
      participation by a Lender of all or any part of its Commitments shall be made
      with the understanding that all amounts payable by Borrowers hereunder shall
      be
      determined as if that Lender had not sold such participation, and that the
      holder of any such participation shall not be entitled to require such Lender
      to
      take or omit to take any action hereunder except actions directly affecting
      (i) any reduction in the principal amount of, or interest rate or Fees
      payable with respect to, any Loan in which such holder participates,
      (ii) any extension of the scheduled amortization of the principal amount of
      any Loan in which such holder participates or the final maturity date thereof,
      and (iii) any release of all or substantially all of the Collateral (other
      than in accordance with the terms of this Agreement, the Collateral Documents
      or
      the other Loan Documents). Solely for purposes of Sections 1.13,
      1.15,
      1.16
      and
9.8,
      each
      Borrower acknowledges and agrees that a participation shall give rise to a
      direct obligation of Borrowers to the participant and the participant shall
      be
      considered to be a "Lender". Except as set forth in the preceding sentence
      no
      Borrower or Credit Party shall have any obligation or duty to any participant.
      Neither Agent nor any Lender (other than the Lender selling a participation)
      shall have any duty to any participant and may continue to deal solely with
      the
      Lender selling a participation as if no such sale had occurred.

     

    (c) Except
      as
      expressly provided in this Section 9.1,
      no
      Lender shall, as between Borrowers and that Lender, or Agent and that Lender,
      be
      relieved of any of its obligations hereunder as a result of any sale,
      assignment, transfer or negotiation of, or granting of participation in, all
      or
      any part of the Loans, the Notes or other Obligations owed to such
      Lender.

     

    (d) Each
      Credit Party executing this Agreement shall assist any Lender permitted to
      sell
      assignments or participations under this Section 9.1
      as
      reasonably required to enable the assigning or selling Lender to effect any
      such
      assignment or participation, including the execution and delivery of any and
      all
      agreements, notes and other documents and instruments as shall be requested
      and,
      if requested by Agent, the preparation of informational materials for, and
      the
      participation of management in meetings with, potential assignees or
      participants. Each Credit Party executing this Agreement shall certify the
      correctness, completeness and accuracy of all descriptions of the Credit Parties
      and their respective affairs contained in any selling materials provided by
      them
      and all other information provided by them and included in such materials,
      except that any Projections delivered by Borrowers shall only be certified
      by
      Borrowers as having been prepared by Borrowers in compliance with the
      representations contained in Section 3.4(c).

     

    (e) Subject
      to
      Section 11.8, any Lender may furnish any information concerning Credit Parties
      in the possession of such Lender from time to time to assignees and participants
      (including prospective assignees and participants); provided,
      that
      such Lender shall obtain from assignees or participants confidentiality
      covenants substantially equivalent to those contained in Section 11.8.

     

    (f) So
      long as
      no Event of Default has occurred and is continuing, no Lender shall assign
      or
      sell participations in any portion of its Loans or Commitments to a potential
      Lender or participant, if, as of the date of the proposed assignment or sale,
      the assignee Lender or participant would be subject to capital adequacy or
      similar requirements under Section 1.16(a),
      increased costs under Section 1.16(b),
      an
      inability to fund LIBOR Loans under Section 1.16(c),
      or
      withholding taxes in accordance with Section 1.15(a).
      

     

    (g) Notwithstanding
      anything to the contrary contained herein, any Lender (a "Granting
      Lender"),
      may
      grant to a special purpose funding vehicle (an "SPC"),
      identified as such in writing by the Granting Lender to Agent and Borrowers,
      the
      option to provide to Borrowers all or any part of any Loans that such Granting
      Lender would otherwise be obligated to make to Borrowers pursuant to this
      Agreement; provided,
      that
      (i) nothing herein shall constitute a commitment by any SPC to make any
      Loan; and (ii) if an SPC elects not to exercise such option or otherwise
      fails to provide all or any part of such Loan, the Granting Lender shall be
      obligated to make such Loan pursuant to the terms hereof. The making of a Loan
      by an SPC hereunder shall utilize the Commitment of the Granting Lender to
      the
      same extent, and as if such Loan were made by such Granting Lender. No SPC
      shall
      be liable for any indemnity or similar payment obligation under this Agreement
      (all liability for which shall remain with the Granting Lender). Any SPC may
      (i) with written notice to, but without the prior written consent of,
      Borrowers and Agent and without paying any processing fee therefor assign all
      or
      a portion of its interests in any Loans to the Granting Lender or to any
      financial institutions (consented to by Borrowers and Agent in writing)
      providing liquidity and/or credit support to or for the account of such SPC
      to
      support the funding or maintenance of Loans and (ii) subject to the terms
      of Section 11.8, disclose on a confidential basis any non-public information
      relating to its Loans to any rating agency, commercial paper dealer or provider
      of any surety, guarantee or credit or liquidity enhancement to such SPC. Subject
      to the terms of Section 11.2, this Section 9.1(g)
      may not
      be amended without the prior written consent of each Granting Lender, all or
      any
      of whose Loans are being funded by an SPC at the time of such amendment. For
      the
      avoidance of doubt, the Granting Lender shall for all purposes, including
      without limitation, the approval of any amendment or waiver of any provision of
      any Loan Document or the obligation to pay any amount otherwise payable by
      the
      Granting Lender under the Loan Documents, continue to be the Lender of record
      hereunder.

     

    
      
        
        

      

      
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    9.2. Appointment
      of Agent.

     

    GE
      Capital
      is hereby appointed to act on behalf of all Lenders as Agent under this
      Agreement and the other Loan Documents. The provisions of this Section 9.2
      are
      solely for the benefit of Agent and Lenders and no Credit
      Party nor any other Person shall have any rights as a third party beneficiary
      of
      any of the provisions hereof. In performing its functions and duties under
      this
      Agreement and the other Loan Documents, Agent shall act solely as an agent
      of
      Lenders and does not assume and shall not be deemed to have assumed any
      obligation toward or relationship of agency or trust with or for any Credit
      Party or any other Person. Agent shall have no duties or responsibilities except
      for those expressly set forth in this Agreement and the other Loan Documents.
      The duties of Agent shall be mechanical and administrative in nature and Agent
      shall not have, or be deemed to have, by reason of this Agreement, any other
      Loan Document or otherwise a fiduciary relationship in respect of any Lender.
      Except as expressly set forth in this Agreement and the other Loan Documents,
      Agent shall not have any duty to disclose, and shall not be liable for failure
      to disclose, any information relating to any Credit Party or any of their
      respective Subsidiaries or any Account Debtor that is communicated to or
      obtained by GE Capital or any of its Affiliates in any capacity. Neither Agent
      nor any of its Affiliates nor any of their respective officers, directors,
      employees, agents or representatives shall be liable to any Lender for any
      action taken or omitted to be taken by it hereunder or under any other Loan
      Document, or in connection herewith or therewith, except for damages caused
      by
      its or their own bad faith, gross negligence or willful misconduct,
      as
      determined by a final court of competent jurisdiction.

     

    If
      Agent
      shall request instructions from Requisite Lenders or all affected Lenders with
      respect to any act or action (including failure to act) in connection with
      this
      Agreement or any other Loan Document, then Agent shall be entitled to refrain
      from such act or taking such action unless and until Agent shall have received
      instructions from Requisite Lenders or all affected Lenders, as the case may
      be,
      and Agent shall not incur liability to any Person by reason of so refraining.
      Agent shall be fully justified in failing or refusing to take any action
      hereunder or under any other Loan Document (a) if such action would, in the
      opinion of Agent, be contrary to law or the terms of this Agreement or any
      other
      Loan Document, (b) if such action would, in the opinion of Agent, expose
      Agent to Environmental Liabilities or (c) if Agent shall not first be
      indemnified to its satisfaction against any and all liability and expense which
      may be incurred by it by reason of taking or continuing to take any such action.
      Without limiting the foregoing, no Lender shall have any right of action
      whatsoever against Agent as a result of Agent acting or refraining from acting
      hereunder or under any other Loan Document in accordance with the instructions
      of Requisite Lenders or all affected Lenders, as applicable.

     

    9.3. Agent's
      Reliance, Etc.

     

    Neither
      Agent nor any of its Affiliates nor any of their respective directors, officers,
      agents or employees shall be liable for any action taken or omitted to be taken
      by it or them under or in connection with this Agreement or the other Loan
      Documents, except for damages caused by its or their own bad faith, gross
      negligence or willful misconduct, as determined by a final court of competent
      jurisdiction. Without limiting the generality of the foregoing, Agent:
      (a) may treat the payee of any Note as the holder thereof until Agent
      receives written notice of the assignment or transfer thereof signed by such
      payee and in form reasonably satisfactory to Agent; (b) may consult with
      legal counsel, independent public accountants and other experts selected by
      it
      and shall not be liable for any action taken or omitted to be taken by it in
      good faith in accordance with the advice of such counsel, accountants or
      experts; (c) makes no warranty or representation to any Lender and shall
      not be responsible to any Lender for any statements, warranties or
      representations made in
      or in
      connection with this Agreement or the other Loan Documents; (d) shall not
      have any duty to ascertain or to inquire as to the performance or observance
      of
      any of the terms, covenants or conditions of this Agreement or the other Loan
      Documents on the part of any Credit Party or to inspect the Collateral
      (including the books and records) of any Credit Party; (e) shall not be
      responsible to any Lender for the due execution, legality, validity,
      enforceability, genuineness, sufficiency or value of this Agreement or the
      other
      Loan Documents or any other instrument or document furnished pursuant hereto
      or
      thereto; and (f) shall incur no liability under or in respect of this
      Agreement or the other Loan Documents by acting upon any notice, consent,
      certificate or other instrument or writing (which may be by telecopy, telegram,
      cable or telex) believed by it to be genuine and signed or sent by the proper
      party or parties.

     

    9.4. GE
      Capital
      and Affiliates.

     

    With
      respect to its Commitments hereunder, GE Capital shall have the same rights
      and powers under this Agreement and the other Loan Documents as any other Lender
      and may exercise the same as though it were not Agent; and the term "Lender"
      or
      "Lenders" shall, unless otherwise expressly indicated, include GE Capital in
      its
      individual capacity. GE Capital and its Affiliates may lend money to, invest
      in,
      and generally engage in any kind of business with, any Credit Party, any of
      their Affiliates and any Person who may do business with or own securities
      of
      any Credit Party or any such Affiliate, all as if GE Capital were not Agent
      and
      without any duty to account therefor to Lenders. GE Capital and its Affiliates
      may accept fees and other consideration from any Credit Party for services
      in
      connection with this Agreement or otherwise without having to account for the
      same to Lenders.

     

    
      
        
        

      

      
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    9.5. Lender
      Credit Decision.

     

    Each
      Lender acknowledges that it has, independently and without reliance upon Agent
      or any other Lender and based on the Financial Statements referred to in
Section 3.4(a)
      and such
      other documents and information as it has deemed appropriate, made its own
      credit and financial analysis of the Credit Parties and its own decision to
      enter into this Agreement. Each Lender also acknowledges that it will,
      independently and without reliance upon Agent or any other Lender and based
      on
      such documents and information as it shall deem appropriate at the time,
      continue to make its own credit decisions in taking or not taking action under
      this Agreement. Each Lender acknowledges the potential conflict of interest
      of
      each other Lender as a result of Lenders holding disproportionate interests
      in
      the Loans, and expressly consents to, and waives any claim based upon, such
      conflict of interest.

     

    9.6. Indemnification.

     

    Lenders
      agree to indemnify Agent (to the extent not reimbursed by Credit Parties and
      without limiting the obligations of Borrowers hereunder), ratably according
      to
      their respective Pro Rata Shares, from and against any and all liabilities,
      obligations, losses, damages, penalties, actions, judgments, suits, costs,
      expenses or disbursements of any kind or nature whatsoever that may be imposed
      on, incurred by, or asserted against Agent in any way relating to or arising
      out
      of this Agreement or any other Loan Document or any action taken or omitted
      to
      be taken by Agent in connection therewith; provided,
      that no
      Lender shall be liable for any portion of such liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses or disbursements
      resulting from Agent's gross negligence or willful misconduct. Without limiting
      the foregoing, each Lender agrees to reimburse Agent promptly upon demand for
      its ratable share of any out-of-pocket expenses (including reasonable counsel
      fees) incurred by Agent in connection with the preparation, execution, delivery,
      administration, modification, amendment or enforcement (whether through
      negotiations, legal proceedings or otherwise) of, or legal advice in respect
      of
      rights or responsibilities under, this Agreement and each other Loan Document,
      to the extent that Agent is not reimbursed for such expenses by Credit Parties.
      

     

    9.7. Successor
      Agent.

     

    Agent
      may
      resign at any time by giving not less than 30 days' prior written notice thereof
      to Lenders and Borrowers. Upon any such resignation, the Requisite Lenders
      shall
      have the right to appoint a successor Agent. If no successor Agent shall have
      been so appointed by the Requisite Lenders and shall have accepted such
      appointment within 30 days after the resigning Agent's giving notice of
      resignation, then the resigning Agent may, on behalf of Lenders, appoint a
      successor Agent, which shall be a Lender, if a Lender is willing to accept
      such
      appointment, or otherwise shall be a commercial bank or financial institution
      or
      a subsidiary of a commercial bank or financial institution if such commercial
      bank or financial institution is organized under the laws of the United States
      of America or of any State thereof and has a combined capital and surplus of
      at
      least $300,000,000. If no successor Agent has been appointed pursuant to the
      foregoing, within 30 days after the date such notice of resignation was given
      by
      the resigning Agent, such resignation shall become effective and the Requisite
      Lenders shall thereafter perform all the duties of Agent hereunder until such
      time, if any, as the Requisite Lenders appoint a successor Agent as provided
      above. Any successor Agent appointed by Agent or Requisite Lenders hereunder
      shall be subject to the prior approval of Borrowers, such approval not to be
      unreasonably withheld or delayed; provided,
      that
      such approval shall not be required if an Event of Default has occurred and
      is
      continuing. Upon the acceptance of any appointment as Agent hereunder by a
      successor Agent, such successor Agent shall succeed to and become vested with
      all the rights, powers, privileges and duties of the resigning Agent. Upon
      the
      earlier of the acceptance of any appointment as Agent hereunder by a successor
      Agent or the effective date of the resigning Agent's resignation, the resigning
      Agent shall be discharged from its duties and obligations under this
      Agreement and the other Loan Documents, except that any indemnity rights or
      other rights in favor of such resigning Agent shall continue. After any
      resigning Agent's resignation hereunder, the provisions of this Section 9
      shall
      inure to its benefit as to any actions taken or omitted to be taken by it while
      it was acting as Agent under this Agreement and the other Loan Documents.

     

    
      
        
        

      

      
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    9.8. Setoff
      and
      Sharing of Payments.

     

    In
      addition to any rights now or hereafter granted under applicable law and not
      by
      way of limitation of any such rights, upon the occurrence and during the
      continuance of any Event of Default and subject to Section 9.9(f),
      each
      Lender is hereby authorized at any time or from time to time, without notice
      to
      any Credit Party or to any other Person, any such notice being hereby expressly
      waived, to offset and to appropriate and to apply any and all balances held
      by
      it at any of its offices for the account of any Borrower or Guarantor
      (regardless of whether such balances are then due to such Borrower or Guarantor)
      and any other properties or assets at any time held or owing by that Lender
      or
      that holder to or for the credit or for the account of any Borrower or Guarantor
      against and on account of any of the Obligations that are not paid when due.
      Any
      Lender exercising a right of setoff or otherwise receiving any payment on
      account of the Obligations in excess of its Pro Rata Share thereof shall
      purchase for cash (and the other Lenders or holders shall sell) such
      participations in each such other Lender's or holder's Pro Rata Share of the
      Obligations as would be necessary to cause such Lender to share the amount
      so
      offset or otherwise received with each other Lender or holder in accordance
      with
      their respective Pro Rata Shares (other than offset rights exercised by any
      Lender with respect to Sections 1.13,
      1.15
      or
1.16).
      Each
      Credit Party that, during the existence and continuance of an Event of Default,
      is a Borrower or Guarantor agrees, to the fullest extent permitted by law,
      that
      (a) any Lender may exercise its right to offset with respect to amounts in
      excess of its Pro Rata Share of the Obligations and may sell participations
      in
      such amounts so offset to other Lenders and holders and (b) any Lender so
      purchasing a participation in the Loans made or other Obligations held by other
      Lenders or holders may exercise all rights of offset, bankers' lien,
      counterclaim or similar rights with respect to such participation as fully
      as if
      such Lender or holder were a direct holder of the Loans and the other
      Obligations in the amount of such participation. Notwithstanding the foregoing,
      if all or any portion of the offset amount or payment otherwise received is
      thereafter recovered from the Lender that has exercised the right of offset,
      the
      purchase of participations by that Lender shall be rescinded and the purchase
      price restored without interest.

     

    
      
        
        

      

      
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    9.9. Advances;
      Payments; Non-Funding Lenders; Information; Actions in Concert.

     

    (a) Advances;
      Payments.

     

    (i) Agent
      shall notify Lenders, promptly after receipt of a Notice of Revolving Credit
      Advance and in any event prior to 1:00 p.m. (New York time) on the date such
      Notice of Revolving Advance is received, by telecopy, telephone or other similar
      form of transmission. Each Lender shall make the amount of such Lender's Pro
      Rata Share of such Revolving Credit Advance available to Agent in same day
      funds
      by wire transfer to Agent's account as set forth in Annex G
      not later
      than 3:00 p.m. (New York time) on the requested funding date, in the case of
      an
      Index Rate Loan, and not later than 11:00 a.m. (New York time) on the requested
      funding date, in the case of a LIBOR Loan. After receipt of such wire transfers
      (or, in the Agent's sole discretion, before receipt of such wire transfers),
      subject to the terms hereof, Agent shall make the requested Revolving Credit
      Advance to Borrowers. All payments by each Lender shall be made without setoff,
      counterclaim or deduction of any kind.

     

    (ii) On
      the 2nd
      Business Day of each calendar week or more frequently at Agent's election (each,
      a "Settlement
      Date"),
      Agent
      shall advise each Lender by telephone, or telecopy of the amount of such
      Lender's Pro Rata Share of principal, interest and Fees paid for the benefit
      of
      Lenders with respect to each applicable Loan. Provided that each Lender has
      funded all payments or Advances required to be made by it and has purchased
      all
      participations required to be purchased by it under this Agreement and the
      other
      Loan Documents as of such Settlement Date, Agent shall pay to each Lender such
      Lender's Pro Rata Share of principal, interest and Fees paid by Borrowers since
      the previous Settlement Date for the benefit of such Lender on the Loans held
      by
      it. To the extent that any Lender (a "Non-Funding
      Lender")
      has
      failed to fund all such payments and Advances or failed to fund the purchase
      of
      all such participations, Agent shall be entitled to set off the funding
      short-fall against that Non-Funding Lender's Pro Rata Share of all payments
      received from Borrowers. Such payments shall be made by wire transfer to such
      Lender's account (as specified by such Lender in Annex G
      or the
      applicable Assignment Agreement) not later than 2:00 p.m. (New York time) on
      the
      next Business Day following each Settlement Date.

     

    (b) Availability
      of Lender's Pro Rata Share.
      Agent
      may assume that each Lender will make its Pro Rata Share of each Revolving
      Credit Advance available to Agent on each funding date. If such Pro Rata Share
      is not, in fact, paid to Agent by such Lender when due, Agent will be entitled
      to recover such amount on demand from such Lender without setoff, counterclaim
      or deduction of any kind. If any Lender fails to pay the amount of its Pro
      Rata
      Share forthwith upon Agent's demand, Agent shall promptly notify Borrowers
      and
      Borrowers shall immediately repay such amount to Agent. Nothing in this
Section 9.9(b)
      or
      elsewhere in this Agreement or the other Loan Documents shall be deemed to
      require Agent to advance funds on behalf of any Lender or to relieve any Lender
      from its obligation to fulfill its Commitments hereunder or to prejudice any
      rights that Borrowers may have against any Lender as a result of any default
      by
      such Lender hereunder. To the extent that Agent advances funds to any Borrower
      on behalf of any Lender and is not reimbursed therefor on the same Business
      Day
      as such Advance is made, Agent shall be entitled to retain for its account
      all
      interest accrued on such Advance until reimbursed by the applicable
      Lender.

     

    
      
        
        

      

      
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    (c) Return
      of Payments.

     

    (i) If
      Agent
      pays an amount to a Lender under this Agreement in the belief or expectation
      that a related payment has been or will be received by Agent from Borrowers
      and
      such related payment is not received by Agent, then Agent will be entitled
      to
      recover such amount from such Lender on demand without setoff, counterclaim
      or
      deduction of any kind.

     

    (ii) If
      Agent
      determines at any time that any amount received by Agent under this Agreement
      must be returned to any Borrower or paid to any other Person pursuant to any
      insolvency law or otherwise, then, notwithstanding any other term or condition
      of this Agreement or any other Loan Document, Agent will not be required to
      distribute any portion thereof to any Lender. In addition, each Lender will
      repay to Agent on demand any portion of such amount that Agent has distributed
      to such Lender, together with interest at such rate, if any, as Agent is
      required to pay to any Borrower or such other Person, without setoff,
      counterclaim or deduction of any kind.

     

    (d) Non-Funding
      Lenders.
      The
      failure of any Non-Funding Lender to make any Revolving Credit Advance or any
      payment required by it hereunder on the date specified therefor shall not
      relieve any other Lender (each such other Lender, an "Other
      Lender")
      of its
      obligations to make such Advance or purchase such participation on such date,
      but neither any Other Lender nor Agent shall be responsible for the failure
      of
      any Non-Funding Lender to make an Advance, purchase a participation or make
      any
      other payment required hereunder. Notwithstanding anything set forth herein
      to
      the contrary, a Non-Funding Lender shall not have any voting or consent rights
      under or with respect to any Loan Document or constitute a "Lender" (or be
      included in the calculation of "Requisite Lenders" hereunder) for any voting
      or
      consent rights under or with respect to any Loan Document. At Borrowers'
      request, Agent or a Person reasonably acceptable to Agent shall have the right
      with Agent's consent and in Agent's sole discretion (but shall have no
      obligation) to purchase from any Non-Funding Lender, and each Non-Funding Lender
      agrees that it shall, at Agent's request, sell and assign to Agent or such
      Person, all of the Commitments of that Non-Funding Lender for an amount equal
      to
      the principal balance of all Loans held by such Non-Funding Lender and all
      accrued interest and fees with respect thereto through the date of sale, such
      purchase and sale to be consummated pursuant to an executed Assignment
      Agreement.

     

    (e) Dissemination
      of Information.
      Agent
      shall use reasonable efforts to provide Lenders with any notice of Default
      or
      Event of Default received by Agent from, or delivered by Agent to, any Credit
      Party, with notice of any Event of Default of which Agent has actually become
      aware and with notice of any action taken by Agent following any Event of
      Default; provided,
      that
      Agent shall not be liable to any Lender for any failure to do so, except to
      the
      extent that such failure is attributable to Agent's gross negligence or willful
      misconduct, as determined by a final court of competent jurisdiction. Lenders
      acknowledge that Borrowers are required to provide Financial Statements to
      Lenders in accordance with Annex E
      hereto
      and agree that Agent shall have no duty to provide the same to
      Lenders.

     

    
      
        
        

      

      
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    (f) Actions
      in Concert.
      Anything
      in this Agreement to the contrary notwithstanding, each Lender hereby agrees
      with each other Lender that no Lender shall take any action to protect or
      enforce its rights arising out of this Agreement or the Notes (including
      exercising any rights of setoff) without first obtaining the prior written
      consent of Agent and Requisite Lenders, it being the intent of Lenders that
      any
      such action to protect or enforce rights under this Agreement and the Notes
      shall be taken in concert and at the direction or with the consent of Agent
      or
      Requisite Lenders. 

     

    
      	
              10.

            	
              SUCCESSORS
                AND ASSIGNS

            

    

     

    10.1. Successors
      and Assigns.

     

    This
      Agreement and the other Loan Documents shall be binding on and shall inure
      to
      the benefit of each Credit Party, Agent, Lenders and their respective successors
      and assigns (including, in the case of any Credit Party, a debtor-in-possession
      on behalf of such Credit Party), except as otherwise provided herein or therein.
      No Credit Party may assign, transfer, hypothecate or otherwise convey its
      rights, benefits, obligations or duties hereunder or under any of the other
      Loan
      Documents without the prior express written consent of Agent and Lenders. Any
      such purported assignment, transfer, hypothecation or other conveyance by any
      Credit Party without the prior express written consent of Agent and Lenders
      shall be void. The terms and provisions of this Agreement are for the purpose
      of
      defining the relative rights and obligations of each Credit Party, Agent and
      Lenders with respect to the transactions contemplated hereby and no Person
      shall
      be a third party beneficiary of any of the terms and provisions of this
      Agreement or any of the other Loan Documents.

     

    
      
        
        

      

      
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              11.

            	
              MISCELLANEOUS

            

    

     

    11.1. Complete
      Agreement; Modification of Agreement.

     

    The
      Loan
      Documents constitute the complete agreement between the parties with respect
      to
      the subject matter thereof and may not be modified, altered or amended except
      as
      set forth in Section 11.2.
      Any
      letter of interest, commitment letter
      or fee
      letter (other than the GE Capital Fee Letter) if any, between any Credit Party
      and Agent or any Lender or any of their respective Affiliates, predating this
      Agreement and relating to a financing of substantially similar form, purpose
      or
      effect shall be superseded by this Agreement.

     

    
      
        
        

      

      
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    11.2. Amendments
      and Waivers.

     

    (a) Except
      for
      actions expressly permitted to be taken by Agent, no amendment, modification,
      termination or waiver of any provision of this Agreement or any other Loan
      Document, or any consent to any departure by any Credit Party therefrom, shall
      in any event be effective unless the same shall be in writing and signed by
      Agent, Borrowers, and by Requisite Lenders or all affected Lenders, as
      applicable. Except as set forth in clause (c)
      below,
      all such amendments, modifications, terminations or waivers requiring the
      consent of any Lenders shall require the written consent of Requisite Lenders.
      

     

    (b) [Intentionally
      Omitted.]

     

    (c) No
      amendment, modification, termination or waiver shall, unless in writing and
      signed by Agent and each Lender directly affected thereby: (i) increase the
      principal amount of any Lender's Commitment (which action shall be deemed to
      directly affect all Lenders; (ii) reduce the principal of, rate of interest
      on (other than a reduction from the Default Rate to the interest rate that
      would
      have been applicable to such Obligations in the event the Agent or Requisite
      Lenders had not elected to impose the Default Rate) or Fees payable with respect
      to any Loan or Letter of Credit Obligations of any affected Lender;
      (iii) extend any scheduled payment date (other than payment dates of
      mandatory prepayments under Section 1.3(b)(ii)-(iii))
      or final
      maturity date of the principal amount of any Loan of any affected Lender;
      (iv) waive, forgive, defer, extend or postpone any payment of interest or
      Fees as to any affected Lender; (v) release any Guaranty or, except as
      otherwise permitted herein or in the other Loan Documents, release, or permit
      any Credit Party to sell or otherwise dispose of, any Collateral with a value
      exceeding $5,000,000 in the aggregate (which action shall be deemed to directly
      affect all Lenders); (vi) change the percentage of the Commitments or of
      the aggregate unpaid principal amount of the Loans that shall be required for
      Lenders or any of them to take any action hereunder; and (vii) amend or
      waive this Section 11.2
      or the
      definition of the term "Requisite Lenders", insofar as such definition affects
      the substance of this Section 11.2.
      Furthermore, no amendment, modification, termination or waiver affecting the
      rights or duties of Agent or L/C Issuer under this Agreement or any other Loan
      Document shall be effective unless in writing and signed by Agent or L/C Issuer,
      as the case may be, in addition to Lenders required hereinabove to take such
      action. Each amendment, modification, termination or waiver shall be effective
      only in the specific instance and for the specific purpose for which it was
      given. No amendment, modification, termination or waiver shall be required
      for
      Agent to take additional Collateral pursuant to any Loan Document. No amendment,
      modification, termination or waiver of any provision of any Note shall be
      effective without the written concurrence of the holder of that Note. No notice
      to or demand on any Credit Party in any case shall entitle such Credit Party
      or
      any other Credit Party to any other or further notice or demand in similar
      or
      other circumstances. Any amendment, modification, termination, waiver or consent
      effected in accordance with this Section 11.2
      shall be
      binding upon each holder of the Notes at the time outstanding and each future
      holder of the Notes.

     

    (d) If,
      in
      connection with any proposed amendment, modification, waiver or termination
      (a
      "Proposed
      Change"):

     

    (i) requiring
      the consent of all affected Lenders, the consent of Requisite Lenders is
      obtained, but the consent of other Lenders whose consent is required is not
      obtained (any such Lender whose consent is not obtained as described in this
      clause (i)
      and in
clause (ii)
      below
      being referred to as a "Non-Consenting
      Lender"),
      or

     

    (ii) requiring
      the consent of Requisite Lenders, the consent of Lenders holding fifty-one
      percent (51%) or more of the aggregate Commitments is obtained, but the consent
      of Requisite Lenders is not obtained,

     

    then,
      so
      long as Agent is not a Non-Consenting Lender, at Borrowers' request, Agent
      or a
      Person reasonably acceptable to Agent shall have the right with Agent's consent
      and in Agent's sole discretion (but shall have no obligation) to purchase from
      such Non-Consenting Lenders, and such Non-Consenting Lenders agree that they
      shall, upon Agent's request, sell and assign to Agent or such Person, all of
      the
      Commitments of such Non-Consenting Lenders for an amount equal to the principal
      balance of all Loans held by the Non-Consenting Lenders and all accrued but
      unpaid interest and Fees with respect thereto through the date of sale, such
      purchase and sale to be consummated pursuant to an executed Assignment
      Agreement.

     

    (e) Upon
      payment in full in cash and performance of all of the Obligations (other than
      unasserted indemnification Obligations), termination of the Commitments and
      a
      release of all claims against Agent and Lenders, and so long as no suits,
      actions, proceedings or claims are pending or threatened against any Indemnified
      Person asserting any damages, losses or liabilities that are Indemnified
      Liabilities, Agent shall promptly deliver to Borrowers termination statements,
      mortgage releases and other documents necessary or appropriate to evidence
      the
      termination of the Liens securing payment of the Obligations.

     

    
      
        
        

      

      
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    11.3. Fees
      and
      Expenses.

     

    Borrowers
      shall reimburse Agent (and, with respect to clauses (c),
      (d)
      and
(e)
      below,
      all Lenders) for all fees, costs and expenses, including the reasonable fees,
      costs and expenses of counsel, consultants, auditors or other advisors
      (including environmental and management consultants and appraisers), incurred
      in
      connection with the negotiation and preparation of the Loan Documents, closing
      of the transactions contemplated hereunder and those the perfection of Liens
      on
      Collateral and incurred in connection with:

     

    (a) the
      forwarding to Borrowers or any other Person on behalf of Borrowers by Agent
      of
      the proceeds of any Loan (including a wire transfer fee of $25 per wire
      transfer);

     

    (b) any
      amendment, modification or waiver of, consent with respect to, or termination
      of, any of the Loan Documents or advice in connection with the syndication
      and
      administration of the Loans made pursuant hereto or its rights hereunder or
      thereunder;

     

    (c) any
      litigation, contest, dispute, suit, proceeding or action (whether instituted
      by
      Agent, any Lender, any Borrower or any other Person and whether as a party,
      witness or otherwise), other than any such litigation, contest, dispute, suit,
      proceeding or action instituted by Agent or any Lender against one or more
      other
      Lenders or the Agent only, in any way relating to the Collateral, any of the
      Loan Documents or any other agreement to be executed or delivered in connection
      herewith or therewith, including any litigation, contest, dispute, suit, case,
      proceeding or action, and any appeal or review thereof, in connection with
      a
      case commenced by or against any or all of the Borrowers or any other Person
      that may be obligated to Agent by virtue of the Loan Documents; including any
      such litigation, contest, dispute, suit, proceeding or action arising in
      connection with any work-out or restructuring of the Loans during the pendency
      of one or more Events of Default; provided,
      that in
      the case of reimbursement of counsel for Lenders other than Agent, such
      reimbursement shall be limited to one counsel for all such Lenders; provided,
      further,
      that no
      Person shall be entitled to reimbursement under this clause (c)
      in
      respect of any litigation, contest, dispute, suit, proceeding or action to
      the
      extent any of the foregoing results from such Person's bad faith, gross
      negligence or willful misconduct, as determined by a final court of competent
      jurisdiction;

     

    (d) any
      attempt to enforce any remedies of Agent against any or all of the Credit
      Parties or any other Person that may be obligated to Agent or any Lender by
      virtue of any of the Loan Documents, including any such attempt to enforce
      any
      such remedies in the course of any work-out or restructuring of the Loans during
      the pendency of one or more Events of Default; provided,
      that in
      the case of reimbursement of counsel for Lenders other than Agent, such
      reimbursement shall be limited to one counsel for all such Lenders;

     

    (e) any
      workout or restructuring of the Loans during the pendency of one or more Events
      of Default; and

     

    (f) efforts
      to
      verify, protect, evaluate, assess, appraise, collect, sell, liquidate or
      otherwise dispose of any of the Collateral;

     

    including,
      as to each of clauses (a)
      through
(f)
      above,
      all reasonable attorneys' and other professional and service providers' fees
      arising from such services and other advice, assistance or other representation,
      including those in connection with any appellate proceedings, and all expenses,
      costs, charges and other fees incurred by such counsel and others in connection
      with or relating to any of the events or actions described in this Section 11.3,
      all of
      which shall be payable, on demand, by Borrowers to Agent; provided, that,
      without limitation on Borrowers' obligation to pay the same hereunder, Agent
      shall give Borrowers prompt written notice if the fees and expenses incurred
      on
      or prior to the Closing Date in connection with the negotiation and preparation
      of this Agreement and related Loan Documents and closing of the transactions
      contemplated hereunder are expected to exceed $50,000. Without limiting the
      generality of the foregoing, such expenses, costs, charges and fees may include:
      reasonable fees, costs and expenses of accountants, environmental advisors,
      appraisers, investment bankers, management and other consultants and paralegals;
      court costs and expenses; photocopying and duplication expenses; court reporter
      fees, costs and expenses; long distance telephone charges; air express charges;
      telegram or telecopy charges; secretarial overtime charges; and reasonable
      expenses for travel, lodging and food paid or incurred in connection with the
      performance of such legal or other advisory services. 

     

    
      
        
        

      

      
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    11.4. No
      Waiver.

     

    Agent's
      or
      any Lender's failure, at any time or times, to require strict performance by
      the
      Credit Parties of any provision of this Agreement or any other Loan Document
      shall not waive, affect or diminish any right of Agent or such Lender thereafter
      to demand strict compliance and performance herewith or therewith. Any
      suspension or waiver of an Event of Default shall not suspend, waive or affect
      any other Event of Default whether the same is prior or subsequent thereto
      and
      whether the same or of a different type. Subject to the provisions of
Section 11.2,
      none of
      the undertakings, agreements, warranties, covenants and representations of
      any
      Credit Party contained in this Agreement or any of the other Loan Documents
      and
      no Default or Event of Default by any Credit Party shall be deemed to have
      been
      suspended or waived by Agent or any Lender, unless such waiver or suspension
      is
      by an instrument in writing signed by an officer of or other authorized employee
      of Agent and the applicable required Lenders, and directed to Borrowers
      specifying such suspension or waiver.

     

    11.5. Remedies.

     

    Agent's
      and Lenders' rights and remedies under this Agreement shall be cumulative and
      nonexclusive of any other rights and remedies that Agent or any Lender may
      have
      under any other agreement, including the other Loan Documents, by operation
      of
      law or otherwise. Recourse to the Collateral shall not be required.

     

    11.6. Severability.

     

    Wherever
      possible, each provision of this Agreement and the other Loan Documents shall
      be
      interpreted in such a manner as to be effective and valid under applicable
      law,
      but if any provision of this Agreement or any other Loan Document shall be
      prohibited by or invalid under applicable law, such provision shall be
      ineffective only to the extent of such prohibition or invalidity without
      invalidating the remainder of such provision or the remaining provisions of
      this
      Agreement or such other Loan Document.

     

    11.7. Conflict
      of Terms.

     

    
      
        
        

      

      
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    Except
      as
      otherwise provided in this Agreement or any of the other Loan Documents by
      specific reference to the applicable provisions of this Agreement, if any
      provision contained in this Agreement conflicts with any provision in any of
      the
      other Loan Documents, the provision contained in this Agreement shall govern
      and
      control.

     

    11.8. Confidentiality.

     

    Agent
      and
      each Lender agree to use commercially reasonable efforts (equivalent to the
      efforts Agent or such Lender applies to maintaining the confidentiality of
      its
      own confidential information) to maintain as confidential all confidential
      information provided to them by the Credit Parties and designated as
      confidential for a period of two years following receipt thereof, except that
      Agent and any Lender may disclose such information (a) to Persons employed
      or engaged by Agent or such Lender; (b) to any bona fide assignee or
      participant or potential assignee or participant that has agreed to comply
      with
      the covenants contained in this Section 9.1(e)
      and
Section 11.8
      (and any
      such bona fide assignee or participant or potential assignee or participant
      may
      disclose such information to Persons employed or engaged by them as described
      in
clause (a)
      above);
      (c) as required or requested by any Governmental Authority or
      reasonably believed
      by Agent or such Lender to be compelled by any court decree, subpoena or legal
      or administrative order or process; (d) as, on the advice of Agent's or
      such Lender's counsel, is required by law; (e) in connection with the
      exercise of any right or remedy under the Loan Documents or in connection with
      any Litigation to which Agent or such Lender is a party; or (f) that ceases
      to be confidential through no fault of Agent or any Lender. 

     

    11.9. GOVERNING
      LAW.

     

    EXCEPT
      AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE LOAN DOCUMENTS, IN ALL RESPECTS,
      INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THE LOAN
      DOCUMENTS AND THE OBLIGATIONS SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED
      IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO
      CONTRACTS MADE AND PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED
      STATES OF AMERICA. EACH CREDIT PARTY HEREBY CONSENTS AND AGREES THAT THE STATE
      OR FEDERAL COURTS LOCATED IN NEW YORK COUNTY, CITY OF NEW YORK, NEW YORK SHALL
      HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN
      THE CREDIT PARTIES, AGENT AND LENDERS PERTAINING TO THIS AGREEMENT OR ANY OF
      THE
      OTHER LOAN DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR RELATING TO THIS
      AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS; PROVIDED,
      THAT AGENT, LENDERS AND THE CREDIT PARTIES ACKNOWLEDGE THAT ANY APPEALS FROM
      THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF NEW YORK COUNTY;
      PROVIDED FURTHER,
      THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE AGENT
      FROM
      BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO REALIZE
      ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE
      A
      JUDGMENT OR OTHER COURT ORDER IN FAVOR OF AGENT. EACH CREDIT PARTY EXPRESSLY
      SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT
      COMMENCED IN ANY SUCH COURT, AND EACH CREDIT PARTY HEREBY WAIVES ANY OBJECTION
      THAT SUCH CREDIT PARTY MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION,
      IMPROPER VENUE OR FORUM NON CONVENIENS
      AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS
      DEEMED APPROPRIATE BY SUCH COURT. EACH CREDIT PARTY HEREBY WAIVES PERSONAL
      SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION
      OR
      SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINTS AND OTHER PROCESS
      MAY
      BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH CREDIT PARTY AT THE
      ADDRESS SET FORTH IN ANNEX
      H
      OF THIS AGREEMENT AND THAT
      SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH CREDIT
      PARTY'S ACTUAL RECEIPT THEREOF OR 3 DAYS AFTER DEPOSIT IN THE UNITED STATES
      MAILS, PROPER POSTAGE PREPAID.

     

    
      
        
        

      

      
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    11.10. Notices.

     

    (a) Addresses.
      All
      notices, demands, requests, directions and other communications required or
      expressly authorized to be made by this Agreement shall, whether or not
      specified to be in writing but unless otherwise expressly specified to be given
      by any other means, be given in writing and (i) addressed to (A) the
      party
      to be notified and sent to the address or facsimile number indicated in Annex
      H,
or
      (B)
      otherwise to the party to be notified at its address specified on the signature
      page of any applicable Assignment Agreement, (ii) posted to
      Intralinks®
      (to
      the
      extent such system is available and set up by or at the direction of the Agent
      prior to posting) in an appropriate location by uploading such notice, demand,
      request, direction or other communication to www.intralinks.com, faxing it
      to
      866-545-6600 with an appropriate bar-coded fax coversheet or using such other
      means of posting to Intralinks®
      as may be
      available and reasonably acceptable to the Agent prior to such posting, (iii)
      posted to any other E-System set up by or at the direction of Agent in an
      appropriate location or (iv) addressed to such other address as shall be
      notified in writing (A) in the case of Borrowers and Agent, to the other parties
      hereto and (B) in the case of all other parties, to Borrowers and Agent.
      Transmission by electronic mail (including E-Fax, even if transmitted to the
      fax
      numbers set forth in clause
      (i)
      above)
      shall not be sufficient or effective to transmit any such notice under this
      clause
      (a)
      unless
      such transmission is an available means to post to any E-System.

     

    (b) Effectiveness.
      All
      communications described in clause (a) above and all other notices, demands,
      requests and other communications made in connection with this Agreement shall
      be effective and be deemed to have been received (i) if delivered by hand,
      upon
      personal delivery, (ii) if delivered by overnight courier service, one Business
      Day after delivery to such courier service, (iii) if delivered by mail, when
      deposited in the mails, (iv) if delivered by facsimile (other than to post
      to an
      E-System pursuant to clause (a)(ii) or (a)(iii) above), upon sender’s receipt of
      confirmation of proper transmission, and (v) if delivered by posting to any
      E-System, on the later of the date of such posting in an appropriate location
      and the date access to such posting is given to the recipient thereof in
      accordance with the standard procedures applicable to such E-System. Failure
      or
      delay in delivering copies of any notice, demand, request, consent, approval,
      declaration or other communication to any Person (other than Borrowers or Agent)
      designated in Annex H to receive copies shall in no way adversely affect the
      effectiveness of such notice, demand, request, consent, approval, declaration
      or
      other communication. The giving of any notice required hereunder may be waived
      in writing by the party entitled to receive such notice.

     

    
      
        
        

      

      
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    11.11. Section
      Titles.

     

    The
      Section titles and Table of Contents contained in this Agreement are and shall
      be without substantive meaning or content of any kind whatsoever and are not
      a
      part of the agreement between the parties hereto.

     

    11.12. Counterparts.

     

    This
      Agreement may be executed in any number of separate counterparts, each of which
      shall collectively and separately constitute one agreement.

     

    11.13. WAIVER
      OF
      JURY TRIAL.

     

    BECAUSE
      DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST
      QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE
      PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION
      RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING
      SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS
      OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO
      WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT
      TO
      RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG
      AGENT, LENDERS AND ANY CREDIT PARTY ARISING OUT OF, CONNECTED WITH, RELATED
      TO,
      OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH,
      THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS RELATED
      THERETO.

     

    11.14. Press
      Releases and Related Matters.

     

    Each
      Credit Party executing this Agreement agrees that neither it nor its Affiliates
      will in the future issue any press releases or other public disclosure using
      the
      name of GE Capital or its affiliates or referring to this Agreement or the
      other
      Loan Documents without at least 2 Business Days' prior notice to GE Capital
      and
      without the prior written consent of GE Capital unless (and only to the extent
      that) such Credit Party or Affiliate is required to do so under law and then,
      in
      any event, such Credit Party or Affiliate will consult with GE Capital before
      issuing such press release or other public disclosure. Each Credit Party
      consents to the publication by Agent or any Lender of a tombstone or similar
      advertising material relating to the financing transactions contemplated by
      this
      Agreement. Agent or such Lender shall provide a draft of any such tombstone
      or
      similar advertising material to Borrowers for review and comment prior to the
      publication thereof. Agent reserves the right to provide to industry trade
      organizations information necessary and customary for inclusion in league table
      measurements.

     

    
      
        
        

      

      
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    11.15. Reinstatement.

     

    This
      Agreement shall remain in full force and effect and continue to be effective
      should any petition be filed by or against any Borrower for liquidation or
      reorganization, should any Borrower become insolvent or make an assignment
      for
      the benefit of any creditor or creditors or should a receiver or trustee be
      appointed for all or any significant part of any Borrower's assets, and shall
      continue to be effective or to be reinstated, as the case may be, if at any
      time
      payment and performance of the Obligations, or any part thereof, is, pursuant
      to
      applicable law, rescinded or reduced in amount, or must otherwise be restored
      or
      returned by any obligee of the Obligations, whether as a "voidable preference,"
      "fraudulent conveyance," or otherwise, all as though such payment or performance
      had not been made. In the event that any payment, or any part thereof, is
      rescinded, reduced, restored or returned, the Obligations shall be reinstated
      and deemed reduced only by such amount paid and not so rescinded, reduced,
      restored or returned.

     

    11.16. Advice
      of
      Counsel.

     

    Each
      of
      the parties represents to each other party hereto that it has discussed this
      Agreement and, specifically, the provisions of Sections 11.9
      and
11.13,
      with its
      counsel.

     

    11.17. No
      Strict
      Construction.

     

    The
      parties hereto have participated jointly in the negotiation and drafting of
      this
      Agreement. In the event an ambiguity or question of intent or interpretation
      arises, this Agreement shall be construed as if drafted jointly by the parties
      hereto and no presumption or burden of proof shall arise favoring or disfavoring
      any party by virtue of the authorship of any provisions of this
      Agreement.

     

    11.18. USA
      PATRIOT Act Notice. 

     

    Each
      Lender that is subject to the Patriot Act (as hereinafter defined) and Agent
      (for itself and not on behalf of any Lender) hereby notifies each Borrower
      that
      pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
      (signed into law October 26, 2001)) (the “Patriot
      Act”),
      it is
      required to obtain, verify and record information that identifies each Borrower,
      which information includes the name and address of each Borrower and other
      information that will allow such Lender or Agent, as applicable, to identify
      such Borrower in accordance with the Patriot Act.

    

    
      
        
        

      

      
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    11.19. Effect
      of
      Amendment and Restatement on Existing Credit Agreement. 

     

    (a) On
      the
      Closing Date, the Existing Credit Agreement is amended and restated in its
      entirety by this Agreement. The parties hereto acknowledge and agree that (i)
      this Agreement, the Notes and the other Loan Documents executed and delivered
      in
      connection herewith do not constitute a novation, payment and reborrowing,
      or
      termination of the "Obligations"
      (as
      defined in the Existing Credit Agreement) under the Existing Credit Agreement
      as
      in effect prior to the Closing Date; (ii) such "Obligations" are in all respects
      continuing (as amended and restated hereby) with only the terms thereof being
      modified as provided in this Agreement; (iii) the Liens and security interests
      as granted under the Loan Documents (whether delivered hereunder or in
      connection with the Existing Credit Agreement) securing payment of such
      "Obligations" are in all respects continuing and in full force and effect and
      secure the payment of the Obligations (as defined in this Agreement); and (iv)
      upon the effectiveness of this Agreement all loans outstanding under the
      Existing Credit Agreement immediately before the effectiveness of this Agreement
      will be Loans hereunder and all outstanding letters of credit under the Existing
      Credit Agreement will be Letters of Credit hereunder, in each case on the terms
      and conditions set forth in this Agreement.

     

    (b) Notwithstanding
      the modification effected by this Agreement of the representations, warranties
      and covenants of the Borrowers contained in the Existing Credit Agreement,
      the
      Borrowers acknowledge and agree that any choses
      in action
      or other
      rights created in favor of the Agent, the “Agent” under the Existing Credit
      Agreement, any lender under the Existing Credit Agreement, any Lender and each
      of their respective successors and assigns arising out of the representations,
      warranties and covenants of the Borrowers contained in or delivered (including
      representations, warranties and covenants delivered in connection with the
      making of Loans or other extensions of credit thereunder) in connection with
      the
      Existing Credit Agreement, shall survive the execution and delivery of this
      Agreement; provided
      that it
      is understood and agreed that the Borrowers' monetary obligations under the
      Existing Credit Agreement in respect of the loans thereunder are evidenced
      by
      this Agreement.

     

    (c) All
      indemnification obligations of the Borrowers pursuant to the Existing Credit
      Agreement shall survive the amendment and restatement of the Existing Credit
      Agreement pursuant to this Agreement.

     

    (d) Except
      as
      expressly amended and restated hereby and by the Notes, the Existing Credit
      Agreement and the other Loan Documents are and shall continue in full force
      and
      effect. On and after the Closing Date, (a) each reference in the Loan Documents
      to the "Credit Agreement," "thereunder," "thereof" or similar words referring
      to
      the Credit Agreement shall mean and be a reference to this Agreement (as further
      amended, restated, modified or otherwise supplemented from time to time) and
      (b)
      each reference in the Loan Documents to a "Note" or amendment or restatement
      thereof shall be a reference to a Note hereunder, and (c) each reference to
      "Agent", "L/C Issuer" or "Lender" in a Loan Document shall be a reference to
      the
      Agent, L/C Issuer or Lender hereunder as the case may be.

     

    
      
        
        

      

      
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              12.

            	
              CROSS-GUARANTY

            

    

     

    12.1. Cross-Guaranty.

     

    Each
      Borrower hereby agrees that such Borrower is jointly and severally liable for,
      and hereby absolutely and unconditionally guarantees to Agent and Lenders and
      their respective successors and assigns, the full and prompt payment (whether
      at
      stated maturity, by acceleration or otherwise) and performance of, all
      Obligations owed or hereafter owing to Agent and Lenders by each other Borrower.
      Each Borrower agrees that its guaranty obligation hereunder is a continuing
      guaranty of payment and performance and not of collection, that its obligations
      under this Section 12
      shall not
      be discharged until payment and performance, in full, of the Obligations has
      occurred, and that its obligations under this Section 12
      shall be
      absolute and unconditional, irrespective of, and unaffected by,

     

    (a) the
      genuineness, validity, regularity, enforceability or any future amendment of,
      or
      change in, this Agreement, any other Loan Document or any other agreement,
      document or instrument to which any Borrower is or may become a
      party;

     

    (b) the
      absence of any action to enforce this Agreement (including this Section 12)
      or any
      other Loan Document or the waiver or consent by Agent and Lenders with respect
      to any of the provisions thereof;

     

    (c) the
      existence, value or condition of, or failure to perfect its Lien against, any
      security for the Obligations or any action, or the absence of any action, by
      Agent and Lenders in respect thereof (including the release of any such
      security);

     

    (d) the
      insolvency of any Credit Party; or

     

    (e) any
      other
      action or circumstances that might otherwise constitute a legal or equitable
      discharge or defense of a surety or guarantor.

     

    Each
      Borrower shall be regarded, and shall be in the same position, as principal
      debtor with respect to the Obligations guaranteed hereunder.

     

    
      
        
        

      

      
        62

        
          

        

      

      
        
        

      

    

    12.2. Waivers
      by
      Borrowers.

     

    Each
      Borrower expressly waives all rights it may have now or in the future under
      any
      statute, or at common law, or at law or in equity, or otherwise, to compel
      Agent
      or Lenders to marshall assets or to proceed in respect of the Obligations
      guaranteed hereunder against any other Credit Party, any other party or against
      any security for the payment and performance of the Obligations before
      proceeding against, or as a condition to proceeding against, such Borrower.
      It
      is agreed among each Borrower, Agent and Lenders that the foregoing waivers
      are
      of the essence of
      the
      transaction contemplated by this Agreement and the other Loan Documents and
      that, but for the provisions of this Section 12
      and such
      waivers, Agent and Lenders would decline to enter into this
      Agreement.

     

    12.3. Benefit
      of
      Guaranty.

     

    Each
      Borrower agrees that the provisions of this Section 12
      are for
      the benefit of Agent and Lenders and their respective successors, transferees,
      endorsees and assigns, and nothing herein contained shall impair, as between
      any
      other Borrower and Agent or Lenders, the obligations of such other Borrower
      under the Loan Documents.

     

    12.4. Subordination
      of Subrogation, Etc.

     

    Notwithstanding
      anything to the contrary in this Agreement or in any other Loan Document, and
      except as set forth in Section 12.7,
      each
      Borrower hereby expressly and irrevocably subordinates to payment of the
      Obligations any and all rights at law or in equity to subrogation,
      reimbursement, exoneration, contribution, indemnification or set off and any
      and
      all defenses available to a surety, guarantor or accommodation co-obligor until
      the Obligations are indefeasibly paid in full in cash. Each Borrower
      acknowledges and agrees that this subordination is intended to benefit Agent
      and
      Lenders and shall not limit or otherwise affect such Borrower's liability
      hereunder or the enforceability of this Section 12,
      and that
      Agent, Lenders and their respective successors and assigns are intended third
      party beneficiaries of the waivers and agreements set forth in this Section 12.4.

     

    12.5. Election
      of Remedies.

     

    If
      Agent
      or any Lender may, under applicable law, proceed to realize its benefits under
      any of the Loan Documents giving Agent or such Lender a Lien upon any
      Collateral, whether owned by any Borrower or by any other Person, either by
      judicial foreclosure or by non-judicial sale or enforcement, Agent or any Lender
      may, at its sole option, determine which of its remedies or rights it may pursue
      without affecting any of its rights and remedies under this Section 12.
      If, in
      the exercise of any of its rights and remedies, Agent or any Lender shall
      forfeit any of its rights or remedies, including its right to enter a deficiency
      judgment against any Borrower or any other Person, whether because of any
      applicable laws pertaining to "election of remedies" or the like, each Borrower
      hereby consents to such action by Agent or such Lender and waives any claim
      based upon such action, even if such action by Agent or such Lender shall result
      in a full or partial loss of any rights of subrogation that each Borrower might
      otherwise have had but for such action by Agent or such Lender. Any election
      of
      remedies that results in the denial or impairment of the right of Agent or
      any
      Lender to seek a deficiency judgment against any Borrower shall not impair
      any
      other Borrower's obligation to pay the full amount of the Obligations. In the
      event Agent or any Lender shall bid at any foreclosure or trustee's sale or
      at
      any private sale permitted by law or the Loan Documents, Agent or such Lender
      may bid all or less than the amount of the Obligations and the amount of such
      bid need not be paid by Agent or such Lender but shall be credited against
      the
      Obligations. The amount of the successful bid at any such sale, whether Agent,
      Lender or any other party is the successful bidder, shall be conclusively deemed
      to be the fair market value of the Collateral and the difference between such
      bid amount and the remaining balance of the Obligations shall be
      conclusively deemed to be the amount of the Obligations guaranteed under this
      Section 12,
      notwithstanding that any present or future law or court decision or ruling
      may
      have the effect of reducing the amount of any deficiency claim to which Agent
      or
      any Lender might otherwise be entitled but for such bidding at any such
      sale.

     

    
      
        
        

      

      
        63

        
          

        

      

      
        
        

      

    

    12.6. Limitation.

     

    Notwithstanding
      any provision herein contained to the contrary, each Borrower's liability under
      this Section 12
      (which
      liability is in any event in addition to amounts for which such Borrower is
      primarily liable under Section 1)
      shall be
      limited to an amount not to exceed as of any date of determination the greater
      of:

     

    (a) the
      net
      amount of all Loans advanced to Borrowers under this Agreement and then
      re-loaned or otherwise transferred to, or for the benefit of, Borrowers;
      and

     

    (b) the
      amount
      that could be claimed by Agent and Lenders from such Borrower under this
Section 12
      without
      rendering such claim voidable or avoidable under Section 548 of Chapter 11
      of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer
      Act, Uniform Fraudulent Conveyance Act or similar statute or common law after
      taking into account, among other things, such Borrower's right of contribution
      and indemnification from each other Borrower under Section 12.7.

     

    12.7. Contribution
      with Respect to Guaranty Obligations.

     

    (a) To
      the
      extent that any Borrower shall make a payment under this Section 12
      of all or
      any of the Obligations (other than Loans made to that Borrower for which it
      is
      primarily liable) (a "Guarantor
      Payment")
      that,
      taking into account all other Guarantor Payments then previously or concurrently
      made by any other Borrower, exceeds the amount that such Borrower would
      otherwise have paid if each Borrower had paid the aggregate Obligations
      satisfied by such Guarantor Payment in the same proportion that such Borrower's
      "Allocable Amount" (as defined below) (as determined immediately prior to such
      Guarantor Payment) bore to the aggregate Allocable Amounts of each of the
      Borrowers as determined immediately prior to the making of such Guarantor
      Payment, then, following indefeasible payment in full in cash of the Obligations
      and termination of the Commitments, such Borrower shall be entitled to receive
      contribution and indemnification payments from, and be reimbursed by, each
      other
      Borrower for the amount of such excess, pro rata based upon their respective
      Allocable Amounts in effect immediately prior to such Guarantor
      Payment.

     

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

    (b) As
      of any
      date of determination, the "Allocable Amount" of any Borrower shall be equal
      to
      the maximum amount of the claim that could then be recovered from such Borrower
      under this Section 12
      without
      rendering such claim voidable or avoidable under Section 548 of Chapter 11
      of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer
      Act, Uniform Fraudulent Conveyance Act or similar statute or common
      law.

     

    (c) This
      Section 12.7
      is
      intended only to define the relative rights of Borrowers and nothing set forth
      in this Section 12.7
      is
      intended to or shall impair the obligations of Borrowers, jointly and severally,
      to pay any amounts as and when the same shall become due and payable in
      accordance with the terms of this Agreement, including Section 12.1.
      Nothing
      contained in this Section 12.7
      shall
      limit the liability of any Borrower to pay the Loans made directly or indirectly
      to that Borrower and accrued interest, Fees and expenses with respect thereto
      for which such Borrower shall be primarily liable.

     

    (d) The
      parties hereto acknowledge that the rights of contribution and indemnification
      hereunder shall constitute assets of Borrower to which such contribution and
      indemnification is owing.

     

    (e) The
      rights
      of the indemnifying Borrowers against other Credit Parties under this
Section 12.7
      shall be
      exercisable upon the full and indefeasible payment of the Obligations and the
      termination of the Commitments.

     

    12.8. Liability
      Cumulative.

     

    The
      liability of Borrowers under this Section 12
      is in
      addition to and shall be cumulative with all liabilities of each Borrower to
      Agent and Lenders under this Agreement and the other Loan Documents to which
      such Borrower is a party or in respect of any Obligations or obligation of
      the
      other Borrower, without any limitation as to amount, unless the instrument
      or
      agreement evidencing or creating such other liability specifically provides
      to
      the contrary.

     

    [Remainder
      of page intentionally left blank.]

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

    IN
      WITNESS
      WHEREOF, this Agreement has been duly executed as of the date first written
      above.

     

    

    
      	
              BORROWERS:

               

            
	
              ODYSSEY
                HEALTHCARE OPERATING A, LP

               

            
	
              By:

              Its:

               

            	
              Odyssey
                HealthCare GP, LLC

              General
                Partner

               

            
	 	
              By:
                /s/
                R. Dirk Allison

              Name: R.
                Dirk Allison

              Title: Senior
                Vice President and Chief Financial
                Officer

            

    

    

    
      	
              ODYSSEY
                HEALTHCARE OPERATING B, LP

               

            
	
              By:

              Its:

               

            	
              Odyssey
                HealthCare GP, LLC

              General
                Partner

               

            
	 	
              By:
                /s/
                R. Dirk Allison

              Name: R.
                Dirk Allison

              Title: Senior
                Vice President and Chief Financial
                Officer

            

    

    

    
      	
              HOSPICE
                OF THE PALM COAST, INC.

               

            
	 	
              By:
                /s/
                R. Dirk Allison

              Name: R.
                Dirk Allison

              Title: Senior
                Vice President and Chief Financial
                Officer

            

    

     

    
      	
              AGENT
                AND LENDERS:

               

              GENERAL
                ELECTRIC CAPITAL CORPORATION,
                as
                Agent and Lender

               

              By:/s/
                John Dale

              Duly
                Authorized Signatory

            

    

    

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

    The
      following Persons are signatories to this Agreement in their capacity as Credit
      Parties and not as Borrowers.

    

    
      	
              ODYSSEY
                HEALTHCARE, INC.

               

              By
                /s/
                R. Dirk Allison

              Its:
                Senior Vice President and Chief Financial Officer

               

              ODYSSEY
                HEALTHCARE HOLDING COMPANY

               

              By
                /s/
                R. Dirk Allison

              Its:
                Senior Vice President and Chief Financial Officer

               

              ODYSSEY
                HEALTHCARE GP, LLC

               

              By
                /s/
                R. Dirk Allison

              Its:
                Senior Vice President and Chief Financial Officer

               

              ODYSSEY
                HEALTHCARE LP, LLC

               

              By
                /s/
                Jean M. Hunn

              Its:
                Manager

               

            
	
              ODYSSEY
                HEALTHCARE MANAGEMENT, LP

               

            
	
              By:

              Its:

               

            	
              Odyssey
                HealthCare GP, LLC

              General
                Partner

               

            
	 	
              By
                /s/
                R. Dirk Allison 

              Its:
                Senior Vice President and Chief Financial Officer

               

            

    

    

    
      
        
        

      

      
        67

        
          

        

      

      
        
        

      

    

    

    ANNEX
      A (Recitals)

     

    to

     

    AMENDED
      AND RESTATED CREDIT AGREEMENT

     

    DEFINITIONS

     

    

    Capitalized
      terms used in the Loan Documents shall have (unless otherwise provided elsewhere
      in the Loan Documents) the following respective meanings, and all references
      to
      Sections, Exhibits, Schedules or Annexes in the following definitions shall
      refer to Sections, Exhibits, Schedules or Annexes of or to the
      Agreement:

     

    "Account
      Debtor"
      means
      any Person who may become obligated to any Credit Party under, with respect
      to,
      or on account of, an Account, Chattel Paper or General Intangibles (including
      a
      payment intangible).

     

    "Accounting
      Changes"
      has the
      meaning ascribed thereto in Annex
      F.

     

    "Accounts"
      means
      all "accounts," as such term is defined in the Code, now owned or hereafter
      acquired by any Credit Party, including (a) all accounts receivable, other
      receivables, book debts and other forms of obligations (other than forms of
      obligations evidenced by Chattel Paper or Instruments), (including any such
      obligations that may be characterized as an account or contract right under
      the
      Code), (b) all of each Credit Party's rights in, to and under all purchase
      orders or receipts for goods or services, (c) all of each Credit Party's
      rights to any goods represented by any of the foregoing (including unpaid
      sellers' rights of rescission, replevin, reclamation and stoppage in transit
      and
      rights to returned, reclaimed or repossessed goods), (d) all rights to
      payment due to any Credit Party for property sold, leased, licensed, assigned
      or
      otherwise disposed of, for a policy of insurance issued or to be issued, for
      a
      secondary obligation incurred or to be incurred, for energy provided or to
      be
      provided, for the use or hire of a vessel under a charter or other contract,
      arising out of the use of a credit card or charge card, or for services rendered
      or to be rendered by such Credit Party or in connection with any other
      transaction (whether or not yet earned by performance on the part of such Credit
      Party), (e) all health care insurance receivables and (f) all
      collateral security and guaranties of any kind, given by any Account Debtor
      or
      any other Person with respect to any of the foregoing.

     

    "Advance"
      means
      any Revolving Credit Advance.

     

    "Affected
      Lender"
      has the
      meaning ascribed to it in Section
      1.16(d).

     

    "Affiliate"
      means,
      with respect to any Person, (a) each Person that, directly or indirectly,
      owns or controls, whether beneficially, or as a trustee, guardian or other
      fiduciary, ten percent (10%) or more of the Stock having ordinary voting power
      in the election of directors of such Person, (b) each Person that controls,
      is controlled by or is under common control with such Person, (c) each of
      such Person's officers, directors, joint venturers and partners and (d) in
      the case of Borrowers, the immediate family members, spouses and lineal
      descendants of individuals who are Affiliates of any Borrower. For the purposes
      of this definition, "control"
      of a
      Person shall mean the possession, directly or indirectly, of the power to direct
      or cause the direction of its management or policies, whether through the
      ownership of voting securities, by contract or otherwise; provided,
      however,
      that the
      term "Affiliate"
      shall
      specifically exclude Agent and each Lender.

     

    
      
        
        

      

      
        Annex
          A -
          1

        
          

        

      

      
        
        

      

    

    "Agent"
      means GE
      Capital in its capacity as Agent for Lenders or its successor appointed pursuant
      to Section 9.7.

     

    "Agreement"
      means
      the Amended and Restated Credit Agreement dated as of the date hereof by and
      among Borrowers, the other Credit Parties party thereto, GE Capital, as Agent
      and Lender and the other Lenders from time to time party thereto, as the same
      may be amended, supplemented, restated or otherwise modified from time to
      time.

     

    "Appendices"
      has the
      meaning ascribed to it in the recitals to the Agreement.

     

    "Applicable
      Margins"
      means
      collectively the Applicable Revolver Index Margin and the Applicable Revolver
      LIBOR Margin.

     

    "Applicable
      Revolver Index Margin"
      means
      the per annum interest rate margin from time to time in effect and payable
      in
      addition to the Index Rate applicable to the Revolving Loan, as determined
      by
      reference to Section 1.5(a).

     

    "Applicable
      Revolver LIBOR Margin"
      means
      the per annum interest rate from time to time in effect and payable in addition
      to the LIBOR Rate applicable to the Revolving Loan, as determined by reference
      to Section 1.5(a).

     

    "Assignment
      Agreement"
      has the
      meaning ascribed to it in Section 9.1(a).

     

    "Bankruptcy
      Code"
      means
      the provisions of Title 11 of the United States Code, 11 U.S.C. §§101
et seq.

     

    "Blocked
      Accounts"
      has the
      meaning ascribed to it in Annex
      C.

     

    "Borrowers"
      and
      "Borrower"
      have the
      respective meanings ascribed thereto in the preamble to the
      Agreement.

     

    "Business
      Associate Agreement"
      means
      that certain Business Associate Agreement duly executed by and between Holdings
      and Agent and dated as of or prior to the date of this Agreement, together
      with
      all exhibits and schedules thereto, as the same may be amended, modified,
      restated or supplemented from time to time in accordance with the terms
      thereof.

     

    
      
        
        

      

      
        Annex
          A -
          2

        
          

        

      

      
        
        

      

    

    "Business
      Day"
      means
      any day that is not a Saturday, a Sunday or a day on which banks are required
      or
      permitted to be closed in the States of Illinois and/or New York and in
      reference to LIBOR Loans shall mean any such day that is also a LIBOR Business
      Day.

     

    "Capital
      Expenditures"
      means,
      with respect to any Person, all expenditures (by the expenditure of cash or
      the
      incurrence of Indebtedness) by such Person during any measuring period for
      any
      fixed assets or improvements or for replacements, substitutions or additions
      thereto that have a useful life of more than one year and that are required
      to
      be capitalized under GAAP, excluding in each instance, any such expenditures
      made pursuant to a Permitted Acquisition.

     

    "Capital
      Lease"
      means,
      with respect to any Person, any lease of any property (whether real, personal
      or
      mixed) by such Person as lessee that, in accordance with GAAP, would be required
      to be classified and accounted for as a capital lease on a balance sheet of
      such
      Person.

     

    "Capital
      Lease Obligation"
      means,
      with respect to any Capital Lease of any Person, the amount of the obligation
      of
      the lessee thereunder that, in accordance with GAAP, would appear on a balance
      sheet of such lessee in respect of such Capital Lease.

     

    "Cash
      Collateral Account"
      has the
      meaning ascribed to it Annex
      B.

     

    "Cash
      Equivalents"
      has the
      meaning ascribed to it in Annex
      B.

     

    "Cash
      Management Systems"
      has the
      meaning ascribed to it in Section 1.8.

     

    "Certificate
      of Exemption"
      has the
      meaning ascribed to it in Section
      1.15(c).

     

    "Change
      of Control"
      means
      any of the following: (a) any person or group of persons (within the
      meaning of the Securities Exchange Act of 1934) shall have acquired beneficial
      ownership (within the meaning of Rule 13d-3 promulgated by the Securities and
      Exchange Commission under the Securities Exchange Act of 1934) of thirty-five
      percent (35%) or more of the issued and outstanding shares of capital Stock
      of
      Holdings having the right to vote for the election of directors of Holdings
      under ordinary circumstances; (b) during any period of twelve consecutive
      calendar months, individuals who at the beginning of such period constituted
      the
      board of directors of Holdings (together with any new directors whose election
      by the board of directors of Holdings or whose nomination for election by the
      Stockholders of Holdings was approved by a vote of at least two-thirds of the
      directors then still in office who either were directors at the beginning of
      such period or whose election or nomination for election was previously so
      approved) cease for any reason other than death or disability to constitute
      a
      majority of the directors then in office; (c) Holdings ceases to own and
      control all of the economic and voting rights associated with all of the
      outstanding capital Stock of any of its direct Subsidiaries; (d) Parent
      ceases to own and control all of the economic and voting rights associated
      with
      all of the outstanding capital Stock of any of its direct Subsidiaries;
      (e) Odyssey GP ceases to own and control all of the economic and voting
      rights associated with all of the outstanding capital Stock of any of its direct
      Subsidiaries; or (f) Odyssey LP ceases to own and control all of the
      economic and voting rights associated with all of the outstanding capital Stock
      of any of its direct Subsidiaries.

     

    
      
        
        

      

      
        Annex
          A -
          3

        
          

        

      

      
        
        

      

    

    "Charges"
      means
      all federal, state, county, city, municipal, local, foreign or other
      governmental taxes (including taxes owed to the PBGC at the time due and
      payable), levies, assessments, charges, liens, claims or encumbrances upon
      or
      relating to (a) the Collateral, (b) the Obligations, (c) the
      employees, payroll, income or gross receipts of any Credit Party, (d) any
      Credit Party's ownership or use of any properties or other assets, or
      (e) any other aspect of any Credit Party's business.

     

    "Chattel
      Paper"
      means
      any "chattel paper," as such term is defined in the Code, including electronic
      chattel paper, now owned or hereafter acquired by any Credit Party.

     

    "Closing
      Checklist"
      means
      the schedule, including all appendices, exhibits or schedules thereto, listing
      certain documents and information to be delivered in connection with the
      Agreement, the other Loan Documents and the transactions contemplated
      thereunder, substantially in the form attached hereto as Annex
      D.

     

    "Closing
      Date"
      means
      May 24, 2007.

     

    "Code"
      means
      the Uniform Commercial Code as the same may, from time to time, be enacted
      and
      in effect in the State of New York; provided,
      that to
      the extent that the Code is used to define any term herein or in any Loan
      Document and such term is defined differently in different Articles or Divisions
      of the Code, the definition of such term contained in Article or Division 9
      shall govern; provided,
      further,
      that in
      the event that, by reason of mandatory provisions of law, any or all of the
      attachment, perfection or priority of, or remedies with respect to, Agent's
      or
      any Lender's Lien on any Collateral is governed by the Uniform Commercial Code
      as enacted and in effect in a jurisdiction other than the State of New York,
      the
      term "Code"
      shall
      mean the Uniform Commercial Code as enacted and in effect in such other
      jurisdiction solely for purposes of the provisions thereof relating to such
      attachment, perfection, priority or remedies and for purposes of definitions
      related to such provisions.

     

    "Collateral"
      means
      the property covered by the Security Agreement and the other Collateral
      Documents and any other property, real or personal, tangible or intangible,
      now
      existing or hereafter acquired, that may at any time be or become subject to
      a
      security interest or Lien in favor of Agent, on behalf of itself and Lenders,
      to
      secure the Obligations.

     

    "Collateral
      Documents"
      means
      the Security Agreement, the Master Pledge Agreement, the OpCoB Pledge Agreement,
      the Guaranties, the Trademark Security Agreements, and all similar agreements
      entered into guaranteeing payment of, or granting a Lien upon property as
      security for payment of, the Obligations.

     

    
      
        
        

      

      
        Annex
          A -
          4

        
          

        

      

      
        
        

      

    

    "Collection
      Account"
      means
      that certain account of Agent, account number 502-710-79 in the name of Agent
      at
      Deutsche Bank Trust Company Americas in New York, New York ABA No. 021 001
      033,
      or such other account as may be specified in writing by Agent as the "Collection
      Account."

    

    "Commitment
      Termination Date"
      means
      the earliest of (a) May 24, 2009, (b) the date of termination of
      Lenders' obligations to make Advances and to incur Letter of Credit Obligations
      or permit existing Loans to remain outstanding pursuant to Section 8.2(b),
      and
      (c) the date of prepayment in full by Borrowers of the Loans and the
      cancellation and return (or stand-by guarantee) of all Letters of Credit or
      the
      cash collateralization of all Letter of Credit Obligations pursuant to
Annex
      B,
      and the
      permanent reduction of all Commitments to zero dollars ($0).

     

    "Commitments"
      means
      (a) as to any Lender, such Lender's Revolving Loan Commitment as set forth
      on Annex I
      to the
      Agreement or in the most recent Assignment Agreement executed by such Lender
      and
      (b) as to all Lenders, the aggregate of all Lenders' Revolving Loan
      Commitments, which aggregate commitment shall be $40,000,000 on the Closing
      Date, and as to each of clauses (a)
      and
(b),
      as such
      Commitments may be increased, reduced, amortized or adjusted from time to time
      in accordance with the Agreement.

     

    "Compliance
      Certificate"
      has the
      meaning ascribed to it in Annex
      E.

     

    "Contracts"
      means
      all "contracts," as such term is defined in the Code, now owned or hereafter
      acquired by any Credit Party, in any event, including all contracts,
      undertakings, or agreements (other than rights evidenced by Chattel Paper,
      Documents or Instruments) in or under which any Credit Party may now or
      hereafter have any right, title or interest, including any agreement relating
      to
      the terms of payment or the terms of performance of any Account.

     

    "Control
      Letter"
      means a
      letter agreement, in form and substance reasonably satisfactory to Agent,
      between Agent and (i) the issuer of uncertificated securities with respect
      to uncertificated securities in the name of any Credit Party, (ii) a
      securities intermediary with respect to securities, whether certificated or
      uncertificated, securities entitlements and other financial assets held in
      a
      securities account in the name of any Credit Party, (iii) a futures
      commission merchant or clearing house, as applicable, with respect to commodity
      accounts and commodity contracts held by any Credit Party, whereby, among other
      things, the issuer, securities intermediary or futures commission merchant
      disclaims any security interest in the applicable financial assets, acknowledges
      the Lien of Agent, on behalf of itself and Lenders, on such financial assets,
      and agrees to follow the instructions or entitlement orders of Agent without
      further consent by the affected Credit Party.

     

    
      
        
        

      

      
        Annex
          A -
          5

        
          

        

      

      
        
        

      

    

    "Copyright
      License"
      means
      any and all rights now owned or hereafter acquired by any Credit Party under
      any
      written agreement granting any right to use any Copyright or Copyright
      registration.

     

    "Copyrights"
      means
      all of the following now owned or hereafter adopted or acquired by any Credit
      Party: (a) all copyrights and General Intangibles of like nature (whether
      registered or unregistered), all registrations and recordings thereof, and
      all
      applications in connection therewith, including all registrations, recordings
      and applications in the United States Copyright Office or in any similar office
      or agency of the United States, any state or territory thereof, or any other
      country or any political subdivision thereof, and (b) all reissues,
      extensions or renewals thereof.

     

    "Corporate
      Integrity Agreement"
      means
      the corporate integrity agreement, dated July 6, 2006, by and between The Office
      of Inspector General of the Department of Health and Human Services and
      Holdings, as it may be amended.

     

    "Credit
      Parties"
      means
      Odyssey Healthcare Management LP, a Delaware limited partnership, Holdings,
      Parent, Odyssey GP, Odyssey LP, each Non-Guarantor Subsidiary, each Borrower,
      and each of their respective Subsidiaries.

     

    "Default"
      means
      any event that, with the passage of time or notice or both, would, unless cured
      or waived, become an Event of Default.

     

    "Default
      Rate"
      has the
      meaning ascribed to it in Section 1.5(d).

     

    "Disbursement
      Accounts"
      has the
      meaning ascribed to it in Annex
      C.

     

    "Disclosure
      Schedules"
      means
      the Schedules prepared by Borrowers and denominated as Disclosure Schedules
      1.4
      through
6.7
      in the
      Index to the Agreement.

     

    "Documents"
      means
      all "documents," as such term is defined in the Code, now owned or hereafter
      acquired by any Credit Party, wherever located.

     

    "Dollars"
      or
      "$"
      means
      lawful currency of the United States of America.

     

    "EBITDA"
      means,
      with respect to any Person for any fiscal period, without duplication, an amount
      equal to (a) consolidated net income of such Person for such period
      determined in accordance with GAAP, minus
      (b) the sum of (i) income tax credits, (ii) interest income,
      (iii) gain from extraordinary items for such period, (iv) any
      aggregate net gain (but not any aggregate net loss) during such period arising
      from the sale, exchange or other disposition of capital assets by such Person
      (including any fixed assets, whether tangible or intangible, all inventory
      sold
      in conjunction with the disposition of fixed assets and all securities), and
      (v) any other non-cash gains that have been added in determining
      consolidated net income, in each case to the extent included in the calculation
      of consolidated net income of such Person for such period in accordance with
      GAAP, but without duplication, plus
      (c) the sum of (i) any provision for income taxes, (ii) Interest
      Expense, (iii) loss from extraordinary items for such period, (iv) the
      amount of non-cash charges (including depreciation and amortization) for such
      period, (v) amortized debt discount for such period, and (vi) the
      amount of any deduction to consolidated net income as the result of any grant
      to
      any members of the management of such Person of any Stock, in each case to
      the
      extent included in the calculation of consolidated net income of such Person
      for
      such period in accordance with GAAP, but without duplication, plus
      (d) Pro
      Forma Acquisition EBITDA. For purposes of this definition, the following items
      shall be excluded in determining consolidated net income of a Person:
      (1) except as otherwise included in the calculation of Pro Forma
      Acquisition EBITDA, the income (or deficit) of any other Person accrued prior
      to
      the date it became a Subsidiary of, or was merged or consolidated into, such
      Person or any of such Person's Subsidiaries; (2) the income (or deficit) of
      any other Person (other than a Subsidiary) in which such Person has an ownership
      interest, except to the extent any such income has actually been received by
      such Person in the form of cash dividends or distributions; (3) the
      undistributed earnings of any Subsidiary of such Person to the extent that
      the
      declaration or payment of dividends or similar distributions by such Subsidiary
      is not at the time permitted by the terms of any contractual obligation or
      requirement of law applicable to such Subsidiary; (4) any restoration to
      income of any contingency reserve, except to the extent that provision for
      such
      reserve was made out of income accrued during such period; (5) any write-up
      of any asset; (6) any net gain from the collection of the proceeds of life
      insurance policies; (7) any net gain arising from the acquisition of any
      securities, or the extinguishment, under GAAP, of any Indebtedness, of such
      Person, (8) in the case of a successor to such Person by consolidation or
      merger or as a transferee of its assets, any earnings of such successor prior
      to
      such consolidation, merger or transfer of assets, and (9) any deferred
      credit representing the excess of equity in any Subsidiary of such Person at
      the
      date of acquisition of such Subsidiary over the cost to such Person of the
      investment in such Subsidiary.
      

     

    
      
        
        

      

      
        Annex
          A -
          6

        
          

        

      

      
        
        

      

    

    "Environmental
      Laws"
      means
      all applicable federal, state, local and foreign laws, statutes, ordinances,
      codes, rules, standards and regulations, now or hereafter in effect, and any
      applicable judicial or administrative interpretation thereof, including any
      applicable judicial or administrative order, consent decree, order or judgment,
      imposing liability or standards of conduct for or relating to the regulation
      and
      protection of human health, safety, the environment and natural resources
      (including ambient air, surface water, groundwater, wetlands, land surface
      or
      subsurface strata, wildlife, aquatic species and vegetation). Environmental
      Laws
      include the Comprehensive Environmental Response, Compensation, and Liability
      Act of 1980 (42 U.S.C. §§ 9601 et
      seq.)
      ("CERCLA");
      the
      Hazardous Materials Transportation Authorization Act of 1994 (49 U.S.C. §§ 5101
et
      seq.);
      the
      Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. §§ 136
et
      seq.);
      the
      Solid Waste Disposal Act (42 U.S.C. §§ 6901 et
      seq.);
      the
      Toxic Substance Control Act (15 U.S.C. §§ 2601 et
      seq.);
      the
      Clean Air Act (42 U.S.C. §§ 7401 et
      seq.);
      the
      Federal Water Pollution Control Act (33 U.S.C. §§ 1251 et
      seq.);
      the
      Occupational Safety and Health Act (29 U.S.C. §§ 651 et
      seq.);
      and the
      Safe Drinking Water Act (42 U.S.C. §§ 300(f) et
      seq.),
      and any
      and all regulations promulgated thereunder, and all analogous state, local
      and
      foreign counterparts or equivalents and any transfer of ownership notification
      or approval statutes.

     

    "Environmental
      Liabilities"
      means,
      with respect to any Person, all liabilities, obligations, responsibilities,
      response, remedial and removal costs, investigation and feasibility study costs,
      capital costs, operation and maintenance costs, losses, damages, punitive
      damages, property damages, natural resource damages, consequential damages,
      treble damages, costs and expenses (including all reasonable fees, disbursements
      and expenses of counsel, experts and consultants), fines, penalties, sanctions
      and interest incurred as a result of or related to any claim, suit, action,
      investigation, proceeding or demand by any Person, whether based in contract,
      tort, implied or express warranty, strict liability, criminal or civil statute
      or common law, including any arising under or related to any Environmental
      Laws,
      Environmental Permits, or in connection with any Release or threatened Release
      or presence of a Hazardous Material whether on, at, in, under, from or about
      or
      in the vicinity of any real or personal property.

     

    
      
        
        

      

      
        Annex
          A -
          7

        
          

        

      

      
        
        

      

    

    "Environmental
      Permits"
      means
      all permits, licenses, authorizations, certificates, approvals or registrations
      required by any Governmental Authority under any Environmental
      Laws.

     

    "Equipment"
      means
      all "equipment," as such term is defined in the Code, now owned or hereafter
      acquired by any Credit Party, wherever located and, in any event, including
      all
      such Credit Party's machinery and equipment, including processing equipment,
      conveyors, machine tools, data processing and computer equipment, including
      embedded software and peripheral equipment and all engineering, processing
      and
      manufacturing equipment, office machinery, furniture, materials handling
      equipment, tools, attachments, accessories, automotive equipment, trailers,
      trucks, forklifts, molds, dies, stamps, motor vehicles, rolling stock and other
      equipment of every kind and nature, trade fixtures and fixtures not forming
      a
      part of real property, together with all additions and accessions thereto,
      replacements therefor, all parts therefor, all substitutes for any of the
      foregoing, fuel therefor, and all manuals, drawings, instructions, warranties
      and rights with respect thereto, and all products and proceeds thereof and
      condemnation awards and insurance proceeds with respect thereto.

     

    "ERISA"
      means
      the Employee Retirement Income Security Act of 1974, as amended from time to
      time, and any regulations promulgated thereunder.

     

    "ERISA
      Affiliate"
      means,
      with respect to any Credit Party, any trade or business (whether or not
      incorporated) that, together with such Credit Party, are treated as a single
      employer within the meaning of Sections 414(b), (c), (m) or (o) of the
      IRC.

     

    "ERISA
      Event"
      means,
      with respect to any Credit Party or any ERISA Affiliate, (a) with respect to
      a
      Title IV Plan, any event described in Section 4043(c) of ERISA for which notice
      to the PBGC has not been waived; (b) the withdrawal of any Credit Party or
      ERISA
      Affiliate from a Title IV Plan subject to Section 4063 of ERISA during a plan
      year in which it was a substantial employer, as defined in Section 4001(a)(2)
      of
      ERISA; (c) the complete or partial withdrawal of any Credit Party or any ERISA
      Affiliate from any Multiemployer Plan; (d) the filing of a notice of intent
      to
      terminate a Title IV Plan in a distress termination described in Section 4041(c)
      of ERISA or the treatment of a plan amendment as a termination under Section
      4041 of ERISA; (e) the institution of proceedings to terminate a Title IV Plan
      or Multiemployer Plan by the PBGC; (f) with respect to a Title IV Plan, the
      existence of an “accumulated funding deficiency” (as defined in Section 412 of
      the IRC or Section 302 of ERISA) whether or not waived, or the failure to make
      by its due date a required installment under Section 412(m) of the Code or
      the
      failure to make any required contribution to a Multiemployer Plan; (g) the
      filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of
      an
      application for a waiver of the minimum funding standard with respect to a
      Title
      IV Plan; (h) the making of any amendment to any Title IV Plan which could result
      in the imposition of a lien or the posting of a bond or other security; (i)
      with
      respect to a Title IV Plan an event described in Section 4062(e) of ERISA;
      (j)
      any other event or condition that would reasonably be expected to constitute
      grounds under Section 4042 of ERISA for the termination of, or the appointment
      of a trustee to administer, any Title IV Plan or Multiemployer Plan or for
      the
      imposition of liability under Section 4069 or 4212(c) of ERISA; (k) the
      termination of a Multiemployer Plan under Section 4041A of ERISA or the
      reorganization or insolvency of a Multiemployer Plan under Section 4241 or
      4245
      of ERISA; (l) the loss of a Qualified Plan’s qualification or tax exempt status;
      or (m) the termination of a Plan described in Section 4064 of
      ERISA.

     

    
      
        
        

      

      
        Annex
          A -
          8

        
          

        

      

      
        
        

      

    

    "ESOP"
      means a
      Plan that is intended to satisfy the requirements of Section 4975(e)(7) of
      the IRC.

     

    "E-System"
      means
      any electronic system, including Intralinks®
      and any
      other Internet or extranet-based site, whether such electronic system is owned,
      operated or hosted by Agent, any of its Affiliates, or any of such Person’s
      respective officers, directors, employees, attorneys, agents and representatives
      or any other Person, providing for access to data protected by passcodes or
      other security system.

     

    "Event
      of Default"
      has the
      meaning ascribed to it in Section 8.1.

     

    "Existing
      Credit Agreement"
      has the
      meaning ascribed to it in the recitals to the Agreement.

     

    "Fair
      Labor Standards Act"
      means
      the Fair Labor Standards Act, 29 U.S.C. §201 et seq.

     

    "Federal
      Funds Rate"
      means,
      for any day, a floating rate equal to the weighted average of the rates on
      overnight Federal funds transactions among members of the Federal Reserve
      System, as determined by Agent in its sole discretion, which determination
      shall
      be final, binding and conclusive (absent manifest error).

     

    
      
        
        

      

      
        Annex
          A -
          9

        
          

        

      

      
        
        

      

    

    "Federal
      Reserve Board"
      means
      the Board of Governors of the Federal Reserve System.

     

    "Fees"
      means
      any and all fees payable to Agent or any Lender pursuant to the Agreement or
      any
      of the other Loan Documents.

     

    "Financial
      Covenants"
      means
      the financial covenants set forth in Annex
      F.

     

    "Financial
      Statements"
      means
      the consolidated income statements, statements of cash flows and balance sheets
      of Holdings and its Subsidiaries delivered in accordance with Section 3.4
      and
Annex
      E.

     

    "Fiscal
      Quarter"
      means
      any of the quarterly accounting periods of Borrowers, ending on March 31, June
      30, September 30 and December 31 of each year.

     

    "Fiscal
      Year"
      means
      any of the annual accounting periods of Borrowers ending on December 31 of
      each
      year.

     

    "Fixed
      Charge Coverage Ratio"
      means,
      with respect to any Person for any fiscal period, the ratio of (1) EBITDA of
      such Person for such fiscal period, minus unfinanced Capital Expenditures made
      by such Person during such period, minus cash taxes paid by such Person during
      such period and minus Pro Forma Acquisition EBITDA for such period, to (2)
      Fixed
      Charges incurred or accrued by such Person for such period.

     

    "Fixed
      Charges"
      means,
      with respect to any Person for any fiscal period, (a) the aggregate of all
      Interest Expense paid or accrued during such period, plus (b) scheduled
      payments of principal with respect to Indebtedness during such period.

     

    "Fixtures"
      means
      all "fixtures" as such term is defined in the Code, now owned or hereafter
      acquired by any Credit Party.

     

    "Foreign
      Lender"
      has the
      meaning ascribed to it in Section
      1.15(c).
      

     

    "Funded
      Debt"
      means,
      with respect to any Person, without duplication, all Indebtedness for borrowed
      money evidenced by notes, bonds, debentures, or similar evidences of
      Indebtedness that by its terms matures more than one year from, or is directly
      or indirectly renewable or extendible at such Person's option under a revolving
      credit or similar agreement obligating the lender or lenders to extend credit
      over a period of more than one year from the date of creation thereof, and
      specifically including Capital Lease Obligations, current maturities of
      long-term debt, revolving credit and short-term debt extendible beyond one
      year
      at the option of the debtor, and also including, in the case of Borrowers,
      the
      Obligations and, without duplication, Guaranteed Indebtedness consisting of
      guaranties of Funded Debt of other Persons.

     

    
      
        
        

      

      
        Annex
          A -
          10

        
          

        

      

      
        
        

      

    

    "GAAP"
      means
      generally accepted accounting principles in the United States of America
      consistently applied, as such term is further defined in Annex
      F
      to the
      Agreement.

     

    "GE
      Capital"
      means
      General Electric Capital Corporation, a Delaware corporation.

     

    "GE
      Capital Fee Letter"
      has the
      meaning ascribed to it in Section 1.9.

     

    "General
      Intangibles"
      means
      all "general intangibles," as such term is defined in the Code, now owned or
      hereafter acquired by any Credit Party, including all right, title and interest
      that such Credit Party may now or hereafter have in or under any Contract,
      all
      payment intangibles, customer lists, Licenses, Copyrights, Trademarks, Patents,
      and all applications therefor and reissues, extensions or renewals thereof,
      rights in Intellectual Property, interests in partnerships, joint ventures
      and
      other business associations, licenses, permits, copyrights, trade secrets,
      proprietary or confidential information, inventions (whether or not patented
      or
      patentable), technical information, procedures, designs, knowledge, know-how,
      Software, data bases, data, skill, expertise, experience, processes, models,
      drawings, materials and records, goodwill (including the goodwill associated
      with any Trademark or Trademark License), all rights and claims in or under
      insurance policies (including insurance for fire, damage, loss and casualty,
      whether covering personal property, real property, tangible rights or intangible
      rights, all liability, life, key man and business interruption insurance, and
      all unearned premiums), uncertificated securities, choses in action, deposit,
      checking and other bank accounts, rights to receive tax refunds and other
      payments, rights to receive dividends, distributions, cash, Instruments and
      other property in respect of or in exchange for pledged Stock and Investment
      Property, rights of indemnification, all books and records, correspondence,
      credit files, invoices and other papers, including without limitation all tapes,
      cards, computer runs and other papers and documents in the possession or under
      the control of such Credit Party or any computer bureau or service company
      from
      time to time acting for such Credit Party.

     

    "Goods"
      means
      all "goods" as defined in the Code, now owned or hereafter acquired by any
      Credit Party, wherever located, including embedded software to the extent
      included in "goods" as defined in the Code, manufactured homes, standing timber
      that is cut and removed for sale and unborn young of animals.

     

    "Governmental
      Authority"
      means
      any nation or government, any state or other political subdivision thereof,
      and
      any agency, department or other entity exercising executive, legislative,
      judicial, regulatory or administrative functions of or pertaining to
      government.

     

    "Guaranteed
      Indebtedness"
      means as
      to any Person, any obligation of such Person guaranteeing, providing comfort
      or
      otherwise supporting any Indebtedness, lease, dividend, or other obligation
      ("primary
      obligation")
      of any
      other Person (the "primary
      obligor")
      in any
      manner, including any obligation or arrangement of such Person to
      (a) purchase or repurchase any such primary obligation, (b) advance or
      supply funds (i) for the purchase or payment of any such primary obligation
      or (ii) to maintain working capital or equity capital of the primary
      obligor or otherwise to maintain the net worth or solvency or any balance sheet
      condition of the primary obligor, (c) purchase property, securities or
      services primarily for the purpose of assuring the owner of any such primary
      obligation of the ability of the primary obligor to make payment of such primary
      obligation, (d) protect the beneficiary of such arrangement from loss
      (other than product warranties given in the ordinary course of business) or
      (e) indemnify the owner of such primary obligation against loss in respect
      thereof. The amount of any Guaranteed Indebtedness at any time shall be deemed
      to be an amount equal to the lesser at such time of (x) the stated or
      determinable amount of the primary obligation in respect of which such
      Guaranteed Indebtedness is incurred and (y) the maximum amount for which
      such Person may be liable pursuant to the terms of the instrument embodying
      such
      Guaranteed Indebtedness, or, if not stated or determinable, the maximum
      reasonably anticipated liability (assuming full performance) in respect
      thereof.

     

    
      
        
        

      

      
        Annex
          A -
          11

        
          

        

      

      
        
        

      

    

    "Guaranties"
      means,
      collectively, each guaranty executed by any Guarantor in favor of Agent and
      Lenders in respect of the Obligations.

     

    "Guarantors"
      means
      each Credit Party, other than the Borrowers and, until they shall have executed
      and delivered a Guaranty in compliance with Section 5.12, the Non-Guarantor
      Subsidiaries, and each other Person, if any, that executes a guaranty or other
      similar agreement in favor of Agent, for itself and the ratable benefit of
      Lenders, in connection with the transactions contemplated by the Agreement
      and
      the other Loan Documents.

     

    "Hazardous
      Material"
      means
      any substance, material or waste that is regulated by, or forms the basis of
      liability now or hereafter under, any Environmental Laws, including any material
      or substance that is (a) defined as a "solid waste," "hazardous waste,"
      "hazardous material," "hazardous substance," "extremely hazardous waste,"
      "restricted hazardous waste," "pollutant," "contaminant," "hazardous
      constituent," "special waste," "toxic substance" or other similar term or phrase
      under any Environmental Laws, or (b) petroleum or any fraction or
      by-product thereof, asbestos, polychlorinated biphenyls (PCB's), or any
      radioactive substance.

     

    "Healthcare
      Laws"
      has the
      meaning ascribed to it in Section
      3.24.

     

    "HIPAA"
      means the
      Health Insurance Portability and Accountability Act of 1996, as the same may
      be
      amended, modified or supplemented from time to time, and any successor statute
      thereto, and any and all rules or regulations promulgated from time to time
      thereunder.

     

    "Holdings"
      means
      Odyssey HealthCare, Inc., a Delaware corporation.

     

    
      
        
        

      

      
        Annex
          A -
          12

        
          

        

      

      
        
        

      

    

    "Indebtedness"
      means,
      with respect to any Person, without duplication, (a) all indebtedness of such
      Person for borrowed money or for the deferred purchase price of property payment
      for which is deferred six months or more, but excluding obligations to trade
      creditors incurred in the ordinary course of business that are unsecured and
      not
      overdue by more than six months unless being contested in good faith, (b) all
      reimbursement and other obligations with respect to letters of credit, bankers'
      acceptances and surety bonds, whether or not matured, (c) all obligations
      evidenced by notes, bonds, debentures or similar instruments, (d) all
      indebtedness created or arising under any conditional sale or other title
      retention agreement with respect to property acquired by such Person (even
      though the rights and remedies of the seller or lender under such agreement
      in
      the event of default are limited to repossession or sale of such property),
      (e)
      all Capital Lease Obligations and the present value (discounted at the Index
      Rate as in effect on the Closing Date) of future rental payments under all
      synthetic leases, (f) all obligations of such Person under commodity purchase
      or
      option agreements or other commodity price hedging arrangements, in each case
      whether contingent or matured, (g) all obligations of such Person under any
      foreign exchange contract, currency swap agreement, interest rate swap, cap
      or
      collar agreement or other similar agreement or arrangement designed to alter
      the
      risks of that Person arising from fluctuations in currency values or interest
      rates, in each case whether contingent or matured, (h) all Indebtedness referred
      to above secured by (or for which the holder of such Indebtedness has an
      existing right, contingent or otherwise, to be secured by) any Lien upon or
      in
      property or other assets (including accounts and contract rights) owned by
      such
      Person, even though such Person has not assumed or become liable for the payment
      of such Indebtedness and (i) the Obligations.

     

    "Indemnified
      Liabilities"
      has the
      meaning ascribed to it in Section 1.13.

     

    "Indemnified
      Person"
      has the
      meaning ascribed to in Section 1.13.

     

    "Index
      Rate"
      means,
      for any day, a floating rate equal to the higher of (i) the rate publicly
      quoted from time to time by The Wall Street Journal
      as the
      "prime rate" (or, if The Wall Street
      Journal
      ceases
      quoting a prime rate the highest per annum rate of interest published by the
      Federal Reserve Board in Federal Reserve statistical release H.15 (519)
      entitled "Selected Interest Rates" as the Bank prime loan rate or its
      equivalent), and (ii) the Federal Funds Rate plus 50 basis points per
      annum. Each change in any interest rate provided for in the Agreement based
      upon
      the Index Rate shall take effect at the time of such change in the Index
      Rate.

     

    "Index
      Rate Loan"
      means a
      Loan or portion thereof bearing interest by reference to the Index
      Rate.

     

    "Instruments"
      means
      all "instruments," as such term is defined in the Code, now owned or hereafter
      acquired by any Credit Party, wherever located, and, in any event, including
      all
      certificated securities, all certificates of deposit, and all promissory notes
      and other evidences of Indebtedness, other than instruments that constitute,
      or
      are a part of a group of writings that constitute, Chattel Paper.

     

    
      
        
        

      

      
        Annex
          A -
          13

        
          

        

      

      
        
        

      

    

    "Intellectual
      Property"
      means
      any and all Licenses, Patents, Copyrights, Trademarks, and the goodwill
      associated with such Trademarks.

     

    "Interest
      Expense"
      means,
      with respect to any Person for any fiscal period, interest expense (whether
      cash
      or non-cash) of such Person determined in accordance with GAAP for the relevant
      period ended on such date, including, interest expense with respect to any
      Funded Debt of such Person and interest expense for the relevant period that
      has
      been capitalized on the balance sheet of such Person.

     

    "Interest
      Payment Date"
      means
      (a) as to any Index Rate Loan, the first Business Day of each month to
      occur while such Loan is outstanding, and (b) as to any LIBOR Loan, the
      last day of the applicable LIBOR Period; provided,
      that, in
      addition to the foregoing, each of (x) the date upon which all of the
      Commitments have been terminated and the Loans have been paid in full and
      (y) the Commitment Termination Date shall be deemed to be an "Interest
      Payment Date" with respect to any interest that has then accrued under the
      Agreement.

     

    "Inventory"
      means
      all "inventory," as such term is defined in the Code, now owned or hereafter
      acquired by any Credit Party, wherever located, and in any event including
      inventory, merchandise, goods and other personal property that are held by
      or on
      behalf of any Credit Party for sale or lease or are furnished or are to be
      furnished under a contract of service, or that constitute raw materials, work
      in
      process, finished goods, returned goods, or materials or supplies of any kind,
      nature or description used or consumed or to be used or consumed in such Credit
      Party's business or in the processing, production, packaging, promotion,
      delivery or shipping of the same, including all supplies and embedded
      Software.

     

    "Investment
      Property"
      means
      all "investment property" as such term is defined in the Code now owned or
      hereafter acquired by any Credit Party, wherever located, including (i) all
      securities, whether certificated or uncertificated, including stocks, bonds,
      interests in limited liability companies, partnership interests, treasuries,
      certificates of deposit, and mutual fund shares; (ii) all securities
      entitlements of any Credit Party, including the rights of any Credit Party
      to
      any securities account and the financial assets held by a securities
      intermediary in such securities account and any free credit balance or other
      money owing by any securities intermediary with respect to that account;
      (iii) all securities accounts of any Credit Party; (iv) all commodity
      contracts of any Credit Party; and (v) all commodity accounts held by any
      Credit Party.

     

    "IRC"
      means
      the Internal Revenue Code of 1986 and all regulations promulgated
      thereunder.

     

    "IRS"
      means
      the Internal Revenue Service.

     

    
      
        
        

      

      
        Annex
          A -
          14

        
          

        

      

      
        
        

      

    

    "L/C
      Issuer"
      has the
      meaning ascribed to it in Annex
      B.

     

    "L/C
      Sublimit"
      has the
      meaning ascribed to it in Annex
      B.

     

    "Lenders"
      means,
      collectively, (i) GE Capital, and, if GE Capital shall decide to assign all
      or
      any portion of the Obligations pursuant to the terms of this Agreement, such
      term shall include any assignee of GE Capital and (ii) each other Person or
      Persons, if any, that shall from time to time become a party to this Agreement
      as a Lender pursuant to a joinder in form and substance acceptable to Agent
      and,
      if any, such Person or Persons shall decide to assign all or any portion of
      the
      Obligations, such term shall include any assignees of such Person or
      Persons.

     

    "Letter
      of Credit Fee"
      has the
      meaning ascribed to it in Annex
      B.

     

    "Letter
      of Credit Obligations"
      means
      all outstanding obligations incurred by Agent and Lenders at the request of
      Borrowers, whether direct or indirect, contingent or otherwise, due or not
      due,
      in connection with the issuance of Letters of Credit by Agent or another L/C
      Issuer or the purchase of a participation as set forth in Annex B
      with
      respect to any Letter of Credit. The amount of such Letter of Credit Obligations
      shall equal the maximum amount that may be payable at such time or at any time
      thereafter by Agent or Lenders thereupon or pursuant thereto.

     

    "Letters
      of Credit"
      means
      documentary or standby letters of credit issued for the account of any Borrower
      by any L/C Issuer, and bankers' acceptances issued by any Borrower, for which
      Agent and Lenders have incurred Letter of Credit Obligations.

     

    "Leverage
      Ratio"
      means,
      with respect to Holdings and its Subsidiaries, on a consolidated basis, the
      ratio of (a) Funded Debt of Holdings and its Subsidiaries as of any date of
      determination, to (b) EBITDA for the twelve months ending on that date of
      determination. 

     

    "LIBOR
      Business Day"
      means a
      Business Day on which banks in the City of London are generally open for
      interbank or foreign exchange transactions.

     

    "LIBOR
      Loan"
      means a
      Loan or any portion thereof bearing interest by reference to the LIBOR
      Rate.

     

    "LIBOR
      Period"
      means,
      with respect to any LIBOR Loan, each period commencing on a LIBOR Business
      Day
      selected by Borrowers pursuant to the Agreement and ending one, two, three
      or
      six months thereafter, as selected by Borrowers' irrevocable notice to Agent
      as
      set forth in Section 1.5(e);
      provided,
      that the
      foregoing provision relating to LIBOR Periods is subject to the
      following:

     

    (a) if
      any
      LIBOR Period would otherwise end on a day that is not a LIBOR Business Day,
      such
      LIBOR Period shall be extended to the next succeeding LIBOR Business Day unless
      the result of such extension would be to carry such LIBOR Period into another
      calendar month in which event such LIBOR Period shall end on the immediately
      preceding LIBOR Business Day;

     

    
      
        
        

      

      
        Annex
          A -
          15

        
          

        

      

      
        
        

      

    

    (b) any
      LIBOR
      Period that would otherwise extend beyond the Commitment Termination Date shall
      end 2 LIBOR Business Days prior to such date;

     

    (c) any
      LIBOR
      Period that begins on the last LIBOR Business Day of a calendar month (or on
      a
      day for which there is no numerically corresponding day in the calendar month
      at
      the end of such LIBOR Period) shall end on the last LIBOR Business Day of a
      calendar month;

     

    (d) Borrowers
      shall select LIBOR Periods so as not to require a payment or prepayment of
      any
      LIBOR Loan during a LIBOR Period for such Loan; and

     

    (e) Borrowers
      shall select LIBOR Periods so that there shall be no more than 5 separate LIBOR
      Loans in existence at any one time.

     

    "LIBOR
      Rate"
      means
      for each LIBOR Period, a rate of interest determined by Agent equal
      to:

     

    (a) the
      offered rate for deposits in United States Dollars for the applicable LIBOR
      Period that appears on Telerate Page 3750 as of 11:00 a.m. (London time),
      on the second full LIBOR Business Day next preceding the first day of such
      LIBOR
      Period (unless such date is not a Business Day, in which event the next
      succeeding Business Day will be used); divided by

     

    (b) a
      number
      equal to 1.0 minus
      the
      aggregate (but without duplication) of the rates (expressed as a decimal
      fraction) of reserve requirements in effect on the day that is 2 LIBOR Business
      Days prior to the beginning of such LIBOR Period (including basic, supplemental,
      marginal and emergency reserves under any regulations of the Federal Reserve
      Board or other Governmental Authority having jurisdiction with respect thereto,
      as now and from time to time in effect) for Eurocurrency funding (currently
      referred to as "Eurocurrency Liabilities" in Regulation D of the Federal Reserve
      Board that are required to be maintained by a member bank of the Federal Reserve
      System.

     

    
      
        
        

      

      
        Annex
          A -
          16

        
          

        

      

      
        
        

      

    

    If
      such
      interest rates shall cease to be available from Telerate News Service, the
      LIBOR
      Rate shall be determined from such financial reporting service or other
      information as shall be mutually acceptable to Agent and Borrowers.

     

    "License"
      means
      any Copyright License, Patent License, Trademark License or other license of
      rights or interests now held or hereafter acquired by any Credit
      Party.

     

    "Lien"
      means
      any mortgage or deed of trust, pledge, hypothecation, assignment, deposit
      arrangement, lien, charge, claim, security interest, easement or encumbrance,
      or
      preference, priority or other security agreement or preferential arrangement
      of
      any kind or nature whatsoever (including any lease or title retention agreement,
      any financing lease having substantially the same economic effect as any of
      the
      foregoing, and the filing of, or agreement to give, any financing statement
      perfecting a security interest under the Code or comparable law of any
      jurisdiction).

     

    "Litigation"
      has the
      meaning ascribed to it in Section 3.13.

     

    "Loan
      Account"
      has the
      meaning ascribed to it in Section 1.12.

     

    "Loan
      Documents"
      means
      the Agreement, the Notes, the Collateral Documents, and all other agreements,
      instruments, documents and certificates identified in the Closing Checklist
      executed and delivered to, or in favor of, Agent or any Lenders and including
      all other pledges, powers of attorney, consents, assignments, contracts,
      notices, and all other written matter whether heretofore, now or hereafter
      executed by or on behalf of any Credit Party, or any employee of any Credit
      Party, and delivered to Agent or any Lender in connection with the Agreement
      or
      the transactions contemplated thereby. Any reference in the Agreement or any
      other Loan Document to a Loan Document shall include all appendices, exhibits
      or
      schedules thereto, and all amendments, restatements, supplements or other
      modifications thereto, and shall refer to the Agreement or such Loan Document
      as
      the same may be in effect at any and all times such reference becomes
      operative.

     

    "Loans"
      means
      the Revolving Loan.

     

    "Lock
      Boxes"
      has the
      meaning ascribed to it in Annex
      C.

     

    "Margin
      Stock"
      has the
      meaning ascribed to in Section 3.10.

     

    "Master
      Pledge Agreement"
      means
      the Pledge Agreement dated as of May 14, 2004 executed by Holdings, Parent,
      Odyssey GP and Odyssey LP in favor of Agent, on behalf of itself and Lenders,
      pledging all Stock of Subsidiaries and all intercompany notes owing to or held
      by any of them.

     

    "Material
      Adverse Effect"
      means a
      material adverse effect on (a) the business, industry, assets, operations
      or financial or other condition of the Credit Parties considered as a whole,
      (b) any Credit Party's ability to pay any of the Loans or any of the other
      Obligations in accordance with the terms of the Agreement, (c) the
      Collateral or Agent's Liens, on behalf of itself and Lenders, on the Collateral
      or the priority of such Liens, or (d) Agent's or any Lender's rights and
      remedies under the Agreement and the other Loan Documents. Without limiting
      the
      generality of the foregoing, any event or occurrence adverse to one or more
      Credit Parties which results or could reasonably be expected to result in costs
      and/or liabilities or loss of revenues, individually or in the aggregate, in
      any
      30-day period in excess of fifteen percent (15%) of the lesser of (x) the
      Maximum Amount and (y) EBITDA for the twelve-month period ending as of the
      last
      day of the most recently ended Fiscal Quarter (based on the Compliance
      Certificate most recently delivered pursuant to Section 4.1) shall constitute
      a
      Material Adverse Effect. 

     

    
      
        
        

      

      
        Annex
          A -
          17

        
          

        

      

      
        
        

      

    

    "Maximum
      Amount"
      means,
      as of any date of determination, an amount equal to the Revolving Loan
      Commitment of all Lenders as of that date.

     

    "Maximum
      Lawful Rate"
      has the
      meaning ascribed to it in Section
      1.5(f).

     

    "Mortgage"
      means
      any mortgage, deed of trust or other document executed or required herein to
      be
      executed by any Credit Party and granting a security interest over real property
      in favor of Agent as security for the Obligations.

     

    "Mortgage
      Supporting Documents"
      means,
      with respect to any Mortgage for a parcel of real property, each document
      (including title searches and evidence regarding recording and payment of fees,
      property insurance premiums and taxes relating thereto) that Agent may
      reasonably request, to create, register, or perfect a valid Lien on such parcel
      of real property in favor of Agent for the benefit of the Lenders, subject
      only
      to Permitted Encumbrances and such other Liens as Agent may
      approve.

     

    "Multiemployer
      Plan"
      means a
      "multiemployer plan" as defined in Section 4001(a)(3) of ERISA, and to
      which any Credit Party or ERISA Affiliate is making, is obligated to make or
      has
      made or been obligated to make, contributions on behalf of participants who
      are
      or were employed by any of them.

     

    "Non-Funding
      Lender"
      has the
      meaning ascribed to it in Section 9.9(a)(ii).

     

    "Non-Guarantor
      Subsidiaries"
      means
      Odyssey Fort Worth, Odyssey Detroit, Odyssey Manatee County, Odyssey Collier
      County, Odyssey Northwest Florida, Odyssey Austin, Odyssey Hillsborough County,
      Odyssey Marion County, Odyssey Pinellas County and any other Subsidiary that
      was
      formed for a purpose other than to acquire any of the stock or assets of a
      Target.

     

    "Notes"
      means,
      collectively, the Revolving Notes.

     

    "Notice
      of Conversion/Continuation"
      has the
      meaning ascribed to it in Section 1.5(e).

     

    "Notice
      of Revolving Credit Advance"
      has the
      meaning ascribed to it in Section 1.1(a).

     

    "OpCoA"
      has the
      meaning ascribed thereto in the preamble to the Agreement.

     

    
      
        
        

      

      
        Annex
          A -
          18

        
          

        

      

      
        
        

      

    

    "OpCoB"
      has the
      meaning ascribed thereto in the preamble to the Agreement.

     

    "OpCoB
      Pledge Agreement"
      means
      the Pledge Agreement dated as of the Closing Date executed by OpCoB in favor
      of
      Agent, on behalf of itself and Lenders, pledging all Stock of Subsidiaries
      and
      all intercompany notes owing to and held by OpCoB.

     

    "Obligations"
      means
      all loans, advances, debts, liabilities and obligations for the performance
      of
      covenants, tasks or duties or for payment of monetary amounts (whether or not
      such performance is then required or contingent, or such amounts are liquidated
      or determinable) owing by any Credit Party to Agent or any Lender, and all
      covenants and duties regarding such amounts, of any kind or nature, present
      or
      future, whether or not evidenced by any note, agreement or other instrument,
      arising under the Agreement or any of the other Loan Documents. This term
      includes all principal, interest (including all interest that accrues after
      the
      commencement of any case or proceeding by or against any Credit Party in
      bankruptcy, whether or not allowed in such case or proceeding), Fees, Charges,
      expenses, attorneys' fees and any other sum chargeable to any Credit Party
      under
      the Agreement or any of the other Loan Documents.

     

    "Odyssey
      Austin"
      means
      Odyssey HealthCare Austin, LLC, a Delaware limited liability
      company.

     

    "Odyssey
      Collier County"
      means
      Odyssey HealthCare of Collier County, Inc., a Delaware corporation.

     

    "Odyssey
      Detroit"
      means
      Odyssey HealthCare Detroit, LLC, a Delaware limited liability company.

     

    "Odyssey
      Fort Worth"
      means
      Odyssey HealthCare Fort Worth, LLC, a Delaware limited liability company.

     

    "Odyssey
      GP"
      means
      Odyssey HealthCare GP, LLC, a Delaware limited liability company.

     

    "Odyssey
      Hillsborough County"
      means
      Odyssey HealthCare of Hillsborough County, Inc., a Delaware
      corporation.

     

    "Odyssey
      LP"
      means
      Odyssey HealthCare LP, LLC, a Delaware limited liability company.

     

    "Odyssey
      Manatee County"
      means
      Odyssey HealthCare of Manatee County, Inc., a Delaware corporation.

     

    "Odyssey
      Marion County"
      means
      Odyssey HealthCare of Marion County, Inc., a Delaware corporation.

     

    
      
        
        

      

      
        Annex
          A -
          19

        
          

        

      

      
        
        

      

    

    "Odyssey
      Northwest Florida"
      means
      Odyssey HealthCare of Northwest Florida, Inc., a Delaware
      corporation.

     

    "Odyssey
      Pinellas County"
      means
      Odyssey HealthCare of Pinellas County, Inc., a Delaware
      corporation.

     

    "Palm
      Coast"
      has the
      meaning ascribed thereto in the preamble to the Agreement.

     

    "Parent"
      means
      Odyssey HealthCare Holding Company, a Delaware corporation.

     

    "Patent
      License"
      means
      rights under any written agreement now owned or hereafter acquired by any Credit
      Party granting any right with respect to any invention on which a Patent is
      in
      existence.

     

    "Patents"
      means
      all of the following in which any Credit Party now holds or hereafter acquires
      any interest: (a) all letters patent of the United States or of any other
      country, all registrations and recordings thereof, and all applications for
      letters patent of the United States or of any other country, including
      registrations, recordings and applications in the United States Patent and
      Trademark Office or in any similar office or agency of the United States, any
      State, or any other country, and (b) all reissues, continuations,
      continuations-in-part or extensions thereof.

     

    "PBGC"
      means
      the Pension Benefit Guaranty Corporation.

     

    "Pension
      Plan"
      means a
      Plan described in Section 3(2) of ERISA.

     

    "Permitted
      Acquisition"
      has the
      meaning ascribed to it in Section
      6.1.

     

    "Permitted
      Encumbrances"
      means
      the following encumbrances: (a) Liens for taxes or assessments or other
      governmental Charges not yet due and payable or which are being contested in
      accordance with Section 5.2(b);
      (b) pledges or deposits of money securing statutory obligations under
      workmen's compensation, unemployment insurance, social security or public
      liability laws or similar legislation (excluding Liens under ERISA);
      (c) pledges or deposits of money securing bids, tenders, contracts (other
      than contracts for the payment of money) or leases to which any Credit Party
      is
      a party as lessee made in the ordinary course of business; (d) inchoate and
      unperfected workers', mechanics' or similar liens arising in the ordinary course
      of business, so long as such Liens attach only to Equipment, Fixtures and/or
      Real Estate; (e) carriers', warehousemen's, suppliers' or other similar
      possessory liens arising in the ordinary course of business and securing
      liabilities in an outstanding aggregate amount not in excess of $500,000 at
      any
      time, so long as such Liens attach only to Inventory; (f) deposits
      securing, or in lieu of, surety, appeal or customs bonds in proceedings to
      which
      any Credit Party is a party; (g) cash deposits securing reimbursement
      obligations in respect of outstanding Permitted L/Cs, in an amount not to exceed
      105% of the face amount of such Permitted L/Cs; (h) any attachment or
      judgment lien not constituting an Event of Default under Section 8.1(j);
      (i) zoning restrictions, easements, licenses, or other restrictions on the
      use of any Real Estate or other minor irregularities in title (including
      leasehold title) thereto, so long as the same do not materially impair the
      use,
      value, or marketability of such Real Estate; (j) presently existing or
      hereafter created Liens in favor of Agent, on behalf of Lenders; and
      (k) Liens expressly permitted under clauses (b)
      and
(c)
      of
Section 6.7
      of the
      Agreement.

     

    
      
        
        

      

      
        Annex
          A -
          20

        
          

        

      

      
        
        

      

    

    "Permitted
      L/Cs"
      means
      one or more letters of credit (other than Letters of Credit) in an aggregate
      stated face amount not to exceed $10,000,000
      at any time outstanding, having reimbursement obligations secured by no Liens
      other then Permitted Encumbrances. 

     

    "Person"
      means
      any individual, sole proprietorship, partnership, joint venture, trust,
      unincorporated organization, association, corporation, limited liability
      company, institution, public benefit corporation, other entity or government
      (whether federal, state, county, city, municipal, local, foreign, or otherwise,
      including any instrumentality, division, agency, body or department
      thereof).

     

    "Plan"
      means,
      at any time, an "employee benefit plan", as defined in Section 3(3) of
      ERISA, that any Credit Party or ERISA Affiliate maintains, contributes to or
      has
      an obligation to contribute to or has maintained, contributed to or had an
      obligation to contribute to at any time within the past seven years on behalf
      of
      participants who are or were employed by any Credit Party or ERISA
      Affiliate.

     

    "Proceeds"
      means
      "proceeds," as such term is defined in the Code, including (a) any and all
      proceeds of any insurance, indemnity, warranty or guaranty payable to any Credit
      Party from time to time with respect to any of the Collateral, (b) any and
      all payments (in any form whatsoever) made or due and payable to any Credit
      Party from time to time in connection with any requisition, confiscation,
      condemnation, seizure or forfeiture of all or any part of the Collateral by
      any
      Governmental Authority (or any Person acting under color of governmental
      authority), (c) any claim of any Credit Party against third parties
      (i) for past, present or future infringement of any Patent or Patent
      License, or (ii) for past, present or future infringement or dilution of
      any Copyright, Copyright License, Trademark or Trademark License, or for injury
      to the goodwill associated with any Trademark or Trademark License, (d) any
      recoveries by any Credit Party against third parties with respect to any
      litigation or dispute concerning any of the Collateral including claims arising
      out of the loss or nonconformity of, interference with the use of, defects
      in,
      or infringement of rights in, or damage to, Collateral, (e) all amounts
      collected on, or distributed on account of, other Collateral, including
      dividends, interest, distributions and Instruments with respect to Investment
      Property and pledged Stock, and (f) any and all other amounts, rights to
      payment or other property acquired upon the sale, lease, license, exchange
      or
      other disposition of Collateral and all rights arising out of
      Collateral.

     

    
      
        
        

      

      
        Annex
          A -
          21

        
          

        

      

      
        
        

      

    

    "Pro
      Forma Acquisition EBITDA"
      means
      (i) EBITDA attributable to each Permitted Acquisition (with such pro forma
      adjustments as are reasonably acceptable to Agent, as indicated by its written
      approval thereof, based upon data presented to Agent to its reasonable
      satisfaction) consummated during the one (1) year period preceding the date
      of
      determination calculated solely for a number of months immediately preceding
      the
      consummation of the applicable Permitted Acquisition, which number equals twelve
      (12) minus
      the
      number of months following the consummation of the applicable Permitted
      Acquisition for which financial statements of Holdings and its Subsidiaries
      have
      been delivered to Agent pursuant to Section 4.1 and (ii) for purposes of
      determining compliance with Section 6.1, EBITDA of the Target of any proposed
      Permitted Acquisition (adjusted with such pro forma adjustments as are
      reasonably acceptable to Agent based upon data presented to Agent to its
      reasonable satisfaction) calculated for the twelve (12) months immediately
      preceding the consummation of the proposed Permitted Acquisition.

     

    "Projections"
      means
      Holdings' and its Subsidiaries forecasted consolidated profit and loss
      statements, all consistent with the historical Financial Statements of the
      Credit Parties, together with appropriate supporting details and a statement
      of
      underlying assumptions.

     

    "Pro
      Rata Share"
      means
      with respect to all matters relating to any Lender, (a) with respect to the
      Revolving Loan, the percentage obtained by dividing (i) the Revolving Loan
      Commitment of that Lender by (ii) the aggregate Revolving Loan Commitments
      of all Lenders, (b) with respect to all Loans, the percentage obtained by
      dividing (i) the aggregate Commitments of that Lender by (ii) the
      aggregate Commitments of all Lenders, and (c) with respect to all Loans on
      and after the Commitment Termination Date, the percentage obtained by dividing
      (i) the aggregate outstanding principal balance of the Loans held by that
      Lender, by (ii) the outstanding principal balance of the Loans held by all
      Lenders.

     

    "Qualified
      Assignee"
      means
      (a) any Lender, any Affiliate of any Lender and, with respect to any Lender
      that is an investment fund that invests in commercial loans, any other
      investment fund that invests in commercial loans and that is managed or advised
      by the same investment advisor as such Lender or by an Affiliate of such
      investment advisor, and (b) any commercial bank, savings and loan
      association or savings bank or any other entity which is an "accredited
      investor" (as defined in Regulation D under the Securities Act of 1933) which
      extends credit or buys loans as one of its businesses, including insurance
      companies, mutual funds, lease financing companies and commercial finance
      companies, in each case, which has a rating of BBB or higher from S&P and a
      rating of Baa2 or higher from Moody's at the date that it becomes a Lender
      and
      which, through its applicable lending office, is capable of lending to Borrowers
      without the imposition of any withholding or similar taxes; provided,
      that no
      Person determined by Agent (or, so long as no Event of Default has occurred
      and
      is continuing, Borrowers) to be acting in the capacity of a vulture fund or
      distressed debt purchaser shall be a Qualified Assignee, and no Person or
      Affiliate of such Person (other than a Person that is already a Lender) holding
      Subordinated Debt or Stock issued by any Credit Party shall be a Qualified
      Assignee.

     

    
      
        
        

      

      
        Annex
          A -
          22

        
          

        

      

      
        
        

      

    

    "Qualified
      Plan"
      means a
      Pension Plan that is intended to be tax-qualified under Section 401(a) of
      the IRC.

     

    "Real
      Estate"
      has the
      meaning ascribed to it in Section 3.6.

     

    "Refinancing
      Offer"
      has the
      meaning ascribed to it in Section
      5.10.

     

    "Relationship
      Bank"
      has the
      meaning ascribed to it in Annex
      C.

     

    "Release"
      means
      any release, threatened release, spill, emission, leaking, pumping, pouring,
      emitting, emptying, escape, injection, deposit, disposal, discharge, dispersal,
      dumping, leaching or migration of Hazardous Material in the indoor or outdoor
      environment, including the movement of Hazardous Material through or in the
      air,
      soil, surface water, ground water or property.

     

    "Replacement
      Lender"
      has the
      meaning ascribed to it in Section
      1.16(d).

     

    "Requisite
      Lenders"
      means
      Lenders having (a) more than sixty-six and two-thirds percent
      (66 2/3%) of the Commitments of all Lenders, or (b) if the Commitments
      have been terminated, more than sixty-six and two-thirds percent (66 2/3%)
      of the aggregate outstanding amount of all Loans. 

     

    "Restricted
      Payment"
      means,
      with respect to any Credit Party (a) the declaration or payment of any
      dividend or the incurrence of any liability to make any other payment or
      distribution of cash or other property or assets in respect of Stock;
      (b) any payment on account of the purchase, redemption, defeasance, sinking
      fund or other retirement of such Credit Party's Stock or any other payment
      or
      distribution made in respect thereof, either directly or indirectly;
      (c) any payment or prepayment of principal of, premium, if any, or
      interest, fees or other charges on or with respect to, and any redemption,
      purchase, retirement, defeasance, sinking fund or similar payment and any claim
      for rescission with respect to, any Subordinated Debt; (d) any payment made
      to redeem, purchase, repurchase or retire, or to obtain the surrender of, any
      outstanding warrants, options or other rights to acquire Stock of such Credit
      Party now or hereafter outstanding; (e) any payment of a claim for the
      rescission of the purchase or sale of, or for material damages arising from
      the
      purchase or sale of, any shares of such Credit Party's Stock or of a claim
      for
      reimbursement, indemnification or contribution arising out of or related to
      any
      such claim for damages or rescission; (f) any payment, loan, contribution,
      or other transfer of funds or other property to any Stockholder of such Credit
      Party other than payment of compensation in the ordinary course of business
      to
      Stockholders who are employees of such Person; and (g) any payment of
      management fees (or other fees of a similar nature) by such Credit Party to
      any
      Stockholder of such Credit Party or its Affiliates.

     

    "Retiree
      Welfare Plan"
      means,
      at any time, a Welfare Plan that provides for continuing coverage or benefits
      for any participant or any beneficiary of a participant after such participant's
      termination of employment, other than continuation coverage provided pursuant
      to
      Section 4980B of the IRC and at the sole expense of the participant or the
      beneficiary of the participant.

     

    
      
        
        

      

      
        Annex
          A -
          23

        
          

        

      

      
        
        

      

    

    "Revolving
      Credit Advance"
      has the
      meaning ascribed to it in Section 1.1(a)(i).

     

    "Revolving
      Loan"
      means,
      at any time, the sum of (i) the aggregate amount of Revolving Credit
      Advances outstanding to Borrower plus
      (ii) the aggregate Letter of Credit Obligations incurred on behalf of
      Borrower. Unless the context otherwise requires, references to the outstanding
      principal balance of the Revolving Loan shall include the outstanding balance
      of
      Letter of Credit Obligations.

     

    "Revolving
      Loan Commitment"
      means
      (a) as to any Lender, the aggregate commitment of such Lender to make
      Revolving Credit Advances or incur Letter of Credit Obligations as set forth
      on
Annex I
      to the
      Agreement or in the most recent Assignment Agreement executed by such Lender,
      as
      such amount may be adjusted, if at all, from time to time in accordance with
      the
      Agreement and (b) as to all Lenders, the aggregate commitment of all
      Lenders to make Revolving Credit Advances or incur Letter of Credit Obligations,
      which aggregate commitment shall be $40,000,000 on the Closing Date, as such
      amount may be adjusted, if at all, from time to time in accordance with the
      Agreement.

     

    "Revolving
      Note"
      has the
      meaning ascribed to it in Section 1.1(a)(ii).

     

    "Security
      Agreement"
      means
      the Security Agreement dated as of May 14, 2004 entered into by and among Agent,
      on behalf of itself and Lenders, and each Credit Party that is a signatory
      thereto.

     

    "Senior
      Officer"
      means,
      with respect to any Person, the chairman of the board, the president, the chief
      executive officer, the chief operating officer, the general counsel, or any
      equivalent officer (regardless of his or her title), and, in respect of
      financial or accounting matters, the chief financial officer, the vice president
      of finance, the treasurer, or any equivalent officer (regardless of his or
      her
      title).

     

    "Settlement
      Date"
      has the
      meaning ascribed to it in Section 9.9(a)(ii).

     

    "Software"
      means
      all "software" as such term is defined in the Code, now owned or hereafter
      acquired by any Credit Party, other than software embedded in any category
      of
      Goods, including all computer programs and all supporting information provided
      in connection with a transaction related to any program.

     

    "Solvent"
      means,
      with respect to any Person on a particular date, that on such date (a) the
      fair value of the property of such Person is greater than the total amount
      of
      liabilities, including contingent liabilities, of such Person; (b) the
      present fair salable value of the assets of such Person is not less than the
      amount that will be required to pay the probable liability of such Person on
      its
      debts as they become absolute and matured; (c) such Person does not intend
      to, and does not believe that it will, incur debts or liabilities beyond such
      Person's ability to pay as such debts and liabilities mature; and (d) such
      Person is not engaged in a business or transaction, and is not about to engage
      in a business or transaction, for which such Person's property would constitute
      an unreasonably small capital. The amount of contingent liabilities (such as
      litigation, guaranties and pension plan liabilities) at any time shall be
      computed as the amount that, in light of all the facts and circumstances
      existing at the time, represents the amount that can be reasonably be expected
      to become an actual or matured liability.

     

    
      
        
        

      

      
        Annex
          A -
          24

        
          

        

      

      
        
        

      

    

    "Stock"
      means
      all shares, options, warrants, general or limited partnership interests,
      membership interests or other equivalents (regardless of how designated) of
      or
      in a corporation, partnership, limited liability company or equivalent entity
      whether voting or nonvoting, including common stock, preferred stock or any
      other "equity security" (as such term is defined in Rule 3a11-1 of the General
      Rules and Regulations promulgated by the Securities and Exchange Commission
      under the Securities Exchange Act of 1934).

     

    "Stockholder"
      means,
      with respect to any Person, each holder of Stock of such Person.

     

    "Subordinated
      Debt"
      means
      any Indebtedness of any Credit Party subordinated to the Obligations in a manner
      and form satisfactory to Agent in its reasonable discretion, as to right and
      time of payment and as to any other rights and remedies thereunder.

     

    "Subsidiary"
      means,
      with respect to any Person, (a) any corporation of which an aggregate of
      more than fifty percent (50%) of the outstanding Stock having ordinary voting
      power to elect a majority of the board of directors of such corporation
      (irrespective of whether, at the time, Stock of any other class or classes
      of
      such corporation shall have or might have voting power by reason of the
      happening of any contingency) is at the time, directly or indirectly, owned
      legally or beneficially by such Person or one or more Subsidiaries of such
      Person, or with respect to which any such Person has the right to vote or
      designate the vote of fifty percent (50%) or more of such Stock whether by
      proxy, agreement, operation of law or otherwise, and (b) any partnership or
      limited liability company in which such Person and/or one or more Subsidiaries
      of such Person shall have an interest (whether in the form of voting or
      participation in profits or capital contribution) of more than fifty percent
      (50%) or of which any such Person is a general partner or may exercise the
      powers of a general partner. Unless the context otherwise requires, each
      reference to a Subsidiary shall be a reference to a Subsidiary of a
      Borrower.

     

    "Supporting
      Obligations"
      means
      all "supporting obligations" as such term is defined in the Code, including
      letters of credit and guaranties issued in support of Accounts, Chattel Paper,
      Documents, General Intangibles, Instruments or Investment Property.

     

    "Target"
      has the
      meaning ascribed to it in Section
      6.1.

     

    
      
        
        

      

      
        Annex
          A -
          25

        
          

        

      

      
        
        

      

    

    "Taxes"
      means
      taxes, levies, imposts, deductions, Charges or withholdings, and all liabilities
      with respect thereto, excluding taxes imposed on or measured by the net income
      of Agent or a Lender by the jurisdictions under the laws of which Agent and
      Lenders are organized or conduct business or any political subdivision
      thereof.

     

    "Termination
      Date"
      means
      the date on which (a) the Loans have been indefeasibly repaid in full,
      (b) all other Obligations under the Agreement and the other Loan Documents
      have been completely discharged (c) all Letter of Credit Obligations have
      been cash collateralized, canceled or backed by standby letters of credit in
      accordance with Annex
      B,
      and
      (d) none of Borrowers shall have any further right to borrow any monies
      under the Agreement.

     

    "Threshold
      Acquisition"
      has the
      meaning ascribed to it in Section
      6.1.

     

    "Title
      IV Plan"
      means a
      Pension Plan (other than a Multiemployer Plan), that is subject to Title IV
      of
      ERISA or Section 412 of the IRC, and that any Credit Party or ERISA Affiliate
      maintains, contributes to or has an obligation to contribute to on behalf of
      participants who are or were employed by any of them.

     

    "Trademark
      Security Agreements"
      means
      the Trademark Security Agreements made in favor of Agent, on behalf of Lenders,
      by each applicable Credit Party.

     

    "Trademark
      License"
      means
      rights under any written agreement now owned or hereafter acquired by any Credit
      Party granting any right to use any Trademark.

     

    "Trademarks"
      means
      all of the following now owned or hereafter existing or adopted or acquired
      by
      any Credit Party: (a) all trademarks, trade names, corporate names,
      business names, trade styles, service marks, logos, other source or business
      identifiers, prints and labels on which any of the foregoing have appeared
      or
      appear, designs and general intangibles of like nature (whether registered
      or
      unregistered), all registrations and recordings thereof, and all applications
      in
      connection therewith, including registrations, recordings and applications
      in
      the United States Patent and Trademark Office or in any similar office or agency
      of the United States, any state or territory thereof, or any other country
      or
      any political subdivision thereof; (b) all reissues, extensions or renewals
      thereof; and (c) all goodwill associated with or symbolized by any of the
      foregoing.

     

    "Unfunded
      Pension Liability"
      means,
      at any time, the aggregate amount, if any, of the sum of (a) the amount by
      which the present value of all accrued benefits under each Title IV Plan exceeds
      the fair market value of all assets of such Title IV Plan allocable to such
      benefits in accordance with Title IV of ERISA, all determined as of the most
      recent valuation date for each such Title IV Plan using the actuarial
      assumptions for funding purposes in effect under such Title IV Plan, and
      (b) for a period of five years following a transaction which might
      reasonably be expected to be covered by Section 4069 of ERISA, the
      liabilities (whether or not accrued) that could be avoided by any Credit Party
      or any ERISA Affiliate as a result of such transaction.

     

    
      
        
        

      

      
        Annex
          A -
          26

        
          

        

      

      
        
        

      

    

    "Welfare
      Plan"
      means a
      Plan described in Section 3(1) of ERISA.

     

    Rules
      of
      construction with respect to accounting terms used in the Agreement or the
      other
      Loan Documents shall be as set forth in Annex
      F.
      All
      other undefined terms contained in any of the Loan Documents shall, unless
      the
      context indicates otherwise, have the meanings provided for by the Code to
      the
      extent the same are used or defined therein; in the event that any term is
      defined differently in different Articles or Divisions of the Code, the
      definition contained in Article or Division 9 shall control. Unless otherwise
      specified, references in the Agreement or any of the Appendices to a Section,
      subsection or clause refer to such Section, subsection or clause as contained
      in
      the Agreement. The words "herein," "hereof" and "hereunder" and other words
      of
      similar import refer to the Agreement as a whole, including all Annexes,
      Exhibits and Schedules, as the same may from time to time be amended, restated,
      modified or supplemented, and not to any particular section, subsection or
      clause contained in the Agreement or any such Annex, Exhibit or
      Schedule.

     

    Wherever
      from the context it appears appropriate, each term stated in either the singular
      or plural shall include the singular and the plural, and pronouns stated in
      the
      masculine, feminine or neuter gender shall include the masculine, feminine
      and
      neuter genders. The words "including", "includes" and "include" shall be deemed
      to be followed by the words "without limitation"; the word "or" is not
      exclusive; references to Persons include their respective successors and assigns
      (to the extent and only to the extent permitted by the Loan Documents) or,
      in
      the case of governmental Persons, Persons succeeding to the relevant functions
      of such Persons; and all references to statutes and related regulations shall
      include any amendments of the same and any successor statutes and regulations.
      Whenever any provision in any Loan Document refers to the knowledge (or an
      analogous phrase) of any Credit Party, such words are intended to signify that
      such Credit Party has actual knowledge or awareness of a particular fact or
      circumstance or that such Credit Party, if it had exercised reasonable
      diligence, would have known or been aware of such fact or
      circumstance.

     

    
      
        
        

      

      
        Annex
          A -
          27

        
          

        

      

      
        
        

      

    

    ANNEX
      B (Section 1.2)

     

    to

     

    AMENDED
      AND RESTATED CREDIT AGREEMENT

     

    LETTERS
      OF CREDIT

     

    

    (a) Issuance.
      Subject
      to the terms and conditions of the Agreement, Agent and Lenders agree to incur,
      from time to time prior to the Commitment Termination Date, upon the request
      of
      any Borrower, Letter of Credit Obligations by causing Letters of Credit to
      be
      issued by GE Capital or a Subsidiary thereof or a bank or other legally
      authorized Person selected by or acceptable to Agent in its sole discretion
      (each, an "L/C Issuer") for Borrowers' account on behalf of a Credit Party
      and
      guaranteed by Agent; provided,
      that if
      the L/C Issuer is a Lender, then such Letters of Credit shall not be guaranteed
      by Agent but rather each Lender shall, subject to the terms and conditions
      hereinafter set forth, purchase (or be deemed to have purchased) risk
      participations in all such Letters of Credit issued with the written consent
      of
      Agent, as more fully described in paragraph (b)(ii)
      below.
      The aggregate amount of all such Letter of Credit Obligations shall not at
      any
      time exceed the lesser of (i) $10,000,000 (the "L/C Sublimit") and (ii) the
      Maximum Amount less the aggregate outstanding principal balance of the Revolving
      Credit Advances. No such Letter of Credit shall have an expiry date that is
      more
      than one year following the date of issuance thereof, unless otherwise
      determined by the Agent, in its sole discretion, and neither Agent nor Lenders
      shall be under any obligation to incur Letter of Credit Obligations in respect
      of, or purchase risk participations in, any Letter of Credit having an expiry
      date that is later than five (5) Business Days prior to the Commitment
      Termination Date; provided, that any Letter of Credit may provide for a renewal
      thereof for additional one (1) year periods (which shall in no event extend
      beyond the date which is five (5) Business Days prior to the Commitment
      Termination Date).

     

    (b) Advances
      Automatic; Participations.

     

    (i) In
      the
      event that Agent or any Lender shall make any payment on or pursuant to any
      Letter of Credit Obligation, such payment shall then be deemed automatically
      to
      constitute a Revolving Credit Advance under Section 1.1(a)
      of the
      Agreement regardless of whether a Default or Event of Default has occurred
      and
      is continuing and notwithstanding any Borrower's failure to satisfy the
      conditions precedent set forth in Section 2,
      and each
      Lender shall be obligated to pay its Pro Rata Share thereof in accordance with
      the Agreement. The failure of any Lender to make available to Agent for Agent's
      own account its Pro Rata Share of any such Revolving Credit Advance or payment
      by Agent under or in respect of a Letter of Credit shall not relieve any other
      Lender of its obligation hereunder to make available to Agent its Pro Rata
      Share
      thereof, but no Lender shall be responsible for the failure of any other Lender
      to make available such other Lender's Pro Rata Share of any such
      payment.

     

    
      
        
        

      

      
        Annex
          B -
          1

        
          

        

      

      
        
        

      

    

    (ii) If
      it
      shall be illegal or unlawful for any Borrower to incur Revolving Credit Advances
      as contemplated by paragraph (b)(i)
      above
      because of an Event of Default described in Sections 8.1(h)
      or
(i)
      or
      otherwise or if it shall be illegal or unlawful for any Lender to be deemed
      to
      have assumed a ratable share of the reimbursement obligations owed to an L/C
      Issuer, or if the L/C Issuer is a Lender, then (A) immediately and without
      further action whatsoever, each Lender shall be deemed to have irrevocably
      and
      unconditionally purchased from Agent (or such L/C Issuer, as the case may be)
      an
      undivided interest and participation equal to such Lender's Pro Rata Share
      (based on the Revolving Loan Commitments) of the Letter of Credit Obligations
      in
      respect of all Letters of Credit then outstanding and (B) thereafter,
      immediately upon issuance of any Letter of Credit, each Lender shall be deemed
      to have irrevocably and unconditionally purchased from Agent (or such L/C
      Issuer, as the case may be) an undivided interest and participation in such
      Lender's Pro Rata Share (based on the Revolving Loan Commitments) of the Letter
      of Credit Obligations with respect to such Letter of Credit on the date of
      such
      issuance. Each Lender shall fund its participation in all payments or
      disbursements made under the Letters of Credit in the same manner as provided
      in
      the Agreement with respect to Revolving Credit Advances.

     

    (c) Cash
      Collateral.

     

    (i) If
      Borrowers are required to provide cash collateral for any Letter of Credit
      Obligations pursuant to the Agreement prior to the Commitment Termination Date,
      Borrowers will pay to Agent for the ratable benefit of itself and Lenders cash
      or cash equivalents acceptable to Agent ("Cash Equivalents") in an amount equal
      to one hundred five percent (105%) of the maximum amount then available to
      be
      drawn under each applicable Letter of Credit outstanding for the benefit of
      Borrowers. Such funds or Cash Equivalents shall be held by Agent in a cash
      collateral account (the "Cash Collateral Account") maintained at a bank or
      financial institution acceptable to Agent. The Cash Collateral Account shall
      be
      in the name of Borrowers and shall be pledged to, and subject to the control
      of,
      Agent, for the benefit of Agent and Lenders, in a manner satisfactory to Agent.
      Each Borrower hereby pledges and grants to Agent, on behalf of itself and
      Lenders, a security interest in all such funds and Cash Equivalents held in
      the
      Cash Collateral Account from time to time and all proceeds thereof, as security
      for the payment of all amounts due in respect of the Letter of Credit
      Obligations and other Obligations, whether or not then due. The Agreement,
      including this Annex
      B,
      shall
      constitute a security agreement under applicable law. 

     

    (ii) If
      any
      Letter of Credit Obligations, whether or not then due and payable, shall for
      any
      reason be outstanding on the Commitment Termination Date, Borrowers shall either
      (A) provide cash collateral therefor in the manner described above, or
      (B) cause all such Letters of Credit and guaranties thereof, if any, to be
      canceled and returned, or (C) deliver a stand-by letter (or letters) of
      credit in guaranty of such Letter of Credit Obligations, which stand-by letter
      (or letters) of credit shall be of like tenor and duration (plus 30 additional
      days) as, and in an amount equal to one hundred five percent (105%) of, the
      aggregate maximum amount then available to be drawn under, the Letters of Credit
      to which such outstanding Letter of Credit Obligations relate and shall be
      issued by a Person, and shall be subject to such terms and conditions, as are
      satisfactory to Agent in its reasonable discretion.

     

    
      
        
        

      

      
        Annex
          B -
          2

        
          

        

      

      
        
        

      

    

    (iii) From
      time
      to time after funds are deposited in the Cash Collateral Account by any
      Borrower, whether before or after the Commitment Termination Date, Agent may
      apply such funds or Cash Equivalents then held in the Cash Collateral Account
      to
      the payment of any amounts, and in such order as Agent may elect, as shall
      be or
      shall become due and payable by such Borrower to Agent and Lenders with respect
      to such Letter of Credit Obligations of such Borrower and, upon the satisfaction
      in full of all Letter of Credit Obligations of such Borrower, to any other
      Obligations of any Borrower then due and payable.

     

    (iv) No
      Borrower nor any Person claiming on behalf of or through any Borrower shall
      have
      any right to withdraw any of the funds or Cash Equivalents held in the Cash
      Collateral Account, except that upon the termination of all Letter of Credit
      Obligations and the payment of all amounts payable by Borrowers to Agent and
      Lenders in respect thereof, any funds remaining in the Cash Collateral Account
      shall be applied to other Obligations then due and owing and upon payment in
      full of such Obligations, any remaining amount shall be paid to Borrowers or
      as
      otherwise required by law. Interest earned on deposits in the Cash Collateral
      Account shall be for the account of Borrowers.

     

    (d) Fees
      and Expenses.
      Borrowers agree to pay to Agent for the benefit of Lenders, as compensation
      to
      such Lenders for Letter of Credit Obligations incurred hereunder, (i) all
      costs and expenses incurred by Agent or any Lender on account of such Letter
      of
      Credit Obligations, and (ii) for each month during which any Letter of
      Credit Obligation shall remain outstanding, a fee (the "Letter of Credit Fee")
      in an amount equal to the Applicable Revolver LIBOR Margin. Such fee shall
      be
      paid to Agent for the benefit of the Lenders in arrears, on the first day of
      each month and on the Commitment Termination Date. In addition, Borrowers shall
      pay to any L/C Issuer, on demand, such fees (excluding all per annum fees),
      charges and expenses of such L/C Issuer in respect of the issuance, negotiation,
      acceptance, amendment, transfer and payment of such Letter of Credit or
      otherwise payable pursuant to the application and related documentation under
      which such Letter of Credit is issued.

     

    (e) Request
      for Incurrence of Letter of Credit Obligations.
      Borrowers shall give Agent at least 2 Business Days' prior written notice
      requesting the incurrence of any Letter of Credit Obligation. The notice shall
      be accompanied by the form of the Letter of Credit (which shall be acceptable
      to
      the L/C Issuer) and a completed application for standby Letter of Credit or
      application and agreement for documentary Letter of Credit or application for
      documentary Letter of Credit (as applicable), each to be in form and substance
      satisfactory to Agent, in its reasonable discretion. Notwithstanding anything
      contained herein to the contrary, Letter of Credit applications by Borrowers
      and
      approvals by Agent and the L/C Issuer may be made and transmitted pursuant
      to
      electronic codes and security measures mutually agreed upon and established
      by
      and among Borrowers, Agent and the L/C Issuer. 

     

    
      
        
        

      

      
        Annex
          B -
          3

        
          

        

      

      
        
        

      

    

    (f) Obligation
      Absolute.
      The
      obligation of Borrowers to reimburse Agent and Lenders for payments made with
      respect to any Letter of Credit Obligation shall be absolute, unconditional
      and
      irrevocable, without necessity of presentment, demand, protest or other
      formalities, and the obligations of each Lender to make payments to Agent with
      respect to Letters of Credit shall be unconditional and irrevocable. Such
      obligations of Borrowers and Lenders shall be paid strictly in accordance with
      the terms hereof under all circumstances including the following:

     

    (i) any
      lack
      of validity or enforceability of any Letter of Credit or the Agreement or the
      other Loan Documents or any other agreement;

     

    (ii) the
      existence of any claim, setoff, defense or other right that any Borrower or
      any
      of their respective Affiliates or any Lender may at any time have against a
      beneficiary or any transferee of any Letter of Credit (or any Persons or
      entities for whom any such transferee may be acting), Agent, any Lender, or
      any
      other Person, whether in connection with the Agreement, the Letter of Credit,
      the transactions contemplated herein or therein or any unrelated transaction
      (including any underlying transaction between any Borrower or any of their
      respective Affiliates and the beneficiary for which the Letter of Credit was
      procured);

     

    (iii) any
      draft,
      demand, certificate or any other document presented under any Letter of Credit
      proving to be forged, fraudulent, invalid or insufficient in any respect or
      any
      statement therein being untrue or inaccurate in any respect;

     

    (iv) payment
      by
      Agent (except as otherwise expressly provided in paragraph (g)(ii)(C)
      below) or
      any L/C Issuer under any Letter of Credit or guaranty thereof against
      presentation of a demand, draft or certificate or other document that does
      not
      comply with the terms of such Letter of Credit or such guaranty;

     

    (v) any
      other
      circumstance or event whatsoever, that is similar to any of the foregoing;
      or

     

    (vi) the
      fact
      that a Default or an Event of Default has occurred
      and is continuing.

     

    (g) Indemnification;
      Nature of Lenders' Duties.

     

    (i) In
      addition to amounts payable as elsewhere provided in the Agreement, Borrowers
      hereby agree to pay and to protect, indemnify, and save harmless Agent and
      each
      Lender from and against any and all claims, demands, liabilities, damages,
      losses, costs, charges and expenses (including reasonable attorneys' fees and
      allocated costs of internal counsel) that Agent or any Lender may incur or
      be
      subject to as a consequence, direct or indirect, of (A) the issuance of any
      Letter of Credit or guaranty thereof, or (B) the failure of Agent or any
      Lender seeking indemnification or of any L/C Issuer to honor a demand for
      payment under any Letter of Credit or guaranty thereof as a result of any act
      or
      omission, whether rightful or wrongful, of any present or future de jure or
      de
      facto government or Governmental Authority, in each case other than to the
      extent solely as a result of the bad faith, gross negligence or willful
      misconduct of Agent or such Lender (as finally determined by a court of
      competent jurisdiction).

     

    
      
        
        

      

      
        Annex
          B -
          4

        
          

        

      

      
        
        

      

    

    (ii) As
      between
      Agent and any Lender and Borrowers, Borrowers assume all risks of the acts
      and
      omissions of, or misuse of any Letter of Credit by beneficiaries, of any Letter
      of Credit. In furtherance and not in limitation of the foregoing, to the fullest
      extent permitted by law, neither Agent nor any Lender shall be responsible
      for:
      (A) the form, validity, sufficiency, accuracy, genuineness or legal effect
      of any document issued by any party in connection with the application for
      and
      issuance of any Letter of Credit, even if it should in fact prove to be in
      any
      or all respects invalid, insufficient, inaccurate, fraudulent or forged;
      (B) the validity or sufficiency of any instrument transferring or assigning
      or purporting to transfer or assign any Letter of Credit or the rights or
      benefits thereunder or proceeds thereof, in whole or in part, that may prove
      to
      be invalid or ineffective for any reason; (C) failure of the beneficiary of
      any Letter of Credit to comply fully with conditions required in order to demand
      payment under such Letter of Credit; provided,
      that in
      the case of any payment by Agent under any Letter of Credit or guaranty thereof,
      Agent shall be liable to the extent such payment was made solely as a result
      of
      its bad faith, gross negligence or willful misconduct (as finally determined
      by
      a court of competent jurisdiction) in determining that the demand for payment
      under such Letter of Credit or guaranty thereof complies on its face with any
      applicable requirements for a demand for payment under such Letter of Credit
      or
      guaranty thereof; (D) errors, omissions, interruptions or delays in
      transmission or delivery of any messages, by mail, cable, telegraph, telex
      or
      otherwise, whether or not they may be in cipher; (E) errors in
      interpretation of technical terms; (F) any loss or delay in the
      transmission or otherwise of any document required in order to make a payment
      under any Letter of Credit or guaranty thereof or of the proceeds thereof;
      (G) the credit of the proceeds of any drawing under any Letter of Credit or
      guaranty thereof; and (H) any consequences arising from causes beyond the
      control of Agent or any Lender. None of the above shall affect, impair, or
      prevent the vesting of any of Agent's or any Lender's rights or powers hereunder
      or under the Agreement.

     

    (iii) Nothing
      contained herein shall be deemed to limit or to expand any waivers, covenants
      or
      indemnities made by Borrowers in favor of any L/C Issuer in any letter of credit
      application, reimbursement agreement or similar document, instrument or
      agreement between or among Borrowers and such L/C Issuer.

     

    

    
      
        
        

      

      
        Annex
          B -
          5

        
          

        

      

      
        
        

      

    

    ANNEX
      C (Section 1.8)

     

    to

     

    AMENDED
      AND RESTATED CREDIT AGREEMENT

     

    CASH
      MANAGEMENT SYSTEMS

     

    Borrowers
      shall, and shall cause their respective Subsidiaries to, establish and maintain
      the Cash Management Systems described below:

     

    (a) Borrowers
      may maintain, in their names, one or more accounts (each a "Disbursement
      Account" and collectively, the "Disbursement Accounts") at a bank reasonably
      acceptable to Agent into which (i) Agent shall, from time to time, deposit
      proceeds of Revolving Credit Advances made to Borrowers and (ii) proceeds
      of any checks, cash or other items of payment received by any Borrower shall
      be
      deposited.

     

    (b) On
      or
      before the date of the making of the initial Revolving Credit Advance or the
      incurrence of the initial Letter of Credit Obligations, each bank where a
      Disbursement Account is maintained and all other banks identified in
Disclosure
      Schedule 3.19
      (each, a
      "Relationship Bank") shall have entered into tri-party deposit account control
      agreements with Agent, for the benefit of itself and Lenders, and Borrowers
      and
      the applicable Subsidiaries thereof, as applicable, in form and substance
      reasonably acceptable to Agent, which shall become operative on or prior to
      the
      date of the making of the initial Revolving Credit Advance or the incurrence
      of
      the initial Letter of Credit Obligations. Each such deposit account control
      agreement shall provide, among other things, that (i) the bank executing
      such agreement has no rights of setoff or recoupment or any other claim against
      such account, as the case may be, other than for payment of its service fees
      and
      other charges directly related to the administration of such account and for
      returned checks or other items of payment and as may otherwise be agreed to
      by
      Agent and (ii) the bank party thereto shall agree to comply with Agent's
      instructions directing disposition of funds on deposit without further consent
      of any Borrower or the applicable Subsidiary (as applicable). Agent hereby
      agrees with each Credit Party that (A) Agent shall not deliver to any bank
      described above any notice directing disposition of funds on deposit unless
      and
      until the occurrence and continuance of an Event of Default and (B) promptly
      upon the cure or waiver of the Event of Default that gave rise to the notice
      in
      the preceding clause (A), so long as no other Event of Default has occurred
      and
      is continuing at such time, Agent shall deliver written notice to the applicable
      bank described above notifying such bank that the funds on deposit shall
      thereafter be disposed of as directed by the Credit Parties; provided,
      that in
      the event the applicable bank refuses to dispose of funds on deposit as directed
      by the Credit Parties after receipt of such written notice, the Agent agrees
      to
      terminate the applicable tri-party deposit account control agreement with such
      bank so long as prior to such termination such bank has executed and delivered
      to Agent a replacement tri-party deposit account control agreement, in form
      and
      substance described above.

     

    
      
        
        

      

      
        Annex
          C -
          1

        
          

        

      

      
        
        

      

    

    (c) So
      long as
      no Event of Default has occurred and is continuing, any Borrower may amend
      Disclosure
      Schedule 3.19
      to add or
      replace a Relationship Bank or replace any Disbursement Account; provided,
      that
      (i) Agent shall have consented in writing in advance to the opening of such
      account with the relevant bank and (ii) prior to the time of the opening of
      such account, Borrowers or their Subsidiaries, as applicable, and such bank
      shall have executed and delivered to Agent a tri-party deposit account control
      agreement, in the form and substance described above. Borrowers or their
      applicable Subsidiaries shall close any of their accounts (and establish
      replacement accounts in accordance with the foregoing sentence) promptly and
      in
      any event within 30 days following written notice from Agent that the
      creditworthiness of any bank holding an account is no longer acceptable in
      Agent's reasonable judgment, or as promptly as practicable and in any event
      within 60 days following written notice from Agent that the operating
      performance, funds transfer or availability procedures or performance with
      respect to accounts of the bank holding such accounts or Agent's liability
      under
      any tri-party deposit account control agreement with such bank is no longer
      acceptable in Agent's reasonable judgment.

     

    (d) Following
      the occurrence and during the continuance of an Event of Default, at the request
      of Agent or Requisite Lenders Borrowers shall (i) establish lock boxes
      ("Lock Boxes") and/or blocked accounts ("Blocked Accounts") at one or more
      of
      the banks set forth in Disclosure
      Schedule 3.19,
      and
      shall request in writing and otherwise take such reasonable steps to ensure
      that
      all Account Debtors forward payment directly to such Lock Boxes,
      (ii) deposit and cause their Subsidiaries to deposit or cause to be
      deposited promptly, and in any event no later than the first Business Day after
      the date of receipt thereof, all cash, checks, drafts or other similar items
      of
      payment relating to or constituting payments made in respect of any and all
      Collateral (whether or not otherwise delivered to a Lock Box) into one or more
      Blocked Accounts in such Borrower's name or any such Subsidiary's name and
      at a
      Relationship Bank and (iii) deliver to each Relationship Bank instructions,
      revocable only upon Agent's express written authorization, directing each
      Relationship Bank to immediately forward all amounts on deposit to the
      Collection Account through daily sweeps from such accounts into the Collection
      Account.

     

    (e) The
      Disbursement Accounts, each account maintained with a Relationship Bank and
      the
      Lock Boxes and Blocked Accounts (if any) shall be cash collateral accounts,
      with
      all cash, checks and other similar items of payment in such accounts securing
      payment of the Loans and all other Obligations, and in which each Borrower
      and
      each Subsidiary thereof shall have granted a Lien to Agent, on behalf of itself
      and Lenders, pursuant to the Security Agreement.

     

    (f) All
      amounts deposited in the Collection Account shall be deemed received by Agent
      in
      accordance with Section 1.10
      and shall
      be applied (and allocated) by Agent in accordance with Section 1.11.
      In no
      event shall any amount be so applied unless and until such amount shall have
      been credited in immediately available funds to the Collection
      Account.

     

    
      
        
        

      

      
        Annex
          C -
          2

        
          

        

      

      
        
        

      

    

    (g) Each
      Borrower shall and shall cause its officers, employees, or other Persons acting
      for or in concert with such Borrower (each a "Related Person") to (i) at
      any time after the Agent or Requisite Lenders make the request referred to
      in
      paragraph (d) of this Annex
      C
      and
      during the continuance of an Event of Default, hold in trust for Agent, for
      the
      benefit of itself and Lenders, all checks, cash and other items of payment
      received by any Borrower or any such Related Person and (ii) within
      1 Business Day after receipt by such Borrower or any such Related Person of
      any checks, cash or other items of payment, deposit the same into a deposit
      account subject to a deposit account control agreement described herein. Each
      Borrower and each Related Person thereof acknowledges and agrees that all cash,
      checks or other items of payment constituting proceeds of Collateral are part
      of
      the Collateral. All proceeds of the sale or other disposition of any Collateral,
      shall be deposited directly into a deposit account subject to a deposit account
      control agreement described herein.

    
      
        
        

      

      
        Annex
          C -
          3

        
          

        

      

      
        
        

      

    

    ANNEX
      D (Section 2.1(a))

     

    to

     

    AMENDED
      AND RESTATED CREDIT AGREEMENT

     

    CLOSING
      CHECKLIST

     

    

    In
      addition to, and not in limitation of, the conditions described in Section 2.1
      of the
      Agreement, pursuant to Section 2.1(a),
      the
      following items must be received by Agent in form and substance satisfactory
      to
      Agent on or prior to the Closing Date, except with respect to the items
      specified in paragraph E(b), which items must be received by Agent in form
      and
      substance satisfactory to Agent on or prior to the making of the initial
      Revolving Credit Advance or the incurrence of the initial Letter of Credit
      Obligations (each capitalized term used but not otherwise defined herein shall
      have the meaning ascribed thereto in Annex
      A
      to the
      Agreement):

     

    A. Appendices.
      All
      Appendices to the Agreement, in form and substance satisfactory to
      Agent.

     

    B. Revolving
      Notes.
      Duly
      executed originals of the Revolving Notes for each applicable Lender, dated
      the
      Closing Date.

     

    C. Insurance.
      Satisfactory evidence that the insurance policies required by Section 5.4
      are in
      full force and effect, together with appropriate evidence showing loss payable
      and/or additional insured clauses or endorsements, as requested by Agent, in
      favor of Agent, on behalf of Lenders.

     

    D. Security
      Interests and Code Filings.
      Evidence
      satisfactory to Agent that Agent (for the benefit of itself and Lenders) has
      a
      valid and perfected first priority security interest in the Collateral, subject
      only to Permitted Encumbrances, including (i) such documents duly executed
      by each Credit Party as Agent may request in order to perfect its security
      interests in the Collateral and (ii) copies of Code search reports listing
      all effective financing statements that name any Credit Party as debtor,
      together with copies of such financing statements, none of which shall cover
      the
      Collateral.

     

    E. Cash
      Management System; Blocked Account Agreements.
      Evidence
      satisfactory to Agent that Cash Management Systems complying with Annex
      C
      to the
      Agreement have been established and are currently being maintained in the manner
      set forth in such Annex
      C,
      together
      with copies of duly executed deposit account control agreements, reasonably
      satisfactory to Agent, with each bank where a Disbursement Account is maintained
      as required by Annex
      C.

     

    F. Charter
      and Good Standing.
      For each
      Borrower and Guarantor, such Person's (a) charter and all amendments
      thereto, (b) good standing certificates (including verification of tax
      status) in its state of incorporation and (c) good standing certificates
      (including verification of tax status) and certificates of qualification to
      conduct business in each jurisdiction where its ownership or lease of property
      or the conduct of its business requires such qualification, each dated a recent
      date prior to the Closing Date and certified by the applicable Secretary of
      State or other authorized Governmental Authority.

     

    
      
        
        

      

      
        Annex
          D -
          1

        
          

        

      

      
        
        

      

    

    G. Bylaws
      and Resolutions.
      For each
      Borrower and Guarantor, (a) such Person's bylaws (or analogous governing
      agreement), together with all amendments thereto and (b) resolutions of
      such Person's Board of Directors (or analogous governing board), approving
      and
      authorizing the execution, delivery and performance of the Loan Documents to
      which such Person is a party and the transactions to be consummated in
      connection therewith, each certified as of the Closing Date by such Person's
      corporate secretary or an assistant secretary as being in full force and effect
      without any modification or amendment.

     

    H. Incumbency
      Certificates.
      For each
      Borrower and Guarantor, signature and incumbency certificates of the officers
      of
      each such Person executing any of the Loan Documents, certified as of the
      Closing Date by such Person's corporate secretary or an assistant secretary
      as
      being true, accurate, correct and complete.

     

    I. Opinions
      of Counsel.
      Duly
      executed originals of opinions of Vinson & Elkins, counsel for the Credit
      Parties, together with local counsel opinions of the Credit Parties' Florida
      local counsel, each in form and substance reasonably satisfactory to Agent
      and
      its counsel, dated the Closing Date.

     

    J. OpCoB
      Pledge Agreement.
      Duly
      executed originals of the OpCoB Pledge Agreement accompanied by (as applicable)
      (a) share certificates representing all of the outstanding certificated
      Stock being pledged pursuant to the OpCoB Pledge Agreement and stock powers
      for
      such share certificates executed in blank and (b) the original instruments
      evidencing Indebtedness, if any, being pledged pursuant to the OpCoB Pledge
      Agreement, duly endorsed in blank.

     

    K. Accountants'
      Letters.
      A letter
      from the Credit Parties to their independent auditors authorizing the
      independent certified public accountants of the Credit Parties to communicate
      with Agent and Lenders in accordance with Section 4.2.

     

    L. Fee
      Letter.
      Duly
      executed originals of the GE Capital Fee Letter.

     

    M. Officer's
      Certificate.
      Agent
      shall have received duly executed originals of a certificate of the chief
      financial officer of each Borrower, in his or her capacity as an officer but
      not
      individually, dated the Closing Date, stating that, since December 31, 2006
      (a) no event or condition has occurred or is existing which could
      reasonably be expected to have a Material Adverse Effect; (b) no Litigation
      has been commenced which, if successful, could reasonably be expected to have
      a
      Material Adverse Effect or could challenge any of the transactions contemplated
      by the Agreement and the other Loan Documents; and (c) there has been no
      material increase in liabilities, liquidated or contingent, and no material
      decrease in assets of any Borrower or any of its Subsidiaries. 

     

    
      
        
        

      

      
        Annex
          D -
          2

        
          

        

      

      
        
        

      

    

    N. Audited
      Financials; Financial Condition.
      Agent
      shall have received the Financial Statements, Projections and other materials
      set forth in Section 3.4,
      certified by Holdings' chief financial officer, in each case in form and
      substance reasonably satisfactory to Agent, and Agent shall be satisfied, in
      its
      sole discretion, with all of the foregoing. 

     

    O. Reaffirmation.
      Agent
      shall have received duly executed originals of a Consent and Reaffirmation
      of
      Guaranty dated the Closing Date executed by each Guarantor. 

     

    P. Other
      Documents.
      Such
      other certificates, documents and agreements respecting any Credit Party as
      Agent may reasonably request.

     

    
      
        
        

      

      
        Annex
          D -
          3

        
          

        

      

      
        
        

      

    

    ANNEX
      E (Section 4.1(a))

     

    to

     

    AMENDED
      AND RESTATED CREDIT AGREEMENT

     

    FINANCIAL
      STATEMENTS AND PROJECTIONS—REPORTING

     

    

    Borrowers
      shall deliver or cause to be delivered to Agent or to Agent and Lenders, as
      indicated, the following:

     

    (a) Quarterly
      Financials.
      To Agent
      and Lenders, within 45 days after the end of each Fiscal Quarter, consolidated
      financial information regarding Holdings and its Subsidiaries, certified by
      the
      chief financial officer of Holdings, including (i) unaudited balance sheets
      as of the close of such Fiscal Quarter and the related statements of income
      and
      cash flow for that portion of the Fiscal Year ending as of the close of such
      Fiscal Quarter and (ii) unaudited statements of income and cash flows for
      such Fiscal Quarter, in each case setting forth in comparative form the figures
      for the corresponding period in the prior year, all prepared in accordance
      with
      GAAP (subject to normal year-end adjustments). Such financial information shall
      be accompanied by (A) a statement in reasonable detail (each, a "Compliance
      Certificate") showing the calculations used in determining compliance with
      each
      of the Financial Covenants that is tested on a quarterly basis and (B) the
      certification of the chief financial officer of Holdings that (i) such
      financial information presents fairly in accordance with GAAP (subject to normal
      year-end adjustments) the financial position, results of operations and
      statements of cash flows of Holdings and its Subsidiaries, on both a
      consolidated basis, as at the end of such Fiscal Quarter and for that portion
      of
      the Fiscal Year then ended, and (ii) any other information presented is
      true, correct and complete in all material respects and that there was no
      Default or Event of Default in existence as of such time or, if a Default or
      Event of Default has occurred and is continuing, describing the nature thereof
      and all efforts undertaken to cure such Default or Event of Default.

     

    (b) Operating
      Plan.
      To Agent
      and Lenders, as soon as available, but not later than 45 days after the end
      of
      each Fiscal Year, an annual operating plan for Borrowers, on a consolidated
      basis, approved by the Board of Directors of Borrowers, for the following Fiscal
      Year, which (i) includes a statement of all of the material assumptions on
      which such plan is based, (ii) includes monthly balance sheets, income
      statements and statements of cash flows for the following year and
      (iii) integrates sales, gross profits, operating expenses, operating profit
      and cash flow projections, all prepared on the same basis and in similar detail
      as that on which operating results are reported (and in the case of cash flow
      projections, representing management's good faith estimates of future financial
      performance based on historical performance), and including plans for personnel,
      Capital Expenditures and facilities.

     

    (c) Annual
      Audited Financials.
      To Agent
      and Lenders, within 120 days after the end of each Fiscal Year, audited
      Financial Statements for Holdings and its Subsidiaries on a consolidated basis,
      consisting of balance sheets and statements of income and retained earnings
      and
      cash flows, setting forth in comparative form in each case the figures for
      the
      previous Fiscal Year, which Financial Statements shall be prepared in accordance
      with GAAP and certified without qualification, by an independent certified
      public accounting firm of national standing or otherwise acceptable to Agent.
      Such Financial Statements shall be accompanied by (i) a statement prepared
      in reasonable detail showing the calculations used in determining compliance
      with each of the Financial Covenants as of the end of such Fiscal Year,
      (ii) the annual letters to such accountants in connection with their audit
      examination detailing contingent liabilities and material litigation matters,
      and (iii) the certification of the chief executive officer or chief
      financial officer of Borrowers that all such Financial Statements present fairly
      in accordance with GAAP the financial position, results of operations and
      statements of cash flows of Holdings and its Subsidiaries on a consolidated
      basis, as at the end of such Fiscal Year and for the period then ended, and
      that
      there was no Default or Event of Default in existence as of such time or, if
      a
      Default or Event of Default has occurred and is continuing, describing the
      nature thereof and all efforts undertaken to cure such Default or Event of
      Default.

     

    
      
        
        

      

      
        Annex
          E -
          1

        
          

        

      

      
        
        

      

    

    (d) Management
      Letters.
      To Agent
      and Lenders, within 5 Business Days after receipt thereof by any Credit Party,
      copies of all management letters, exception reports or similar letters or
      reports received by such Credit Party from its independent certified public
      accountants.

     

    (e) Default
      Notices.
      To Agent
      and Lenders, as soon as practicable, and in any event within 5 Business Days
      after an executive officer of any Borrower has actual knowledge of the existence
      of any Default, Event of Default or other event that has had a Material Adverse
      Effect, telephonic or telecopied notice specifying the nature of such Default
      or
      Event of Default or other event, including the anticipated effect thereof,
      which
      notice, if given telephonically, shall be promptly confirmed in writing on
      the
      next Business Day.

     

    (f) SEC
      Filings and Press Releases.
      To Agent
      and Lenders, promptly upon their becoming available, copies of: (i) all
      Financial Statements, reports, notices and proxy statements made publicly
      available by any Credit Party to its security holders; (ii) all regular and
      periodic reports and all registration statements and prospectuses, if any,
      filed
      by any Credit Party with any securities exchange or with the Securities and
      Exchange Commission or any governmental or private regulatory authority; and
      (iii) all press releases and other statements made available by any Credit
      Party to the public concerning material changes or developments in the business
      of any such Person.

     

    (g) Subordinated
      Debt and Equity Notices.
      To
      Agent, as soon as practicable, copies of all material written notices given
      or
      received by any Credit Party with respect to any Subordinated Debt or Stock
      of
      such Person, and, within 2 Business Days after any Credit Party obtains
      knowledge of any matured event of default with respect to any Subordinated
      Debt,
      notice of such event of default.

     

    (h) Supplemental
      Schedules.
      To
      Agent, supplemental disclosures, if any, required by Section 5.6.

     

    
      
        
        

      

      
        Annex
          E -
          2

        
          

        

      

      
        
        

      

    

    (i) Litigation.
      To Agent
      in writing, promptly upon learning thereof, notice of any Litigation commenced
      or threatened against any Credit Party that (i) seeks damages in excess of
      $1,000,000, (ii) seeks injunctive relief, (iii) is asserted or instituted
      against any Plan, its fiduciaries or its assets or against any Credit Party
      or
      ERISA Affiliate in connection with any Plan, (iv) alleges criminal
      misconduct by any Credit Party, or (v) alleges the violation of any law
      regarding, or seeks remedies in connection with, any Environmental
      Liabilities.

     

    (j) Insurance
      Notices.
      To
      Agent, disclosure of losses or casualties required by Section 5.4.

     

    (k) Investments.
      To
      Agent, notice of the transfer of any investments identified in Section
      6.2(c)
      in an
      aggregate amount greater than $10,000,000 to any account not subject to a
      Control Letter in effect on the Closing Date or entered into after the Closing
      Date in accordance with the last sentence of Section 5.10 of the Credit
      Agreement. 

     

    (k) Other
      Documents.
      To Agent
      and Lenders, such other financial and other information respecting any Credit
      Party's business or financial condition as Agent or any Lender shall from time
      to time reasonably request.

     

    
      
        
        

      

      
        Annex
          E -
          3

        
          

        

      

      
        
        

      

    

    ANNEX
      F (Section 6.10)

     

    to

     

    AMENDED
      AND RESTATED CREDIT AGREEMENT

     

    FINANCIAL
      COVENANTS

     

    Borrowers
      shall not breach or fail to comply with any of the following financial
      covenants, each of which shall be calculated in accordance with GAAP
      consistently applied:

     

    (a) Minimum
      Fixed Charge Coverage Ratio.
      Holdings
      and its Subsidiaries shall have on a consolidated basis at the end of each
      Fiscal Quarter, a Fixed Charge Coverage Ratio for the twelve-month period then
      ended (or with respect to the Fiscal Quarters ending on or before December
      31,
      2007, the period commencing on March 31, 2007, and ending on the last day of
      such Fiscal Quarter) of not less than 1.20 to 1.00. 

     

    (b) Maximum
      Leverage Ratio.
      Holdings
      and its Subsidiaries on a consolidated basis shall have, at the end of each
      Fiscal Quarter, a Leverage Ratio as of the last day of such Fiscal Quarter
      and
      for the twelve-month period then ended of not more than 2.50 to
      1.00

     

    
      
        
        

      

      
        Annex
          F -
          1

        
          

        

      

      
        
        

      

    

    Unless
      otherwise specifically provided herein, any accounting term used in the
      Agreement shall have the meaning customarily given such term in accordance
      with
      GAAP, and all financial computations hereunder shall be computed in accordance
      with GAAP consistently applied. That certain items or computations are
      explicitly modified by the phrase "in accordance with GAAP" shall in no way
      be
      construed to limit the foregoing. If any "Accounting Changes" (as defined below)
      occur and such changes result in a change in the calculation of the financial
      covenants, standards or terms used in the Agreement or any other Loan Document,
      then Borrowers, Agent and Lenders agree to enter into negotiations in order
      to
      amend such provisions of the Agreement so as to equitably reflect such
      Accounting Changes with the desired result that the criteria for evaluating
      Borrowers' and their Subsidiaries' financial condition shall be the same after
      such Accounting Changes as if such Accounting Changes had not been made;
provided,
      however,
      that the
      agreement of Requisite Lenders to any required amendments of such provisions
      shall be sufficient to bind all Lenders. "Accounting Changes" means
      (i) changes in accounting principles required by the promulgation of any
      rule, regulation, pronouncement or opinion by the Financial Accounting Standards
      Board of the American Institute of Certified Public Accountants (or successor
      thereto or any agency with similar functions), (ii) changes in accounting
      principles concurred in by any Borrower's certified public accountants;
      (iii) purchase accounting adjustments under A.P.B. 16 or 17 and EITF 88-16,
      and the application of the accounting principles set forth in FASB 109,
      including the establishment of reserves pursuant thereto and any subsequent
      reversal (in whole or in part) of such reserves; and (iv) the reversal of
      any reserves established as a result of purchase accounting adjustments. All
      such adjustments resulting from expenditures made subsequent to the Closing
      Date
      (including capitalization of costs and expenses or payment of pre-Closing Date
      liabilities) shall be treated as expenses in the period the expenditures are
      made and deducted as part of the calculation of EBITDA in such period. If Agent,
      Borrowers and Requisite Lenders agree upon the required amendments, then after
      appropriate amendments have been executed and the underlying Accounting Change
      with respect thereto has been implemented, any reference to GAAP contained
      in
      the Agreement or in any other Loan Document shall, only to the extent of such
      Accounting Change, refer to GAAP, consistently applied after giving effect
      to
      the implementation of such Accounting Change. If Agent, Borrowers and Requisite
      Lenders cannot agree upon the required amendments within 30 days following
      the
      date of implementation of any Accounting Change, then all Financial Statements
      delivered and all calculations of financial covenants and other standards and
      terms in accordance with the Agreement and the other Loan Documents shall be
      prepared, delivered and made without regard to the underlying Accounting Change.
      For purposes of Section 8.1,
      a breach
      of a Financial Covenant contained in this Annex F
      shall be
      deemed to have occurred as of the earlier of the date the Financial Statements
      reflecting such breach are delivered to Agent or the date such Financial
      Statements were required to be delivered to Agent.

     

    
      
        
        

      

      
        Annex
          F -
          2

        
          

        

      

      
        
        

      

    

    ANNEX
      G (Section 9.9(a))

     

    to

     

    AMENDED
      AND RESTATED CREDIT AGREEMENT

     

    WIRE
      TRANSFER INFORMATION

     

    

    
      	
              Name:

            	
              General
                Electric Capital Corporation

            
	
              Bank:

            	
              Deutsche
                Bank Trust Company Americas

              New
                York, New York

            
	
              ABA
                #:

            	
              021001033

            
	
              Account
                #:

            	
              50271079

            
	
              Account
                Name:

            	
              GECC/CAF
                Depository

            
	
              Reference:

            	
              CFC
                Odyssey

            

    

    

    
      
        
        

      

      
        Annex
          G -
          1

        
          

        

      

      
        
        

      

    

    ANNEX
      H (Section 11.10)

     

    to

     

    AMENDED
      AND RESTATED CREDIT AGREEMENT

     

    NOTICE
      ADDRESSES

     

    

    (A) If
      to
      Agent or GE Capital, at

     

    General
      Electric Capital Corporation

     

    500
      West
      Monroe Street, 11th
      Floor

     

    Chicago,
      IL 60661

     

     

     

    Attention:
      Odyssey Account Manager

     

    Telecopier
      No.: (312) 441-7598

     

    Telephone
      No.: (312) 463-3814

     

     

     

    with
      copies to:

     

    General
      Electric Capital Corporation

     

    Two
      Bethesda Metro Center, Suite 600 

     

    Bethesda,
      Maryland 20814

     

    Attention:
      General Counsel 

     

    Telecopier
      No.: (301) 664-9866

     

    (B) If
      to
      Borrowers, at

     

    Odyssey
      HealthCare, Inc.

     

    717
      North
      Harwood, Suite 1500

     

    Dallas,
      Texas 75201

     

    Attention:
      General Counsel

     

    Telecopier
      No.: (214) 922-9752

     

    Telephone
      No.: (214) 245-3176

     

     

     

    with
      copies to:

     

    Vinson
      & Elkins L.L.P.

     

    3700
      Trammell Crow Center

     

    2100
      Ross
      Avenue

     

    Dallas,
      Texas 75201-2975

     

    Attention:
      James Markus

     

    Telecopier
      No.: (214) 999-7836

     

    Telephone
      No.: (214) 220-7836

     

    

    
      
        
        

      

      
        Annex H
          - 1

        
          

        

      

      
        
        

      

    

    ANNEX
      I (from Annex A - Commitments definition)

     

    to

     

    AMENDED
      AND RESTATED CREDIT AGREEMENT

     

    

    
      	
Revolving
              Loan Commitment:	
              Lender(s)

            
	
              
$40,000,000

               

            	
              
General
                Electric Capital Corporation

               

            

    

    

    
      
        
        

      

      
        Annex
          I -
          1Exhibit 4.1

MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.,

Depositor

UBS REAL ESTATE SECURITIES INC.,

Transferor

WELLS FARGO BANK, N.A.,

Master Servicer, Trust Administrator, Custodian and Credit Risk Manager

U.S. BANK NATIONAL ASSOCIATION,

Trustee 

POOLING AND SERVICING AGREEMENT

Dated as of April 1, 2007

MASTR ADJUSTABLE RATE MORTGAGES TRUST 2007-3

MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-3

TABLE OF CONTENTS

ARTICLE I DEFINITIONS

17

Section 1.01. Definitions.

17

Section 1.02. Certain Calculations.

71

Section 1.03. Rights of the NIMS Insurer.

72

ARTICLE II CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND 

WARRANTIES

72

Section 2.01. Conveyance of Mortgage Loans.

72

Section 2.02. Acceptance by Trustee of the Mortgage Loans.

77

Section 2.03. Remedies for Breaches of Representations and Warranties.

79

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

Loans.

82

Section 2.05. Early Payment Default on IndyMac Serviced Loans.

82

Section 2.06. Execution and Delivery of Certificates.

83

Section 2.07. REMIC Matters.

83

Section 2.08. Covenants of the Master Servicer.

83

Section 2.09. Representations and Warranties of the Master Servicer.

83

Section 2.10. Representations and Warranties of the Custodian.

85

ARTICLE III ADMINISTRATION AND MASTER SERVICING OF MORTGAGE 

LOANS

86

Section 3.01. Master Servicing of Mortgage Loans.

86

Section 3.02. Monitoring of Servicers.

87

Section 3.03. [Reserved].

88

Section 3.04. Rights of the Depositor and the Trustee in Respect of the Master 

Servicer.

88

Section 3.05. Trustee to Act as Master Servicer.

89

Section 3.06. Protected Accounts.

90

Section 3.07. Collection of Mortgage Loan Payments; Accounts.

90

Section 3.08. Collection of Taxes, Assessments and Similar Items; Escrow Accounts.

100

Section 3.09. Access to Certain Documentation and Information Regarding the 

Mortgage Loans.

100

Section 3.10. Permitted Withdrawals from the Accounts.

100

Section 3.11. Maintenance of Hazard Insurance.

106

Section 3.12. Presentment of Claims and Collection of Proceeds.

107

Section 3.13. Maintenance of the Primary Insurance Policies.

107

Section 3.14. Realization upon Defaulted Mortgage Loans.

108

Section 3.15. REO Property.

108

Section 3.16. Due on Sale Clauses; Assumption Agreements.

109

Section 3.17. Trustee to Cooperate; Release of Mortgage Files.

109

Section 3.18. Documents, Records and Funds in Possession of the Master Servicer and 

the Custodian to Be Held for the Trustee.

110

Section 3.19. Master Servicing Compensation.

110

Section 3.20. Access to Certain Documentation.

111

Section 3.21. Annual Statement as to Compliance.

111

Section 3.22. Report on Assessment of Compliance and Attestation.

112

Section 3.23. Errors and Omissions Insurance; Fidelity Bonds.

115

Section 3.24. [Reserved].

115

Section 3.25. Credit Risk Management Services and Reports; Reliability of Data.

115

Section 3.26. Limitation Upon Liability of Credit Risk Manager.

116

Section 3.27. Resignation or Removal of Credit Risk Manager.

116

Section 3.28. Group 1 Certificate Cap Contract.

117

Section 3.29. Group 1 Basis Risk Cap Contract.

117

Section 3.30. Group 2 Certificate Cap Contract.

118

Section 3.31. Group 2 Basis Risk Cap Contract.

118

Section 3.32. Class 2-2A3 Basis Risk Cap Contract.

119

Section 3.33. The Guaranty.

119

ARTICLE IV DISTRIBUTIONS AND SERVICING ADVANCES

120

Section 4.01. Advances.

120

Section 4.02. Priorities of Distributions on the Group 1 Certificates.

120

Section 4.03. Priority of Distributions on the Group 2 Certificates.

127

Section 4.04. Distribution Date Statements to Certificateholders.

137

Section 4.05. Determination of LIBOR.

140

Section 4.06. Supplemental Interest Trust.

141

Section 4.07. Distributions from the Group 1 Certificate Cap Account.

141

Section 4.08. Distributions from the Group 1 Basis Risk Cap Account.

143

Section 4.09. Distributions from the Group 2 Certificate Cap Account.

144

Section 4.10. Distributions from the Group 2 Basis Risk Cap Account.

146

Section 4.11. Distributions from the Class 2-2A3 Basis Risk Cap Account.

147

Section 4.12. Distributions from the Group 1 Carryover Reserve Fund.

147

Section 4.13. Distributions from the Group 2 Carryover Reserve Fund.

148

Section 4.14. Distributions from the Group 2 Credit Enhancement Reserve Fund.

148

ARTICLE V THE CERTIFICATES

149

Section 5.01. The Certificates.

149

Section 5.02. Certificate Register; Registration of Transfer and Exchange of 

Certificates.

150

Section 5.03. Mutilated, Destroyed, Lost or Stolen Certificates.

156

Section 5.04. Persons Deemed Owners.

156

Section 5.05. Access to List of Certificateholders’ Names and Addresses.

156

Section 5.06. Maintenance of Office or Agency.

157

ARTICLE VI THE DEPOSITOR, THE MASTER SERVICER AND THE CUSTODIAN

157

Section 6.01. Respective Liabilities of the Depositor, the Master Servicer and the 

Custodian.

157

Section 6.02. Merger or Consolidation of the Depositor, the Master Servicer and the 

Custodian.

157

Section 6.03. Limitation on Liability of the Depositor, the NIMS Insurer, the 

Certificate Insurer, the Transferor, the Master Servicer, the Custodian 

and Others.

158

Section 6.04. Limitation on Resignation of Master Servicer.

159

Section 6.05. Sale and Assignment of Master Servicing Rights.

159

Section 6.06. Fees of the Custodian.

159

ARTICLE VII DEFAULT

160

Section 7.01. Events of Default.

160

Section 7.02. Trustee to Act; Appointment of Successor.

162

Section 7.03. Notification to Certificateholders.

163

ARTICLE VIII CONCERNING THE TRUSTEE AND THE MASTER SERVICER

164

Section 8.01. Duties of Trustee.

164

Section 8.02. Certain Matters Affecting the Trustee.

165

Section 8.03. Trustee Not Liable for Certificates or Mortgage Loans.

167

Section 8.04. Trustee May Own Certificates.

167

Section 8.05. Trustee’s Fees and Expenses.

167

Section 8.06. Eligibility Requirements for Trustee.

168

Section 8.07. Resignation and Removal of Trustee.

169

Section 8.08. Successor Trustee.

169

Section 8.09. Merger or Consolidation of Trustee.

170

Section 8.10. Appointment of Co-Trustee or Separate Trustee.

170

ARTICLE IX CONCERNING THE TRUST ADMINISTRATOR

172

Section 9.01. Duties of Trust Administrator.

172

Section 9.02. Certain Matters Affecting the Trust Administrator.

173

Section 9.03. Trust Administrator Not Liable for Certificates or Mortgage Loans.

175

Section 9.04. Trust Administrator May Own Certificates.

175

Section 9.05. Trust Administrator’s Fees and Expenses.

175

Section 9.06. Eligibility Requirements for Trust Administrator.

176

Section 9.07. Resignation and Removal of Trust Administrator.

176

Section 9.08. Successor Trust Administrator.

178

Section 9.09. Merger or Consolidation of Trust Administrator.

179

Section 9.10. [Reserved].

179

Section 9.11. Tax Matters.

179

Section 9.12. Periodic Filing.

182

ARTICLE X TERMINATION

189

Section 10.01. Termination upon Liquidation or Purchase of Mortgage Loans

189

Section 10.02. Additional Termination Requirements.

193

ARTICLE XI MISCELLANEOUS PROVISIONS

199

Section 11.01. Amendment.

199

Section 11.02. Recordation of Agreement; Counterparts.

202

Section 11.03. Governing Law.

202

Section 11.04. Intention of Parties.

202

Section 11.05. Notices.

203

Section 11.06. Severability of Provisions.

204

Section 11.07. Assignment.

204

Section 11.08. Limitation on Rights of Certificateholders.

204

Section 11.09. Inspection and Audit Rights.

205

Section 11.10. Certificates Nonassessable and Fully Paid.

205

Section 11.11. Compliance With Regulation AB

206

Section 11.12. Third Party Rights.

206

ARTICLE XII CERTAIN MATTERS REGARDING THE CERTIFICATE INSURER

206

Section 12.01. Exercise of Voting Rights of Holder of the Insured Certificates.

206

Section 12.02. Trustee and Trust Administrator to Act Solely with Consent of 

Certificate Insurer.

207

Section 12.03. Trust Fund and Accounts Held for Benefit of Certificate Insurer.

207

Section 12.04. Claims Upon the Certificate Insurance Policy; Policy Payments 

Account.

207

Section 12.05. Effect of Payments by Certificate Insurer; Subrogation.

211

Section 12.06. Trust Administrator to Hold the Certificate Insurance Policy.

211

Section 12.07. Termination of Certain of Certificate Insurer’s Rights.

212

Section 12.08. Survival of Indemnification.

212

SCHEDULES

Schedule I

Mortgage Loan Schedule

Schedule II

Representations and Warranties as to the Mortgage Loans

Schedule III

Group 1 Basis Risk Cap Contract Schedule

Schedule IV

Group 1 Certificate Cap Contract Schedule

Schedule V

Group 2 Basis Risk Cap Contract Schedule

Schedule VI

Group 2 Certificate Cap Contract Schedule

Schedule VII

Class 2-2A3 Basis Risk Cap Contract Schedule

Schedule VIII

Class P Prepayment Charges Mortgage Loan Schedule

Schedule IX

Class 1-AIO Notional Amount Schedule

Schedule X

Class 2-AIO Notional Amount Schedule

Schedule XI

Reserve Trigger Amount Schedule

EXHIBITS

Exhibit A-1:

Form of Group 1 Senior Certificate 

(other than Interest-Only Certificates)

A-1-1

Exhibit A-2:

Form of Class 1-AIO Certificate

A-2-1

Exhibit A-3:

Form of Group 2 Senior Certificate 

(other than Interest-Only Certificates)

A-3-1

Exhibit A-4:

Form of Class 2-AIO Certificate

A-4-1

Exhibit B-1:

Form of Group 1 Mezzanine Certificate

B-1-1

Exhibit B-2:

Form of Group 2 Mezzanine Certificate

B-2-1

Exhibit C-1:

Form of Class 1-C Certificate

C-1-1

Exhibit C-2:

Form of Class 2-C Certificate 

C-2-1

Exhibit D-1:

Form of [Class 1-1P][Class 1-2P] Certificate

D-1-1

Exhibit D-2:

Form of [Class 2-1P][Class 2-2P] Certificate

D-2-1

Exhibit E-1:

Form of [Class 1-R-X][Class 1-R] Certificate

E-1-1

Exhibit E-2:

Form of [Class 2-R-X][Class 2-R] Certificate

E-2-1

Exhibit F:

Form of Reverse of Certificates

F-1

Exhibit G:

Form of Initial Certification of Custodian

G-1

Exhibit H:

Form of Final Certification of Custodian

H-1

Exhibit I:

Form of Residual Certificate Transfer Affidavit

I-1

Exhibit J:

Form of Transferor Certificate

J-1

Exhibit K:

Form of Investment Letter (Non Rule 144A)

K-1

Exhibit L:

Form of Rule 144A Letter

L-1

Exhibit M:

Form of Request for Release of Documents

M-1

Exhibit N:

Form of Sarbanes-Oxley Certification

N-1

Exhibit O-1:

Form of Group 1 Basis Risk Cap Contract

O-1-1

Exhibit O-2:

Form of Group 1 Certificate Cap Contract

O-2-1

Exhibit O-3:

Form of Group 2 Basis Risk Cap Contract

O-3-1

Exhibit O-4:

Form of Group 2 Certificate Cap Contract

O-4-1

Exhibit O-5:

Form of Class 2-2A3 Basis Risk Cap Contract

O-5-1

Exhibit P:

[Reserved]

P-1

Exhibit Q:

Form of Assessment of Compliance

Q-1

Exhibit R:

[Reserved]

R-1

Exhibit S:

Additional Disclosure Notification

S-1

Exhibit T:

Additional Form 10-D Disclosure

T-1

Exhibit U:

Additional Form 10-K Disclosure 

U-1

Exhibit V:

Form 8-K Disclosure Information

V-1

Exhibit W:

[Reserved]

W-1

Exhibit X:

Assessments of Compliance and Attestation Reports Servicing Criteria

X-1

THIS POOLING AND SERVICING AGREEMENT, dated as of April 1, 2007, among MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., a Delaware corporation, as depositor (the “Depositor”), UBS REAL ESTATE SECURITIES INC., a Delaware corporation, as transferor (the “Transferor”), WELLS FARGO BANK, N.A., a national banking association (“Wells Fargo”), as master servicer (in such capacity, the “Master Servicer”), as trust administrator (in such capacity, the “Trust Administrator”), as custodian (in such capacity, “Custodian”), and as credit risk manager (in such capacity, the “Credit Risk Manager”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized under the laws of the United States, as trustee (in such capacity, the “Trustee”).

W I T N E S S E T H  T H A T

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

PRELIMINARY STATEMENT

The Depositor is the owner of the Trust Fund that is hereby conveyed to the Trustee in return for the Certificates.  The Trust Fund is being conveyed to the Trustee to create a trust for the benefit of the Certificateholders.  As provided herein, an election shall be made that the Trust Fund (exclusive of (i) the right to receive and the obligation to pay Net Rate Carryover Amounts, (ii) the Group 1 and Group 2 Carryover Reserve Funds, (iii) the Group 1 Certificate Cap Contract, (iv) the Group 1 Certificate Cap Account, (v) the Group 1 Basis Risk Cap Contract, (vi) the Group 1 Basis Risk Cap Account, (vii) the Group 2 Certificate Cap Contract, (viii) the Group 2 Certificate Cap Account, (ix) the Group 2 Basis Risk Cap Contract, (x) the Group 2 Basis Risk Cap Account, (xi) the Class 2-2A3 Basis Risk Cap Contract, (xii) the Class 2-2A3 Basis Risk Cap Account and (xiii) the Supplemental Interest Trust (collectively, the “Excluded Trust Assets”)) be treated for federal income tax purposes as comprising twelve real estate mortgage investment conduits under Section 860D of the Code (each a “REMIC” or, in the alternative the “Subsidiary REMIC 1,” “Middle REMIC 1,” “Master REMIC 1,” the “Class 1-C REMIC,” the “Class 1-1P REMIC,” the “Class 1-2P REMIC,” “Subsidiary REMIC 2,” “Middle-REMIC 2,” “Master REMIC 2,” the “Class 2-C REMIC,” the “Class 2-1P REMIC,” and the “Class 2-2P REMIC.”).  Any inconsistencies or ambiguities in this Agreement or in the administration of this Agreement shall be resolved in a manner that preserves the validity of such REMIC elections.

Each Certificate, other than the Class 1-R, Class 1-RX, Class 2-R, Class 2-RX, Class 1-1P, Class 1-2P, Class 2-1P, Class 2-2P, Class 1-C and Class 2-C Certificates, represents ownership of a regular interest in Master REMIC 1 or Master REMIC 2 for purposes of the REMIC Provisions.  In addition, each Certificate, other than the Class 1-R, Class 1-RX, Class 2-R, Class 2-RX, Class 1-1P, Class 1-2P, Class 2-1P, Class 2-2P, Class 1-C and Class 2-C Certificates, represents the right to receive certain payments with respect to Net Rate Carryover Amounts.  The Class 1-R Certificate represents ownership of the sole Class of residual interest in each of Subsidiary REMIC 1, Middle REMIC 1, and Master REMIC 1 for purposes of the REMIC Provisions.  The Class 1-RX Certificate represents ownership of the sole Class of residual interest in each of the Class 1-C REMIC, the Class 1-1P REMIC, and the Class 1-2P REMIC for purposes of the REMIC Provisions.  The Class 2-R Certificate represents ownership of the sole Class of residual interest in each of Subsidiary REMIC 2, Middle REMIC 2, and Master REMIC 2 for purposes of the REMIC Provisions.  The Class 2-RX Certificate represents ownership of the sole Class of residual interest in each of the Class 2-C REMIC, the Class 2-1P REMIC, and the Class 2-2P REMIC for purposes of the REMIC Provisions.  

The Class 1-C REMIC shall hold as its assets the Class 1-C interest issued by Master REMIC 1 and such interest is hereby designated as a regular interest in the Class 1-C REMIC.  The Class 1-1P REMIC shall hold as its assets the Class 1-1P interest issued by Master REMIC 1, and such interest is hereby designated as a regular interest in the Class 1-1P REMIC.  The Class 1-2P REMIC shall hold as its assets the Class 1-2P interest issued by Master REMIC 1, and such interest is hereby designated as a regular interest in the Class 1-2P REMIC.  The Class 2-C REMIC shall hold as its assets the Class 2-C interest issued by Master REMIC 2 and such interest is hereby designated as a regular interest in the Class 2-C REMIC.  The Class 2-1P REMIC shall hold as its assets the Class 2-1P interest issued by Master REMIC 2, and such interest is hereby designated as a regular interest in the Class 2-1P REMIC.  The Class 2-2P REMIC shall hold as its assets the Class 2-2P interest issued by Master REMIC 2, and such interest is hereby designated as a regular interest in the Class 2-2P REMIC.  

Master REMIC 1 shall hold as its assets the uncertificated interests in Middle REMIC 1, other than the MT1-R interest, and each such interest is hereby designated as a regular interest in Middle REMIC 1 for purposes of the REMIC Provisions.  Middle REMIC  1 shall hold as its assets the uncertificated interests in Subsidiary REMIC 1, other than the LT1-R interest, and each such interest is hereby designated as a regular interest in Subsidiary REMIC 1.  The Subsidiary REMIC shall hold as its assets the property of the Trust Fund related to Group 1, other than the interests in any REMIC created hereby, and the Excluded Trust Assets.

Master REMIC 2 shall hold as its assets the uncertificated interests in Middle REMIC 2, other than the MT2-R interest, and each such interest is hereby designated as a regular interest in Middle REMIC 2 for purposes of the REMIC Provisions.  Middle REMIC  2 shall hold as its assets the uncertificated interests in Subsidiary REMIC 2, other than the LT2-R interest, and each such interest is hereby designated as a regular interest in Subsidiary REMIC 2.  The Subsidiary REMIC shall hold as its assets the property of the Trust Fund related to Group 2, other than the interests in any REMIC created hereby, and the Excluded Trust Assets.

The startup day for purposes of the REMIC Provisions is the Closing Date with respect to each REMIC created hereby.  In addition, for purposes of the REMIC Provisions, the latest possible maturity date for each regular interest in each REMIC created hereby is the Latest Possible Maturity Date.

Subsidiary REMIC 1:

The following table sets forth the designations, principal balances and interest rates for each interest in the Subsidiary REMIC 1, each of which (other than the LT1-R interest) is hereby designated as a regular interest in Subsidiary REMIC 1 (the “Subsidiary REMIC 1 Regular Interests”):

			
	Class Designation

	Interest Rate

	Initial Class 

Principal Amount

	LT1-AIO-1

	(1)

	 $     25,000,000.00 

	LT1-AIO-2

	(1)

	 $   100,000,000.00 

	LT1-AIO-3

	(1)

	 $     75,000,000.00 

	LT1-AIO-4

	(1)

	 $   100,000,000.00 

	LT1-AIO-5

	(1)

	 $     50,000,000.00 

	LT1-AIO-6

	(1)

	 $     50,000,000.00 

	LT1-AIO-7

	(1)

	 $     50,000,000.00 

	LT1-AIO-8

	(1)

	 $   100,000,000.00 

	LT1-AIO-9

	(1)

	 $     50,000,000.00 

	LT1-AIO-10

	(1)

	 $     50,000,000.00 

	LT1-AIO-11

	(1)

	 $     50,000,000.00 

	LT1-Group 1

	(1)

	(2)

	LT1-R

	(3)

	(3)

(1)

The interest rate with respect to any Distribution Date (and the related Accrual Period) for each of these Subsidiary REMIC 1 Regular Interests is a per annum rate equal to the Net WAC for Loan Group 1.

(2)

This interest shall have an initial principal balance equal to the excess of (i) the aggregate Principal Balance for Loan Group 1 over (ii) the initial aggregate principal balance of each remaining Subsidiary REMIC 1 Regular Interest.

(3)

The LT1-R interest is the sole class of residual interests in Subsidiary REMIC 1.  It does not have an interest rate or a principal balance.

On each Distribution Date, Available Funds shall be distributed in payment of interest on the interests in the Subsidiary REMIC 1 as follows:  

(i)

first, pro rata, to the Subsidiary REMIC 1 Regular Interests having the letters “AIO” in their Class Designation, based on the amount of interest accrued on each such interest for the related Accrual Period; 

(ii)

second, to the LT1-Group 1 Interest, based on the amount of interest accrued on such interest for the related Accrual Period; and 

(iii)    finally, to the LT1-R interest, any remaining amounts.

On each Distribution Date, Available Funds shall be distributed in payment of principal on the interests in the Subsidiary REMIC 2 as follows: 

(i)

first, to the LT1-Group 1 Interest until its Class Principal Amount is reduced to zero;

(ii)

second, to the Subsidiary REMIC 1 Regular Interests having the letters “AIO” in their Class Designation in ascending order of their numerical designation until the Class Principal Amount of each such Subsidiary REMIC 1 Regular Interest is reduced to zero; and 

(iii)    finally, to the LT1-R interest, any remaining amounts.

On each Distribution Date, Realized Losses shall be allocated among the Subsidiary REMIC 1 Regular Interests in the same manner that principal is distributed among such Subsidiary REMIC 1 Regular Interests.  

On each Distribution Date, the Trust Administrator shall distribute the Class P Prepayment Charges with respect to the Subgroup 1-1 and Subgroup 1-2 Loans to the LT1-Group 1 Interest.

Middle REMIC 1:

The following table sets forth the designations, principal balances and interest rates for each interest in Middle REMIC 1, each of which (other than the MT1-R interest) is hereby designated as a regular interest in Middle REMIC 1 (the “Middle REMIC 1 Regular Interests”):

				
	

 Designation

	Interest Rate

	Initial 

Principal Amount

	Corresponding Class of Certificates 

	MT1-1A1

	(1)

	(13)

	1-1A1

	MT1-1A2

	(1)

	(13)

	1-1A2

	MT1-2A1

	(1)

	(13)

	1-2A1

	MT1-2A2

	(1)

	(13)

	1-2A2

	MT1-A3

	(1)

	(13)

	1-A3

	MT1-M1

	(1)

	(13)

	1-M1

	MT1-M2

	(1)

	(13)

	1-M2

	MT1-M3

	(1)

	(13)

	1-M3

	MT1-M4

	(1)

	(13)

	1-M4

	MT1-M5

	(1)

	(13)

	1-M5

	MT1-Q

	(1)

	(14)

	N/A

	MT1-AIO-1

	(2)

	(2)

	1-AIO

	MT1-AIO-2

	(3)

	(3)

	1-AIO

	MT1-AIO-3

	(4)

	(4)

	1-AIO

	MT1-AIO-4

	(5)

	(5)

	1-AIO

	MT1-AIO-5

	(6)

	(6)

	1-AIO

	MT1-AIO-6

	(7)

	(7)

	1-AIO

	MT1-AIO-7

	(8)

	(8)

	1-AIO

	MT1-AIO-8

	(9)

	(9)

	1-AIO

	MT1-AIO-9

	(10)

	(10)

	1-AIO

	MT1-AIO-10

	(11)

	(11)

	1-AIO

	MT1-AIO-11

	(12)

	(12)

	1-AIO

	MT1-R

	(15)

	(15)

	1-R

                    

(1)

The interest rate with respect to any Distribution Date (and the related Accrual Period) for each of these Middle REMIC 1 Regular Interests is a per annum rate equal to the weighted average of each Subsidiary REMIC 1 Regular Interest computed after reducing the rate payable on each of the Subsidiary REMIC 1 Regular Interests having the letters “AIO” in its designation by 5.00% for each Distribution Date for which interest is payable on its Corresponding Middle REMIC 1 IO Interest.

(2)

The Class MT1-AIO-1 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 3 Distribution Dates the Class LT1-AIO-1 Interest shall be entitled to interest payable on the Class LT1-AIO-1 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(3)

The Class MT1-AIO-2 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 6 Distribution Dates the Class LT1-AIO-2 Interest shall be entitled to interest payable on the Class LT1-AIO-2 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(4)

The Class MT1-AIO-3 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 9 Distribution Dates the Class LT1-AIO-3 Interest shall be entitled to interest payable on the Class LT1-AIO-3 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(5)

The Class MT1-AIO-4 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 12 Distribution Dates the Class LT1-AIO-4 Interest shall be entitled to interest payable on the Class LT1-AIO-4 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(6)

The Class MT1-AIO-5 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 15 Distribution Dates the Class LT1-AIO-5 Interest shall be entitled to interest payable on the Class LT1-AIO-5 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(7)

The Class MT1-AIO-6 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 18 Distribution Dates the Class LT1-AIO-6 Interest shall be entitled to interest payable on the Class LT1-AIO-6 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(8)

The Class MT1-AIO-7 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 21 Distribution Dates the Class LT1-AIO-7 Interest shall be entitled to interest payable on the Class LT1-AIO-7 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(9)

The Class MT1-AIO-8 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 24 Distribution Dates the Class LT1-AIO-8 Interest shall be entitled to interest payable on the Class LT1-AIO-8 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(10)

The Class MT1-AIO-9 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 27 Distribution Dates the Class LT1-AIO-9 Interest shall be entitled to interest payable on the Class LT1-AIO-9 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(11)

The Class MT1-AIO-10 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 30 Distribution Dates the Class LT1-AIO-10 Interest shall be entitled to interest payable on the Class LT1-AIO-10 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(12)

The Class MT1-AIO-11 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 33 Distribution Dates the Class LT1-AIO-11 Interest shall be entitled to interest payable on the Class LT1-AIO-11 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(13)

This interest shall have an initial principal balance equal to one half of the Original Certificate Principal Balance of its Corresponding Class of Certificates.

(14)

This interest shall have an initial principal balance amount equal to the excess of (i) the aggregate Pool Balance as of the Cut-off Date for Group 1, over (ii) the aggregate initial class principal amount of each other regular interest in Middle REMIC 1.

(15)

The MT1-R Interest is the sole Class of residual interest in Middle REMIC 1.  It does not have an interest rate or a principal balance.

On each Distribution Date, interest shall be distributed on the interests in Middle REMIC 1 based on the above-described interest rates, except that interest shall be deferred on the MT1-Q Interest to the extent necessary to make the principal distributions described below.

 On each Distribution Date, principal shall be distributed, and Realized Losses shall be allocated, among the interests in Middle REMIC 1 as follows:

(i)

first, concurrently to each Middle REMIC 1 Regular Interest with a Corresponding Class of Certificates (other than any interest-only Interest) until the principal balance of each such Middle REMIC 1 Regular Interest equals 50% of the Class Principal Balance of the Corresponding Class of Certificates for immediately after such Distribution Date; and

(ii)

second, to the MT1-Q Interest, any remaining amounts.

On each Distribution Date, the Trust Administrator shall be deemed to have distributed the Class P Prepayment Charges with respect to the LT1-Group 1 Interest to the Class MT1-Q Interest.

Subsidiary REMIC 2:

The following table sets forth the designations, principal balances and interest rates for each interest in the Subsidiary REMIC 2, each of which (other than the LT2-R interest) is hereby designated as a regular interest in Subsidiary REMIC 1 (the “Subsidiary REMIC 2 Regular Interests”):

			
	Class Designation

	Interest Rate

	Initial Class 

Principal Amount

	LT2-AIO-1

	(1)

	 $       25,000,000.00 

	LT2-AIO-2

	(1)

	 $       25,000,000.00 

	LT2-AIO-3

	(1)

	 $       25,000,000.00 

	LT2-AIO-4

	(1)

	 $       25,000,000.00 

	LT2-AIO-5

	(1)

	 $       25,000,000.00 

	LT2-AIO-6

	(1)

	 $       50,000,000.00 

	LT2-AIO-7

	(1)

	 $       25,000,000.00 

	LT2-AIO-8

	(1)

	 $       25,000,000.00 

	LT2-AIO-9

	(1)

	 $       25,000,000.00 

	LT2-AIO-10

	(1)

	 $       50,000,000.00 

	LT2-Group 2

	(1)

	(2)

	LT2-R

	(3)

	(3)

(1)

The interest rate with respect to any Distribution Date (and the related Accrual Period) for each of these Subsidiary REMIC 2 Regular Interests is a per annum rate equal to the Net WAC for Loan Group 2.

(2)

This interest shall have an initial principal balance equal to the excess of (i) the aggregate Principal Balance for Loan Group 2 over (ii) the initial aggregate principal balance of each remaining Subsidiary REMIC 2 Regular Interest.

(3)

The LT2-R interest is the sole class of residual interests in Subsidiary REMIC 2.  It does not have an interest rate or a principal balance.

On each Distribution Date, Available Funds shall be distributed in payment of interest on the interests in the Subsidiary REMIC 2 as follows:  

(i)

first, pro rata, to the Subsidiary REMIC 2 Regular Interests having the letters “AIO” in their Class Designation, based on the amount of interest accrued on each such interest for the related Accrual Period; 

(ii)

second, to the LT2-Group 2 Interest, based on the amount of interest accrued on such interest for the related Accrual Period; and 

(iii)    finally, to the LT2-R interest, any remaining amounts.

On each Distribution Date, Available Funds shall be distributed in payment of principal on the interests in the Subsidiary REMIC 2 as follows: 

(i)

first, to the LT2-Group 2 Interest until its Class Principal Amount is reduced to zero;

(ii)

second, to the Subsidiary REMIC 2 Regular Interests having the letters “AIO” in their Class Designation in ascending order of their numerical designation until the Class Principal Amount of each such Subsidiary REMIC 2 Regular Interest is reduced to zero; and 

(iii)    finally, to the LT2-R interest, any remaining amounts.

On each Distribution Date, Realized Losses shall be allocated among the Subsidiary REMIC 2 Regular Interests in the same manner that principal is distributed among such Subsidiary REMIC 2 Regular Interests.  

On each Distribution Date, the Trust Administrator shall distribute the Class P Prepayment Charges with respect to the Subgroup 2-1 and Subgroup 2-2 Loans to the LT2-Group 2 Interest.

Middle REMIC 2:

The following table sets forth the designations, principal balances and interest rates for each interest in Middle REMIC 2, each of which (other than the MT2-R interest) is hereby designated as a regular interest in Middle REMIC 2 (the “Middle REMIC 2 Regular Interests”):

				
	

 Designation

	Interest Rate

	Initial 

Principal Amount

	Corresponding Class of Certificates 

	MT2-1A1

	(1)

	(12)

	2-1A1

	MT2-1A2

	(1)

	(12)

	2-1A2

	MT2-2A1

	(1)

	(12)

	2-2A1

	MT2-2A2

	(1)

	(12)

	2-2A2

	MT2-2A3

	(1)

	(12)

	2-2A3

	MT2-2A4

	(1)

	(12)

	2-2A4

	MT2-2A5

	(1)

	(12)

	2-2A5

	MT2-2A6

	(1)

	(12)

	2-2A6

	MT2-M1

	(1)

	(12)

	2-M1

	MT2-M2

	(1)

	(12)

	2-M2

	MT2-M3

	(1)

	(12)

	2-M3

	MT2-M4

	(1)

	(12)

	2-M4

	MT2-M5

	(1)

	(12)

	2-M5

	MT2-M6

	(1)

	(12)

	2-M3

	MT2-M7

	(1)

	(12)

	2-M4

	MT2-M8

	(1)

	(12)

	2-M5

	MT2-Q

	(1)

	(13)

	N/A

	MT2-AIO-1

	(2)

	(2)

	2-AIO

	MT2-AIO-2

	(3)

	(3)

	2-AIO

	MT2-AIO-3

	(4)

	(4)

	2-AIO

	MT2-AIO-4

	(5)

	(5)

	2-AIO

	MT2-AIO-5

	(6)

	(6)

	2-AIO

	MT2-AIO-6

	(7)

	(7)

	2-AIO

	MT2-AIO-7

	(8)

	(8)

	2-AIO

	MT2-AIO-8

	(9)

	(9)

	2-AIO

	MT2-AIO-9

	(10)

	(10)

	2-AIO

	MT2-AIO-10

	(11)

	(11)

	2-AIO

	MT2-R

	(14)

	(14)

	2-R

                

(1)

The interest rate with respect to any Distribution Date (and the related Accrual Period) for each of these Middle REMIC 2 Regular Interests is a per annum rate equal to the weighted average of each Subsidiary REMIC 2 Regular Interest computed after reducing the rate payable on each of the Subsidiary REMIC 2 Regular Interests having the letters “AIO” in its designation by 5.00% for each Distribution Date for which interest is payable on its Corresponding Middle REMIC 2 IO Interest.

(2)

The Class MT2-AIO-1 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 3 Distribution Dates the Class LT2-AIO-1 Interest shall be entitled to interest payable on the Class LT2-AIO-1 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(3)

The Class MT2-AIO-2 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 6 Distribution Dates the Class LT2-AIO-2 Interest shall be entitled to interest payable on the Class LT2-AIO-2 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(4)

The Class MT2-AIO-3 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 9 Distribution Dates the Class LT2-AIO-3 Interest shall be entitled to interest payable on the Class LT2-AIO-3 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter

(5)

The Class MT2-AIO-4 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 12 Distribution Dates the Class LT2-AIO-4 Interest shall be entitled to interest payable on the Class LT2-AIO-4 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(6)

The Class MT2-AIO-5 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 15 Distribution Dates the Class LT2-AIO-5 Interest shall be entitled to interest payable on the Class LT2-AIO-5 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(7)

The Class MT2-AIO-6 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 18 Distribution Dates the Class LT2-AIO-6 Interest shall be entitled to interest payable on the Class LT2-AIO-6 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(8)

The Class MT2-AIO-7 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 21 Distribution Dates the Class LT2-AIO-7 Interest shall be entitled to interest payable on the Class LT2-AIO-7 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(9)

The Class MT2-AIO-8 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 24 Distribution Dates the Class LT2-AIO-8 Interest shall be entitled to interest payable on the Class LT2-AIO-8 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(10)

The Class MT2-AIO-9 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 27 Distribution Dates the Class LT2-AIO-9 Interest shall be entitled to interest payable on the Class LT2-AIO-9 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(11)

The Class MT2-AIO-10 Interest is an interest-only Class and does not have a Class Principal Amount.  For each of the first 30 Distribution Dates the Class LT2-AIO-10 Interest shall be entitled to interest payable on the Class LT2-AIO-10 Interest at a rate of 5.00% per annum and shall not be entitled to any payments thereafter.

(12)

This interest shall have an initial principal balance equal to one half of the Original Certificate Principal Balance of its Corresponding Class of Certificates.

(13)

This interest shall have an initial principal balance amount equal to the excess of (i) the aggregate Pool Balance as of the Cut-off Date for Group 2, over (ii) the aggregate initial class principal amount of each other regular interest in Middle REMIC 2.

(14)

The MT2-R Interest is the sole Class of residual interest in Middle REMIC 2.  It does not have an interest rate or a principal balance.

On each Distribution Date, interest shall be distributed on the interests in Middle REMIC 2 based on the above-described interest rates, except that interest shall be deferred on the MT2-Q Interest to the extent necessary to make the principal distributions described below.

 On each Distribution Date, principal shall be distributed, and Realized Losses shall be allocated, among the interests in Middle REMIC 2 as follows:

(i)

first, concurrently to each Middle REMIC 2 Regular Interest with a Corresponding Class of Certificates (other than any interest-only Interest) until the principal balance of each such Middle REMIC 2 Regular Interest equals 50% of the Class Principal Balance of the Corresponding Class of Certificates for immediately after such Distribution Date; and

(ii)

second, to the MT2-Q Interest, any remaining amounts.

On each Distribution Date, the Trust Administrator shall be deemed to have distributed the Class P Prepayment Charges with respect to the LT2-Group 2 Interest to the Class MT2-Q Interest.

Certificates

As provided herein, the Trustee shall elect to treat the segregated pool of assets consisting of each of the Middle REMIC 1 Regular Interests and the Middle REMIC 2 Regular Interests, respectively, as a REMIC for federal income tax purposes, and such segregated pools of assets shall be designated as “Master REMIC 1” and Master REMIC 2,” respectivey.  Master REMIC 1 and Master REMIC 2 shall also issue the Class R-1 and Class R-2 Interests, respectively, which shall evidence the sole class of “residual interests” in Master REMIC 1 and Master REMIC 2, respectively, for purposes of the REMIC Provisions under federal income tax law.  The following table irrevocably sets forth the designation, the Pass-Through Rate, and the initial aggregate Certificate Principal Balance for the indicated Class of Certificates and the Class C, Class 1-1P, Class 1-2P, Class 2-1P, and Class 2-2P interests.

					
	Designation

	Pass-Through Rate(16)

	Initial Aggregate

Certificate Principal Balance

	Latest Possible

Maturity Date(1)

	

Related Master REMIC

	Class 1-1A1

	Variable(2)

	$309,106,000

	May 25, 2047

	Master REMIC 1

	Class 1-1A2

	Variable(2)

	$206,071,000

	May 25, 2047

	Master REMIC 1

	Class 1-2A1

	Variable(2)

	$618,917,000

	May 25, 2047

	Master REMIC 1

	Class 1-2A2

	Variable(2)

	$412,611,000

	May 25, 2047

	Master REMIC 1

	Class 1-AIO

	(3)

	(4)

	May 25, 2047

	Master REMIC 1

	Class 1-A3

	Variable(2)

	$132,701,000

	May 25, 2047

	Master REMIC 1

	Class 1-M1

	Variable(5)

	$26,364,000

	May 25, 2047

	Master REMIC 1

	Class 1-M2

	Variable(5)

	$14,940,000

	May 25, 2047

	Master REMIC 1

	Class 1-M3

	Variable(5)

	$9,667,000

	May 25, 2047

	Master REMIC 1

	Class 1-M4

	Variable(5)

	$9,667,000

	May 25, 2047

	Master REMIC 1

	Class 1-M5

	Variable(5)

	$8,788,000

	May 25, 2047

	Master REMIC 1

	Class 2-1A1

	Variable(6)

	$116,046,000

	May 25, 2047

	Master REMIC 2

	Class 2-1A2

	Variable(6)

	$77,364,000

	May 25, 2047

	Master REMIC 2

	Class 2-2A1

	Variable(6)

	$146,667,000

	May 25, 2047

	Master REMIC 2

	Class 2-2A2

	Variable(6)

	$198,408,000

	May 25, 2047

	Master REMIC 2

	Class 2-2A3

	Variable(6)

	$30,000,000

	May 25, 2047

	Master REMIC 2

	Class 2-2A4

	Variable(6)

	$56,157,000

	May 25, 2047

	Master REMIC 2

	Class 2-2A5

	Variable(6)

	$39,903,000

	May 25, 2047

	Master REMIC 2

	Class 2-2A6

	Variable(6)

	$83,142,000

	May 25, 2047

	Master REMIC 2

	Class 2-AIO

	(7)

	(8)

	May 25, 2047

	Master REMIC 2

	Class 2-M1

	Variable(9)

	$21,869,000

	May 25, 2047

	Master REMIC 2

	Class 2-M2

	Variable(9)

	$12,792,000

	May 25, 2047

	Master REMIC 2

	Class 2-M3

	Variable(9)

	$5,777,000

	May 25, 2047

	Master REMIC 2

	Class 2-M4

	Variable(9)

	$5,364,000

	May 25, 2047

	Master REMIC 2

	Class 2-M5

	Variable(9)

	$4,952,000

	May 25, 2047

	Master REMIC 2

	Class 2-M6

	Variable(9)

	$9,078,000

	May 25, 2047

	Master REMIC 2

	Class 2-M7

	Variable(9)

	$9,490,000

	May 25, 2047

	Master REMIC 2

	Class 2-M8

	Variable(9)

	$4,126,000

	May 25, 2047

	Master REMIC 2

	Class 1-C interest

	Variable(10)

	$8,787,750

	May 25, 2047

	Master REMIC 1

	Class 2-C interest

	Variable(11)

	$4,126,657

	May 25, 2047

	Master REMIC 2

	Class 1-1P interest

	N/A(12)

	$100

	May 25, 2047

	Master REMIC 1

	Class 1-2P interest

	N/A(13)

	$100

	May 25, 2047

	Master REMIC 1

	Class 2-1P interest

	N/A(14)

	$100

	May 25, 2047

	Master REMIC 2

	Class 2-2P interest

	N/A(15)

	$100

	May 25, 2047

	Master REMIC 2

	Class 1-R

	N/A

	N/A

	May 25, 2047

	N/A

	Class 1-RX

	N/A

	N/A

	May 25, 2047

	N/A

	Class 2-R

	N/A

	N/A

	May 25, 2047

	N/A

	Class 2-RX

	N/A

	N/A

	May 25, 2047

	N/A

_______________

(1)

For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Latest Possible Maturity Date has been designated as the “latest possible maturity date” for each Class of Certificates.

(2)

The Pass-Through Rate on any Distribution Date with respect to the Class 1-1A1, Class 1-1A2, Class 1-2A1, Class 1-2A2 and Class 1-A3 Certificates will be a per annum rate equal to the lesser of (i) One-Month LIBOR for the related Accrual Period plus the related Certificate Margin and (ii) the related Net Rate Cap. 

(3)

The Pass-Through Rate on any Distribution Date with respect to the Class 1-AIO Certificates will be a per annum rate equal to the lesser of (i) 5.000% and (ii) the related Net Rate Cap.

(4)

The Class 1-AIO Certificates are Interest Only Certificates, will not be entitled to distributions in respect of principal and will bear interest on the Class 1-AIO Notional Amount (initially, $700,000,000).

(5)

The Pass-Through Rate on any Distribution Date with respect to the Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, and Class 1-M5 Certificates will be a per annum rate equal to the lesser of (i) One-Month LIBOR for the related Accrual Period plus the related Certificate Margin and (ii) the related Net Rate Cap.

(6)

The Pass-Through Rate on any Distribution Date with respect to the Class 2-1A1, Class 2-1A2, Class 2-2A1, Class 2-2A2, Class 2-2A3, Class 2-2A4, Class 2-2A5, and Class 2-2A6 Certificates will be a per annum rate equal to the lesser of (i) One-Month LIBOR for the related Accrual Period plus the related Certificate Margin and (ii) the related Net Rate Cap.

(7)

The Pass-Through Rate on any Distribution Date with respect to the Class 2-AIO Certificates will be a per annum rate equal to the lesser of (i) 5.000% and (ii) the related Net Rate Cap.

(8)

The Class 2-AIO Certificates are Interest Only Certificates, will not be entitled to distributions in respect of principal and will bear interest on the Class 2-AIO Notional Amount (initially, $300,000,000).

(9)

The Pass-Through Rate on any Distribution Date with respect to the Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class 2-M5, Class 2-M6, Class 2-M7 and Class 2-M8 Certificates will be a per annum rate equal to the lesser of (i) One-Month LIBOR for the related Accrual Period plus the related Certificate Margin and (ii) the related Net Rate Cap.

(10)

The Class 1-C interest will accrue interest at its variable Pass-Through Rate on the Notional Amount of the Class 1-C Certificates outstanding from time to time. For purposes of the REMIC Provisions, Class 1-C interest shall have an initial principal balance of $8,787,751, and the right to receive distributions of such amount represents a regular interest in the Master REMIC.  The Class 1-C interest shall also comprise a notional component, which represents a regular interest in the Master REMIC.  Such component has a notional balance that will at all times equal the aggregate of the Class Principal Amounts of the Middle REMIC 2 Regular Interests, and, for each Distribution Date (and the related Accrual Period) this notional component shall bear interest at a per annum rate equal to the excess, if any, of (i) the weighted average of the interest rates on the Middle REMIC 2 Regular Interests (other than any interest-only regular interest), over (ii) the Group 1 Adjusted WAC. 

(11)

The Class 2-C interest will accrue interest at its variable Pass-Through Rate on the Notional Amount of the Class 2-C Certificates outstanding from time to time. For purposes of the REMIC Provisions, Class 2-C interest shall have an initial principal balance of $4,126,657, and the right to receive distributions of such amount represents a regular interest in the Master REMIC.  The Class 2-C interest shall also comprise a notional component, which represents a regular interest in the Master REMIC.  Such component has a notional balance that will at all times equal the aggregate of the Class Principal Amounts of the Middle REMIC 2 Regular Interests, and, for each Distribution Date (and the related Accrual Period) this notional component shall bear interest at a per annum rate equal to the excess, if any, of (i) the weighted average of the interest rates on the Middle REMIC 2 Regular Interests (other than any interest-only regular interest), over (ii) the Group 2 Adjusted WAC. 

(12)

The Class 1-1P interest  will not accrue interest.  The Class 1-1P interest shall be entitled to Class P Prepayment Charges collected with respect to the Subgroup 1-1 Loans.

(13)

The Class 1-2P interest will not accrue interest.  The Class 1-2P interest shall be entitled to Class P Prepayment Charges collected with respect to the Subgroup 1-2 Loans.

(14)

The Class 2-1P interest will not accrue interest.  The Class 2-1P interest shall be entitled to Class P Prepayment Charges collected with respect to the Subgroup 2-1 Loans.

(15)

The Class 2-2P interest will not accrue interest.  The Class 2-2P interest shall be entitled to Class P Prepayment Charges collected with respect to the Subgroup 2-2 Loans.

(16)

For purposes of the REMIC Provisions, the maximum rate of interest payable on the regular interest evidenced by this Certificate shall not exceed the REMIC Maximum Rate.

Class 1-C REMIC

As provided herein, the Trustee shall elect to treat the segregated pool of assets consisting of the Class 1-C interest in Master REMIC 1 as a REMIC for federal income tax purposes, and such segregated pool of assets shall be designated as the “Class 1-C REMIC.”  The Class 1-C REMIC shall also issue the Class RX-1C Interest, which shall evidence the sole class of “residual interests” in the Class 1-C REMIC for purposes of the REMIC Provisions under federal income tax law.  The following table irrevocably sets forth the designation, the Pass-Through Rate, and the initial aggregate Certificate Principal Balance for the indicated Class of Certificates.  

				
	Designation

	Pass-Through Rate

	Initial Aggregate

Certificate Principal Balance

	Latest Possible

Maturity Date(1)

	Class 1-C 

	(2)

	(2)

	May 25, 2047

_______________

(1)

For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Latest Possible Maturity Date has been designated as the “latest possible maturity date” for each Class of Certificates.

(2)

The Class 1-C Certificate shall be entitled to all amounts distributed with respect to the Class 1-C Certificate in the Master REMIC .  In addition, for purposes of the REMIC Provisions, the Class C Certificate shall represent beneficial ownership of (i) the Group 1 Carryover Reserve Fund, and the Group 1 Cap Account; and (ii) an interest in the notional principal contracts described in Section 9.11 hereof.

Class 2-C REMIC

As provided herein, the Trustee shall elect to treat the segregated pool of assets consisting of the Class 2-C interest in Master REMIC 2 as a REMIC for federal income tax purposes, and such segregated pool of assets shall be designated as the “Class 2-C REMIC.”  The Class 2-C REMIC shall also issue the Class RX-2C Interest, which shall evidence the sole class of “residual interests” in the Class 2-C REMIC for purposes of the REMIC Provisions under federal income tax law.  The following table irrevocably sets forth the designation, the Pass-Through Rate, and the initial aggregate Certificate Principal Balance for the indicated Class of Certificates.  

				
	Designation

	Pass-Through Rate

	Initial Aggregate

Certificate Principal Balance

	Latest Possible

Maturity Date(1)

	Class 2-C 

	(2)

	(2)

	May 25, 2047

_______________

(1)

For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Latest Possible Maturity Date has been designated as the “latest possible maturity date” for each Class of Certificates.

(2)

The Class 2-C Certificate shall be entitled to all amounts distributed with respect to the Class 2-C Certificate in the Master REMIC .  In addition, for purposes of the REMIC Provisions, the Class 2-C Certificate shall represent beneficial ownership of (i) the Group 2 Carryover Reserve Fund, the Group 2 Cap Account, and the Class 2-2A3 Cap Account; and (ii) an interest in the notional principal contracts described in Section 9.11 hereof.

Class 1-1P REMIC

As provided herein, the Trustee shall elect to treat the segregated pool of assets consisting of the Class 1-1P interest issued by Master REMIC 1 as a REMIC for federal income tax purposes, and such segregated pool of assets shall be designated as the “Class 1-1P REMIC.”  The Class 1-1P REMIC shall also issue the Class RX-1-1P Interest, which shall evidence the sole class of “residual interests” in the Class 1-1P REMIC for purposes of the REMIC Provisions under federal income tax law.  The following table irrevocably sets forth the designation, the Pass-Through Rate, and the initial aggregate Certificate Principal Balance for the indicated Class of Certificates.  

				
	Designation

	Pass-Through Rate

	Initial Aggregate

Certificate Principal Balance

	Latest Possible

Maturity Date(1)

	Class 1-1P 

	(2)

	(2)

	May 25, 2047

_______________

(1)

For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Latest Possible Maturity Date has been designated as the “latest possible maturity date” for each Class of Certificates.

(2)

The Class 1-1P Certificate shall be entitled to all amounts distributed with respect to the Class 1-1P Certificate in Master REMIC 1. 

Class 1-2P REMIC

As provided herein, the Trustee shall elect to treat the segregated pool of assets consisting of the Class 1-2P interest issued by Master REMIC 1 as a REMIC for federal income tax purposes, and such segregated pool of assets shall be designated as the “Class 1-2P REMIC.”  The Class 1-2P REMIC shall also issue the Class RX-1-2P Interest, which shall evidence the sole class of “residual interests” in the Class 1-2P REMIC for purposes of the REMIC Provisions under federal income tax law.  The following table irrevocably sets forth the designation, the Pass-Through Rate, and the initial aggregate Certificate Principal Balance for the indicated Class of Certificates.  

				
	Designation

	Pass-Through Rate

	Initial Aggregate

Certificate Principal Balance

	Latest Possible

Maturity Date(1)

	Class 1-2P 

	(2)

	(2)

	May 25, 2047

_______________

(1)

For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Latest Possible Maturity Date has been designated as the “latest possible maturity date” for each Class of Certificates.

(2)

The Class 1-2P Certificate shall be entitled to all amounts distributed with respect to the Class 1-2P Certificate in Master REMIC 1. 

Class 2-1P REMIC

As provided herein, the Trustee shall elect to treat the segregated pool of assets consisting of the Class 2-1P interest issued by Master REMIC 2 as a REMIC for federal income tax purposes, and such segregated pool of assets shall be designated as the “Class 2-1P REMIC.”  The Class 2-1P REMIC shall also issue the Class RX-2-1P Interest, which shall evidence the sole class of “residual interests” in the Class 2-1P REMIC for purposes of the REMIC Provisions under federal income tax law.  The following table irrevocably sets forth the designation, the Pass-Through Rate, and the initial aggregate Certificate Principal Balance for the indicated Class of Certificates.  

				
	Designation

	Pass-Through Rate

	Initial Aggregate

Certificate Principal Balance

	Latest Possible

Maturity Date(1)

	Class 2-1P 

	(2)

	(2)

	May 25, 2047

_______________

(1)

For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Latest Possible Maturity Date has been designated as the “latest possible maturity date” for each Class of Certificates.

(2)

The Class 2-1P Certificate shall be entitled to all amounts distributed with respect to the Class 2-1P Certificate in Master REMIC 2. 

Class 2-2P REMIC

As provided herein, the Trustee shall elect to treat the segregated pool of assets consisting of the Class 2-2P interest issued by Master REMIC 2 as a REMIC for federal income tax purposes, and such segregated pool of assets shall be designated as the “Class 2-2P REMIC.”  The Class 2-2P REMIC shall also issue the Class RX-2-2P Interest, which shall evidence the sole class of “residual interests” in the Class 2-2P REMIC for purposes of the REMIC Provisions under federal income tax law.  The following table irrevocably sets forth the designation, the Pass-Through Rate, and the initial aggregate Certificate Principal Balance for the indicated Class of Certificates.  

				
	Designation

	Pass-Through Rate

	Initial Aggregate

Certificate Principal Balance

	Latest Possible

Maturity Date(1)

	Class 2-2P 

	(2)

	(2)

	May 25, 2047

_______________

(1)

For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Latest Possible Maturity Date has been designated as the “latest possible maturity date” for each Class of Certificates.

(2)

The Class 2-2P Certificate shall be entitled to all amounts distributed with respect to the Class 2-2P Certificate in Master REMIC 2. 

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

Set forth below are designations of Classes of Certificates to the categories used herein:

Book-Entry Certificates

All Classes of Offered Certificates.

Delay Certificates

The Interest Only Certificates.

ERISA-Restricted Certificates

The Offered Certificates (other than the ERISA-Restricted Trust Certificates), any Class of ERISA-Restricted Trust Certificates whose rating has fallen to below AA- or its equivalent upon its acquisition, the Private Certificates, the Residual Certificates and, in general, any Certificates that do not satisfy the applicable ratings requirement under the Underwriter’s Exemption.

ERISA-Restricted Trust 

Certificates

The Class 1-1A1, Class 1-2A1, Class 2-1A1, Class 2-2A1, Class 2-2A2, Class 2-2A3, Class 2-2A4 and Class 2-2A5 Certificates

Group 1 Certificates

The Group 1 Senior Certificates and Group 1 Subordinate Certificates.

Subgroup 1-1 Certificates

The Class 1-1A1 and Class 1-1A2 Certificates.

Subgroup 1-2 Certificates

The Class 1-2A1 and Class 1-2A2 Certificates.

Group 1 Senior Certificates

The Subgroup 1-1 Certificates, Subgroup 1-2 Certificates, and the Class 1-AIO Certificates.

Group 1 Senior Mezzanine 

Certificates

The Class 1-A3 Certificates.

Group 1 Mezzanine Certificates

The Class 1-A3, Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, and Class 1-M5 Certificates.

Group 1 Subordinate Certificates

The Group 1 Mezzanine Certificates and the Class 1-C Certificates.

Group 1 Residual Certificates

The Class 1-R and Class 1-RX Certificates.

Group 2 Certificates

The Group 2 Senior Certificates and Group 2 Subordinate Certificates.

Subgroup 2-1 Certificates

The Class 2-1A1 and Class 2-1A2 Certificates.

Subgroup 2-2 Certificates

The Class 2-2A1, Class 2-2A2, Class 2-2A3, Class 2-2A4, Class 2-2A5 and Class 2-2A6 Certificates.

Group 2 Senior Certificates

The Subgroup 2-1 Certificates, Subgroup 2-2 Certificates, and Class 2-AIO Certificates.

Group 2 Mezzanine Certificates

The Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class 2-M5, Class 2-M6, Class 2-M7 and Class 2-M8 Certificates.

Group 2 Subordinate Certificates

The Group 2 Mezzanine Certificates and the Class 2-C Certificates.

Group 2 Residual Certificates

The Class 2-R and Class 2-RX Certificates.

Senior Certificates

The Group 1 Senior Certificates and Group 2 Senior Certificates.

Mezzanine Certificates

The Group 1 Mezzanine Certificates and Group 2 Mezzanine Certificates.

Subordinate Certificates

The Group 1 Subordinate Certificates and Group 2 Subordinate Certificates.

Class C Certificates

The Class 1-C and Class 2-C Certificates.

Class P Certificates

The Class 1-1P, Class 1-2P, Class 2-1P and Class 2-2P Certificates.

Residual Certificates

The Class 1-R, Class 2-R, Class 1-RX and Class 2-RX Certificates.

Interest Only Certificates

The Class 1-AIO and Class 2-AIO Certificates.

LIBOR Certificates

The Subgroup 1-1 Certificates, Subgroup 1-2 Certificates, Subgroup 2-1 Certificates, Subgroup 2-2 Certificates and Mezzanine Certificates.

Delay Certificates

The Interest Only Certificates.

No Delay Certificates

The LIBOR Certificates.

Offered Certificates

The Senior Certificates and Mezzanine Certificates.

Private Certificates

The Class P Certificates, Class C Certificates and Residual Certificates.

Physical Certificates

The Class C Certificates, Class P Certificates and Residual Certificates.

Regular Certificates

All Classes of Certificates, other than the Residual Certificates.

Rating Agencies

Moody’s, S&P and DBRS.

Defined terms and provisions herein relating to statistical rating agencies not designated above as Rating Agencies shall be of no force or effect.

ARTICLE I

DEFINITIONS

Section 1.01.  Definitions.

Whenever used in this Agreement, the following words and phrases, unless the context otherwise requires, shall have the following meanings:

10-K Filing Deadline:  As defined in Section 9.12.

Account Property:  All amounts and investments held from time to time in a Securities Account (whether in the form of deposit accounts, physical property, book-entry securities, uncertificated securities, securities entitlements, investment property or otherwise), and all proceeds of the foregoing.

Accountant’s Attestation:  As defined in Section 3.22(b)(i).

Accrual Period: With respect to any Distribution Date and the Delay Certificates, the calendar month preceding the month in which such Distribution Date occurs (calculated on a 30/360 day basis).  With respect to the first Distribution Date and the No Delay Certificates, the period from the Closing Date to (but excluding) the first Distribution Date (calculated on an actual/360 day basis).  With respect to each Distribution Date thereafter and the No Delay Certificates, from the prior Distribution Date to (but excluding) the current Distribution Date (calculated on an actual/360 day basis).

Additional Disclosure Notification:  As set forth in Exhibit S.

Additional Form 10-D Disclosure:  As defined in Section 9.12(a)(1).

Additional Form 10-K Disclosure:  As defined in Section 9.12(b)(i).

Adjusted WAC:  For any Distribution Date (and the related Accrual Period), an amount equal to (i) four, multiplied by (ii) the weighted average of the interest rates for such Distribution Date for the Middle REMIC 2 Regular Interests (other than any interest only regular interest), weighted in proportion to their class principal amounts as of the beginning of the related Accrual Period and computed by subjecting the rate on each Middle REMIC 2 Regular Interest that does not correspond to a Class of Certificates to a cap of 0.00%, and by subjecting the rate on each remaining such Middle REMIC 2 Regular Interest to a cap that corresponds to the Pass-Through Rate (determined without regard to the Available Funds Rate Cap) for the Corresponding Class of Certificates, provided, however, that for each Class of No Delay Certificates, the Pass-Through Rate shall be multiplied by an amount equal to (a) the actual number of days in the Accrual Period, divided by (b) 30.

Adjustment Date:  As to each Mortgage Loan, the date on which the Mortgage Rate is adjusted in accordance with the terms of the related Mortgage Note and Mortgage.

Advance:  An advance of principal or interest required to be made by the applicable Servicer pursuant to the related Servicing Agreement or required to be made by the Master Servicer with respect to any Distribution Date pursuant to Section 4.01.

Affiliate:  When used with reference to a specified Person, another Person that (i) directly or indirectly controls or is controlled by or is under common control with the specified Person, (ii) is an officer of, partner in or trustee of, or serves in a similar capacity with respect to, the specified Person or of which the specified Person is an officer, partner or trustee, or with respect to which the specified Person serves in a similar capacity, or (iii) directly or indirectly is the beneficial owner of 10% or more of any class of equity securities of the specified Person or of which the specified Person is directly or indirectly the owner of 10% or more of any class of equity securities.

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

AHM:  American Home Mortgage Servicing, Inc., and its successors and assigns, in its capacity as Servicer of the AHM Mortgage Loans.

AHM Mortgage Loans:  The Mortgage Loans for which AHM is listed as “Servicer” on the Mortgage Loan Schedule.

AHM Servicing Agreement:  Solely with respect to the AHM Mortgage Loans, the Master Loan Purchase and Servicing Agreement, dated as of December 1, 2005, among the Transferor, as initial purchaser, AHM, as seller, and American Home Mortgage Servicing, Inc., as servicer, as the same may be amended from time to time, and any assignments and conveyances related to the AHM Mortgage Loans.

Amount Held for Future Distribution:  As to any related Distribution Date and any Mortgage Loan, the aggregate amount held in the Collection Account at the close of business on the related Servicer Remittance Date with respect to such Mortgage Loan at the close of business on the related Servicer Remittance Date on account of (i) Principal Prepayments received after the related Prepayment Period and Liquidation Proceeds and Insurance Proceeds received in the month of such Distribution Date and (ii) all Scheduled Payments due after the related Due Date.

Annual Statement of Compliance: As defined in Section 3.21(a).

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

Assessment of Compliance:  As defined in Section 3.22(i)(a).

Assignment:  An individual assignment of a Mortgage, notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the jurisdiction wherein the related Mortgaged Property is located to reflect of record the sale or transfer of the Mortgage Loan.

Assignment Agreements:  The following Assignment, Assumption and Recognition Agreements, each dated as of May 15, 2007, whereby certain Servicing Agreements solely with respect to the related Mortgage Loans were assigned to the Depositor for the benefit of the Certificateholders:

(a)

The Assignment, Assumption and Recognition Agreement among AHM, as company, American Home Mortgage Servicing, Inc., as servicer, the Transferor and the Depositor; 

(b)

The Assignment, Assumption and Recognition Agreement among Chevy Chase, the Transferor and the Depositor; 

(c)

The Assignment, Assumption and Recognition Agreement among Countrywide, as company, Countrywide Home Loans Servicing LP, the Trustee, the Transferor and the Depositor;

(d)

The Assignment, Assumption and Recognition Agreement among IndyMac, as company, the Transferor and the Depositor; and

(e)

The Assignment, Assumption and Recognition Agreement among RFC, as company, the Transferor and the Depositor.

Assignment of Proprietary Lease:  With respect to a Cooperative Mortgage Loan, the assignment or mortgage of the related Proprietary Lease from the Mortgagor to the originator of the Cooperative Mortgage Loan.

Available Funds: As to any Distribution Date and any Loan Group or Loan Subgroup, the sum of (a) the Interest Funds for that Loan Group or Loan Subgroup, as applicable, and Distribution Date and (b) the Principal Funds for that Loan Group or Loan Subgroup, as applicable, and that Distribution Date.

Available Funds Rate Cap:  For any Distribution Date and any Loan Group or Loan Subgroup, is the product of:

(i)

the Available Funds for such Loan Group or Loan Subgroup, as applicable, for that Distribution Date, over

(ii)

a fraction, the numerator of which is 12 and the denominator of which is the aggregate Stated Principal Balance of the Loans in such Loan Group or Loan Subgroup, as applicable, as of the Due Date occurring in the month preceding the month of that Distribution Date (after giving effect to principal prepayments in the Prepayment Period related to that prior Due Date).

Bankruptcy Code:  The United States Bankruptcy Reform Act of 1978, as amended.

Book-Entry Certificates:  As specified in the Preliminary Statement.

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

Cap Account:  Any of the Group 1 Certificate Cap Account, the Group 1 Basis Risk Cap Account, the Group 2 Certificate Cap Account, the Group 2 Basis Risk Cap Account and the Class 2-2A3 Basis Risk Cap Account.

Cap Contracts:  The Group 1 Certificate Cap Contract, the Group 1 Basis Risk Cap Contract, the Group 2 Certificate Cap Contract, the Group 2 Basis Risk Cap Contract, and the Class 2-2A3 Basis Risk Cap Contract.

Cap Provider:  Swiss Re Financial Products Corporation.

Cenlar:  Cenlar, FSB, and its successors and assigns, in its capacity as Servicer of the Cenlar Mortgage Loans.

Cenlar Serviced Mortgage Loans:  The Mortgage Loans for which Cenlar is listed as “Servicer” on the Mortgage Loan Schedule.

Cenlar Servicing Agreement:  Solely with respect to the Cenlar Serviced Mortgage Loans, the Servicing Agreement, dated as of January 1, 2006 by and among the Master Servicer, UBS Real Estate Securities Inc., as seller, and Cenlar, as servicer, as the same may be amended from time to time.

Certificate:  Any one of the Certificates executed by the Trust Administrator on behalf of the Trust and authenticated by the Trust Administrator in substantially the forms attached hereto as Exhibits A through F.

Certificate Factor: With respect to any Class of Regular Certificates as of any Distribution Date, a fraction, expressed as a decimal carried to at least six places, the numerator of which is the aggregate Certificate Principal Balance (or the Notional Amount, in the case of the Class C Certificates) of such Class of Certificates on such Distribution Date (after giving effect to any distributions of principal and allocations of Realized Losses in reduction of the Certificate Principal Balance (or the Notional Amount, in the case of the Class C Certificates) of such Class of Certificates to be made on such Distribution Date), and the denominator of which is the initial aggregate Certificate Principal Balance (or the Notional Amount, in the case of the Class C Certificates) of such Class of Certificates as of the Closing Date.

Certificate Group:  The Group 1 Certificates and Group 2 Certificates, as applicable.

Certificate Insurance Policy:  The Financial Guaranty Insurance Policy No. 51834-N issued by the Certificate Insurer in respect of the Insured Certificates, including any endorsements thereto.

Certificate Insurer:  Financial Security Assurance Inc., a New York stock insurance company, and its successors in interest.

Certificate Insurer Default: As defined in Section 12.04(j)

Certificate Insurer Fee Rate:  0.060% per annum.

Certificate Margin:  The certificate margin with respect to each Class of LIBOR Certificates will be as set forth below:

			
	 
	Margin

	Class

	(1)

	(2)

	1-1A1

	0.175%

	0.350%

	1-1A2

	0.175%

	0.350%

	1-2A1

	0.200%

	0.400%

	1-2A2

	0.200%

	0.400%

	1-A3

	0.430%

	0.860%

	1-M1

	0.850%

	1.275%

	1-M2

	1.100%

	1.650%

	1-M3

	1.350%

	2.025%

	1-M4

	1.850%

	2.775%

	1-M5

	2.500%

	3.750%

	2-1A1

	0.175%

	0.350%

	2-1A2

	0.175%

	0.350%

	2-2A1

	0.110%

	0.220%

	2-2A2

	0.210%

	0.420%

	2-2A3

	0.300%

	0.600%

	2-2A4

	0.300%

	0.600%

	2-2A5

	0.340%

	0.680%

	2-2A6

	0.200%

	0.400%

	2-M1

	0.400%

	0.600%

	2-M2

	0.450%

	0.675%

	2-M3

	0.650%

	0.975%

	2-M4

	0.850%

	1.275%

	2-M5

	1.100%

	1.650%

	2-M6

	1.200%

	1.800%

	2-M7

	2.500%

	3.750%

	2-M8

	2.500%

	3.750%

(1)

For each Distribution Date through and including the first possible Group 1 Optional Termination Date or Group 2 Optional Termination Date, as applicable.

(2)

For each Distribution Date after the first possible Group 1 Optional Termination Date or Group 2 Optional Termination Date, as applicable.

Certificate Owner:  With respect to a Book-Entry Certificate, the Person who is the beneficial owner of such Book-Entry Certificate.

Certificate Principal Balance:  With respect to any Certificate (other than the Interest Only Certificates and Class C Certificates) at any date, the maximum dollar amount of principal to which the Holder thereof is then entitled under this Agreement, such amount being equal to the Denomination of that Certificate (A) plus any increase to the Certificate Principal Balance of such Certificate pursuant to Section 4.02 due to the receipt of Subsequent Recoveries and (B) minus the sum of (i) all distributions of principal previously made with respect to that Certificate; provided, however, that solely for purposes of determining the Premium Distribution Amount payable to the Certificate Insurer and the Certificate Insurer’s rights as subrogee to the Holders of the Insured Certificates, the Certificate Principal Balance of any Insured Certificate shall be deemed not to be reduced by any principal amounts paid to the Holder thereof from payments made by the Certificate Insurer under the Certificate Insurance Policy, unless such amounts have been reimbursed to the Certificate Insurer pursuant to Section 4.02, and (ii)  any Applied Realized Loss Amounts allocated to such Certificate on previous Distribution Dates pursuant to Section 4.02(c) without duplication; provided, however, that to the extent that any Realized Loss was paid under the Certificate Insurance Policy, any Subsequent Recoveries payable to any of the Insured Certificates shall be payable to the Certificate Insurer.  With respect to each Class 1-C Certificate as of any date of determination, an amount equal to the Percentage Interest evidenced by such Certificate times the excess, if any, of (A) the then aggregate Uncertificated Balance of the Middle REMIC 2 Regular Interests over (B) the then aggregate Certificate Principal Balance of the Group 1 Senior Certificates and the Group 1 Mezzanine Certificates then outstanding.  With respect to each Class 2-C Certificate as of any date of determination, an amount equal to the Percentage Interest evidenced by such Certificate times the excess, if any, of (A) the then aggregate Uncertificated Balance of the Middle REMIC 2 Regular Interests over (B) the then aggregate Certificate Principal Balance of the Group 2 Senior Certificates and the Group 2 Mezzanine Certificates then outstanding.

Certificate Register:  The register maintained pursuant to Section 5.02 hereof.

Certificate Subgroup:  The Subgroup 1-1 Certificates, Subgroup 1-2 Certificates, Subgroup 2-1 Certificates and Group 2-2 Certificates, as applicable.

Certificateholder or Holder:  The person in whose name a Certificate is registered in the Certificate Register, except that, solely for the purpose of giving any consent pursuant to this Agreement, any Certificate registered in the name of the Master Servicer or the Depositor or any affiliate of the Master Servicer or the Depositor, as applicable, shall be deemed not to be Outstanding and the Percentage Interest evidenced thereby shall not be taken into account in determining whether the requisite amount of Percentage Interests necessary to effect such consent has been obtained; provided, however, that if any such Person (including the Master Servicer or the Depositor) owns 100% of the Percentage Interests evidenced by a Class of Certificates, such Certificates shall be deemed to be Outstanding for purposes of any provision hereof that requires the consent of the Holders of Certificates of a particular Class as a condition to the taking of any action hereunder.  The Trust Administrator is entitled to rely conclusively on a certification of the Master Servicer or the Depositor or any affiliate of the Master Servicer or the Depositor, as applicable, in determining which Certificates are registered in the name of an affiliate of the Master Servicer or the Depositor.

Certification:  As specified in Section 9.12(d).

Certification Parties:  As defined in Section 9.12.

Certifying Person: As defined in Section 9.12.

Chevy Chase:  Chevy Chase Mortgage Servicing, Inc., and its successors and assigns, in its capacity as Servicer of the Chevy Chase Mortgage Loans.

Chevy Chase Mortgage Loans:  The Mortgage Loans for which Chevy Chase is listed as “Servicer” on the Mortgage Loan Schedule.

Chevy Chase Servicing Agreement:  Solely with respect to the Chevy Chase Mortgage Loans, the Amended and Restated Master Loan Purchase and Servicing Agreement, dated as of July 1, 2005, as amended and restated to and including June 1, 2006, between the Transferor, as initial purchaser, and Chevy Chase Bank, F.S.B., as seller and servicer, as the same may be amended from time to time, and any assignments and conveyances related to the Chevy Chase Mortgage Loans.

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

Class 1-1P REMIC:  As specified in the Preliminary Statement.

Class 1-1P Reserve Fund:  The account established and maintained by the Trust Administrator pursuant to Section 3.07(o).

Class 1-2P REMIC:  As specified in the Preliminary Statement.

Class 1-2P Reserve Fund:  The account established and maintained by the Trust Administrator pursuant to Section 3.07(p).

Class 2-1P REMIC:  As specified in the Preliminary Statement.

Class 2-1P Reserve Fund:  The account established and maintained by the Trust Administrator pursuant to Section 3.07(q).

Class 2-2A3 Basis Risk Cap Account: A segregated trust account established and maintained by the Trust Administrator pursuant to 3.07(n) of this agreement in which payments received from the Cap Provider will be deposited.

Class 2-2A3 Basis Risk Cap Contract: The cap contract between the Cap Provider and the Supplemental Interest Trust Trustee relating to the Certificates in the form attached hereto as Exhibit O-5.

Class 2-2A3 Basis Risk Cap Contract Termination Date:  The Distribution Date in May 2027.

Class 2-2P REMIC:  As specified in the Preliminary Statement.

Class 2-2P Reserve Fund:  The account established and maintained by the Trust Administrator pursuant to Section 3.07(r).

Class C Certificate: Any one of the Class C Certificates executed, authenticated and delivered by the Trust Administrator, substantially in the form annexed hereto as Exhibit D-1.

Class C REMIC:  As specified in the Preliminary Statement.

Class P Certificate: Any one of the Class P Certificates executed, authenticated and delivered by the Trust Administrator, substantially in the form annexed hereto as Exhibit D-2.

Class P Prepayment Charges:  Any prepayment premium, penalty or charge to which the Trust is entitled with respect to the Mortgage Loans identified on Schedule VIII attached hereto.

Class Principal Balance:  With respect to any Class of Certificates (other than the Interest Only Certificates) and as to any date of determination, the aggregate of the Certificate Principal Balances of all Certificates of such Class as of such date.  The Interest Only Certificates do not have Class Principal Balances.

Clearstream: Clearstream Banking Luxembourg, formerly known as Cedelbank SA.

Closing Date:  May 15, 2007.

Code:  The Internal Revenue Code of 1986, including any successor or amendatory provisions.

Collection Account:  The separate Eligible Account or Accounts created and maintained by the Master Servicer pursuant to Section 3.07 with a depository institution in the name of the Master Servicer for the benefit of the Trustee on behalf of Certificateholders and designated “Wells Fargo Bank, N.A., for the benefit of U.S. Bank National Association, in trust for the registered Holders of MASTR Adjustable Rate Mortgages Trust 2007-3, Mortgage Pass-Through Certificates, Series 2007-3.”  The Collection Account may be deemed to be a sub-account of the Distribution Account.

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

Compensating Interest:  With respect to any Distribution Date and any Servicer, the amount required to be paid by such Servicer under the related Servicing Agreement in connection with Prepayment Interest Shortfalls that occur on Mortgage Loans serviced by such Servicer for the related Distribution Date.  

Control Person:  As defined in Section 8.05.

Cooperative Corporation: With respect to any Cooperative Mortgage Loan, the cooperative apartment corporation that holds legal title to the related Cooperative Property and grants occupancy rights to units therein to stockholders through Proprietary Leases or similar arrangements.

Cooperative Lien Search:  A search for (a) federal tax liens, mechanics’ liens, lis pendens, judgments of record or otherwise against (i) the Cooperative Corporation and (ii) the seller of the Cooperative Unit, (b) filings of Financing Statements and (c) the deed of the Cooperative Property into the Cooperative Corporation.

Cooperative Mortgage Loan:  A Mortgage Loan that is secured by a second lien on and a perfected security interest in Cooperative Shares and the related Proprietary Lease granting exclusive rights to occupy the related Cooperative Unit in the building owned by the related Cooperative Corporation.

Cooperative Property:  With respect to any Cooperative Mortgage Loan, all real property and improvements thereto and rights therein and thereto owned by a Cooperative Corporation including without limitation the land, separate dwelling units and all common elements.

Cooperative Shares:  With respect to any Cooperative Mortgage Loan, the shares of stock issued by a Cooperative Corporation and allocated to a Cooperative Unit and represented by stock certificates.

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

Corporate Trust Office:  With respect to the Trustee, the designated office of the Trustee at which at any particular time its corporate trust business with respect to this Agreement shall be administered, which office at the date of execution of this Agreement is located at EP-MN-WS3D, 60 Livingston Avenue, St. Paul, Minnesota 55107, Attention: Structured Finance—MASTR Adjustable Rate Mortgages Trust 2007-3, which is the address to which appropriate notices to and correspondence with the Trustee should be directed

With respect to the Trust Administrator, the designated office of the Trust Administrator at which at any particular time its corporate trust business with respect to this Agreement shall be administered, which office at the date of execution of this Agreement is located for certificate transfer purposes at Wells Fargo Center, Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479, Attention: Corporate Trust Services—MARM 2007-3, and for all other purposes at 9062 Old Annapolis Road, Columbia Maryland 21045, Attention: Client Manager—MARM 2007-3.

Corresponding Class:  With respect to any interest in Middle REMIC 1 or Middle REMIC 2, the Corresponding Class of Certificates identified in the table for Middle REMIC 1 or Middle REMIC 2, as applicable, in the Preliminary Statement.  

Corresponding Middle REMIC 1 IO:  With respect to each Subsidiary REMIC 1 Regular Interest having an “AIO” in its class designation, the Middle Tier REMIC 1 Regular Interest having an “AIO” in its class designation that has the same numeric designation.

Corresponding Middle REMIC 2 IO:  With respect to each Subsidiary REMIC 2 Regular Interest having an “AIO” in its class designation, the Middle Tier REMIC 2 Regular Interest having an “AIO” in its class designation that has the same numeric designation.

Countrywide:  Countrywide Home Loans, Inc., and its successors and assigns.

Countrywide Mortgage Loans:  The Mortgage Loans for which Countrywide Home Loans Servicing L.P. is listed as “Servicer” on the Mortgage Loan Schedule.

Countrywide Servicing Agreement: Solely with respect to the Countrywide Serviced Mortgage Loans, the Mortgage Loan Purchase and Servicing Agreement, dated as of November 1, 2001, between the Transferor, as purchaser, and Countrywide Home Loans, Inc., as seller and as servicer, as amended by Amendment Reg AB, dated as of March 1, 2006, and any other related amendments thereto, and any assignments and conveyances related to the Countrywide Mortgage Loans (as modified pursuant to the related Assignment Agreement).

Covered Mortgage Loan:  A Mortgage Loan categorized as Covered pursuant to Appendix E of Standard & Poor’s Glossary.

Credit Risk Manager:  Wells Fargo Bank, N.A.

Current Interest:  With respect to each Class of Offered Certificates and each Distribution Date, the interest accrued at the applicable Pass-Through Rate for the applicable Accrual Period on the Class Principal Balance of such Class immediately prior to such Distribution Date, reduced by any Prepayment Interest Shortfalls not covered by Compensating Interest Payments and Relief Act Reductions (allocated to each such Certificate based on its respective entitlements to interest irrespective of any Prepayment Interest Shortfalls and Relief Act Reductions for such Distribution Date).

Custodian:  Wells Fargo, in its capacity as custodian hereunder, and its successor and assigns or any successor Custodian hereunder.

Cut-off Date:  April 1, 2007.

Cut-off Date Principal Balance:  With respect to the Group 1 Mortgage Loans, the aggregate Principal Balance of the Group 1 Mortgage Loans as of the close of business on the Cut-off Date, which amount is equal to $1,757,619,751.  With respect to the Group 2 Mortgage Loans, the aggregate Principal Balance of the Group 2 Mortgage Loans as of the close of business on the Cut-off Date, which amount is equal to $825,261,657.

DBRS:  DBRS, Inc., or any successor thereto.  If DBRS is designated as a Rating Agency in the Preliminary Statement, for purposes of Section 11.05(b), the address for notices to DBRS shall be 140 Broadway, 35th Floor, New York, NY 10005, or such other address as DBRS may hereafter furnish to each party to this Agreement.

Deferred Interest: With respect to each Mortgage Loan and each related Due Date, the excess, if any, of the amount of interest accrued on such Mortgage Loan from the preceding Due Date to such Due Date over the monthly payment due for such Due Date. 

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

Definitive Certificates:  Any Physical Certificate issued pursuant to Section 5.02(e).

Delay Certificates:  As specified in the Preliminary Statement.

Deleted Mortgage Loan:  Any Mortgage Loan that is replaced or required to be replaced pursuant to Section 2.02 or 2.03. 

Delinquent: With respect to any Mortgage Loan, means that any monthly payment with respect to such Mortgage Loan that is due on a Due Date is not made by the close of business on the next scheduled Due Date for such Mortgage Loan. A Mortgage Loan is “30 days Delinquent” if such monthly payment has not been received by the close of business on the corresponding day of the month immediately succeeding the month in which such monthly payment was due or, if there was no such corresponding day (e.g., as when a 30-day month follows a 31-day month in which a payment was due on the 31st day of such month), then on the last day of such immediately succeeding month; and similarly for “60 days Delinquent” and “90 days Delinquent,” etc. (in each case, after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period). 

Denomination:  With respect to each Certificate, the amount set forth on the face thereof as the “Initial Certificate Principal Balance of this Certificate” or the “Initial Notional Amount of this Certificate” or, if neither of the foregoing, the Percentage Interest appearing on the face thereof.

Depositor:  Mortgage Asset Securitization Transactions, Inc., a Delaware corporation, or its successor in interest.

Depository:  The initial Depository shall be The Depository Trust Company, the nominee of which is CEDE & Co., as the registered Holder of the Book-Entry Certificates.  The Depository shall at all times be a “clearing corporation” as defined in Section 8-102(a)(5) of the Uniform Commercial Code of the State of New York.

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

Determination Date:  The date on which a Servicer is required to determine the amount it is required to advance pursuant to the applicable Servicing Agreement.

Distribution Account:  The separate Eligible Account created and maintained by the Trust Administrator pursuant to Section 3.07 in the name of the Trustee for the benefit of the Certificateholders and the Certificate Insurer and designated “U.S. Bank National Association in trust for registered holders of MASTR Adjustable Rate Mortgages Trust 2007-3, Mortgage Pass-Through Certificates, Series 2007-3.”  Funds in the Distribution Account shall be held in trust for the Certificateholders and the Certificate Insurer for the uses and purposes set forth in this Agreement. 

Distribution Account Deposit Date:  As to any Distribution Date, one Business Day prior to such Distribution Date.

Distribution Date:  The Distribution Date shall be the 25th day of each calendar month after the initial issuance of the Certificates, or if such 25th day is not a Business Day, the next succeeding Business Day, commencing in May 2007.

Distribution Date Statement:  The statement delivered to the Certificateholders pursuant to Section 4.04.

DTC: The Depository Trust Company.

Due Date: With respect to each Mortgage Loan, the date on which the Scheduled Payment is due each month.  

Due Period:  With respect to each Distribution Date, the period commencing on the second day of the month preceding the month of the Distribution Date and ending on the first day of the month of the Distribution Date.

Eligible Account:  Either (i) an account or accounts maintained with a federal or state chartered depository institution or trust company the short term unsecured debt obligations of which (or, in the case of a depository institution or trust company that is the principal subsidiary of a holding company, the debt obligations of such holding company) have the highest short term ratings of each of S&P, Moody’s and Fitch at the time any amounts are held on deposit therein, or (ii) an account or accounts in a depository institution or trust company in which such accounts are insured by the FDIC (to the limits established by the FDIC) and the uninsured deposits in which accounts are otherwise secured such that, as evidenced by an Opinion of Counsel delivered to the Trust Administrator, the Certificate Insurer and the NIMS Insurer, the Trust Administrator, the Certificate Insurer and the NIMS Insurer have a claim with respect to the funds in such account that is superior to claims of any other depositors or creditors of the depository institution or trust company in which such account is maintained (provided that the ratings of the Rating Agencies with respect to the Certificates shall not be downgraded or withdrawn) or (iii) a segregated trust account or accounts maintained with the corporate trust department of a federal depository institution or state-chartered depository institution subject to regulations regarding fiduciary funds on deposit similar to Title 12 of the U.S. Code of Federal Regulation Section 9.10(b), which, in either case, has corporate trust powers and is acting in its fiduciary capacity. Eligible Accounts may bear interest and may include, if otherwise qualified under this definition, accounts maintained by the Trust Administrator.

Eligible Substitute Mortgage Loan:  With respect to a Mortgage Loan substituted by the Transferor for a Deleted Mortgage Loan, a Mortgage Loan which must, on the date of such substitution, (i) have a Principal Balance, (or, in the case of a substitution of more than one mortgage loan for a Deleted Mortgage Loan, an aggregate Principal Balance), not in excess of, and not more than 10% less than the Principal Balance of the Deleted Mortgage Loan; (ii) be accruing interest at a rate no lower than and not more than 1% per annum higher than, that of the Deleted Mortgage Loan; (iii) have a Loan-to-Value Ratio no higher than that of the Deleted Mortgage Loan; (iv) have a remaining term to maturity no greater than (and not more than one year less than that of) the Deleted Mortgage Loan; (v) comply with each representation and warranty set forth in Section 2.03 hereof; (vi) be the same credit grade category as the Deleted Mortgage Loan; (vii) have the same prepayment penalty term; and (viii) not be a Cooperative Mortgage Loan unless the Deleted Mortgage Loan was a Cooperative Mortgage Loan.  

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

ERISA Qualifying Underwriting:  A best efforts or firm commitment underwriting or private placement that meets the requirements (without regard to the ratings requirements) of an Underwriter’s Exemption.

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

Euroclear: The Euroclear System.

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

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

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

Final Certification:  With respect to the Custodian, the certification required to be delivered by the Custodian not later than 90 days after the Closing Date to the Depositor, the Trustee and the Transferor in the form annexed hereto as Exhibit H pursuant to Section 2.02 of this Agreement.

Financing Statement:  A financing statement in the form of a UCC-1 or UCC-3, as applicable, filed pursuant to the Uniform Commercial Code to perfect a security interest in the Cooperative Shares and Pledge Instruments.

Fitch:  Fitch, Inc., or any successor thereto.  If Fitch is designated as a Rating Agency in the Preliminary Statement, for purposes of Section 11.05(b), the address for notices to Fitch shall be One State Street Plaza, New York, NY 10004, Attention:  MBS Monitoring MASTR Adjustable Rate Mortgages Trust 2007-3, or such other address as Fitch may hereafter furnish to each party to this Agreement.

Form 8-K Disclosure Information:  As defined in Section 9.12(c)(i).

Freddie Mac:  Freddie Mac, a corporate instrumentality of the United States created and existing under Title III of the Emergency Home Finance Act of 1970, as amended, or any successor thereto.

Group:  With respect to the Certificates, the related Certificate Group or Certificate Subgroup, and with respect to the Mortgage Loans, the related Loan Group or Loan Subgroup.

Group 1 Applied Realized Loss Amount: With respect to any Distribution Date, the amount, if any, by which the aggregate Class Principal Balance of all Classes of Group 1 Certificates (other than the Class 1-AIO Certificates and after all distributions of principal on such Distribution Date) exceeds the aggregate Stated Principal Balance of the Group 1 Loans as of the Due Date in the month of such Distribution Date.

Group 1 Auction Initiator:  The Class 1-C Certificateholder; provided, that if the Class 1-C Certificateholder has not exercised its rights to initiate an auction under Section 10.01 on any date on which the Class 1-C Certificateholder is entitled to do so, and the Master Servicer has not exercised its termination rights under Section 10.01 on any date on which the Master Servicer is entitled to do so, the Auction Initiator shall be the Certificate Insurer.

Group 1 Auction Date:  As defined in Section 10.01.

Group 1 Auction Purchaser:  As defined in Section 10.01.

Group 1 Auction Sale Price:  As defined in Section 10.01.

Group 1 Basic Principal Distribution Amount: With respect to each Distribution Date, the lesser of:

(a)

the aggregate Class Principal Balance of the Group 1 Senior Certificates (other than the Class 1-AIO Certificates) and Group 1 Mezzanine Certificates immediately prior to such Distribution Date, and

(b)

the excess, if any, of (a) the Principal Funds for Loan Group 1 for such Distribution Date over (b) the Group 1 Overcollateralization Release Amount for such Distribution Date.

Group 1 Basis Risk Cap Account: A segregated trust account established and maintained by the Trust Administrator pursuant to 3.07(k) of this agreement in which payments received from the Cap Provider will be deposited.

Group 1 Basis Risk Cap Contract: The cap contract between the Cap Provider and the Supplemental Interest Trust Trustee relating to the Certificates in the form attached hereto as Exhibit O-1.

Group 1 Basis Risk Cap Contract Termination Date:  The Distribution Date in August 2015.

Group 1 Carryover Reserve Fund:  The account established and maintained by the Trust Administrator pursuant to Section 3.07(h).

Group 1 Certificate Cap Account: A segregated trust account established and maintained by the Trust Administrator pursuant to 3.07(j) of this agreement in which payments received from the Cap Provider will be deposited.

Group 1 Certificate Cap Contract: The cap contract between the Cap Provider and the Supplemental Interest Trust Trustee relating to the Group 1 Certificates in the form attached hereto as Exhibit O-2.

Group 1 Certificate Cap Contract Termination Date:  The Distribution Date on which the aggregate Class Principal Balance of the Group 1 Senior Certificates and Group 1 Mezzanine Certificates is reduced to zero.

Group 1 Certificate Insurer Reimbursement Amount: With respect to any Distribution Date, the sum of the Subgroup 1-1 Certificate Insurer Reimbursement Amount and the Subgroup 1-2 Certificate Insurer Reimbursement Amount.

Group 1 Certificates:  As specified in the Preliminary Statement.

Group 1 Cumulative Loss Trigger Event:  A Group 1 Cumulative Loss Trigger Event is in effect with respect to a Distribution Date on or after the Stepdown Date if the aggregate amount of Realized Losses on the Group 1 Mortgage Loans from (and including) the Cut-off Date for each such Group 1 Mortgage Loan to (and including) the related Due Date (reduced by the aggregate amount of Subsequent Recoveries received from the Cut-off Date through the Prepayment Period related to that Due Date) exceeds the applicable percentage, for such Distribution Date, of the aggregate Stated Principal Balance of the Group 1 Mortgage Loans as of the Cut-off Date, as set forth below:

		
	Distribution Date

	Percentage

	May 2009 – April 2010

	0.30% with respect to May 2009, plus an additional 1/12th of 0.45% for each month thereafter through April 2010.

	May 2010 – April 2011

	0.75% with respect to May 2010, plus an additional 1/12th of 0.55% for each month thereafter through April 2011.

	May 2011 – April 2012

	1.30% with respect to May 2011, plus an additional 1/12th of 0.60% for each month thereafter through April 2012.

	May 2012 – April 2013

	1.90% with respect to May 2012, plus an additional 1/12th of 0.70% for each month thereafter through April 2013.

	May 2013 – April 2014

	2.60% with respect to May 2013, plus an additional 1/12th of 0.250% for each month thereafter through April 2014.

	May 2014 and thereafter

	2.85%

Group 1 Delinquency Trigger Event:  A Group 1 Delinquency Trigger Event is in effect with respect to a Distribution Date on or after the Group 1 Stepdown Date if the Group 1 Rolling Sixty Day Delinquency Rate equals or exceeds the product of (i) 23.333% and the Group 1 Senior Enhancement Percentage for any Distribution Date prior to the Distribution Date in May 2012 and (ii) 29.167% and the Group 1 Senior Enhancement Percentage for any Distribution Date on or after the Distribution Date in May 2012.

Group 1 Loans:  Those Mortgage Loans identified on the Mortgage Loan Schedule as Group 1 Loans.

Group 1 Mezzanine Certificates:  As defined in the Preliminary Statement.

Group 1 Mezzanine Principal Distribution Amount:  For any Class of Group 1 Mezzanine Certificates and Distribution Date, the excess of:

(a)

the sum of:

(i)

the aggregate Class Principal Balance of the Group 1 Senior Certificates (other than the Class 1-AIO Certificates) after taking into account the distribution of the Group 1 Senior Principal Distribution Amount for such Distribution Date,

(ii)

the aggregate Class Principal Balance of any Class(es) of Group 1 Mezzanine Certificates that are senior to the subject Class (in each case, after taking into account the distribution of the applicable Group 1 Mezzanine Principal Distribution Amount(s) for such more senior Class(es) of Group 1 Certificates for such Distribution Date), and

(iii)

the Class Principal Balance of such Class of Group 1 Mezzanine Certificates immediately prior to such Distribution Date, over

(b)

the lesser of (a) the product of (x) 100% minus the applicable Stepdown Target Subordination Percentage for the subject Class of Group 1 Mezzanine Certificates for that Distribution Date and (y) the aggregate Stated Principal Balance of the Group 1 Loans as of the Due Date in the month of that Distribution Date (after giving effect to principal prepayments received in the related Prepayment Period) and (b) the aggregate Stated Principal Balance of the Group 1 Loans as of the Due Date in the month of that Distribution Date (after giving effect to principal prepayments received in the related Prepayment Period) minus the OC Floor for Loan Group 1;  provided, however, that if the Class Principal Balance of each Class of Group 1 Senior Certificates has been reduced to zero, and such Class of Group 1 Mezzanine Certificates is the only Class of Group 1 Mezzanine Certificates outstanding on such Distribution Date, that Class will be entitled to receive the entire remaining Group 1 Principal Distribution Amount until its Class Principal Balance is reduced to zero.

Group 1 Net Monthly Excess Cashflow:  With respect to any Distribution Date, the sum for such Distribution Date of (a) any Group 1 Overcollateralization Release Amount and (b) the excess of (x) the Available Funds for Loan Group 1 for such Distribution Date over (y) the sum for such Distribution Date of (A) the Current Interest for the Group 1 Senior Certificates and Group 1 Mezzanine Certificates, (B) the Interest Carry Forward Amount for the Group Senior Certificates, (C) the Group 1 Principal Distribution Amount and (D) the Group 1 Premium Distribution Amount.

Group 1 Optional Termination:  The termination of the portion of the Trust created hereunder related to Loan Group 1 in connection with the auction or purchase of the Mortgage Loans pursuant to Section 10.01 hereof.

Group 1 Optional Termination Date:  As specified in Section 10.01(a) hereof.

Group 1 Overcollateralization Amount: With respect to any Distribution Date, an amount equal to the excess, if any, of (i) the aggregate Stated Principal Balance of the Group 1 Loans as of the Due Date in the month of that Distribution Date (after giving effect to Principal Prepayments received in the related Prepayment Period) over (ii) the sum of the aggregate Class Principal Balance of the Group 1 Senior Certificates and the Group 1 Mezzanine Certificates as of such Distribution Date (after giving effect to distributions of the Group 1 Principal Distribution Amount to be made on such Distribution Date).

Group 1 Overcollateralization Deficiency Amount: With respect to any Distribution Date, the amount, if any, by which the Group 1 Overcollateralization Target Amount for such Distribution Date exceeds the Group 1 Overcollateralization Amount for such Distribution Date (after giving effect to distributions in respect of the Principal Funds for Loan Group 1 on such Distribution Date but before giving effect to any other distributions on the Group 1 Certificates in reduction of their respective Class Principal Balances on such Distribution Date).

Group 1 Overcollateralization Maintenance Amount: With respect to any Distribution Date, the lesser of (a) the Group 1 Net Monthly Excess Cashflow for such Distribution Date and (b) the Group 1 Overcollateralization Deficiency Amount for such Distribution Date.

Group 1 Overcollateralization Release Amount: With respect to any Distribution Date, the lesser of (x) the Principal Funds for Loan Group 1 for such Distribution Date and (y) the excess, if any, of (i) the Group 1 Overcollateralization Amount for such Distribution Date (assuming that 100% of the Principal Funds for Loan Group 1 is applied as a principal payment on such Distribution Date and without giving effect to any other distributions on the Certificates in reduction of their respective Class Principal Balances on such Distribution Date) over (ii) the Group 1 Overcollateralization Target Amount for such Distribution Date.

Group 1 Overcollateralization Target Amount:  With respect to any Distribution Date (a) prior to the Group 1 Stepdown Date, an amount equal to 0.50% of the aggregate Stated Principal Balance of the Group 1 Loans as of the Cut-off Date and (b) on or after the Group 1 Stepdown Date, the greater of (i) (x) for any Distribution Date on or after the Group 1 Stepdown Date but prior to the Distribution Date in May 2013, an amount equal to 1.25% of the aggregate Stated Principal Balance of the Group 1 Loans as of the Due Date in the month of that Distribution Date (after giving effect to principal prepayments received in the related Prepayment Period) and (y) for any Distribution Date on or after the Group 1 Stepdown Date and on or after the Distribution Date in May 2013, an amount equal to 1.00% of the aggregate Stated Principal Balance of the Group 1 Loans as of the Due Date in the month of that Distribution Date (after giving effect to principal prepayments received in the related Prepayment Period) and (ii) the OC Floor for Loan Group 1; provided, however, that if a Group 1 Trigger Event is in effect on any Distribution Date, the Group 1 Overcollateralization Target Amount will be the Group 1 Overcollateralization Target Amount as in effect for the prior Distribution Date.

Group 1 Premium Distribution Amount:   With respect to any Distribution Date, the sum of the Subgroup 1-1 Premium Distribution Amount and the Subgroup 1-2 Premium Distribution Amount for such Distribution Date.

Group 1 Principal Distribution Amount:  With respect to each Distribution Date, the sum of (i) the Group 1 Basic Principal Distribution Amount for such Distribution Date and (ii) the Group 1 Overcollateralization Maintenance Amount for such Distribution Date.

Group 1 Rolling Sixty-Day Delinquency Rate:   With respect to any Distribution Date on or after the Group 1 Stepdown Date, the average of the Group 1 Sixty-Day Delinquency Rates for the two immediately preceding Distribution Dates.

Group 1 Senior Enhancement Percentage:  With respect to any Distribution Date on or after the Group 1 Stepdown Date, a fraction (expressed as a percentage):

(a)

the numerator of which is the sum of:

(i)

the aggregate Class Principal Balance of the Group 1 Mezzanine Certificates immediately prior to that Distribution Date and

(ii)

the Group 1 Overcollateralization Amount, in each case prior to the distribution of the Group 1 Principal Distribution Amount on such Distribution Date, and,

(b)

the denominator of which is the aggregate Stated Principal Balance of the Group 1  Loans after giving effect to distributions to be made on that Distribution Date.

Group 1 Senior Principal Distribution Amount:  With respect to each Distribution Date, the aggregate of the Subgroup 1-1 Senior Principal Distribution Amount and the Subgroup 1-2 Senior Principal Distribution Amount.

Group 1 Sixty-Day Delinquency Rate:   With respect to any Distribution Date on or after the Group 1 Stepdown Date, a fraction, expressed as a percentage, the numerator of which is the aggregate Stated Principal Balance for such Distribution Date of all Group 1 Loans that were 60 or more days Delinquent as of the close of business on the last day of the calendar month preceding such Distribution Date (including Group 1 Loans in foreclosure, bankruptcy and REO Properties) and the denominator of which is the aggregate Stated Principal Balance for such Distribution Date of the Group 1 Loans as of the related Due Date (after giving effect to principal prepayments in the Prepayment Period related to that prior Due Date).

Group 1 Stepdown Date:   The earlier to occur of:

(a)

the Distribution Date following the Distribution Date on which the aggregate Class Principal Balance of the Group 1 Senior Certificates (other than the Class 1-AIO Certificates) is reduced to zero, and

(b)

the later to occur of (x) the Distribution Date in May 2010 and (y) the first Distribution Date on which a fraction, the numerator of which is the excess of the aggregate Stated Principal Balance of the Group 1 Loans as of the Due Date in the month preceding the month in which that Distribution Date occurs (after giving effect to principal prepayments received in the Prepayment Period related to that Due Date) over the aggregate Class Principal Balance of the Group 1 Senior Certificates (other than the Class 1-AIO Certificates) immediately prior to that Distribution Date, and the denominator of which is the aggregate Stated Principal Balance of the Group 1 Loans as of the Due Date in the month of the current Distribution Date (after giving effect to principal prepayments received in the Prepayment Period related to that Due Date) is greater than or equal to (a) 30.000% on any Distribution Date prior to the Distribution Date in May 2013 and (b) 24.000% on any Distribution Date on or after the Distribution Date in May 2013.

Group 1 Trigger Event:  A Group 1 Trigger Event is in effect with respect to any Distribution Date on or after the Group 1 Stepdown Date if either a Group 1 Delinquency Trigger Event is in effect with respect to that Distribution Date or a Group 1 Cumulative Loss Trigger Event is in effect with respect to that Distribution Date.

Group 2 Applied Realized Loss Amount: With respect to any Distribution Date, the amount, if any, by which the aggregate Class Principal Balance of all Classes of Group 2 Certificates (other than the Class 2-AIO Certificates and after all distributions of principal on such Distribution Date) exceeds the aggregate Stated Principal Balance of the Group 2 Loans as of the Due Date in the month of such Distribution Date.

Group 2 Auction Initiator:  The Class 2-C Certificateholder; provided, that if the Class 2-C Certificateholder has not exercised its rights to initiate an auction under Section 10.03 on any date on which the Class 2-C Certificateholder is entitled to do so, and the Master Servicer has not exercised its termination rights under Section 10.03 on any date on which the Master Servicer is entitled to do so, the Auction Initiator shall be the Certificate Insurer.

Group 2 Auction Date:  As defined in Section 10.03.

Group 2 Auction Purchaser:  As defined in Section 10.03.

Group 2 Auction Sale Price:  As defined in Section 10.03.

Group 2 Basic Principal Distribution Amount: With respect to each Distribution Date, the lesser of:

(c)

the aggregate Class Principal Balance of the Group 2 Senior Certificates (other than the Class 2-AIO Certificates) and Group 2 Mezzanine Certificates immediately prior to such Distribution Date, and

(d)

the excess, if any, of (a) the Principal Funds for Loan Group 2 for such Distribution Date over (b) the Group 2 Overcollateralization Release Amount for such Distribution Date.

Group 2 Basis Risk Cap Account: A segregated trust account established and maintained by the Trust Administrator pursuant to 3.07(m) of this agreement in which payments received from the Cap Provider will be deposited.

Group 2 Basis Risk Cap Contract: The cap contract between the Cap Provider and the Supplemental Interest Trust Trustee relating to the Certificates in the form attached hereto as Exhibit O-3.

Group 2 Basis Risk Cap Contract Termination Date:  The Distribution Date in October 2009.

Group 2 Carryover Reserve Fund:  The account established and maintained by the Trust Administrator pursuant to Section 3.07(i).

Group 2 Certificate Cap Account: A segregated trust account established and maintained by the Trust Administrator pursuant to 3.07(l) of this agreement in which payments received from the Cap Provider will be deposited.

Group 2 Certificate Cap Contract: The cap contract between the Cap Provider and the Supplemental Interest Trust Trustee relating to the Group 2 Certificates in the form attached hereto as Exhibit O-4.

Group 2 Certificate Cap Contract Termination Date:  The Distribution Date in April 2014.

Group 2 Certificate Insurer Reimbursement Amount: With respect to any Distribution Date, the sum of the Subgroup 2-1 Certificate Insurer Reimbursement Amount and the Subgroup 2-2 Certificate Insurer Reimbursement Amount.

Group 2 Certificates:  As specified in the Preliminary Statement.

Group 2 Credit Enhancement Reserve Fund:  The account established and maintained by the Trust Administrator pursuant to Section 3.07(s).

Group 2 Credit Enhancement Reserve Fund Termination Date:  The Distribution Date in April 2014.

Group 2 Cumulative Loss Trigger Event:  A Group 2 Cumulative Loss Trigger Event is in effect with respect to a Distribution Date on or after the Stepdown Date if the aggregate amount of Realized Losses on the Group 2 Mortgage Loans from (and including) the Cut-off Date for each such Group 2 Mortgage Loan to (and including) the related Due Date (reduced by the aggregate amount of Subsequent Recoveries received from the Cut-off Date through the Prepayment Period related to that Due Date) exceeds the applicable percentage, for such Distribution Date, of the aggregate Stated Principal Balance of the Group 2 Mortgage Loans as of the Cut-off Date, as set forth below:

		
	Distribution Date

	Percentage

	May 2009 – April 2010

	0.30% with respect to May 2009, plus an additional 1/12th of 0.40% for each month thereafter through April 2010.

	May 2010 – April 2011

	0.70% with respect to May 2010, plus an additional 1/12th of 0.55% for each month thereafter through April 2011.

	May 2011 – April 2012

	1.25% with respect to May 2011, plus an additional 1/12th of 0.55% for each month thereafter through April 2012.

	May 2012 – April 2013

	1.80% with respect to May 2012, plus an additional 1/12th of 0.70% for each month thereafter through April 2013.

	May 2013 – April 2014

	2.50% with respect to May 2013, plus an additional 1/12th of 0.25% for each month thereafter through April 2014.

	May 2014 and thereafter

	2.75%

Group 2 Delinquency Trigger Event:  A Group 2 Delinquency Trigger Event is in effect with respect to a Distribution Date on or after the Stepdown Date if the Rolling Sixty Day Delinquency Rate for the outstanding Group 2 Loans equals or exceeds the product of (i) 29.787% and the Senior Enhancement Percentage for Loan Group 2 for any Distribution Date prior to the Distribution Date in May 2012 and (ii) 37.234% and the Senior Enhancement Percentage for Loan Group 2 for any Distribution Date on or after the Distribution Date in May 2012.

Group 2 Loans:  Those Mortgage Loans identified on the Mortgage Loan Schedule as Group 2 Loans.

Group 2 Mezzanine Certificates:  As defined in the Preliminary Statement.

Group 2 Mezzanine Principal Distribution Amount:  For any Class of Group 2 Mezzanine Certificates and Distribution Date, the excess of:

(e)

the sum of:

(i)

the aggregate Class Principal Balance of the Group 2 Senior Certificates, other than the Class 2-AIO Certificates (after taking into account the distribution of the Group 2 Senior Principal Distribution Amount for such Distribution Date),

(ii)

the aggregate Class Principal Balance of any Class(es) of Group 2 Mezzanine Certificates that are senior to the subject Class (in each case, after taking into account the distribution of the applicable Group 2 Mezzanine Principal Distribution Amount(s) for such more senior Class(es) of Group 2 Certificates for such Distribution Date), and

(iii)

the Class Principal Balance of such Class of Group 2 Mezzanine Certificates immediately prior to such Distribution Date, over

(f)

the lesser of (a) the product of (x) 100% minus the applicable Stepdown Target Subordination Percentage for the subject Class of Group 2 Mezzanine Certificates for that Distribution Date and (y) the aggregate Stated Principal Balance of the Group 2 Loans as of the Due Date in the month of that Distribution Date (after giving effect to principal prepayments received in the related Prepayment Period) and (b) the aggregate Stated Principal Balance of the Group 2 Loans as of the Due Date in the month of that Distribution Date (after giving effect to principal prepayments received in the related Prepayment Period) minus the OC Floor for Loan Group 2;  provided, however, that if the Class Principal Balance of each Class of Group 2 Senior Certificates has been reduced to zero, and such Class of Group 2 Mezzanine Certificates is the only Class of Group 2 Mezzanine Certificates outstanding on such Distribution Date, that Class will be entitled to receive the entire remaining Group 2 Principal Distribution Amount until its Class Principal Balance is reduced to zero.

Group 2 Net Monthly Excess Cashflow:  With respect to any Distribution Date, the sum for such Distribution Date of (a) any Group 2 Overcollateralization Release Amount and (b) the excess of (x) the Available Funds for Loan Group 2 for such Distribution Date over (y) the sum for such Distribution Date of (A) the Current Interest for the Group 2 Senior Certificates and Group 2 Mezzanine Certificates, (B) the Interest Carry Forward Amount for the Group Senior Certificates, (C) the Group 2 Principal Distribution Amount and (D) the Group 2 Premium Distribution Amount.

Group 2 Optional Termination:  The termination of the portion of the Trust created hereunder related to Loan Group 2 in connection with the auction or purchase of the Mortgage Loans pursuant to Section 10.03 hereof.

Group 2 Optional Termination Date:  As specified in Section 10.03(a) hereof.

Group 2 Overcollateralization Amount: With respect to any Distribution Date, an amount equal to the excess, if any, of (i) the aggregate Stated Principal Balance of the Group 2 Loans as of the Due Date in the month of that Distribution Date (after giving effect to Principal Prepayments received in the related Prepayment Period) over (ii) the sum of the aggregate Class Principal Balance of the Group 2 Senior Certificates and the Group 2 Mezzanine Certificates as of such Distribution Date (after giving effect to distributions of the Group 2 Principal Distribution Amount to be made on such Distribution Date).

Group 2 Overcollateralization Deficiency Amount: With respect to any Distribution Date, the amount, if any, by which the Group 2 Overcollateralization Target Amount for such Distribution Date exceeds the Group 2 Overcollateralization Amount for such Distribution Date (after giving effect to distributions in respect of the Principal Funds for Loan Group 2 on such Distribution Date but before giving effect to any other distributions on the Group 2 Certificates in reduction of their respective Class Principal Balances on such Distribution Date).

Group 2 Overcollateralization Maintenance Amount: With respect to any Distribution Date, the lesser of (a) the Group 2 Net Monthly Excess Cashflow for such Distribution Date and (b) the Group 2 Overcollateralization Deficiency Amount for such Distribution Date.

Group 2 Overcollateralization Release Amount: With respect to any Distribution Date, the lesser of (x) the Principal Funds for Loan Group 2 for such Distribution Date and (y) the excess, if any, of (i) the Group 2 Overcollateralization Amount for such Distribution Date (assuming that 100% of the Principal Funds for Loan Group 2 is applied as a principal payment on such Distribution Date and without giving effect to any other distributions on the Certificates in reduction of their respective Class Principal Balances on such Distribution Date) over (ii) the Group 2 Overcollateralization Target Amount for such Distribution Date.

Group 2 Overcollateralization Target Amount:  With respect to any Distribution Date (a) prior to the Group 2 Stepdown Date, an amount equal to 0.50% of the aggregate Stated Principal Balance of the Group 2 Loans as of the Cut-off Date and (b) on or after the Group 2 Stepdown Date, the greater of (i) (x) for any Distribution Date on or after the Group 2 Stepdown Date but prior to the Distribution Date in May 2013, an amount equal to 1.25% of the aggregate Stated Principal Balance of the Group 2 Loans as of the Due Date in the month of that Distribution Date (after giving effect to principal prepayments received in the related Prepayment Period) and (y) for any Distribution Date on or after the Group 2 Stepdown Date and on or after the Distribution Date in May 2013, an amount equal to 1.00% of the aggregate Stated Principal Balance of the Group 2 Loans as of the Due Date in the month of that Distribution Date (after giving effect to principal prepayments received in the related Prepayment Period) and (ii) the OC Floor for Loan Group 2; provided, however, that if a Group 2 Trigger Event is in effect on any Distribution Date, the Group 2 Overcollateralization Target Amount will be the Group 2 Overcollateralization Target Amount as in effect for the prior Distribution Date.

Group 2 Premium Distribution Amount:   With respect to any Distribution Date, the sum of the Subgroup 2-1 Premium Distribution Amount and the Subgroup 2-2 Premium Distribution Amount for such Distribution Date.

Group 2 Principal Distribution Amount:  With respect to each Distribution Date, the sum of (i) the Group 2 Basic Principal Distribution Amount for such Distribution Date and (ii) the Group 2 Overcollateralization Maintenance Amount for such Distribution Date.

Group 2 Reserve Trigger Event:  With respect to any Distribution Date, a “Group 2 Reserve Trigger Event” is in effect if the aggregate Stated Principal Balance of the Loans in Loan Subgroup 2-P is less than the Reserve Trigger Amount set forth in Schedule XI for such Distribution Date.

Group 2 Rolling Sixty-Day Delinquency Rate:   With respect to any Distribution Date on or after the Group 2 Stepdown Date, the average of the Group 2 Sixty-Day Delinquency Rates for the two immediately preceding Distribution Dates.

Group 2 Senior Enhancement Percentage:  With respect to any Distribution Date on or after the Group 2 Stepdown Date, a fraction (expressed as a percentage):

(g)

the numerator of which is the sum of:

(i)

the aggregate Class Principal Balance of the Group 2 Mezzanine Certificates immediately prior to that Distribution Date and

(ii)

the Group 2 Overcollateralization Amount, in each case prior to the distribution of the Group 2 Principal Distribution Amount on such Distribution Date, and,

(h)

the denominator of which is the aggregate Stated Principal Balance of the Group 2  Loans after giving effect to distributions to be made on that Distribution Date.

Group 2 Senior Principal Distribution Amount:  With respect to each Distribution Date, the aggregate of the Subgroup 2-1 Senior Principal Distribution Amount and the Subgroup 2-2 Senior Principal Distribution Amount.

Group 2 Sixty-Day Delinquency Rate:  With respect to any Distribution Date on or after the Group 2 Stepdown Date, a fraction, expressed as a percentage, the numerator of which is the aggregate Stated Principal Balance for such Distribution Date of all Group 2 Loans that were 60 or more days Delinquent as of the close of business on the last day of the calendar month preceding such Distribution Date (including Group 2 Loans in foreclosure, bankruptcy and REO Properties) and the denominator of which is the aggregate Stated Principal Balance for such Distribution Date of the Group 2 Loans as of the related Due Date (after giving effect to principal prepayments in the Prepayment Period related to that prior Due Date).

Group 2 Stepdown Date:   The earlier to occur of:

(i)

the Distribution Date following the Distribution Date on which the aggregate Class Principal Balance of the Group 2 Senior Certificates (other than the Class 2-AIO Certificates) is reduced to zero, and

(j)

the later to occur of (x) the Distribution Date in May 2010 and (y) the first Distribution Date on which a fraction, the numerator of which is the excess of the aggregate Stated Principal Balance of the Group 2 Loans as of the Due Date in the month preceding the month in which that Distribution Date occurs (after giving effect to principal prepayments received in the Prepayment Period related to that Due Date) over the aggregate Class Principal Balance of the Group 2 Senior Certificates (other than the Class 2-AIO Certificates) immediately prior to that Distribution Date, and the denominator of which is the aggregate Stated Principal Balance of the Group 2 Loans as of the Due Date in the month of the current Distribution Date (after giving effect to principal prepayments received in the Prepayment Period related to that Due Date) is greater than or equal to (a) 23.500% on any Distribution Date prior to the Distribution Date in May 2013 and (b) 18.800% on any Distribution Date on or after the Distribution Date in May 2013.

Group 2 Trigger Event:  A Group 2 Trigger Event is in effect with respect to any Distribution Date on or after the Group 2 Stepdown Date if either a Group 2 Delinquency Trigger Event is in effect with respect to that Distribution Date or a Group 2 Cumulative Loss Trigger Event is in effect with respect to that Distribution Date.

Group Principal Distribution Amount:  Either of the Group 1 Principal Distribution Amount and the Group 2 Principal Distribution Amount, as applicable.

Group Senior Principal Distribution Amount:  Either of the Group 1 Senior Principal Distribution Amount and the Group 2 Senior Principal Distribution Amount, as applicable.

High Cost Mortgage Loan:  A Mortgage Loan classified as (a) a “high cost” loan under the Home Ownership and Equity Protection Act of 1994, (b) a “high cost home,” “threshold,” “covered,” (excluding New Jersey “Covered Home Mortgage Loans” as that term is defined in clause (1) of the definition of that term in the New Jersey Home Ownership Security Act of 2002), “high risk home,” “predatory” or similar loan under any other applicable state, federal or local law (or a similarly classified loan using different terminology under a law imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans having high interest rates, points and/or fees) or (c) a Mortgage Loan categorized as High Cost pursuant to Appendix E of Standard and Poor’s Glossary.  

Highest Priority: With respect to the Group 1 Mezzanine Certificates, as of any date of determination, the Class of Group 1 Mezzanine Certificates then outstanding with a Class Principal Balance greater than zero, with the highest priority for payments pursuant to Section 4.01, in the following order of descending priority: Class 1-A3, Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, and Class 1-M5 Certificates.

With respect to the Group 2 Mezzanine Certificates, as of any date of determination, the Class of Group 2 Mezzanine Certificates then outstanding with a Class Principal Balance greater than zero, with the highest priority for payments pursuant to Section 4.01, in the following order of descending priority: Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class 2-M5, Class 2-M6, Class 2-M7 and Class 2-M8 Certificates.

Home Loan:  A Mortgage Loan categorized as a Home Loan pursuant to Appendix E of Standard & Poor’s Glossary.

Homeownership Act: The federal Truth-in-Lending Act as amended by the Home Ownership and Equity Protection Act of 1994.

Independent:  When used with respect to any accountants, a Person who is “independent” within the meaning of Rule 2-01(B) of the Commission’s Regulation S-X.  Independent means when used with respect to any other Person, a Person who (a) is in fact independent of another specified Person and any affiliate of such other Person, (b) does not have any material direct or indirect financial interest in such other Person or any affiliate of such other Person, (c) is not connected with such other Person or any affiliate of such other Person as an officer, employee, promoter, underwriter, trust administrator, trustee, partner, director or Person performing similar functions and (d) is not a member of the immediate family of a Person defined clause (b) or (c) above.

Indirect Participant:  A broker, dealer, bank or other financial institution or other Person that clears through or maintains a custodial relationship with a Depository Participant.

IndyMac:  IndyMac Bank, F.S.B., and its successors and assigns, in its capacity as Servicer of the IndyMac Serviced Loans.

IndyMac Serviced Mortgage Loans:  The Mortgage Loans for which IndyMac is listed as “Servicer” on the Mortgage Loan Schedule.

IndyMac Servicing Agreement:  Solely with respect to the IndyMac Serviced Mortgage Loans, the Master Loan Purchase and Servicing Agreement, dated as of September 1, 2006, by and between the Transferor, as initial purchaser, and IndyMac, as seller and as servicer, as the same may be amended from time to time (as modified pursuant to the related Assignment Agreement).

Initial Certification:  With respect to the Custodian, the certification required to be executed by the Custodian and delivered on the Closing Date to the Depositor and the Trustee in the form annexed hereto as Exhibit G pursuant to Section 2.02 of this Agreement.

Initial LIBOR Rate:  5.320% per annum. 

Insolvency Proceeding:  With respect to any Person:  (i) any case, action, or proceeding with respect to such Person before any court or other governmental authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding up, or relief of debtors; or (ii) any general assignment for the benefit of creditors, composition, marshaling of assets for creditors, or other, similar arrangement in respect of the creditors generally of such Person or any substantial portion of such Person’s creditors, in any case undertaken under federal, state or foreign law, including the Bankruptcy Code.

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

Insurance Proceeds:  Proceeds paid by an insurer pursuant to any title policy, hazard policy or other Insurance Policy covering a Mortgage Loan to the extent such proceeds are not to be applied to the restoration of the related Mortgaged Property or released to the Mortgagor in accordance with the procedures that the related Servicer would follow in servicing mortgage loans held for its own account, subject to the terms and conditions of the related Mortgage Note and Mortgage.

Insured Certificates: The Class 1-1A2, Class 1-2A2, Class 2-1A2, Class 2-2A3 and Class 2-2A6 Certificates.

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

Interest Carry Forward Amount:  With respect to each Class of Senior Certificates and Mezzanine Certificates and each Distribution Date, the excess of (i) the Current Interest for such Class with respect to prior Distribution Dates over (ii) the amount actually distributed to such Class with respect to interest on such prior Distribution Dates.

Interest Funds: With respect to any Distribution Date and Loan Group or Loan Subgroup, the sum of (i) the Interest Remittance Amount for such Loan Group or Loan Subgroup, as applicable, for such Distribution Date and (ii) the Deferred Interest for all Mortgage Loans in such Loan Group or Loan Subgroup, as applicable, for the related Due Date up to the Principal Remittance Amount for such Loan Group or Loan Subgroup, as applicable, for such Distribution Date.

Interest Only Certificates: As defined in the Preliminary Statement.

Interest Remittance Amount:  With respect to the Mortgage Loans in a Loan Group or Loan Subgroup and any Distribution Date, (x) the sum, without duplication, of (i) all scheduled interest on the Mortgage Loans in that Loan Group or Loan Subgroup, as applicable, due on the related Due Date and received on or prior to the related Determination Date, less the related Servicing Fees and any payments made in respect of premiums on lender paid insurance mortgage loans, (ii) all interest on Principal Prepayments on the Mortgage Loans in that Loan Group or Loan Subgroup, as applicable, other than Prepayment Interest Excess, (iii) all Advances relating to interest with respect to the Mortgage Loans in that Loan Group or Loan Subgroup, as applicable, (iv) all Compensating Interest with respect to such Mortgage Loans in that Loan Group or Loan Subgroup, as applicable, and (v) Liquidation Proceeds with respect to the Mortgage Loans in that Loan Group or Loan Subgroup, as applicable, during the related Prepayment Period (to the extent such Liquidation Proceeds relate to interest), less (y) all reimbursements to the Master Servicer since the immediately preceding Due Date for Nonrecoverable Advances of interest previously made allocable to such Loan Group or Loan Subgroup, as applicable.

Issuing Entity:  As defined in Section 2.01(c).

Late Payment Rate:  The lesser of (a) the greater of (i) the per annum rate of interest publicly announced from time to time by JPMorgan Chase Bank, N.A. as its prime or base lending rate (any change in such rate of interest to be effective on the date such change is announced by JPMorgan Chase Bank, N.A.) plus 2.00%, and (ii) the then applicable highest rate of interest on the Insured Notes and (b) the maximum rate permissible under applicable usury or similar laws limiting interest rates as determined by the Class A Note Insurer.  The Late Payment Rate shall be computed on the basis of the actual number of days elapsed over a year of 360 days.

Latest Possible Maturity Date:  The Distribution Date following the third anniversary of the scheduled maturity date of the Mortgage Loan having the latest scheduled maturity date as of the Cut-off Date.

LIBOR:  As to any Distribution Date, the arithmetic mean of the London Interbank offered rate quotations for one month U.S. Dollar deposits, as determined by the Trust Administrator in accordance with Section 4.05.

LIBOR Business Day:  Any day other than (i) a Saturday or a Sunday or (ii) a day on which banking institutions in the State of New York or in the City of London, England are required or authorized by law to be closed.

LIBOR Determination Date:  As to any Distribution Date, other than the first Distribution Date, and any Class of LIBOR Certificates, the second LIBOR Business Day prior to the beginning of the applicable Accrual Period for such Class and such Distribution Date.

Liquidated Mortgage Loan:  With respect to any Distribution Date, (i) a defaulted Mortgage Loan (including any REO Property) which was liquidated in the calendar month preceding the month of such Distribution Date and as to which the applicable Servicer or the Master Servicer, as the case may be, has determined (in accordance with the applicable Servicing Agreement and this Agreement) that it has received all amounts it expects to receive in connection with the liquidation of such Mortgage Loan, including the final disposition of an REO Property or (ii) any Mortgage Loan that becomes 180 days or more delinquent in the calendar month preceding the month of such Distribution Date. 

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

Loan-to-Value Ratio:  With respect to any Mortgage Loan and as to any date of determination, the fraction (expressed as a percentage) the numerator of which is the principal balance of the related Mortgage Loan at such date of determination and the denominator of which is the Appraised Value of the related Mortgaged Property.  For purposes of representation (xxxi) of Schedule II, the Loan-to-Value Ratio will be the loan-to-value ratio calculated in accordance with applicable state laws regarding primary mortgage insurance.

Loan Group:  Any of the Group 1 Loans or the Group 2 Loans, as applicable.

Loan Subgroup:  Any of the Subgroup 1-1 Loans, Subgroup 1-2 Loans, Subgroup 2-1 Loans or Subgroup 2-2 Loans, as applicable.

Loan Subgroup 2-P:  The Group 2 Loans with a Mortgage Rate based on the level of one-year MTA and which are subject to a 3-year hard prepayment penalty at origination (in such states where such penalties are allowed by law) identified in Schedule VII attached hereto.

Loan Seller:  With respect to any Mortgage Loan, the entity that sold such Mortgage Loan to the Transferor.

Lost Mortgage Note:  Any Mortgage Note the original of which was permanently lost or destroyed and has not been replaced.

Majority Holder:  As to any Class of Regular Certificates, the Holder of Certificates of such Class evidencing, in the aggregate, at least 51% of the Percentage Interests evidenced by all Certificates of such Class.

Majority in Interest:  As to any Class of Regular Certificates, the Holders of Certificates of such Class evidencing, in the aggregate, at least 51% of the Percentage Interests evidenced by all Certificates of such Class.

Master REMIC:  As specified in the Preliminary Statement.

Master Servicer:  Wells Fargo, and its successors and assigns, in its capacity as Master Servicer hereunder, or any successor Master Servicer hereunder.

Master Servicer Event of Termination:  As defined in Section 7.01 hereof.

Master Servicer Compensation:  All investment earnings on amounts on deposit in the Collection Account.

Master Servicing Officer:  Any officer of the Master Servicer involved in, or responsible for, the administration and master servicing of the Mortgage Loans.

MERS:  As defined in Section 2.01.

Mezzanine Certificates:  As defined in the Preliminary Statement.

Middle REMIC 1:  As specified in the Preliminary Statement.

Middle REMIC 1 Regular Interest:  As specified in the Preliminary Statement.

Middle REMIC 2:  As specified in the Preliminary Statement.

Middle REMIC 2 Regular Interest:  As specified in the Preliminary Statement.

Moody’s:  Moody’s Investors Service, Inc., or any successor thereto.  If Moody’s is designated as a Rating Agency in the Preliminary Statement, for purposes of Section 11.05(b), the address for notices to Moody’s shall be Moody’s Investors Service, Inc., 99 Church Street, New York, New York 10007, Attention:  Residential Mortgage Monitoring Group, or such other address as Moody’s may hereafter furnish to each other party to this Agreement.

Mortgage:  The mortgage, deed of trust or other instrument creating a second lien on an estate in fee simple or leasehold interest in real property securing a Mortgage Note.

Mortgage File:  The mortgage documents listed in Section 2.01 hereof pertaining to a particular Mortgage Loan and any additional documents delivered to the Custodian to be added to the Mortgage File pursuant to this Agreement.

Mortgage Loan Purchase Agreement:  The Mortgage Loan Purchase Agreement, dated as of April 1, 2007, between the Transferor and the Depositor.

Mortgage Loan Schedule:  The list of Mortgage Loans (as from time to time amended by the Custodian to reflect the addition of Eligible Substitute Mortgage Loans and the deletion of Deleted Mortgage Loans pursuant to the provisions of this Agreement) transferred to the Trustee as part of the Trust Fund and from time to time subject to this Agreement, attached hereto as Schedule I, setting forth the following information with respect to each Mortgage Loan:  (1) the Mortgage Loan identifying number; (2) the Mortgagor’s first and last name; (3) the street address of the Mortgaged Property including the city, state and zip code; (4) the original principal balance of the Mortgage Loan; (5) the Scheduled Principal Balance of the Mortgage Loan as of the close of business on the Cut-off Date; (6) the unpaid principal balance of the Mortgage Loan as of the close of business on the Cut-off Date; (7) the last scheduled Due Date on which a Scheduled Payment was applied to the Scheduled Principal Balance; (8) the last Due Date on which a Scheduled Payment was actually applied to the unpaid principal balance; (9) the Mortgage Rate in effect immediately following origination; (10) the Mortgage Rate in effect immediately following the Cut-off Date (if different from (9)); (11) the amount of the Scheduled Payment at origination; (12) the amount of the Scheduled Payment as of the Cut-off Date (if different from (11)); (13) a code indicating whether the Mortgaged Property is owner occupied, a second home or an investor property; (14) a code indicating whether the Mortgaged Property is a single family residence, a two-family residence, a three-family residence, a four-family residence, a planned-unit development, a condominium or a Cooperative Unit; (15) a code indicating the loan purpose (i.e., purchase, rate/term refinance, cash-out refinance); (16) the stated maturity date; (17) the original months to maturity; (18) the remaining months to maturity from the Cut-off Date based on the original amortization Schedule and, if different, the remaining months to maturity expressed in the same manner but based on the actual amortization schedule; (19) the origination date of the Mortgage Loan; (20) the Loan-to-Value Ratio at origination; (21) the date on which the first Scheduled Payment was due on the Mortgage Loan after the origination date; (22) a code indicating the documentation style of the Mortgage Loan; (23) a code indicating if the Mortgage Loan is subject to a Primary Insurance Policy and, if so, the name of the Qualified Mortgage Insurer, the certificate number and the coverage amount of the Primary Insurance Policy; (24) the Servicing Fee Rate, and if such rate is subject to change, the date such rate will change and the Servicing Fee Rate applicable thereafter; (25) a code indicating whether the Mortgage Loan is subject to a prepayment penalty and, if so, the term of such prepayment penalty and whether the same shall be a Class P Prepayment Charge; (26) the credit score (or mortgage score) of the Mortgagor; (27) the debt-to-income ratio of the Mortgage Loan; (28) the next Adjustment Date; (29) the lifetime mortgage rate cap; (30) the Periodic Rate Cap; (31) the maximum interest rate; (32) the minimum interest rate; (33) [reserved]; (34) the date on which the Mortgage Loan was transferred to the Transferor; (35) a code indicating the Loan Group such Mortgage Loan is included in; (36) the initial Servicer; (37) a code indicating the originator of the Mortgage Loan; (38) a code indicating whether the Mortgage Loan is a Cooperative Loan; (39) a code indicating the Custodian; and (40) a code indicating whether such Mortgage Loan is a Home Loan.

Mortgage Loans:  Such of the mortgage loans and cooperative loans transferred and assigned to the Trustee pursuant to the provisions hereof as from time to time are held as a part of the Trust Fund (including any REO Property), the mortgage loans so held being identified in the Mortgage Loan Schedule, notwithstanding foreclosure or other acquisition of title of the related Mortgaged Property.  With respect to each Mortgage Loan that is a Cooperative Mortgage Loan, if any, “Mortgage Loan” shall include, but not be limited to, the related Mortgage Note, Security Agreement, Assignment of Proprietary Lease, Recognition Agreement, Cooperative Shares and Proprietary Lease and, with respect to each Mortgage Loan other than a Cooperative Mortgage Loan, “Mortgage Loan” shall include, but not be limited to the related Mortgage and the related Mortgage Note.

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

Mortgage Pool:  The pool of Mortgage Loans included in the Trust.

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

Mortgaged Property:  The property securing a Mortgage Loan which will consist of one- to four-family residential properties consisting of attached or detached one- to four-family dwelling units and individual condominium units.

Mortgagor:  Each obligor on a Mortgage Note.

Net Mortgage Rate:  As to each Mortgage Loan, the applicable Mortgage Rate thereof minus the related Servicing Fee Rate and any lender paid mortgage insurance premiums for such Loan (expressed as a per annum percentage of its Stated Principal Balance).

Net Rate Cap:  For each Distribution Date and the following Classes of Certificates is:

(a)

with respect to the Group 1 Certificates (other than the Class 1-1A2, Class 1-2A2, and Class 1-AIO Certificates), the product of:

(i)

the excess, if any, of:

(1)

the lesser of:

(A)

the Net WAC for Loan Group 1 and

(B)

the Available Funds Rate Cap for Loan Group 1, over

(2)

an amount equal to the product of:

(A)

the Current Interest for the Class 1-AIO Certificates for the related Accrual Period, calculated without regard to the Net Rate Cap on the Class 1-AIO Certificates; and

(B)

12, divided by the aggregate Class Principal Balance of the Group 1 Certificates (other than the Class 1-AIO  Certificates) immediately prior to the Distribution Date, and

(ii)

a fraction, the numerator of which is 30, and the denominator of which is the actual number of days that elapsed in the related Accrual Period.

(b)

with respect to the Class 1-1A2 and Class 1-2A2 Certificates, the product of:

(i)

the excess, if any, of:

(1)

the lesser of:

(A)

the Net WAC for Loan Group 1 and

(B)

the Available Funds Rate Cap for Loan Group 1, over

(2)

the sum of:

(A)

an amount equal to the product of:

1.

the Current Interest for the Class 1-AIO Certificates for the related Accrual Period, calculated without regard to the Net Rate Cap on the Class 1-AIO Certificates; and

2.

 12, divided by the aggregate Class Principal Balance of the Group 1 Certificates (other than the Class 1-AIO Certificates) immediately prior to the Distribution Date, and

(B)

the Certificate Insurer Fee Rate; and

(ii)

a fraction, the numerator of which is 30, and the denominator of which is the actual number of days that elapsed in the related Accrual Period.

(c)

with respect to the Group 2 Certificates (other than the Class 2-1A2, Class 2-2A3, Class 2-2A6 and Class 2-AIO Certificates), the product of:

(i)

the excess, if any, of:

(1)

the lesser of:

(A)

the Net WAC for Loan Group 2 and

(B)

the Available Funds Rate Cap for Loan Group 2, over

(2)

an amount equal to the product of:

(A)

the Current Interest for the Class 2-AIO Certificates for the related Accrual Period, calculated without regard to the Net Rate Cap on the Class 2-AIO Certificates; and

(B)

12, divided by the aggregate Class Principal Balance of the Group 2 Certificates (other than the Class 2-AIO Certificates) immediately prior to the Distribution Date, and

(ii)

a fraction, the numerator of which is 30, and the denominator of which is the actual number of days that elapsed in the related Accrual Period.

(d)

with respect to the Class 2-1A2, Class 2-2A3, and Class 2-2A6 Certificates, the product of:

(i)

the excess, if any, of:

(1)

the lesser of:

(A)

the Net WAC for Loan Group 2 and

(B)

the Available Funds Rate Cap for Loan Group 2, over

(2)

the sum of:

(A)

an amount equal to the product of:

1.

the Current Interest for the Class 2-AIO Certificates for the related Accrual Period, calculated without regard to the Net Rate Cap on the Class 2-AIO Certificates; and

2.

 12, divided by the aggregate Class Principal Balance of the Group 2 Certificates (other than the Class 2-AIO Certificates) immediately prior to the Distribution Date, and

(B)

the Certificate Insurer Fee Rate; and

(ii)

a fraction, the numerator of which is 30, and the denominator of which is the actual number of days that elapsed in the related Accrual Period.

(e)

with respect to any class of Interest-Only Certificates, the product of:

(i)

the lesser of:

(1)

the Net WAC for the related Loan Group; and:

(2)

the Available Funds Rate Cap for the related Loan Group; and

(ii)

a fraction, the numerator of which is the aggregate Stated Principal Balance of the Loans in such Loan Group, and the denominator of which is the Notional Amount of such Class, each as of the Due Date occurring in the month preceding the month of that Distribution Date (after giving effect to principal prepayments in the Prepayment Period related to that prior Due Date).

Net Rate Carryover:  For each Class of Senior Certificates and Mezzanine Certificates on any Distribution Date is equal to the sum of:

(a)

the excess, if any, of:

(i)

the amount of interest that such Class would have accrued for such Distribution Date had the Pass-Through Rate for that Class and the related Accrual Period not been calculated based on the related Net Rate Cap, over

(ii)

the amount of interest such Class accrued on such Distribution Date based on the related Net Rate Cap, and

(b)

the unpaid portion of any such excess from prior Distribution Dates (and interest accrued thereon at the then applicable Pass-Through Rate, without giving effect to the related Net Rate Cap).

Net WAC:   For any Distribution Date and any Loan Group or Loan Subgroup, the weighted average of the Net Mortgage Rate of each Loan in that Loan Group or Loan Subgroup, as applicable, weighted on the basis of its Stated Principal Balance as of the Due Date occurring in the month preceding the month of that Distribution Date (after giving effect to principal prepayments in the Prepayment Period related to that prior Due Date).

NIMS Insurer: Any insurer that is guaranteeing certain payments under notes secured by collateral which includes all or a portion of the Class C Certificates, Class P Certificates and/or the Residual Certificates.

NIMS Insurer Default: The continuance of any failure by the NIMS Insurer, if any, to make a required payment under the policy insuring the net interest margin securities.

No Delay Certificates:  As specified in the Preliminary Statement.

Nonrecoverable Advance:  Any portion of an Advance previously made or proposed to be made by the applicable Servicer or the Master Servicer, as the case may be, that, in the good faith judgment of the applicable Servicer or the Master Servicer, will not be ultimately recoverable by the applicable Servicer or the Master Servicer from the related Mortgagor, related Liquidation Proceeds or otherwise.

Notice of Final Distribution:  The notice to be provided pursuant to Section 10.02 to the effect that final distribution on any of the Certificates shall be made only upon presentation and surrender thereof.

Notional Amount: With respect to the Class 1-AIO Certificates and any Distribution Date, the amount set forth in the table in Schedule IX.

With respect to the Class 2-AIO Certificates and any Distribution Date, the amount set forth in the table in Schedule X.

With respect to the Class 1-C Certificates and any Distribution Date, the aggregate Uncertificated Balance of the Middle REMIC 2 Regular Interests for such Distribution Date.

With respect to the Class 2-C Certificates and any Distribution Date, the aggregate Uncertificated Balance of the Middle REMIC 2 Regular Interests for such Distribution Date.

OC Floor:   For each Loan Group or Loan Subgroup, an amount equal to 0.50% of the aggregate Stated Principal Balance of the Loans in such Loan Group or Loan Subgroup, as applicable, as of the Cut-off Date.  

Offered Certificates:  As specified in the Preliminary Statement.

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

Opinion of Counsel:  A written opinion of counsel, who may be counsel for the Depositor or the Master Servicer, including in house counsel, reasonably acceptable to the Trustee or the Trust Administrator, as applicable; provided, however, that, with respect to the interpretation or application of the REMIC Provisions, such counsel must (i) in fact be independent of the Depositor and the Master Servicer, (ii) not have any direct financial interest in the Depositor or the Master Servicer or in any affiliate of either, and (iii) not be connected with the Depositor or the Master Servicer as an officer, employee, promoter, underwriter, trustee, partner, director or person performing similar functions.

Order:  A final nonappealable order of a court or other body exercising jurisdiction in an Insolvency Proceeding by or against the Trust, to the effect that a Holder or the Trust Administrator is required to return or repay all or a portion of a Preference Amount.

Original Certificate Principal Balance: The Certificate Principal Balance of the Senior Certificates or the Mezzanine Certificates on the Closing Date.

OTS:  The Office of Thrift Supervision.

Outstanding:  With respect to the Certificates as of any date of determination, all Certificates theretofore executed and authenticated under this Agreement except:

(a)

Certificates theretofore canceled by the Trust Administrator or delivered to the Trust Administrator for cancellation; and

(b)

Certificates in exchange for which or in lieu of which other Certificates have been executed and delivered by the Trust Administrator pursuant to this Agreement.

Outstanding Mortgage Loan:  As of any Due Date, a Mortgage Loan with a Principal Balance greater than zero that was not the subject of a Principal Prepayment in Full prior to such Due Date and that did not become a Liquidated Mortgage Loan prior to such Due Date.

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.

Par Value:  As defined in Section 10.01 and Section 10.03, as applicable.

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

PCAOB:  The Public Company Accounting Oversight Board.

Percentage Interest:  As to any Certificate, the percentage interest evidenced thereby in distributions required to be made on the related Class, such percentage interest being set forth on the face thereof or equal to the percentage obtained by dividing the Denomination of such Certificate by the aggregate of the Denominations of all Certificates of the same Class.  

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

(a)

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

(b)

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

(c)

commercial or finance company paper which is then receiving the highest commercial or finance company paper rating of any Rating Agency, or such lower rating as will not result in the downgrading or withdrawal of the ratings, by any Rating Agency, then assigned to any of the Certificates;

(d)

certificates of deposit, demand or time deposits, or bankers’ acceptances issued by any depository institution or trust company incorporated under the laws of the United States or of any state thereof and subject to supervision and examination by federal and/or state banking authorities, provided that the commercial paper and/or long term unsecured debt obligations of such depository institution or trust company are then rated in one of the two highest long-term and the highest short-term ratings of each Rating Agency for such securities, or such lower ratings as will not result in the downgrading or withdrawal of the ratings, by any Rating Agency, then assigned to any of the Certificates;

(e)

demand or time deposits or certificates of deposit issued by any bank or trust company or savings institution to the extent that such deposits are fully insured by the FDIC and are then rated in the highest long-term and the highest short-term ratings of each Rating Agency for such securities, or such lower ratings as will not result in the downgrading or withdrawal of the ratings, by any Rating Agency, to any of the Certificates;

(f)

guaranteed reinvestment agreements issued by any bank, insurance company or other corporation containing, at the time of the issuance of such agreements, such terms and conditions as will not result in the downgrading or withdrawal of the ratings, by any Rating Agency, then assigned to any of the Certificates;

(g)

repurchase obligations with respect to any security described in subclauses (a) and (b) above, in either case entered into with a depository institution or trust company (acting as principal) described in subclause (d) above;

(h)

securities (other than stripped bonds, stripped coupons or instruments sold at a purchase price in excess of 115% of the face amount thereof) bearing interest or sold at a discount issued by any corporation incorporated under the laws of the United States or any state thereof which, at the time of such investment, have the highest rating of each Rating Agency, or such lower rating as will not result in the downgrading or withdrawal of the ratings, by any Rating Agency, then assigned to the of the Certificates, as evidenced by a signed writing delivered by each Rating Agency;

(i)

units of a taxable money-market portfolio having the highest available long-term rating assigned by each Rating Agency at the time of such investment and restricted to obligations issued or guaranteed by the United States of America or entities whose obligations are backed by the full faith and credit of the United States of America and repurchase agreements collateralized by such obligations;

(j)

any mutual fund, money market fund, common trust fund or other pooled investment vehicle, the assets of which are limited to instruments that otherwise would constitute Permitted Investments hereunder, including any such fund that is managed by the Trust Administrator or Master Servicer or any Affiliate of the Trust Administrator or Master Servicer or for which the Trust Administrator or Master Servicer or any Affiliate of the Trust Administrator or Master Servicer  acts as an adviser as long as such fund is rated in at least the highest rating category by each Rating Agency (if so rated by such Rating Agency); and

(k)

such other investments bearing interest or sold at a discount acceptable to each Rating Agency as will not result in the downgrading or withdrawal of the ratings, by any Rating Agency, then assigned to any of the Certificates, as evidenced by a signed writing delivered by each Rating Agency; 

provided that no such instrument shall be a Permitted Investment if such instrument evidences the right to receive interest only payments with respect to the obligations underlying such instrument.

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, any state thereof or the District of Columbia, an estate whose income is subject to United States federal income tax regardless of its source or a trust if a court within the United States is able to exercise primary supervision over the administration of the Trust and one or more 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 August 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 income tax treaty, of such Person or any other 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 any REMIC hereunder to fail to qualify as a REMIC at any time that the Certificates are outstanding.  The terms “United States,” “State” and “international organization” shall have the meanings set forth in 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 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.

Physical Certificate:  As specified in the Preliminary Statement.

Pledge Instruments:  With respect to each Cooperative Mortgage Loan, the Stock Power, the Assignment of Proprietary Lease and the Security Agreement.

Policy Payments Account: The account created and maintained by the Trust Administrator pursuant to Section 12.04 hereof, which shall be entitled “U.S. Bank National Association in trust for registered holders of MASTR Adjustable Rate Mortgages Trust 2007-3, Mortgage Pass-Through Certificates, Series 2007-3, Class 1-1A2, Class 1-2A2, Class 2-1A2, Class 2-2A3 and Class 2-2A6 Certificates.”  The Policy Payments Account must be an Eligible Account.

Pool Balance: The aggregate of the Principal Balances of the Mortgage Loans.

Premium Distribution Amount: The Group 1 Premium Distribution Amount or the Group 2 Premium Distribution Amount, as applicable.

Prepayment Interest Excess: As to any Principal Prepayment with respect to any AHM Mortgage Loan received or, in the case of partial Principal Prepayments, applied by the applicable Servicer or the Master Servicer from the first day through the fifteenth day of any calendar month (other than the calendar month in which the Cut-off Date occurs), all amounts paid by the related Mortgagor in respect of interest on such Principal Prepayment.  All Prepayment Interest Excess shall be retained by the related Servicer as additional servicing compensation.

Prepayment Interest Shortfall: As to any Distribution Date, Mortgage Loan and Principal Prepayment received or, in the case of partial Principal Prepayments, applied, during the applicable Prepayment Period, the amount, if any, by which one month’s interest at the related Net Mortgage Rate on such Principal Prepayment exceeds the amount of interest at the Net Mortgage Rate paid in connection with such Principal Prepayment.

Prepayment Period:  With respect to any prepayment of an AHM Mortgage Loan and any Distribution Date, the period from and including the 16th day of the month preceding the month in which such Distribution Date occurs and to and including the 15th day of the month in which such Distribution Date occurs, and with respect to any other Mortgage Loan and any Distribution Date, the calendar month preceding the month in which such Distribution Date occurs.

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

Principal Balance: As to any Mortgage Loan and any Distribution Date, the unpaid principal balance of such Mortgage Loan as of the Due Date in the month preceding the month in which such Distribution Date occurs, as specified in the amortization schedule at the time relating thereto (before any adjustment to such amortization schedule by reason of any moratorium or similar waiver or grace period) after giving effect to any previous partial Principal Prepayments and Liquidation Proceeds allocable to principal received during the Prepayment Period for the prior Distribution Date (other than with respect to any Liquidated Loan), and to the payment of principal due on such Due Date and irrespective of any delinquency in payment by the related Mortgagor.  The Principal Balance of any Mortgage Loan that has been prepaid in full or has become a Liquidated Loan during the related Prepayment Period shall be zero.

Principal Funds: With respect to any Distribution Date and Loan Group or Loan Subgroup, the excess, if any, of (i) the Principal Remittance Amount for such Loan Group or Loan Subgroup, as applicable, for such Distribution Date over (ii) the Deferred Interest for such Loan Group or Loan Subgroup, as applicable, for the related Due Date.

Principal Prepayment:  Any payment of principal by a Mortgagor on a Mortgage Loan that is received in advance of its scheduled Due Date and is not accompanied by an amount representing scheduled interest due on any date or dates in any month or months subsequent to the month of prepayment, excluding any prepayment penalty or premium thereon.  Partial Principal Prepayments will be applied by the applicable Servicers in accordance with the terms of the related Servicing Agreements and in accordance with the terms of the related Mortgage Note, and to the extent the Mortgage Note does not provide otherwise, shall be applied in the Prepayment Period preceding the receipt thereof.

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

Principal Remittance Amount: With respect to any Distribution Date and any Loan Group or Loan Subgroup, (a) the sum of (i) all scheduled payments of principal collected on the Mortgage Loans in that Loan Group or Loan Subgroup, as applicable, by the related Servicer that were due during the related Due Period and the principal portion of any Advances made with respect to such Distribution Date with respect to Mortgage Loans in that Loan Group or Loan Subgroup, as applicable, (ii) the principal portion of all partial and full principal prepayments of the Mortgage Loans in that Loan Group or Loan Subgroup, as applicable, applied by the related Servicer during such Prepayment Period, (iii) the principal portion of all related Net Liquidation Proceeds, Insurance Proceeds and Subsequent Recoveries received during such Prepayment Period with respect to the Mortgage Loans in that Loan Group or Loan Subgroup, as applicable, (iv) that portion of the Purchase Price, representing principal of any repurchased Mortgage Loan in that Loan Group or Loan Subgroup, as applicable, deposited to the collection account during such Prepayment Period, (v) the principal portion of any related Substitution Adjustment Amount deposited in the Collection Account during such Prepayment Period with respect to the Mortgage Loans in that Loan Group or Loan Subgroup, as applicable, and (vi) on the Distribution Date on which the Trust is to be terminated in accordance with Article X of this Agreement, that portion of the Termination Price representing principal with respect to the Mortgage Loans in that Loan Group or Loan Subgroup, as applicable; minus (b) all non-recoverable Advances relating to principal on the Loans in that Loan Group or Loan Subgroup, as applicable, and certain expenses reimbursed since the prior Due Date.

Private Certificate:  As specified in the Preliminary Statement.

Proprietary Lease:  The lease on a Cooperative Unit evidencing the possessory interest of the owner of the Cooperative Shares in such Cooperative Unit.

Prospectus Supplement:  The Prospectus Supplement dated May 14, 2007 relating to the Offered Certificates.

Protected Account:  An account established and maintained for the benefit of Certificateholders by each Servicer with respect to the related Mortgage Loans and with respect to REO Property pursuant to the respective Servicing Agreements.  Each Protected Account is required to be an Eligible Account. 

Purchase Price: With respect to any Mortgage Loan that is purchased by the transferor pursuant to Section 2.02 or 2.03 hereof, a price equal to the outstanding Principal Balance of such Mortgage Loan as of the date of purchase, plus all accrued and unpaid interest thereon, computed at the Mortgage Rate through the end of the calendar month in which the purchase is effected, plus any costs and damages incurred by the Trust in connection with any violation by such Mortgage Loan of any predatory or abusive lending law.

Qualified Insurer:  A mortgage guaranty insurance company duly qualified as such under the laws of the state of its principal place of business and each state having jurisdiction over such insurer in connection with the insurance policy issued by such insurer, duly authorized and licensed in such states to transact a mortgage guaranty insurance business in such states and to write the insurance provided by the insurance policy issued by it, approved as a Fannie Mae approved mortgage insurer and having a claims paying ability rating of at least “AA” or equivalent rating by a nationally recognized statistical rating organization.  Any replacement insurer with respect to a Mortgage Loan must have at least as high a claims paying ability rating as the insurer it replaces had on the Closing Date.

Qualified Mortgage Insurer:  Any mortgage insurer that is Fannie Mae and Freddie Mac approved.

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

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

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

Record Date:  With respect to any Distribution Date and any Class of Delay Certificates or Physical Certificates, the close of business on the last Business Day of the month preceding the month in which such Distribution Date occurs.  With respect to any Distribution Date and any Class of No Delay Certificates held in Book-Entry Form, the last Business Day immediately preceding such Distribution Date.

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

Regular Certificates:  Each Class of Certificates, other than the Residual Certificates.

Regulation AB:  Subpart 229.1100 – Asset Backed Securities (Regulation AB), 17 C.F.R. §§229.1100-229.1123, as such may be amended from time to time, and subject to such clarification and interpretation as have been provided by the Commission in the adopting release (Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed Reg. 1,506-1,631 (Jan. 7, 2005)) or by the staff of the Commission, or as may be provided by the Commission or its staff from time to time.

Relevant Servicing Criteria:  The Servicing Criteria applicable to each party, as set forth on Exhibit X attached hereto.  Multiple parties can have responsibility for the same Relevant Servicing Criteria.  With respect to a Servicing Function Participant engaged by any of the Master Servicer, the Trust Administrator or each Servicer, the term Relevant Servicing Criteria may refer to a portion of the Relevant Servicing Criteria applicable to such parties.

Relief Act:  The Servicemembers Civil Relief Act, as amended, or any comparable state or local statute (including the comparable provisions under the California Military and Veterans Code, as amended).

Relief Act Reduction:  With respect to any Distribution Date and any Mortgage Loan as to which there has been a reduction in the amount of interest collectible thereon for the most recently ended calendar month as a result of the application of the Relief Act, the amount, if any, by which (i) interest collectible on such Mortgage Loan for the most recently ended calendar month is less than (ii) interest accrued thereon for such month pursuant to the Mortgage Note.

REMIC:  A “real estate mortgage investment conduit” within the meaning of section 860D of the Code.

REMIC Change of Law:  Any proposed, temporary or final regulation, revenue ruling, revenue procedure or other official announcement or interpretation relating to REMICs and the REMIC Provisions issued after the Closing Date.

REMIC Maximum Rate:  For each Class of Certificates (other than the Class C, Class P, Class R-X, and Class R Certificates) and the REMIC regular interest represented thereby, the Net Rate Cap of such Class of Certificates determined without regard to any Available Funds Rate Cap.

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

REO Property:  A Mortgaged Property acquired by the Trust Fund through foreclosure, deed-in-lieu of foreclosure, repossession or otherwise in connection with a defaulted Mortgage Loan.

Reportable Event:  As defined in Section 9.12.

Reporting Servicer:  As defined in Section 9.12(b)(i).

Required Insurance Policy:  With respect to any Mortgage Loan, any insurance policy that is required to be maintained from time to time under the applicable Servicing Agreement.

Residual Certificates:  As specified in the Preliminary Statement.

Residual Interests:  As specified in the Preliminary Statement.

Responsible Officer:  When used with respect to the Trustee or the Trust Administrator, any Director, any Managing Director, any Associate, any Vice President, any Assistant Vice President, the Secretary, any Assistant Secretary, any Trust Officer or any other officer of the Trustee or Trust Administrator, as applicable, customarily performing functions similar to those performed by any of the above designated officers having direct responsibility for the administration of this Agreement and also to whom, with respect to a particular matter, such matter is referred because of such officer’s knowledge of and familiarity with the particular subject.

RFC:  Residential Funding Company, LLC, formerly known as Residential Funding Corporation, and its successors and assigns, in its capacity as Servicer of the RFC Serviced Loans.

RFC Serviced Mortgage Loans:  The Mortgage Loans for which RFC is listed as “Servicer” on the Mortgage Loan Schedule.

RFC Servicing Agreement:  Solely with respect to the RFC Serviced Mortgage Loans, the Standard Terms and Provisions of Sale and Servicing Agreement, dated as of May 30, 2006, as amended by Amendment Number One, dated as of August 23, 2006, and as modified by the Reference Agreement, dated as of May 30, 2006, each by and between the Transferor, as initial owner, and RFC, as company, as the same may be amended from time to time (as modified pursuant to the related Assignment Agreement).

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

Sarbanes-Oxley Certification:  A written certification signed by an officer of the Master Servicer that complies with (i) the Sarbanes-Oxley Act, and (ii) Exchange Act Rules 13a-14(d) and 15d-14(d), as in effect from time to time; provided that if, after the Closing Date (a) the Sarbanes-Oxley Act is amended, (b) the Rules referred to in clause (ii) are modified or superseded by any subsequent statement, rule or regulation of the Commission or any statement of a division thereof, or (c) any future releases, rules and regulations are published by the Commission from time to time pursuant to the Sarbanes-Oxley Act, which in any such case affects the form or substance of the required certification and results in the required certification being, in the reasonable judgment of the Master Servicer, materially more onerous than the form of certification required as of the Closing Date, the Sarbanes-Oxley Certification shall be as agreed to by the Master Servicer and the Depositor following a negotiation in good faith to determine how to comply with any such new requirements.

S&P:  Standard and Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., or any successor thereto.  If S&P is designated as a Rating Agency in the Preliminary Statement, for purposes of Section 11.05(b), the address for notices to S&P shall be Standard and Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., 55 Water Street, New York, New York 10041, Attention:  Residential Mortgage Monitoring Group, or such other address as S&P may hereafter furnish to each other party to this Agreement.

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

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

Security Agreement: With respect to a Cooperative Mortgage Loan, the agreement or mortgage creating a security interest in favor of the originator of the Cooperative Mortgage Loan in the related Cooperative Shares.

Senior Certificates:  As specified in the Preliminary Statement.

Servicers:  AHM, Cenlar, Chevy Chase, Countrywide, IndyMac and RFC.

Servicer Remittance Date:  With respect to any Distribution Date, the 18th day of the month in which such Distribution Date occurs, or if such 18th day is not a Business Day, the first Business Day immediately preceding such 18th day.  

Servicing Advances:  All customary, reasonable and necessary “out of pocket” costs and expenses incurred in the performance by the Master Servicer of its master servicing obligations or the applicable Servicer, as the case may be, of its servicing obligations.

Servicing Agreements:

(a)

the AHM Servicing Agreement;

(b)

the Cenlar Servicing Agreement;

(c)

the Chevy Chase Servicing Agreement;

(d)

the Countrywide Servicing Agreement;

(e)

the IndyMac Servicing Agreement

(f)

the RFC Servicing Agreement; and

(g)

the Assignment Agreements.

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

Servicing Fee:  As to each Mortgage Loan and any Distribution Date, an amount payable out of each full payment of interest received on such Mortgage Loan and equal to one twelfth of the Servicing Fee Rate multiplied by the Principal Balance of such Mortgage Loan as of the Due Date in the month immediately preceding the month in which such Distribution Date occurs (after giving effect to any Scheduled Payments due on such Mortgage Loan on such Due Date).

Servicing Fee Rate:  With respect to each Mortgage Loan, the per annum rate set forth on the Mortgage Loan Schedule.

Servicing Function Participant:  Any Sub-Servicer or Subcontractor of a Servicer, the Master Servicer, the Custodian or the Trust Administrator, respectively.

Standard & Poor’s Glossary:  The Standard & Poor’s LEVELS® Glossary.

Startup Day:  The Closing Date.

Stated Principal Balance:  For any Mortgage Loan and date of determination, the unpaid principal balance of the Mortgage Loan as of the most recent Due Date, as specified in its amortization schedule at that time (before any adjustment to the amortization schedule for any moratorium or similar waiver or grace period), after giving effect to (i) the payment of principal due on that Due Date, irrespective of any delinquency in payment by the related mortgagor, (ii) prepayments of principal and the principal portion of liquidation proceeds received with respect to that Loan through the last day of the related Prepayment Period and (iii) any Deferred Interest added to the principal balance of that Mortgage Loan pursuant to the terms of the related mortgage note on or prior to that Due Date. The Stated Principal Balance of a Liquidated Loan is zero.

Stepdown Target Subordination Percentage:  With respect to each Class of Group 1 Mezzanine Certificates, the respective percentages indicated in the following table:

			
	 
	Stepdown Target Subordination Percentage (1)

	Stepdown Target Subordination Percentage (2)

	Class 1-A3

	11.125%

	8.900%

	Class 1-M1

	7.375%

	5.900%

	Class 1-M2

	5.250%

	4.200%

	Class 1-M3

	3.875%

	3.100%

	Class 1-M4

	2.500%

	2.000%

	Class 1-M5

	1.250%

	1.000%

__________________

(1) For any Distribution Date occurring on or after the Group 1 Stepdown Date  and prior to the Distribution Date occurring in May 2013.

(2) For any Distribution Date occurring on or after the Group 1 Stepdown Date and on or after the Distribution Date in May 2013.

With respect to each Class of Group 2 Mezzanine Certificates, the respective percentages indicated in the following table:

			
	 
	Stepdown Target Subordination Percentage (1)

	Stepdown Target Subordination Percentage (2)

	Class 2-M1

	16.875%

	13.500%

	Class 2-M2

	13.000%

	10.400%

	Class 2-M3

	11.250%

	9.000%

	Class 2-M4

	9.625%

	7.700%

	Class 2-M5

	8.125%

	6.500%

	Class 2-M6

	5.375%

	4.300%

	Class 2-M7

	2.500%

	2.000%

	Class 2-M8

	1.250%

	1.000%

__________________

(1) For any Distribution Date occurring on or after the Group 2 Stepdown Date  and prior to the Distribution Date occurring in May 2013.

(2) For any Distribution Date occurring on or after the Group 2 Stepdown Date and on or after the Distribution Date in May 2013.

Stock Power:  With respect to a Cooperative Mortgage Loan, an assignment of the stock certificate or an assignment of the Cooperative Shares issued by the Cooperative Corporation.

Subcontractor:  Any vendor, subcontractor or other Person that is not responsible for the overall servicing of Mortgage Loans but performs one or more discrete functions identified in Item 1122(d) of Regulation AB with respect to Mortgage Loans under the direction or authority of any Servicer (or a Sub-Servicer of any Servicer), the Master Servicer, the Custodian or the Trust Administrator.

Subgroup 1-1 Certificates:  As defined in the Preliminary Statement.

Subgroup 1-1 Certificate Insurer Reimbursement Amount: With respect to any Distribution Date, any amount owing to the Certificate Insurer under Section 4.02 or 4.07 for reimbursement, with interest, for claims paid with respect to the Class 1-1A2 Certificates under the Certificate Insurance Policy and any amounts with respect to the Class 1-1A2 Certificates owing to the Certificate Insurer and remaining unpaid for such Distribution Date.

Subgroup 1-1 Loans:  Those Mortgage Loans identified on the Mortgage Loan Schedule as Subgroup 1-1 Loans.

Subgroup 1-1 Premium Distribution Amount:  With respect to any Distribution Date, the sum of (A) the product of (x) the Certificate Insurer Fee Rate multiplied by (y) the aggregate Class Principal Balance of the Class 1-1A2 Certificates immediately preceding such Distribution Date, not taking into account any payments made under the Certificate Insurance Policy, multiplied by (a) 12 for the first Distribution Date, or (b) for each Distribution Date thereafter, the number of days that elapsed in the related Accrual Period on a 30/360 basis, in each case, divided by 360 and (B) the Subgroup 1-1 Premium Distribution Amount for any prior Distribution Date, plus interest thereon at the Late Payment Rate. 

Subgroup 1-1 Principal Distribution Amount:  With respect to each Distribution Date, the product of (i) the Group 1 Principal Distribution Amount for such Distribution Date and (ii) a fraction, the numerator of which is the Principal Remittance Amount for Loan Subgroup 1-1 for that Distribution Date and the denominator of which is the aggregate Principal Remittance Amount for Loan Group 1 for that Distribution Date.

Subgroup 1-1 Senior Principal Distribution Amount:  With respect to each Distribution Date, the excess of: (a) the aggregate Class Principal Balance of the Subgroup 1-1 Certificates immediately prior to such Distribution Date, over (b) the lesser of (A) the product of (i) (x) approximately 70.000% on any Distribution Date on or after the Stepdown Date and prior to the Distribution Date in May 2013 or (y) approximately 76.000% on any Distribution Date on or after the Stepdown Date and on or after the Distribution Date in May 2013 and (ii) the aggregate Stated Principal Balance of the Subgroup 1-1 Loans as of the Due Date in the month of that Distribution Date (after giving effect to principal prepayments received in the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Subgroup 1-1 Loans as of the Due Date in the month of that Distribution Date (after giving effect to principal prepayments received in the related Prepayment Period) minus the OC Floor for Loan Subgroup 1-1.

Subgroup 1-2 Certificates:  As defined in the Preliminary Statement.

Subgroup 1-2 Certificate Insurer Reimbursement Amount: With respect to any Distribution Date, any amount owing to the Certificate Insurer under Section 4.02 or 4.07 for reimbursement, with interest, for claims paid with respect to the Class 1-2A2 Certificates under the Certificate Insurance Policy and any amounts with respect to the Class 1-2A2 Certificates owing to the Certificate Insurer and remaining unpaid for such Distribution Date.

Subgroup 1-2 Loans:  Those Mortgage Loans identified on the Mortgage Loan Schedule as Subgroup 1-2 Loans.

Subgroup 1-2 Premium Distribution Amount:  With respect to any Distribution Date, the sum of (A) the product of (x) the Certificate Insurer Fee Rate multiplied by (y) the aggregate Class Principal Balance of the Class 1-2A2 Certificates immediately preceding such Distribution Date, not taking into account any payments made under the Certificate Insurance Policy, multiplied by (a) 12 for the first Distribution Date, or (b) for each Distribution Date thereafter, the number of days that elapsed in the related Accrual Period on a 30/360 basis, in each case, divided by 360 and (B) the Subgroup 1-2 Premium Distribution Amount for any prior Distribution Date, plus interest thereon at the Late Payment Rate.

Subgroup 1-2 Principal Distribution Amount:  With respect to each Distribution Date, the product of (i) the Group 1 Principal Distribution Amount for such Distribution Date and (ii) a fraction, the numerator of which is the Principal Remittance Amount for Loan Subgroup 1-2 for that Distribution Date and the denominator of which is the aggregate Principal Remittance Amount for Loan Group 1 for that Distribution Date.

Subgroup 1-2 Senior Principal Distribution Amount:  With respect to each Distribution Date, the excess of: (a) the aggregate Class Principal Balance of the Subgroup 1-2 Certificates immediately prior to such Distribution Date, over (b) the lesser of (A) the product of (i) (x) approximately 70.000% on any Distribution Date on or after the Stepdown Date and prior to the Distribution Date in May 2013 or (y) approximately 76.000% on any Distribution Date on or after the Stepdown Date and on or after the Distribution Date in May 2013 and (ii) the aggregate Stated Principal Balance of the Subgroup 1-2 Loans as of the Due Date in the month of that Distribution Date (after giving effect to principal prepayments received in the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Subgroup 1-2 Loans as of the Due Date in the month of that Distribution Date (after giving effect to principal prepayments received in the related Prepayment Period) minus the OC Floor for Loan Subgroup 1-2.

Subgroup 2-1 Certificates:  As defined in the Preliminary Statement.

Subgroup 2-1 Certificate Insurer Reimbursement Amount: With respect to any Distribution Date, any amount owing to the Certificate Insurer under Section 4.02, 4.09, or 4.11 for reimbursement, with interest, for claims paid with respect to the Class 2-1A2 Certificates under the Certificate Insurance Policy and any amounts with respect to the Class 2-1A2 Certificates owing to the Certificate Insurer and remaining unpaid for such Distribution Date.

Subgroup 2-1 Loans:  Those Mortgage Loans identified on the Mortgage Loan Schedule as Subgroup 2-1 Loans.

Subgroup 2-1 Premium Distribution Amount:  With respect to any Distribution Date, the sum of (A) the product of (x) the Certificate Insurer Fee Rate multiplied by (y) the aggregate Class Principal Balance of the Class 2-1A2 Certificates immediately preceding such Distribution Date, not taking into account any payments made under the Certificate Insurance Policy, multiplied by (a) 12 for the first Distribution Date, or (b) for each Distribution Date thereafter, the number of days that elapsed in the related Accrual Period on a 30/360 basis, in each case, divided by 360 and (B) the Subgroup 2-1 Premium Distribution Amount for any prior Distribution Date, plus interest thereon at the Late Payment Rate.

Subgroup 2-1 Principal Distribution Amount:  With respect to each Distribution Date, the product of (i) the Group 2 Principal Distribution Amount for such Distribution Date and (ii) a fraction, the numerator of which is the Principal Remittance Amount for Loan Subgroup 2-1 for that Distribution Date and the denominator of which is the aggregate Principal Remittance Amount for Loan Group 2 for that Distribution Date.

Subgroup 2-1 Senior Principal Distribution Amount:  With respect to each Distribution Date, the excess of: (a) the aggregate Class Principal Balance of the Subgroup 2-1 Certificates immediately prior to such Distribution Date, over (b) the lesser of (A) the product of (i) (x) approximately 76.500% on any Distribution Date on or after the Stepdown Date and prior to the Distribution Date in May 2013 or (y) approximately 81.200% on any Distribution Date on or after the Stepdown Date and on or after the Distribution Date in May 2013 and (ii) the aggregate Stated Principal Balance of the Subgroup 2-1 Loans as of the Due Date in the month of that Distribution Date (after giving effect to principal prepayments received in the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Subgroup 2-1 Loans as of the Due Date in the month of that Distribution Date (after giving effect to principal prepayments received in the related Prepayment Period) minus the OC Floor for Loan Subgroup 2-1.

Subgroup 2-2 Certificates:  As defined in the Preliminary Statement.

Subgroup 2-2 Certificate Insurer Reimbursement Amount: With respect to any Distribution Date, any amount owing to the Certificate Insurer under Section 4.02, 4.09, or 4.11 for reimbursement, with interest, for claims paid with respect to the Class 2-2A3 and Class 2-2A6 Certificates under the Certificate Insurance Policy and any amounts with respect to the Class 2-2A3 and Class 2-2A6 Certificates owing to the Certificate Insurer and remaining unpaid for such Distribution Date.

Subgroup 2-2 Loans:  Those Mortgage Loans identified on the Mortgage Loan Schedule as Subgroup 2-2 Loans.

Subgroup 2-2 Premium Distribution Amount:  With respect to any Distribution Date, the sum of (A) the product of (x) the Certificate Insurer Fee Rate multiplied by (y) the aggregate Class Principal Balance of the Class 2-2A3 and Class 2-2A6 Certificates immediately preceding such Distribution Date, not taking into account any payments made under the Certificate Insurance Policy, multiplied by (a) 12 for the first Distribution Date, or (b) for each Distribution Date thereafter, the number of days that elapsed in the related Accrual Period on a 30/360 basis, in each case, divided by 360 and (B) the Subgroup 2-2 Premium Distribution Amount for any prior Distribution Date, plus interest thereon at the Late Payment Rate.

Subgroup 2-2 Principal Distribution Amount:  With respect to each Distribution Date, the product of (i) the Group 2 Principal Distribution Amount for such Distribution Date and (ii) a fraction, the numerator of which is the Principal Remittance Amount for Loan Subgroup 2-2 for that Distribution Date and the denominator of which is the aggregate Principal Remittance Amount for Loan Group 2 for that Distribution Date.

Subgroup 2-2 Senior Principal Distribution Amount:  With respect to each Distribution Date, the excess of: (a) the aggregate Class Principal Balance of the Subgroup 2-2 Certificates immediately prior to such Distribution Date, over (b) the lesser of (A) the product of (i) (x) approximately  76.500% on any Distribution Date on or after the Stepdown Date and prior to the Distribution Date in May 2013 or (y) approximately 81.200% on any Distribution Date on or after the Stepdown Date and on or after the Distribution Date in May 2013 and (ii) the aggregate Stated Principal Balance of the Subgroup 2-2 Loans as of the Due Date in the month of that Distribution Date (after giving effect to principal prepayments received in the related Prepayment Period) and (B) the aggregate Stated Principal Balance of the Subgroup 2-2 Loans as of the Due Date in the month of that Distribution Date (after giving effect to principal prepayments received in the related Prepayment Period) minus the OC Floor for Loan Subgroup 2-2.

Subgroup Principal Distribution Amount:  Any of the Subgroup 1-1 Principal Distribution Amount, Subgroup 1-2 Principal Distribution Amount, Subgroup 2-1 Principal Distribution Amount, or Subgroup 2-2 Principal Distribution Amount, as applicable.

Subgroup Senior Principal Distribution Amount:  Any of the Subgroup 1-1 Senior Principal Distribution Amount, Subgroup 1-2 Senior Principal Distribution Amount, Subgroup 2-1 Senior Principal Distribution Amount, or Subgroup 2-2 Senior Principal Distribution Amount, as applicable.

Subordinated Portion:  For any Distribution Date and Loan Group, the excess, if any, of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Loan Group as of the Due Date in the prior month (after giving effect to Principal Prepayments in the Prepayment Period related to that prior Due Date) over (y) the aggregate Class Principal Balance of the related Senior Certificates (other than the Interest Only Certificates) immediately prior to such Distribution Date.

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

Subsequent Recoveries: Unanticipated amounts received on a liquidated Mortgage Loan the absence of which resulted in a Realized Loss in a prior month.

Subsidiary REMIC:  As specified in the Preliminary Statement.

Subsidiary REMIC Regular Interest:  As specified in the Preliminary Statement.

Substitution Adjustment Amount: With respect to any Mortgage Loan that is purchased by the originator is an amount equal to the excess of the Principal Balance of the related Deleted Mortgage Loan over the Principal Balance of such Eligible Substitute Mortgage Loan, pursuant to Section 2.03.

Supplemental Interest Trust:  A trust created pursuant to Section 4.06 of this Agreement, separate from the Trust, the corpus of which shall be held by the Supplemental Interest Trust Trustee, in trust, for the benefit of the holders of the Senior Certificates and the Mezzanine Certificates.

Supplemental Interest Trust Trustee:  Wells Fargo, not in its individual capacity, but solely in its capacity as trustee of the Supplemental Interest Trust for the benefit of the Holders of the Certificates under this Agreement, and any successor thereto.

Tax Matters Person:  In the case of each REMIC created by this Agreement, the person designated as “tax matters person” in the manner provided under Treasury Regulations Section 1.860F-4(d) and Treasury Regulations Section 301.6231(a)(7)-1 for such REMIC.

Termination Price:  As defined in Section 10.01(d).

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

Transferor:  UBS Real Estate Securities Inc., a Delaware corporation, seller of the Mortgage Loans to the Depositor pursuant to the Mortgage Loan Purchase Agreement.

Trust:  As defined in Section 2.01(c).

Trust Administrator:  Wells Fargo in its capacity as Trust Administrator hereunder, and its successors and assigns, or any successor trust administrator appointed hereunder.

Trust Administrator Compensation:  All investment earnings on amounts on deposit in the Distribution Account.

Trust Collateral:  As defined in Section 10.01(a).

Trust Fund:  The corpus of the trust created hereunder consisting of:  (a) the Mortgage Loan Purchase Agreement and the Servicing Agreements solely as each such Servicing Agreement relates to the Mortgage Loans being serviced by the related Servicer (other than those rights under the Servicing Agreements that do not relate to servicing of the Mortgage Loans (including, without limitation, the representations and warranties made by the applicable  Servicer (with respect to the Mortgage Loans sold to the Transferor) and the document delivery requirements of such Servicer and the remedies (including indemnification) available for breaches thereto), which rights were retained by the Transferor pursuant to the Assignment Agreements); (b) the Mortgage Loans and all interest and principal received on or with respect thereto after the Cut-off Date to the extent not applied in computing the Cut-off Date Principal Balance thereof; (c) the Collection Account, the Policy Payments Account, the Distribution Account and all amounts deposited therein pursuant to the applicable provisions of this Agreement (other than, in the case of the Collection Account, any prepayment penalties (exclusive of the Class P Prepayment Charges) deposited therein which shall be retained by the Transferor); (d) property that secured a Mortgage Loan and has been acquired by foreclosure, deed-in-lieu of foreclosure or otherwise; and (e) all proceeds of the conversion, voluntary or involuntary, of any of the foregoing.

Trustee:  U.S. Bank, and, if a successor trustee is appointed hereunder, such successor.

UBSRES:  UBS Real Estate Securities Inc., and its successors and assigns.

Underwriter’s Exemption:  Prohibited Transaction Exemption 2007-5, 72 Fed. Reg. 13130 (2007), as amended (or any successor thereto), or any substantially similar administrative exemption granted by the U.S. Department of Labor.

Unpaid Realized Loss Amount:  For any Class of Certificates, (x) the portion of the aggregate Applied Realized Loss Amount previously allocated to that Class remaining unpaid from prior Distribution Dates minus (y) any increase in the Class Principal Balance of that Class due to the allocation of Subsequent Recoveries to the Class Principal Balance of that Class.

U.S. Bank:  U.S. Bank National Association, a national banking association organized under the laws of the United States, and its successors and assigns.

Voting Rights:  The portion of the voting rights of all of the Certificates which is allocated to any Certificate. With respect to any date of determination, 98% of all Voting Rights will be allocated among the holders of the Senior Certificates, the Mezzanine Certificates and the Class C Certificates in proportion to the then outstanding Certificate Principal Balances of their respective Certificates, 1% of all Voting Rights will be allocated among the holders of the Class P Certificates and 1% of all Voting Rights will be allocated among the holders of the Residual Certificates. The Voting Rights allocated to each Class of Certificate shall be allocated among Holders of each such Class in accordance with their respective Percentage Interests as of the most recent Record Date.

Wells Fargo:  Wells Fargo Bank, N.A. , a national banking association organized under the laws of the United States, and its successors and assigns.

Section 1.02.  Certain Calculations.  

Unless otherwise specified herein, for purposes of determining amounts with respect to the Certificates and the rights and obligations of the parties hereto, all calculations of interest for the Delay Certificates (other than as provided in the Mortgage Loan documents) provided for herein shall be made on the basis of a 360-day year consisting of twelve 30 day months and all calculations of interest for the No Delay Certificates (other than as provide din the Mortgage Loan documents) provided for herein shall be made on the basis of the actual number of days in a year assumed to consist of 360 days.

Section 1.03.  Rights of the NIMS Insurer.

Each of the rights of the NIMS Insurer set forth in this Agreement shall exist so long as (i) the NIMS Insurer has undertaken to guarantee certain payments of notes issued pursuant to the Indenture and (ii) the notes issued pursuant to the Indenture remain outstanding or the NIMS Insurer is owed amounts in respect of its guarantee of payment on such notes; provided, however, the NIMS Insurer shall not have any rights hereunder (except pursuant to Section 11.01 and any rights to indemnification hereunder in the case of clause (ii) below) so long as (i) the NIMS Insurer has not undertaken to guarantee certain payments of notes issued pursuant to the Indenture or (ii) any default has occurred and is continuing under the insurance policy issued by the NIMS Insurer with respect to such notes.

ARTICLE II

CONVEYANCE OF MORTGAGE LOANS;

REPRESENTATIONS AND WARRANTIES

Section 2.01.  Conveyance of Mortgage Loans.  

(a)

The Depositor, concurrently with the execution and delivery hereof, hereby sells, transfers, assigns, sets over and otherwise conveys to the Trustee for the benefit of the Certificateholders and the Certificate Insurer, without recourse, all the right, title and interest of the Depositor in and to the Trust Fund together with all rights assigned by the Transferor to the Depositor, pursuant to the Mortgage Loan Purchase Agreement, solely with respect to the Mortgage Loans, and, solely with respect to the Mortgage Loans, all of the Transferor’s right, title and interest in and to the Servicing Agreements solely as each such Servicing Agreement relates to the Mortgage Loans being serviced by the related Servicer (other than those rights under the Servicing Agreements that do not relate to servicing of the Mortgage Loans (including, without limitation, the representations and warranties made by each Servicer (in its capacity as loan seller to the Transferor) and the document delivery requirements of such Servicer and the remedies (including indemnification) available for breaches thereto), which rights were retained by the Transferor pursuant to the Assignment Agreements.  In connection with the foregoing assignments, the Transferor has caused each Servicer to enter into the related Assignment Agreement.  

(b)

(i) In connection with the transfer and assignment set forth in clause (a) above, the Depositor has delivered or caused to be delivered to the Custodian, on behalf of the Trustee, for the benefit of the Certificateholders and the Certificate Insurer the following documents or instruments with respect to each Mortgage Loan that is not a Cooperative Mortgage Loan so assigned:

(A)

the original Mortgage Note endorsed by manual or facsimile signature in blank in the following form:  “Pay to the order of ___________ without recourse,” with all intervening endorsements showing a complete chain of endorsement from the originator to the Person endorsing the Mortgage Note (each such endorsement being sufficient to transfer all right, title and interest of the party so endorsing, as noteholder or assignee thereof, in and to that Mortgage Note); or, with respect to any Lost Mortgage Note, a lost note affidavit from the related originator, a custodian or the Transferor stating that the original Mortgage Note was lost or destroyed, together with a copy of such Mortgage Note;

(B)

except as provided below, the original recorded Mortgage or a copy of such Mortgage certified by the related originator as being a true and complete copy of the Mortgage;

(C)

a duly executed assignment of the Mortgage (which may be included in a blanket assignment or assignments), endorsed in blank (except with respect to MERS designated Mortgage Loans) together with, except as provided below, all interim recorded assignments of such mortgage (each such assignment, when duly and validly completed, to be in recordable form and sufficient to effect the assignment of and transfer to the assignee thereof, under the Mortgage to which the assignment relates); provided that, if the related Mortgage has not been returned from the applicable public recording office, such assignment of the Mortgage may exclude the information to be provided by the recording office;

(D)

the original or copies of each assumption, modification, written assurance or substitution agreement, if any; and

(E)

except as provided below, the original or duplicate original lender’s title policy and all riders thereto.

(ii)

In connection with the transfer and assignment set forth in clause (a) above, the Depositor has delivered or caused to be delivered to the Custodian, on behalf of the Trustee, for the benefit of the Certificateholders and the Certificate Insurer the following documents or instruments with respect to each Cooperative Mortgage Loan so assigned:

(A)

the Cooperative Shares, together with the Stock Power in blank;

(B)

the executed Security Agreement;

(C)

the executed Proprietary Lease and the Assignment of Proprietary Lease to the originator of the Cooperative Mortgage Loan;

(D)

the executed Recognition Agreement, if any;

(E)

copies of the original Financing Statement, and any continuation statements, filed by the originator of such Cooperative Mortgage Loan as secured party, each with evidence of recording thereof, evidencing the interest of the originator under the Security Agreement and the Assignment of Proprietary Lease;

(F)

copies of the filed UCC assignments or amendments of the security interest referenced in clause (v) above showing an unbroken chain of title from the originator to the Trust, each with evidence of recording thereof, evidencing the interest of the assignee under the Security Agreement and the Assignment of Proprietary Lease;

(G)

an executed assignment of the interest of the originator in the Security Agreement, the Assignment of Proprietary Lease and the Recognition Agreement, showing an unbroken chain of title from the originator to the Trust; and

(H)

for any Cooperative Mortgage Loan that has been modified or amended, the original instrument or instruments effecting such modification or amendment.

Notwithstanding the foregoing, if any Mortgage has been recorded in the name of Mortgage Electronic Registration System, Inc. (“MERS”) or its designee, no assignment of Mortgage in favor of the Trustee will be required to be prepared or delivered and instead, the Master Servicer shall enforce the obligations of the applicable Servicer under its related Servicing Agreement to cause the Trustee to be shown as the owner of the related Mortgage Loan on the records of MERS for the purpose of the system of recording transfers of beneficial ownership of mortgages maintained by MERS.

If in connection with any Mortgage Loan the Depositor cannot deliver (a) the original recorded Mortgage, (b) all interim recorded assignments or (c) the lender’s title policy (together with all riders thereto) satisfying the requirements of clause (b)(i)(B), (C) or (E) above, respectively, concurrently with the execution and delivery hereof because such document or documents have not been returned from the applicable public recording office in the case of clause (b)(i)(B) or (C) above, or because the title policy has not been delivered to either the Custodian or the Depositor by the applicable title insurer in the case of clause (b)(i)(E) above, the Depositor shall promptly deliver to the Custodian, in the case of clause (b)(i)(B) or (C) above, such original Mortgage or such interim assignment, as the case may be, with evidence of recording indicated thereon upon receipt thereof from the public recording office, or a copy thereof, certified, if appropriate, by the relevant recording office, but in no event shall any such delivery of the original Mortgage and each such interim assignment or a copy thereof, certified, if appropriate, by the relevant recording office, be made later than one year following the Closing Date, or, in the case of clause (b)(i)(E) above, no later than 120 days following the Closing Date; provided, however, in the event the Depositor is unable to deliver by such date each Mortgage and each such interim assignment by reason of the fact that any such documents have not been returned by the appropriate recording office, or, in the case of each such interim assignment, because the related Mortgage has not been returned by the appropriate recording office, the Depositor shall deliver such documents to the Custodian as promptly as possible upon receipt thereof and, in any event, within 720 days following the Closing Date.  The Depositor shall forward or cause to be forwarded to the Custodian (a) from time to time additional original documents evidencing an assumption or modification of a Mortgage Loan and (b) any other documents required to be delivered by the Depositor to the Custodian.  In the event that the original Mortgage is not delivered and in connection with the payment in full of the related Mortgage Loan and the public recording office requires the presentation of a “lost instruments affidavit and indemnity” or any equivalent document, because only a copy of the Mortgage can be delivered with the instrument of satisfaction or reconveyance, the Custodian shall execute and deliver or cause to be executed and delivered such a document to the public recording office.  In the case where a public recording office retains the original recorded Mortgage or in the case where a Mortgage is lost after recordation in a public recording office, the Transferor shall deliver to the Custodian a copy of such Mortgage certified by such public recording office to be a true and complete copy of the original recorded Mortgage.

If an assignment of Mortgage is to be recorded, the Depositor shall cause the Mortgage to be assigned to “U.S. Bank National Association, in trust for the MASTR Adjustable Rate Mortgages Trust 2007-3 for the benefit of the Holders of the Mortgage Pass-Through Certificates, Series 2007-3” and, subject to Section 2.02, the Master Servicer shall enforce the obligations of the related Servicer pursuant to the related Servicing Agreement to (i) cause such assignment to be in proper form for recording in the appropriate public office for real property records and (ii) cause to be delivered for recording in the appropriate public office for real property records the assignments of the Mortgages to the Trustee, except that, with respect to any assignments of Mortgage as to which the related Servicer has not received the information required to prepare such assignment in recordable form, the related Servicer’s obligation to do so and to deliver the same for such recording shall be as soon as practicable after receipt of such information and in any event within ninety (90) days after receipt thereof and except that the related Servicer need not cause to be recorded any assignment which relates to a Mortgage Loan (a) in any state where, in an Opinion of Counsel addressed to the Trustee, such recording is not required to protect the Trustee’s interests in the Mortgage Loan against the claim of any subsequent transferee or any successor to or creditor of the Depositor or the Transferor, (b) in any state where recordation is not required by either Rating Agency to obtain the initial ratings on the Certificates set forth in the Prospectus Supplement or (c) with respect to any Mortgage which has been recorded in the name of MERS, or its designee.  As of the date hereof, recordation is not required in any state by either Rating Agency to obtain the initial rating on the Certificates (upon which statement the Master Servicer, the Trustee and the Custodian may conclusively rely).

In the case of Mortgage Loans that have been prepaid in full as of the Closing Date, the Depositor, in lieu of delivering the above documents to the Custodian on behalf of the Trustee, will deposit in the Collection Account the portion of such payment that is required to be deposited in the Collection Account pursuant to Section 3.07 hereof.

(c)

The Depositor does hereby establish, pursuant to the further provisions of this Agreement and the laws of the State of New York, an express trust (the “Trust”) to be known, for convenience, as “MASTR Adjustable Rate Mortgages Trust 2007-3” and U.S. Bank National Association is hereby appointed as Trustee in accordance with the provisions of this Agreement.

(d)

The Depositor and the Trustee on behalf of the Trust agree and understand that it is not intended that any Loan be included in the Trust Fund that is (i) a “High Cost Home Loan” as defined in the New Jersey Home Ownership Act effective November 27, 2003, (ii) a “High Cost Home Loan” as defined in the New Mexico Home Loan Protection Act effective January 1, 2004, (iii) a “High Cost Home Mortgage Loan” as defined in the Massachusetts Predatory Home Loan Practices Act effective November 7, 2004, (iv) a “high risk home loan” under the Illinois High Risk Home Loan Act, effective as of January 1, 2004, or (v) a “high cost home loan” under the Indiana High Cost Home Loan Law, effective January 1, 2005.  The Trustee shall be entitled to indemnification from the Depositor and the Trust Fund for any loss, liability or expense arising out of, or in connection with, the provisions of the preceding sentence, including, without limitation, all costs, liabilities and expenses (including reasonable legal fees and expenses) of investigating and defending itself against any claim, action or proceeding, pending or threatened, relating to such provisions.

(e)

Each of the Collection Account and Distribution Account shall at all times be an Eligible Account, provided that the Collection Account may be deemed to be a sub-account of the Distribution Account.  If at any time either the Collection Account or the Distribution Account ceases to be an Eligible Account, the Master Servicer or the Trust Administrator, as applicable, shall immediately establish and maintain a new Collection Account or Distribution Account, as applicable, that is an Eligible Account, and shall immediately transfer all funds on deposit in the former Collection Account or Distribution Account, as applicable, to the new Collection Account or Distribution Account, as applicable.

(f)

The Depositor hereby directs the Supplemental Interest Trust Trustee to execute, deliver and perform its obligations under the Group 1 Certificate Cap Contract.  The Transferor, the Depositor, the Master Servicer, the Trustee and the Holders of the Senior Certificates and the Mezzanine Certificates by their acceptance of such Certificates acknowledge and agree that the Supplemental Interest Trust Trustee shall execute, deliver and perform its obligations under the Group 1 Certificate Cap Contract and shall do so solely in its capacity as Supplemental Interest Trust Trustee, and not in its individual capacity. Every provision of this Agreement relating to the conduct or affecting the liability of or affording protection to the Trust Administrator shall apply to the Supplemental Interest Trust Trustee’s execution of the Group 1 Certificate Cap Contract, and the performance of its duties and satisfaction of its obligations thereunder.

(g)

The Depositor hereby directs the Supplemental Interest Trust Trustee to execute, deliver and perform its obligations under the Group 1 Basis Risk Cap Contract.  The Transferor, the Depositor, the Master Servicer, the Trustee and the Holders of the Senior Certificates and the Mezzanine Certificates by their acceptance of such Certificates acknowledge and agree that the Supplemental Interest Trust Trustee shall execute, deliver and perform its obligations under the Group 1 Basis Risk Cap Contract and shall do so solely in its capacity as Supplemental Interest Trust Trustee, and not in its individual capacity. Every provision of this Agreement relating to the conduct or affecting the liability of or affording protection to the Trust Administrator shall apply to the Supplemental Interest Trust Trustee’s execution of the Group 1 Basis Risk Cap Contract, and the performance of its duties and satisfaction of its obligations thereunder.

(h)

The Depositor hereby directs the Supplemental Interest Trust Trustee to execute, deliver and perform its obligations under the Group 2 Certificate Cap Contract.  The Transferor, the Depositor, the Master Servicer, the Trustee and the Holders of the Senior Certificates and the Mezzanine Certificates by their acceptance of such Certificates acknowledge and agree that the Supplemental Interest Trust Trustee shall execute, deliver and perform its obligations under the Group 2 Certificate Cap Contract and shall do so solely in its capacity as Supplemental Interest Trust Trustee, and not in its individual capacity. Every provision of this Agreement relating to the conduct or affecting the liability of or affording protection to the Trust Administrator shall apply to the Supplemental Interest Trust Trustee’s execution of the Group 2 Certificate Cap Contract, and the performance of its duties and satisfaction of its obligations thereunder.

(i)

The Depositor hereby directs the Supplemental Interest Trust Trustee to execute, deliver and perform its obligations under the Group 2 Basis Risk Cap Contract.  The Transferor, the Depositor, the Master Servicer, the Trustee and the Holders of the Senior Certificates and the Mezzanine Certificates by their acceptance of such Certificates acknowledge and agree that the Supplemental Interest Trust Trustee shall execute, deliver and perform its obligations under the Group 2 Basis Risk Cap Contract and shall do so solely in its capacity as Supplemental Interest Trust Trustee, and not in its individual capacity. Every provision of this Agreement relating to the conduct or affecting the liability of or affording protection to the Trust Administrator shall apply to the Supplemental Interest Trust Trustee’s execution of the Group 2 Basis Risk Cap Contract, and the performance of its duties and satisfaction of its obligations thereunder.

(j)

The Depositor hereby directs the Supplemental Interest Trust Trustee to execute, deliver and perform its obligations under the Class 2-2A3 Basis Risk Cap Contract.  The Transferor, the Depositor, the Master Servicer, the Trustee and the Holders of the Senior Certificates and the Mezzanine Certificates by their acceptance of such Certificates acknowledge and agree that the Supplemental Interest Trust Trustee shall execute, deliver and perform its obligations under the Class 2-2A3 Basis Risk Cap Contract and shall do so solely in its capacity as Supplemental Interest Trust Trustee, and not in its individual capacity. Every provision of this Agreement relating to the conduct or affecting the liability of or affording protection to the Trust Administrator shall apply to the Supplemental Interest Trust Trustee’s execution of the Class 2-2A3 Basis Risk Cap Contract, and the performance of its duties and satisfaction of its obligations thereunder.

(k)

The Depositor hereby directs the Trustee to execute, deliver and perform its obligations under each of the Assignment Agreements to which it is a party, and to execute any acknowledgement or agreement to any Assignment Agreements, in the forms presented to it by the Depositor, for the benefit of the Holders of the Certificates.  The Trustee shall execute, deliver and perform its obligations under such Assignment Agreements and shall do so solely in its capacity as Trustee of the Trust, and not in its individual capacity. Every provision of this Agreement relating to the conduct or affecting the liability of or affording protection to the Trustee shall apply to the Trustee’s execution of each of the Assignment Agreements to which it is a party, and of any acknowledgement or agreement to any Assignment, and the performance of any obligations thereunder.

Section 2.02.  Acceptance by Trustee of the Mortgage Loans.  

The Custodian, on behalf of the Trustee, acknowledges receipt of the documents identified in the Initial Certification issued by it in the form annexed hereto as Exhibit G and declares that it holds and will hold such related documents and the other documents delivered to it constituting the Mortgage Files, and the Custodian and Trustee together declare that it holds or will hold such other assets as are included in the Trust Fund, in trust for the exclusive use and benefit of all present and future Certificateholders and the Certificate Insurer.  The Custodian acknowledges that it will maintain possession of the Mortgage Notes held by it in the State of Minnesota, unless otherwise permitted by the Rating Agencies, the Trustee and the Certificate Insurer.

The Custodian agrees to execute and deliver on the Closing Date to the Depositor and the Trustee an Initial Certification in the form annexed hereto as Exhibit G.  Based on its review and examination, and only as to the documents identified in such Initial Certification, the  Custodian acknowledges, subject to any applicable exceptions noted on Exhibit G, that such documents appear regular on their face and relate to such Mortgage Loan.  The Custodian shall be under no duty or obligation to (i) inspect, review or examine said documents, instruments, certificates or other papers to determine that the same are genuine, enforceable or appropriate for the represented purpose or that they have actually been recorded in the real estate records or that they are other than what they purport to be on their face or (ii) determine whether the Mortgage File should include any of the documents specified in Section 2.01(b)(i)(D) with respect to each Mortgage Loan that is not a Cooperative Mortgage Loan and Section 2.01(b)(ii)(H) with respect to each Cooperative Mortgage Loan, unless the Mortgage Loan Schedule indicates that such documents are applicable.

Not later than 90 days after the Closing Date, the Custodian shall deliver to the Depositor, the Certificate Insurer, the Trustee and the Transferor a Final Certification in the form annexed hereto as Exhibit H, with any applicable exceptions noted thereon.  The Custodian shall make available, upon request of any Certificateholder or the Certificate Insurer, a copy of any exceptions noted on the Initial Certification or the Final Certification.  The Custodian shall make available, upon request of the Trustee, the identity of the originator for any Mortgage Loan with a material exception.

If, in the course of such review, the Custodian finds any document constituting a part of a related Mortgage File which does not meet the requirements of Section 2.01, the Custodian shall list such as an exception in the Final Certification; provided, however, that the Custodian shall not make any determination as to whether (i) any endorsement is sufficient to transfer all right, title and interest of the party so endorsing, as noteholder or assignee thereof, in and to that Mortgage Note, (ii) any assignment is in recordable form or is sufficient to effect the assignment of and transfer to the assignee thereof under the mortgage to which the assignment relates or (iii) the Mortgage File should include any of the documents specified in Section 2.01(b)(i)(D) with respect to each Mortgage Loan that is not a Cooperative Mortgage Loan and Section 2.01(b)(ii)(H) with respect to each Cooperative Mortgage Loan, unless the Mortgage Loan Schedule indicates that such documents are applicable.  

Upon receiving each Final Certification from the Custodian, the Trustee shall notify the Transferor and the Certificate Insurer of any document defects listed as exceptions in each such Final Certification.  The Transferor shall promptly correct or cure such document defects, and if the Transferor fails to correct or cure the defect within ninety (90) days of the earlier of its discovery or its receipt of written notice of any document constituting a part of a Mortgage File that does not meet the requirements of Section 2.01, and such defect materially and adversely affects the interests of the Certificateholders or the Certificate Insurer in the related Mortgage Loan, the Transferor shall repurchase the affected Mortgage Loan from the Trustee at the Purchase Price.  In each case, such Deleted Mortgage Loan will be removed from the Trust.  Any such purchase of a Deleted Mortgage Loan shall not be effected prior to the delivery to the Custodian of a Request for Release substantially in the form of Exhibit M.  The Purchase Price for any such Deleted Mortgage Loan shall be paid by the Transferor to the Master Servicer for deposit in the Collection Account on or prior to the Distribution Account Deposit Date for the Distribution Date in the month following the month of repurchase and, upon receipt of such deposit, the Master Servicer shall instruct the Custodian to release, and the Custodian shall release, the related Mortgage File to the Transferor and the Trustee shall execute and deliver at the Transferor’s written request such instruments of transfer or assignment prepared by the Transferor, in each case without recourse, representation or warranty, as shall be necessary to vest in the Transferor, or a designee, the Trustee’s interest in any Deleted Mortgage Loan released pursuant hereto.  The Transferor shall promptly reimburse the Master Servicer and the Trustee for any expenses reasonably incurred by the Master Servicer or the Trustee in respect of enforcing such repurchase by the Transferor.

The Custodian shall retain possession and custody of each related Mortgage File in accordance with and subject to the terms and conditions set forth herein.  Pursuant to the terms of the related Servicing Agreement, the Master Servicer shall cause each of the related Servicers to promptly deliver to the Custodian who shall thereupon promptly deposit within each Mortgage File, upon the execution or receipt thereof, the originals of such other documents or instruments constituting the Mortgage File as come into the possession of the related Servicers from time to time.

It is understood and agreed that the obligations of the Transferor hereunder to purchase any Mortgage Loan which does not meet the requirements of Section 2.01 above or substitute for the related Mortgage Loan an Eligible Substitute Mortgage Loan shall constitute the sole remedies respecting such defect available to the Trustee, the Master Servicer, the Depositor and any Certificateholder.

Section 2.03.  Remedies for Breaches of Representations and Warranties.  

The Transferor hereby makes the representations and warranties set forth in Schedule II hereto, and by this reference incorporated herein, to the Depositor, the Certificate Insurer and the Trustee, as of the Closing Date, or if so specified therein, as of the Cut-off Date.  With respect to any representation and warranties set forth on Schedule II hereto which are made to the best of the Transferor’s knowledge if it is discovered by any of the Depositor, the Certificate Insurer, the Master Servicer, the Transferor, any Servicer, the Trustee or the Trust Administrator that the substance of such representation and warranty is inaccurate and such inaccuracy materially and adversely affects the value of the related Mortgage Loan or the interests of the Certificateholders or the Certificate Insurer therein, notwithstanding the Transferor’s lack of knowledge with respect to the substance of such representation or warranty, such inaccuracy shall be deemed a breach of the applicable representation or warranty.

Upon discovery by any of the Depositor, the Certificate Insurer, the Transferor, the Master Servicer, the Trust Administrator or the Custodian of a breach of a representation or warranty made by the Transferor pursuant to this Section 2.03 that materially and adversely affects the interests of the Certificateholders or the Certificate Insurer in any Mortgage Loan, the party discovering such breach shall give prompt notice thereof to the other parties and the Trustee.  Notwithstanding the foregoing, (i) a breach which causes a Mortgage Loan not to constitute a “qualified mortgage” within the meaning of Section 860G(a)(3) of the Code, or (ii) a breach of any of the representations and warranties set forth in clauses (xiii), (xiv), (xv) and (xxxv) through (l) of Schedule II, in each case, will be deemed automatically to materially and adversely affect the interests of the Certificateholders in such Mortgage Loan.  Upon receiving notice of a breach, the Trustee shall in turn notify the Transferor of such breach.  The Trustee shall enforce the obligations of the Transferor in accordance with this Section 2.03 to correct or cure any such breach of a representation or warranty made herein, and if the Transferor fails to correct or cure the defect within such period, and such defect materially and adversely affects the interests of the Certificateholders and the Certificate Insurer in the related Mortgage Loan, the Trustee shall enforce the Transferor’s obligations hereunder to (i) purchase such Mortgage Loan at the Purchase Price or (ii) substitute for the related Mortgage Loan an Eligible Substitute Mortgage Loan.  In each case, such Deleted Mortgage Loan will be removed from the Trust Fund.

The Transferor hereby covenants that within ninety (90) days of the earlier of its discovery or its receipt of written notice from any party of a breach of any representation or warranty made pursuant to this Section 2.03 which materially and adversely affects the interest of the Certificateholders or the Certificate Insurer in any Mortgage Loan, it shall cure such breach in all material respects, and if such breach is not so cured, shall, (i) if such ninety (90) day period expires prior to the second anniversary of the Closing Date, remove such Deleted Mortgage Loan from the Trust Fund and substitute in its place an Eligible Substitute Mortgage Loan or Mortgage Loans into the Trust Fund, in the manner and subject to the conditions set forth in this Section; or (ii) repurchase the affected Mortgage Loan or Mortgage Loans from the Trustee at the Purchase Price in the manner set forth below.  The Transferor shall promptly reimburse the Master Servicer, the NIMS Insurer, the Certificate Insurer and the Trustee for any expenses reasonably incurred by the Master Servicer, the NIMS Insurer, the Certificate Insurer or the Trustee in respect of enforcing the remedies for such breach by the Transferor.

With respect to any Eligible Substitute Mortgage Loan or Mortgage Loans, the Transferor shall deliver to the Custodian on behalf of the Trustee, for the benefit of the Certificateholders and the Certificate Insurer, the Mortgage Note, the Mortgage, the related assignment of the Mortgage, and such other documents and agreements as are required by Section 2.01, with the Mortgage Note endorsed and the Mortgage assigned as required by Section 2.01.  No substitution is permitted to be made on any day in any calendar month after the Determination Date for such month.

With respect to substitutions made by the Transferor, Scheduled Payments due with respect to Eligible Substitute Mortgage Loans in the month of substitution shall not be part of the Trust Fund and will be retained by the Transferor on the next succeeding Distribution Date.  For the month of substitution, distributions to Certificateholders will include the monthly payment due on any Deleted Mortgage Loan for such month and thereafter the Transferor shall be entitled to retain all amounts received in respect of such Deleted Mortgage Loan.  The Custodian shall amend the Mortgage Loan Schedule for the benefit of the Certificateholders and the Certificate Insurer to reflect the removal of such Deleted Mortgage Loan and the substitution of the Eligible Substitute Mortgage Loan or Loans and the Custodian shall deliver the amended Mortgage Loan Schedule to the Trustee.  Upon such substitution, the Eligible Substitute Mortgage Loan or Loans shall be subject to the terms of this Agreement in all respects, and the Transferor shall be deemed to have made with respect to such Eligible Substitute Mortgage Loan or Loans, as of the date of substitution, the representations and warranties made pursuant to this Section 2.03 with respect to such Mortgage Loan.  Upon any such substitution and the deposit to the Collection Account of the amount required to be deposited therein in connection with such substitution as described in the following paragraph, the Custodian shall release the Mortgage File held for the benefit of the Certificateholders relating to such Deleted Mortgage Loan to the Transferor and the Trustee shall execute and deliver at the Transferor’s direction such instruments of transfer or assignment prepared by the Transferor, without recourse, representation or warranty, as shall be necessary to vest title in the Transferor, as applicable, or its designee, the Trustee’s interest in any Deleted Mortgage Loan substituted for pursuant to this Section 2.03.

For any month in which the Transferor substitutes one or more Eligible Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the Master Servicer will determine the amount (if any) by which the aggregate principal balance of all such Eligible Substitute Mortgage Loans as of the date of substitution is less than the aggregate Principal Balance of all such Deleted Mortgage Loans (after application of the scheduled principal portion of the monthly payments received in the month of substitution).  The amount of such shortage (the “Substitution Adjustment Amount”) plus an amount equal to the aggregate of any unreimbursed Advances with respect to such Deleted Mortgage Loans shall be remitted by the Transferor to the Master Servicer, and the Master Servicer shall deposit such amounts received from the Transferor into the Collection Account on or before the Distribution Account Deposit Date for the Distribution Date in the month succeeding the calendar month during which the related Mortgage Loan became required to be purchased or replaced hereunder.

In the event that the Transferor shall have repurchased a Mortgage Loan, the Purchase Price therefor shall be deposited in the Collection Account pursuant to Section 3.07 on or before the Distribution Account Deposit Date for the Distribution Date in the month following the month during which the Transferor became obligated hereunder to repurchase or replace such Mortgage Loan and upon such deposit of the Purchase Price and receipt of a Request for Release in the form of Exhibit M hereto, the Custodian shall release the related Mortgage File held for the benefit of the Certificateholders and the Certificate Insurer to the Transferor, and the Trustee shall execute and deliver at the Transferor’s direction such instruments of transfer or assignment prepared by the Transferor, in each case without recourse, representation or warranty, as shall be necessary to transfer title from the Trustee.  It is understood and agreed that the obligation under this Agreement of the Transferor to cure, repurchase or replace any Mortgage Loan as to which a breach has occurred and is continuing shall constitute the sole remedies against the Transferor respecting such matters available to Certificateholders, the Master Servicer, the NIMS Insurer, the Depositor, the Trust Administrator or the Trustee on their behalf.

The provisions of this Section 2.03 shall survive the conveyance and assignment of the Mortgage Files to the Trustee and the delivery of the respective Mortgage Files to the Custodian for the benefit of the Trustee, the Certificateholders and the Certificate Insurer.

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

The Depositor hereby represents and warrants to the Trustee, the Trust Administrator, the NIMS Insurer, the Certificate Insurer and the Master Servicer with respect to each Mortgage Loan as of the date hereof or such other date set forth herein that as of the Closing Date, and following the transfer of the Mortgage Loans to it by the Transferor, the Depositor had good title to the Mortgage Loans and the Mortgage Notes were subject to no offsets, liens, defenses or counterclaims.

It is understood and agreed that the representations and warranties set forth in this Section 2.04 shall survive delivery of the Mortgage Files to the Custodian.  Upon discovery by the Depositor, the Transferor, the Master Servicer, the Certificate Insurer, the Trust Administrator, the NIMS Insurer or the Trustee of a breach of any of the foregoing representations and warranties set forth in this Section 2.04 (referred to herein as a “breach”), which breach materially and adversely affects the interest of the Certificateholders or the Certificate Insurer, the party discovering such breach shall give prompt written notice to the other parties hereto and to each Rating Agency.

Section 2.05.  Early Payment Default on IndyMac Serviced Loans.

With respect to any IndyMac Serviced Mortgage Loan, in the event that a Scheduled Payment with respect to such Mortgage Loan becomes thirty days past due at any time on or prior to the first day of the first calendar month following the date that such Mortgage Loan was purchased by the Transferor from IndyMac pursuant to the IndyMac Servicing Agreement, then the Trustee shall enforce the Transferor’s obligation to (a) promptly repurchase the related Mortgage Loan from the Trust Fund in accordance with the procedures set forth in Subsection 2.03 hereof and any such repurchase shall be made at the Purchase Price or (c) substitute for the related Mortgage Loan an Eligible Substitute Mortgage Loan in accordance with the procedures set forth in Section 2.03 hereof.  The request to repurchase a Loan due to early payment default must be made within ninety (90) days of the Trustee’s receipt of notice from the Transferor of such early payment default.  After the ninety (90) day period elapses, the option to request repurchase of any such Mortgage Loan for early payment default reasons irrevocably expires.

Section 2.06.  Execution and Delivery of Certificates.  

The Trustee acknowledges the transfer and assignment to it of the Trust Fund and acknowledges the issuance of the Subsidiary and Middle REMIC 1 and Middle REMIC 2 Regular Interests, all as described in the Preliminary Statement and the Residual Certificates in exchange therefor.  The Trustee further acknowledges the transfer and assignment to it of the Subsidiary and Middle REMIC 1 and Middle REMIC 2 Regular Interests and, concurrently with such transfer and assignment, the Trust Administrator, on its behalf, has executed, authenticated and delivered to or upon the order of the Depositor, the Certificates in authorized denominations evidencing directly or indirectly the entire ownership of the Trust Fund.  The Trustee agrees to hold the Trust Fund, the Subsidiary and Middle REMIC 1 and Middle REMIC 2 Regular Interests and to exercise the rights referred to above for the benefit of all present and future Holders of the Certificates and the Certificate Insurer and to perform the duties set forth in this Agreement to the best of its ability, to the end that the interests of the Holders of the Certificates and the Certificate Insurer may be adequately and effectively protected.

Section 2.07.  REMIC Matters.  

The Preliminary Statement sets forth the designations as “regular interests” or “residual interests” and “latest possible maturity date” for federal income tax purposes of all interests created hereby.  The “Startup Day” for purposes of the REMIC Provisions shall be the Closing Date.  Each REMIC shall have the calendar year as its fiscal year and shall use the accrual method of accounting.

Section 2.08.  Covenants of the Master Servicer.  

The Master Servicer hereby covenants to the Depositor and the Trustee as follows:

(i)

subject to Section 3.01, the Master Servicer shall cause each Servicer to perform its obligations under the applicable Servicing Agreement; and

(ii)

no written information, certificate of an officer, statement furnished in writing or written report delivered to the Depositor, any affiliate of the Depositor or the Trustee and prepared by the Master Servicer pursuant to this Agreement will contain any untrue statement of a material fact or omit to state a material fact necessary to make such information, certificate, statement or report not misleading at the time provided.

Section 2.09.  Representations and Warranties of the Master Servicer.  

The Master Servicer hereby represents and warrants to the Depositor, the Trustee and the Certificate Insurer, as of the Closing Date, or if so specified herein, as of the Cut-off Date:

(a)

The Master Servicer is duly organized as a national banking association and is validly existing and in good standing under the laws of the United States of America and is duly authorized and qualified to transact any and all business contemplated by this Agreement to be conducted by the Master Servicer in any state in which a Mortgaged Property is located or is otherwise not required under applicable law to effect such qualification and, in any event, is in compliance with the doing business laws of any such state, to master service the Mortgage Loans in accordance with the terms of this Agreement and to perform any of its other obligations under this Agreement in accordance with the terms hereof.

(b)

The Master Servicer has the full power and authority to master service each Mortgage Loan, and to execute, deliver and perform, and to enter into and consummate the transactions contemplated by this Agreement and has duly authorized by all necessary action on the part of the Master Servicer the execution, delivery and performance of this Agreement; and this Agreement, assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes a legal, valid and binding obligation of the Master Servicer, enforceable against the Master Servicer in accordance with its terms, except that (i) the enforceability hereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally and (ii) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding relating thereto may be brought.

(c)

The execution and delivery of this Agreement by the Master Servicer, and the master servicing of the Mortgage Loans by the Master Servicer under this Agreement, the consummation of any other of the transactions contemplated by this Agreement, and the fulfillment of or compliance with the terms hereof are in the ordinary course of business of the Master Servicer and will not (i) result in a material breach of any term or provision of the articles of incorporation or by-laws of the Master Servicer, (ii) materially conflict with, result in a material breach, violation or acceleration of, or result in a material default under, the terms of any other material agreement or instrument to which the Master Servicer is a party or by which it may be bound, or (iii) constitute a material violation of any statute, order or regulation applicable to the Master Servicer of any court, regulatory body, administrative agency or governmental body having jurisdiction over the Master Servicer; and the Master Servicer is not in breach or violation of any material indenture or other material agreement or instrument, or in violation of any statute, order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over it which breach or violation may materially impair the Master Servicer’s ability to perform or meet any of its obligations under this Agreement.

(d)

The Master Servicer or an affiliate thereof is an approved servicer of conventional mortgage loans for Fannie Mae or Freddie Mac and is a mortgagee approved by the Secretary of Housing and Urban Development pursuant to Sections 203 and 211 of the National Housing Act.

(e)

No litigation is pending or, to the knowledge of the Master Servicer, threatened against the Master Servicer that would materially and adversely affect the execution, delivery or enforceability of this Agreement or the ability of the Master Servicer to master service the Mortgage Loans or to perform any of its other obligations under this Agreement in accordance with the terms thereof.

(f)

No consent, approval, authorization or, to the knowledge of the Master Servicer, order of any court or governmental agency or body is required for the execution, delivery and performance by the Master Servicer of, or compliance by the Master Servicer with, this Agreement or the consummation of the transactions contemplated thereby, or if any such consent, approval, authorization or order is required, the Master Servicer has obtained the same.

Section 2.10.  Representations and Warranties of the Custodian.  

The Custodian hereby represents and warrants to the Depositor, the Master Servicer, the Trust Administrator, the Certificate Insurer and the Trustee, as of the Closing Date, or if so specified herein, as of the Cut-off Date:

(a)

The Custodian is duly organized as a national banking association and is validly existing and in good standing under the laws of the United States of America and is duly authorized and qualified to transact any and all business contemplated by this Agreement to be conducted by the Custodian in any state in which a Mortgaged Property is located or is otherwise not required under applicable law to effect such qualification and, in any event, is in compliance with the doing business laws of any such state, to the extent necessary to perform any of its obligations under this Agreement in accordance with the terms thereof.

(b)

Such Custodian has the full power and authority to execute, deliver and perform, and to enter into and consummate the transactions contemplated by this Agreement and has duly authorized by all necessary action on the part of the Custodian the execution, delivery and performance of this Agreement; and this Agreement, assuming the due authorization, execution and delivery thereof by the other parties thereto, constitutes a legal, valid and binding obligation of the Custodian, enforceable against the Custodian in accordance with its terms, except that (i) the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally and (ii) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

(c)

The execution and delivery of this Agreement by the Custodian, the consummation of any other of the transactions contemplated by this Agreement, and the fulfillment of or compliance with the terms thereof are in the ordinary course of business of the Custodian and will not (i) result in a material breach of any term or provision of the articles of incorporation or by-laws of the Custodian, (ii) materially conflict with, result in a material breach, violation or acceleration of, or result in a material default under, the terms of any other material agreement or instrument to which the Custodian is a party or by which it may be bound, or (iii) constitute a material violation of any statute, order or regulation applicable to the Custodian of any court, regulatory body, administrative agency or governmental body having jurisdiction over the Custodian; and the Custodian is not in breach or violation of any material indenture or other material agreement or instrument, or in violation of any statute, order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over it which breach or violation may materially impair the Custodian’s ability to perform or meet any of its obligations under this Agreement.

(d)

No litigation is pending or, to the knowledge of the Custodian, threatened against the Custodian that would materially and adversely affect the execution, delivery or enforceability of this Agreement or the ability of the Custodian to perform any of its obligations under this Agreement in accordance with the terms thereof.

(e)

No consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery and performance by the Custodian of, or compliance by the Custodian with, this Agreement or the consummation of the transactions contemplated thereby, or if any such consent, approval, authorization or order is required, the Custodian has obtained the same.

ARTICLE III

ADMINISTRATION AND MASTER

SERVICING OF MORTGAGE LOANS

Section 3.01.  Master Servicing of Mortgage Loans.

For and on behalf of the Certificateholders and the Certificate Insurer, the Master Servicer shall supervise, monitor and oversee the obligation of the Servicers to service and administer their respective Mortgage Loans in accordance with the terms of the applicable Servicing Agreement and shall have full power and authority to do any and all things which it may deem necessary or desirable in connection with such master servicing and administration.  In performing its obligations hereunder, the Master Servicer shall act in a manner consistent with this Agreement, subject to the prior sentence, and with customary and usual standards of practice of prudent mortgage loan master servicers.  Furthermore, the Master Servicer shall oversee and consult with each Servicer as necessary from time to time to carry out the Master Servicer’s obligations hereunder, shall receive, review and evaluate all reports, information and other data provided to the Master Servicer by each Servicer and shall cause each Servicer to perform and observe the covenants, obligations and conditions to be performed or observed by such Servicer under the applicable Servicing Agreement.  The Master Servicer shall independently and separately monitor each Servicer’s servicing activities with respect to each related Mortgage Loan, reconcile the results of such monitoring with such information provided in the previous sentence on a monthly basis and coordinate corrective adjustments to the Servicers’ and Master Servicer’s records, and based on such reconciled and corrected information, prepare the statements specified in Section 4.04 and any other information and statements required hereunder.  The Master Servicer shall reconcile the results of its Mortgage Loan monitoring with the actual remittances of the Servicers to the Collection Account pursuant to the applicable Servicing Agreements.

In accordance with the standards of the preceding paragraph and to the extent the related Servicer does not make such advance, the Master Servicer shall advance or cause to be advanced funds as necessary for the purpose of effecting the payment of taxes and assessments on the Mortgaged Properties, which advances shall be reimbursable in the first instance from related collections from the Mortgagors pursuant to Section 3.07, and further as provided in Section 3.10.  The costs incurred by the Master Servicer, if any, in effecting the timely payment of taxes and assessments on the Mortgaged Properties and related insurance premiums shall not, for the purpose of calculating monthly distributions to the Certificateholders, be added to the Scheduled Principal Balances of the related Mortgage Loans, notwithstanding that the terms of such Mortgage Loans so permit.

Section 3.02.  Monitoring of Servicers.

(a)

The Master Servicer shall be responsible for reporting to the Trustee, the Trust Administrator and the Depositor the compliance by each Servicer with its duties under the related Servicing Agreement.  In the review of each Servicer’s activities, the Master Servicer may rely upon an officer’s certificate of the Servicer with regard to such Servicer’s compliance with the terms of its Servicing Agreement.  In the event that the Master Servicer, in its judgment, determines that a Servicer should be terminated in accordance with its Servicing Agreement, or that a notice should be sent pursuant to such Servicing Agreement with respect to the occurrence of an event that, unless cured, would constitute grounds for such termination, the Master Servicer shall notify the Depositor, the Trust Administrator, the Certificate Insurer and the Trustee thereof and the Master Servicer shall issue such notice or take such other action as it deems appropriate.

(b)

The Master Servicer, for the benefit of the Trustee, the Trust Administrator, the Certificateholders and the Certificate Insurer, shall enforce the obligations of each Servicer under the related Servicing Agreement, and shall, in the event that a Servicer fails to perform its obligations in accordance with the related Servicing Agreement, subject to the preceding paragraph, terminate the rights and obligations of such Servicer thereunder and act as successor Servicer of the related Mortgage Loans or cause the Trustee to enter into a new Servicing Agreement with a successor Servicer selected by the Master Servicer; provided, however, it is understood and acknowledged by the parties hereto that there will be a period of transition (not to exceed 90 days) before the actual servicing functions can be fully transferred to such successor Servicer.  Such enforcement, including, without limitation, the legal prosecution of claims, termination of Servicing Agreements and the pursuit of other appropriate remedies, shall be in such form and carried out to such an extent and at such time as the Master Servicer, in its good faith business judgment, would require were it the owner of the related Mortgage Loans.  The Master Servicer shall pay the costs of such enforcement at its own expense, provided that the Master Servicer shall not be required to prosecute or defend any legal action except to the extent that the Master Servicer shall have received reasonable indemnity for its costs and expenses in pursuing such action.

(c)

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

(d)

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

(e)

If the Master Servicer acts as Servicer, it will not assume liability for the representations and warranties of the Servicer, if any, that it replaces.

(f)

If a Servicer fails to make its required payment of Compensating Interest on any Distribution Date, the Master Servicer will be required to make such payment of Compensating Interest to the same extent that such Servicer was required to make such payment of Compensating Interest.

(g)

To the extent a Servicer requests the consent of the Trust or the Master Servicer with respect to any servicing-related matter for which the applicable Servicer is required to seek consent under the applicable Servicing Agreement or Assignment Agreement, the Master Servicer shall promptly or within the time frame specified in such Servicing Agreement, if any, evaluate such request for consent in the best interest of the Trust and the Certificateholders, and grant or withhold such consent accordingly.

(h)

To the extent a Servicer is obligated under the related Servicing Agreement to procure the consent of the Master Servicer in connection with the Servicer’s engagement of a Subservicer to perform any servicing responsibilities under the related Servicing Agreement with respect to the related Mortgage Loans, the Master Servicer will only give such consent if that Subservicer first agrees in writing with such Servicer and the Master Servicer to deliver an Annual Statement of Compliance, an Assessment of Compliance and an Accountant’s Attestation in such manner and at such times that permit that Servicer and the Master Servicer to comply with Sections 3.21 and 3.22 of this Agreement.

(i)

The Master Servicer shall enforce any negative covenant in the related Servicing Agreement which prohibits a Servicer from outsourcing one or more separate servicing functions under the related Servicing Agreement with respect to the Mortgage Loans to any Subcontractor unless that Subcontractor first agrees in writing with such Servicer and the Master Servicer to deliver an Assessment of Compliance and an Accountant’s Attestation in such manner and at such times that permits that Servicer and the Master Servicer to comply with Section 3.22 of this Agreement.

Section 3.03.  [Reserved].

Section 3.04.  Rights of the Depositor and the Trustee in Respect of the Master Servicer.

The Depositor may, but is not obligated to, enforce the obligations of the Master Servicer hereunder and may, but is not obligated to, perform, or cause a designee to perform, any defaulted obligation of the Master Servicer hereunder and in connection with any such defaulted obligation to exercise the related rights of the Master Servicer hereunder; provided that the Master Servicer shall not be relieved of any of its obligations hereunder by virtue of such performance by the Depositor or its designee.  Neither the Trustee nor the Depositor shall have any responsibility or liability for any action or failure to act by the Master Servicer or any Servicer nor shall the Trustee or the Depositor be obligated to supervise the performance of the Master Servicer hereunder or any Servicer under any Servicing Agreement or otherwise.

Section 3.05.  Trustee to Act as Master Servicer.

In the event that the Master Servicer shall for any reason no longer be the Master Servicer hereunder (including by reason of a Master Servicer Event of Termination), the Trustee or its successor shall in accordance with Section 7.02 thereupon assume all of the rights and obligations of the Master Servicer hereunder arising thereafter (except that the Trustee shall not be (i) liable for losses of the predecessor Master Servicer pursuant to Section 3.09 hereof (or any acts or omissions of the predecessor Master Servicer hereunder), (ii) obligated to make Advances if it is prohibited from doing so by applicable law, (iii) obligated to effectuate repurchases or substitutions of Mortgage Loans hereunder including, but not limited to, repurchases or substitutions of Mortgage Loans pursuant to Section 2.02 or 2.03 hereof, (iv) responsible for expenses of the Master Servicer pursuant to Section 2.03 hereof, (v) deemed to have made any representations and warranties of the Master Servicer pursuant to Section 2.09 hereunder or (vi) obligated to perform any obligation of the Master Servicer under Section 3.21 or 3.22 with respect to any period of time the Trustee was not the Master Servicer).  Any such assumption shall be subject to Section 7.02 hereof.  If the Master Servicer shall for any reason no longer be the Master Servicer (including by reason of any Master Servicer Event of Termination), the Trustee or its successor may, but shall not be obligated to, succeed to any rights and obligations of the Master Servicer under each subservicing agreement.

The Master Servicer shall, upon request of the Trustee, but at the expense of the Master Servicer, deliver to the assuming party all documents and records relating to each subservicing agreement or substitute subservicing agreement and the Mortgage Loans then being serviced thereunder and an accounting of amounts collected or held by it and otherwise use its best efforts to effect the orderly and efficient transfer of each subservicing agreement or substitute subservicing agreement to the assuming party.

The Trustee or successor master servicer shall be entitled to be reimbursed from the Master Servicer for all costs associated with the transfer of master servicing from the Master Servicer, including, without limitation, any costs or expenses associated with the complete transfer of all master servicing data and the completion, correction or manipulation of such master servicing data as may be required by the Trustee or successor master servicer to correct any errors or insufficiencies in the master servicing data or otherwise to enable the Trustee or successor master servicer to master service the Mortgage Loans properly and effectively.

If the Master Servicer does not pay such reimbursement within thirty (30) days of its receipt of an invoice therefor, such reimbursement shall be an expense of the Trust and the Trustee shall be entitled to withdraw such reimbursement from amounts on deposit in the Distribution Account pursuant to Section 3.10(b)(iii); provided that the Master Servicer shall reimburse the Trust for any such expense incurred by the Trust.

Section 3.06.  Protected Accounts.  

(a)

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

(b)

In accordance with the terms of the applicable Servicing Agreement, amounts on deposit in a Protected Account are required to be invested by the applicable Servicer in Permitted Investments.  The income earned from investments made pursuant to this Section 3.06 shall be paid to the related Servicer under the applicable Servicing Agreement, and the risk of loss of moneys required to be distributed to the Certificateholders resulting from such investments shall be borne by and be the risk of the related Servicer.  The related Servicer (to the extent provided in the Servicing Agreement) shall deposit the amount of any such loss in the Protected Account within two Business Days of receipt of notification of such loss but not later than the second Business Day prior to the Distribution Date on which the moneys so invested are required to be distributed to the Certificateholders.

Section 3.07.  Collection of Mortgage Loan Payments; Accounts.

(a)

The Master Servicer shall enforce the obligation of the Servicers to collect all payments called for under the terms and provisions of the Mortgage Loans to the extent such procedures shall be consistent with the applicable Servicing Agreement and the terms and provisions of any related Required Insurance Policy.

(b)

The Master Servicer shall establish and maintain a Collection Account, which may be deemed to be a sub account of the Distribution Account, into which the Master Servicer shall deposit or cause to be deposited within two Business Days of receipt, except as otherwise specifically provided herein, the following payments and collections remitted by the Servicers, or received by it in respect of Mortgage Loans subsequent to the Cut-off Date (other than in respect of principal and interest due on the Mortgage Loans on or before the Cut-off Date) and the following amounts required to be deposited hereunder:

(i)

all payments on account of principal on the Mortgage Loans, including Principal Prepayments;

(ii)

all payments on account of interest on the Mortgage Loans, net of the related Servicing Fee;

(iii)

all Liquidation Proceeds (including Insurance Proceeds), other than proceeds to be applied to the restoration or repair of the Mortgaged Property or released to the Mortgagor in accordance with the applicable Servicer’s or Master Servicer’s normal servicing procedures, and all Recoveries;

(iv)

any amount required to be deposited by the Master Servicer pursuant to Section 3.07(e) in connection with any losses on Permitted Investments;

(v)

any amounts required to be deposited by the Master Servicer pursuant to Section 3.15(b) and 3.15(d), and in respect of net monthly rental income from REO Property pursuant to Section 3.15 hereof;

(vi)

all Substitution Adjustment Amounts;

(vii)

all Advances made by the Master Servicer pursuant to Section 4.01;

(viii)

any Class P Prepayment Charges;

(ix)

any Compensating Interest payments;

(x)

any amounts deposited by the Master Servicer in connection with a deductible clause in any blanket hazard insurance policy in respect of the Mortgage Loans in such Loan Group;

(xi)

all proceeds of a primary mortgage guaranty insurance policy in respect of the Mortgage Loans; and

(xii)

any other amounts required to be deposited hereunder.

In the event that the Master Servicer shall deposit into the Collection Account any amount not required to be deposited, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding.  The Master Servicer shall maintain adequate records with respect to all withdrawals made pursuant to this Section.  All funds deposited in the Collection Account shall be held in trust for the Certificateholders until withdrawn in accordance with Section 3.10.

(c)

[Reserved].

(d)

The Trust Administrator shall establish and maintain, on behalf of the Certificateholders and the Certificate Insurer, the Distribution Account.  The Trust Administrator shall, promptly upon receipt but no later than on the Distribution Account Deposit Date, deposit in the Distribution Account and retain therein the following:

(i)

the aggregate amount remitted by the Master Servicer to the Trust Administrator pursuant to Section 3.10(a)(ix)(A);

(ii)

any amount deposited by the Master Servicer or the Trust Administrator pursuant to Section 3.07(e) in connection with any losses on Permitted Investments; and

(iii)

any other amounts described hereunder which are required to be deposited in the Distribution Account.

In the event that the Master Servicer shall remit any amount not required to be remitted, it may at any time direct the Trust Administrator in writing to withdraw such amount from the Distribution Account, any provision herein to the contrary notwithstanding.  Such direction may be accomplished by delivering an Officer’s Certificate to the Trust Administrator which describes the amounts deposited in error in the Distribution Account.  All funds deposited in the Distribution Account shall be held by the Trust Administrator in trust for the Certificateholders and the Certificate Insurer until disbursed in accordance with this Agreement or withdrawn in accordance with Section 3.10(b).  In no event shall the Trust Administrator incur liability for withdrawals from the Distribution Account at the direction of the Master Servicer.

(e)

Each institution at which the Collection Account or Distribution Account is maintained shall invest the funds on deposit in the Collection Account, as directed in writing by the Master Servicer, or the Distribution Account, as directed in writing by the Trust Administrator, in Permitted Investments.  Funds invested in the Collection Account shall mature not later than the Business Day next preceding the related Distribution Account Deposit Date (except that if such Permitted Investment is an obligation of or is managed by the institution that maintains, or is the custodian for, such account, then such Permitted Investment shall mature not later than such Distribution Account Deposit Date).  Permitted Investments in respect of the Collection Account or the Distribution Account shall not be sold or disposed of prior to their maturity.  All such Permitted Investments shall be made in the name of the Trustee, for the benefit of the Certificateholders and the Certificate Insurer.  All income and gain net of any losses realized from any such investment of funds on deposit in the Collection Account shall be for the benefit of the Master Servicer as Master Servicing Compensation and shall be remitted to it monthly as provided herein.  The amount of any realized losses in the Collection Account incurred in any such account in respect of any such investments shall promptly be deposited by the Master Servicer (from its own funds without any right of reimbursement) in the Collection Account or paid to the Trust Administrator by wire transfer of immediately available funds for deposit into the Distribution Account.  All income and gain (net of any losses realized from any such investment of funds on deposit in the Distribution Account) shall be for the benefit of the Trust Administrator as compensation and shall be remitted to it monthly as provided herein.  The amount of any realized losses in the Distribution Account incurred in any such account in respect of any such investments shall promptly be deposited by the Trust Administrator, in the Distribution Account.  The Trust Administrator shall not be liable for the amount of any loss incurred in respect of any investment or lack of investment of funds held in the Collection Account (except to the extent the Trust Administrator is the obligor and has defaulted thereon), or the Distribution Account, and made in accordance with this Section 3.07.  In the absence of written instructions by the Trust Administrator, all funds on deposit therein shall remain uninvested.  

(f)

The Master Servicer shall give notice to the Trustee, the Trust Administrator, each Rating Agency and the Depositor of any proposed change of the location of the Collection Account prior to any change thereof.  The Trust Administrator shall give notice to the Trustee, the Master Servicer, the Certificate Insurer, each Rating Agency and the Depositor of any proposed change of the location of the Distribution Account prior to any change thereof.

(g)

Each of the Collection Account and Distribution Account, shall at all times be an Eligible Account, provided, that the Collection Account may be deemed to be a sub-account of the Distribution Account.  If at any time either the Collection Account, or Distribution Account, as applicable, ceases to be an Eligible Account, the Master Servicer or the Trust Administrator, as applicable, shall immediately establish and maintain a new Collection Account or Distribution Account, as applicable, that is an Eligible Account, and shall immediately transfer all funds on deposit in the former Collection Account or Distribution Account, as applicable, to the new Collection Account or Distribution Account, as applicable.

(h)

On the Closing Date, the Trust Administrator shall establish and maintain in the name of the Trustee, in trust for the benefit of the Holders of the Offered Certificates, the Group 1 Carryover Reserve Fund and shall deposit $1,000 therein upon receipt from or on behalf of the Depositor of such amount.  The Group 1 Carryover Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation, other moneys held by the Trust Administrator pursuant to this Agreement.

The Trust Administrator shall make withdrawals from the Group 1 Carryover Reserve Fund to make distributions pursuant to Section 4.12 exclusively (other than as expressly provided for in Section 3.10).

Funds in the Group 1 Carryover Reserve Fund may be invested in Permitted Investments at the direction of the Majority of the Holders of the Class 1-C Certificates, which Permitted Investments shall mature not later than the Business Day immediately preceding the first Distribution Date that follows the date of such investment (except that if such Permitted Investment is an obligation of the institution that maintains the Group 1 Carryover Reserve Fund, then such Permitted Investment shall mature not later than such Distribution Date) and shall not be sold or disposed of prior to maturity.  All such Permitted Investments shall be made in the name of the Trust Administrator, for the benefit of the Holders of the Class 1-C Certificates.  Any net investment earnings on such amounts shall be retained therein until withdrawn as provided in Section 3.10.  Any losses incurred in the Group 1 Carryover Reserve Fund in respect of any such investments shall be charged against amounts on deposit in the Group 1 Carryover Reserve Fund (or such investments) immediately as realized.  The Trust Administrator shall not be liable for the amount of any loss incurred in respect of any investment or lack of investment of funds held in the Group 1 Carryover Reserve Fund and made in accordance with this Section 3.05.  The Group 1 Carryover Reserve Fund shall not constitute an asset of any REMIC created hereunder.  The Class 1-C Certificates shall evidence ownership of the Group 1 Carryover Reserve Fund for federal tax purposes.  If no investment direction is received by the Trust Administrator from Holders of the Class 1-C Certificates, funds in the Group 1 Carryover Reserve Fund shall remain uninvested.

(i)

On the Closing Date, the Trust Administrator shall establish and maintain in the name of the Trustee, in trust for the benefit of the Holders of the Offered Certificates, the Group 2 Carryover Reserve Fund and shall deposit $1,000 therein upon receipt from or on behalf of the Depositor of such amount.  The Group 2 Carryover Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation, other moneys held by the Trust Administrator pursuant to this Agreement.

The Trust Administrator shall make withdrawals from the Group 2 Carryover Reserve Fund to make distributions pursuant to Section 4.13 exclusively (other than as expressly provided for in Section 3.10).

Funds in the Group 2 Carryover Reserve Fund may be invested in Permitted Investments at the direction of the Majority of the Holders of the Class 2-C Certificates, which Permitted Investments shall mature not later than the Business Day immediately preceding the first Distribution Date that follows the date of such investment (except that if such Permitted Investment is an obligation of the institution that maintains the Group 2 Carryover Reserve Fund, then such Permitted Investment shall mature not later than such Distribution Date) and shall not be sold or disposed of prior to maturity.  All such Permitted Investments shall be made in the name of the Trust Administrator, for the benefit of the Holders of the Class 2-C Certificates.  Any net investment earnings on such amounts shall be retained therein until withdrawn as provided in Section 3.10.  Any losses incurred in the Group 2 Carryover Reserve Fund in respect of any such investments shall be charged against amounts on deposit in the Group 2 Carryover Reserve Fund (or such investments) immediately as realized.  The Trust Administrator shall not be liable for the amount of any loss incurred in respect of any investment or lack of investment of funds held in the Group 2 Carryover Reserve Fund and made in accordance with this Section 3.05.  The Group 2 Carryover Reserve Fund shall not constitute an asset of any REMIC created hereunder.  The Class 2-C Certificates shall evidence ownership of the Group 2 Carryover Reserve Fund for federal tax purposes. If no investment direction is received by the Trust Administrator from Holders of the Class 2-C Certificates, funds in the Group 2 Carryover Reserve Fund shall remain uninvested.

(j)

On the Closing Date, the Trust Administrator shall establish and maintain in its name, in trust for the benefit of the Supplemental Interest Trust on behalf of the Holders of the Group 1 Certificates and the Certificate Insurer, the Group 1 Certificate Cap Account, and shall deposit $1,000 therein upon receipt from or on behalf of the Depositor of such amount.  All funds on deposit in the Group 1 Certificate Cap Account shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation, other moneys held by the Trust Administrator pursuant to this Agreement.

On each Distribution Date, the Trust Administrator shall deposit into the Group 1 Certificate Cap Account all amounts received in respect of the Group 1 Certificate Cap Contract for the related Accrual Period. The Trust Administrator shall make withdrawals from the Group 1 Certificate Cap Account to make distributions pursuant to Section 4.07 exclusively (other than as expressly provided for in Section 3.10).

Funds in the Group 1 Certificate Cap Account may be invested in Permitted Investments at the direction of the Holders of the Class 1-C Certificates, which Permitted Investments shall mature not later than the Business Day immediately preceding the first Distribution Date that follows the date of such investment (except that if such Permitted Investment is an obligation of the institution that maintains the Group 1 Certificate Cap Account, then such Permitted Investment shall mature not later than such Distribution Date) and shall not be sold or disposed of prior to maturity.  All such Permitted Investments shall be made in the name of the Trust Administrator, for the benefit of the Supplemental Interest Trust, on behalf of the Holders of the Group 1  Certificates.  Any net investment earnings on such amounts shall be retained therein until withdrawn as provided in Section 3.10.  Any losses incurred in the Group 1 Certificate Cap Account in respect of any such investments shall be charged against amounts on deposit in the Group 1 Certificate Cap Account (or the amount of such investments) immediately as realized.  The Trust Administrator shall not be liable for the amount of any loss incurred in respect of any investment or lack of investment of funds held in the Group 1 Certificate Cap Account and made in accordance with this Section 3.07.  The Group 1 Certificate Cap Account will not constitute an asset of the Trust Fund or any REMIC created hereunder.  The Class 1-C Certificates shall evidence ownership of the Group 1 Certificate Cap Account for federal tax purposes.  If no investment direction is received by the Trust Administrator from Holders of the Class 1-C Certificates, funds in the Group 1 Certificate Cap Account shall remain uninvested.

(k)

On the Closing Date, the Trust Administrator shall establish and maintain in its name, in trust for the benefit of the Supplemental Interest Trust on behalf of the Holders of the Group 1 Certificates, the Group 1 Basis Risk Cap Account, and shall deposit $1,000 therein upon receipt from or on behalf of the Depositor of such amount.  All funds on deposit in the Group 1 Basis Risk Cap Account shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation, other moneys held by the Trust Administrator pursuant to this Agreement.

On each Distribution Date, the Trust Administrator shall deposit into the Group 1 Basis Risk Cap Account all amounts received in respect of the Group 1 Basis Risk Cap Contract for the related Accrual Period. The Trust Administrator shall make withdrawals from the Group 1 Basis Risk Cap Account to make distributions pursuant to Section 4.08 exclusively (other than as expressly provided for in Section 3.10).

Funds in the Group 1 Basis Risk Cap Account may be invested in Permitted Investments at the direction of the Holders of the Class 1-C Certificates, which Permitted Investments shall mature not later than the Business Day immediately preceding the first Distribution Date that follows the date of such investment (except that if such Permitted Investment is an obligation of the institution that maintains the Group 1 Basis Risk Cap Account, then such Permitted Investment shall mature not later than such Distribution Date) and shall not be sold or disposed of prior to maturity.  All such Permitted Investments shall be made in the name of the Trust Administrator, for the benefit of the Supplemental Interest Trust, on behalf of the Holders of the Group 1  Certificates.  Any net investment earnings on such amounts shall be retained therein until withdrawn as provided in Section 3.10.  Any losses incurred in the Group 1 Basis Risk Cap Account in respect of any such investments shall be charged against amounts on deposit in the Group 1 Basis Risk Cap Account (or the amount of such investments) immediately as realized.  The Trust Administrator shall not be liable for the amount of any loss incurred in respect of any investment or lack of investment of funds held in the Group 1 Basis Risk Cap Account and made in accordance with this Section 3.07.  The Group 1 Basis Risk Cap Account will not constitute an asset of the Trust Fund or any REMIC created hereunder.  The Class 1-C Certificates shall evidence ownership of the Group 1 Basis Risk Cap Account for federal tax purposes.  If no investment direction is received by the Trust Administrator from Holders of the Class 1-C Certificates, funds in the Group 1 Basis Risk Cap Account shall remain uninvested.

(l)

On the Closing Date, the Trust Administrator shall establish and maintain in its name, in trust for the benefit of the Supplemental Interest Trust on behalf of the Holders of the Group 2 Certificates and the Certificate Insurer, the Group 2 Certificate Cap Account, and shall deposit $1,000 therein upon receipt from or on behalf of the Depositor of such amount.  All funds on deposit in the Group 2 Certificate Cap Account shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation, other moneys held by the Trust Administrator pursuant to this Agreement.

On each Distribution Date, the Trust Administrator shall deposit into the Group 2 Certificate Cap Account all amounts received in respect of the Group 2 Certificate Cap Contract for the related Accrual Period. The Trust Administrator shall make withdrawals from the Group 2 Certificate Cap Account to make distributions pursuant to Section 4.09 exclusively (other than as expressly provided for in Section 3.10).

Funds in the Group 2 Certificate Cap Account may be invested in Permitted Investments at the direction of the Holders of the Class 2-C Certificates, which Permitted Investments shall mature not later than the Business Day immediately preceding the first Distribution Date that follows the date of such investment (except that if such Permitted Investment is an obligation of the institution that maintains the Group 2 Certificate Cap Account, then such Permitted Investment shall mature not later than such Distribution Date) and shall not be sold or disposed of prior to maturity.  All such Permitted Investments shall be made in the name of the Trust Administrator, for the benefit of the Supplemental Interest Trust, on behalf of the Holders of the Group 2  Certificates.  Any net investment earnings on such amounts shall be retained therein until withdrawn as provided in Section 3.10.  Any losses incurred in the Group 2 Certificate Cap Account in respect of any such investments shall be charged against amounts on deposit in the Group 2 Certificate Cap Account (or the amount of such investments) immediately as realized.  The Trust Administrator shall not be liable for the amount of any loss incurred in respect of any investment or lack of investment of funds held in the Group 2 Certificate Cap Account and made in accordance with this Section 3.07.  The Group 2 Certificate Cap Account will not constitute an asset of the Trust Fund or any REMIC created hereunder.  The Class 2-C Certificates shall evidence ownership of the Group 2 Certificate Cap Account for federal tax purposes.  If no investment direction is received by the Trust Administrator from Holders of the Class 2-C Certificates, funds in the Group 2 Certificate Cap Account shall remain uninvested.

(m)

On the Closing Date, the Trust Administrator shall establish and maintain in its name, in trust for the benefit of the Supplemental Interest Trust on behalf of the Holders of the Group 2 Certificates, the Group 2 Basis Risk Cap Account, and shall deposit $1,000 therein upon receipt from or on behalf of the Depositor of such amount.  All funds on deposit in the Group 2 Basis Risk Cap Account shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation, other moneys held by the Trust Administrator pursuant to this Agreement.

On each Distribution Date, the Trust Administrator shall deposit into the Group 2 Basis Risk Cap Account all amounts received in respect of the Group 2 Basis Risk Cap Contract for the related Accrual Period. The Trust Administrator shall make withdrawals from the Group 2 Basis Risk Cap Account to make distributions pursuant to Section 4.10 exclusively (other than as expressly provided for in Section 3.10).

Funds in the Group 2 Basis Risk Cap Account may be invested in Permitted Investments at the direction of the Holders of the Class 2-C Certificates, which Permitted Investments shall mature not later than the Business Day immediately preceding the first Distribution Date that follows the date of such investment (except that if such Permitted Investment is an obligation of the institution that maintains the Group 2 Basis Risk Cap Account, then such Permitted Investment shall mature not later than such Distribution Date) and shall not be sold or disposed of prior to maturity.  All such Permitted Investments shall be made in the name of the Trust Administrator, for the benefit of the Supplemental Interest Trust, on behalf of the Holders of the Group 2  Certificates.  Any net investment earnings on such amounts shall be retained therein until withdrawn as provided in Section 3.10.  Any losses incurred in the Group 2 Basis Risk Cap Account in respect of any such investments shall be charged against amounts on deposit in the Group 2 Basis Risk Cap Account (or the amount of such investments) immediately as realized.  The Trust Administrator shall not be liable for the amount of any loss incurred in respect of any investment or lack of investment of funds held in the Group 2 Basis Risk Cap Account and made in accordance with this Section 3.07.  The Group 2 Basis Risk Cap Account will not constitute an asset of the Trust Fund or any REMIC created hereunder.  The Class 2-C Certificates shall evidence ownership of the Group 2 Basis Risk Cap Account for federal tax purposes.  If no investment direction is received by the Trust Administrator from Holders of the Class 2-C Certificates, funds in the Group 2 Basis Risk Cap Account shall remain uninvested.

(n)

On the Closing Date, the Trust Administrator shall establish and maintain in its name, in trust for the benefit of the Supplemental Interest Trust on behalf of the Holders of the Group 2 Certificates and the Certificate Insurer, the Class 2-2A3 Basis Risk Cap Account, and shall deposit $1,000 therein upon receipt from or on behalf of the Depositor of such amount.  All funds on deposit in the Class 2-2A3 Basis Risk Cap Account shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation, other moneys held by the Trust Administrator pursuant to this Agreement.

On each Distribution Date, the Trust Administrator shall deposit into the Class 2-2A3 Basis Risk Cap Account all amounts received in respect of the Class 2-2A3 Basis Risk Cap Contract for the related Accrual Period. The Trust Administrator shall make withdrawals from the Class 2-2A3 Basis Risk Cap Account to make distributions pursuant to Section 4.11 exclusively (other than as expressly provided for in Section 3.10).

Funds in the Class 2-2A3 Basis Risk Cap Account may be invested in Permitted Investments at the direction of the Holders of the Class 2-C Certificates, which Permitted Investments shall mature not later than the Business Day immediately preceding the first Distribution Date that follows the date of such investment (except that if such Permitted Investment is an obligation of the institution that maintains the Class 2-2A3 Basis Risk Cap Account, then such Permitted Investment shall mature not later than such Distribution Date) and shall not be sold or disposed of prior to maturity.  All such Permitted Investments shall be made in the name of the Trust Administrator, for the benefit of the Supplemental Interest Trust, on behalf of the Holders of the Group 2 Certificates.  Any net investment earnings on such amounts shall be retained therein until withdrawn as provided in Section 3.10.  Any losses incurred in the Class 2-2A3 Basis Risk Cap Account in respect of any such investments shall be charged against amounts on deposit in the Class 2-2A3 Basis Risk Cap Account (or the amount of such investments) immediately as realized.  The Trust Administrator shall not be liable for the amount of any loss incurred in respect of any investment or lack of investment of funds held in the Class 2-2A3 Basis Risk Cap Account and made in accordance with this Section 3.07.  The Class 2-2A3 Basis Risk Cap Account will not constitute an asset of the Trust Fund or any REMIC created hereunder.  The Class 2-C Certificates shall evidence ownership of the Class 2-2A3 Basis Risk Cap Account for federal tax purposes.  If no investment direction is received by the Trust Administrator from Holders of the Class 2-C Certificates, funds in the Class 2-2A3 Basis Risk Cap Account shall remain uninvested.

(o)

On the Closing Date, the Trust Administrator shall establish and maintain in the name of the Trustee, in trust for the benefit of the Holders of the Class 1-1P Certificates, the Class 1-1P Reserve Fund and shall deposit $100 therein upon receipt from or on behalf of the Depositor of such amount.  The Class 1-1P Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation, other moneys held by the Trust Administrator pursuant to this Agreement.  Funds in the Class 1-1P Reserve Fund shall remain uninvested.

(p)

On the Closing Date, the Trust Administrator shall establish and maintain in the name of the Trustee, in trust for the benefit of the Holders of the Class 1-2P Certificates, the Class 1-2P Reserve Fund and shall deposit $100 therein upon receipt from or on behalf of the Depositor of such amount.  The Class 1-2P Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation, other moneys held by the Trust Administrator pursuant to this Agreement.  Funds in the Class 1-2P Reserve Fund shall remain uninvested.

(q)

On the Closing Date, the Trust Administrator shall establish and maintain in the name of the Trustee, in trust for the benefit of the Holders of the Class 2-1P Certificates, the Class 2-1P Reserve Fund and shall deposit $100 therein upon receipt from or on behalf of the Depositor of such amount.  The Class 2-1P Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation, other moneys held by the Trust Administrator pursuant to this Agreement.  Funds in the Class 2-1P Reserve Fund shall remain uninvested.

(r)

On the Closing Date, the Trust Administrator shall establish and maintain in the name of the Trustee, in trust for the benefit of the Holders of the Class 2-2P Certificates, the Class 2-2P Reserve Fund and shall deposit $100 therein upon receipt from or on behalf of the Depositor of such amount.  The Class 2-2P Reserve Fund shall be an Eligible Account, and funds on deposit therein shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation, other moneys held by the Trust Administrator pursuant to this Agreement.  Funds in the Class 2-2P Reserve Fund shall remain uninvested.

(s)

On the Closing Date, the Trust Administrator shall establish and maintain in its name, in trust for the benefit of the Supplemental Interest Trust on behalf of the Holders of the Group 2 Certificates and the Certificate Insurer, the Group 2 Credit Enhancement Reserve Fund, and shall deposit $1,000 therein upon receipt from or on behalf of the Depositor of such amount.  All funds on deposit in the Group 2 Credit Enhancement Reserve Fund shall be held separate and apart from, and shall not be commingled with, any other moneys, including without limitation, other moneys held by the Trust Administrator pursuant to this Agreement.

On each Distribution Date, the Trust Administrator shall deposit into the Group 2 Credit Enhancement Reserve Fund all amounts received in respect of the prepayment penalties on Loan Subgroup 2-P for the related Accrual Period. The Trust Administrator shall make withdrawals from the Group 2 Credit Enhancement Reserve Fund to make distributions pursuant to Section 4.14 exclusively (other than as expressly provided for in Section 3.10).

Funds in the Group 2 Credit Enhancement Reserve Fund may be invested in Permitted Investments at the direction of the Holders of the Class 2-C Certificates, which Permitted Investments shall mature not later than the Business Day immediately preceding the first Distribution Date that follows the date of such investment (except that if such Permitted Investment is an obligation of the institution that maintains the Group 2 Credit Enhancement Reserve Fund, then such Permitted Investment shall mature not later than such Distribution Date) and shall not be sold or disposed of prior to maturity.  All such Permitted Investments shall be made in the name of the Trust Administrator, for the benefit of the Supplemental Interest Trust, on behalf of the Holders of the Group 2  Certificates.  Any net investment earnings on such amounts shall be retained therein until withdrawn as provided in Section 3.10.  Any losses incurred in the Group 2 Credit Enhancement Reserve Fund in respect of any such investments shall be charged against amounts on deposit in the Group 2 Credit Enhancement Reserve Fund (or the amount of such investments) immediately as realized.  The Trust Administrator shall not be liable for the amount of any loss incurred in respect of any investment or lack of investment of funds held in the Group 2 Credit Enhancement Reserve Fund and made in accordance with this Section 3.07.  The Group 2 Credit Enhancement Reserve Fund will not constitute an asset of the Trust Fund or any REMIC created hereunder.  The Class 2-C Certificates shall evidence ownership of the Group 2 Credit Enhancement Reserve Fund for federal tax purposes.  If no investment direction is received by the Trust Administrator from Holders of the Class 2-C Certificates, funds in the Group 2 Credit Enhancement Reserve Fund shall remain uninvested.

Section 3.08.  Collection of Taxes, Assessments and Similar Items; Escrow Accounts.

To the extent required by the related Servicing Agreement and by the related Mortgage Note and not violative of current law, the Master Servicer shall require each Servicer to establish and maintain one or more accounts (each, an “Escrow Account”) and deposit and retain therein all collections from the Mortgagors (or Advances by such Servicer) for the payment of taxes, assessments, hazard insurance premiums or comparable items for the account of the Mortgagors.  Nothing herein shall require the Master Servicer to compel a Servicer to establish an Escrow Account in violation of applicable law.

Section 3.09.  Access to Certain Documentation and Information Regarding the Mortgage Loans.

The Master Servicer and the Custodian shall afford and the Master Servicer shall require the Servicers to afford the Depositor, the Trustee, the Certificate Insurer and the Trust Administrator and their respective agents or representatives reasonable access to all records and documentation regarding the Mortgage Loans and all accounts, insurance information and other matters relating to this Agreement or the Servicing Agreement, such access being afforded without charge, but only upon reasonable request and during normal business hours at the office designated by the Master Servicer, the applicable Servicer or the Custodian to the extent set forth in the applicable Servicing Agreement.

Upon reasonable advance notice in writing, the Master Servicer and the Custodian will provide or the Master Servicer shall require the Servicers, to the extent set forth in the applicable Servicing Agreement, to provide to each Certificateholder which is a savings and loan association, bank or insurance company certain reports and reasonable access to information and documentation regarding the Mortgage Loans sufficient to permit such Certificateholder to comply with applicable regulations of the OTS or other regulatory authorities with respect to investment in the Certificates; provided, that the Master Servicer, the applicable Servicer or the Custodian shall be entitled to be reimbursed by each such Certificateholder for actual expenses incurred by the Master Servicer, the applicable Servicer or the Custodian in providing such reports and access.

Section 3.10.  Permitted Withdrawals from the Accounts.

(a)

The Master Servicer may from time to time make withdrawals from the Collection Account for the following purposes:

(i)

to pay to the Servicers (to the extent not previously retained by them), the servicing compensation to which they are entitled pursuant to the applicable Servicing Agreements, and to pay to the Master Servicer, earnings on or investment income with respect to funds in or credited to the Collection Account;

(ii)

to reimburse each of the Servicers or the Master Servicer for unreimbursed Advances made by it, such right of reimbursement pursuant to this sub-clause (ii) being limited to amounts received on the Mortgage Loan(s) in respect of which any such Advance was made;

(iii)

to reimburse the Servicers or the Master Servicer for any Nonrecoverable Advance previously made;

(iv)

to reimburse the Servicers or the Master Servicer for Insured Expenses from the related Insurance Proceeds;

(v)

to reimburse the Servicers or the Master Servicer for (a) unreimbursed Servicing Advances, the Servicers’ or the Master Servicer’s right to reimbursement pursuant to this clause (a) with respect to any Mortgage Loan being limited to amounts received on such Mortgage Loan(s) which represent late recoveries of the payments for which such advances were made pursuant to Section 3.01 or Section 4.01 and (b) for unpaid Servicing Fees as provided in Section 3.15 hereof;

(vi)

to pay to the purchaser, with respect to each Mortgage Loan or property acquired in respect thereof that has been purchased pursuant to Section 2.02 or 2.03, all amounts received thereon after the date of such purchase;

(vii)

to reimburse the Transferor, the Master Servicer or the Depositor for expenses or indemnities incurred by any of them and reimbursable pursuant to Section 6.03 hereof;

(viii)

to withdraw any amount deposited in the Collection Account and not required to be deposited therein;

(ix)

on or prior to the Distribution Account Deposit Date, to (A) withdraw (i) an amount equal to the related Available Funds for such Distribution Date and (ii) any Recoveries received during the related Prepayment Period, and remit by wire transfer of immediately available funds such amounts to the Trust Administrator for deposit in the Distribution Account and (B) withdraw any Class P Prepayment Charges received and remit by wire transfer of immediately available funds such amounts to the Trust Administrator for deposit into the Distribution Account;

(x)

to reimburse the Master Servicer for any costs or expenses incurred by it and reimbursable pursuant to Section 3.02; and

(xi)

to clear and terminate the Collection Account upon termination of this Agreement pursuant to Section 10.01 hereof.

The Master Servicer shall keep and maintain separate accounting, on a Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any withdrawal from the Collection Account pursuant to such sub-clauses (i), (ii), (iv), (v) and (vi).  Prior to making any withdrawal from the Collection Account pursuant to sub-clause (iii), the Master Servicer shall deliver to the Trust Administrator an Officer’s Certificate of a Master Servicing Officer indicating the amount of any previous Advance determined by the Master Servicer to be a Nonrecoverable Advance and identifying the related Mortgage Loans(s), and their respective portions of such Nonrecoverable Advance.

(b)

The Trust Administrator shall withdraw funds from the Distribution Account for distributions to Certificateholders, in the manner specified in this Agreement (and withhold from the amounts so withdrawn, the amount of any taxes that it is authorized to withhold pursuant to the last paragraph of Section 9.11).  In addition, the Trust Administrator may from time to time make withdrawals from the Distribution Account for the following purposes:

(i)

to pay to the Trust Administrator earnings on or investment income, if any with respect to funds in or credited to the Distribution Account;

(ii)

to withdraw and return to the Master Servicer any amount deposited in the Distribution Account and not required to be deposited therein in accordance with Section 3.07(d);

(iii)

to withdraw any indemnity, expense or other reimbursement owed to it or the Trustee pursuant to this Agreement, including, without limitation, Section 3.05, Section 7.02, Section 8.05 and Section 9.05;

(iv)

[reserved]; and

(v)

to clear and terminate the Distribution Account upon termination of the Agreement pursuant to Section 10.01 hereof.

(c)

The Trust Administrator shall withdraw funds from the Group 1 Carryover Reserve Fund for distribution to the Group 1 Senior Certificates and the Group 1 Mezzanine Certificates in the manner specified in Section 4.12 (and to withhold from the amounts so withdrawn the amount of any taxes that it is authorized to retain pursuant to the last paragraph of Section 9.11).  In addition, the Trust Administrator may from time to time make withdrawals from the Group 1 Carryover Reserve Fund for the following purposes:

(i)

to withdraw any amount deposited in the Group 1 Carryover Reserve Fund and not required to be deposited therein;

(ii)

to pay the Depositor investment earnings

(iii)

to distribute any amounts remaining in the Group 1 Carryover Reserve Fund to the Depositor after the distribution of any Net Rate Carryover to the Group 1 Certificates on the Distribution Date in June 2007; and

(iv)

to clear and terminate the Group 1 Carryover Reserve Fund upon the termination of this Agreement pursuant to Section 10.01.

(d)

The Trust Administrator shall withdraw funds from the Group 2 Carryover Reserve Fund for distribution to the Group 2 Senior Certificates and the Group 2 Mezzanine Certificates in the manner specified in Section 4.13 (and to withhold from the amounts so withdrawn the amount of any taxes that it is authorized to retain pursuant to the last paragraph of Section 9.11).  In addition, the Trust Administrator may from time to time make withdrawals from the Group 2 Carryover Reserve Fund for the following purposes:

(i)

to withdraw any amount deposited in the Group 2 Carryover Reserve Fund and not required to be deposited therein;

(ii)

to pay the Depositor investment earnings

(iii)

to distribute any amounts remaining in the Group 2 Carryover Reserve Fund to the Depositor after the distribution of any Net Rate Carryover to the Group 2 Certificates on the Distribution Date in June 2007; and

(iv)

to clear and terminate the Group 2 Carryover Reserve Fund upon the termination of this Agreement pursuant to Section 10.01.

(e)

The Trust Administrator shall withdraw funds from the Group 1 Certificate Cap Account for distribution to the Group 1 Certificates and the Certificate Insurer in the manner specified in Section 4.07 (and shall withhold from the amounts so withdrawn the amount of any taxes that it is authorized to retain pursuant to the last paragraph of Section 9.11).  In addition, the Trust Administrator may from time to time make withdrawals from the Group 1 Certificate Cap Account for the following purposes:

(i)

to withdraw any amount deposited in the Group 1 Certificate Cap Account and not required to be deposited therein; and

(ii)

to clear and terminate the Group 1 Certificate Cap Account upon the earlier of (A) the Group 1 Certificate Cap Contract Termination Date and (B) the termination of this Agreement pursuant to Section 10.01.

(f)

The Trust Administrator shall withdraw funds from the Group 1 Basis Risk Cap Account for distribution to the Group 1 Certificates in the manner specified in Section 4.08 (and shall withhold from the amounts so withdrawn the amount of any taxes that it is authorized to retain pursuant to the last paragraph of Section 9.11).  In addition, the Trust Administrator may from time to time make withdrawals from the Group 1 Basis Risk Cap Account for the following purposes:

(i)

to withdraw any amount deposited in the Group 1 Basis Risk Cap Account and not required to be deposited therein; and

(ii)

to clear and terminate the Group 1 Basis Risk Cap Account upon the earlier of (A) the Group 1 Basis Risk Cap Contract Termination Date and (B) the termination of this Agreement pursuant to Section 10.01.

(g)

The Trust Administrator shall withdraw funds from the Group 2 Certificate Cap Account for distribution to the Group 2 Certificates and the Certificate Insurer in the manner specified in Section 4.09 (and shall withhold from the amounts so withdrawn the amount of any taxes that it is authorized to retain pursuant to the last paragraph of Section 9.11).  In addition, the Trust Administrator may from time to time make withdrawals from the Group 2 Certificate Cap Account for the following purposes:

(i)

to withdraw any amount deposited in the Group 2 Certificate Cap Account and not required to be deposited therein; and

(ii)

to clear and terminate the Group 2 Certificate Cap Account upon the earlier of (A) the Group 2 Certificate Cap Contract Termination Date and (B) the termination of this Agreement pursuant to Section 10.01.

(h)

The Trust Administrator shall withdraw funds from the Group 2 Basis Risk Cap Account for distribution to the Group 2 Certificates in the manner specified in Section 4.10 (and shall withhold from the amounts so withdrawn the amount of any taxes that it is authorized to retain pursuant to the last paragraph of Section 9.11).  In addition, the Trust Administrator may from time to time make withdrawals from the Group 2 Basis Risk Cap Account for the following purposes:

(i)

to withdraw any amount deposited in the Group 2 Basis Risk Cap Account and not required to be deposited therein; and

(ii)

to clear and terminate the Group 2 Basis Risk Cap Account upon the earlier of (A) the Group 2 Basis Risk Cap Contract Termination Date and (B) the termination of this Agreement pursuant to Section 10.01.

(i)

The Trust Administrator shall withdraw funds from the Class 2-2A3 Basis Risk Cap Account for distribution to the Group 2 Certificates and the Certificate Insurer in the manner specified in Section 4.11 (and shall withhold from the amounts so withdrawn the amount of any taxes that it is authorized to retain pursuant to the last paragraph of Section 9.11).  In addition, the Trust Administrator may from time to time make withdrawals from the Class 2-2A3 Basis Risk Cap Account for the following purposes:

(i)

to withdraw any amount deposited in the Class 2-2A3 Basis Risk Cap Account and not required to be deposited therein; and

(ii)

to clear and terminate the Class 2-2A3 Basis Risk Cap Account upon the earlier of (A) the Class 2-2A3 Basis Risk Cap Contract Termination Date and (B) the termination of this Agreement pursuant to Section 10.01.

(j)

The Trust Administrator shall withdraw funds from the Class 1-1P Reserve Fund for distribution to the Class 1-1P Certificates in the manner specified in Section 4.02(c) (and shall withhold from the amounts so withdrawn the amount of any taxes that it is authorized to retain pursuant to the last paragraph of Section 9.11).  In addition, the Trust Administrator may from time to time make withdrawals from the Class 1-1P Reserve Fund for the following purposes:

(i)

to withdraw any amount deposited in the Class 1-1P Reserve Fund and not required to be deposited therein; and

(ii)

to clear and terminate the Class 1-1P Reserve Fund upon the termination of this Agreement pursuant to Section 10.01.

(k)

The Trust Administrator shall withdraw funds from the Class 1-2P Reserve Fund for distribution to the Class 1-2P Certificates in the manner specified in Section 4.02(c) (and shall withhold from the amounts so withdrawn the amount of any taxes that it is authorized to retain pursuant to the last paragraph of Section 9.11).  In addition, the Trust Administrator may from time to time make withdrawals from the Class 1-2P Reserve Fund for the following purposes:

(i)

to withdraw any amount deposited in the Class 1-2P Reserve Fund and not required to be deposited therein; and

(ii)

to clear and terminate the Class 1-2P Reserve Fund upon the termination of this Agreement pursuant to Section 10.01.

(l)

The Trust Administrator shall withdraw funds from the Class 2-1P Reserve Fund for distribution to the Class 2-1P Certificates in the manner specified in Section 4.03(c) (and shall withhold from the amounts so withdrawn the amount of any taxes that it is authorized to retain pursuant to the last paragraph of Section 9.11).  In addition, the Trust Administrator may from time to time make withdrawals from the Class 2-1P Reserve Fund for the following purposes:

(i)

to withdraw any amount deposited in the Class 2-1P Reserve Fund and not required to be deposited therein; and

(ii)

to clear and terminate the Class 2-1P Reserve Fund upon the termination of this Agreement pursuant to Section 10.01.

(m)

The Trust Administrator shall withdraw funds from the Class 2-2P Reserve Fund for distribution to the Class 2-2P Certificates in the manner specified in Section 4.03(c) (and shall withhold from the amounts so withdrawn the amount of any taxes that it is authorized to retain pursuant to the last paragraph of Section 9.11).  In addition, the Trust Administrator may from time to time make withdrawals from the Class 2-2P Reserve Fund for the following purposes:

(i)

to withdraw any amount deposited in the Class 2-2P Reserve Fund and not required to be deposited therein; and

(ii)

to clear and terminate the Class 2-2P Reserve Fund upon the termination of this Agreement pursuant to Section 10.01.

(n)

The Trust Administrator shall withdraw funds from the Group 2 Credit Enhancement Reserve Fund for distribution to the Group 2 Certificates and the Certificate Insurer in the manner specified in Section 4.14 (and shall withhold from the amounts so withdrawn the amount of any taxes that it is authorized to retain pursuant to the last paragraph of Section 9.11).  In addition, the Trust Administrator may from time to time make withdrawals from the Group 2 Credit Enhancement Reserve Fund for the following purposes:

(i)

to withdraw any amount deposited in the Group 2 Credit Enhancement Reserve Fund and not required to be deposited therein; and

(ii)

to clear and terminate the Group 2 Credit Enhancement Reserve Fund upon the earlier of (A) the Group 2 Credit Enhancement Reserve Fund Termination Date and (B) the termination of this Agreement pursuant to Section 10.01.

Section 3.11.  Maintenance of Hazard Insurance.

(a)

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

(b)

Pursuant to Sections 3.07 and 3.10, any amounts collected by the Master Servicer, or by any Servicer, under any insurance policies (other than amounts to be applied to the restoration or repair of the property subject to the related Mortgage or released to the Mortgagor in accordance with the applicable Servicing Agreement) shall be deposited into the Collection Account, subject to withdrawal pursuant to Sections 3.07 and 3.10.  Any cost incurred by the Master Servicer or any Servicer in maintaining any such insurance if the Mortgagor defaults in its obligation to do so shall be added to the amount owing under the Mortgage Loan where the terms of the Mortgage Loan so permit; provided, however, that the addition of any such cost shall not be taken into account for purposes of calculating the distributions to be made to Certificateholders and shall be recoverable by the Master Servicer or such Servicer pursuant to Sections 3.07 and 3.10.

Section 3.12.  Presentment of Claims and Collection of Proceeds.

The Master Servicer shall (to the extent provided in the applicable Servicing Agreement) cause the related Servicer to prepare and present on behalf of the Trustee, the Certificateholders and the Certificate Insurer all claims under the Insurance Policies and take such actions (including the negotiation, settlement, compromise or enforcement of the insured’s claim) as shall be necessary to realize recovery under such policies.  Any proceeds disbursed to the Master Servicer (or disbursed to a Servicer and remitted to the Master Servicer) in respect of such policies, bonds or contracts shall be promptly deposited in the Collection Account upon receipt, except that any amounts realized that are to be applied to the repair or restoration of the related Mortgaged Property as a condition precedent to the presentation of claims on the related Mortgage Loan to the insurer under any applicable Insurance Policy need not be so deposited (or remitted).

Section 3.13.  Maintenance of the Primary Insurance Policies.

(a)

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

(b)

The Master Servicer agrees to present, or to cause each Servicer (to the extent required under the related Servicing Agreement) to present, on behalf of the Trustee, the Certificateholders and the Certificate Insurer, claims to the insurer under any Primary Insurance Policies and, in this regard, to take such reasonable action as shall be necessary to permit recovery under any Primary Insurance Policies respecting defaulted Mortgage Loans.  Pursuant to Sections 3.07 and 3.10, any amounts collected by the Master Servicer or any Servicer under any Primary Mortgage Insurance Policies shall be deposited in the Collection Account, subject to withdrawal pursuant to Sections 3.07 and 3.10.

Section 3.14.  Realization upon Defaulted Mortgage Loans.

The Master Servicer shall cause each Servicer (to the extent required under the related Servicing Agreement) to foreclose upon, repossess or otherwise comparably convert the ownership of Mortgaged Properties securing such of the Mortgage Loans as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments, all in accordance with the applicable Servicing Agreement.

Section 3.15.  REO Property.

(a)

In the event the Trust Fund acquires ownership of any REO Property in respect of any related Mortgage Loan, the deed or certificate of sale shall be issued to the Trustee, or to its nominee, on behalf of the related Certificateholders and the Certificate Insurer.  The Master Servicer shall, to the extent provided in the applicable Servicing Agreement, cause the applicable Servicer to sell any REO Property as expeditiously as possible and in accordance with the provisions of this Agreement and the related Servicing Agreement, as applicable.  Pursuant to its efforts to sell such REO Property, the Master Servicer shall cause the applicable Servicer to protect and conserve such REO Property in the manner and to the extent required by the applicable Servicing Agreement, subject to the REMIC Provisions.

(b)

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

(c)

The Master Servicer and the applicable Servicer, upon the final disposition of any REO Property, shall be entitled to reimbursement for any related unreimbursed Advances and other unreimbursed advances as well as any unpaid Servicing Fees from Liquidation Proceeds received in connection with the final disposition of such REO Property; provided, that any such unreimbursed Advances as well as any unpaid Servicing Fees may be reimbursed or paid, as the case may be, prior to final disposition, out of any net rental income or other net amounts derived from such REO Property.

(d)

The Liquidation Proceeds from the final disposition of the REO Property, net of any payment to the Master Servicer and the applicable Servicer as provided above shall be deposited in the Protected Account on or prior to the Determination Date in the month following receipt thereof and be remitted by wire transfer in immediately available funds to the Master Servicer for deposit into the Collection Account.

In the event that the Trust Fund acquires any Mortgaged Property as aforesaid or otherwise in connection with a default or imminent default on a Mortgage Loan, the Master Servicer shall enforce the obligation of the related Servicer to dispose of such Mortgaged Property prior to the close of the third calendar year after the year in which the Trust Fund acquires such Mortgaged Property unless the Servicer shall have applied for and received an extension of such period from the Internal Revenue Service, in which case the Trust Fund may continue to hold such Mortgaged Property for the period of such extension.  Notwithstanding any other provision of this Agreement, no Mortgaged Property acquired by the Trust Fund shall be rented (or allowed to continue to be rented) or otherwise used for the production of income by or on behalf of the Trust Fund in such a manner or pursuant to any terms that would (i) cause such Mortgaged Property to fail to qualify as “foreclosure property” within the meaning of Section 860G(a)(8) of the Code or (ii) subject any REMIC hereunder to the imposition of any federal, state or local income taxes on the income earned from such Mortgaged Property under Section 860G(c) of the Code or otherwise, unless the Master Servicer or related Servicer, as applicable, has agreed to indemnify and hold harmless the Trust Fund with respect to the imposition of any such taxes.

In the event of a default on a Mortgage Loan one or more of whose obligors is not a United States Person, as that term is defined in Section 7701(a)(30) of the Code, in connection with any foreclosure or acquisition of a deed-in-lieu of foreclosure (together, “foreclosure”) in respect of such Mortgage Loan, the Master Servicer will cause the applicable Servicer to comply with the provisions of Treasury Regulation Section 1.1445 2(d)(3) (or any successor provision thereto) necessary to assure that no withholding tax obligation arises with respect to the proceeds of such foreclosure except to the extent, if any, that proceeds of such foreclosure are required to be remitted to the obligors on such Mortgage Loan.

Section 3.16.  Due on Sale Clauses; Assumption Agreements.

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

Section 3.17.  Trustee to Cooperate; Release of Mortgage Files.

Upon (i) the payment in full of any Mortgage Loan, or (ii) the receipt by the Master Servicer of a notification that payment in full will be escrowed in a manner customary for such purposes or otherwise in connection with the servicing of any Mortgage Loan, the Master Servicer shall, upon receipt of notification from the related Servicer pursuant to the applicable Servicing Agreement, which notification shall state that such payment in full has been deposited in the Collection Account or has otherwise been escrowed in a manner customary for such purposes, instruct the Custodian to, and the Custodian shall release the related Mortgage File to the related Servicer.  Upon notification, the Trustee shall at the Custodian’s direction execute and deliver to the Custodian the request for reconveyance, deed of reconveyance or release or satisfaction of mortgage or such instrument releasing the lien of the Mortgage in each case provided by the Custodian, together with the Mortgage Note with written evidence of cancellation thereon.  Expenses incurred in connection with any instrument of satisfaction or deed of reconveyance shall be chargeable to the related Mortgagor.

If the Master Servicer or any related Servicer at any time seeks to initiate a foreclosure proceeding in respect of any Mortgaged Property as authorized by this Agreement or the Servicing Agreements, the Master Servicer or any related Servicer shall deliver or cause to be delivered to the Trustee, for signature, as appropriate, any court pleadings, requests for trustee’s sale or other documents necessary to effectuate such foreclosure or any legal action brought to obtain judgment against the Mortgagor on the Mortgage Note or the Mortgage or to obtain a deficiency judgment or to enforce any other remedies or rights provided by the Mortgage Note or the Mortgage or otherwise available at law or in equity.

Subject to this Section 3.17, the Trustee shall execute, at the written request of the Master Servicer, and furnish to the Master Servicer and any Servicer such documents as are necessary or appropriate to enable the Master Servicer or any Servicer to carry out their servicing and administrative duties hereunder.  The Trustee shall not be liable for the actions of the Master Servicer or any Servicers under any such documents.

Section 3.18.  Documents, Records and Funds in Possession of the Master Servicer and the Custodian to Be Held for the Trustee.

Notwithstanding any other provisions of this Agreement, the Master Servicer shall forward to the Custodian with an instruction to, and the Custodian shall, place within the Mortgage File and the Master Servicer shall cause each Servicer to transmit to the Custodian as required by this Agreement and the related Servicing Agreement all documents and instruments in respect of a Mortgage Loan coming into the possession of the Master Servicer or related Servicer from time to time and shall account fully to the Trustee for any funds received by the Master Servicer or related Servicer or which otherwise are collected by the Master Servicer or related Servicer as Liquidation Proceeds or Insurance Proceeds in respect of any Mortgage Loan.  All Mortgage Files and funds collected or held by, or under the control of, the Master Servicer, the related Servicer or the Custodian in respect of any Mortgage Loans, whether from the collection of principal and interest payments or from Liquidation Proceeds, including but not limited to, any funds on deposit in the Collection Account or any Protected Account, shall be held by the Master Servicer, the related Servicer or the Custodian for and on behalf of the Trustee and shall be and remain the sole and exclusive property of the Trust, subject to the applicable provisions of this Agreement and the related Servicing Agreement.  Each of the Master Servicer and the Custodian also agrees that it shall not create, incur or subject any Mortgage File or any funds that are deposited in the Collection Account, Distribution Account or any Escrow Account, or any funds that otherwise are or may become due or payable to the Trustee for the benefit of the Certificateholders and the Certificate Insurer, to any claim, lien, security interest, judgment, levy, writ of attachment or other encumbrance, or assert by legal action or otherwise any claim or right of setoff against any Mortgage File or any funds collected on, or in connection with, a Mortgage Loan, except, however, that the Master Servicer shall be entitled to set off against and deduct from any such funds any amounts that are properly due and payable to the Master Servicer under this Agreement.

Section 3.19.  Master Servicing Compensation.

As compensation for its activities hereunder, the Master Servicer shall be entitled to retain or withdraw from the Collection Account an amount equal to the Master Servicing Compensation.

Section 3.20.  Access to Certain Documentation.

The Master Servicer and the Custodian shall provide and the Master Servicer shall cause each Servicer to provide in accordance with the related Servicing Agreement to the OTS and the FDIC and to comparable regulatory authorities supervising Holders of Mezzanine Certificates and the examiners and supervisory agents of the OTS, the FDIC and such other authorities, access to the documentation regarding the Mortgage Loans required by applicable regulations of the OTS and the FDIC.  Such access shall be afforded without charge, but only upon reasonable and prior written request and during normal business hours at the offices designated by the Master Servicer, the Custodian and the related Servicer.  Nothing in this Section shall limit the obligation of the Master Servicer, the Custodian and the related Servicer to observe any applicable law prohibiting disclosure of information regarding the Mortgagors and the failure of the Master Servicer, the Custodian or the related Servicer to provide access as provided in this Section as a result of such obligation shall not constitute a breach of this Section.  In fulfilling such requests, the Master Servicer and the Custodian shall not be responsible to determine the sufficiency of such information.

Section 3.21.  Annual Statement as to Compliance.  

(a)

The Master Servicer and the Trust Administrator shall deliver or otherwise make available (and the Master Servicer and Trust Administrator shall cause any Servicing Function Participant engaged by it to deliver) to the Depositor and the Trust Administrator on or before March 10 (with a 5 calendar day cure period but in no event later than March 15) of each year, commencing in March 2008, an Officer’s Certificate (an “Annual Statement of Compliance”) stating, as to the signer thereof, that (A) a review of such party’s activities during the preceding calendar year or portion thereof and of such party’s performance under this Agreement or such other applicable Agreement in the case of a Servicing Function Participant, has been made under such officer’s supervision and (B) to the best of such officer’s knowledge, based on such review, such party has fulfilled all its obligations under this Agreement, in all material respects throughout such year or portion thereof, or, if there has been a failure to fulfill any such obligation in any material respect, specifying each such failure known to such officer and the nature and status thereof.  Promptly after receipt of each such Annual Statement of Compliance, the Depositor shall review such Annual Statement of Compliance and, if applicable, consult with each such party, as applicable, as to the nature of any failure by such party identified therein, in the fulfillment of any of such party’s obligations hereunder.

(b)

The Master Servicer shall enforce any obligation of each Servicer, to the extent set forth in the related Servicing Agreement, to deliver to the Master Servicer an Annual Statement of Compliance within the time frame set forth in, and in such form and substance as may be required pursuant to, the related Servicing Agreement.  The Master Servicer shall include all annual statements of compliance received by it from each servicer with its own annual statement of compliance to be submitted to the Trust Administrator pursuant to this Section.

(c)

In the event the Master Servicer, the Trust Administrator or any Servicing Function Participant engaged by any such party is terminated or resigns pursuant to the terms of this Agreement, or any applicable agreement in the case of a Servicing Function Participant, as the case may be, such party shall provide an Officer’s Certificate pursuant to this Section 3.21 or to such applicable agreement, as the case may be, notwithstanding any such termination, assignment or resignation.

Section 3.22.  Report on Assessment of Compliance and Attestation.  

(a)

(i)

By March 10 (with a 5 calendar day cure period but in no event later than March 15) of each year, commencing in March 2008, the Master Servicer, the Trust Administrator and the Custodian, each at its own expense, shall furnish or otherwise make available, and each such party shall cause any Servicing Function Participant engaged by it to furnish, each at its own expense, to the Trust Administrator and the Depositor, a report on an assessment of compliance with the Relevant Servicing Criteria in the form of Exhibit Q hereto, (an “Assessment of Compliance”) that contains (A) a statement by such party of its responsibility for assessing compliance with the Relevant Servicing Criteria, (B) a statement that such party used the Servicing Criteria to assess compliance with the Relevant Servicing Criteria, (C) such party’s assessment of compliance with the Relevant Servicing Criteria as of and for the fiscal year covered by the Form 10-K required to be filed pursuant to Section 3.22, including, if there has been any material instance of noncompliance with the Relevant Servicing Criteria, a discussion of each such failure and the nature and status thereof, and (D) a statement that a registered public accounting firm has issued an attestation report on such party’s assessment of compliance with the Relevant Servicing Criteria as of and for such period.

(ii)

No later than the end of each fiscal year for the Trust Fund for which a Form 10-K is required to be filed, the Master Servicer and the Custodian shall each forward to the Trust Administrator the name of each Servicing Function Participant engaged by it and what Relevant Servicing Criteria will be addressed in the Assessment of Compliance prepared by such Servicing Function Participant (provided,  that the Master Servicer need not provide such information to the Trust Administrator so long as the Master Servicer and the Trust Administrator are the same Person).  When each of the Master Servicer, the Custodian and the Trust Administrator (or any Servicing Function Participant engaged by either of them) submit their Assessments of Compliance to the Trust Administrator, each such party will also at such time include the Assessment of Compliance and Accountant’s Attestation pursuant to Section 3.22(b)(i) of each Servicing Function Participant engaged by it.

(iii)

Promptly after receipt of each Assessment of Compliance, (A) the Depositor shall review each such report and, if applicable, consult with the Master Servicer, the Trust Administrator, the Custodian and any Servicing Function Participant engaged by any such party as to the nature of any material instance of noncompliance with the Relevant Servicing Criteria by such party, and (B) the Trust Administrator shall confirm that the Assessments of Compliance, taken as a whole, address all of the Servicing Criteria and taken individually address the Relevant Servicing Criteria for each party as set forth on Exhibit X and on any similar exhibit set forth in each Servicing Agreement in respect of each Servicer and notify the Depositor of any exceptions.

(iv)

The Master Servicer shall enforce any obligation of each Servicer, to the extent set forth in the related Servicing Agreement, to deliver to the Master Servicer an annual Assessment of Compliance within the time frame set forth in, and in such form and substance as may be required pursuant to, the related Servicing Agreement.  The Master Servicer shall include all Assessments of Compliance received by it from the Servicers with its own Assessment of Compliance to be submitted to the Trust Administrator pursuant to this Section.

In the event the Master Servicer, the Trust Administrator, the Custodian or any Servicing Function Participant engaged by any such party is terminated, assigns its rights and obligations under, or resigns pursuant to, the terms of this Agreement, or any other applicable agreement, as the case may be, such party shall provide a report on assessment of compliance pursuant to this Section 3.22, or to such other applicable agreement, notwithstanding any such termination, assignment or resignation.

(b)

(i)

By March 10 (with a 5 calendar day cure period but in no event later than March 15) of each year, commencing in March 2008, the Master Servicer, the Trust Administrator and the Custodian, each at its own expense, shall cause, and each such party shall cause any Servicing Function Participant engaged by it to cause, each at its own expense, a registered public accounting firm (which may also render other services to the Master Servicer, the Custodian, the Trust Administrator, or such Servicing Function Participants, as the case may be) that is a member of the American Institute of Certified Public Accountants to furnish an attestation report to the Trust Administrator and the Depositor (an “Accountant’s Attestation”), to the effect that (A) it has obtained a representation regarding certain matters from the management of such party, which includes an assertion that such party has complied with the Relevant Servicing Criteria, and (B) on the basis of an examination conducted by such firm in accordance with standards for attestation engagements issued or adopted by the PCAOB, it is expressing an opinion as to whether such party’s compliance with the Relevant Servicing Criteria was fairly stated in all material respects, or it cannot express an overall opinion regarding such party’s assessment of compliance with the Relevant Servicing Criteria.  In the event that an overall opinion cannot be expressed, such registered public accounting firm shall state in such report why it was unable to express such an opinion.  Such report must be available for general use and not contain restricted use language.

(ii)

Promptly after receipt of each such Assessment of Compliance and Accountant’s Attestation the Trust Administrator shall confirm that each assessment submitted pursuant to Section 3.22(a)(i) is coupled with an attestation that appears on its face to meet the requirements of this Section and notify the Depositor of any exceptions.

(iii)

The Master Servicer shall enforce any obligation of each Servicer, to the extent set forth in the related Servicing Agreement, to deliver to the Master Servicer an attestation within the time frame set forth in, and in such form and substance as may be required pursuant to, the related Servicing Agreement.  The Master Servicer shall include each such attestation furnished to it by the Servicers with its own attestation to be submitted to the Trust Administrator pursuant to this Section.

In the event the Master Servicer, the Trust Administrator, the Custodian, any Servicer or any Servicing Function Participant engaged by any such party, is terminated, assigns its rights and duties under, or resigns pursuant to the terms of, this Agreement, or any applicable Custodial Agreement, Servicing Agreement or sub-servicing agreement, as the case may be, such party shall cause a registered public accounting firm to provide an attestation pursuant to this Section 3.22, or such other applicable agreement, notwithstanding any such termination, assignment or resignation.

(c)

(i)

The Master Servicer agrees to indemnify and hold harmless each of the Depositor and each Person, if any, who “controls” the Depositor within the meaning of the Securities Act and its respective officers, directors and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and expenses that such Person may sustain arising out of third party claims based on (A) the failure of the Master Servicer (or any Servicing Function Participant engaged by it) to deliver or cause to be delivered when required any Assessment of Compliance or Accountant’s Attestation required pursuant to Section 3.22(a)(i) or 3.22(b)(i), as applicable, or (B) any material misstatement or omission contained in any Assessment of Compliance provided pursuant to Section 3.22(a)(i).

(ii)

The Trust Administrator agrees to indemnify and hold harmless the Depositor and each Person, if any, who “controls” the Depositor within the meaning of the Securities Act and its officers, directors and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and expenses that such Person may sustain arising out of third party claims based on (i) the failure of the Trust Administrator (or any Servicing Function Participant engaged by it) to deliver when required any Assessment of Compliance or Accountant’s Attestation required pursuant to Section 3.22(a)(i) or 3.22(b)(i), or (ii) any material misstatement or omission contained in any Assessment of Compliance provided pursuant to Section 3.22(a)(i).

(iii)

The Custodian agrees to indemnify and hold harmless the Depositor and each Person, if any, who “controls” the Depositor within the meaning of the Securities Act and their respective officers, directors and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and expenses that such Person may sustain arising out of third party claims based on (i) the failure of the Custodian (or any Servicing Function Participant engaged by it) to deliver or cause to be delivered when required any Assessment of Compliance or Accountant’s Attestation required pursuant to Section 3.22(a)(i) or 3.22(b)(i) or (ii) any material misstatement or omission contained in any Assessment of Compliance provided pursuant to Section 3.22(a)(i).

(d)

Each of the parties hereto acknowledges and agrees that the purpose of this Section 3.22 is to facilitate compliance by the Transferor and the Depositor with the provisions of Regulation AB, as such may be amended or clarified from time to time.  Therefore, each of the parties agrees that the parties’ obligations hereunder will be supplemented and modified as necessary to be consistent with any such amendments, interpretive advice or guidance, convention or consensus among active participants in the asset-backed securities markets, advice of counsel, or otherwise in respect of the requirements of Regulation AB and the parties shall comply, to the extent practicable from a timing and information systems perspective (and to the extent the requesting party will pay any increased cost of the Trustee resulting from such request provided that such request results in extraordinary expenses), with requests made by the Transferor or the Depositor for delivery of additional or different information as the Transferor or the Depositor may determine in good faith is necessary to comply with the provisions of Regulation AB.

Section 3.23.  Errors and Omissions Insurance; Fidelity Bonds.

The Master Servicer shall for so long as it acts as Master Servicer under this Agreement, obtain and maintain in force (a) a policy or policies of insurance covering errors and omissions in the performance of its obligations as Master Servicer hereunder and (b) a fidelity bond in respect of its officers, employees and agents.  Each such policy or policies shall be in such form and such amount generally acceptable for entities serving as master servicer.  In the event that any such policy or bond ceases to be in effect, the Master Servicer shall obtain a comparable replacement policy or bond from an insurer or issuer, meeting the requirements set forth above as of the date of such replacement.

Section 3.24.  [Reserved].

Section 3.25.  Credit Risk Management Services and Reports; Reliability of Data.

(a)

The Depositor hereby appoints Wells Fargo Bank, N.A. as Credit Risk Manager. The Credit Risk Manager shall perform certain services related to servicer review and oversight, monitoring and reporting of various Mortgage Loans and each Servicer’s performance, preparation of Mortgage Loan and REO Property payment, delinquency and loss information, reconciliation of Prepayment Charge collections by such Servicer and monitoring information related to insurance claims and foreclosures.  No later than the end of each calendar month, the Credit Risk Manager shall prepare and make available certain reports containing various performance, payment, delinquency and loss information and information related to insurance claims and foreclosures. Such reports shall be made available through the facilities of Wells Fargo’s corporate trust services website, currently located at www.CTSLink.com, and shall be in a format and contain such content as is mutually agreed upon by the Depositor and the Credit Risk Manager. None of the Trustee, the Trust Administrator or the Master Servicer shall have any obligation to review such reports or otherwise monitor or supervise the activities of the Credit Risk Manager.

(b)

Each of the Depositor, the Servicers, the Trustee, the Trust Administrator, the Master Servicer and the Custodian acknowledge and agree that the reports that are compiled and prepared by the Credit Risk Manager are based on information provided to the Credit Risk Manager by the Servicers, the Master Servicer and from various unaffiliated third parties, including other Persons involved in the servicing and administration of the related Mortgage Loans or related REO Properties. The Credit Risk Manager makes no representation or warranty as to the accuracy or completeness of any such information or data, and the Credit Risk Manager shall not be responsible for any misstatements, omissions, errors, or inaccuracies in any such reports or information resulting from any misstatements, omissions, errors, or inaccuracies in any information or data provided by third parties.

Section 3.26.  Limitation Upon Liability of Credit Risk Manager.

Neither the Credit Risk Manager nor any of the directors, officers, employees, or agents of the Credit Risk Manager shall be under any liability to the Servicers, the Master Servicer, the Trust Administrator, the Trustee, the Certificateholders or the Depositor for any action taken or for refraining from the taking of any action in good faith pursuant to this Agreement in reliance upon information provided by the Servicers or the Master Servicer or for errors in judgment; provided, however, that this provision shall not protect the Credit Risk Manager against any breach of representation or warranty made herein, failure to perform its obligations hereunder, or any liability which would otherwise be imposed by reason of willful misfeasance, bad faith, or negligence of the Credit Risk Manager in the performance of its duties hereunder or by reason of a breach of its obligations and duties hereunder. The Credit Risk Manager and any director, officer, employee or agent of the Credit Risk Manager may rely in good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising hereunder. Subject to the terms of this Agreement, the Credit Risk Manager shall be under no obligation to appear in, prosecute, or defend any legal action which, in its opinion, may involve it in any expense or liability; provided, however, that the Credit Risk Manager may with the consent of the Depositor, the Trustee, the Trust Administrator, the Master Servicer, the Custodian, and the Servicers, and at the  expense of the respective consenting party, undertake any such action as it may deem necessary or desirable in respect to this Agreement and the rights, duties, and the interests of the parties hereto.

Section 3.27.  Resignation or Removal of Credit Risk Manager.

The Credit Risk Manager may resign upon ninety (90) days’ prior written notice to the Trustee and the Depositor.  If the Credit Risk Manager is no longer able to perform its duties hereunder, the Credit Risk Manager may be terminated by the Depositor at the direction of Certificateholders evidencing not less than 66 2/3% of the Voting Rights.  The Depositor may, at its option, cause the appointment of a successor Credit Risk Manager.  Upon any termination of the Credit Risk Manager or the appointment of a successor Credit Risk Manager, the Depositor shall give written notice thereof to the related Servicer, the Master Servicer, the Trust Administrator, the Trustee, each Rating Agency and the Credit Risk Manager.  Notwithstanding the foregoing, the termination of the Credit Risk Manager pursuant to this Section 3.27 shall not become effective until the appointment of a successor Credit Risk Manager.

Section 3.28.  Group 1 Certificate Cap Contract.

The Group 1 Certificate Cap Contract will not be an asset of the Trust Fund nor of any REMIC.  The Supplemental Interest Trust Trustee shall cause to be deposited any amounts received from time to time with respect to the Group 1 Certificate Cap Contract into the Group 1 Certificate Cap Account.

The Supplemental Interest Trust Trustee shall prepare and deliver any notices required to be delivered under the Group 1 Certificate Cap Contract. 

The Supplemental Interest Trust Trustee shall terminate the Group 1 Certificate Cap Contract upon the occurrence of certain events of default or termination events to the extent specified in or pursuant to the related confirmation.  Upon any such termination, the Cap Provider will be obligated to pay the Supplemental Interest Trust Trustee an amount in respect of such termination.  Any amounts received by the Supplemental Interest Trust Trustee in respect of such termination shall be deposited and held in the Group 1 Certificate Cap Account to pay Unpaid Realized Loss Amounts and Net Rate Carryover Amounts on the Classes of Group 1 Certificates as provided in Section 4.07 hereof on the Distribution Dates following such termination to and including the Group 1 Certificate Cap Contract Termination Date.  On the Group 1 Certificate Cap Contract Termination Date, after all other distributions to be made on such date have been made pursuant to the terms of this Agreement, if any such amounts received by the Supplemental Interest Trust Trustee with respect thereto in respect of such termination remain in the Group 1 Certificate Cap Account, such amounts shall be distributed by the Supplemental Interest Trust Trustee to UBS Securities LLC.

Section 3.29.  Group 1 Basis Risk Cap Contract.

The Group 1 Basis Risk Cap Contract will not be an asset of the Trust Fund nor of any REMIC.  The Supplemental Interest Trust Trustee shall cause to be deposited any amounts received from time to time with respect to the Group 1 Basis Risk Cap Contract into the Group 1 Basis Risk Cap Account.

The Supplemental Interest Trust Trustee shall prepare and deliver any notices required to be delivered under the Group 1 Basis Risk Cap Contract. 

The Supplemental Interest Trust Trustee shall terminate the Group 1 Basis Risk Cap Contract upon the occurrence of certain events of default or termination events to the extent specified in or pursuant to the related confirmation.  Upon any such termination, the Cap Provider will be obligated to pay the Supplemental Interest Trust Trustee an amount in respect of such termination.  Any amounts received by the Supplemental Interest Trust Trustee in respect of such termination shall be deposited and held in the Group 1 Basis Risk Cap Account to pay Unpaid Realized Loss Amounts and Net Rate Carryover Amounts on the Classes of Group 1 Certificates as provided in Section 4.08 hereof on the Distribution Dates following such termination to and including the Group 1 Basis Risk Cap Contract Termination Date.  On the Group 1 Basis Risk Cap Contract Termination Date, after all other distributions to be made on such date have been made pursuant to the terms of this Agreement, if any such amounts received by the Supplemental Interest Trust Trustee with respect thereto in respect of such termination remain in the Group 1 Basis Risk Cap Account, such amounts shall be distributed by the Supplemental Interest Trust Trustee to UBS Securities LLC.

Section 3.30.  Group 2 Certificate Cap Contract.

The Group 2 Certificate Cap Contract will not be an asset of the Trust Fund nor of any REMIC.  The Supplemental Interest Trust Trustee shall cause to be deposited any amounts received from time to time with respect to the Group 2 Certificate Cap Contract into the Group 2 Certificate Cap Account.

The Supplemental Interest Trust Trustee shall prepare and deliver any notices required to be delivered under the Group 2 Certificate Cap Contract. 

The Supplemental Interest Trust Trustee shall terminate the Group 2 Certificate Cap Contract upon the occurrence of certain events of default or termination events to the extent specified in or pursuant to the related confirmation.  Upon any such termination, the Cap Provider will be obligated to pay the Supplemental Interest Trust Trustee an amount in respect of such termination.  Any amounts received by the Supplemental Interest Trust Trustee in respect of such termination shall be deposited and held in the Group 2 Certificate Cap Account to pay Unpaid Realized Loss Amounts and Net Rate Carryover Amounts on the Classes of Group 2 Certificates as provided in Section 4.09 hereof on the Distribution Dates following such termination to and including the Group 2 Certificate Cap Contract Termination Date.  On the Group 2 Certificate Cap Contract Termination Date, after all other distributions to be made on such date have been made pursuant to the terms of this Agreement, if any such amounts received by the Supplemental Interest Trust Trustee with respect thereto in respect of such termination remain in the Group 2 Certificate Cap Account, such amounts shall be distributed by the Supplemental Interest Trust Trustee to UBS Securities LLC.

Section 3.31.  Group 2 Basis Risk Cap Contract.

The Group 2 Basis Risk Cap Contract will not be an asset of the Trust Fund nor of any REMIC.  The Supplemental Interest Trust Trustee shall cause to be deposited any amounts received from time to time with respect to the Group 2 Basis Risk Cap Contract into the Group 2 Basis Risk Cap Account.

The Supplemental Interest Trust Trustee shall prepare and deliver any notices required to be delivered under the Group 2 Basis Risk Cap Contract. 

The Supplemental Interest Trust Trustee shall terminate the Group 2 Basis Risk Cap Contract upon the occurrence of certain events of default or termination events to the extent specified in or pursuant to the related confirmation.  Upon any such termination, the Cap Provider will be obligated to pay the Supplemental Interest Trust Trustee an amount in respect of such termination.  Any amounts received by the Supplemental Interest Trust Trustee in respect of such termination shall be deposited and held in the Group 2 Basis Risk Cap Account to pay Unpaid Realized Loss Amounts and Net Rate Carryover Amounts on the Classes of Group 2 Certificates as provided in Section 4.10 hereof on the Distribution Dates following such termination to and including the Group 2 Basis Risk Cap Contract Termination Date.  On the Group 2 Basis Risk Cap Contract Termination Date, after all other distributions to be made on such date have been made pursuant to the terms of this Agreement, if any such amounts received by the Supplemental Interest Trust Trustee with respect thereto in respect of such termination remain in the Group 2 Basis Risk Cap Account, such amounts shall be distributed by the Supplemental Interest Trust Trustee to UBS Securities LLC.

Section 3.32.  Class 2-2A3 Basis Risk Cap Contract.

The Class 2-2A3 Basis Risk Cap Contract will not be an asset of the Trust Fund nor of any REMIC.  The Supplemental Interest Trust Trustee shall cause to be deposited any amounts received from time to time with respect to the Class 2-2A3 Basis Risk Cap Contract into the Class 2-2A3 Basis Risk Cap Account.

The Supplemental Interest Trust Trustee shall prepare and deliver any notices required to be delivered under the Class 2-2A3 Basis Risk Cap Contract. 

The Supplemental Interest Trust Trustee shall terminate the Class 2-2A3 Basis Risk Cap Contract upon the occurrence of certain events of default or termination events to the extent specified in or pursuant to the related confirmation.  Upon any such termination, the Cap Provider will be obligated to pay the Supplemental Interest Trust Trustee an amount in respect of such termination.  Any amounts received by the Supplemental Interest Trust Trustee in respect of such termination shall be deposited and held in the Class 2-2A3 Basis Risk Cap Account to pay Unpaid Realized Loss Amounts and Net Rate Carryover Amounts on the Classes of Subgroup 2-2 Certificates as provided in Section 4.11 hereof on the Distribution Dates following such termination to and including the Class 2-2A3 Basis Risk Cap Contract Termination Date.  On the Class 2-2A3 Basis Risk Cap Contract Termination Date, after all other distributions to be made on such date have been made pursuant to the terms of this Agreement, if any such amounts received by the Supplemental Interest Trust Trustee with respect thereto in respect of such termination remain in the Class 2-2A3 Basis Risk Cap Account, such amounts shall be distributed by the Supplemental Interest Trust Trustee to UBS Securities LLC.

Section 3.33.  The Guaranty.

The Cap Provider’s obligations are guaranteed by a third party under a guaranty relating to the Cap Agreements (such guaranty the “Guaranty” and such third party the “Guarantor”).  To the extent that the Cap Provider fails to make any payment by the close of business on the day it is required to make payment under the terms of any of the Cap Agreements, the Trust Administrator (in its capacity as Supplemental Interest Trust Trustee) shall, immediately following actual notice of the Cap Provider’s failure to pay, demand by written notice (which may be provided in electronic format) that the Guarantor make any and all payments then required to be made by the Guarantor pursuant to such Guaranty.  Upon receipt of such notice, the Guarantor will make the required payment under the Cap Agreements no later than the close of business one business day prior to the related Distribution Date.

In no event shall the Trust Administrator (in its capacity as Supplemental Interest Trust Trustee) be liable for any failure or delay in the performance by the Cap Provider or the Guarantor of its obligations hereunder or pursuant to the any of the Group 1 Certificate Cap Contract, the Group 1 Basis Risk Cap Contract, the Group 2 Certificate Cap Contract, the Group 2 Basis Risk Cap Contract, or the Class 2-2A3 Basis Risk Cap Contract and the related Guaranty, nor for any special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits or costs associated with any legal proceedings) in connection with  enforcing the terms of the Cap Agreements or this Agreement. 

ARTICLE IV

DISTRIBUTIONS AND SERVICING ADVANCES

Section 4.01.  Advances.  

The Master Servicer shall deposit in the Distribution Account not later than the Distribution Account Deposit Date immediately preceding the related Distribution Date an Advance in an amount equal to the difference between (x) with respect to each Scheduled Payment due on a Mortgage Loan that is delinquent (other than as a result of a Relief Act Reduction) and for which the related Servicer was required to make an Advance pursuant to the related Servicing Agreement, the amount of such Advance, and (y) amounts deposited in the Collection Account to be used for any Advance with respect to such Mortgage Loan, except to the extent the Master Servicer determines any such Advance to be a Nonrecoverable Advance.  Subject to the foregoing, the Master Servicer shall continue to make such Advances for so long as the related Servicer is required to do so under the related Servicing Agreement.  If applicable, on the Distribution Account Deposit Date, the Master Servicer shall deliver an Officer’s Certificate to the Trust Administrator stating that the Master Servicer elects not to make an Advance in a stated amount and detailing the reason(s) it deems the Advance to be a Nonrecoverable Advance.  Any amounts deposited by the Master Servicer pursuant to this Section 4.01 shall be net of the Servicing Fee for the related Mortgage Loans.

Section 4.02.  Priorities of Distributions on the Group 1 Certificates.  

(a)

On each Distribution Date, the Trust Administrator shall withdraw the Interest Funds for Loan Group 1, (to the extent on deposit in the Distribution Account) from the Distribution Account and, pursuant to written instruction received from the Master Servicer as set forth in Section 4.04(a), upon which it may conclusively rely, apply such funds, first to distributions in respect of the Subsidiary REMIC Regular Interests, the Middle REMIC 1 Regular Interests and the Middle REMIC 2 Regular Interests, as provided in the Preliminary Statement, and then to distributions on the Group 1 Certificates and to the Certificate Insurer in the following order and priority and, in each case, to the extent of such Interest Funds for Loan Group 1:

(1)

first, concurrently, as follows:

(A)

from the Interest Funds for Loan Subgroup 1-1, sequentially, as follows:

(a)

first, to the Class 1-AIO Certificates, up to the product of (i) the Current Interest and the Interest Carry Forward Amount for such Class and such Distribution Date and (ii) a fraction, the numerator of which is equal to the aggregate Stated Principal Balance of the Subgroup 1-1 Loans, and the denominator of which is equal to the aggregate Stated Principal Balance of the Group 1 Loans as of the Due Date occurring in the month preceding the month of that Distribution Date (after giving effect to principal prepayments in the Prepayment Period related to that prior Due Date); and

(b)

second, concurrently, pro rata, as follows:

(i)

to the classes of Subgroup 1-1 Certificates, pro rata, up to the Current Interest and the Interest Carry Forward Amount for each such Class and such Distribution Date; and

(ii)

to the Certificate Insurer, up to the Subgroup 1-1 Premium Distribution Amount, if any, for such Distribution Date;

(B) 

from the Interest Funds for Loan Subgroup 1-2, sequentially, as follows:

(a) 

first, to the Class 1-AIO Certificates, up to the product of (i) the Current Interest and the Interest Carry Forward Amount for such Class and such Distribution Date and (ii) a fraction, the numerator of which is equal to the aggregate Stated Principal Balance of the Subgroup 1-2 Loans, and the denominator of which is equal to the aggregate Stated Principal Balance of the Group 1 Loans as of the Due Date occurring in the month preceding the month of that Distribution Date (after giving effect to principal prepayments in the Prepayment Period related to that prior Due Date); and

(b)

second, concurrently, pro rata, as follows:

(i)

to the classes of Subgroup 1-2 Certificates, pro rata, up to the Current Interest and the Interest Carry Forward Amount for each such Class and such Distribution Date; and

(ii)

to the Certificate Insurer, up to the Subgroup 1-2 Premium Distribution Amount, if any, for such Distribution Date;

(2) 

second, from the remaining Interest Funds for Loan Group 1, sequentially, as follows:

(A)

first, to the Class 1-AIO Certificates up to the Current Interest and the Interest Carry Forward Amount for such Class and such Distribution Date; and

(B)

second, concurrently, pro rata, as follows:

(a)

to the classes of Subgroup 1-1 Certificates and Subgroup 1-2 Certificates, pro rata, up to the Current Interest and the Interest Carry Forward Amount for each such Class and such Distribution Date; and

(b)

to the Certificate Insurer, up to the sum of the Group 1 Premium Distribution Amount and the Group 1 Certificate Insurer Reimbursement Amount, if any, for such Distribution Date, to the extent remaining unpaid; and

(3)

third, from the remaining Interest Funds for Loan Group 1, sequentially, to the Class 1-A3, Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, and Class 1-M5 Certificates, in that order, up to the Current Interest for each such Class and such Distribution Date. 

(b)

On each Distribution Date, the Trust Administrator, following any distributions pursuant to Section 4.02(a), shall make distributions, pursuant to written instruction received from the Master Servicer as set forth in Section 4.04(a), upon which it may conclusively rely, on the Group 1 Certificates and to the Certificate Insurer in the following order and priority and, in each case, to the extent of the Principal Funds for Loan Group 1:

(A) for each Distribution Date prior to the Group 1 Stepdown Date or on which a Group 1 Trigger Event is in effect in the following order of priority, in an amount up to the Group 1 Principal Distribution Amount:

(1)

first, concurrently, to the following Classes of Certificates, the related Subgroup Principal Distribution Amount:

(a)

in an amount up to the Subgroup 1-1 Principal Distribution Amount for such Distribution Date, sequentially:

(i)

first, to the Subgroup 1-1 Certificates, pro rata based on Class Principal Balance, until their respective Class Principal Balances are reduced to zero;

(ii)

second, to the Certificate Insurer, up to the Subgroup 1-1 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid for such Distribution Date; and 

(iii)

third, to the Subgroup 1-2 Certificates, pro rata based on Class Principal Balance (after any payments to such Certificates from the Subgroup 1-2 Principal Distribution Amount) until their respective Class Principal Balances are reduced to zero; and

(b)

in an amount up to the Subgroup 1-2 Principal Distribution Amount for such Distribution Date, sequentially:

(i)

first, to the Subgroup 1-2 Certificates, pro rata based on Class Principal Balance, until their respective Class Principal Balances are reduced to zero

(ii)

second, to the Certificate Insurer, up to the Subgroup 1-2 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid for such Distribution Date; and 

(iii)

third, to the Subgroup 1-1 Certificates, pro rata based on Class Principal Balance (after any payments to such Certificates from the Subgroup 1-1 Principal Distribution Amount) until their respective Class Principal Balances are reduced to zero;

(2)

second, to the Certificate Insurer up to the Group 1 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid for such Distribution Date; and 

(3)

third, sequentially, to the Class 1-A3, Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, and Class 1-M5 Certificates, in that order, until their respective Class Principal Balances are reduced to zero; and

(B)

on each Distribution Date on or after the Group 1 Stepdown Date so long as a Group 1 Trigger Event is not in effect, in the following order of priority, in an amount up to the Group 1 Principal Distribution Amount:

(1)

first, in an amount up to the Group 1 Senior Principal Distribution Amount for that Distribution Date, concurrently, to the following Classes of Certificates, the related Subgroup Senior Principal Distribution Amount:

(a)

in an amount up to the Subgroup 1-1 Senior Principal Distribution Amount for such Distribution Date, sequentially:

(i)

first, to the Subgroup 1-1 Certificates, pro rata based on Class Principal Balance, until their respective Class Principal Balances are reduced to zero;

(ii)

second, to the Certificate Insurer, up to the Subgroup 1-1 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid for such Distribution Date; and 

(iii)

third, to the Subgroup 1-2 Certificates, pro rata based on Class Principal Balance (after any payments to such Certificates from the Subgroup 1-2 Senior Principal Distribution Amount) until their respective Class Principal Balances are reduced to zero; and

(b)

in an amount up to the Subgroup 1-2 Senior Principal Distribution Amount for such Distribution Date, sequentially:

(i)

first, to the Subgroup 1-2 Certificates, pro rata based on Class Principal Balance, until their respective Class Principal Balances are reduced to zero; and

(ii)

second, to the Certificate Insurer, up to the Subgroup 1-2 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid for such Distribution Date; and 

(iii)

third, to the Subgroup 1-1 Certificates, pro rata based on Class Principal Balance (after any payments to such Certificates from the Subgroup 1-1 Senior Principal Distribution Amount) until their respective Class Principal Balances are reduced to zero;

(2)

second, to the Certificate Insurer, pro rata, in an amount up to the Group 1 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid for such Distribution Date; and

(3)

third, sequentially, to the Class 1-A3, Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, and Class 1-M5 Certificates, in that order, in each case in an amount up to the related Group 1 Mezzanine Principal Distribution Amount, until their respective Class Principal Balances are reduced to zero. 

(c)

On each Distribution Date, the Trust Administrator, following any distributions pursuant to Sections 4.02(a) and 4.02(b), shall make distributions, pursuant to written instruction received from the Master Servicer as set forth in Section 4.04(a), upon which it may conclusively rely, on the Group 1 Certificates and to the Certificate Insurer in the following order and priority and, in each case, up to the Group 1 Net Monthly Excess Cashflow for such Distribution Date:

(1)

first, to the Class or Classes of Group 1 Certificates then entitled to receive distributions of principal pursuant to Section 4.02(b)(A) or Section 4.02(b)(B) above, as applicable, in an amount up to any Group 1 Overcollateralization Maintenance Amount (as included in the Group 1 Principal Distribution Amount) for such Distribution Date, in the order of priority set forth in Section 4.02(b)(A) or Section 4.02(b)(B) above, as applicable;

(2)

second, sequentially, to the Class 1-A3, Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, and Class 1-M5 Certificates, in that order, the Interest Carry Forward Amount for each such Class and such Distribution Date;

(3)

third, concurrently, to the Group 1 Senior Certificates (other than the Class 1-AIO Certificates), pro rata based on the aggregate Unpaid Realized Loss Amounts with respect to the Subgroup 1-1 or Subgroup 1-2 Certificates, as applicable: 

(a)

with respect to the Subgroup 1-1 Certificates, sequentially, (i) first, to the Class 1-1A1 Certificates, in an amount up to the amount of Unpaid Realized Loss Amount for such Class of Certificates, (ii) second, to the Class 1-1A2 Certificates, in an amount up to the amount of Unpaid Realized Loss Amount for such Class of Certificates to the extent not covered by the Certificate Insurance Policy, and (iii) third, to the Certificate Insurer, in an amount up to the Subgroup 1-1 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid for such Distribution Date;

(b)

with respect to the Subgroup 1-2 Certificates, sequentially, (i) first, to the Class 1-2A1 Certificates, in an amount up to the amount of Unpaid Realized Loss Amount for such Class of Certificates, (ii) second, to the Class 1-2A2 Certificates, in an amount up to the amount of Unpaid Realized Loss Amount for such Class of Certificates to the extent not covered by the Certificate Insurance Policy, and (iii) third, to the Certificate Insurer, in an amount up to the Subgroup 1-2 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid for such Distribution Date;

(4)

fourth, sequentially, to the Class 1-A3, Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, and Class 1-M5 Certificates, in that order, in an amount up to the Unpaid Realized Loss Amount for each such Class;

(5)

fifth, to the Class 1-AIO Certificates, in an amount up to the Net Rate Carryover for such Class of Certificates;

(6)

sixth,  to the Group 1 Senior Certificates (other than the Class 1-AIO Certificates), pro rata based on the Net Rate Carryover amount with respect to each such Class of Certificates, as applicable, in an amount up to the Net Rate Carryover for each such Class of Certificates, as applicable;

(7)

seventh, sequentially, to the Class 1-A3, Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, and Class 1-M5 Certificates, in that order, in an amount up to the Net Rate Carryover for each such Class; 

(8)

eighth, to the Class 1-C Certificates; and

(9)

ninth, any remaining amounts to the Class 1-R-X Certificates to the extent attributable to the Class 1-C, Class 1-1P or Class 1-2P Certificates, and to the Class 1-R Certificates to the extent attributable to any other REMIC created hereby;

provided that (A) if such Distribution Date follows the Prepayment Period during which occurs the latest date on which a prepayment charge may be required to be paid in respect of any Subgroup 1-1 Loans or if such Distribution Date is the final Distribution Date, the Trust Administrator shall withdraw any amounts on deposit in the Class 1-1P Reserve Fund and distribute such amounts to the Holders of the Class 1-1P Certificates, pro rata according to Class Principal Balance, in reduction of their respective Class Principal Balances, until their respective Class Principal Balances are reduced to zero; (B) if such Distribution Date follows the Prepayment Period during which occurs the latest date on which a prepayment charge may be required to be paid in respect of any Subgroup 1-2 Loans or if such Distribution Date is the final Distribution Date, the Trust Administrator shall withdraw any amounts on deposit in the Class 1-2P Reserve Fund and distribute such amounts to the Holders of the Class 1-2P Certificates, pro rata according to Class Principal Balance, in reduction of their respective Class Principal Balances, until their respective Class Principal Balances are reduced to zero and (C) any distributions pursuant to this Section 4.02(c) will be made prior to any distributions pursuant to Sections 4.07, 4.08 and 4.12.

(d)

Application of Class P Prepayment Charges.  On each Distribution Date prior to the date on which the Class Principal Balance of the Class 1-1P Certificates has been reduced to zero, the Trust Administrator shall withdraw from the Distribution Account and distribute to the Class 1-1P Certificates any Class P Prepayment Charges related to the Subgroup 1-1 Loans.

On each Distribution Date prior to the date on which the Class Principal Balance of the Class 1-2P Certificates has been reduced to zero, the Trust Administrator shall withdraw from the Distribution Account and distribute to the Class 1-2P Certificates any Class P Prepayment Charges related to the Subgroup 1-2 Loans. 

(e)

Application of Applied Realized Loss Amounts.  On each Distribution Date, the Trust Administrator shall allocate any Group 1 Applied Realized Loss Amount, first,  to reduce the Class Principal Balances of the Class 1-M5, Class 1-M4, Class 1-M3, Class 1-M2, Class 1-M1 and Class 1-A3 Certificates, sequentially, in that order, in each case until their respective Class Principal Balances are reduced to zero and second, concurrently, pro rata, to the Subgroup 1-1 Certificates and Subgroup 1-2 Certificates: (a) to reduce the Class Principal Balances of the Class 1-1A2 and Class 1-1A1 Certificates, in that order, until their respective Class Principal Balances are reduced to zero and (b) to reduce the Class Principal Balances of the Class 1-2A2 and Class 1-2A1 Certificates, in that order, until their respective Class Principal Balances are reduced to zero.

(f)

Application of Subsequent Recoveries.  On each Distribution Date, the Trust Administrator shall allocate the amount of the Subsequent Recoveries with respect to Group 1 Loans, if any, to increase the Class Principal Balance of the Classes of Group 1 Certificates to which Group 1 Applied Realized Loss Amounts have been previously allocated, first, pro rata based on the Group 1 Applied Realized Loss Amounts previously allocated the Subgroup 1-1 Certificates and Subgroup 1-2 Certificates: (a) sequentially, to the Class 1-1A1 and Class 1-1A2 Certificates (or, with respect to the Class 1-1A2 Certificates, to the extent that Group 1 Applied Realized Loss Amounts have been covered by payments under the Certificate Insurance Policy, to the Certificate Insurer), in that order, in each case by not more than the amount of the Unpaid Realized Loss Amount for each such Class and (b) sequentially, to the Class 1-2A1 and Class 1-2A2 Certificates (or, with respect to the Class 1-2A2 Certificates, to the extent that Group 1 Applied Realized Loss Amounts have been covered by payments under the Certificate Insurance Policy, to the Certificate Insurer), in that order, in each case by not more than the amount of the Unpaid Realized Loss Amount for each such Class, and second, sequentially, to the Class 1-A3, Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, Class 1-M5 Certificates, in that order, in each case by not more than the amount of the Unpaid Realized Loss Amount of such Class.

Holders of Certificates to which any Subsequent Recoveries have been allocated shall not be entitled to any payment in respect of Current Interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs.

Section 4.03.  Priorities of Distributions on the Group 2 Certificates.

(a)

  On each Distribution Date, the Trust Administrator shall withdraw the Interest Funds for Loan Group 2, (to the extent on deposit in the Distribution Account) from the Distribution Account and, pursuant to written instruction received from the Master Servicer as set forth in Section 4.04(a), upon which it may conclusively rely, apply such funds, first to distributions in respect of the Subsidiary REMIC Regular Interests, the Middle REMIC 1 Regular Interests and the Middle REMIC 2 Regular Interests, as provided in the Preliminary Statement, and then to distributions on the Group 2 Certificates and to the Certificate Insurer in the following order and priority and, in each case, to the extent of such Interest Funds for Loan Group 2:

(1)

first, concurrently, as follows:

(A)

from the Interest Funds for Loan Subgroup 2-1, sequentially, as follows:

(a)

first, to the Class 2-AIO Certificates, up to the product of (i) the Current Interest and the Interest Carry Forward Amount for such Class and such Distribution Date and (ii) a fraction, the numerator of which is equal to the aggregate Stated Principal Balance of the Subgroup 2-1 Loans, and the denominator of which is equal to the aggregate Stated Principal Balance of the Group 2 Loans as of the Due Date occurring in the month preceding the month of that Distribution Date (after giving effect to principal prepayments in the Prepayment Period related to that prior Due Date); and

(b)

second, concurrently, pro rata, as follows:

(i)

to the classes of Subgroup 2-1 Certificates, pro rata, up to the Current Interest and the Interest Carry Forward Amount for each such Class and such Distribution Date; and

(ii)

to the Certificate Insurer, up to the Subgroup 2-1 Premium Distribution Amount, if any, for such Distribution Date;

(B) 

from the Interest Funds for Loan Subgroup 2-2, sequentially, as follows:

(a) 

first, to the Class 2-AIO Certificates, up to the product of (i) the Current Interest and the Interest Carry Forward Amount for each such Class and such Distribution Date and (ii) a fraction, the numerator of which is equal to the aggregate Stated Principal Balance of the Subgroup 2-2 Loans, and the denominator of which is equal to the aggregate Stated Principal Balance of the Group 2 Loans as of the Due Date occurring in the month preceding the month of that Distribution Date (after giving effect to principal prepayments in the Prepayment Period related to that prior Due Date); and

(b)

second, concurrently, pro rata, as follows:

(i)

to the classes of Subgroup 2-2 Certificates, pro rata, up to the Current Interest and the Interest Carry Forward Amount for each such Class and such Distribution Date; and

(ii)

to the Certificate Insurer, up to the Subgroup 2-2 Premium Distribution Amount, if any, for such Distribution Date;

(2) 

second, from the remaining Interest Funds for Loan Group 2, sequentially, as follows:

(A)

first, to the Class 2-AIO Certificates up to the Current Interest and the Interest Carry Forward Amount for such Class and such Distribution Date; and

(B)

second, concurrently, pro rata, as follows:

(a)

to the classes of Subgroup 2-1 Certificates and Subgroup 2-2 Certificates, pro rata, up to the Current Interest and the Interest Carry Forward Amount for each such Class and such Distribution Date; and

(b)

to the Certificate Insurer, up to the sum of the Group 2 Premium Distribution Amount and the Group 2 Certificate Insurer Reimbursement Amount, if any, for such Distribution Date, to the extent remaining unpaid; and

(3)

third, from the remaining Interest Funds for Loan Group 2, sequentially, to the Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class 2-M5, Class 2-M6, Class 2-M7, and Class 2-M8 Certificates, in that order, up to the Current Interest for each such Class and such Distribution Date;

(b)

On each Distribution Date, the Trust Administrator, following any distributions pursuant to Section 4.03(a), shall make distributions, pursuant to written instruction received from the Master Servicer as set forth in Section 4.04(a), upon which it may conclusively rely, on the Group 2 Certificates and to the Certificate Insurer in the following order and priority and, in each case, to the extent of the Principal Funds for Loan Group 2:

(A) for each Distribution Date prior to the Group 2 Stepdown Date or on which a Group 2 Trigger Event is in effect in the following order of priority, in an amount up to the Group 2 Principal Distribution Amount:

(1)

first, concurrently, to the following Classes of Certificates, the related Subgroup Principal Distribution Amount:

(a)

in an amount up to the Subgroup 2-1 Principal Distribution Amount for such Distribution Date, sequentially:

(i)

first, to the Subgroup 2-1 Certificates, pro rata based on Class Principal Balance, until their respective Class Principal Balances are reduced to zero;

(ii)

second, to the Certificate Insurer, up to the Subgroup 2-1 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid for such Distribution Date; and 

(iii)

third, to the Subgroup 2-2 Certificates (after any payments to such Certificates from the Subgroup 2-2 Principal Distribution Amount), concurrently, (pro rata based on, with respect to clause (x), the aggregate Class Principal Balance of the Class 2-2A1, Class 2-2A2, Class 2-2A3, Class 2-2A4, and Class 2-2A5 Certificates, and with respect to clause (y), the Class Principal Balance of the Class 2-2A6 Certificates):

(x) 

sequentially: 

(1) 

first, to the Class 2-2A1 Certificates, until their Class Principal Balance is reduced to zero;

(2) 

second, to the Class 2-2A2 Certificates, until their Class Principal Balance is reduced to zero;

(3) 

third, concurrently, to the Class 2-2A3 and Class 2-2A4 Certificates, pro rata by Class Principal Balance, until their respective Class Principal Balances are reduced to zero; and

(4) 

fourth, to the Class 2-2A5 Certificates, until their Class Principal Balance is reduced to zero;

(y) 

to the Class 2-2A6 Certificates, until their Class Principal Balance is reduced to zero; and

(b)

in an amount up to the Subgroup 2-2 Principal Distribution Amount for such Distribution Date, sequentially:

(i)

first, concurrently, (pro rata based on, with respect to clause (x), the aggregate Class Principal Balance of the Class 2-2A1, Class 2-2A2, Class 2-2A3, Class 2-2A4, and Class 2-2A5 Certificates, and with respect to clause (y), the Class Principal Balance of the Class 2-2A6 Certificates): 

(x) 

sequentially: 

(1) 

first, to the Class 2-2A1 Certificates, until their Class Principal Balance is reduced to zero;

(2) 

second, to the Class 2-2A2 Certificates, until their Class Principal Balance is reduced to zero;

(3) 

third, concurrently, to the Class 2-2A3 and Class 2-2A4 Certificates, pro rata by Class Principal Balance, until their respective Class Principal Balances are reduced to zero; and

(4) 

fourth, to the Class 2-2A5 Certificates, until their Class Principal Balance is reduced to zero;

(y) 

to the Class 2-2A6 Certificates, until their Class Principal Balance is reduced to zero;

(ii)

second, to the Certificate Insurer, up to the Subgroup 2-2 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid for such Distribution Date; and 

 (iii)

third, to the Subgroup 2-1 Certificates, pro rata based on Class Principal Balance (after any payments to such Certificates from the Subgroup 2-1 Principal Distribution Amount) until their respective Class Principal Balances are reduced to zero;

 (2)

second, to the Certificate Insurer up to the Group 2 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid for such Distribution Date; and

(3)

third, sequentially, to the Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class 2-M5, Class 2-M6, Class 2-M7, and Class 2-M8 Certificates, in that order, until their respective Class Principal Balances are reduced to zero; and

 (B)

on each Distribution Date on or after the Group 2 Stepdown Date so long as a Group 2 Trigger Event is not in effect, in the following order of priority, in an amount up to the Group 2 Principal Distribution Amount:

(1)

first, in an amount up to the Group 2 Senior Principal Distribution Amount for that Distribution Date, concurrently, to the following Classes of Certificates, the related Subgroup Senior Principal Distribution Amount:

(a)

in an amount up to the Subgroup 2-1 Senior Principal Distribution Amount for such Distribution Date, sequentially:

(i)

first, to the Subgroup 2-1 Certificates, pro rata based on Class Principal Balance, until their respective Class Principal Balances are reduced to zero;

(ii)

second, to the Certificate Insurer, up to the Group 2 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid for such Distribution Date; and 

(iii)

third, to the Subgroup 2-2 Certificates (after any payments to such Certificates from the Subgroup 2-2 Senior Principal Distribution Amount), concurrently, (pro rata based on, with respect to clause (x), the aggregate Class Principal Balance of the Class 2-2A1, Class 2-2A2, Class 2-2A3, Class 2-2A4, and Class 2-2A5 Certificates, and with respect to clause (y), the Class Principal Balance of the Class 2-2A6 Certificates):

(x) 

sequentially: 

(1) 

first, to the Class 2-2A1 Certificates, until their Class Principal Balance is reduced to zero;

(2) 

second, to the Class 2-2A2 Certificates, until their Class Principal Balance is reduced to zero;

(3) 

third, concurrently, to the Class 2-2A3 and Class 2-2A4 Certificates, pro rata by Class Principal Balance, until their respective Class Principal Balances are reduced to zero; and

(4) 

fourth, to the Class 2-2A5 Certificates, until their Class Principal Balance is reduced to zero;

(y) 

to the Class 2-2A6 Certificates, until their Class Principal Balance is reduced to zero; and

 (b)

in an amount up to the Subgroup 2-2 Senior Principal Distribution Amount for such Distribution Date, sequentially:

(i)

first, to the Subgroup 2-2 Certificates, concurrently, (pro rata based on, with respect to clause (x), the aggregate Class Principal Balance of the Class 2-2A1, Class 2-2A2, Class 2-2A3, Class 2-2A4, and Class 2-2A5 Certificates, and with respect to clause (y), the Class Principal Balance of the Class 2-2A6 Certificates):

(x) 

sequentially: 

(1) 

first, to the Class 2-2A1 Certificates, until their Class Principal Balance is reduced to zero;

(2) 

second, to the Class 2-2A2 Certificates, until their Class Principal Balance is reduced to zero;

(3) 

third, concurrently, to the Class 2-2A3 and Class 2-2A4 Certificates, pro rata by Class Principal Balance, until their respective Class Principal Balances are reduced to zero; and

(4) 

fourth, to the Class 2-2A5 Certificates, until their Class Principal Balance is reduced to zero;

(y) 

to the Class 2-2A6 Certificates, until their Class Principal Balance is reduced to zero; 

(ii)

second, to the Certificate Insurer, up to the Subgroup 2-2 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid for such Distribution Date; and 

 (iii)

third, to the Subgroup 2-1 Certificates, pro rata based on Class Principal Balance (after any payments to such Certificates from the Subgroup 2-1 Senior Principal Distribution Amount) until their respective Class Principal Balances are reduced to zero;

(2)

second, to the Certificate Insurer, pro rata, in an amount up to the Group 2 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid for such Distribution Date; and

(3)

third, sequentially, to the Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class 2-M5, Class 2-M6, Class 2-M7, and Class 2-M8 Certificates, in that order, in each case in an amount up to the related Group 2 Mezzanine Principal Distribution Amount, until their respective Class Principal Balances are reduced to zero.

(c)

On each Distribution Date, the Trust Administrator, following any distributions pursuant to Sections 4.03(a) and 4.03(b), shall make distributions, pursuant to written instruction received from the Master Servicer as set forth in Section 4.04(a), upon which it may conclusively rely, on the Group 2 Certificates and to the Certificate Insurer in the following order and priority and, in each case, up to the Group 2 Net Monthly Excess Cashflow for such Distribution Date:

(1)

first, to the Class or Classes of Group 2 Certificates then entitled to receive distributions of principal pursuant to Section 4.03(b)(A) or Section 4.03(b)(B) above, as applicable, in an amount up to any Group 2 Overcollateralization Maintenance Amount (as included in the Group 2 Principal Distribution Amount) for such Distribution Date, in the order of priority set forth in Section 4.03(b)(A) or Section 4.03(b)(B) above, as applicable;

(2)

second, sequentially, to the Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class 2-M5, Class 2-M6, Class 2-M7, and Class 2-M8 Certificates, in that order, the Interest Carry Forward Amount for each such Class and such Distribution Date;

(3)

third, concurrently, to the Group 2 Senior Certificates (other than the Class 2-AIO Certificates), pro rata based on the aggregate Unpaid Realized Loss Amounts with respect to the Subgroup 2-1 Certificates or Subgroup 2-2 Certificates, as applicable: 

(a)

with respect to the Subgroup 2-1 Certificates, sequentially, (i) first, to the Class 2-1A1 Certificates, in an amount up to the amount of Unpaid Realized Loss Amount for such Class of Certificates, (ii) second, to the Class 2-1A2 Certificates, in an amount up to the amount of Unpaid Realized Loss Amount for such Class of Certificates to the extent not covered by the Certificate Insurance Policy, and (iii) third, to the Certificate Insurer, in an amount up to the Subgroup 2-1 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid for such Distribution Date;

(b)

with respect to the Subgroup 2-2 Certificates, sequentially, (i) first, pro rata based on the Unpaid Realized Loss Amount with respect to each such Class of Certificates, to the Class 2-2A1, Class 2-2A2, Class 2-2A3 (to the extent not covered by the Certificate Insurance Policy), Class 2-2A4, and Class 2-2A5 Certificates, in an amount up to the amount of Unpaid Realized Loss Amount for each such Class of Certificates, (ii) second, to the Class 2-2A6 Certificates, in an amount up to the amount of Unpaid Realized Loss Amount for such Class of Certificates to the extent not covered by the Certificate Insurance Policy, and (iii) third, to the Certificate Insurer, in an amount up to the Subgroup 2-2 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid for such Distribution Date;

(4)

fourth, sequentially, to the Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class 2-M5, Class 2-M6, Class 2-M7, and Class 2-M8 Certificates, in that order, in an amount up to the Unpaid Realized Loss Amount for each such Class;

(5)

fifth, to the Class 2-AIO Certificates, in an amount up to the Net Rate Carryover for such Class of Certificates;

(6)

sixth, to the Group 2 Senior Certificates (other than the Class 2-AIO Certificates), pro rata based on the Net Rate Carryover amount with respect to each such Class of Certificates, as applicable, in an amount up to the Net Rate Carryover for each such Class of Certificates, as applicable;

(7)

seventh, sequentially, to the Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class 2-M5, Class 2-M6, Class 2-M7, and Class 2-M8 Certificates, in that order, in an amount up to the Net Rate Carryover for each such Class; 

(8)

eighth, to the Class 2-C Certificates; and

(9)

ninth, any remaining amounts to the Class 2-R-X Certificates to the extent attributable to the Class 2-C, Class 2-1P or Class 2-2P Certificates, and to the Class 2-R Certificates to the extent attributable to any other REMIC created hereby;

provided that (A) if such Distribution Date follows the Prepayment Period during which occurs the latest date on which a prepayment charge may be required to be paid in respect of any Subgroup 2-1 Loans or if such Distribution Date is the final Distribution Date, the Trust Administrator shall withdraw any amounts on deposit in the Class 2-1P Reserve Fund and distribute such amounts to the Holders of the Class 2-1P Certificates, pro rata according to Class Principal Balance, in reduction of their respective Class Principal Balances, until their respective Class Principal Balances are reduced to zero; (B) if such Distribution Date follows the Prepayment Period during which occurs the latest date on which a prepayment charge may be required to be paid in respect of any Subgroup 2-2 Loans or if such Distribution Date is the final Distribution Date, the Trust Administrator shall withdraw any amounts on deposit in the Class 2-2P Reserve Fund and distribute such amounts to the Holders of the Class 2-2P Certificates, pro rata according to Class Principal Balance, in reduction of their respective Class Principal Balances, until their respective Class Principal Balances are reduced to zero and (C) any distributions pursuant to this Section 4.03(c) will be made prior to any distributions pursuant to Sections 4.09, 4.10, 4.11, 4.13 and 4.14.

(d)

Application of Class P Prepayment Charges.  On each Distribution Date prior to the date on which the Class Principal Balance of the Class 2-1P Certificates has been reduced to zero, so long as a Group 2 Reserve Trigger Event is not in effect, the Trust Administrator shall withdraw from the Distribution Account and distribute to the Class 2-1P Certificates any Class P Prepayment Charges related to the Subgroup 2-1 Loans.

On each Distribution Date on which a Group 2 Reserve Trigger Event is in effect and prior to the date on which the Class Principal Balance of the Class 2-1P Certificates has been reduced to zero, the Trust Administrator shall withdraw from the Distribution Account and (a) distribute to the Class 2-1P Certificates 30% of any Class P Prepayment Charges related to the Subgroup 2-1 Loans and (b) deposit 70% of any Class P Prepayment Charges related to the Subgroup 2-1 Loans in the Group 2 Credit Enhancement Reserve Fund.

On each Distribution Date prior to the date on which the Class Principal Balance of the Class 2-2P Certificates has been reduced to zero, so long as a Group 2 Reserve Trigger Event is not in effect, the Trust Administrator shall withdraw from the Distribution Account and distribute to the Class 2-2P Certificates any Class P Prepayment Charges related to the Subgroup 2-2 Loans. 

On each Distribution Date on which a Group 2 Reserve Trigger Event is in effect and prior to the date on which the Class Principal Balance of the Class 2-2P Certificates has been reduced to zero, the Trust Administrator shall withdraw from the Distribution Account and (a) distribute to the Class 2-2P Certificates 30% of any Class P Prepayment Charges related to the Subgroup 2-2 Loans and (b) deposit 70% of any Class P Prepayment Charges related to the Subgroup 2-2 Loans in the Group 2 Credit Enhancement Reserve Fund.

(e)

Application of Applied Realized Loss Amounts.  On each Distribution Date, the Trust Administrator shall allocate any Group 2 Applied Realized Loss Amount, first,  to reduce the Class Principal Balances of the Class 2-M6, Class 2-M5, Class 2-M4, Class 2-M3, Class 2-M2 and Class 2-M1 Certificates, sequentially, in that order, in each case until their respective Class Principal Balances are reduced to zero and second, concurrently, pro rata, to the Subgroup 2-1 Certificates and Subgroup 2-2 Certificates: (a) to reduce the Class Principal Balances of the Class 2-1A2 and Class 2-1A1 Certificates, in that order, until their respective Class Principal Balances are reduced to zero and (b) first, to reduce the Class Principal Balances of the Class 2-A-6 Certificates, until its Class Principal Balance is reduced to zero; and second, concurrently, to reduce the Class Principal Balances of the Class 2-2A1, Class 2-2A2, Class 2-2A3, Class 2-2A4 and Class 2-2A5 Certificates, pro rata based on Class Principal Balance, until their respective Class Principal Balances are reduced to zero.

(f)

Application of Subsequent Recoveries.  On each Distribution Date, the Trust Administrator shall allocate the amount of the Subsequent Recoveries with respect to Group 2 Loans, if any, to increase the Class Principal Balance of the Classes of Group 2 Certificates to which Group 2 Applied Realized Loss Amounts have been previously allocated, (A) first, pro rata based on the Group 2 Applied Realized Loss Amounts previously allocated the Subgroup 2-1 Certificates and Subgroup 2-2 Certificates: (a) sequentially, to the Class 2-1A1 and Class 2-1A2 Certificates (or, with respect to the Class 2-1A2 Certificates, to the extent that Group 2 Applied Realized Loss Amounts have been covered by payments under the Certificate Insurance Policy, to the Certificate Insurer), in that order, in each case by not more than the amount of the Unpaid Realized Loss Amount for each such Class and (b) (x) first, concurrently, pro rata based on the Group 2 Applied Realized Loss Amounts that have been previously allocated to each such Class of Certificates, to the Class 2-2A1, Class 2-2A2, Class 2-2A3, Class 2-2A4 and Class 2-2A5 Certificates (or, with respect to the Class 2-2A3 Certificates, to the extent that Group 2 Applied Realized Loss Amounts have been covered by payments under the Certificate Insurance Policy, to the Certificate Insurer), in each case by not more than the amount of the Unpaid Realized Loss Amount for each such Class of Certificates and (y) second, to the Class 2-2A6 Certificates (or, to the extent that Group 2 Applied Realized Loss Amounts have been covered by payments under the Certificate Insurance Policy, to the Certificate Insurer), by not more than the amount of the Unpaid Realized Loss Amount for such Class of Certificates, and (B) second, sequentially, to the Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class 2-M5 and Class 2-M6, Class 2-M7 and Class 2-M8 Certificates, in that order, in each case by not more than the amount of the Unpaid Realized Loss Amount of such Class.

Holders of Certificates to which any Subsequent Recoveries have been allocated shall not be entitled to any payment in respect of Current Interest on the amount of such increases for any Accrual Period preceding the Distribution Date on which such increase occurs.

Section 4.04.  Distribution Date Statements to Certificateholders.  

(a)

Not later than two Business Days prior to each Distribution Date, the Master Servicer shall prepare and make available to the Trust Administrator and not later than each Distribution Date, the Trust Administrator shall make available to each Certificateholder, the Certificate Insurer, the Depositor, the Rating Agencies, the NIMS Insurer, the Credit Risk Manager, the Trustee and any other interested parties a statement based in part on information provided by each Servicer setting forth the following information with respect to the related distribution (in the case of information furnished pursuant to (i) and (ii) below, the amounts shall be expressed as a dollar amount per one thousand:

(i)

the amount of the distribution made on such Distribution Date to the Holders of the Certificates of each Class allocable to principal;

(ii)

the amount of the distribution made on such Distribution Date to the Holders of the Certificates of each Class allocable to interest and how such distributions are calculated;

(iii)

the aggregate Servicing Fee (and any other compensation payable to the Servicer) paid during the related Due Period;

(iv)

the amount of the Credit Risk Manager Fee paid to the Credit Risk Manager and the Transferor for such Distribution Date;

(v)

the aggregate amount of any Class P Prepayment Charges collected on the Mortgage Loans identified on Schedule VIII hereto;

(vi)

the aggregate Principal Balance of the Mortgage Loans in each Loan Group, and in each Subgroup, and any REO Properties as of the close of business on such Distribution Date;

(vii)

the amount of Deferred Interest payable with respect to the Loans in each Loan Group and in each Loan Subgroup for the Distribution Date;

(viii)

the number, aggregate Principal Balance, weighted average remaining term to maturity and weighted average Mortgage Rate of the Mortgage Loans in each Loan Group and in each Loan Subgroup as of the related Due Date;

(ix)

the number and aggregate unpaid Principal Balance of Mortgage Loans in each Loan Group and in each Loan Subgroup (calculated in accordance with the MBA method) (a) delinquent 1 to 30 days (b) delinquent 31 to 60 days, (c) delinquent 61 to 90 days, (d) delinquent 91 or more days, in each case, as of the last day of the preceding calendar month (after taking into account any prepayments in full received prior to the end of the Prepayment Period), (e) as to which foreclosure proceedings have been commenced and (f) with respect to which the related Mortgagor has filed for protection under applicable bankruptcy laws, with respect to whom bankruptcy proceedings are pending or with respect to whom bankruptcy protection is in force;

(x)

the book value of any REO Property related to each Loan Group and each Loan Subgroup as of the close of business on the last business day of the calendar month preceding the Distribution Date, and, cumulatively, the total number and cumulative principal balance of all REO Properties as of the close of business on the last day of the preceding Prepayment Period;

(xi)

the amount of Advances included in the distribution on such Distribution Date and the aggregate amount of Advances outstanding as of the close of business on such Distribution Date;

(xii)

the aggregate amount of Principal Prepayments made during the related Prepayment Period;

(xiii)

the aggregate amount of Realized Losses incurred during the related Prepayment Period, the aggregate amount of Realized Losses incurred since the Closing Date and the aggregate amount of Subsequent Recoveries received during the related Prepayment Period and the cumulative amount of Subsequent Recoveries received since the Closing Date;

(xiv)

the aggregate Class Principal Balance and Notional Amount, as applicable, of each Class of Certificates, after giving effect to the distributions, and allocations of Realized Losses, made on such Distribution Date, separately identifying any reduction thereof due to allocations of Realized Losses;

(xv)

the Certificate Factor for each such Class of Certificates applicable to such Distribution Date;

(xvi)

the Current Interest in respect of the Senior Certificates, the Mezzanine Certificates and the Class C Certificates for such Distribution Date and the Interest Carry Forward Amounts, if any, with respect to the Senior Certificates and the Mezzanine Certificates on such Distribution Date, separately identifying any reduction thereof due to allocations of Realized Losses, Prepayment Interest Shortfalls and Relief Act Reductions;

(xvii)

any Prepayment Interest Shortfalls included in such distribution and the aggregate amount of any Prepayment Interest Shortfall for such Distribution Date, to the extent not covered by payments by the Servicer;

(xviii)

the aggregate amount of Relief Act Reductions for such Distribution Date;

(xix)

the Group 1 Overcollateralization Target Amount, Group 2 Overcollateralization Target Amount, Group 1 Overcollateralization Amount and Group 2 Overcollateralization Amount for such Distribution Date;

(xx)

the respective Pass-Through Rates applicable to the Senior Certificates, the Mezzanine Certificates and the Class C Certificates for such Distribution Date and the Pass-Through Rate applicable to the Senior Certificates and the Mezzanine Certificates for the immediately succeeding Distribution Date;

(xxi)

the Net WAC, the Available Funds Rate Cap and the Net Rate Cap, in each case, for each Loan Group and each Loan Subgroup;

(xxii)

the Group 1 Senior Enhancement Percentage and Group 2 Senior Enhancement Percentage for the Distribution Date;

(xxiii)

when the Group 1 Stepdown Date, Group 2 Stepdown Date, Group 1 Trigger Event or Group 2 Trigger Event has occurred;

(xxiv)

the Available Funds for each Loan Group and each Loan Subgroup;

(xxv)

the Net Rate Carryover for the Senior Certificates and the Mezzanine Certificates, if any, for such Distribution Date, the amount remaining unpaid after reimbursements therefor on such Distribution Date;

(xxvi)

the application of the Net Rate Cap on such Distribution Date, and the amount of any Net Rate Carryover for each Class for such Distribution Date;

(xxvii)

unless otherwise set forth in the Form 10-D relating to such Distribution Date, material modifications, extensions or waivers to Loan terms, fees, penalties or payments during the Due Period or that have become material over time; and

(xxviii)

unless otherwise set forth in the Form 10-D relating to such Distribution Date, material breaches of Mortgage Loan representation or warranties or transaction covenants.

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

(b)

The Trust Administrator’s responsibility for making available the above information to the Master Servicer, the Trustee, the NIMS Insurer, Depositor, Certificateholders and other interested parties is limited to the availability, timeliness and the accuracy of the information provided by each Servicer.  The Trust Administrator will make a copy of each statement provided pursuant to this Section 4.04 (and, at its option, any additional files containing the same information in an alternative format) available each month to Certificateholders, the NIMS Insurer, the Certificate Insurer and other interested parties, and other parties to this Agreement via the Trust Administrator’s internet website located at “www.ctslink.com”.  Assistance in using the internet website can be obtained by calling the Trust Administrator’s customer service desk at (866) 846-4526.  Parties that are unable to use the above distribution method are entitled to have a paper copy mailed to them via first class mail by calling the customer service desk and indicating such.  The Trust Administrator shall have the right to change the way the Distribution Date Statement is distributed in order to make such distribution more convenient and/or more accessible and the Trust Administrator shall provide timely and adequate notification to the Certificateholders, the Certificate Insurer and the parties to this Agreement regarding any such changes.

The Trust Administrator shall also be entitled to rely on but shall not be responsible for the content or accuracy of any information provided by third parties (including each Servicer) for purposes of preparing the Distribution Date Statement and may affix thereto any disclaimer it deems appropriate in its reasonable discretion (without suggesting liability on the part of any other party hereto).

As a condition to access the Trust Administrator’s internet website, the Trust Administrator may require registration and the acceptance of a disclaimer.  The Trust Administrator will not be liable for the dissemination of information in accordance with this Agreement.

(c)

Within a reasonable period of time after the end of each calendar year, the Trust Administrator shall cause to be furnished upon request to each Person who at any time during the calendar year was a Certificateholder, a statement containing the information set forth in clauses (a)(i), (a)(ii) and (a)(vii) of this Section 4.04 aggregated for such calendar year or applicable portion thereof during which such Person was a Certificateholder.  Such obligation of the Trust Administrator shall be deemed to have been satisfied to the extent that substantially comparable information shall be provided by the Trust Administrator pursuant to any requirements of the Code as from time to time in effect.

(d)

With respect to each Distribution Date, prior to the issuance of the related monthly statement to Certificateholders pursuant to Section 4.04 (each, a “Distribution Date Statement”) by the Trust Administrator, the Master Servicer shall confirm that it has received all distribution and/or servicing information required to be provided to the Master Servicer, pursuant and to the extent set forth in each Servicing Agreement, by the related Servicer for inclusion in such Distribution Date Statement.  In the event the Master Servicer determines that any such information has not been provided as required or is materially incorrect, the Master Servicer shall immediately notify the related Servicer and use its reasonable best efforts to cause such Servicer to provide or correct, as the case may be, such information promptly (but in any event in time to permit the Trust Administrator to make available the Distribution Date Statement at the time required in this Agreement).

Section 4.05.  Determination of LIBOR.

On the first LIBOR Determination Date, LIBOR for any Class of LIBOR Certificates shall be equal to the Initial LIBOR Rate, and on each LIBOR Determination Date thereafter for any Class of LIBOR Certificates, the Trust Administrator shall determine LIBOR for the applicable Distribution Date on the basis of the British Bankers’ Association (“BBA”) “Interest Settlement Rate” for one month deposits in U.S. Dollars as found on Telerate page 3750 as of 11:00 a.m. London time on such LIBOR Determination Date.  As used herein, “Telerate page 3750” means the display designated as page 3750 on the Bridge Telerate Service. 

If on any LIBOR Determination Date for any Class of LIBOR Certificates, the Trust Administrator is unable to determine LIBOR on the basis of the method set forth in the preceding paragraph, LIBOR for the applicable Distribution Date will be whichever is higher of (x) LIBOR as determined on the previous LIBOR Determination Date for such Class of Certificates or (y) the Reserve Interest Rate.  The “Reserve Interest Rate” will be the rate per annum which the Trust Administrator determines to be either (A) the arithmetic mean (rounding such arithmetic mean upwards if necessary to the nearest whole multiple of 1/16%) of the one month U.S. Dollar lending rates that New York City banks selected by the Trust Administrator are quoting, on the relevant LIBOR Determination Date, to the principal London offices of at least two leading banks in the London interbank market or (B) in the event that the Trust Administrator can determine no such arithmetic mean, the lowest one month U.S. Dollar lending rate that the New York City banks selected by the Trust Administrator are quoting on such LIBOR Determination Date to leading European banks.

If on any LIBOR Determination Date for any Class of LIBOR Certificates, the Trust Administrator is required but is unable to determine the Reserve Interest Rate in the manner provided in the preceding paragraph, LIBOR for the applicable Distribution Date will be LIBOR as determined on the previous LIBOR Determination Date for such Class of Certificates, or, in the case of the first LIBOR Determination Date, the Initial LIBOR Rate.

The establishment of LIBOR by the Trust Administrator and the Trust Administrator’s subsequent calculation of the rates of interest applicable to each of the LIBOR Certificates will, in the absence of manifest error, be final and binding.  After a LIBOR Determination Date, the Trust Administrator shall provide the Pass-Through Rates of the LIBOR Certificates for the related Distribution Date to Certificate Owners or Holders of such Certificates who place a telephone call to the Trust Administrator at (301) 815-6600 and make a request therefor.

Section 4.06.  Supplemental Interest Trust.

A separate trust is hereby established (the “Supplemental Interest Trust”), the corpus of which shall be held by the Supplemental Interest Trust Trustee in trust for the benefit of the holders of the Senior Certificates and the Mezzanine Certificates.  The Supplemental Interest Trust will not be a part of any REMIC created hereby.

Section 4.07.  Distributions from the Group 1 Certificate Cap Account.

(a)

On each Distribution Date prior to Group 1 Certificate Cap Contract Termination Date, amounts on deposit in the Group 1 Certificate Cap Account from the Group 1 Certificate Cap Contract will be withdrawn therefrom and, following distributions pursuant to Section 4.02 and Section 4.08 on such Distribution Date, distributed to the Group 1 Certificates and the Certificate Insurer, sequentially as follows:  

(1)

first, to the Class 1-AIO Certificates, in an amount up to the Net Rate Carryover for such Class of Certificates, to the extent remaining unpaid;

(2)

second, concurrently, to the Group 1 Senior Certificates (other than the Class A-IO Certificates), pro rata based on the Net Rate Carryover of each such Class of Certificates, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid;

(3)

third, sequentially, to the Class 1-A3, Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, Class 1-M5 Certificates, in that order, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid; and

(4)

fourth, (i) on any Distribution Date prior to the Distribution Date in October 2012, any remaining amounts shall remain on deposit in the Group 1 Certificate Cap Account for distribution on future Distribution Dates as specified  in this Section 4.07(a) and (ii) with respect to any Distribution Date on or after the Distribution Date in October 2012, any remaining amounts shall be distributed pursuant to Section 4.07(b).

(b)

On each Distribution Date on or after the Distribution Date in October 2012, amounts on deposit in the Group 1 Certificate Cap Account from the Group 1 Certificate Cap Contract will be withdrawn therefrom and, following distributions pursuant to Section 4.02 and Section 4.08 on such Distribution Date, distributed to the Group 1 Certificates and the Certificate Insurer, sequentially as follows:  

(1)

first, to the Class or Classes of Certificates then entitled to receive distributions of principal pursuant to Section 4.02(b)(A) or Section 4.02(b)(B), in an amount up to any Group 1 Overcollateralization Deficiency Amount for such Distribution Date, to the extent remaining unpaid, in the order of priority set forth in Section 4.02(b)(A) or Section 4.02(b)(B), as applicable;

(2)

second, sequentially, to the Class 1-A3, Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, Class 1-M5 Certificates, in that order, the Interest Carry Forward Amount for each such Class and such Distribution Date, to the extent remaining unpaid;

(3)

third, concurrently, to the Group 1 Senior Certificates (other than the Class 1-AIO Certificates), pro rata based on the aggregate Unpaid Realized Loss Amounts with respect to each Subgroup of Group 1 Senior Certificates (other than the Class 1-AIO Certificates):

(a)

with respect to the Subgroup 1-1 Certificates, first, sequentially, to the Class 1-1A1 and Class 1-1A2 Certificates, in that order, in an amount up to the Unpaid Realized Loss Amount for each such Class of Subgroup 1-1 Certificates, to the extent remaining unpaid, and in the case of the Class 1-1A2 Certificates, to the extent not covered by the Certificate Insurance Policy and second, to the Certificate Insurer, in an amount up to the Subgroup 1-1 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid;

(b)

with respect to the Subgroup 1-2 Certificates, first, sequentially, to the Class 1-2A1 and Class 1-2A2 Certificates, in that order, in an amount up to the Unpaid Realized Loss Amount for each such Class of Subgroup 1-2 Certificates, to the extent remaining unpaid, and in the case of the Class 1-2A2 Certificates, to the extent not covered by the Certificate Insurance Policy and second, to the Certificate Insurer, in an amount up to the Subgroup 1-2 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid;

(4)

fourth, to the Certificate Insurer, up to the Group 1 Certificate Insurer Reimbursement Amount, to the extent remaining unpaid;

(5)

fifth, sequentially, to the Class 1-A3, Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, Class 1-M5 Certificates, in that order, in an amount up to the Unpaid Realized Loss Amount for each such Class of Certificates, to the extent remaining unpaid;

(6)

sixth, to the Class 1-AIO Certificates, in an amount up to the Net Rate Carryover for such Class of Certificates, to the extent remaining unpaid;

(7)

seventh, concurrently, to the Group 1 Senior Certificates (other than the Class A-IO Certificates), pro rata based on the Net Rate Carryover of each such Class of Certificates, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid;

(8)

eighth, sequentially, to the Class 1-A3, Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, Class 1-M5 Certificates, in that order, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid; and

(9)

ninth, (i) on any Distribution Date prior to the Distribution Date on which the aggregate Class Principal Balance of the Group 1 Senior Certificates and Group 1 Mezzanine Certificates is reduced to zero, any remaining amounts shall remain on deposit in the Group 1 Certificate Cap Account for distribution on future Distribution Dates as specified  in this Section 4.07(b) and (ii) with respect to any Distribution Date on the Distribution Date on which the aggregate Class Principal Balance of the Group 1 Senior Certificates and Group 1 Mezzanine Certificates is reduced to zero, any remaining amounts shall be distributed to the Depositor.

Section 4.08.  Distributions from the Group 1 Basis Risk Cap Account.

On each Distribution Date on or prior to the Group 1 Basis Risk Cap Contract Termination Date, amounts on deposit in the Group 1 Basis Risk Cap Account from the Group 1 Basis Risk Cap Contract will be withdrawn therefrom and, following distributions pursuant to Section 4.02 on such Distribution Date, distributed to the Group 1 Certificates, sequentially as follows:  

(1)

first, to the Class 1-AIO Certificates, in an amount up to the amount of Net Rate Carryover for such Class to the extent remaining unpaid;

(2)

second, to the Group 1 Certificates (other than the Class 1-AIO Certificates), pro rata based on Certificate Principal Balance, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid;

(3)

third, to the Group 1 Certificates (other than the Class 1-AIO Certificates), pro rata based on Net Rate Carryover, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid; and

(4)

fourth, to the Class 1-C Certificates, any remaining amounts.

Section 4.09.  Distributions from the Group 2 Certificate Cap Account.

(a)

On each Distribution Date prior to the Distribution Date in October 2012, amounts on deposit in the Group 2 Certificate Cap Account from the Group 2 Certificate Cap Contract will be withdrawn therefrom and, following distributions pursuant to Section 4.03 and Section 4.10 on such Distribution Date, distributed to the Group 2 Certificates and the Certificate Insurer, sequentially as follows:  

(1)

first, to the Class 2-AIO Certificates, in an amount up to the Net Rate Carryover for such Class of Certificates, to the extent remaining unpaid;

(2)

second, concurrently, to the Group 2 Senior Certificates (other than the Class A-IO Certificates), pro rata based on the Net Rate Carryover of each such Class of Certificates, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid;

(3)

third, sequentially, to the Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class 2-M5 and Class 2-M6 Certificates, in that order, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid; and

(4)

fourth, (i) on any Distribution Date prior to the Distribution Date in October 2012, any remaining amounts shall remain on deposit in the Group 2 Certificate Cap Account for distribution on future Distribution Dates as specified in this Section 4.09(a) and (ii) with respect to any Distribution Date on or after the Distribution Date in October 2012, any remaining amounts shall be distributed pursuant to Section 4.09(b).

(b)

On each Distribution Date on or after the Distribution Date in October 2012, amounts on deposit in the Group 2 Certificate Cap Account from the Group 2 Certificate Cap Contract will be withdrawn therefrom and, following distributions pursuant to Section 4.03 and Section 4.10 on such Distribution Date, distributed to the Group 2 Certificates and the Certificate Insurer, sequentially as follows:  

(1)

first, to the Class or Classes of Certificates then entitled to receive distributions of principal pursuant to Section 4.03(b)(A) or Section 4.03(b)(B), in an amount up to any Group 2 Overcollateralization Deficiency Amount for such Distribution Date, to the extent remaining unpaid, in the order of priority set forth in Section 4.03(b)(A) or Section 4.03(b)(B), as applicable;

(2)

second, sequentially, to the Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class 2-M5 and Class 2-M6 Certificates, in that order, the Interest Carry Forward Amount for each such Class and such Distribution Date, to the extent remaining unpaid;

(3)

third, concurrently, to the Group 2 Senior Certificates (other than the Class 2-AIO Certificates), pro rata based on the aggregate Unpaid Realized Loss Amounts with respect to each Subgroup of Group 2 Senior Certificates (other than the Class 2-AIO Certificates):

(a)

with respect to the Subgroup 2-1 Certificates, first, sequentially, to the Class 2-1A1 and Class 2-1A2 Certificates, in that order, in an amount up to the Unpaid Realized Loss Amount for each such Class of Subgroup 2-1 Certificates, to the extent remaining unpaid, and in the case of the Class 2-1A2 Certificates, to the extent not covered by the Certificate Insurance Policy and second, to the Certificate Insurer, in an amount up to the Subgroup 2-1 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid;

(b)

with respect to the Subgroup 2-2 Certificates, sequentially, (i) first, pro rata based on the Unpaid Realized Loss Amount with respect to each such Class of Certificates, to the Class 2-2A1, Class 2-2A2, Class 2-2A3 (to the extent not covered by the Certificate Insurance Policy), Class 2-2A4, and Class 2-2A5 Certificates, in an amount up to the amount of Unpaid Realized Loss Amount for each such Class of Certificates, (ii) second, to the Class 2-2A6 Certificates, in an amount up to the amount of Unpaid Realized Loss Amount for such Class of Certificates to the extent not covered by the Certificate Insurance Policy and to the extent remaining unpaid, and (iii) third, to the Certificate Insurer, in an amount up to the Subgroup 2-2 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid;;

(4)

fourth, to the Certificate Insurer, up to the Group 2 Certificate Insurer Reimbursement Amount, to the extent remaining unpaid;

(5)

fifth, sequentially, to the Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class 2-M5 and Class 2-M6 Certificates, in that order, in an amount up to the Unpaid Realized Loss Amount for each such Class of Certificates, to the extent remaining unpaid;

(6)

sixth, to the Class 2-AIO Certificates, in an amount up to the Net Rate Carryover for such Class of Certificates, to the extent remaining unpaid;

(7)

seventh, concurrently, to the Group 2 Senior Certificates (other than the Class 2-AIO Certificates), pro rata based on the Net Rate Carryover of each such Class of Certificates, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid;

(8)

eighth, sequentially, to the Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class 2-M5 and Class 2-M6 Certificates, in that order, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid; and

(9)

ninth, (i) on any Distribution Date prior to the Distribution Date in April 2014, any remaining amounts shall remain on deposit in the Group 2 Certificate Cap Account for distribution on future Distribution Dates as specified in this Section 4.09(b) and (ii) with respect to any Distribution Date on or after the Distribution Date in April 2014, any remaining amounts shall be distributed to the Class 2-C Certificates.

Section 4.10.  Distributions from the Group 2 Basis Risk Cap Account.

On each Distribution Date on or prior to the Group 2 Basis Risk Cap Contract Termination Date, amounts on deposit in the Group 2 Basis Risk Cap Account from the Group 2 Basis Risk Cap Contract will be withdrawn therefrom and, following distributions pursuant to Section 4.03 on such Distribution Date, distributed to the Group 2 Certificates, sequentially as follows:  

(1)

first, concurrently, to the Group 2 Senior Certificates (other than the Class 2-AIO, Class 2-2A3 and Class 2-2A4 Certificates) and Group 2 Mezzanine Certificates, pro rata based on the Class Principal Balance of each such Class of Certificates, in an amount up to the amount of Net Rate Carryover for each such Class;

(2)

second, concurrently, to the Group 2 Certificates (other than the Class 2-2A3 and Class 2-AIO Certificates), pro rata based on Certificate Principal Balance, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid;

(3)

third, concurrently, to the Group 2 Certificates (other than the Class 2-2A3 and Class 2-AIO Certificates), pro rata based on Net Rate Carryover, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid;

(4)

fourth, to the Class 2-2A3 Certificates, in an amount up to the Net Rate Carryover for such Class of Certificates to the extent remaining unpaid; and

(5)

fifth, to the Class 2-C Certificates, any remaining amounts.

Section 4.11.  Distributions from the Class 2-2A3 Basis Risk Cap Account.

On each Distribution Date on or prior to the Class 2-2A3 Basis Risk Cap Contract Termination Date, amounts on deposit in the Class 2-2A3 Basis Risk Cap Account from the Class 2-2A3 Basis Risk Cap Contract will be withdrawn therefrom and, following distributions pursuant to Section 4.03, Section 4.09 and Section 4.10 on such Distribution Date, distributed to the Group 2 Certificates and the Certificate Insurer, sequentially as follows:  

(1)

first, to the Class 2-2A3 Certificates, in an amount up to the Net Rate Carryover for such Class of Certificates to the extent remaining unpaid;

(2)

second, to the Class 2-AIO Certificates, in an amount up to the amount of Net Rate Carryover for such Class to the extent remaining unpaid;

(3)

third, to the Group 2 Certificates (other than the Class 2-2A3 and Class 2-AIO Certificates), pro rata based on Net Rate Carryover, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid

(4)

fourth, to the Certificate Insurer, up to the Group 2 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid; and

(5)

fifth, to the Class 2-C Certificates, any remaining amounts.

Section 4.12.  Distributions from the Group 1 Carryover Reserve Fund.

(a)

On the Distribution Date in May 2007 and June 2007, amounts on deposit in the Group 1 Carryover Reserve Fund will be withdrawn therefrom and, following distributions pursuant to Section 4.03, Section 4.07 and Section 4.08 on such Distribution Date, distributed to the Group 1 Certificates, sequentially as follows:  

(1)

first, to the Class 1-AIO Certificates, in an amount up to the Net Rate Carryover for such Class of Certificates, to the extent remaining unpaid;

(2)

second, concurrently, to the Group 1 Senior Certificates (other than the Class A-IO Certificates), pro rata based on the Net Rate Carryover of each such Class of Certificates, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid; and

(3)

third, sequentially, to the Class 1-A3, Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, Class 1-M5 Certificates, in that order, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid.

(b)

On the Distribution Date in June 2007, following any distributions pursuant to Section 4.12(a), any amounts remaining on deposit in the Group 1 Carryover Reserve Fund shall be distributed to UBS Securities LLC.

Section 4.13.  Distributions from the Group 2 Carryover Reserve Fund.

(a)

On the Distribution Date in May 2007 and June 2007, amounts on deposit in the Group 2 Carryover Reserve Fund will be withdrawn therefrom and, following distributions pursuant to Section 4.03, Section 4.09, Section 4.10 and Section 4.11 on such Distribution Date, distributed to the Group 2 Certificates, sequentially as follows:  

(1)

first, to the Class 2-AIO Certificates, in an amount up to the Net Rate Carryover for such Class of Certificates, to the extent remaining unpaid;

(2)

second, concurrently, to the Group 2 Senior Certificates (other than the Class A-IO Certificates), pro rata based on the Net Rate Carryover of each such Class of Certificates, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid; and

(3)

third, sequentially, to the Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class 2-M5 and Class 2-M6 Certificates, in that order, in an amount up to the Net Rate Carryover for each such Class of Certificates, to the extent remaining unpaid.

(b)

On the Distribution Date in June 2007, following any distributions pursuant to Section 4.13(a), any amounts remaining on deposit in the Group 2 Carryover Reserve Fund shall be distributed to UBS Securities LLC.

Section 4.14.  Distributions from the Group 2 Credit Enhancement Reserve Fund.

On each Distribution Date on and after the Distribution Date in October 2012 and prior to the Group 2 Credit Enhancement Reserve Fund Termination Date, amounts on deposit in the Group 2 Credit Enhancement Reserve Fund will be withdrawn therefrom and, following distributions pursuant to Section 4.03, Section 4.09, Section 4.10, Section 4.11 and Section 4.13 on such Distribution Date, distributed to the Group 2 Certificates and the Certificate Insurer, sequentially as follows:  

(1)

first, to the Class or Classes of Group 2 Certificates then entitled to receive distributions of principal pursuant to Section 4.03(b)(A) or Section 4.03(b)(B), in an amount up to any Group 2 Overcollateralization Deficiency Amount for such Distribution Date, to the extent remaining unpaid, in the order of priority set forth in Section 4.03(b)(A) or Section 4.03(b)(B), as applicable;

(2)

second, concurrently, to the Group 2 Senior Certificates (other than the Class 2-AIO Certificates), pro rata based on the aggregate Unpaid Realized Loss Amounts with respect to each Subgroup of Group 2 Senior Certificates (other than the Class 2-AIO Certificates):

(a)

with respect to the Subgroup 2-1 Certificates, first, sequentially, to the Class 2-1A1 and Class 2-1A2 Certificates, in that order, in an amount up to the Unpaid Realized Loss Amount for each such Class of Subgroup 2-1 Certificates, to the extent remaining unpaid, and in the case of the Class 2-1A2 Certificates, to the extent not covered by the Certificate Insurance Policy and second, to the Certificate Insurer, in an amount up to the Subgroup 2-1 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid;

(b)

with respect to the Subgroup 2-2 Certificates, sequentially, (i) first, pro rata based on the Unpaid Realized Loss Amount with respect to each such Class of Certificates, to the Class 2-2A1, Class 2-2A2, Class 2-2A3 (to the extent not covered by the Certificate Insurance Policy), Class 2-2A4, and Class 2-2A5 Certificates, in an amount up to the amount of Unpaid Realized Loss Amount for each such Class of Certificates, (ii) second, to the Class 2-2A6 Certificates, in an amount up to the amount of Unpaid Realized Loss Amount for such Class of Certificates to the extent not covered by the Certificate Insurance Policy and to the extent remaining unpaid, and (iii) third, to the Certificate Insurer, in an amount up to the Subgroup 2-2 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid;

(3)

third, to the Certificate Insurer, up to the Group 2 Certificate Insurer Reimbursement Amount, if any, to the extent remaining unpaid;

(4)

fourth, sequentially, to the Class 2-M1, Class 2-M2, Class 2-M3, Class 2-M4, Class 2-M5 and Class 2-M6 Certificates, in that order, in an amount up to the Unpaid Realized Loss Amount for each such Class of Certificates, to the extent remaining unpaid; and

(5)

fifth, (i) on any Distribution Date prior to the Distribution Date in April 2014, any remaining amounts shall remain on deposit in the Group 2 Credit Enhancement Reserve Fund for distribution on future Distribution Dates as specified in this Section 4.14 and (ii) with respect to any Distribution Date on or after the Distribution Date in April 2014, any remaining amounts shall be distributed to the Class 2-C Certificates.

ARTICLE V

THE CERTIFICATES

Section 5.01.  The Certificates.  

The Certificates shall be substantially in the forms attached hereto as Exhibits A through F.  The Certificates shall be issuable in registered form, in the minimum denominations, integral multiples in excess thereof (except that one Certificate in each Class may be issued in a different amount which must be in excess of the applicable minimum denomination) and aggregate denominations per Class set forth in the Preliminary Statement.

Subject to Section 10.02 hereof respecting the final distribution on the Certificates, on each Distribution Date the Trust Administrator shall make distributions to each Certificateholder of record on the preceding Record Date either (x) by wire transfer in immediately available funds to the account of such holder at a bank or other entity having appropriate facilities therefor, if such Holder has so notified the Trust Administrator in writing at least five Business Days prior to the related Record Date or (y) by check mailed by first class mail to such Certificateholder at the address of such holder appearing in the Certificate Register.

The Certificates shall be executed by manual or facsimile signature on behalf of the Trust Administrator by an authorized officer.  Certificates bearing the manual or facsimile signatures of individuals who were, at the time when such signatures were affixed, authorized to sign on behalf of the Trust Administrator shall bind the Trust Administrator, notwithstanding that such individuals or any of them have ceased to be so authorized prior to the countersignature and delivery of such Certificates or did not hold such offices at the date of such Certificate.  No Certificate shall be entitled to any benefit under this Agreement, or be valid for any purpose, unless countersigned by the Trust Administrator by manual signature, and such countersignature upon any Certificate shall be conclusive evidence, and the only evidence, that such Certificate has been duly executed and delivered hereunder.  All Certificates shall be dated the date of their countersignature.  On the Closing Date, the Trust Administrator shall countersign the Certificates to be issued at the direction of the Depositor, or any affiliate thereof.

The Depositor shall provide, or cause to be provided, to the Trust Administrator on a continuous basis, an adequate inventory of Certificates to facilitate transfers.

Section 5.02.  Certificate Register; Registration of Transfer and Exchange of Certificates.

(a)

The Trust Administrator shall maintain, or cause to be maintained in accordance with the provisions of Section 5.06 hereof, a Certificate Register for the Trust Fund in which, subject to the provisions of subsections (b) and (c) below and to such reasonable regulations as it may prescribe, the Trust Administrator shall provide for the registration of Certificates and of transfers and exchanges of Certificates as herein provided.  Upon surrender for registration of transfer of any Certificate, the Trust Administrator shall execute and deliver, in the name of the designated transferee or transferees, one or more new Certificates of the same Class and aggregate Percentage Interest.

At the option of a Certificateholder, Certificates may be exchanged for other Certificates of the same Class in authorized denominations and evidencing the same aggregate Percentage Interest upon surrender of the Certificates to be exchanged at the office or agency of the Trust Administrator.  Whenever any Certificates are so surrendered for exchange, the Trust Administrator shall execute, authenticate, and deliver the Certificates which the Certificateholder making the exchange is entitled to receive.  Every Certificate presented or surrendered for registration of transfer or exchange shall be accompanied by a written instrument of transfer in form satisfactory to the Trust Administrator duly executed by the holder thereof or his attorney duly authorized in writing.

No service charge to the Certificateholders shall be made for any registration of transfer or exchange of Certificates, but payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer or exchange of Certificates may be required by the Trust Administrator.

All Certificates surrendered for registration of transfer or exchange shall be canceled and subsequently destroyed by the Trust Administrator in accordance with the Trust Administrator’s customary procedures.

(b)

(i)  No transfer of a Private Certificate 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 state securities 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 (other than the Depositor or an affiliate of the Depositor) shall certify to the Trust Administrator in writing the facts surrounding the transfer in substantially the form set forth in Exhibit J (the “Transferor Certificate”).  Further, such Certificateholder’s prospective transferee will either (i) deliver a letter in substantially the form of either Exhibit K (the “Investment Letter”) or Exhibit L (the “Rule 144A Letter”) or (ii) deliver 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 Depositor shall provide to any Holder of a Private Certificate and any prospective transferee designated by any such Holder, information regarding the related Certificates and the Mortgage Loans and such other information as shall be necessary to satisfy the condition to eligibility set forth in Rule 144A(d)(4) for transfer of any such Certificate without registration thereof under the Securities Act pursuant to the registration exemption provided by Rule 144A.  The Trust Administrator and the Master Servicer shall cooperate with the Depositor, in accordance with the Depositor’s request, in providing the Rule 144A information referenced in the preceding sentence, including providing to the Depositor, to the extent in its possession, such information regarding the Certificates, the Mortgage Loans and other matters regarding the Trust Fund as the Depositor shall reasonably request to meet its obligation under the preceding sentence.  Each Holder of a Private Certificate desiring to effect such transfer shall, and does hereby agree to, indemnify the Trustee, the Trust Administrator, the NIMS Insurer, the Depositor, and the Master Servicer 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.

(ii)

No transfer of an ERISA-Restricted Certificate shall be made (other than to the Depositor or an affiliate of the Depositor) unless the Trust Administrator shall have received in accordance with Exhibit K or Exhibit L (in the event such Certificate is a Private Certificate) or paragraph 13 of Exhibit I (in the event such Certificate is a Residual Certificate), in form and substance satisfactory to such Trust Administrator (i) a representation 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 (a “Plan”), or a person acting for, on behalf of or with the assets of, any such Plan, (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 that 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, which Opinion of Counsel shall not be an expense of the Trustee, the Trust Administrator, the NIMS Insurer, the Depositor, the Transferor, the Master Servicer or the Trust Fund, addressed to the Trust Administrator to the effect that the purchase or holding of such ERISA-Restricted Certificate will not result in non-exempt prohibited transactions under Section 406 of ERISA and/or Section 4975 of the Code and will not subject the Trustee, the Trust Administrator, the Depositor, the Transferor or the Master Servicer to any obligation in addition to those expressly undertaken in this Agreement.  For purposes of the preceding sentence, with respect to an ERISA-Restricted Certificate that is not a Private Certificate or a Residual Certificate, in the event the representation letter referred to in the preceding sentence is not so furnished, such representation shall be deemed to have been made to the Trust Administrator by the transferee’s (including an initial acquirer’s) acceptance of the ERISA-Restricted Certificates.  Notwithstanding anything else to the contrary herein, any purported transfer of an ERISA-Restricted Certificate, to or on behalf of a Plan in violation of the above restrictions shall be void and of no effect.

To the extent permitted under applicable law (including, but not limited to, ERISA), the Trust Administrator shall be under no liability to any Person for any registration of transfer of any ERISA-Restricted Certificate that is in fact not permitted by this Section 5.02(b) 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 by the Trust Administrator in accordance with the foregoing requirements.

Neither the Trust Administrator nor the Master Servicer shall be required to monitor, determine or inquire as to the compliance with the transfer restrictions with respect to any ERISA Restricted Certificate that is a Book-Entry Certificate, and neither the Trust Administrator nor the Master Servicer shall have any liability for transfers of any such Book-Entry Certificates made through the book entry facilities of any Depository or between or among Depository Participants or Certificate Owners made in violation of the transfer restrictions set forth herein.

(iii)

No transfer of an ERISA-Restricted Trust Certificate prior to the termination of the related Cap Agreement and the Group 2 Credit Enhancement Reserve Fund relating to such Certificate shall be made unless the Trust Administrator shall have received a representation letter from the transferee of such Certificate, substantially in the form set forth in Exhibit K or Exhibit L (or Exhibit I in the event such Certificate is a Residual Certificate), to the effect that either (i) such transferee 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 Trust Certificate are eligible for exemptive relief under the statutory exemption for non-fiduciary service providers under Section 408(b)(17) of ERISA and Section 4975(d)(20) of the Code, Prohibited Transaction Class Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE 96-23 or some other applicable exemption.  Notwithstanding anything else to the contrary herein, any purported transfer of an ERISA-Restricted Trust Certificate on behalf of a Plan without the delivery to the Trust Administrator of a representation letter as described above shall be void and of no effect.  If the ERISA-Restricted Trust Certificate is a Book-Entry Certificate, the transferee will be deemed to have made a representation as provided in clause (i) or (ii) of this paragraph, as applicable.

If any ERISA-Restricted Trust Certificate, or any interest therein, is acquired or held in violation of the provisions of the preceding paragraph, the next preceding permitted beneficial owner will be treated as the beneficial owner of that Certificate, retroactive to the date of transfer to the purported beneficial owner.  Any purported beneficial owner whose acquisition or holding of an ERISA-Restricted Trust Certificate, or interest therein, was effected in violation of the provisions of the preceding paragraph shall indemnify to the extent permitted by law and hold harmless the Trustee, the Trust Administrator, the Depositor, the Transferor or the Master Servicer from and against any and all liabilities, claims, costs or expenses incurred by such parties as a result of such acquisition or holding.

To the extent permitted under applicable law (including, but not limited to, ERISA), the Trust Administrator shall be under no liability to any Person for any registration of transfer of any ERISA-Restricted Trust Certificate that is in fact not permitted by this Section 5.02(b)(iii) 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 by the Trust Administrator in accordance with the foregoing requirements.

(c)

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 (other than the Depositor of an affiliate thereof) 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.

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 addressed to the Trust Administrator and the Master Servicer, which Opinion of Counsel shall not be an expense of the Trust Fund, the Trustee, the Trust Administrator, the NIMS Insurer, the Transferor or the Master Servicer, to the effect that the elimination of such restrictions will not cause any 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 and addressed 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.

(d)

The preparation and delivery of all certificates and opinions referred to above in this Section 5.02 in connection with transfer shall be at the expense of the parties to such transfers.

(e)

Except as provided below, the Book-Entry Certificates shall at all times remain registered in the name of the Depository or its nominee and at all times:  (i) registration of the Certificates may not be transferred by the Trust Administrator except to another Depository; (ii) the Depository shall maintain Book-Entry records with respect to the Certificate Owners and with respect to ownership and transfers of such Book-Entry Certificates; (iii) ownership and transfers of registration of the Book-Entry Certificates on the books of the Depository shall be governed by applicable rules established by the Depository; (iv) the Depository may collect its usual and customary fees, charges and expenses from its Depository Participants; (v) the Trust Administrator shall deal with the Depository as representative of the Certificate Owners of the Book-Entry Certificates for purposes of exercising the rights of Holders under this Agreement, and requests and directions for and votes of such representative shall not be deemed to be inconsistent if they are made with respect to different Certificate Owners; and (vi) the Trust Administrator may conclusively rely and shall be fully protected in relying upon information furnished by the Depository with respect to its Depository Participants and furnished by the Depository Participants with respect to indirect participating firms and persons shown on the books of such indirect participating firms as direct or indirect Certificate Owners.

All transfers by Certificate Owners of Book-Entry Certificates shall be made in accordance with the procedures established by the Depository Participant or brokerage firm representing such Certificate Owner.  Each Depository Participant shall only transfer Book-Entry Certificates of Certificate Owners it represents or of brokerage firms for which it acts as agent in accordance with the Depository’s normal procedures.

If (x) (i) the Depository or the Depositor advises the Trust Administrator in writing that the Depository is no longer willing, qualified or able to properly discharge its responsibilities as Depository, and (ii) the Depositor is unable to locate a qualified successor, (y) the Depositor notifies the Trust Administrator in writing, with the consent of the applicable Depository Participants, that it elects to terminate the book-entry system through the Depository or (z) after the occurrence of a Master Servicer Event of Termination, Certificate Owners representing at least 51% of the Certificate Principal Balance of the Book-Entry Certificates together advise the Trust Administrator and the Depository through the Depository Participants in writing that the continuation of a Book-Entry system through the Depository is no longer in the best interests of the Certificate Owners and the Depository Participants consent to the termination, the Trust Administrator, upon receipt of notice of such event, shall notify all Certificate Owners, through the Depository, of the occurrence of any such event and of the availability of definitive, fully-registered Certificates (the “Definitive Certificates”) to Certificate Owners requesting the same.  Upon surrender to the Trust Administrator of the related Class of Certificates by the Depository, accompanied by the instructions from the Depository for registration, the Trust Administrator shall issue the Definitive Certificates.  None of the Master Servicer, the Depositor nor the Trust Administrator shall be liable for any delay in delivery of such instruction and each may conclusively rely on, and shall be protected in relying on, such instructions.  The Depositor shall provide the Trust Administrator with an adequate inventory of certificates to facilitate the issuance and transfer of Definitive Certificates.  Upon the issuance of Definitive Certificates all references herein to obligations imposed upon or to be performed by the Depository shall be deemed to be imposed upon and performed by the Trust Administrator, to the extent applicable with respect to such Definitive Certificates and the Trust Administrator shall recognize the Holders of the Definitive Certificates as Certificateholders hereunder; provided that the Trust Administrator shall not by virtue of its assumption of such obligations become liable to any party for any act or failure to act of the Depository.

Section 5.03.  Mutilated, Destroyed, Lost or Stolen Certificates.  

If (a) any mutilated Certificate is surrendered to the Trust Administrator, or the Trust Administrator receives evidence to its satisfaction of the destruction, loss or theft of any Certificate and (b) there is delivered to the Master Servicer, the NIMS Insurer and the Trust Administrator such security or indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Trust Administrator that such Certificate has been acquired by a bona fide purchaser, the Trust Administrator shall execute, countersign and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like Class, tenor and Percentage Interest.  In connection with the issuance of any new Certificate under this Section 5.03, the Trust Administrator may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trust Administrator and its counsel) connected therewith.  Any replacement Certificate issued pursuant to this Section 5.03 shall constitute complete and indefeasible evidence of ownership, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall be found at any time.

Section 5.04.  Persons Deemed Owners.  

The Master Servicer, the Trustee, the Trust Administrator, the NIMS Insurer and any agent of the Master Servicer, the Trust Administrator or the Trustee may treat the Person in whose name any Certificate is registered as the owner of such Certificate for the purpose of receiving distributions as provided in this Agreement and for all other purposes whatsoever, and none of the Master Servicer, the Trust Administrator, the NIMS Insurer or the Trustee nor any agent of the Master Servicer, the Trust Administrator, the NIMS Insurer or the Trustee shall be affected by any notice to the contrary.

Section 5.05.  Access to List of Certificateholders’ Names and Addresses.  

If three or more Certificateholders (a) request such information in writing from the Trust Administrator, (b) state that such Certificateholders desire to communicate with other Certificateholders with respect to their rights under this Agreement or under the Certificates, and (c) provide a copy of the communication which such Certificateholders propose to transmit, or if the Depositor or Master Servicer shall request such information in writing from the Trust Administrator, then the Trust Administrator shall, within ten Business Days after the receipt of such request, provide the Depositor, the Master Servicer or such Certificateholders at such recipients’ expense the most recent list of the Certificateholders of such Trust Fund held by the Trust Administrator, if any.  The Depositor and every Certificateholder, by receiving and holding a Certificate, agree that the Trust Administrator shall not be held accountable by reason of the disclosure of any such information as to the list of the Certificateholders hereunder, regardless of the source from which such information was derived.

Section 5.06.  Maintenance of Office or Agency.  

Certificates may be surrendered for registration of transfer or exchange at Corporate Trust Office of the Trust Administrator.  The Trust Administrator will give prompt written notice to the Certificateholders of any change in such location of any such office or agency.

ARTICLE VI

THE DEPOSITOR, THE MASTER SERVICER AND THE CUSTODIAN

Section 6.01.  Respective Liabilities of the Depositor, the Master Servicer and the Custodian.  

The Depositor, the Master Servicer, the NIMS Insurer and the Custodian shall each be liable in accordance herewith only to the extent of the obligations specifically and respectively imposed upon and undertaken by them herein.

Section 6.02.  Merger or Consolidation of the Depositor, the Master Servicer and the Custodian.  

The Depositor, the Master Servicer and the Custodian will each keep in full effect its existence, rights and franchises as a corporation or national banking association, as the case may be, under the laws of the United States or under the laws of one of the states thereof and will each obtain and preserve its qualification to do business as a foreign corporation or legal entity, as the case may be, in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Agreement, or any of the Mortgage Loans and to perform its respective duties under this Agreement.

Any Person into which the Depositor, the Master Servicer or the Custodian may be merged or consolidated, or any Person resulting from any merger or consolidation to which the Depositor, the Master Servicer or the Custodian shall be a party, or any Person succeeding to the business of the Depositor, the Master Servicer or the Custodian, shall be the successor of the Depositor, the Master Servicer or the Custodian, as the case may be, hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding; provided, however, that the successor or surviving Person to the Master Servicer shall be qualified to service mortgage loans on behalf of Fannie Mae or Freddie Mac.

Section 6.03.  Limitation on Liability of the Depositor, the NIMS Insurer, the Certificate Insurer, the Transferor, the Master Servicer, the Custodian and Others.  

None of the Depositor, the Transferor, the Master Servicer, the NIMS Insurer, the Certificate Insurer, the Custodian or any of the directors, officers, employees or agents of the Depositor, the Transferor, the NIMS Insurer, the Certificate Insurer, the Master Servicer or the Custodian shall be under any liability to the Trust for any action taken or for refraining from the taking of any action in good faith pursuant to this Agreement, or for errors in judgment; provided, however, that this provision shall not protect the Depositor, the Transferor, the NIMS Insurer, the Certificate Insurer, the Master Servicer, the Custodian or any such Person against any breach of representations or warranties made by it herein or protect the Depositor, the Transferor, the Master Servicer, the NIMS Insurer, the Certificate Insurer, the Custodian or any such Person from any liability which would otherwise be imposed by reason of willful misfeasance, bad faith or negligence in the performance of duties hereunder or by reason of reckless disregard of obligations and duties hereunder.  The Depositor, the Transferor, the Master Servicer, the NIMS Insurer, the Certificate Insurer, the Custodian and any director, officer, employee or agent of the Depositor, the Transferor, the Master Servicer, the NIMS Insurer, the Certificate Insurer or the Custodian may rely in good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising hereunder.  The Depositor, the Transferor, the Master Servicer, the NIMS Insurer, the Certificate Insurer, the Custodian and any director, officer, employee or agent of the Depositor, the Transferor, the Master Servicer, the NIMS Insurer, the Certificate Insurer or the Custodian shall be indemnified by the Trust Fund and held harmless against any loss, liability or expense incurred in connection with (i) any audit, controversy or judicial proceeding relating to a governmental taxing authority, (ii) the performance of its duties and obligations and the exercise of (or failure to exercise) its rights under this Agreement or the Certificates which constitute “unanticipated expenses incurred by the REMIC” within the meaning of the REMIC Provisions, or (iii) any legal action relating to this Agreement or the Certificates, other than any loss, liability or expense related to any specific Mortgage Loan or Mortgage Loans (except as any such loss, liability or expense shall be otherwise reimbursable pursuant to this Agreement) and any loss, liability or expense incurred by reason of willful misfeasance, bad faith or negligence in the performance of duties hereunder or by reason of reckless disregard of obligations and duties hereunder.  None of the Depositor, the Transferor, the Master Servicer, the NIMS Insurer, the Certificate Insurer and the Custodian shall be under any obligation to appear in, prosecute or defend any legal action that is not incidental to its respective duties hereunder and which in its opinion may involve it in any expense or liability; provided, however, that any of the Depositor, the Transferor, the Master Servicer, the NIMS Insurer, the Certificate Insurer or the Custodian may in its discretion undertake any such action that it may deem necessary or desirable in respect of this Agreement and the rights and duties of the parties hereto and interests of the Trustee, the Trust Administrator and the Certificateholders and the Certificate Insurer hereunder.  In such event, the legal expenses and costs of such action and any liability resulting therefrom shall be expenses, costs and liabilities of the Trust Fund, and the Depositor, the Transferor, the NIMS Insurer, the Certificate Insurer, the Custodian and the Master Servicer shall be entitled to be reimbursed therefor out of the Collection Account.

Section 6.04.  Limitation on Resignation of Master Servicer.  

The Master Servicer shall not resign from the obligations and duties hereby imposed on it except (a) upon appointment of a successor master servicer and receipt by the Trustee of a letter from each Rating Agency that such a resignation and appointment will not result in a downgrading of the rating of any of the Certificates, or (b) upon determination that its duties hereunder are no longer permissible under applicable law, or (c) pursuant to Section 6.05.  Any such determination under clause (b) permitting the resignation of the Master Servicer shall be evidenced by an Opinion of Counsel to such effect delivered to the Trustee and the NIMS Insurer.  No such resignation shall become effective until the Trustee or a successor master servicer acceptable to the NIMS Insurer and the Certificate Insurer, shall have assumed the Master Servicer’s responsibilities, duties, liabilities and obligations hereunder.

Section 6.05.  Sale and Assignment of Master Servicing Rights.  

The Master Servicer may sell, assign or delegate its rights, duties and obligations as Master Servicer under this Agreement in their entirety; provided, however, that:  (i) the purchaser or transferee accepting such sale, assignment and delegation (a) shall be a Person qualified to service mortgage loans for Fannie Mae or Freddie Mac, (b) shall have a net worth of not less than $50,000,000 (unless otherwise approved by each Rating Agency pursuant to clause (ii) below) or (c) shall execute and deliver to the Trustee, the Certificate Insurer and the NIMS Insurer an agreement, in form and substance reasonably satisfactory to the Trustee, the Certificate Insurer and the NIMS Insurer, which contains an assumption by such Person of the due and punctual performance and observance of each covenant and condition to be performed or observed by it as master servicer under this Agreement, from and after the effective date of such assumption agreement or delegation; (ii) each Rating Agency shall be given prior written notice of the identity of the proposed successor to the Master Servicer and shall confirm in writing to the Master Servicer, the Trustee, the Certificate Insurer and the NIMS Insurer that any such sale, assignment or delegation would not result in a withdrawal or a downgrading of the rating on any Class of Certificates in effect immediately prior to such sale, assignment; and (iii) the Master Servicer shall deliver to the Trustee, the Certificate Insurer and the NIMS Insurer an Officer’s Certificate and an Opinion of Independent Counsel, each stating that all conditions precedent to such action under this Agreement have been fulfilled and such action is permitted by and complies with the terms of this Agreement.  No such sale, assignment or delegation shall affect any liability of the Master Servicer arising prior to the effective date thereof.

Section 6.06.  Fees of the Custodian.

The Custodian shall be compensated as separately agreed in writing with the Master Servicer.

ARTICLE VII

DEFAULT

Section 7.01.  Events of Default.  

“Master Servicer Event of Termination,” wherever used herein, means any one of the following events:

(i)

The Master Servicer fails to cause to be deposited in the Distribution Account any amount so required to be deposited pursuant to this Agreement, and such failure continues unremedied for a period of one Business Day; or

(ii)

The Master Servicer fails to observe or perform in any material respect any other material covenants and agreements set forth in this Agreement to be performed by it, which covenants and agreements materially affect the rights of Certificateholders or the Certificate Insurer, and such failure continues unremedied for a period of 60 days after the date on which written notice of such failure, properly requiring the same to be remedied, shall have been given to the Master Servicer by the Trustee or the NIMS Insurer or to the Master Servicer and the Trustee or the Trust Administrator by the Holders of Certificates evidencing Voting Rights aggregating not less than 25% of the Certificates; or

(iii)

There is entered against the Master Servicer a decree or order by a court or agency or supervisory authority having jurisdiction in the premises for the appointment of a conservator, receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings, or for the winding up or liquidation of its affairs, and the continuance of any such decree or order is unstayed and in effect for a period of 60 consecutive days, or an involuntary case is commenced against the Master Servicer under any applicable insolvency or reorganization statute and the petition is not dismissed within 60 days after the commencement of the case; or

(iv)

The Master Servicer consents to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings of or relating to the Master Servicer or substantially all of its property; or the Master Servicer admits in writing its inability to pay its debts generally as they become due, files a petition to take advantage of any applicable insolvency or reorganization statute, makes an assignment for the benefit of its creditors, or voluntarily suspends payment of its obligations; or

(v)

The Master Servicer assigns or delegates its duties or rights under this Agreement in contravention of the provisions permitting such assignment or delegation under Section 6.04; or

(vi)

any failure by the Master Servicer to comply with Sections 3.21 or 3.22.

In each and every such case, so long as such Master Servicer Event of Termination with respect to the Master Servicer shall not have been remedied, the Trustee may, and (i) at the direction of the Holders of Certificates evidencing Voting Rights aggregating not less than 25% of the Certificates or (ii) if such Master Servicer Event of Termination is related to a failure by the Master Servicer to make any Advance required to be made by it pursuant to the terms of this Agreement or perform its obligations under Sections 3.21 or 3.22 of this Agreement, the Trustee shall, in each case by notice in writing to the Master Servicer, with a copy to the Rating Agencies, terminate all of the rights and obligations (but not the liabilities accruing prior to the date of termination) of the Master Servicer under this Agreement and in and to the Mortgage Loans and/or the REO Property serviced by the Master Servicer and the proceeds thereof provided, however, with respect to an Event of Default set forth in clause (vi), the Depositor, at its sole option, but with the consent of the Trustee, may permit a cure period for the Master Servicer to deliver such Assessment of Compliance or Accountant’s Attestation, but in no event later than March 25th of such year.  Upon the receipt by the Master Servicer of such written notice, all authority and power of the Master Servicer under this Agreement, whether with respect to the Certificates, the Mortgage Loans, the Servicing Agreements, REO Property or under any other related agreements (but only to the extent that such other agreements relate to the Mortgage Loans or related REO Property) shall, subject to Section 7.02, automatically and without further action pass to and be vested in the Trustee pursuant to this Section 7.01; and, without limitation, the Trustee is hereby authorized and empowered to execute and deliver, on behalf of the Master Servicer as attorney-in-fact or otherwise, any and all documents and other instruments and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of such notice of termination, whether to complete the transfer and endorsement or assignment of the Mortgage Loans and related documents, or otherwise.  The Master Servicer agrees to cooperate with the Trustee in effecting the termination of the Master Servicer’s rights and obligations hereunder, including, without limitation, the transfer to the Trustee of (i) the Mortgage Files and all other property and amounts which are then or should be part of the Trust or which thereafter become part of the Trust; and (ii) originals or copies of all documents of the Master Servicer reasonably requested by the Trustee to enable it to assume the Master Servicer’s duties thereunder.  In addition to any other amounts which are then, or, notwithstanding the termination of its activities under this Agreement, may become payable to the Master Servicer under this Agreement, the Master Servicer shall be entitled to receive, out of any amount received on account of a Mortgage Loan or related REO Property, that portion of such payments which it would have received as reimbursement under this Agreement if notice of termination had not been given.  The termination of the rights and obligations of the Master Servicer shall not affect any obligations incurred by the Master Servicer prior to such termination.

Notwithstanding any termination of the activities of the Master Servicer hereunder, the Master Servicer shall be entitled to receive, out of any late collection of a Scheduled Payment on a Mortgage Loan which was due prior to the notice terminating such Master Servicer’s rights and obligations as Master Servicer hereunder and received after such notice, that portion thereof to which such Master Servicer would have been entitled pursuant to Sections 3.10(a)(i) through (xi), and any other amounts payable to such Master Servicer hereunder the entitlement to which arose prior to the termination of its activities hereunder.

If the Master Servicer and the Trust Administrator are the same Person, then at any time the Master Servicer is terminated pursuant to Section 7.01 hereof, the Trust Administrator shall likewise be removed as trust administrator hereunder.

Section 7.02.  Trustee to Act; Appointment of Successor.  

On and after the time the Master Servicer receives a notice of termination pursuant to Section 7.01 hereof, the Trustee shall, subject to and to the extent provided in Section 3.05, be the successor to the Master Servicer in its capacity as Master Servicer under this Agreement and the transactions set forth or provided for herein and shall be subject to all the responsibilities, duties, liabilities and limitations on liabilities relating thereto placed on the Master Servicer by the terms and provisions hereof and applicable law, including the obligation to make Advances pursuant to Section 4.01.  As compensation therefor, the Trustee shall be entitled to investment income on all funds to which the Master Servicer would have been entitled in the Collection Account or Distribution Account if the Master Servicer had continued to act hereunder.  Notwithstanding the foregoing, if the Trustee has become the successor to the Master Servicer in accordance with Section 7.01 hereof, the Trustee may, if it shall be unwilling to so act, or shall, if it is prohibited by applicable law from making Advances pursuant to Section 4.01 hereof or if it is otherwise unable to so act, or if it has been requested in writing by the NIMS Insurer or Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the Certificates to do so, appoint, or petition a court of competent jurisdiction to appoint, any established mortgage loan servicing institution the appointment of which does not adversely affect the then current rating of the Certificates by each Rating Agency as the successor to the Master Servicer hereunder in the assumption of all or any part of the responsibilities, duties or liabilities of the Master Servicer hereunder.  Any successor to the Master Servicer shall be an institution which is a Fannie Mae and Freddie Mac approved seller/servicer in good standing, which has a net worth of at least $15,000,000, and which is willing to master service the Mortgage Loans and executes and delivers to the Depositor and the Trustee an agreement accepting such delegation and assignment, which contains an assumption by such Person of the rights, powers, duties, responsibilities, obligations and liabilities of the Master Servicer (other than liabilities of the Master Servicer under Section 6.03 hereof incurred prior to termination of the Master Servicer under Section 7.01), with like effect as if originally named as a party to this Agreement; and provided further that each Rating Agency acknowledges that its rating of the Certificates in effect immediately prior to such assignment and delegation will not be qualified or reduced, without regard to the guaranty provided by the Policies, as a result of such assignment and delegation.  Pending appointment of a successor to the Master Servicer hereunder, the Trustee, unless the Trustee is prohibited by law from so acting, shall, subject to Section 3.05 hereof, act in such capacity as hereinabove provided.  In connection with such appointment and assumption, the Trustee may make such arrangements for the compensation of such successor master servicer out of payments on Mortgage Loans as it and such successor master servicer shall agree; provided, however, that no such compensation shall be in excess of the compensation permitted the Master Servicer hereunder.  The Trustee and such successor master servicer shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such succession.  Neither the Trustee nor any other successor master servicer shall be deemed to be in default hereunder by reason of any failure to make, or any delay in making, any distribution hereunder or any portion thereof or any failure to perform, or any delay in performing, any duties or responsibilities hereunder, in either case caused by the failure of the Master Servicer to deliver or provide, or any delay in delivering or providing, any cash, information, documents or records to it.

Any successor master servicer as Master Servicer shall give notice to each Servicer of such change of master servicer and shall, during the term of its service as master servicer enforce the requirement of each Servicer to maintain in force the policy or policies pursuant to Section 3.11.

The Trustee or successor master servicer shall be entitled to be reimbursed from the Master Servicer for all costs associated with the transfer of master servicing from the predecessor master servicer, including, without limitation, any costs or expenses (including but not limited to personnel time) associated with the complete transfer of all master servicing data and the completion, correction or manipulation of such master servicing data as may be required by the Trustee or successor master servicer to correct any errors or insufficiencies in the master servicing data or otherwise to enable the Trustee or successor master servicer to master service the Mortgage Loans properly and effectively.  If the Master Servicer does not pay such reimbursement within thirty (30) days of its receipt of an invoice therefor, such reimbursement shall be an expense of the Trust and the Trustee shall be entitled to withdraw such reimbursement from amounts on deposit in the Distribution Account pursuant to Section 3.10(b)(iii); provided that the Master Servicer shall reimburse the Trust for any such expense incurred by the Trust.

Section 7.03.  Notification to Certificateholders.  

(a)

Upon any termination of or appointment of a successor to the Master Servicer, the Trustee (or the Trust Administrator on its behalf) shall give prompt written notice thereof to the NIMS Insurer, the Certificate Insurer, Certificateholders and to each Rating Agency.

(b)

Within 60 days after the occurrence of any Master Servicer Event of Termination, the Trustee or the Trust Administrator shall transmit by mail to the NIMS Insurer, the Certificate Insurer and all Certificateholders notice of each such Master Servicer Event of Termination hereunder actually known to a Responsible Officer of the Trustee or the Trust Administrator, unless such Master Servicer Event of Termination shall have been cured or waived.

ARTICLE VIII

CONCERNING THE TRUSTEE AND THE MASTER SERVICER

Section 8.01.  Duties of Trustee.  

The Trustee, prior to the occurrence of a Master Servicer Event of Termination and after the curing or waiver of all Master Servicer Events of Termination that may have occurred, shall undertake to perform such duties and only such duties as are specifically set forth in this Agreement.  In case a Master Servicer Event of Termination has occurred and remains uncured or unwaived, the Trustee shall exercise such of the rights and powers vested in it by this Agreement, and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs, but only until such time as a successor Master Servicer shall have been appointed hereunder.

The Trustee, upon receipt of all resolutions, certificates, statements, opinions, reports, documents, orders or other instruments furnished to the Trustee that are specifically required to be furnished pursuant to any provision of this Agreement shall examine them to determine whether they are in the form required by this Agreement to the extent that forms of such documents have been provided to the Trustee; provided, however, that the Trustee shall not be responsible for the accuracy or content of any such resolution, certificate, statement, opinion, report, document, order or other instrument.  If any such instrument is found not to conform in any material respect to the requirements of this Agreement, the Trustee shall notify the NIMS Insurer, the Certificate Insurer and the Certificateholders of such non-conforming instrument in the event the Trustee, after so requesting, does not receive a satisfactorily corrected instrument.

No provision of this Agreement shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act or its own willful misconduct; provided, however, that:

(i)

unless a Master Servicer Event of Termination of which a Responsible Officer of the Trustee has actual knowledge shall have occurred and be continuing, the duties and obligations of the Trustee shall be determined solely by the express provisions of this Agreement, the Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Agreement, no implied covenants or obligations shall be read into this Agreement against the Trustee and the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Agreement which it believed in good faith to be genuine and to have been duly executed by the proper authorities respecting any matters arising hereunder;

(ii)

the Trustee shall not be liable for an error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee, unless it shall be conclusively determined by a court of competent jurisdiction, such determination no longer subject to appeal, that the Trustee was negligent in ascertaining the pertinent facts;

(iii)

the Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it in good faith in accordance with the direction of the NIMS Insurer or Holders of Certificates evidencing not less than 25% of the Voting Rights of Certificates relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising or omitting to exercise any trust or power conferred upon the Trustee under this Agreement;

(iv)

the Trustee shall not be accountable, shall have no liability and makes no representation as to any acts or omissions hereunder of the Master Servicer until such time as the Trustee may be required to act as Master Servicer pursuant to Section 7.02 and thereupon only for the acts or omissions of the Trustee as successor Master Servicer; and

(v)

the Trustee shall promptly remit to the Master Servicer any complaint, claim, demand, notice or other document (collectively, the “Notices”) delivered to the Trustee as a consequence of the assignment of any Mortgage Loan hereunder and relating to the servicing of the Mortgage Loans; provided that any such Notice (i) is delivered to the Trustee at its Corporate Trust Office; and (ii) contains information sufficient to permit the Trustee to make a determination that the real property to which such document relates is a Mortgaged Property.  The Trustee shall have no duty hereunder with respect to any Notice it may receive or which may be alleged to have been delivered to or served upon it unless such Notice is delivered to it or served upon it at its Corporate Trust Office and such Notice contains the information required pursuant to clause (ii) of the preceding sentence.

Section 8.02.  Certain Matters Affecting the Trustee.  

(a)

Except as otherwise provided in Section 8.01:

(i)

the Trustee may request and conclusively rely upon and shall be fully protected in acting or refraining from acting upon any resolution, Officer’s Certificate, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties and the Trustee shall have no responsibility to ascertain or confirm the genuineness of any signature of any such party or parties;

(ii)

the Trustee may consult with counsel, financial advisers or accountants and the advice of any such counsel, financial advisers or accountants and any advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel;

(iii)

the Trustee shall not be liable for any action taken, suffered or omitted by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Agreement;

(iv)

prior to the occurrence of a Master Servicer Event of Termination and after the curing or waiver of all Master Servicer Events of Termination which may have occurred, the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document, unless requested in writing so to do by the NIMS Insurer or Holders of Certificates evidencing not less than 25% of the Voting Rights allocated to each Class of Certificates; provided, however, that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Agreement, the Trustee may require reasonable indemnity against such expense or liability as a condition to so proceeding.  The reasonable expense of every such examination shall be paid by the Master Servicer or, if paid by the Trustee, shall be reimbursed by the Master Servicer upon demand.  Nothing in this clause (iv) shall derogate from the obligation of the Master Servicer to observe any applicable law prohibiting disclosure of information regarding the Mortgagors;

(v)

the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys or a custodian (including, without limitation, the Custodian) and the Trustee shall not be responsible for any misconduct or negligence on the part of any such agent, attorney or custodian appointed by the Trustee with due care or on the part of the Custodian;

(vi)

the Trustee shall not be required to risk or expend its own funds or otherwise incur any financial liability in the performance of any of its duties or in the exercise of any of its rights or powers hereunder if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not assured to it, and none of the provisions contained in this Agreement shall in any event require the Trustee to perform, or be responsible for the manner of performance of, any of the obligations of the Master Servicer under this Agreement, except during such time, if any, as the Trustee shall be the successor to, and be vested with the rights, duties, powers and privileges of, the Master Servicer in accordance with the terms of this Agreement;

(vii)

the Trustee shall not be liable for any loss on any investment of funds pursuant to this Agreement (other than as issuer of the investment security);

(viii)

the Trustee shall not be deemed to have knowledge of a Master Servicer Event of Termination until a Responsible Officer of the Trustee obtains actual knowledge of such failure or the Trustee receives written notice of such failure from the Master Servicer, the NIMS Insurer, the Certificate Insurer or the holders of Certificates evidencing not less than 25% of the Voting Rights of Certificates.  In the absence of such receipt of such notice, the Trustee may conclusively assume that there is no Master Servicer Event of Termination;

(ix)

the Trustee shall be under no obligation to exercise any of the trusts, rights or powers vested in it by this Agreement or to institute, conduct or defend any litigation hereunder or in relation hereto at the request, order or direction of any of the NIMS Insurer or the Certificateholders, pursuant to the provisions of this Agreement, unless the NIMS Insurer, the Certificate Insurer or the Certificateholders have offered to the Trustee reasonable security or indemnity satisfactory to the Trustee against the costs, expenses and liabilities which may be incurred therein or thereby.

(b)

The Trustee shall have no duty (A) to see to any recording, filing, or depositing of this Agreement or any agreement referred to herein or any financing statement or continuation statement evidencing a security interest, or to see to the maintenance of any such recording or filing or depositing or to any rerecording, refiling or redepositing thereof, (B) to see to the provision of any insurance or (C) to see to the payment or discharge of any tax, assessment, or other governmental charge or any lien or encumbrance of any kind owing with respect to, assessed or levied against, any part of the Trust Fund other than from funds available in the Distribution Account.

Section 8.03.  Trustee Not Liable for Certificates or Mortgage Loans.  

The recitals contained herein and in the Certificates shall be taken as the statements of the Depositor or the Transferor, as the case may be, and the Trustee assumes no responsibility for their correctness.  The Trustee makes no representations as to the validity or sufficiency of this Agreement or of the Certificates or of any Mortgage Loan or related document.  The Trustee shall not be accountable for the use or application by the Depositor or the Master Servicer of any funds paid to the Depositor or the Master Servicer in respect of the Mortgage Loans or deposited in or withdrawn from the Collection Account or the Distribution Account by the Depositor, the Master Servicer or the Trust Administrator.

Section 8.04.  Trustee May Own Certificates.  

The Trustee in its individual or any other capacity may become the owner or pledgee of Certificates and may transact business with the parties hereto and their Affiliates with the same rights as it would have if it were not the Trustee.

Section 8.05.  Trustee’s Fees and Expenses.  

The Trustee shall be compensated by the Master Servicer as separately agreed with the Master Servicer.  The Trustee and any director, officer, employee, agent or “control person” within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange of 1934, as amended (“Control Person”), of the Trustee shall be indemnified by the Trust and held harmless against any loss, liability or expense (including reasonable attorney’s fees) (i) incurred in connection with any claim or legal action relating to (a) this Agreement (b) the Mortgage Loans, (c) the Assignment Agreements or (d) the Certificates, other than any loss, liability or expense incurred by reason of willful misfeasance, bad faith or negligence in the performance of any of the Trustee’s duties hereunder, (ii) incurred in connection with the performance of any of the Trustee’s duties or the exercise of (or failure to exercise) its rights hereunder or under the Assignment Agreements, other than any loss, liability or expense incurred by reason of willful misfeasance, bad faith or negligence in the performance of any of the Trustee’s duties hereunder, or in the exercise (or failure to exercise) any of the Trustee’s rights hereunder, (iii) incurred by reason of any action of the Trustee taken at the direction of the Certificateholders, or (iv) resulting from any error in any tax or information return prepared by the Master Servicer, provided, that any such loss, liability or expense constitutes an “unanticipated expense incurred by the REMIC” within the meaning of Treasury Regulations Section 1.860G-1(b)(3)(ii).  Such indemnity shall survive the termination of this Agreement or the resignation or removal of the Trustee hereunder.  Without limiting the foregoing, and except for any such expense, disbursement or advance as may arise from the Trustee’s negligence, bad faith or willful misconduct, or which would not be an “unanticipated expense” within the meaning of the second preceding sentence, the Trustee shall be reimbursed by the Trust for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any of the provisions of this Agreement with respect to:  (A) the reasonable compensation and the expenses and disbursements of its counsel not associated with the closing of the issuance of the Certificates, (B) the reasonable compensation, expenses and disbursements of any accountant, engineer, appraiser or other agent that is not regularly employed by the Trustee, to the extent that the Trustee must engage such Persons to perform acts or services hereunder and (C) printing and engraving expenses in connection with preparing any Definitive Certificates.  The Trust shall fulfill its obligations under this paragraph from amounts on deposit from time to time in the Distribution Account.

Section 8.06.  Eligibility Requirements for Trustee.  

The Trustee hereunder shall at all times be a corporation or association organized and doing business under the laws of the United States of America or any state thereof, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least $50,000,000, subject to supervision or examination by federal or state authority and with a credit rating of at least investment grade.  If such corporation or association publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section 8.06 the combined capital and surplus of such corporation or association shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.  In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 8.06, the Trustee shall resign immediately in the manner and with the effect specified in Section 8.07 hereof.  The entity serving as Trustee may have normal banking and trust relationships with the Depositor and its affiliates or the Master Servicer and its affiliates; provided, however, that such entity cannot be an affiliate of the Master Servicer other than the Trustee in its role as successor to the Master Servicer.

Section 8.07.  Resignation and Removal of Trustee.  

The Trustee may at any time resign and be discharged from the trusts hereby created by giving written notice of resignation to the Depositor, the NIMS Insurer, the Certificate Insurer and the Master Servicer and each Rating Agency not less than 60 days before the date specified in such notice when, subject to Section 8.08, such resignation is to take effect, and acceptance by a successor trustee acceptable to the NIMS Insurer and the Certificate Insurer and in accordance with Section 8.08 meeting the qualifications set forth in Section 8.06.  If no successor trustee meeting such qualifications shall have been so appointed by the Depositor and have accepted appointment within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor trustee.

If at any time the Trustee shall cease to be eligible in accordance with the provisions of Section 8.06 hereof and shall fail to resign after written request thereto by the NIMS Insurer or the Depositor, or if at any time the Trustee shall become incapable of acting, or shall be adjudged as bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, or a tax is imposed with respect to the Trust Fund by any state in which the Trustee or the Trust Fund is located and the imposition of such tax would be avoided by the appointment of a different trustee, then the NIMS Insurer, the Certificate Insurer, the Depositor or the Master Servicer may remove the Trustee and appoint a successor trustee acceptable to the NIMS Insurer and the Certificate Insurer, by written instrument, in triplicate, one copy of which instrument shall be delivered to the Trustee so removed, one copy of which shall be delivered to the Master Servicer and one copy to the successor trustee.  

The Holders of Certificates entitled to at least 51% of the Voting Rights or the NIMS Insurer may at any time remove the Trustee and appoint a successor trustee acceptable to the NIMS Insurer and the Certificate Insurer, by written instrument or instruments, in triplicate, signed by such Holders or their attorneys-in-fact duly authorized, one complete set of which instruments shall be delivered by the successor Trustee to the Master Servicer, one complete set to the Trustee so removed and one complete set to the successor so appointed.  Notice of any removal of the Trustee shall be given to each Rating Agency by the successor trustee.

Any resignation or removal of the Trustee and appointment of a successor trustee pursuant to any of the provisions of this Section 8.07 shall become effective upon acceptance by the successor trustee of appointment as provided in Section 8.08 hereof.

Section 8.08.  Successor Trustee.  

Any successor trustee appointed as provided in Section 8.07 hereof shall execute, acknowledge and deliver to the Depositor, the Certificate Insurer, the NIMS Insurer and to its predecessor trustee and the Master Servicer an instrument accepting such appointment hereunder and thereupon the resignation or removal of the predecessor trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of its predecessor hereunder, with the like effect as if originally named as trustee herein.  The Depositor, the Master Servicer and the predecessor trustee shall execute and deliver such instruments and do such other things as may reasonably be required for more fully and certainly vesting and confirming in the successor trustee all such rights, powers, duties, and obligations.

No successor trustee shall accept appointment as provided in this Section 8.08 unless at the time of such acceptance such successor trustee shall be eligible under the provisions of Section 8.06 hereof and its appointment shall not adversely affect the then current rating of the Certificates, as confirmed in writing by each Rating Agency.

Upon acceptance by a successor trustee of appointment as provided in this Section 8.08, the Depositor shall mail notice of the succession of such trustee hereunder to all Holders of Certificates and the Certificate Insurer.  If the Depositor fails to mail such notice within 10 days after acceptance by the successor trustee of appointment, the successor trustee shall cause such notice to be mailed at the expense of the Depositor.

Section 8.09.  Merger or Consolidation of Trustee.  

Any corporation or other entity into which the Trustee may be merged or converted or with which it may be consolidated or any corporation or other entity resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation or other entity succeeding to the business of the Trustee, shall be the successor of the Trustee hereunder, provided that such corporation or other entity shall be eligible under the provisions of Section 8.06 hereof, without the execution or filing of any paper or further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.

Section 8.10.  Appointment of Co-Trustee or Separate Trustee.  

Notwithstanding any other provisions of this Agreement, at any time, for the purpose of meeting any legal requirements of any jurisdiction in which any part of the Trust Fund or property securing any Mortgage Note may at the time be located, the Master Servicer and the Trustee acting jointly shall have the power and shall execute and deliver all instruments to appoint one or more Persons approved by the Trustee, the Certificate Insurer and the NIMS Insurer to act as co-trustee or co-trustees jointly with the Trustee, or separate trustee or separate trustees, of all or any part of the Trust Fund, and to vest in such Person or Persons, in such capacity and for the benefit of the Certificateholders, such title to the Trust Fund or any part thereof, whichever is applicable, and, subject to the other provisions of this Section 8.10, such powers, duties, obligations, rights and trusts as the Master Servicer, the NIMS Insurer, the Certificate Insurer and the Trustee may consider necessary or desirable.  If the Master Servicer, the Certificate Insurer or the NIMS Insurer shall not have joined in such appointment within 15 days after the receipt by it of a request to do so, or in the case where a Master Servicer Event of Termination and a Certificate Insurer Default shall have occurred and be continuing, the Trustee alone shall have the power to make such appointment.  No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under Section 8.06 and no notice to Certificateholders of the appointment of any co-trustee or separate trustee shall be required under Section 8.08.

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

(i)

To the extent necessary to effectuate the purposes of this Section 8.10, all rights, powers, duties and obligations conferred or imposed upon the Trustee, except for the obligation of the Trustee (as successor master servicer) under this Agreement to advance funds on behalf of the Master Servicer, shall be conferred or imposed upon and exercised or performed by the Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed (whether as Trustee hereunder or as successor to the Master Servicer hereunder), the Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to the applicable Trust Fund or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the Trustee;

(ii)

No trustee hereunder shall be held personally liable by reason of any act or omission of any other trustee hereunder and such appointment shall not, and shall not be deemed to, constitute any such separate trustee or co-trustee as agent of the Trustee; and

(iii)

The Trustee may at any time accept the resignation of or remove any separate trustee or co-trustee.

Any notice, request or other writing given to the Trustee shall be deemed to have been given to each of the separate trustees and co-trustees, when and as effectively as if given to each of them.  Every instrument appointing any separate trustee or co-trustee shall refer to this Agreement and the conditions of this Article VIII.  Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Trustee or separately, as may be provided therein, subject to all the provisions of this Agreement, specifically including every provision of this Agreement relating to the conduct of, affecting the liability of, or affording protection to, the Trustee.  Every such instrument shall be filed with the Trustee and a copy thereof given to the Master Servicer, the NIMS Insurer, the Certificate Insurer and the Depositor.

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

ARTICLE IX

CONCERNING THE TRUST ADMINISTRATOR

Section 9.01.  Duties of Trust Administrator.  

The Trust Administrator shall undertake to perform such duties and only such duties as are specifically set forth in this Agreement.  

The Trust Administrator, upon receipt of all resolutions, certificates, statements, opinions, reports, documents, orders or other instruments furnished to the Trust Administrator that are specifically required to be furnished pursuant to any provision of this Agreement shall examine them to determine whether they are in the form required by this Agreement; provided, however, that the Trust Administrator shall not be responsible for the accuracy or content of any such resolution, certificate, statement, opinion, report, document, order or other instrument.  If any such instrument is found not to conform in any material respect to the requirements of this Agreement, the Trust Administrator shall notify the Certificateholders and the Certificate Insurer of such non-conforming instrument in the event the Trust Administrator, after so requesting, does not receive a satisfactorily corrected instrument.

No provision of this Agreement shall be construed to relieve the Trust Administrator from liability for its own negligent action, its own negligent failure to act or its own willful misconduct; provided, however, that:

(i)

the duties and obligations of the Trust Administrator shall be determined solely by the express provisions of this Agreement, the Trust Administrator shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Agreement, no implied covenants or obligations shall be read into this Agreement against the Trust Administrator and the Trust Administrator may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trust Administrator and conforming to the requirements of this Agreement which it believed in good faith to be genuine and to have been duly executed by the proper authorities respecting any matters arising hereunder;

(ii)

the Trust Administrator shall not be liable for an error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trust Administrator, unless it shall be conclusively determined by a court of competent jurisdiction, such determination no longer subject to appeal, that the Trust Administrator was negligent in ascertaining the pertinent facts;

(iii)

the Trust Administrator shall not be liable with respect to any action taken, suffered or omitted to be taken by it in good faith in accordance with the direction of Holders of Certificates evidencing not less than 25% of the Voting Rights of Certificates relating to the time, method and place of conducting any proceeding for any remedy available to the Trust Administrator, or exercising or omitting to exercise any trust or power conferred upon the Trust Administrator under this Agreement; and

(iv)

The Trust Administrator shall not be accountable, shall have no liability and makes no representation as to any acts or omissions hereunder of the Master Servicer or the Trustee.

Section 9.02.  Certain Matters Affecting the Trust Administrator.  

Except as otherwise provided in Section 9.01:

(i)

the Trust Administrator may request and conclusively rely upon and shall be fully protected in acting or refraining from acting upon any resolution, Officer’s Certificate, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties and the Trust Administrator shall have no responsibility to ascertain or confirm the genuineness of any signature of any such party or parties;

(ii)

the Trust Administrator may consult with counsel, financial advisers or accountants and the advice of any such counsel, financial advisers or accountants and any advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel;

(iii)

the Trust Administrator shall not be liable for any action taken, suffered or omitted by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Agreement;

(iv)

the Trust Administrator shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document, unless requested in writing so to do by Holders of Certificates evidencing not less than 25% of the Voting Rights allocated to each Class of Certificates; provided, however, that if the payment within a reasonable time to the Trust Administrator of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trust Administrator, not reasonably assured to the Trust Administrator by the security afforded to it by the terms of this Agreement, the Trust Administrator may require reasonable indemnity against such expense or liability as a condition to so proceeding.  Nothing in this clause (iv) shall derogate from the obligation of the Master Servicer to observe any applicable law prohibiting disclosure of information regarding the Mortgagors;

(v)

the Trust Administrator may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys or custodian and the Trust Administrator shall not be responsible for any misconduct or negligence on the part of any such agent, attorney or custodian appointed by the Trust Administrator with due care;

(vi)

the Trust Administrator shall not be required to risk or expend its own funds or otherwise incur any financial liability in the performance of any of its duties or in the exercise of any of its rights or powers hereunder if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not assured to it, and none of the provisions contained in this Agreement shall in any event require the Trust Administrator to perform, or be responsible for the manner of performance of, any of the obligations of the Master Servicer under this Agreement, except during such time, if any, as the Trust Administrator shall be the successor to, and be vested with the rights, duties, powers and privileges of, the Master Servicer in accordance with the terms of this Agreement;

(vii)

[reserved];

(viii)

[reserved];

(ix)

the Trust Administrator shall be under no obligation to exercise any of the trusts, rights or powers vested in it by this Agreement or to institute, conduct or defend any litigation hereunder or in relation hereto at the request, order or direction of any of the Certificateholders, pursuant to the provisions of this Agreement, unless such Certificateholders shall have offered to the Trust Administrator reasonable security or indemnity satisfactory to the Trust Administrator against the costs, expenses and liabilities which may be incurred therein or thereby; and

(x)

the Trust Administrator shall have no obligation to appear in, prosecute or defend any legal action that is not incidental to its duties hereunder and which in its opinion may involve it in any expense or liability; provided, however, that the Trust Administrator may in its discretion undertake any such action that it may deem necessary or desirable in respect of this Agreement and the rights and duties of the parties hereto and the interests of the Trustee, the Trust Administrator and the Certificateholders hereunder.  In such event, the legal expenses and costs of such action and any liability resulting therefrom shall be expenses, costs and liabilities of the Trust Fund, and the Trust Administrator shall be entitled to be reimbursed therefor out of the Collection Account.

The Trust Administrator shall have no duty (A) to see to any recording, filing, or depositing of this Agreement or any agreement referred to herein or any financing statement or continuation statement evidencing a security interest, or to see to the maintenance of any such recording or filing or depositing or to any rerecording, refiling or redepositing thereof, (B) to see to the provision of any insurance or (C) to see to the payment or discharge of any tax, assessment, or other governmental charge or any lien or encumbrance of any kind owing with respect to, assessed or levied against, any part of the Trust Fund other than from funds available in the Distribution Account.

Section 9.03.  Trust Administrator Not Liable for Certificates or Mortgage Loans.

The recitals contained herein and in the Certificates shall be taken as the statements of the Depositor or the Transferor, as the case may be, and the Trust Administrator assumes no responsibility for their correctness.  The Trust Administrator makes no representations as to the validity or sufficiency of this Agreement or of the Certificates or of any Mortgage Loan or related document other than with respect to the Trust Administrator’s execution and authentication of the Certificates.  The Trust Administrator shall not be accountable for the use or application by the Depositor or the Master Servicer of any funds paid to the Depositor or the Master Servicer in respect of the Mortgage Loans or deposited in or withdrawn from the Collection Account by the Depositor or the Master Servicer.

Section 9.04.  Trust Administrator May Own Certificates.  

The Trust Administrator in its individual or any other capacity may become the owner or pledgee of Certificates and may transact business with the parties hereto and their Affiliates with the same rights as it would have if it were not the Trust Administrator.

Section 9.05.  Trust Administrator’s Fees and Expenses.  

As compensation for its activities hereunder, the Trust Administrator shall be entitled to retain or withdraw from the Distribution Account an amount equal to the Trust Administrator Compensation.  The Trust Administrator (including in its capacity as Supplemental Interest Trust Trustee and any other capacity as described herein) and any director, officer, employee, agent or “control person” within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange of 1934, as amended (“Control Person”), of the Trust Administrator shall be indemnified by the Trust and held harmless against any loss, liability or expense (including reasonable attorney’s fees) (i) incurred in connection with any claim or legal action relating to (a) this Agreement, (b) the Mortgage Loans or (c) the Certificates, other than any loss, liability or expense incurred by reason of willful misfeasance, bad faith or negligence in the performance of any of the Trust Administrator’s duties hereunder, (ii) incurred in connection with the performance of any of the Trust Administrator’s duties or the exercise of (or failure to exercise) its rights (a) hereunder or (b) under the Cap Agreements, other than any loss, liability or expense incurred by reason of willful misfeasance, bad faith or negligence in the performance of any of the Trust Administrator’s duties hereunder, or (iii) incurred by reason of any action of the Trust Administrator taken at the direction of the Certificateholders, provided that any such loss, liability or expense constitutes an “unanticipated expense incurred by the REMIC” within the meaning of Treasury Regulations Section 1.860G-1(b)(3)(ii).  Such indemnity shall survive the termination of this Agreement or the resignation or removal of the Trust Administrator hereunder.  Without limiting the foregoing, and except for any such expense, disbursement or advance as may arise from the Trust Administrator’s negligence, bad faith or willful misconduct, or which would not be an “unanticipated expense” within the meaning of the second preceding sentence, the Trust Administrator shall be reimbursed by the Trust for all reasonable expenses, disbursements and advances incurred or made by the Trust Administrator in accordance with any of the provisions of this Agreement with respect to:  (A) the reasonable compensation and the expenses and disbursements of its counsel not associated with the closing of the issuance of the Certificates, (B) the reasonable compensation, expenses and disbursements of any accountant, engineer, appraiser or other agent that is not regularly employed by the Trust Administrator, to the extent that the Trust Administrator must engage such Persons to perform acts or services hereunder and (C) printing and engraving expenses in connection with preparing any Definitive Certificates.  The Trust shall fulfill its obligations under this paragraph from amounts on deposit from time to time in the Distribution Account.

Section 9.06.  Eligibility Requirements for Trust Administrator.  

The Trust Administrator hereunder shall at all times be a corporation or association organized and doing business under the laws the United States of America or any state thereof, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least $50,000,000, subject to supervision or examination by federal or state authority and with a credit rating of at least investment grade.  If such corporation or association publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section 9.06 the combined capital and surplus of such corporation or association shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.  In case at any time the Trust Administrator shall cease to be eligible in accordance with the provisions of this Section 9.06, the Trust Administrator shall resign immediately in the manner and with the effect specified in Section 9.07 hereof.  The entity serving as Trust Administrator may have normal banking and trust relationships with the Depositor and its affiliates or the Trustee and its affiliates.

Section 9.07.  Resignation and Removal of Trust Administrator.  

The Trust Administrator may at any time resign by giving written notice of resignation to the Depositor, the Certificate Insurer and the Trustee and each Rating Agency not less than 60 days before the date specified in such notice when, subject to Section 9.08, such resignation is to take effect, and acceptance by a successor trust administrator in accordance with Section 9.08 meeting the qualifications set forth in Section 9.06.  If no successor trust administrator meeting such qualifications shall have been so appointed by the Depositor, the Certificate Insurer or the Trustee and have accepted appointment within 30 days after the giving of such notice of resignation, the resigning Trust Administrator may petition any court of competent jurisdiction for the appointment of a successor trust administrator.

If at any time the Trust Administrator shall cease to be eligible in accordance with the provisions of Section 9.06 hereof and shall fail to resign after written request thereto by the Depositor or the Certificate Insurer, or if at any time the Trust Administrator shall become incapable of acting, or shall be adjudged as bankrupt or insolvent, or a receiver of the Trust Administrator or of its property shall be appointed, or any public officer shall take charge or control of the Trust Administrator or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, or a tax is imposed with respect to the Trust Fund by any state in which the Trust Administrator or the Trust Fund is located and the imposition of such tax would be avoided by the appointment of a different Trust Administrator, then the Depositor or the Trustee may remove the Trust Administrator and appoint a successor trust administrator by written instrument, in triplicate, one copy of which instrument shall be delivered to the Trust Administrator so removed, one copy of which shall be delivered to the Master Servicer and one copy to the successor trust administrator.  If the Master Servicer and the Trust Administrator are the same Person, then at any time the Master Servicer is terminated pursuant to Section 7.01 hereof, the Depositor shall also remove the Trust Administrator as trust administrator hereunder.

The Holders of Certificates entitled to at least 51% of the Voting Rights may at any time remove the Trust Administrator and appoint a successor trust administrator by written instrument or instruments, in triplicate, signed by such Holders or their attorneys-in-fact duly authorized, one complete set of which instruments shall be delivered by the successor Trust Administrator to the Trustee, one complete set to the Trust Administrator so removed and one complete set to the successor so appointed.  Notice of any removal of the Trust Administrator shall be given to each Rating Agency by the successor trust administrator.

Any resignation or removal of the Trust Administrator and appointment of a successor trust administrator pursuant to any of the provisions of this Section 9.07 shall become effective upon acceptance by the successor trust administrator of appointment as provided in Section 9.08 hereof.  If the Trust Administrator and the Master Servicer are the same Person, then at any time the Trust Administrator is removed pursuant to this Section 9.07, the Master Servicer shall likewise be terminated as master servicer hereunder.

The Trust Administrator (i) may not be an Originator, Master Servicer, Servicer, the Depositor or an affiliate of the Depositor unless the Trust Administrator is in an institutional trust department, (ii) must be authorized to exercise corporate trust powers under the laws of its jurisdiction of organization, and (iii) must be rated at least "A/F1" by Fitch, if Fitch is a Rating Agency, or the equivalent rating by S&P or Moody's (or such rating acceptable to Fitch pursuant to a rating confirmation).  If no successor trust administrator shall have been appointed and shall have accepted appointment within 60 days after Wells Fargo Bank, N.A., as Trust Administrator, ceases to be the trust administrator pursuant to this Section 9.07, then the Trustee shall perform the duties of the Trust Administrator pursuant to this Agreement. The Trustee shall notify the Rating Agencies of any change of Trust Administrator.  In such event, the Trustee shall assume all of the rights and obligations of the Trust Administrator hereunder arising thereafter except that the Trustee shall not be (i) liable for losses of the predecessor Trust Administrator or any acts or omissions of the predecessor Trust Administrator hereunder or (ii) deemed to have made any representations and warranties of the Trust Administrator made herein.  The Trustee shall not be accountable for, shall have no liability for and makes no representation as to any acts or omissions hereunder of the Trust Administrator until such time as the Trustee may be required to act as successor Trust Administrator pursuant to this Section 9.07 and thereupon only for the acts or omissions of the Trustee as successor Trust Administrator.

The Trustee or successor trust administrator shall be entitled to be reimbursed from the Master Servicer for all reasonable costs and expenses associated with the transfer of the duties of the Trust Administrator from the predecessor Trust Administrator, including, without limitation, any costs or expenses associated with the complete transfer of all trust administrator data and the completion, correction or manipulation of such trust administrator data as may be required by the Trustee or successor trust administrator to correct any errors or insufficiencies in such trust administrator data or otherwise to enable the Trustee or successor trust administrator to perform the duties of the Trust Administrator properly and effectively.

The Trustee, as successor Trust Administrator, as compensation for its activities hereunder, shall be entitled to retain or withdraw from the Distribution Account an amount equal to the Trust Administrator Compensation.  To the extent such Trust Administrator Compensation is less than the current market rate that the Trustee would charge for providing similar trust administrator services in a similarly structured transaction, as mutually determined by the Trustee and the successor Master Servicer at the time the Trustee becomes the successor Trust Administrator, the successor Master Servicer, out of its own funds, shall pay the Trustee, as successor Trust Administrator, additional compensation in an amount equal to the difference between the Trust Administrator Compensation and such current market rate for such trust administrator services, as separately negotiated by the successor Master Servicer and the Trustee at the time the Trustee becomes the successor Trust Administrator.

Section 9.08.  Successor Trust Administrator.  

Any successor trust administrator appointed as provided in Section 9.07 hereof shall execute, acknowledge and deliver to the Depositor and to its predecessor trust administrator and the Trustee an instrument accepting such appointment hereunder and thereupon the resignation or removal of the predecessor trust administrator shall become effective and such successor trust administrator, without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of its predecessor hereunder, with the like effect as if originally named as trust administrator herein.  The Depositor, the Trustee, the Master Servicer and the predecessor trust administrator shall execute and deliver such instruments and do such other things as may reasonably be required for more fully and certainly vesting and confirming in the successor trust administrator all such rights, powers, duties, and obligations.

No successor trust administrator shall accept appointment as provided in this Section 9.08 unless at the time of such acceptance such successor trust administrator shall be eligible under the provisions of Section 9.06 hereof and its appointment shall not adversely affect the then current rating of the Certificates, as confirmed in writing by each Rating Agency.

Upon acceptance by a successor trust administrator of appointment as provided in this Section 9.08, the Depositor shall mail notice of the succession of such trust administrator hereunder to all Holders of Certificates and the Certificate Insurer.  If the Depositor fails to mail such notice within 10 days after acceptance by the successor trust administrator of appointment, the successor trust administrator shall cause such notice to be mailed at the expense of the Depositor.

Section 9.09.  Merger or Consolidation of Trust Administrator.  

Any corporation or other entity into which the Trust Administrator may be merged or converted or with which it may be consolidated or any corporation or other entity resulting from any merger, conversion or consolidation to which the Trust Administrator shall be a party, or any corporation or other entity succeeding to the business of the Trust Administrator, shall be the successor of the Trust Administrator hereunder, provided that such corporation or other entity shall be eligible under the provisions of Section 9.06 hereof, without the execution or filing of any paper or further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.

Section 9.10.  [Reserved].

Section 9.11.  Tax Matters.  

It is intended that the assets with respect to which each REMIC election is to be made, as set forth in the Preliminary Statement, shall constitute, and that the conduct of matters relating to such assets shall be such as to qualify such assets as, a “real estate mortgage investment conduit” as defined in and in accordance with the REMIC Provisions.  In furtherance of such intention, the Master Servicer covenants and agrees that it shall act as agent (and the Master Servicer is hereby appointed to act as agent) on behalf of each REMIC and that in such capacity it shall:

(a)

prepare, submit to the Trustee for execution, and file, or cause to be prepared and filed, in a timely manner, a U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return (Form 1066 or any successor form adopted by the Internal Revenue Service) and prepare and file or cause to be prepared and filed with the Internal Revenue Service and applicable state or local tax authorities income tax or information returns for each taxable year with respect to such REMIC, containing such information and at the times and in the manner as may be required by the Code or state or local tax laws, regulations, or rules, and furnish or cause to be furnished to Certificateholders the schedules, statements or information at such times and in such manner as may be required thereby, including without limitation, the calculation of any original issue discount using the prepayment assumption identified in the Prospectus Supplement;

(b)

apply for an Employee Identification Number from the Internal Revenue Service via Form SS-4 or other acceptable method for such REMIC and within thirty days of the Closing Date, furnish or cause to be furnished to the Internal Revenue Service, on Form 8811 or as otherwise may be required by the Code, the name, title, address, and telephone number of the person that the holders of the Certificates may contact for tax information relating thereto, together with such additional information as may be required by such Form, and update such information at the time or times in the manner required by the Code;

(c)

make or cause to be made elections that such assets be treated as a REMIC on the federal tax return for its first taxable year (and, if necessary, under applicable state law);

(d)

provide information necessary for the computation of tax imposed on the transfer of a Residual Certificate to a Person that is not a Permitted Transferee described in clauses (i)-(iv) of the definition thereof, or an agent (including a broker, nominee or other middleman) of a non Permitted Transferee (the reasonable cost of computing and furnishing such information may be charged to the Person liable for such tax);

(e)

to the extent that they are under its control, conduct matters relating to such assets at all times that any Certificates are outstanding so as to maintain the status as a REMIC under the REMIC Provisions;

(f)

not knowingly or intentionally take any action or omit to take any action that would cause the termination of the REMIC status;

(g)

not permit the creation of any interests in such REMIC other than the Certificates;

(h)

not receive any amount representing a fee or other compensation for services (except as otherwise permitted by this Agreement);

(i)

receive any income attributable to any asset which is neither a “qualified mortgage” nor a “permitted investment” within the meaning of the REMIC Provisions;

(j)

not receive any contributions to such REMIC after the Startup Day that would be subject to tax under Section 860G(d) of the Code;

(k)

not dispose of any assets of such REMIC at a gain if such disposition would be a “prohibited transaction” within the meaning of Section 860F(a)(2) of the Code;

(l)

pay, from the sources specified in the last paragraph of this Section 9.11, the amount of any federal or state tax, including prohibited transaction taxes as described below, imposed on such REMIC prior to its termination when and as the same shall be due and payable (but such obligation shall not prevent the Master Servicer or any other appropriate Person from contesting any such tax in appropriate proceedings and shall not prevent the Master Servicer from causing the withholding of payment of such tax, if permitted by law, pending the outcome of such proceedings);

(m)

ensure that federal, state or local income tax or information returns shall be signed by the Trustee or such other Person as may be required to sign such returns by the Code or state or local laws, regulations or rules; and

(n)

maintain records relating to such REMIC, including but not limited to the income, expenses, assets and liabilities thereof and the adjusted basis of the assets determined at such intervals as may be required by the Code, as may be necessary to prepare the foregoing returns, schedules, statements or information.

The holder of the largest percentage interest in the Residual Certificates shall act as Tax Matters Person for each of the Class C, Class 1-1P, Class 1-2P, Class 2-1P, and Class 2-2P REMICs and the holder of the largest percentage interest in the Class R Certificates shall act as Tax Matters Person for each remaining REMIC, in each case, within the meaning of Treasury Regulations Section 1.860F-4(d).  The Master Servicer is hereby designated as agent of such Certificateholder for such purpose (or if the Master Servicer is not so permitted, such Holder shall be the Tax Matters Person in accordance with the REMIC Provisions).  In such capacity, the Master Servicer shall, as and when necessary and appropriate, represent the related REMIC in any administrative or judicial proceedings relating to an examination or audit by any governmental taxing authority, request an administrative adjustment as to any taxable year of such REMIC, enter into settlement agreements with any governmental taxing agency, extend any statute of limitations relating to any tax item of such REMIC, and otherwise act on behalf of such REMIC in relation to any tax matter or controversy involving it.

For federal income tax purposes, the Trust Administrator shall treat the Holders of Certificates (other than the Class 1-AIO, Class 2-AIO, Class P, Class C, and Residual Certificates) (the “Carryover Certificates”) as having entered into a notional principal contract with respect to the Holders of the Class C Certificates. Pursuant to each such notional principal contract, the Holder of the Class C Certificates shall be treated as having agreed to pay any interest on a Carryover Certificate to the extent such interest reflects an interest rate greater than the REMIC Maximum Rate, including any Net Rate Carryover, in accordance with the terms of this Agreement. Any payments to the Certificates from amounts deemed received in respect of this notional principal contract shall not be payments with respect to a regular interest in a REMIC within the meaning of Code Section 860G(a)(1).  Thus, each Carryover Certificate shall be treated as representing not only ownership of regular interests in the Master REMIC, but also ownership of an interest in (and with respect to the Class C Certificate, an obligation with respect to) a notional principal contract.  For federal income tax purposes, the Trust Administrator shall treat such notional principal contract as having a value of $10,000 as of the Closing Date.

In order to enable the Master Servicer to perform its duties as set forth herein, the Depositor shall provide, or cause to be provided, to the Master Servicer within ten (10) days after the Closing Date all information or data that the Master Servicer requests in writing and determines to be relevant for tax purposes to the valuations and offering prices of the Certificates, including, without limitation, the price, yield, prepayment assumption and projected cash flows of the Certificates and the Mortgage Loans.  Thereafter, the Depositor shall provide to the Master Servicer promptly upon written request therefor, any such additional information or data that the Master Servicer may, from time to time, reasonably request in order to enable the Master Servicer to perform its duties as set forth herein.  The Depositor hereby indemnifies the Master Servicer for any losses, liabilities, damages, claims or expenses of the Master Servicer arising from any errors or miscalculations of the Master Servicer that result from any failure of the Depositor to provide, or to cause to be provided, accurate information or data to the Master Servicer on a timely basis.

In the event that any tax is imposed on “prohibited transactions” of any REMIC as defined in Section 860F(a)(2) of the Code, on the “net income from foreclosure property” of such REMIC as defined in Section 860G(c) of the Code, on any contribution to such REMIC after the Startup Day pursuant to Section 860G(d) of the Code, or any other tax is imposed, if not paid as otherwise provided for herein, such tax shall be paid by (i) the Master Servicer, the Trustee or the Trust Administrator, respectively, if any such other tax arises out of or results from a breach by the Master Servicer, the Trustee or the Trust Administrator, respectively, of any of its obligations under this Agreement, (ii) the Transferor, if any such tax arises out of or results from the Transferor’s obligation to repurchase a Mortgage Loan pursuant to Section 2.02 or 2.03 or (iii) in all other cases, or in the event that the Trustee, the Trust Administrator, the Master Servicer or the Transferor fails to honor its obligations under the preceding clause (i), (ii) or (iii), any such tax will be paid with amounts otherwise to be distributed to the Certificateholders, as provided in Section 3.10(b).

Section 9.12.  Periodic Filing.

The Master Servicer shall reasonably cooperate with the Depositor to enable the Trust to satisfy its reporting requirements under the Exchange Act.

(a)

(i)

Within 15 days after each Distribution Date (subject to permitted extensions under the Exchange Act), the Trust Administrator shall prepare and file on behalf of the Issuing Entity any Form 10-D required by the Exchange Act, in form and substance as required by the Exchange Act.  The Trust Administrator shall file each Form 10-D with a copy of the related Distribution Date Statement attached thereto.  Any disclosure in addition to the Distribution Date Statement that is required to be included on Form 10-D (“Additional Form 10-D Disclosure”) shall be reported by the parties set forth on Exhibit T hereto to the Depositor and the Trust Administrator and be directed and approved by and at the direction of the Depositor pursuant to the following paragraph, and the Trust Administrator will have no duty or liability for any failure hereunder to determine or prepare any Additional Form 10-D Disclosure, except to the extent of its obligations set forth in the next paragraph.

(ii)

For so long as the Trust is subject to the Exchange Act reporting requirements, within 5 calendar days after the related Distribution Date, (i) certain parties set forth on Exhibit T shall be required to provide to the Trust Administrator and the Depositor, to the extent known by a responsible officer thereof, in EDGAR-compatible format, or in such other format as agreed upon by the Trust Administrator and such party, the form and substance of any Additional Form 10-D Disclosure, if applicable, together with an Additional Disclosure Notification and (ii) the Depositor will approve, as to form and substance, or disapprove, as the case may be, the inclusion of the Additional Form 10-D Disclosure on Form 10-D.  Wells Fargo, in its capacity as the Trust Administrator only,  has no duty under this Agreement to monitor or enforce the performance by the parties listed on Exhibit T of their duties under this paragraph or proactively solicit or procure from such parties any Additional Form 10-D Disclosure information. The Depositor will be responsible for any reasonable fees and expenses assessed or incurred by the Trust Administrator in connection with including any Additional Form 10-D Disclosure on Form 10-D pursuant to this paragraph.

(iii)

After preparing the Form 10-D, the Trust Administrator shall use reasonable best efforts to forward electronically a copy of the Form 10-D to the Depositor and the Master Servicer for review no later than 10 calendar days after the related Distribution Date; provided, the Trust Administrator shall only be required to forward such Form 10-D to the Depositor, where such Form 10-D contains Additional Form 10-D Disclosure.  No later than the 12th calendar day after the Distribution Date, the Depositor shall notify the Trust Administrator in writing (which may be furnished electronically) of any changes to or approval of such Form 10-D.  In the absence of receipt of any written changes or approval, the Trust Administrator shall be entitled to assume that such Form 10-D is in final form and the Trust Administrator may proceed with the process for execution and filing of the Form 10-D. A duly authorized representative of the Master Servicer shall sign each Form 10-D.  If a Form 10-D cannot be filed on time or if a previously filed Form 10-D needs to be amended, the Trust Administrator will follow the procedures set forth in Section 9.12(d)(ii).  Promptly (but no later than one Business Day) after filing with the Commission, the Trust Administrator will make available on its internet website a final executed copy of each Form 10-D filed by the Trust Administrator.  Each party to this Agreement acknowledges that the performance by the Trust Administrator of its duties under this Section 9.12 related to the timely preparation, execution and filing of Form 10-D is contingent upon such parties strictly observing all applicable deadlines in the performance of their duties under this Section 9.12.  The Depositor acknowledges that the timely performance by the Master Servicer and the Trust Administrator of its duties under this Section 9.12(a) related to the timely preparation, execution and filing of Form 10-D is also contingent upon the Servicers, the Custodian and any Servicing Function Participant strictly observing deadlines no later than those set forth in this paragraph that are applicable to the parties to this Agreement in the delivery to the Trust Administrator of any necessary Additional Form 10-D Disclosure pursuant to the related Servicing Agreements, the Custodial Agreement or any other applicable agreement. Neither the Master Servicer nor the Trust Administrator shall have any liability for any loss, expense, damage or claim arising out of or with respect to any failure to properly prepare, execute and/or timely file such Form 10-D, where such failure results from the Trust Administrator’s inability or failure to obtain or receive, on a timely basis, any information from any other party hereto or any Servicer, Custodian or Servicing Function Participant needed to prepare, arrange for execution or file such Form 10-D, not resulting from its own negligence, bad faith or willful misconduct.

(iv)

Form 10-D requires the registrant to indicate (by checking "yes" or "no") that it "(1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days."  The Depositor hereby instructs the Trust Administrator, with respect to each Form 10-D, to check "yes" for each item unless the Trust Administrator has received timely prior written notice from the Depositor that the answer should be "no" for an item.

(b)

(i)

On or before the 90th day after the end of each fiscal year of the Trust or such earlier date as may be required by the Exchange Act (the “10-K Filing Deadline”) (it being understood that the fiscal year for the Trust ends on December 31st of each year), commencing in March 2008, the Trust Administrator shall prepare and file on behalf of the Trust a Form 10-K, in form and substance as required by the Exchange Act.  Each such Form 10-K shall include the following items, in each case to the extent they have been delivered to the Trust Administrator within the applicable time frames set forth in this Agreement and each Servicing Agreement, (A) an annual compliance statement for each Servicer, the Master Servicer, the Trust Administrator and any Servicing Function Participant engaged by any such party (each, together with the Custodian, a “Reporting Servicer”) as described under Section 3.21 of this Agreement and the under the related Servicing Agreements, provided, however, that the Trust Administrator may omit from the Form 10-K any annual compliance statement that the Trust Administrator and the Depositor agree is not required to be filed with such Form 10-K pursuant to Regulation AB; (B)(I) each annual Assessment of Compliance with Servicing Criteria for each Reporting Servicer, as described under Section 3.22(a) of this Agreement and the related Servicing Agreements, and (II) if any Reporting Servicer’s Assessment of Compliance with Servicing Criteria identifies any material instance of noncompliance, disclosure identifying such instance of noncompliance, or if any Reporting Servicer’s Assessment of Compliance with Servicing Criteria is not included as an exhibit to such Form 10-K, disclosure that such report is not included and an explanation why such report is not included, provided, however, that the Trust Administrator may omit from the Form 10-K any Assessment of Compliance or Accountant’s Attestation described in clause (C) below that the Trust Administrator and the Depositor agree is not required to be filed with such Form 10-K pursuant to Regulation AB; (C)(I) the Accountant’s Attestation for each Reporting Servicer, as described under Section 3.22(b) of this Agreement, or the applicable section of any Servicing Agreement, and (II) if any Accountant’s Attestation identifies any material instance of noncompliance, disclosure identifying such instance of noncompliance, or if any such Accountant’s Attestation is not included as an exhibit to such Form 10-K, disclosure that such Accountant’s Attestation is not included and an explanation why such Accountant’s Attestation is not included, and (D) a Sarbanes-Oxley Certification as described in Section 9.12(b)(iv). Any disclosure or information in addition to (A) through (D) above that is required to be included on Form 10-K (“Additional Form 10-K Disclosure”) shall be reported by the parties set forth on Exhibit U hereto to the Depositor and the Trust Administrator and be directed and approved by the Depositor pursuant to the following paragraph, and the Trust Administrator will have no duty or liability for any failure hereunder to determine or prepare any Additional Form 10-K Disclosure, except to the extent of its obligations as set forth in the next paragraph.

(ii)

For so long as the Trust is subject to the Exchange Act reporting requirements, no later than March 10 (with a 5 calendar day cure period, but in no event later than March 15th) of each year, commencing in 2007, (A) certain parties set forth on Exhibit U shall be required to provide to the Trust Administrator and to the Depositor, to the extent known by a responsible officer thereof, in EDGAR-compatible format, or in such other format as agreed upon by the Trust Administrator and such party, the form and substance of any Additional Form 10-K Disclosure as set forth on Exhibit U, if applicable, together with an Additional Disclosure Notification and (B) the Depositor will approve, as to form and substance, or disapprove, as the case may be, the inclusion of the Additional Form 10-K Disclosure on Form 10-K.  Wells Fargo, in its capacity as the Trust Administrator only, has no duty under this Agreement to monitor or enforce the performance by the parties listed on Exhibit U of their duties under this paragraph or proactively solicit or procure from such parties any Additional Form 10-K Disclosure information. The Depositor will be responsible for any reasonable fees and expenses assessed or incurred by the Trust Administrator in connection with including any Additional Form 10-K Disclosure on Form 10-K pursuant to this paragraph.  In order to allow the parties to comply with the requirements of this section, on or before March 1 of each year that the Trust is subject to the Exchange Act reporting requirements, commencing in 2007, the Depositor will provide all parties to the Pooling and Servicing Agreement with a list of (i) each Servicer contemplated under §1108 of Regulation AB, (ii) the Trustee, (iii) each originator contemplated by §1110 of Regulation AB, (iv) significant obligor contemplated by §1112 of Regulation AB, (v) enhancement or support provider contemplated under §§1114 or 1115 or Regulation AB and (vi) any other material parties related to the Trust contemplated by §1101(d)(1) of Regulation AB.

(iii)

After preparing the Form 10-K, the Trust Administrator shall use reasonable best efforts to forward electronically a copy of the Form 10-K to the Depositor no later than March 23rd of the related year.  The Depositor shall use reasonable best efforts to notify the Trust Administrator in writing (which may be furnished electronically) of any changes to or approval of such Form 10-K no later than March 25th of the related year.  In the absence of receipt of any written changes or approval, the Trust Administrator shall be entitled to assume that such Form 10-K is in final form and the Trust Administrator may proceed with the process for execution and filing of the Form 10-K.  A senior officer of the Master Servicer in charge of the master servicing function shall sign the Form 10-K.  If a Form 10-K cannot be filed on time or if a previously filed Form 10-K needs to be amended, the Trust Administrator will follow the procedures set forth in Section 9.12(d)(ii).  Form 10-K requires the registrant to indicate (by checking “yes” or “no”) that it “(1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.”  The Depositor hereby represents to the Trust Administrator that the Depositor has filed all such required reports during the preceding 12 months and that has been subject to such filing requirement for the past 90 days.  The Depositor shall notify the Trust Administrator in writing, no later than March 15th with respect to the filing of a report on Form 10-K, if the answer to either question should be “no.”  The Trust Administrator shall be entitled to rely on such representations in preparing, executing and/or filing any such report.  Promptly (but no later than 1 Business Day) after filing with the Commission, the Trust Administrator will make available on its internet website a final executed copy of each Form 10-K filed by the Trust Administrator.  The parties to this Agreement acknowledge that the performance by each of the Master Servicer and Trust Administrator of its duties under this Section 9.12(b) related to the timely preparation, execution and filing of Form 10-K is contingent upon such parties strictly observing all applicable deadlines in the performance of their duties under this Section 9.12(b), Section 3.21, Section 3.22(a) and Section 3.22(b).  The Depositor acknowledges that the timely performance by the Master Servicer and the Trust Administrator of its duties under this Section 9.12(b) related to the timely preparation, execution and filing of Form 10-K is also contingent upon the Servicers, the Custodian and any Servicing Function Participant strictly observing deadlines no later than those set forth in this paragraph that are applicable to the parties to this Agreement in the delivery to the Trust Administrator of any necessary Additional Form 10-K Disclosure, any annual statement of compliance and any assessment of compliance and attestation pursuant to the related Servicing Agreement or any other applicable agreement. Neither the Master Servicer nor the Trust Administrator shall have any liability for any loss, expense, damage or claim arising out of or with respect to any failure to properly prepare, execute and/or timely file such Form 10-K, where such failure results from the Trust Administrator’s inability or failure to obtain or receive, on a timely basis, any information from any other party hereto needed to prepare, arrange for execution or file such Form 10-K, not resulting from its own negligence, bad faith or willful misconduct.

(iv)

Each Form 10-K shall include the “Sarbanes-Oxley Certification”, exactly as set forth in Exhibit N attached hereto, required to be included therewith pursuant to the Sarbanes-Oxley Act.  The Depositor, the Master Servicer and the Trust Administrator shall provide, and each such party shall cause any Servicing Function Participant engaged by it to provide, to the Person who signs the Sarbanes-Oxley Certification (the “Certifying Person”), by March 10 (with a 5 calendar day cure period) of each year in which the Trust is subject to the reporting requirements of the Exchange Act and otherwise within a reasonable period of time upon request, a certification (each, a “Back-Up Certification”), in the form attached hereto as Exhibit U, upon which the Certifying Person, the entity for which the Certifying Person acts as an officer, and such entity’s officers, directors and Affiliates (collectively with the Certifying Person, “Certification Parties”) can reasonably rely.  The senior officer of the Master Servicer in charge of the master servicing function shall serve as the Certifying Person on behalf of the Trust.  Such officer of the Certifying Person can be contacted by e-mail at cts.sec.notifications@wellsfargo.com or by facsimile at 410-715-2380. In the event any such party or any Servicing Function Participant engaged by the parties is terminated or resigns pursuant to the terms of this Agreement, or any other applicable agreement, as the case may be, such party shall provide a Back-Up Certification to the Certifying Person pursuant to this Section 9.12(b)(iv) with respect to the period of time it was subject to this Agreement or any applicable sub-servicing agreement, as the case may be.

Notwithstanding the foregoing, (i) the Master Servicer and the Trust Administrator shall not be required to deliver a Back-Up Certification to each other if both are the same Person and the Master Servicer is the Certifying Person and (ii) the Master Servicer shall not be obligated to sign the Sarbanes-Oxley Certification in the event that it does not receive any Back-Up Certification required to be furnished to it pursuant to this section or any Servicing Agreement.

(c)

(i)

Within four (4) Business Days after the occurrence of an event requiring disclosure on Form 8-K (each such event, a “Reportable Event”), if requested by the Depositor, and to the extent it receives the Form 8-K Disclosure Information described below, the Trust Administrator shall prepare and file on behalf of the Trust any Form 8-K, as required by the Exchange Act, provided that the Depositor shall file the initial Form 8-K in connection with the issuance of the Certificates.  Any disclosure or information related to a Reportable Event or that is otherwise required to be included on Form 8-K other than the initial Form 8-K (“Form 8-K Disclosure Information”) shall be reported by the parties set forth on Exhibit S hereto to the Depositor and the Trust Administrator and be directed and approved by the Depositor pursuant to the following paragraph, and the Trust Administrator will have no duty or liability for any failure hereunder to determine or prepare any Form 8-K Disclosure Information or any Form 8-K, except to the extent of its obligations set forth in the next paragraph.

(ii)

For so long as the Trust is subject to the Exchange Act reporting requirements, no later than the close of business (New York time) on the 2nd Business Day after the occurrence of a Reportable Event (i) the parties specified on Exhibit V shall be required to provide to the Trust Administrator and the Depositor, to the extent known by a responsible officer thereof, in EDGAR-compatible format, or in such other format as agreed upon by the Trust Administrator and such party, the form and substance of any Form 8-K Disclosure Information, if applicable, together with an Additional Disclosure Notification and (ii) the Depositor will approve, as to form and substance, or disapprove, as the case may be, the inclusion of the Form 8-K Disclosure Information on the Form 8-K.  The Depositor will be responsible for any reasonable fees and expenses assessed or incurred by the Trust Administrator in connection with including any Form 8-K Disclosure Information on Form 8-K pursuant to this paragraph.

(iii)

After preparing the Form 8-K, the Trust Administrator shall use reasonable best efforts to forward electronically a copy of the Form 8-K to the Depositor no later than Noon New York City time on the third Business Day after the Reportable Event. The Depositor shall use reasonable best efforts to notify the Trust Administrator in writing (which may be furnished electronically) of any changes to or approval of such Form 8-K no later than the close of business on the third Business Day after the Reportable Event.  In the absence of receipt of any written changes or approval, the Trust Administrator shall be entitled to assume that such Form 8-K is in final form and the Trust Administrator may proceed with the process for execution and filing of the Form 8-K.  A duly authorized representative of the Master Servicer shall sign each Form 8-K.  If a Form 8-K cannot be filed on time or if a previously filed Form 8-K needs to be amended, the Trust Administrator will follow the procedures set forth in Section 9.12(d)(ii).  Promptly (but no later than one Business Day) after filing with the Commission, the Trust Administrator will make available on its internet website a final executed copy of each Form 8-K filed by it.  The parties to this Agreement acknowledge that the performance by each of the Master Servicer and the Trust Administrator of its duties under this Section 9.12 related to the timely preparation, execution and filing of Form 8-K is contingent upon such parties strictly observing all applicable deadlines in the performance of their duties under this Section 9.12.  The Depositor acknowledges that the timely performance by the Master Servicer and the Trust Administrator of its duties under this Section 9.12(c) related to the timely preparation, execution and filing of Form 8-K is also contingent upon the Servicers, the Custodian and any Servicing Function Participant strictly observing deadlines no later than those set forth in this paragraph that are applicable to the parties to this Agreement in the delivery to the Trust Administrator of any necessary Form 8-K Disclosure Information pursuant to the related Servicing Agreements or any other applicable agreement. Neither the Master Servicer nor the Trust Administrator shall have any liability for any loss, expense, damage, claim arising out of or with respect to any failure to properly prepare, execute and/or timely file such Form 8-K, where such failure results from the Trust Administrator’s inability or failure to obtain or receive, on a timely basis, any information from any other party hereto or any Servicer, Custodian or Servicing Function Participant needed to prepare, arrange for execution or file such Form 8-K, not resulting from its own negligence, bad faith or willful misconduct.

(d)

(i)

On or prior to January 30 of the first year in which the Trust Administrator is able to do so under applicable law, the Trust Administrator shall prepare and file a Form 15 Suspension Notification relating to the automatic suspension of reporting in respect of the Issuing Entity under the Exchange Act.

(ii)

In the event that the Trust Administrator is unable to timely file with the Commission all or any required portion of any Form 8-K, Form 10-D or Form 10-K required to be filed by this Agreement because required disclosure information was either not delivered to it or delivered to it after the delivery deadlines set forth in this Agreement or for any other reason, the Trust Administrator will promptly notify the Depositor.  In the case of Form 10-D and Form 10-K, the parties to this Agreement will cooperate to prepare and file a Form 12b-25 and a Form 10-D/A and Form 10-K/A as applicable, pursuant to Rule 12b-25 of the Exchange Act.  In the case of Form 8-K, the Trust Administrator will, upon receipt of all required Form 8-K Disclosure Information and upon the approval and direction of the Depositor, include such disclosure information on the next Form 10-D.  In the event that any previously filed Form 8-K, Form 10-D or Form 10-K needs to be amended in connection with any Additional Form 10-D Disclosure (other than, in the case of Form 10-D, for the purpose of restating any Distribution Date Statement), Additional Form 10-K Disclosure or Form 8-K Disclosure Information, the Trust Administrator will electronically notify the Depositor and such other parties to the transaction as are affected by such amendment, and such parties will cooperate to prepare any necessary 8-K/A, Form 10-D/A or Form 10-K/A; provided, the Trust Administrator will only be required to notify the Depositor of an amendment to any Form 10-D where such amendment contains Additional Form 10-D Disclosure.  Any Form 15, Form 12b-25 or any amendment to Form 8-K, Form 10-D or Form 10-K shall be signed by a duly authorized officer (or in the case of a Form 10-K a senior officer) of the Master Servicer.  The parties to this Agreement acknowledge that the performance by each of the Master Servicer and Trust Administrator of its duties under this Section 9.12(d) related to the timely preparation, execution and filing of Form 15, a Form 12b-25 or any amendment to Form 8-K, Form 10-D or Form 10-K is contingent upon each such party performing its duties under this Section.  Neither the Master Servicer nor the Trust Administrator shall have any liability for any loss, expense, damage, claim arising out of or with respect to any failure to properly prepare, execute  and/or timely file any such Form 15, Form 12b-25 or any amendment to Forms 8-K, Form 10-D or Form 10-K, where such failure results from the Trust Administrator’s inability or failure to obtain or receive, on a timely basis, any information from any other party hereto or any servicer, the Custodian, or any Servicing Function Participant needed to prepare, arrange for execution or file such Form 15, Form 12b-25 or any amendment to Forms 8-K, Form 10-D or Form 10-K, not resulting from its own negligence, bad faith or willful misconduct.

ARTICLE X

TERMINATION

Section 10.01.  Termination upon Liquidation or Purchase of Mortgage Loans

(a)

Subject to Section 10.02, the respective obligations and responsibilities under this Agreement of the Depositor, the Master Servicer, the Transferor, the Trustee and the Trust Administrator (other than the indemnification obligations of the Master Servicer pursuant to Section 6.03 and the obligation of the Master Servicer to make remittances to the Trust Administrator and of the Trust Administrator to make payments in respect of the Classes of Group 1 Certificates and to the Certificate Insurer as hereinafter set forth) shall terminate upon payment to the Group 1 Certificateholders and the Certificate Insurer of all amounts required to be distributed to them and the deposit of all amounts held by or on behalf of the Trust Administrator and required hereunder to be so paid or deposited on the Distribution Date coinciding with or following the earlier to occur of (i) the purchase by the Group 1 Auction Purchaser (as defined below) or the Master Servicer on a servicing retained basis of all Group 1 Mortgage Loans and each REO Property remaining in the Middle REMIC 1 (the “Group 1 Trust Collateral”) and (ii) the final payment or other liquidation (or any advance with respect thereto) of the last Group 1 Mortgage Loan or REO Property remaining in the Middle REMIC 1; provided, however, that in no event shall the trust created hereby continue beyond the earlier of (a) the expiration of 21 years from the death of the last survivor of the descendants of Joseph P. Kennedy, the late ambassador of the United States to the Court of St. James, living on the date hereof or (b) the Latest Possible Maturity Date as defined in the Preliminary Statement.  

(b)

On any date on which the aggregate Principal Balance of the Group 1 Mortgage Loans and each REO Property remaining in the Trust Fund on such date is reduced to less than 10% of the aggregate Principal Balance of the Group 1  Mortgage Loans as of the Cut-off Date (any such date, a “Group 1 Auction Date”), the Group 1 Auction Initiator may direct the Trust Administrator to solicit bids for the Trust Collateral from at least three entities, at least two of which are regular purchasers and/or sellers in the secondary market of residential whole mortgage loans similar to the Mortgage Loans.  If the Trust Administrator receives at least three bids for the Group 1 Trust Collateral, and one of such bids is equal to or greater than the Principal Balance of the Group 1 Mortgage Loans and the appraised value of any REO Properties, such appraisal to be conducted by an Independent appraiser mutually agreed upon by the Master Servicer, the Certificate Insurer and the Trust Administrator in their reasonable discretion, plus accrued and unpaid interest thereon at the weighted average of the Mortgage Rates through the end of the Due Period preceding the final Distribution Date, plus Servicing Advances, any unpaid Servicing Fees allocable to such Group 1 Mortgage Loans and REO Properties, any accrued and unpaid Net Rate Carryover then remaining unpaid or which is due to the exercise of such option (collectively, the “Par Value”), the Trust Administrator shall sell the Group 1 Trust Collateral to the highest bidder (the “Group 1 Auction Purchaser”) at the price offered by the Group 1 Auction Purchaser (the “Group 1 Auction Sale Price”); provided, however, such Group 1 Auction Sale may only occur (i) if the Group 1 Auction Sale Price is sufficient to pay (A) all interest accrued on, as well as amounts necessary to retire the principal balance of, each class of notes issued pursuant to the Indenture and any remaining amounts owed to the trustee under the Indenture and the NIMS Insurer on the date such notes are retired and (B) any remaining amounts owed to the Certificate Insurer, the Master Servicer and the Trust Administrator, including without limitation the costs incurred by the Trust Administrator in conducting such auction and any previous auction, (ii) if the fair market value of the Group 1 Mortgage Loans and REO Properties determined as described above is at least equal to the Principal Balance of the Group 1 Mortgage Loans (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) and the appraised value of the REO Properties and (iii) with the consent of the Certificate Insurer if a payment would be required under the Certificate Insurance Policy or if amounts due to the Certificate Insurer would remain unreimbursed.  If the Trust Administrator receives less than three bids, or does not receive any bid that is equal to or greater than the Par Value, the Group 1 Auction Initiator may direct the Trust Administrator, on each six-month anniversary of the initial Group 1 Auction Date on which the Group 1 Mortgage Loans remain outstanding, to repeat these auction procedures until the date on which the Trust Administrator receives a bid that is equal to or greater than the Par Value, and sells the Group 1 Trust Collateral to the Group 1 Auction Purchaser at the Group 1 Auction Sale Price.  The Trust Administrator shall give notice to the Rating Agencies and each Servicer that is servicing any of the Group 1 Mortgage Loans of the sale of the Trust Collateral pursuant to this Section 10.01 (a “Group 1 Auction Sale”) and of the Group 1 Auction Date.

(c)

If a Majority in Interest of the Class 1-C Certificateholders, as Group 1 Auction Initiator, has not exercised its rights pursuant to Section 10.01(b) to initiate an auction of the Group 1 Mortgage Loans on any Group 1 Auction Date, the Master Servicer shall have the right to purchase the Group 1 Trust Collateral no later than the Determination Date in the month immediately preceding the month in which occurs the Distribution Date on which the Group 1 Certificates will be retired; provided, however, that the Master Servicer may elect to purchase the Group 1 Trust Collateral only if the aggregate Principal Balance of the Group 1 Mortgage Loans and each REO Property remaining in the Trust Fund at the time of such election is reduced to less than 10% of the aggregate Principal Balance of the Group 1 Mortgage Loans as of the Cut-off Date.

Subject to Section 3.10 hereof, the purchase by the Master Servicer of all Group 1 Mortgage Loans and each REO Property remaining in the Middle Remic 1 shall be at a price (the “Group 1 Termination Price”) equal to the greater of (i) the Principal Balance of the Group 1 Mortgage Loans and the appraised value of any REO Properties, such appraisal to be conducted by an Independent appraiser mutually agreed upon by the Master Servicer and the Trust Administrator in their reasonable discretion and (ii) the fair market value of all of the assets of the Middle REMIC 1 (as determined by the Master Servicer and the Trust Administrator, as of the close of business on the third Business Day next preceding the date upon which notice of any such termination is furnished to Group 1 Certificateholders pursuant to Section 10.01(d)) in each case, plus accrued and unpaid interest thereon at the weighted average of the Mortgage Rates through the end of the Due Period preceding the final Distribution Date, plus Servicing Advances, any unpaid Servicing Fees allocable to such Group 1 Mortgage Loans and REO Properties and any accrued and unpaid Net Rate Carryover; provided, however, such option may only be exercised (i) if the Group 1 Termination Price is sufficient to pay (A) all interest accrued on, as well as amounts necessary to retire the principal balance of, each class of notes issued pursuant to the Indenture and any remaining amounts owed to the trustee under the Indenture and the NIMS Insurer on the date such notes are retired and (B) any remaining amounts owed to the Certificate Insurer, (ii) if the fair market value of the Group 1 Mortgage Loans and REO Properties determined as described above is at least equal to the Principal Balance of the Group 1 Mortgage Loans (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) and the appraised value of the REO Properties and (iii) with the consent of the Certificate Insurer if a payment would be required under the Certificate Insurance Policy or if amounts due to the Certificate Insurer would remain unreimbursed.

By acceptance of the Group 1 Residual Certificates, the Holder of the Group 1 Residual Certificates agrees for so long as any notes insured by the NIMS Insurer and secured by all or a portion of the Class 1-C, Class 1-P, Class 1-RX or Class 1-R Certificates are outstanding, in connection with any termination hereunder, to assign and transfer any amounts in excess of par, and to the extent received in respect of such termination, to pay any such amounts to the Holders of the Class 1-C Certificates.

(d)

Notice of the liquidation of the Group 1 Certificates shall be given promptly by the Trust Administrator by letter to the Group 1 Certificateholders, the Certificate Insurer, the NIMS Insurer and the Trustee mailed (a) in the event such notice is given in connection with the purchase of the Group 1 Mortgage Loans and each REO Property by the Master Servicer, not earlier than the 10th day and not later than the 20th day of the month next preceding the month of the final distribution on the Group 1 Certificates or (b) otherwise during the month of such final distribution on or before the Determination Date in such month, in each case specifying (i) the Distribution Date upon which the portion of the Trust Fund related to Loan Group 1 will terminate and the final payment in respect of the Certificates will be made upon presentation and surrender of the related Certificates at the office of the Trust Administrator therein designated, (ii) the amount of any such final payment, (iii) that no interest shall accrue in respect of the Middle REMIC 1 Regular Interests or the Group 1 Certificates from and after the Accrual Period relating to the final Distribution Date therefor and (iv) that the Record Date otherwise applicable to such Distribution Date is not applicable, payments being made only upon presentation and surrender of the Group 1 Certificates at the office of the Trust Administrator.

In the event such notice is given in connection with the purchase of all of the Group 1 Mortgage Loans and each REO Property remaining in the Middle REMIC 1 by the Master Servicer, the Master Servicer shall deliver to the Trust Administrator for deposit in the Distribution Account not later than the last Business Day of the month next preceding the month of the final distribution on the Group 1 Certificates an amount in immediately available funds equal to the Group 1 Termination Price.  The Trust Administrator shall remit to the Master Servicer from such funds deposited in the Distribution Account (i) any amounts which the Master Servicer would be permitted to withdraw and retain from the Collection Account pursuant to Section 3.10 and (ii) any other amounts otherwise payable by the Trust Administrator to the Master Servicer from amounts on deposit in the Distribution Account pursuant to the terms of this Agreement, in each case prior to making any final distributions pursuant to Section 4.02.  Upon certification to the Trust Administrator by the Master Servicer of the making of such final deposit and of the delivery of the Certificate Insurance Policy to the Certificate Insurer for cancellation, the Trustee (or the Custodian on its behalf) shall promptly release to the Master Servicer the Mortgage Files for the remaining Group 1 Mortgage Loans, and the Trustee (or, as applicable, the Custodian on its behalf) shall execute all assignments, endorsements and other instruments necessary to effectuate such transfer.

In the event such notice is given in connection with the purchase of the Trust Collateral by the Group 1 Auction Purchaser, the Group 1 Auction Purchaser shall deliver to the Trust Administrator for deposit in the Distribution Account not later than the last Business Day of the month next preceding the month of the final distribution on the Group 1 Certificates an amount in immediately available funds equal to the Group 1 Auction Sale Price.  Upon the making of such final deposit and certification to the Trust Administrator by the Group 1 Auction Purchaser of the delivery of the Certificate Insurance Policy to the Certificate Insurer for cancellation, the Trust Administrator shall promptly release to the Group 1 Auction Purchaser the Mortgage Files for the remaining Group 1 Mortgage Loans, and the Trust Administrator shall execute all assignments, endorsements and other instruments necessary to effectuate such transfer.

(e)

Upon presentation of the Group 1 Certificates by the Group 1 Certificateholders on the final Distribution Date, the Trust Administrator shall distribute to each Certificateholder so presenting and surrendering its Group 1 Certificates the amount otherwise distributable on such Distribution Date in accordance with Section 4.02 in respect of the Group 1 Certificates so presented and surrendered.  Any funds not distributed to any Holder or Holders of Group 1 Certificates being retired on such Distribution Date because of the failure of such Holder or Holders to tender their Group 1 Certificates shall, on such date, be set aside and held in trust and credited to the account of the appropriate non-tendering Holder or Holders.  If any Group 1 Certificates as to which notice has been given pursuant to this Section 10.01 shall not have been surrendered for cancellation within six months after the time specified in such notice, the Trust Administrator shall mail a second notice to the remaining non-tendering Group 1 Certificateholders to surrender their Group 1 Certificates for cancellation in order to receive the final distribution with respect thereto.  If within one year after the second notice all such Group 1 Certificates shall not have been surrendered for cancellation, the Trust Administrator shall, directly or through an agent, mail a final notice to the remaining non-tendering Group 1 Certificateholders concerning surrender of their Group 1 Certificates.  The costs and expenses of maintaining the funds in trust and of contacting such Group 1 Certificateholders shall be paid out of the assets remaining in the Trust Fund.  If within one year after the final notice any such Group 1 Certificates shall not have been surrendered for cancellation, the Trust Administrator shall pay to UBS Securities LLC, all such amounts, and all rights of non-tendering Group 1 Certificateholders in or to such amounts shall thereupon cease hereunder, under the related Group 1 Certificates and, if applicable, under the Certificate Insurance Policy.  No interest shall accrue or be payable to any Certificateholder on any amount held in trust by the Trust Administrator as a result of such Certificateholder’s failure to surrender its Group 1 Certificate(s) for final payment thereof in accordance with this Section 10.01.  Any such amounts held in trust by the Trust Administrator shall be held in an Eligible Account and the Trust Administrator may direct any depository institution maintaining such account to invest the funds in one or more Permitted Investments.  All income and gain realized from the investment of funds deposited in such accounts held in trust by the Trust Administrator shall be for the benefit of the Trust Administrator; provided, however, that the Trust Administrator shall deposit in such account the amount of any loss of principal incurred in respect of any such Permitted Investment made with funds in such accounts immediately upon the realization of such loss.

Immediately following the deposit of funds in trust hereunder in respect of the Group 1 Certificates, the portion of the Trust Fund related to Loan Group 1 shall terminate.

Section 10.02.  Additional Termination Requirements.  

(a)

In the event that the Group 1 Auction Purchaser or the Master Servicer purchases the Group 1 Trust Collateral, or the final payment on or other liquidation of the last Group 1 Mortgage Loan or REO Property remaining in the Middle REMIC 1 occurs pursuant to Section 10.01, the Trust Fund shall be terminated in accordance with the following additional requirements, unless the Trust Administrator and the Master Servicer have received an Opinion of Counsel, which Opinion of Counsel shall be at the expense of the Master Servicer (or in connection with a termination resulting from the final payment on or other liquidation of the last Group 1 Mortgage Loan or REO Property remaining in the Middle REMIC 1, which Opinion of Counsel shall be at the expense of the person seeking nonadherence to the following additional requirements but which in no event shall be at the expense of the Trust Fund or, unless it is the person seeking nonadherence to the following additional requirements, the Servicer or the Trust Administrator), to the effect that the failure of the Middle REMIC 1 to comply with such additional requirements of this Section 10.02 will not (A) result in the imposition on the Trust Fund of taxes on “prohibited transactions,” as described in Section 860F of the Code, or (B) cause any REMIC formed hereby to fail to qualify as a REMIC at any time that any Certificate is outstanding:

(i)

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

(ii)

If the Middle REMIC 1 is being terminated in connection with a purchase pursuant to Section 10.01(a)(i), during such 90-day liquidation period and at or prior to the time of making of the final payment on the Group 1 Certificates, the Trust Administrator shall sell all of the assets of the Middle REMIC 1 to the Group 1 Auction Purchaser or Master Servicer, as applicable, for cash; and

(iii)

At the time of the making of the final payment on the Group 1 Certificates, the Trust Administrator shall distribute or credit, or cause to be distributed or credited, to the Holders of the Group 1 Residual Certificates all cash on hand in the Trust Fund (other than cash retained to meet claims), and the Trust Fund shall terminate at that time.

(b)

At the expense of the Master Servicer, the Depositor shall prepare or cause to be prepared the documentation required in connection with the adoption of a plan of liquidation of each REMIC pursuant to this Section 10.02.

(c)

By their acceptance of Group 1 Certificates, the Holders thereof hereby agree to authorize the Trust Administrator to specify the 90-day liquidation period for each REMIC, which authorization shall be binding upon all successor Group 1 Certificateholders.

Section 10.03.  Termination upon Liquidation or Purchase of Mortgage Loans

(a)

Subject to Section 10.04, the respective obligations and responsibilities under this Agreement of the Depositor, the Master Servicer, the Transferor, the Trustee and the Trust Administrator (other than the indemnification obligations of the Master Servicer pursuant to Section 6.03 and the obligation of the Master Servicer to make remittances to the Trust Administrator and of the Trust Administrator to make payments in respect of the Classes of Group 2 Certificates and to the Certificate Insurer as hereinafter set forth) shall terminate upon payment to the Group 2 Certificateholders and the Certificate Insurer of all amounts required to be distributed to them and the deposit of all amounts held by or on behalf of the Trust Administrator and required hereunder to be so paid or deposited on the Distribution Date coinciding with or following the earlier to occur of (i) the purchase by the Group 2 Auction Purchaser (as defined below) or the Master Servicer on a servicing retained basis of all Group 2 Mortgage Loans and each REO Property remaining in the Middle REMIC 2 (the “Group 2 Trust Collateral”) and (ii) the final payment or other liquidation (or any advance with respect thereto) of the last Group 2 Mortgage Loan or REO Property remaining in the Middle REMIC 2; provided, however, that in no event shall the trust created hereby continue beyond the earlier of (a) the expiration of 21 years from the death of the last survivor of the descendants of Joseph P. Kennedy, the late ambassador of the United States to the Court of St. James, living on the date hereof or (b) the Latest Possible Maturity Date as defined in the Preliminary Statement.  

(b)

On any date on which the aggregate Principal Balance of the Group 2 Mortgage Loans and each REO Property remaining in the Trust Fund on such date is reduced to less than 10% of the aggregate Principal Balance of the Group 2  Mortgage Loans as of the Cut-off Date (any such date, a “Group 2 Auction Date”), the Group 2 Auction Initiator may direct the Trust Administrator to solicit bids for the Trust Collateral from at least three entities, at least two of which are regular purchasers and/or sellers in the secondary market of residential whole mortgage loans similar to the Mortgage Loans.  If the Trust Administrator receives at least three bids for the Group 2 Trust Collateral, and one of such bids is equal to or greater than the Principal Balance of the Group 2 Mortgage Loans and the appraised value of any REO Properties, such appraisal to be conducted by an Independent appraiser selected by the Group 2 Auction Initiator and mutually agreed upon by the Master Servicer, the Certificate Insurer and the Trust Administrator in their reasonable discretion, plus accrued and unpaid interest thereon at the weighted average of the Mortgage Rates through the end of the Due Period preceding the final Distribution Date, plus Servicing Advances, any unpaid Servicing Fees allocable to such Group 2 Mortgage Loans and REO Properties, any accrued and unpaid Net Rate Carryover then remaining unpaid or which is due to the exercise of such option (collectively, the “Par Value”), the Trust Administrator shall sell the Group 2 Trust Collateral to the highest bidder (the “Group 2 Auction Purchaser”) at the price offered by the Group 2 Auction Purchaser (the “Group 2 Auction Sale Price”); provided, however, such Group 2 Auction Sale may only occur (i) if the Group 2 Auction Sale Price is sufficient to pay (A) all interest accrued on, as well as amounts necessary to retire the principal balance of, each class of notes issued pursuant to the Indenture and any remaining amounts owed to the trustee under the Indenture and the NIMS Insurer on the date such notes are retired and (B) any remaining amounts owed to the Certificate Insurer, the Master Servicer and the Trust Administrator, including without limitation the costs incurred by the Trust Administrator in conducting such auction and any previous auction, (ii) if the fair market value of the Group 2 Mortgage Loans and REO Properties determined as described above is at least equal to the Principal Balance of the Group 2 Mortgage Loans (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) and the appraised value of the REO Properties and (iii) with the consent of the Certificate Insurer if a payment would be required under the Certificate Insurance Policy or if amounts due to the Certificate Insurer would remain unreimbursed.  If the Trust Administrator receives less than three bids, or does not receive any bid that is equal to or greater than the Par Value, the Group 2 Auction Initiator may direct the Trust Administrator, on each six-month anniversary of the initial Group 2 Auction Date on which the Group 2 Mortgage Loans remain outstanding, to repeat these auction procedures until the date on which the Trust Administrator receives a bid that is equal to or greater than the Par Value, and sells the Group 2 Trust Collateral to the Group 2 Auction Purchaser at the Group 2 Auction Sale Price.  The Trust Administrator shall give notice to the Rating Agencies and each Servicer that is servicing any of the Group 2 Mortgage Loans of the sale of the Trust Collateral pursuant to this Section 10.03 (a “Group 2 Auction Sale”) and of the Group 2 Auction Date.

(c)

If a Majority in Interest of the Class 2-C Certificateholders, as Group 2 Auction Initiator, has not exercised its rights pursuant to Section 10.03(b) to initiate an auction of the Group 2 Mortgage Loans on any Group 2 Auction Date, the Master Servicer shall have the right to purchase the Group 2 Trust Collateral no later than the Determination Date in the month immediately preceding the month in which occurs the Distribution Date on which the Group 2 Certificates will be retired; provided, however, that the Master Servicer may elect to purchase the Group 2 Trust Collateral only if the aggregate Principal Balance of the Group 2 Mortgage Loans and each REO Property remaining in the Trust Fund at the time of such election is reduced to less than 10% of the aggregate Principal Balance of the Group 2 Mortgage Loans as of the Cut-off Date.

Subject to Section 3.10 hereof, the purchase by the Master Servicer of all Group 2 Mortgage Loans and each REO Property remaining in the Middle REMIC 2 shall be at a price (the “Group 2 Termination Price”) equal to the greater of (i) the Principal Balance of the Group 2 Mortgage Loans and the appraised value of any REO Properties, such appraisal to be conducted by an Independent appraiser selected by the Group 2 Auction Initiator and mutually agreed upon by the Master Servicer and the Trust Administrator in their reasonable discretion and (ii) the fair market value of all of the assets of the Middle REMIC 2 (as determined by the Master Servicer and the Trust Administrator, as of the close of business on the third Business Day next preceding the date upon which notice of any such termination is furnished to Group 2 Certificateholders pursuant to Section 10.03(d)) in each case, plus accrued and unpaid interest thereon at the weighted average of the Mortgage Rates through the end of the Due Period preceding the final Distribution Date, plus Servicing Advances, any unpaid Servicing Fees allocable to such Group 2 Mortgage Loans and REO Properties and any accrued and unpaid Net Rate Carryover; provided, however, such option may only be exercised (i) if the Group 2 Termination Price is sufficient to pay (A) all interest accrued on, as well as amounts necessary to retire the principal balance of, each class of notes issued pursuant to the Indenture and any remaining amounts owed to the trustee under the Indenture and the NIMS Insurer on the date such notes are retired and (B) any remaining amounts owed to the Certificate Insurer, (ii) if the fair market value of the Group 2 Mortgage Loans and REO Properties determined as described above is at least equal to the Principal Balance of the Group 2 Mortgage Loans (after giving effect to scheduled payments of principal due during the related Due Period, to the extent received or advanced, and unscheduled collections of principal received during the related Prepayment Period) and the appraised value of the REO Properties and (iii) with the consent of the Certificate Insurer if a payment would be required under the Certificate Insurance Policy or if amounts due to the Certificate Insurer would remain unreimbursed.

By acceptance of the Group 2 Residual Certificates, the Holder of the Group 2 Residual Certificates agrees for so long as any notes insured by the NIMS Insurer and secured by all or a portion of the Class 2-C, Class 2-P, Class 2-RX or Class 2-R Certificates are outstanding, in connection with any termination hereunder, to assign and transfer any amounts in excess of par, and to the extent received in respect of such termination, to pay any such amounts to the Holders of the Class 2-C Certificates.

(d)

Notice of the liquidation of the Group 2 Certificates shall be given promptly by the Trust Administrator by letter to the Group 2 Certificateholders, the Certificate Insurer, the NIMS Insurer and the Trustee mailed (a) in the event such notice is given in connection with the purchase of the Group 2 Mortgage Loans and each REO Property by the Master Servicer, not earlier than the 10th day and not later than the 20th day of the month next preceding the month of the final distribution on the Group 2 Certificates or (b) otherwise during the month of such final distribution on or before the Determination Date in such month, in each case specifying (i) the Distribution Date upon which the portion of the Trust Fund related to Loan Group 2 will terminate and the final payment in respect of the Certificates will be made upon presentation and surrender of the related Certificates at the office of the Trust Administrator therein designated, (ii) the amount of any such final payment, (iii) that no interest shall accrue in respect of the Middle REMIC 2 Regular Interests or the Group 2 Certificates from and after the Accrual Period relating to the final Distribution Date therefor and (iv) that the Record Date otherwise applicable to such Distribution Date is not applicable, payments being made only upon presentation and surrender of the Group 2 Certificates at the office of the Trust Administrator.

In the event such notice is given in connection with the purchase of all of the Group 2 Mortgage Loans and each REO Property remaining in Middle REMIC 2 by the Master Servicer, the Master Servicer shall deliver to the Trust Administrator for deposit in the Distribution Account not later than the last Business Day of the month next preceding the month of the final distribution on the Group 2 Certificates an amount in immediately available funds equal to the Group 2 Termination Price.  The Trust Administrator shall remit to the Master Servicer from such funds deposited in the Distribution Account (i) any amounts which the Master Servicer would be permitted to withdraw and retain from the Collection Account pursuant to Section 3.10 and (ii) any other amounts otherwise payable by the Trust Administrator to the Master Servicer from amounts on deposit in the Distribution Account pursuant to the terms of this Agreement, in each case prior to making any final distributions pursuant to Section 4.02.  Upon certification to the Trust Administrator by the Master Servicer of the making of such final deposit and of the delivery of the Certificate Insurance Policy to the Certificate Insurer for cancellation, the Trustee (or the Custodian on its behalf) shall promptly release to the Master Servicer the Mortgage Files for the remaining Group 2 Mortgage Loans, and the Trustee (or, as applicable, the Custodian on its behalf) shall execute all assignments, endorsements and other instruments necessary to effectuate such transfer.

In the event such notice is given in connection with the purchase of the Trust Collateral by the Group 2 Auction Purchaser, the Group 2 Auction Purchaser shall deliver to the Trust Administrator for deposit in the Distribution Account not later than the last Business Day of the month next preceding the month of the final distribution on the Group 2 Certificates an amount in immediately available funds equal to the Group 2 Auction Sale Price.  Upon the making of such final deposit and certification to the Trust Administrator by the Group 2 Auction Purchaser of the delivery of the Certificate Insurance Policy to the Certificate Insurer for cancellation, the Trust Administrator shall promptly release to the Group 2 Auction Purchaser the Mortgage Files for the remaining Group 2 Mortgage Loans, and the Trust Administrator shall execute all assignments, endorsements and other instruments necessary to effectuate such transfer.

(e)

Upon presentation of the Group 2 Certificates by the Group 2 Certificateholders on the final Distribution Date, the Trust Administrator shall distribute to each Certificateholder so presenting and surrendering its Group 2 Certificates the amount otherwise distributable on such Distribution Date in accordance with Section 4.02 in respect of the Group 2 Certificates so presented and surrendered.  Any funds not distributed to any Holder or Holders of Group 2 Certificates being retired on such Distribution Date because of the failure of such Holder or Holders to tender their Group 2 Certificates shall, on such date, be set aside and held in trust and credited to the account of the appropriate non-tendering Holder or Holders.  If any Group 2 Certificates as to which notice has been given pursuant to this Section 10.03 shall not have been surrendered for cancellation within six months after the time specified in such notice, the Trust Administrator shall mail a second notice to the remaining non-tendering Group 2 Certificateholders to surrender their Group 2 Certificates for cancellation in order to receive the final distribution with respect thereto.  If within one year after the second notice all such Group 2 Certificates shall not have been surrendered for cancellation, the Trust Administrator shall, directly or through an agent, mail a final notice to the remaining non-tendering Group 2 Certificateholders concerning surrender of their Group 2 Certificates.  The costs and expenses of maintaining the funds in trust and of contacting such Group 2 Certificateholders shall be paid out of the assets remaining in the Trust Fund.  If within one year after the final notice any such Group 2 Certificates shall not have been surrendered for cancellation, the Trust Administrator shall pay to UBS Securities LLC, all such amounts, and all rights of non-tendering Group 2 Certificateholders in or to such amounts shall thereupon cease hereunder, under the related Group 2 Certificates and, if applicable, under the Certificate Insurance Policy.  No interest shall accrue or be payable to any Certificateholder on any amount held in trust by the Trust Administrator as a result of such Certificateholder’s failure to surrender its Group 2 Certificate(s) for final payment thereof in accordance with this Section 10.03.  Any such amounts held in trust by the Trust Administrator shall be held in an Eligible Account and the Trust Administrator may direct any depository institution maintaining such account to invest the funds in one or more Permitted Investments.  All income and gain realized from the investment of funds deposited in such accounts held in trust by the Trust Administrator shall be for the benefit of the Trust Administrator; provided, however, that the Trust Administrator shall deposit in such account the amount of any loss of principal incurred in respect of any such Permitted Investment made with funds in such accounts immediately upon the realization of such loss.

Immediately following the deposit of funds in trust hereunder in respect of the Group 2 Certificates, the portion of the Trust Fund related to Loan Group 2 shall terminate.

Section 10.04.  Additional Termination Requirements.  

(a)

In the event that the Group 2 Auction Purchaser or the Master Servicer purchases the Group 2 Trust Collateral, or the final payment on or other liquidation of the last Group 2 Mortgage Loan or REO Property remaining in Middle REMIC 2 occurs pursuant to Section 10.03, the Trust Fund shall be terminated in accordance with the following additional requirements, unless the Trust Administrator and the Master Servicer have received an Opinion of Counsel, which Opinion of Counsel shall be at the expense of the Master Servicer (or in connection with a termination resulting from the final payment on or other liquidation of the last Group 2 Mortgage Loan or REO Property remaining in Middle REMIC 2, which Opinion of Counsel shall be at the expense of the person seeking nonadherence to the following additional requirements but which in no event shall be at the expense of the Trust Fund or, unless it is the person seeking nonadherence to the following additional requirements, the Servicer or the Trust Administrator), to the effect that the failure of Middle REMIC 2 to comply with such additional requirements of this Section 10.04 will not (A) result in the imposition on the Trust Fund of taxes on “prohibited transactions,” as described in Section 860F of the Code, or (B) cause any REMIC formed hereby to fail to qualify as a REMIC at any time that any Certificate is outstanding:

(i)

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

(ii)

If Middle REMIC 2 is being terminated in connection with a purchase pursuant to Section 10.03(a)(i), during such 90-day liquidation period and at or prior to the time of making of the final payment on the Group 2 Certificates, the Trust Administrator shall sell all of the assets of Middle REMIC 2 to the Group 2 Auction Purchaser or Master Servicer, as applicable, for cash; and

(iii)

At the time of the making of the final payment on the Group 2 Certificates, the Trust Administrator shall distribute or credit, or cause to be distributed or credited, to the Holders of the Group 2 Residual Certificates all cash on hand in the Trust Fund (other than cash retained to meet claims), and the Trust Fund shall terminate at that time.

(b)

At the expense of the terminating party, the Depositor shall prepare or cause to be prepared the documentation required in connection with the adoption of a plan of liquidation of each REMIC pursuant to this Section 10.04.

(c)

By their acceptance of Group 2 Certificates, the Holders thereof hereby agree to authorize the Trust Administrator to specify the 90-day liquidation period for each REMIC, which authorization shall be binding upon all successor Group 2 Certificateholders.

ARTICLE XI

MISCELLANEOUS PROVISIONS

Section 11.01.  Amendment.  

This Agreement may be amended from time to time by the Depositor, the Transferor, the Master Servicer, the Custodian, the Trust Administrator and the Trustee, with the consent of the NIMS Insurer and the Certificate Insurer and without the consent of any of the Certificateholders (i) to cure any ambiguity or mistake, (ii) to correct any defective provision herein or to supplement any provision herein which may be inconsistent with any other provision herein or in the Prospectus Supplement, (iii) to add to the duties of the Depositor, the Trustee, the Trust Administrator, the Transferor, the Custodian or the Master Servicer, (iv) to add any other provisions with respect to matters or questions arising hereunder or (v) to modify, alter, amend, add to or rescind any of the terms or provisions contained in this Agreement; provided that any action pursuant to clause (iv) or (v) above shall not, as evidenced by an Opinion of Counsel addressed to the Trust Administrator, the Certificate Insurer and the NIMS Insurer (which Opinion of Counsel shall be an expense of the party requesting the amendment, or if the Trust Administrator requests the amendment, the Trust Fund), adversely affect in any material respect the interests of any Certificateholder; provided, however, that the amendment shall not be deemed to adversely affect in any material respect the interests of the Certificateholders if the Person requesting the amendment obtains a letter from each Rating Agency stating that the amendment would not result in the downgrading or withdrawal of the respective ratings then assigned to the Certificates; it being understood and agreed that any such letter in and of itself will not represent a determination as to the materiality of any such amendment and will represent a determination only as to the credit issues affecting any such rating.  The Trust Administrator, the Trustee, the Depositor, the Transferor, the Custodian and the Master Servicer also may at any time and from time to time amend this Agreement with the consent of the NIMS Insurer and the Certificate Insurer and without the consent of the Certificateholders to modify, eliminate or add to any of its provisions to such extent as shall be necessary or helpful to (i) maintain the qualification of any REMIC created under this Agreement as a REMIC under the Code, (ii) avoid or minimize the risk of the imposition of any tax on any REMIC pursuant to the Code that would be a claim at any time prior to the final redemption of the Certificates or (iii) comply with any other requirements of the Code, provided that the Trust Administrator, the NIMS Insurer, the Certificate Insurer and the Master Servicer have been provided an Opinion of Counsel addressed to the Trust Administrator, the NIMS Insurer, the Certificate Insurer and the Master Servicer, which opinion shall be an expense of the party requesting such opinion but in any case shall not be an expense of the Trustee, the Trust Administrator, the Master Servicer or the Trust Fund, to the effect that such action is necessary or helpful to, as applicable, (i) maintain such qualification, (ii) avoid or minimize the risk of the imposition of such a tax or (iii) comply with any such requirements of the Code.   In addition, this Agreement may be amended from time to time by the Depositor, the Master Servicer, the Trust Administrator, the Transferor and the Trustee without the consent of any of the Certificateholders to comply with the provisions of Regulation AB.

Section 9.12 of this Agreement may also be amended by the Depositor, the Transferor, the Master Servicer, the Trust Administrator and the Trustee with the consent of the NIMS Insurer and the Certificate Insurer and without the consent of any of the Certificateholders, and without the need for any Opinions of Counsel or Rating Agency confirmation, in the event that new guidelines or procedures are issued by the Securities and Exchange Commission with respect to the preparation and filing of the Form 10-K and the Certification required to be attached thereto as referenced in Section 9.12(d).

This Agreement may also be amended from time to time by the Depositor, the Transferor, the Master Servicer, the Custodian, the Trust Administrator and the Trustee with the consent of the NIMS Insurer, the Certificate Insurer, and the Holders of a Majority in Interest of each Class of Certificates affected thereby for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Holders of Certificates; provided, however, that no such amendment shall (i) reduce in any manner the amount of, or delay the timing of, payments required to be distributed on any Certificate without the consent of the Holder of such Certificate, (ii) adversely affect in any material respect the interests of the Holders of any Class of Certificates in a manner other than as described in the preceding clause (i), without the consent of the Holders of Certificates of such Class evidencing, as to such Class, Percentage Interests aggregating 66% or (iii) reduce the aforesaid percentages of Certificates the Holders of which are required to consent to any such amendment, without the consent of the Holders of all such Certificates then outstanding.

Notwithstanding any contrary provision of this Agreement, the Trustee, the NIMS Insurer and the Trust Administrator shall not consent to any amendment to this Agreement (other than pursuant to the second preceding paragraph) unless it shall have first received an Opinion of Counsel addressed to the Trustee, the NIMS Insurer, the Certificate Insurer and the Trust Administrator, which opinion shall not be an expense of the Trustee, the Trust Administrator or the Trust Fund, to the effect that such amendment is permitted hereunder and will not cause the imposition of any tax under the REMIC Provisions on any REMIC or the Certificateholders or cause any REMIC created under this Agreement to fail to qualify as a REMIC at any time that any Certificates are outstanding.

Promptly after the execution of any amendment to this Agreement requiring the consent of Certificateholders, the Trust Administrator shall furnish written notification of the substance or a copy of such amendment to each Certificateholder, the Certificate Insurer, the NIMS Insurer and each Rating Agency.

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

Nothing in this Agreement shall require the Trustee or the Trust Administrator to enter into an amendment without receiving an Opinion of Counsel addressed to the Trust Administrator, the Certificate Insurer and the Trustee (which Opinion shall not be an expense of the Trustee, the Trust Administrator or the Trust Fund), satisfactory to the Trust Administrator and the Certificate Insurer that (i) such amendment is permitted and is not prohibited by this Agreement and that all requirements for amending this Agreement have been complied with; and (ii) either (A) the amendment does not adversely affect in any material respect the interests of any Certificateholder or the Certificate Insurer or (B) the conclusion set forth in the immediately preceding clause (A) is not required to be reached pursuant to this Section 11.01.  Notwithstanding anything to the contrary in this Section 11.01, the Trustee, the Custodian, the Trust Administrator and the Master Servicer shall reasonably cooperate with the Depositor and its counsel to enter into such amendments or modifications to the Agreement as may be necessary to comply with Regulation AB and any interpretation thereof by the Commission.

Section 11.02.  Recordation of Agreement; Counterparts.  

This Agreement (or an abstract hereof, if acceptable to the applicable recording office) is subject to recordation in all appropriate public offices for real property records in all the towns or other comparable jurisdictions in which any or all of the Mortgaged Properties are situated, and in any other appropriate public office or elsewhere, such recordation to be effected by the Master Servicer at the expense of the Trust on direction by the Trust Administrator (acting at the written direction of a Majority in Interest of the Certificateholders), but only upon direction accompanied by an Opinion of Counsel to the effect that such recordation materially and beneficially affects the interests of the Certificateholders.

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

Section 11.03.  Governing Law.  

THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

Section 11.04.  Intention of Parties.  

It is the express intent of the parties hereto that the conveyance of the Trust Fund by the Depositor to the Trustee be, and be construed as, an absolute sale thereof to the Trustee.  It is, further, not the intention of the parties that such conveyance be deemed a pledge thereof by the Depositor to the Trustee.  However, in the event that, notwithstanding the intent of the parties, such assets are held to be the property of the Depositor, or if for any other reason this Agreement is held or deemed to create a security interest in such assets, then (i) this Agreement shall be deemed to be a security agreement within the meaning of the Uniform Commercial Code of the State of New York and (ii) the conveyance provided for in this Agreement shall be deemed to be an assignment and a grant by the Depositor to the Trustee, for the benefit of the Certificateholders and the Certificate Insurer, of a security interest in all of the assets that constitute the Trust Fund, whether now owned or hereafter acquired.

The Depositor for the benefit of the Certificateholders and the Certificate Insurer shall, to the extent consistent with this Agreement, take such actions as may be necessary to ensure that, if this Agreement were deemed to create a security interest in the Trust Fund, such security interest would be deemed to be a perfected security interest of first priority under applicable law and will be maintained as such throughout the term of the Agreement.  The Depositor shall arrange for filing any Uniform Commercial Code continuation statements in connection with any security interest granted or assigned to the Trustee for the benefit of the Certificateholders and the Certificate Insurer.

Section 11.05.  Notices.  

(a)

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

(i)

Any material change or amendment to this Agreement;

(ii)

The occurrence of any Master Servicer Event of Termination that has not been cured;

(iii)

The resignation or termination of the Master Servicer, the Custodian, the Trust Administrator, the NIMS Insurer or the Trustee and the appointment of any successor;

(iv)

The repurchase or substitution of Mortgage Loans pursuant to Section 2.03; and

(v)

The final payment to Certificateholders.

In addition, the Master Servicer shall promptly furnish to each Rating Agency copies of the following:

(vi)

Each annual statement as to compliance described in Section 3.21;

(vii)

Each annual independent public accountants’ servicing report described in Section 3.22; and

(viii)

Any notice of a purchase of a Mortgage Loan pursuant to Section 2.02 or 2.03.

(b)

All directions, demands and notices hereunder shall be in writing and shall be deemed to have been duly given when delivered to (a) in the case of the Depositor, Mortgage Asset Securitization Transactions, Inc., 1285 Avenue of the Americas, New York, New York 10019, Attention:  General Counsel, (b) in the case of the Master Servicer, Wells Fargo Bank, N.A., 9062 Old Annapolis Road, Columbia, Maryland 21045, Attention: Client Manager – MARM 2007-3, or such other address as the Master Servicer may hereafter furnish to each other party to this Agreement in writing, and in the case of Wells Fargo in its capacity as Custodian, Wells Fargo Bank, N.A., 1015 10th Avenue Southeast, Minneapolis, Minnesota 55414, Attention: Client Manager – MARM 2007-3, (c) in the case of the Trustee, the Corporate Trust Office, or such other address as the Trustee may hereafter furnish to each other party to this Agreement in writing, (d) in the case of the Transferor, UBS Real Estate Securities Inc., 1285 Avenue of the Americas, New York, New York 10019, Attention:  General Counsel, (e) in the case of the Rating Agencies, the address specified therefor in the definition corresponding to the name of such Rating Agency, (f) in the case of the Trust Administrator, the Corporate Trust Office, or such other address as the Trust Administrator may hereafter furnish to each other party to this Agreement in writing and (g) in the case of the Certificate Insurer, Financial Security Assurance Inc., 31 West 52nd Street, New York, New York 10019, Attention: Managing Director – Transaction Oversight, Policy No. 51776-N, with wire instructions as follows:

Bank:

The Bank of New York, New York, 

ABA Number 021-000-018, 

For the Account of: 

Financial Security Assurance Inc., 

Account Number: 

8900-297-263, 

Policy Number: 

51776-N.  

Notices to Certificateholders shall be deemed given when mailed, first class postage prepaid, to their respective addresses appearing in the Certificate Register.

Section 11.06.  Severability of Provisions.  

If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement or of the Certificates or the rights of the Holders thereof.

Section 11.07.  Assignment.  

Notwithstanding anything to the contrary contained herein, except as provided in Section 6.02 and this Section 11.07, this Agreement may not be assigned by the Master Servicer without the prior written consent of the Trustee, the Certificate Insurer and Depositor.  Pursuant to Section 6.05, the Master Servicer shall be permitted to pledge its rights as servicer hereunder to a lender, provided that no such pledge shall permit the termination of the Master Servicer as Master Servicer unless a successor servicer meeting the requirements of Sections 6.04 and 7.02 hereunder shall have assumed the rights and obligations of the Master Servicer hereunder.

Section 11.08.  Limitation on Rights of Certificateholders.  

The death or incapacity of any Certificateholder shall not operate to terminate this Agreement or the trust created hereby, nor entitle such Certificateholder’s legal representative or heirs to claim an accounting or to take any action or commence any proceeding in any court for a petition or winding up of the trust created hereby, or otherwise affect the rights, obligations and liabilities of the parties hereto or any of them.

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

No Certificateholder shall have any right by virtue or by availing itself of any provisions of this Agreement to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Agreement, unless such Holder previously shall have given to the Trustee or the Trust Administrator a written notice of a Master Servicer Event of Termination and of the continuance thereof, as herein provided, and unless the Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the Certificates shall also have made written request to the Trustee or the Trust Administrator to institute such action, suit or proceeding in its own name as Trustee or Trust Administrator hereunder and shall have offered to the Trust Administrator such reasonable indemnity as it may require against the costs, expenses, and liabilities to be incurred therein or thereby, and the Trustee or the Trust Administrator, for 60 days after its receipt of such notice, request and offer of indemnity shall have neglected or refused to institute any such action, suit or proceeding; it being understood and intended, and being expressly covenanted by each Certificateholder with every other Certificateholder and the Trustee or the Trust Administrator, that no one or more Holders of Certificates shall have any right in any manner whatever by virtue or by availing itself or themselves of any provisions of this Agreement to affect, disturb or prejudice the rights of the Holders of any other of the Certificates, or to obtain or seek to obtain priority over or preference to any other such Holder or to enforce any right under this Agreement, except in the manner herein provided and for the common benefit of all Certificateholders.  For the protection and enforcement of the provisions of this Section 11.08, each and every Certificateholder and the Trustee and the Trust Administrator shall be entitled to such relief as can be given either at law or in equity.

Section 11.09.  Inspection and Audit Rights.  

The Master Servicer agrees that, on reasonable prior notice, it will permit and will cause each Servicer to permit any representative of the Depositor or the Trustee during the Master Servicer’s or Servicer’s, as the case may be, normal business hours, to examine all the books of account, records, reports and other papers of the Master Servicer or each Servicer, as the case may be, relating to the Mortgage Loans, to make copies and extracts therefrom, to cause such books to be audited by independent certified public accountants selected by the Depositor or the Trustee and to discuss its affairs, finances and accounts relating to the Mortgage Loans with its officers, employees and independent public accountants (and by this provision the Master Servicer or each Servicer, as the case may be, hereby authorize said accountants to discuss with such representative such affairs, finances and accounts), all at such reasonable times and as often as may be reasonably requested.  Any out-of-pocket expense incident to the exercise by the Depositor or the Trustee of any right under this Section 11.09 shall be borne by the party requesting such inspection; all other such expenses shall be borne by the Master Servicer or the related Servicer.

Section 11.10.  Certificates Nonassessable and Fully Paid.  

It is the intention of the Depositor that Certificateholders shall not be personally liable for obligations of the Trust Fund, that the interests in the Trust Fund represented by the Certificates shall be nonassessable for any reason whatsoever, and that the Certificates, upon due authentication thereof by the Trustee pursuant to this Agreement, are and shall be deemed fully paid.

Section 11.11.  Compliance With Regulation AB

Each of the parties hereto acknowledges and agrees that the purpose of Sections 3.21, 3.22 and 9.12 of this Agreement is to facilitate compliance by the Transferor and the Depositor with the provisions of Regulation AB, as such may be amended or clarified from time to time.  Therefore, each of the parties agrees that (a) the obligations of the parties hereunder shall be interpreted in such a manner as to accomplish compliance with Regulation AB, (b) the parties’ obligations hereunder will be supplemented and modified as necessary to be consistent with any such amendments, interpretive advice or guidance, convention or consensus among active participants in the asset-backed securities markets, advice of counsel, or otherwise in respect of the requirements of Regulation AB and (c) the parties shall comply, to the extent practicable from a timing and information systems perspective and at the expense of the Depositor, with requests made by the Trust Administrator, the Transferor or the Depositor for delivery of additional or different information as the Trust Administrator, the Transferor or the Depositor may determine in good faith is necessary to comply with the provisions of Regulation AB.

Section 11.12.  Third Party Rights.

The NIMS Insurer and the Certificate Insurer shall each be deemed a third-party beneficiary of this Agreement to the same extent as if it were a party hereto, and shall have the right to enforce the provisions of this Agreement.

ARTICLE XII

CERTAIN MATTERS REGARDING THE CERTIFICATE INSURER

Section 12.01.  Exercise of Voting Rights of Holder of the Insured Certificates.

For so long as there is no continuing default by the Certificate Insurer in respect of its obligations under the Certificate Insurance Policy (a “Certificate Insurer Default”), each of the Depositor, the Master Servicer, the Trust Administrator and the Trustee, and, by accepting its Insured Certificate, each Holder of an Insured Certificate, agrees that the Certificate Insurer shall have the right to exercise all Voting Rights of the Holders of the Insured Certificates under this Agreement without any further consent of the Holders of the Insured Certificates.

In addition, each Holder of an Insured Certificate agrees that, unless a Certificate Insurer Default has occurred and is continuing, the Voting Rights of such Holder with respect to such Insured Certificate may be exercised by such Holder only with the prior written consent of the Certificate Insurer.

Section 12.02.  Trustee and Trust Administrator to Act Solely with Consent of Certificate Insurer.

Unless a Certificate Insurer Default has occurred and is continuing, neither the Trustee nor the Trust Administrator shall undertake any litigation pursuant to Section 8.02(a)(ix) at the request or direction of the Certificateholders, without the prior written consent of the Certificate Insurer (which consent shall not be unreasonably withheld or delayed); provided, however, nothing contained herein shall prohibit or prevent the Trustee and the Trust Administrator from defending itself or the Trust Fund or taking any action related thereto.

Section 12.03.  Trust Fund and Accounts Held for Benefit of Certificate Insurer.

The Trustee shall hold the Trust Fund and the Mortgage Files for the benefit of the Certificateholders and the Certificate Insurer and all references in this Agreement (including, without limitation, in Sections 2.01 and 2.02) and in the Certificates to the benefit of Holders of the Certificates shall be deemed to include the Certificate Insurer.  

The Master Servicer hereby acknowledges and agrees that it shall master service and administer the related Loans and any REO Properties, and the Trust Administrator hereby acknowledges and agrees that it shall maintain the Distribution Account, for the benefit of the Certificateholders and for the benefit of the Certificate Insurer, and all references in this Agreement (including, without limitation, in Section 3.01) to the benefit of or actions on behalf of the Certificateholders shall be deemed to include the Certificate Insurer. Unless a Certificate Insurer Default has occurred and is continuing, neither the Master Servicer nor the Depositor shall undertake any litigation pursuant to Section 6.03 (other than litigation to enforce their respective rights hereunder or defend themselves against claims made against them) without the prior consent of the Certificate Insurer (which consent shall not be unreasonably withheld or delayed).

Section 12.04.  Claims Upon the Certificate Insurance Policy; Policy Payments Account.

(a)

If, at or before 12:00 p.m., New York time, on the second Business Day prior to a Distribution Date, the Trust Administrator determines that the Available Funds for such Distribution Date distributable to the Holders of the Insured Certificates pursuant to Section 4.02 will be insufficient to pay the Guaranteed Distributions (as defined in the Certificate Insurance Policy) for each Class of Insured Certificates on such Distribution Date, the Trust Administrator shall determine the amount of any such deficiency and shall give notice to the Certificate Insurer and the Fiscal Agent (as defined in the Certificate Insurance Policy), if any, by telephone, electronic mail or telecopy of the amount of such deficiency.  Such notice of such deficiency shall be confirmed in writing in the form set forth as Exhibit A to the Endorsement to the Certificate Insurance Policy, to the Certificate Insurer at or before 12:00 p.m. New York time on the second Business Day prior to such Distribution Date and will be accompanied by sufficient information such that the Certificate Insurer can confirm the deficiency amount.  Following Receipt (as defined in the Certificate Insurance Policy) by the Certificate Insurer of such notice in such form, the Certificate Insurer will pay any amount payable under the Certificate Insurance Policy on the later to occur of (i) 12:00 noon New York time on the second Business Day following such receipt and (ii) 12:00 noon New York time on the Distribution Date to which such claims relates, as provided in the Endorsement to the Certificate Insurance Policy.

(b)

The Trust Administrator is hereby appointed as agent for the Trustee in connection with the receipt and distribution of all amounts required to be paid by the Certificate Insurer under the Certificate Insurance Policy and the providing of any notices required to be provided thereunder.  The Trust Administrator on behalf of the Trustee shall establish a segregated non-interest bearing trust account for the benefit of Holders of the Insured Certificates and the Certificate Insurer referred to herein as the “Policy Payments Account” over which the Trust Administrator shall have exclusive control and sole right of withdrawal. The Trust Administrator shall deposit any amount paid under the Certificate Insurance Policy in the Policy Payments Account and distribute such amount only for purposes of payment to Holders of Insured Certificates of the Guaranteed Distributions or any amount in respect of a Preference Claim (as defined in the Certificate Insurance Policy) for which a claim under the Certificate Insurance Policy was made, and such amount may not be applied to satisfy any costs, expenses or liabilities of the Master Servicer, the Trust Administrator, the Trustee or the Trust Fund.  Amounts paid under the Certificate Insurance Policy shall be transferred to the Distribution Account in accordance with the next succeeding paragraph and disbursed by the Trust Administrator to Holders of the Insured Certificates entitled to such amounts in accordance with Section 4.02 (or, in the case of an amount in respect of a Preference Claim, to the related Holders of Insured Certificates as contemplated in Section 12.04(d)). It shall not be necessary for such payments to be made by checks or wire transfers separate from the checks or wire transfers used to pay the other distributions to be made to such Holders pursuant to Section 4.02.  However, the amount of any payment of principal of or interest on the Insured Certificates to be paid from funds transferred from the Policy Payments Account shall be noted as provided in paragraph (c) below in the Certificate Register and in the statement to be furnished to Holders of the Insured Certificates pursuant to Section 4.04.  Funds held in the Policy Payments Account shall not be invested.

(c)

On any Distribution Date with respect to which a claim has been made under the Certificate Insurance Policy, the amount of any funds received by the Trust Administrator on behalf of the Trustee as a result of any claim under the Certificate Insurance Policy, to the extent required to pay the Insured Amount on such Distribution Date, shall be withdrawn from the Policy Payments Account and deposited in the Distribution Account and applied by the Trust Administrator, directly to the payment in full of the Insured Amount due on the Insured Certificates. Funds received by the Trust Administrator on behalf of the Trustee as a result of any claim under the Certificate Insurance Policy shall be deposited by the Trust Administrator in the Policy Payments Account and used solely for payment to the Holders of the Insured Certificates and may not be applied to satisfy any costs, expenses or liabilities of the Master Servicer, the Trust Administrator, the Trustee or the Trust Fund. Any funds remaining in the Policy Payments Account on the first Business Day following a Distribution Date shall be remitted to the Certificate Insurer, pursuant to (and subject to receipt of) the instructions of the Certificate Insurer, by the end of such Business Day.

(d)

The Trust Administrator shall keep complete and accurate records in respect of (i) all funds remitted to it by the Certificate Insurer and (ii) the allocation of such funds to (A) payments of interest on and principal in respect of each Class of Insured Certificates, (B) Realized Losses allocated to each Class of the Insured Certificates and (C) the amount of funds available to make distributions on the Insured Certificates pursuant to Section 4.02. The Certificate Insurer shall have the right to inspect such records at reasonable times during normal business hours upon three Business Days’ prior notice to the Trust Administrator.

(e)

The Trust Administrator and the Trustee shall promptly notify the Certificate Insurer of: (A) the commencement of any proceeding of which a Responsible Officer of the Trust Administrator or the Trustee, as applicable, has actual knowledge by or against the Depositor commenced under the United States bankruptcy code or any other applicable bankruptcy, insolvency, receivership, rehabilitation or similar law (an “Insolvency Proceeding”) and (B) the making of any claim of which a Responsible Officer of the Trust Administrator or the Trustee has actual knowledge in connection with any Insolvency Proceeding seeking the avoidance as a preferential transfer (a “Preference Claim”) of any distribution made with respect to the Insured Certificates.  Each Holder of an Insured Certificate, by its purchase of such Certificate, the Master Servicer, the Trust Administrator and the Trustee hereby agree that the Certificate Insurer (so long as no Certificate Insurer Default has occurred and is continuing) may at any time during the continuation of any proceeding relating to a Preference Claim direct all matters relating to such Preference Claim, including, without limitation, (i) the direction of any appeal of any order relating to such Preference Claim and (ii) the posting of any surety, supersedeas or performance bond pending any such appeal. In addition and without limitation of the foregoing, the Certificate Insurer shall be subrogated to the rights, if any, of the Master Servicer, Trust Administrator, the Trustee and each Holder of an Insured Certificate in the conduct of any such Preference Claim, including, without limitation, all rights of any party to an adversary proceeding action with respect to any court order issued in connection with any such Preference Claim.

(f)

The Trustee and the Trust Administrator each acknowledge, and each Holder of an Insured Certificate by its acceptance of the Insured Certificate agrees, that, without the need for any further action on the part of the Certificate Insurer or the Trustee, to the extent the Certificate Insurer makes payments, directly or indirectly, on account of principal of or interest on any Insured Certificates, the Certificate Insurer will be fully subrogated to the rights of the Holders of such Insured Certificates to receive such principal and interest from the Trust Fund.  The Holders of the Insured Certificates, by acceptance of their respective Insured Certificates, assign their rights as Holders of such Insured Certificates to the extent of the Certificate Insurer’s interest with respect to amounts paid under the Certificate Insurance Policy.  Anything herein to the contrary notwithstanding, solely for purposes of determining the Premium Distribution Amount payable to the Certificate Insurer and the Certificate Insurer’s rights, as applicable, as subrogee for payments distributable pursuant to Section 4.02, any payment with respect to distributions to the Insured Certificates which is made with funds received pursuant to the terms of the Certificate Insurance Policy, shall not be considered payment of the Insured Certificates from the Trust Fund and shall not result in the distribution or the provision for the distribution in reduction of the Class Certificate Balance of the Insured Certificates within the meaning of Article IV.

(g)

Upon its becoming aware of the occurrence of an Event of Default, the Trust Administrator shall promptly notify the Certificate Insurer of such Event of Default. The Trustee, the Depositor, the Master Servicer and the Trust Administrator shall cooperate in all respects with any reasonable request by the Certificate Insurer for action to preserve or enforce the Certificate Insurer’s rights or interests under this Agreement without limiting the rights or affecting the interests of the Holders as otherwise set forth herein.

(h)

The Master Servicer shall designate a contact person who shall be available within a reasonable period of time to the Certificate Insurer to provide reasonable access to information regarding the Mortgage Loans.

(i)

[Reserved]

(j)

With respect to this Article XII, (i) the term “Receipt” and “Received” shall mean actual delivery to the Certificate Insurer and the Fiscal Agent, if any, prior to 12:00 noon, New York City time, on a Business Day; delivery either on a day that is not a Business Day or after 12:00 noon, New York City time, shall be deemed to be Received on the next succeeding Business Day.  If any notice or certificate given under the Certificate Insurance Policy by the Trust Administrator is not in proper form or is not properly completed, executed or delivered, or contains any misstatement, it shall be deemed not to have been Received.  The Certificate Insurer or its Fiscal Agent, if any, shall promptly so advise the Trust Administrator, and the Trust Administrator may submit an amended notice and (ii) “Business Day” means any day other than (A) a Saturday or Sunday or (B) a day on which banking institutions in the City of New York, New York, or the city in which the Corporate Trust Office of the Master Servicer, the Trustee or the Trust Administrator is located, are authorized or obligated by law or executive order to be closed.

(k)

Each Holder of an Insured Certificate, by its acceptance of such Insured Certificate or interest therein, hereby acknowledges and agrees that the Certificate Insurance Policy does not cover Prepayment Interest Shortfalls, Net Rate Carryovers, or Relief Act Interest Shortfalls nor does the Certificate Insurance Policy guarantee to the Holders of the Insured Certificates any particular rate of principal payment.  In addition, the Certificate Insurance Policy does not cover shortfalls, if any, attributable to the liability of the Trust, any REMIC, the Trust Administrator or the Trustee for withholding taxes due on the payments made to the Holders of the Insured Certificates, if any, (including interest and penalties in respect of any liability for withholding taxes).

(l)

The Trust Administrator is hereby designated, appointed, authorized and directed to administer pursuant to, and to hold, receive and make all payments under, the Certificate Insurance Policy and the Indemnification Agreement on behalf of the Holders of Insured Certificates and the Trustee in accordance with the provisions of this Agreement, including without limitation, to deliver on behalf of the Trustee the notices in accordance with Section 12.04 (a) and to make, on behalf of and with full power to bind the Trustee, any of the agreements or covenants of the Trustee contained therein. To the extent necessary, this Agreement shall constitute an irrevocable limited power of attorney, coupled with an interest, from the Trustee to the Trust Administrator, to accomplish the foregoing.

Section 12.05.  Effect of Payments by Certificate Insurer; Subrogation.

Anything herein to the contrary notwithstanding, any payment with respect to principal of or interest on any Insured Certificate which is made with moneys received pursuant to the terms of the Certificate Insurance Policy shall not be considered payment of such Insured Certificate from the Trust Fund and shall not result in the payment of or the provision for the payment of the principal of or interest on such Insured Certificate within the meaning of Section 4.01. The Depositor, the Master Servicer, Trust Administrator and the Trustee each acknowledge, and each Holder of an Insured Certificate by its acceptance of a such Certificate agrees, that without the need for any further action on the part of the Certificate Insurer, the Depositor, the Master Servicer, Trust Administrator or the Trustee (i) to the extent the Certificate Insurer makes payments, directly or indirectly, on account of principal of or interest on any Insured Certificate to the Holder of such Certificate, the Certificate Insurer will be fully subrogated to the rights of such Holder to receive such principal and interest from the Trust Fund and (ii) the Certificate Insurer shall be paid such principal and interest but only from the sources and in the manner provided herein for the payment of such principal and interest.

The Trustee, the Trust Administrator and the Master Servicer shall cooperate in all respects with any reasonable request by the Certificate Insurer for action to preserve or enforce the Certificate Insurer’s rights or interests under this Agreement without limiting the rights or affecting the interests of the Holders as otherwise set forth herein; provided, however, that neither the Trustee nor the Trust Administrator shall be under any obligation to institute, conduct or defend any litigation hereunder or in relation hereto at the request, direction or order of the Certificate Insurer pursuant to the provisions of this Agreement, unless the Certificate Insurer shall have offered to the Trustee or the Trust Administrator, as applicable, reasonable security or indemnity satisfactory to it against the costs, expenses and liabilities which may be incurred therein or thereby.

Section 12.06.  Trust Administrator to Hold the Certificate Insurance Policy.

The Trust Administrator shall hold the Certificate Insurance Policy in trust as agent for the Holders of the Insured Certificates for the purpose of making claims thereon and distributing the proceeds thereof. Upon the later of (i) the date upon which the Certificate Principal Balance of the Insured Certificates has been reduced to zero and all Guaranteed Distributions have been made and (ii) the date the Term of This Policy (as defined in the Certificate Insurance Policy) ends, the Trust Administrator shall surrender the Certificate Insurance Policy to the Certificate Insurer for cancellation. Neither the Certificate Insurance Policy nor the amounts paid on the Certificate Insurance Policy will constitute part of the Trust Fund or assets of any REMIC created by this Agreement. Each Holder of an Insured Certificate, by accepting its Insured Certificate, appoints the Trust Administrator as attorney-in-fact for the purpose of making claims on the Certificate Insurance Policy.

Section 12.07.  Termination of Certain of Certificate Insurer’s Rights.

Notwithstanding anything to the contrary anywhere in this Agreement, all rights of the Certificate Insurer, except in the case of any right to indemnification hereunder, shall permanently cease to be operable upon the latest to occur of (A) the date upon which the Certificate Principal Balance of each Insured Certificate has been reduced to zero, the Certificate Insurance Policy has been returned to the Certificate Insurer and all payments of Guaranteed Distributions (as defined in the Certificate Insurance Policy) have been made, (B) the date the Term of This Policy (as defined in the Certificate Insurance Policy) ends and (C) the payment in full to the Certificate Insurer of all amounts paid under the Certificate Insurance Policy plus interest at the Late Payment Rate thereon from the date such payment was made, and any other amounts owing to the Certificate Insurer under this Agreement. 

Section 12.08.  Survival of Indemnification.

Any and all indemnities to be provided by any party to this Agreement shall survive the termination and resignation of any party hereto and the termination of this Agreement.

[SIGNATURES COMMENCE ON THE FOLLOWING PAGE]

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

MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., as Depositor

By:

            /s/ Lima Ekram                                  

Name:   Lima Ekram

Title:     Director

By:

            /s/ Adrian Wu                                     

Name:   Adrian Wu

Title:     Director

UBS REAL ESTATE SECURITIES INC., as Transferor

By:

            /s/ Lima Ekram                                   

Name:   Lima Ekram

Title:     Director

By:

            /s/ Adrian Wu                                     

Name:   Adrian Wu

Title:     Director  

U.S. BANK NATIONAL ASSOCIATION, as Trustee 

By:

            /s/ Shannon M. Rantz                         

Name:   Shannon M. Rantz

Title:     Vice President

WELLS FARGO BANK, N.A., as Master Servicer, Trust Administrator and Custodian

By:

            /s/ Graham M. Oglesby                        

Name:   Graham M. Oglesby

Title:     Vice President

WELLS FARGO BANK, N.A., as Credit Risk Manager

By:

            /s/ Graham M. Oglesby                        

Name:   Graham M. Oglesby

Title:     Vice President

 

STATE OF NEW YORK       )

)

ss.:

COUNTY OF NEW YORK

)

On the 15th day of May, 2007 before me, a notary public in and for said State, personally appeared before me each of the above-named Lima Ekram and Adrian Wu, in each case known to me to be a Director and a Director, respectively, of Mortgage Asset Securitization Transactions, Inc., one of the corporations that executed the within instrument, and also known to me to be the person who executed it on behalf of such corporation, and acknowledged to me that such corporation executed the within instrument.

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

__/s/ Anthony Beshara___________

Notary Public

[SEAL]

My commission expires:

____June 27, 2010_________________

STATE OF NEW YORK

)

)

ss.:

COUNTY OF NEW YORK

)

On the 15th day of May, 2007 before me, a notary public in and for said State, personally appeared before me each of the above-named Lima Ekram and Adrian Wu, in each case known to me to be a Director and a Director, respectively, of UBS Real Estate Securities Inc., one of the corporations that executed the within instrument, and also known to me to be the person who executed it on behalf of such corporation, and acknowledged to me that such corporation executed the within instrument.

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

__/s/ Anthony Beshara___________

Notary Public

[SEAL]

My commission expires:

____June 27, 2010________________

STATE OF MARYLAND

)

)

ss.:

COUNTY OF HOWARD

)

On the 15th day of May, 2007 before me, a notary public in and for said State, personally appeared Graham M. Oglesby known to me to be a Vice President of Wells Fargo Bank, N.A., one of the corporations that executed the within instrument, and also known to me to be the person who executed it on behalf of such corporation, and acknowledged to me that such corporation executed the within instrument.

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

___/s/ Jennifer Richardson___________

Notary Public

[SEAL]

My commission expires:

____April 1, 2010____________________

STATE OF MINNESOTA

)

)

ss.:

COUNTY OF RAMSEY

)

On the 15th day of May, 2007 before me, a notary public in and for said State, personally appeared Shannon M. Rantz known to me to be a Vice President of U.S. Bank National Association, one of the corporations that executed the within instrument, and also known to me to be the person who executed it on behalf of such corporation, and acknowledged to me that such corporation executed the within instrument.

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

_____/s/ Trisha L. Willett___________

Notary Public

[SEAL]

My commission expires:

____January 31, 2012_____________________

SCHEDULE I

Mortgage Loan Schedule

[On File]

SCHEDULE II

MASTR Adjustable Rate Mortgages Trust 2007-3

Mortgage Pass-Through Certificates

Series 2007-3

Representations and Warranties as to the Mortgage Loans

UBS Real Estate Securities Inc. (the “Transferor”) hereby makes with respect to those Mortgage Loans sold by it to the Depositor pursuant to the Mortgage Loan Purchase Agreement, the following representations and warranties as of the Closing Date or, if so specified herein, as of the Cut-off Date.

1.

the information set forth in the Mortgage Loan Schedule was true and correct in all material respects at the date or dates respecting which such information is furnished as specified in the Mortgage Loan Schedule;

2.

immediately prior to the transfer and assignment of the Mortgage Loans to the depositor, the transferor was the sole owner and holder of the Mortgage Loan free and clear of any and all liens, pledges, charges or security interests of any nature and has full right and authority to sell and assign the same;

3.

the Mortgaged Property is undamaged by water, fire, earthquake, earth movement other than earthquake, windstorm, flood, tornado or similar casualty (excluding casualty from the presence of hazardous wastes or hazardous substances, as to which the transferor makes no representations), so as to affect adversely the value of the Mortgaged Property as security for the Mortgage Loan or the use for which the premises were intended and to the best of the transferor’s knowledge, there is no proceeding pending or threatened for the total or partial condemnation of the Mortgaged Property;

4.

the Mortgage Loan meets, or is exempt from, applicable state or federal laws, regulations and other requirements, pertaining to usury, and the Mortgage Loan is not usurious;

5.

the Mortgage Note, the related mortgage and other agreements executed in connection therewith are genuine, and each is the legal, valid and binding obligation of the maker thereof, enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law); and, to the best of the transferor’s knowledge, all parties to the Mortgage Note and the mortgage had legal capacity to execute the Mortgage Note and the mortgage and each Mortgage Note and mortgage has been duly and properly executed by the mortgagor;

6.

each Mortgage Loan at the time it was made complied in all material respects with applicable federal, state and local laws, including, without limitation, all applicable anti-predatory, abusive and fair lending laws;

7.

no Mortgage Note or mortgage is subject to any right of rescission, set-off, counterclaim or defense, including the defense of usury, nor will the operation of any of the terms of the Mortgage Note or mortgage, or the exercise of any right thereunder, render the Mortgage Note or mortgage unenforceable, in whole or in part, or subject it to any right of rescission, set-off, counterclaim or defense, including the defense of usury, and no such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto;

8.

the Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing and Urban Development pursuant to Sections 203 and 211 of the National Housing Act, as amended, a savings and loan association, a savings bank, a commercial bank, credit union, insurance company or similar institution which is supervised and examined by a federal or state authority.

9.

the mortgage is a valid, subsisting and enforceable first lien on the property therein described, and the Mortgaged Property is free and clear of all encumbrances and liens having priority over the first lien of the mortgage except for liens for real estate taxes and special assessments not yet due and payable and liens or interests arising under or as a result of any federal, state or local law, regulation or ordinance relating to hazardous wastes or hazardous substances, and, if the related Mortgaged Property is a condominium unit, any lien for common charges permitted by statute or homeowners association fees; and if the Mortgaged Property consists of shares of a cooperative housing corporation, any lien for amounts due to the cooperative housing corporation for unpaid assessments or charges or any lien of any assignment of rents or maintenance expenses secured by the real property owned by the cooperative housing corporation; and any security agreement, chattel mortgage or equivalent document related to, and delivered to the trustee or to the master servicer with, any Mortgage establishes in the transferor a valid and subsisting first lien on the property described therein and the transferor has full right to sell and assign the same to the trustee;

10.

neither the transferor nor any prior holder of the Mortgage or the related Mortgage Note has modified the Mortgage or the related Mortgage Note in any material respect, satisfied, canceled or subordinated the Mortgage in whole or in part, released the Mortgaged Property in whole or in part from the lien of the Mortgage, or executed any instrument of release, cancellation, modification or satisfaction, except in each case as is reflected in an agreement delivered to the trustee or the master servicer;

11.

all taxes, governmental assessments, insurance premiums, and water, sewer and municipal charges, which previously became due and owing have been paid, or an escrow of funds has been established, to the extent permitted by law, in an amount sufficient to pay for every such item which remains unpaid; and the transferor has not advanced funds, or received any advance of funds by a party other than the Mortgagor, directly or indirectly for the payment of any amount required by the Mortgage, except for interest accruing from the date of the Mortgage Note or date of disbursement of the Mortgage Loan proceeds, whichever is later, to the day which precedes by thirty days the first Due Date under the related Mortgage Note;

12.

the Mortgaged Property is free and clear of all mechanics’ and materialmen’s liens or liens in the nature thereof; provided, however, that this warranty shall be deemed not to have been made at the time of the initial issuance of the Certificates if a title policy affording, in substance, the same protection afforded by this warranty is furnished to the trustee by the transferor;

13.

except for Mortgage Loans secured by co-op shares and Mortgage Loans secured by residential long term leases, the Mortgaged Property consists of a fee simple estate in real property; all of the improvements which are included for the purpose of determining the appraised value of the Mortgaged Property lie wholly within the boundaries and building restriction lines of such property and no improvements on adjoining properties encroach upon the Mortgaged Property (unless insured against under the related title insurance policy); and to the best of the transferor’s knowledge, the Mortgaged Property and all improvements thereon comply with all requirements of any applicable zoning and subdivision laws and ordinances;

14.

to the best of the transferor’s knowledge, all inspections, licenses and certificates required to be made or issued with respect to all occupied portions of the Mortgaged Property and, with respect to the use and occupancy of the same, including, but not limited to, certificates of occupancy and fire underwriting certificates, have been made or obtained from the appropriate authorities;

15.

all payments required to be made up to but not including the Due Date immediately preceding the Cut-off Date for such Mortgage Loan under the terms of the related Mortgage Note have been made;

16.

the proceeds of the Mortgage Loans have been fully disbursed, there is no requirement for future advances thereunder and any and all requirements as to completion of any on site or off site improvements and as to disbursements of any escrow funds therefor have been complied with (except for escrow funds for exterior items which could not be completed due to weather and escrow funds for the completion of swimming pools); and all costs, fees and expenses incurred in making, closing or recording the Mortgage Loan have been paid, except recording fees with respect to Mortgages not recorded as of the Closing Date;

17.

the Mortgage Loan (except any Mortgage Loan secured by a Mortgaged Property located in any jurisdiction, as to which an opinion of counsel of the type customarily rendered in such jurisdiction in lieu of title insurance is instead received) is covered by an American Land Title Association mortgagee title insurance policy or other generally acceptable form of policy or insurance acceptable to Fannie Mae or Freddie Mac, issued by a title insurer acceptable to Fannie Mae or Freddie Mac insuring the originator, its successors and assigns, as to the first priority lien of the Mortgage in the original principal amount of the Mortgage Loan and subject only to (A) the lien of current real property taxes and assessments not yet due and payable, (B) covenants, conditions and restrictions, rights of way, easements and other matters of public record as of the date of recording of such Mortgage acceptable to mortgage lending institutions in the area in which the Mortgaged Property is located or specifically referred to in the appraisal performed in connection with the origination of the related Mortgage Loan, (C) liens created pursuant to any federal, state or local law, regulation or ordinance affording liens for the costs of clean-up of hazardous substances or hazardous wastes or for other environmental protection purposes and (D) such other matters to which like properties are commonly subject which do not individually, or in the aggregate, materially interfere with the benefits of the security intended to be provided by the Mortgage; the Transferor is the sole insured of such mortgagee title insurance policy, the assignment to the Trustee of the Transferor’s interest in such mortgagee title insurance policy does not require any consent of or notification to the insurer which has not been obtained or made, such mortgagee title insurance policy is in full force and effect and will be in full force and effect and inure to the benefit of the Trustee, no claims have been made under such mortgagee title insurance policy, and no prior holder of the related Mortgage, including the Transferor, has done, by act or omission, anything which would impair the coverage of such mortgagee title insurance policy;

18.

the Mortgaged Property securing each Mortgage Loan is insured by an insurer acceptable to Fannie Mae or Freddie Mac against loss by fire and such hazards as are covered under a standard extended coverage endorsement, in an amount which is not less than the lesser of 100% of the insurable value of the Mortgaged Property and the outstanding principal balance of the Mortgage Loan, but in no event less than the minimum amount necessary to fully compensate for any damage or loss on a replacement cost basis; if the Mortgaged Property is a condominium unit, it is included under the coverage afforded by a blanket policy for the project; if upon origination of the Mortgage Loan, the improvements on the Mortgaged Property were in an area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards, a flood insurance policy meeting the requirements of the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (A) the outstanding principal balance of the Mortgage Loan, (B) the full insurable value of the Mortgaged Property and (C) the maximum amount of insurance which was available under the National Flood Insurance Act of 1968, as amended; and each Mortgage obligates the Mortgagor thereunder to maintain all such insurance at the Mortgagor’s cost and expense;

19.

to the best of the transferor’s knowledge no foreclosure action has been commenced or is currently threatened, with respect to the Mortgage Loan and the transferor has not waived any default, breach, violation or event of acceleration;

20.

each Mortgage Note is payable in monthly payments, resulting in complete amortization of the Mortgage Loan over a term of not more than 480 months;

21.

each Mortgage contains customary and enforceable provisions such as to render the rights and remedies of the holder thereof adequate for the realization against the Mortgaged Property of the benefits of the security, including realization by judicial foreclosure (subject to any limitation arising from any bankruptcy, insolvency or other law for the relief of debtors), and there is no homestead or other exemption available to the Mortgagor which would interfere with such right of foreclosure;

22.

to the best of the transferor’s knowledge, no Mortgagor is a debtor in any state or federal bankruptcy or insolvency proceeding;

23.

each Mortgaged Property consists of a one to four unit residential property, which may include a detached home, townhouse, condominium unit or a unit in a planned unit development or, in the case of Mortgage Loans secured by co-op shares, leases or occupancy agreements;

24.

the Mortgage Loan is a “qualified mortgage” within the meaning of Section 860G(a)(3) of the Code;

25.

with respect to each Mortgage where a lost note affidavit has been delivered to the trustee in place of the related Mortgage Note, the related Mortgage Note is no longer in existence;

26.

in the event that the Mortgagor is an inter vivos “living” trust, (i) such trust is in compliance with Fannie Mae or Freddie Mac standards for inter vivos trusts and (ii) holding title to the Mortgaged Property in such trust will not diminish any rights as a creditor including the right to full title to the Mortgaged Property in the event foreclosure proceedings are initiated;

27.

if the Mortgage Loan is secured by a long-term residential lease, (1) the lessor under the lease holds a fee simple interest in the land; (2) the terms of such lease expressly permit the mortgaging of the leasehold estate, the assignment of the lease without the lessor’s consent and the acquisition by the holder of the Mortgage of the rights of the lessee upon foreclosure or assignment in lieu of foreclosure or provide the holder of the Mortgage with substantially similar protections; (3) the terms of such lease do not (a) allow the termination thereof upon the lessee’s default without the holder of the Mortgage being entitled to receive written notice of, and opportunity to cure, such default or (b) allow the termination of the lease in the event of damage or destruction as long as the Mortgage is in existence; (4) the term of such lease does not terminate earlier than five years after the maturity date of the Mortgage Note; and (5) the Mortgaged Property is located in a jurisdiction in which the use of leasehold estates in transferring ownership in residential properties is a widely accepted practice;

28.

the Mortgage Loan was underwritten in accordance with the underwriting guidelines of the related Originator in effect at the time of origination with exceptions thereto exercised in a reasonable manner;

29.

the Originator used no adverse selection procedures in selecting the Mortgage Loan from among the outstanding first-lien, residential mortgage loans owned by it which were available for sale to the transferor;

30.

with respect to each Mortgage Loan, the transferor is in possession of a complete Mortgage File except for the documents which have been delivered to the trustee or which have been submitted for recording and not yet returned; 

31.

as of the Cut-off Date, the range of original Mortgage Loan-to-Value Ratios of the Group 1 Mortgage Loans is 17.71% to 95.00% and approximately 7.27% of the Group 1 Mortgage Loans by aggregate Stated Principal Balance of the Group 1 Mortgage Loans as of the Cut-Off Date, had Mortgage Loan-to-Value Ratios at origination in excess of 80%, and the range of original Mortgage Loan-to-Value Ratios of the Group 2 Mortgage Loans is 14.90% to 95.00% and approximately 8.00% of the Group 2 Mortgage Loans by aggregate Stated Principal Balance of the Group 2 Mortgage Loans as of the Cut-Off Date, had Mortgage Loan-to-Value Ratios at origination in excess of 80%;  Each such Mortgage Loan is subject to a Primary Insurance Policy;

32.

with respect to each Mortgage Loan that has a prepayment penalty feature, each such prepayment penalty is enforceable and, at the time such Mortgage Loan was originated, each prepayment penalty complied with applicable federal, state and local law, subject to federal preemption where applicable; 

33.

with respect to each Mortgage Loan, the related servicing agreement requires the related Servicer to deposit into the related Protected Account an amount equal to all payments of principal and interest on such Mortgage Loan that are Delinquent at the close of business on the related Determination Date and not previously advanced by such Servicer.  The obligation of such Servicer to advance such payments as to such Mortgage Loan will continue through the final disposition or liquidation of the Mortgaged Property, unless such Servicer deems such advance to be nonrecoverable from liquidation proceeds, REO disposition proceeds, condemnation proceeds or insurance proceeds with respect to such Mortgage Loan; 

34.

Each Subgroup 1-1 or Subgroup 2-1 Loan is in compliance with the anti-predatory lending eligibility for purchase requirements of Fannie Mae’s Selling Guide; 

35.

No Subgroup 1-1 or Subgroup 2-1 Loan is a balloon mortgage loan that has an original stated maturity of less than seven (7) years; 

36.

No Subgroup 1-1 or Subgroup 2-1 Loan that is a “residential mortgage transaction” within the meaning of the federal Truth in Lending Act, Regulation Z, 12 CFR Section 226.2, has either an “annual percentage rate” or “total points and fees” payable by the borrower that exceeds the applicable thresholds under HOEPA;  

37.

No Subgroup 1-1 or Subgroup 2-1 Loan is a “High-Cost Home Loan” as defined in the Georgia Fair Lending Act, as amended (the “Georgia Act”).  No Subgroup 1-1 or Subgroup 2-1 Loan subject to the Georgia Fair Lending Act and secured by owner occupied real property or an owner occupied manufactured home located in the State of Georgia was originated (or modified) on or after October 1, 2002 through and including March 6, 2003;  

38.

No Subgroup 1-1 or Subgroup 2-1 Loan is a “High-Cost Home Loan” as defined in New York Banking Law 6-1; 

39.

No Subgroup 1-1 or Subgroup 2-1 Loan is a “High-Cost Home Loan” as defined in the Arkansas Home Loan Protection Act effective July 16, 2003 (Act 1340 of 2003); 

40.

No Subgroup 1-1 or Subgroup 2-1 Loan is a “High-Cost Home Loan” as defined in the Kentucky high-cost home loan statute effective June 24, 2003 (Ky. Rev. Stat. Section 360.100); 

41.

No Subgroup 1-1 or Subgroup 2-1 Loan is a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act effective November 27, 2003 (N.J.S.A. 46:10B-22 et seq.); 

42.

No Subgroup 1-1 or Subgroup 2-1 Loan is a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act effective January 1, 2004 (N.M. Stat. Ann. §§ 58-21A-1 et seq.); 

43.

No Subgroup 1-1 or Subgroup 2-1 Loan is a “High-Risk Home Loan” as defined in the Illinois High-Risk Home Loan Act effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.); 

44.

No Subgroup 1-1 or Subgroup 2-1 Loan is a “High-Cost Home Subgroup 1-1 or Subgroup 2-1 Loan ” as defined in the Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004 (Mass. Ann. Laws Ch. 183C); 

45.

No Subgroup 1-1 or Subgroup 2-1 Loan is a “High Cost Home Loan” as defined in the Indiana Home Loan Practices Act, effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9); 

46.

No Subgroup 1-1 or Subgroup 2-1 Loan is a “High-Risk Home Loan” as defined in the Rhode Island Home Loan Protection Act, effective December 31, 2006 (R.I. Gen. Laws Sections 34-25.2-1 through 34-25.2-15); 

47.

No Subgroup 1-1 or Subgroup 2-1 Loan is a “High-Risk Home Loan” as defined in the Tennessee Home Loan Protection Act, effective January 1, 2007 (Tenn. Code Ann. Sections 4520-101, et seq.); 

48.

No borrower was required to purchase any single premium credit insurance policy (e.g., life, mortgage, disability, accident, unemployment, or health insurance product) or debt cancellation agreement as a condition of obtaining the extension of credit. No borrower obtained a prepaid single-premium credit insurance policy (e.g., life, mortgage, disability, accident, unemployement, or health insurance product) or debt cancellation agreement in connection with the origination of the Subgroup 1-1 or Subgroup 2-1 Loan .  No proceeds from any Subgroup 1-1 or Subgroup 2-1 Loan were used to purchase single premium credit insurance policies (e.g., life, mortgage, disability, accident, unemployment, or health insurance product) or debt cancellation agreements as part of the origination of, or as a condition to closing, such Subgroup 1-1 or Subgroup 2-1 Loan; 

49.

With respect to any Subgroup 1-1 or Subgroup 2-1 Loan that contains a provision permitting imposition of a premium upon a prepayment prior to maturity: (i) prior to the loan’s origination, the borrower agreed to such premium in exchange for a monetary benefit, including but not limited to a rate or fee reduction, (ii) prior to the loan’s origination, the borrower was offered the option of obtaining a mortgage loan that did not require payment of such a premium, (iii) the prepayment premium is disclosed to the borrower in the loan documents pursuant to applicable state and federal law, (iv) the duration of the prepayment period shall not exceed three (3) years from the date of the note, unless the loan was modified to reduce the prepayment period to no more than three years from the date of the note and the borrower was notified in writing of such reduction in prepayment period, and (v) notwithstanding any state or federal law to the contrary, the Servicer shall not impose such prepayment premium in any instance when the mortgage debt is accelerated as the result of the borrower’s default in making the loan payments; 

50.

The methodology used in underwriting the extension of credit for each Subgroup 1-1 or Subgroup 2-1 Loan does not rely on the extent of the borrower’s equity in the collateral as the principal determining factor in approving such credit extension, but also considers credit-related factors to determine at origination whether the borrower had a reasonable ability to make timely payments on the Subgroup 1-1 or Subgroup 2-1 Loan; 

51.

All points and fees related to each Subgroup 1-1 or Subgroup 2-1 Loan were disclosed in writing to the borrower in accordance with applicable state and federal law and regulation. No borrower was charged “points and fees” (whether or not financed) in an amount that exceeds the greater of (1) 5% of the principal amount of the Subgroup 1-1 or Subgroup 2-1 Loan or (2) $1,000; such limitation is calculated in accordance with Fannie Mae’s requirements as set forth in the Fannie Mae Selling Guide; 

52.

No Subgroup 1-1 or Subgroup 2-1 Loan that was originated on or after October 31, 2004, is subject to mandatory arbitration except when the terms of the arbitration also contain a waiver provision that provides that in the event of a sale or transfer of the Subgroup 1-1 or Subgroup 2-1 Loan or interest in the Subgroup 1-1 or Subgroup 2-1 Loan to Fannie Mae, the terms of the arbitration are null and void and cannot be reinstated. The transferor will covenant in the Pooling and Servicing Agreement that the seller or servicer of the Subgroup 1-1 or Subgroup 2-1 Loan, as applicable, will notify the borrower in writing within 60 days of the sale or transfer of such Subgroup 1-1 or Subgroup 2-1 Loan to Fannie Mae that the terms of the arbitration are null and void. 

53.

With respect to any Subgroup 1-1 or Subgroup 2-1 Loan, the borrower was assigned the highest credit grade available with respect to a mortgage loan product offered by such Subgroup 1-1 or Subgroup 2-1 Loan ’s originator, based on a comprehensive assessment of risk factors, including the borrower’s credit history. 

54.

All fees and charges (including finance charges) and whether or not financed, assessed, collected or to be collected in connection with the origination and servicing of each Subgroup 1-1 or Subgroup 2-1 Loan has been disclosed in writing to the borrower in accordance with applicable state and federal law and regulation; and 

55.

The applicable Servicer will transmit full-file credit reporting data for each Subgroup 1-1 or Subgroup 2-1 Loan pursuant to Fannie Mae Guide Announcement 95-19, and that for each Subgroup 1-1 or Subgroup 2-1 Loan, the applicable Servicer will report one of the following statuses each month as follows: new origination, current, delinquent (30-, 60-, 90-days, etc.), foreclosed, or charged-off. 

SCHEDULE III

GROUP 1 CERTIFICATE CAP CONTRACT SCHEDULE

				
	Distribution Date

	Group 1 Certificate Cap Notional Amount

	Strike Rate (%)

	Ceiling Rate (%)

	May 2007

	$4,996,660.00 

	5.420

	5.445

	June 2007

	$4,978,897.14 

	5.523

	5.570

	July 2007

	$4,954,137.14 

	5.625

	5.695

	August 2007

	$4,923,422.86 

	5.720

	5.820

	September 2007

	$4,886,120.00 

	5.811

	5.945

	October 2007

	$4,842,242.86 

	5.906

	6.070

	November 2007

	$4,791,848.57 

	6.002

	6.283

	December 2007

	$4,736,111.43 

	6.095

	6.420

	January 2008

	$4,674,145.71 

	6.178

	6.558

	February 2008

	$4,605,682.86 

	6.269

	6.695

	March 2008

	$4,531,105.71 

	6.360

	6.833

	April 2008

	$4,450,502.86 

	6.445

	6.970

	May 2008

	$4,316,931.43 

	6.502

	7.062

	June 2008

	$4,226,860.00 

	6.560

	7.153

	July 2008

	$4,131,948.57 

	6.619

	7.245

	August 2008

	$4,035,040.00 

	6.677

	7.337

	September 2008

	$3,937,685.71 

	6.738

	7.428

	October 2008

	$3,841,542.86 

	6.807

	7.520

	November 2008

	$3,679,022.86 

	6.866

	7.612

	December 2008

	$3,591,814.29 

	6.930

	7.703

	January 2009

	$3,506,917.14 

	7.002

	7.795

	February 2009

	$3,423,625.71 

	7.063

	7.887

	March 2009

	$3,342,340.00 

	7.128

	7.978

	April 2009

	$3,262,271.43 

	7.203

	8.070

	May 2009

	$3,108,014.29 

	7.249

	8.139

	June 2009

	$3,030,720.00 

	7.299

	8.208

	July 2009

	$2,953,922.86 

	7.359

	8.276

	August 2009

	$2,879,137.14 

	7.406

	8.345

	September 2009

	$2,803,505.71 

	7.457

	8.414

	October 2009

	$2,729,485.71 

	7.515

	8.483

	November 2009

	$2,504,388.57 

	7.564

	8.551

	December 2009

	$2,436,991.43 

	7.616

	8.620

	January 2010

	$2,370,134.29 

	7.674

	8.689

	February 2010

	$2,304,997.14 

	7.723

	8.758

	March 2010

	$2,241,517.14 

	7.775

	8.826

	April 2010

	$2,179,837.14 

	7.830

	8.895

	May 2010

	$2,002,714.29 

	7.830

	8.895

	June 2010

	$1,947,751.43 

	7.831

	8.895

	July 2010

	$1,894,465.71 

	7.834

	8.895

	August 2010

	$1,842,802.86 

	7.834

	8.895

	September 2010

	$1,792,717.14 

	7.836

	8.895

	October 2010

	$1,744,162.86 

	7.840

	8.895

	November 2010

	$1,584,762.86 

	7.840

	8.895

	December 2010

	$1,542,240.00 

	7.842

	8.895

	January 2011

	$1,501,017.14 

	7.846

	8.895

	February 2011

	$1,461,051.43 

	7.846

	8.895

	March 2011

	$1,422,291.43 

	7.847

	8.895

	April 2011

	$1,384,705.71 

	7.850

	8.895

	May 2011

	$1,241,968.57 

	7.850

	8.895

	June 2011

	$1,209,757.14 

	7.852

	8.895

	July 2011

	$1,178,525.71 

	7.856

	8.895

	August 2011

	$1,148,248.57 

	7.856

	8.895

	September 2011

	$1,118,888.57 

	7.857

	8.895

	October 2011

	$1,090,391.43 

	7.860

	8.895

	November 2011

	$962,148.57 

	7.860

	8.895

	December 2011

	$938,065.71 

	7.862

	8.895

	January 2012

	$914,720.00 

	7.868

	8.895

	February 2012

	$892,088.57 

	7.869

	8.895

	March 2012

	$870,151.43 

	7.870

	8.895

	April 2012

	$848,880.00 

	7.871

	8.895

	May 2012

	$727,740.00 

	7.872

	8.895

	June 2012

	$709,722.86 

	7.873

	8.895

	July 2012

	$692,217.14 

	7.876

	8.895

	August 2012

	$675,194.29 

	7.877

	8.895

	September 2012

	$658,642.86 

	7.878

	8.895

	October 2012

	$642,542.86 

	7.880

	8.895

	November 2012

	$540,545.71 

	7.881

	8.895

	December 2012

	$527,297.14 

	7.883

	8.895

	January 2013

	$514,417.14 

	7.886

	8.895

	February 2013

	$502,005.71 

	7.887

	8.895

	March 2013

	$489,997.14 

	7.888

	8.895

	April 2013

	$478,388.57 

	7.889

	8.895

	May 2013

	$403,311.43 

	7.890

	8.895

	June 2013

	$393,914.29 

	7.892

	8.895

	July 2013

	$384,777.14 

	7.895

	8.895

	August 2013

	$375,897.14 

	7.897

	8.895

	September 2013

	$367,262.86 

	7.898

	8.895

	October 2013

	$358,871.43 

	7.900

	8.895

	November 2013

	$318,402.86 

	7.901

	8.895

	December 2013

	$306,268.57 

	7.902

	8.895

	January 2014

	$294,597.14 

	7.905

	8.895

	February 2014

	$283,365.71 

	7.907

	8.895

	March 2014

	$272,562.86 

	7.907

	8.895

	April 2014

	$262,168.57 

	7.908

	8.895

	May 2014

	$252,168.57 

	7.909

	8.895

	June 2014

	$242,548.57 

	7.910

	8.895

	July 2014

	$233,294.29 

	7.908

	8.895

	August 2014

	$224,394.29 

	7.910

	8.895

	September 2014

	$215,828.57 

	7.911

	8.895

	October 2014

	$207,591.43 

	7.912

	8.895

	November 2014

	$199,665.71 

	7.913

	8.895

	December 2014

	$192,040.00 

	7.914

	8.895

	January 2015

	$184,705.71 

	7.915

	8.895

	February 2015

	$177,651.43 

	7.917

	8.895

	March 2015

	$170,862.86 

	7.917

	8.895

	April 2015

	$164,334.29 

	7.919

	8.895

	May 2015

	$158,054.29 

	7.920

	8.895

	June 2015

	$152,011.43 

	7.921

	8.895

	July 2015

	$146,200.00 

	7.922

	8.895

	August 2015

	$140,608.57 

	7.923

	8.895

	September 2015

	$135,231.43 

	7.924

	8.895

	October 2015

	$7,142,857.14 

	6.450

	6.945

	November 2015

	$7,142,857.14 

	5.150

	5.320

	December 2015

	$7,142,857.14 

	5.000

	5.320

	January 2016

	$7,142,857.14 

	5.000

	5.320

	February 2016

	$7,142,857.14 

	5.000

	5.320

	March 2016

	$7,142,857.14 

	5.000

	5.320

	April 2016

	$7,142,857.14 

	5.000

	5.320

	May 2016

	$7,142,857.14 

	4.200

	4.320

	June 2016

	$7,142,857.14 

	4.000

	4.320

	July 2016

	$7,142,857.14 

	4.000

	4.320

	August 2016

	$7,142,857.14 

	4.000

	4.320

	September 2016

	$7,142,857.14 

	4.000

	4.320

	October 2016

	$7,142,857.14 

	4.000

	4.320

	November 2016

	$7,142,857.14 

	4.000

	4.320

	December 2016

	$7,142,857.14 

	4.000

	4.320

	January 2017

	$7,142,857.14 

	4.000

	4.320

	February 2017

	$7,142,857.14 

	4.000

	4.320

	March 2017

	$7,142,857.14 

	4.000

	4.320

	April 2017

	$7,142,857.14 

	4.000

	4.320

	May 2017

	$7,142,857.14 

	4.000

	4.320

	June 2017

	$7,142,857.14 

	4.000

	4.320

	July 2017

	$7,142,857.14 

	4.000

	4.320

	August 2017 and thereafter

	N/A

	N/A

	N/A

SCHEDULE IV

GROUP 1 BASIS RISK CAP CONTRACT SCHEDULE

				
	Distribution Date

	Group 1 Basis Risk Cap Notional Amount

	Strike Rate (%)

	Ceiling Rate (%)

	May 2007

	$4,996,662.86 

	9.200

	9.810

	June 2007

	$4,894,462.86 

	6.809

	9.810

	July 2007

	$4,801,328.57 

	7.225

	9.810

	August 2007

	$4,710,888.57 

	7.028

	9.810

	September 2007

	$4,622,260.00 

	6.990

	9.810

	October 2007

	$4,535,365.71 

	7.193

	9.810

	November 2007

	$4,450,171.43 

	7.223

	9.810

	December 2007

	$4,366,640.00 

	7.439

	9.810

	January 2008

	$4,284,728.57 

	7.155

	9.810

	February 2008

	$4,204,045.71 

	7.366

	9.810

	March 2008

	$4,124,780.00 

	7.861

	9.810

	April 2008

	$4,046,865.71 

	7.303

	9.810

	May 2008

	$3,970,337.14 

	7.882

	9.810

	June 2008

	$3,895,271.43 

	7.592

	9.810

	July 2008

	$3,821,677.14 

	7.827

	9.810

	August 2008

	$3,749,505.71 

	7.721

	9.810

	September 2008

	$3,678,748.57 

	7.697

	9.810

	October 2008

	$3,609,365.71 

	7.938

	9.810

	November 2008

	$3,541,340.00 

	7.842

	9.810

	December 2008

	$3,474,640.00 

	8.090

	9.810

	January 2009

	$3,408,685.71 

	7.797

	9.810

	February 2009

	$3,342,980.00 

	7.980

	9.810

	March 2009

	$3,277,025.71 

	8.844

	9.810

	April 2009

	$3,208,774.29 

	7.936

	9.810

	May 2009

	$3,139,982.86 

	8.641

	9.810

	June 2009

	$3,071,554.29 

	8.338

	9.810

	July 2009

	$3,002,011.43 

	8.609

	9.810

	August 2009

	$2,933,800.00 

	8.541

	9.810

	September 2009

	$2,866,731.43 

	8.529

	9.810

	October 2009

	$2,799,151.43 

	8.811

	9.810

	November 2009

	$2,732,494.29 

	8.758

	9.810

	December 2009

	$2,667,057.14 

	9.053

	9.810

	January 2010

	$2,602,874.29 

	8.745

	9.810

	February 2010

	$2,540,154.29 

	9.010

	9.810

	March 2010

	$2,478,808.57 

	9.200

	9.810

	April 2010

	$2,418,691.43 

	9.010

	9.810

	May 2010

	$2,360,000.00 

	9.200

	9.810

	June 2010

	$2,302,711.43 

	9.009

	9.810

	July 2010

	$2,246,788.57 

	9.200

	9.810

	August 2010

	$2,192,194.29 

	9.008

	9.810

	September 2010

	$2,138,891.43 

	9.008

	9.810

	October 2010

	$2,086,862.86 

	9.200

	9.810

	November 2010

	$2,036,071.43 

	9.007

	9.810

	December 2010

	$1,986,477.14 

	9.200

	9.810

	January 2011

	$1,938,062.86 

	9.007

	9.810

	February 2011

	$1,890,797.14 

	9.006

	9.810

	March 2011

	$1,844,642.86 

	9.200

	9.810

	April 2011

	$1,799,574.29 

	9.006

	9.810

	May 2011

	$1,755,565.71 

	9.200

	9.810

	June 2011

	$1,712,602.86 

	9.006

	9.810

	July 2011

	$1,670,657.14 

	9.200

	9.810

	August 2011

	$1,629,714.29 

	9.005

	9.810

	September 2011

	$1,589,734.29 

	9.005

	9.810

	October 2011

	$1,550,662.86 

	9.200

	9.810

	November 2011

	$1,512,508.57 

	9.008

	9.810

	December 2011

	$1,475,271.43 

	9.200

	9.810

	January 2012

	$1,438,928.57 

	9.048

	9.810

	February 2012

	$1,403,460.00 

	9.094

	9.810

	March 2012

	$1,368,842.86 

	9.200

	9.810

	April 2012

	$1,335,057.14 

	9.102

	9.810

	May 2012

	$1,302,080.00 

	9.200

	9.810

	June 2012

	$1,269,897.14 

	9.102

	9.810

	July 2012

	$1,238,488.57 

	9.200

	9.810

	August 2012

	$1,207,834.29 

	9.102

	9.810

	September 2012

	$1,177,917.14 

	9.102

	9.810

	October 2012

	$1,148,720.00 

	9.200

	9.810

	November 2012

	$1,120,222.86 

	9.102

	9.810

	December 2012

	$1,092,414.29 

	9.200

	9.810

	January 2013

	$1,065,274.29 

	9.102

	9.810

	February 2013

	$1,038,785.71 

	9.102

	9.810

	March 2013

	$1,012,937.14 

	9.200

	9.810

	April 2013

	$987,708.57 

	9.102

	9.810

	May 2013

	$963,088.57 

	9.200

	9.810

	June 2013

	$939,062.86 

	9.102

	9.810

	July 2013

	$915,611.43 

	9.200

	9.810

	August 2013

	$892,728.57 

	9.102

	9.810

	September 2013

	$870,397.14 

	9.102

	9.810

	October 2013

	$848,600.00 

	9.200

	9.810

	November 2013

	$827,331.43 

	9.102

	9.810

	December 2013

	$806,574.29 

	9.200

	9.810

	January 2014

	$786,320.00 

	9.102

	9.810

	February 2014

	$766,551.43 

	9.102

	9.810

	March 2014

	$747,260.00 

	9.200

	9.810

	April 2014

	$728,434.29 

	9.102

	9.810

	May 2014

	$710,062.86 

	9.200

	9.810

	June 2014

	$692,134.29 

	9.102

	9.810

	July 2014

	$674,637.14 

	9.200

	9.810

	August 2014

	$657,562.86 

	9.102

	9.810

	September 2014

	$640,902.86 

	9.102

	9.810

	October 2014

	$624,642.86 

	9.200

	9.810

	November 2014

	$608,777.14 

	9.102

	9.810

	December 2014

	$593,291.43 

	9.200

	9.810

	January 2015

	$578,182.86 

	9.102

	9.810

	February 2015

	$563,437.14 

	9.102

	9.810

	March 2015

	$549,051.43 

	9.200

	9.810

	April 2015

	$535,008.57 

	9.102

	9.810

	May 2015

	$521,308.57 

	9.200

	9.810

	June 2015

	$507,940.00 

	9.102

	9.810

	July 2015

	$494,891.43 

	9.200

	9.810

	August 2015

	$482,162.86 

	9.102

	9.810

	September 2015 and thereafter

	N/A

	N/A

	N/A

SCHEDULE V

GROUP 2 CERTIFICATE CAP CONTRACT SCHEDULE

				
	Distribution Date

	Group 2 Certificate Cap Notional Amount

	Strike Rate (%)

	Ceiling Rate (%)

	May 2007

	$2,334,311.43 

	5.590

	5.764

	June 2007

	$2,322,822.86 

	5.646

	5.850

	July 2007

	$2,306,960.00 

	5.649

	5.850

	August 2007

	$2,287,628.57 

	5.639

	5.850

	September 2007

	$2,264,254.29 

	5.621

	5.850

	October 2007

	$2,236,637.14 

	5.681

	5.965

	November 2007

	$2,204,991.43 

	5.749

	6.093

	December 2007

	$2,169,577.14 

	5.808

	6.215

	January 2008

	$2,130,257.14 

	5.854

	6.346

	February 2008

	$2,087,162.86 

	5.914

	6.473

	March 2008

	$2,040,331.43 

	5.967

	6.593

	April 2008

	$1,990,065.71 

	6.012

	6.717

	May 2008

	$1,929,205.71 

	6.065

	6.835

	June 2008

	$1,873,208.57 

	6.114

	6.947

	July 2008

	$1,814,665.71 

	6.174

	7.070

	August 2008

	$1,754,928.57 

	6.223

	7.181

	September 2008

	$1,695,305.71 

	6.274

	7.284

	October 2008

	$1,636,774.29 

	6.339

	7.383

	November 2008

	$1,569,582.86 

	6.380

	7.475

	December 2008

	$1,515,891.43 

	6.429

	7.568

	January 2009

	$1,464,094.29 

	6.490

	7.650

	February 2009

	$1,414,037.14 

	6.528

	7.731

	March 2009

	$1,365,625.71 

	6.570

	7.807

	April 2009

	$1,318,837.14 

	6.622

	7.865

	May 2009

	$1,262,065.71 

	6.647

	7.921

	June 2009

	$1,219,091.43 

	6.679

	7.974

	July 2009

	$1,177,628.57 

	6.718

	8.007

	August 2009

	$1,137,628.57 

	6.734

	8.043

	September 2009

	$1,099,020.00 

	6.758

	8.078

	October 2009

	$1,061,780.00 

	6.784

	8.095

	November 2009

	$1,001,834.29 

	6.784

	8.102

	December 2009

	$967,782.86 

	6.792

	8.109

	January 2010

	$934,914.29 

	6.808

	8.108

	February 2010

	$903,171.43 

	6.804

	8.105

	March 2010

	$872,508.57 

	6.806

	8.103

	April 2010

	$842,914.29 

	6.806

	8.086

	May 2010

	$795,288.57 

	6.795

	8.071

	June 2010

	$768,011.43 

	6.789

	8.057

	July 2010

	$741,694.29 

	6.783

	8.036

	August 2010

	$715,877.14 

	6.771

	8.017

	September 2010

	$691,014.29 

	6.763

	7.998

	October 2010

	$667,068.57 

	6.752

	7.966

	November 2010

	$625,720.00 

	6.733

	7.935

	December 2010

	$604,057.14 

	6.710

	7.890

	January 2011

	$583,082.86 

	6.695

	7.851

	February 2011

	$562,874.29 

	6.663

	7.799

	March 2011

	$543,308.57 

	6.631

	7.742

	April 2011

	$524,237.14 

	6.596

	7.677

	May 2011

	$488,642.86 

	6.558

	7.613

	June 2011

	$471,531.43 

	6.517

	7.539

	July 2011

	$455,065.71 

	6.475

	7.457

	August 2011

	$439,220.00 

	6.426

	7.375

	September 2011

	$423,931.43 

	6.371

	7.281

	October 2011

	$409,211.43 

	6.315

	7.182

	November 2011

	$378,888.57 

	3.873

	5.836

	December 2011

	$365,731.43 

	3.880

	5.008

	January 2012

	$353,071.43 

	3.911

	5.018

	February 2012

	$340,880.00 

	3.916

	5.030

	March 2012

	$329,145.71 

	3.920

	5.043

	April 2012

	$317,794.29 

	3.929

	5.055

	May 2012

	$290,780.00 

	3.933

	5.066

	June 2012

	$280,565.71 

	3.939

	5.076

	July 2012

	$270,700.00 

	3.950

	5.086

	August 2012

	$261,208.57 

	3.955

	5.094

	September 2012

	$252,082.86 

	3.962

	5.101

	October 2012

	$243,294.29 

	3.972

	5.107

	November 2012

	$221,082.86 

	3.977

	5.112

	December 2012

	$213,337.14 

	3.985

	5.115

	January 2013

	$205,848.57 

	4.003

	5.117

	February 2013

	$198,645.71 

	4.008

	5.117

	March 2013

	$191,714.29 

	4.013

	5.116

	April 2013

	$185,048.57 

	4.020

	5.116

	May 2013

	$168,482.86 

	4.025

	5.116

	June 2013

	$162,611.43 

	4.033

	5.118

	July 2013

	$156,965.71 

	4.050

	5.122

	August 2013

	$151,537.14 

	4.056

	5.126

	September 2013

	$146,317.14 

	4.063

	5.132

	October 2013

	$141,300.00 

	4.071

	5.140

	November 2013

	$126,785.71 

	4.077

	5.149

	December 2013

	$122,154.29 

	4.085

	5.159

	January 2014

	$117,702.86 

	4.101

	5.172

	February 2014

	$113,420.00 

	4.107

	5.186

	March 2014

	$109,302.86 

	4.111

	5.201

	April 2014

	$105,342.86 

	4.114

	5.216

	May 2014 and thereafter

	N/A

	N/A

	N/A

SCHEDULE VI

GROUP 2 BASIS RISK CAP CONTRACT SCHEDULE

				
	Distribution Date

	Group 2 Basis Risk Cap Notional Amount

	Strike Rate (%)

	Ceiling Rate (%)

	May 2007

	$2,260,385.71 

	9.200

	9.200

	June 2007

	$2,245,305.71 

	6.892

	9.200

	July 2007

	$2,231,988.57 

	7.548

	9.200

	August 2007

	$2,217,220.00 

	7.439

	9.200

	September 2007

	$2,200,137.14 

	7.407

	9.200

	October 2007

	$2,180,737.14 

	7.629

	9.200

	November 2007

	$2,159,074.29 

	7.505

	9.200

	December 2007

	$2,135,080.00 

	7.733

	9.200

	January 2008

	$2,108,571.43 

	7.442

	9.200

	February 2008

	$2,074,345.71 

	7.584

	9.200

	March 2008

	$2,033,134.29 

	8.096

	9.200

	April 2008

	$1,987,091.43 

	7.524

	9.200

	May 2008

	$1,937,042.86 

	7.943

	9.200

	June 2008

	$1,887,660.00 

	7.649

	9.200

	July 2008

	$1,839,491.43 

	7.885

	9.200

	August 2008

	$1,792,522.86 

	7.787

	9.200

	September 2008

	$1,746,671.43 

	7.761

	9.200

	October 2008

	$1,701,962.86 

	8.002

	9.200

	November 2008

	$1,658,154.29 

	8.122

	9.200

	December 2008

	$1,615,417.14 

	8.382

	9.200

	January 2009

	$1,573,468.57 

	8.082

	9.200

	February 2009

	$1,529,517.14 

	8.279

	9.200

	March 2009

	$1,486,357.14 

	9.176

	9.200

	April 2009

	$1,443,671.43 

	8.239

	9.200

	May 2009

	$1,401,902.86 

	8.745

	9.200

	June 2009

	$1,361,088.57 

	8.437

	9.200

	July 2009

	$1,320,831.43 

	8.707

	9.200

	August 2009

	$1,289,248.57 

	8.648

	9.200

	September 2009

	$1,258,020.00 

	8.633

	9.200

	October 2009

	$1,227,111.43 

	8.915

	9.200

	November 2009 and thereafter

	N/A

	N/A

	N/A

SCHEDULE VII

CLASS 2-2A3 BASIS RISK CAP CONTRACT SCHEDULE

				
	Distribution Date

	Class 2-2A3 Basis Risk Cap Notional Amount

	Strike Rate (%)

	Ceiling Rate (%)

	May 2007

	$85,714.29 

	99.000

	N/A

	June 2007

	$85,714.29 

	6.276

	N/A

	July 2007

	$85,714.29 

	6.479

	N/A

	August 2007

	$85,714.29 

	6.388

	N/A

	September 2007

	$85,714.29 

	6.369

	N/A

	October 2007

	$85,714.29 

	6.572

	N/A

	November 2007

	$85,714.29 

	6.478

	N/A

	December 2007

	$85,714.29 

	6.691

	N/A

	January 2008

	$85,714.29 

	6.514

	N/A

	February 2008

	$85,714.29 

	6.712

	N/A

	March 2008

	$85,714.29 

	7.239

	N/A

	April 2008

	$85,714.29 

	6.791

	N/A

	May 2008

	$85,714.29 

	7.167

	N/A

	June 2008

	$85,714.29 

	6.916

	N/A

	July 2008

	$85,714.29 

	7.138

	N/A

	August 2008

	$85,714.29 

	7.060

	N/A

	September 2008

	$85,714.29 

	7.041

	N/A

	October 2008

	$85,714.29 

	7.416

	N/A

	November 2008

	$85,714.29 

	7.459

	N/A

	December 2008

	$85,714.29 

	7.900

	N/A

	January 2009

	$85,714.29 

	7.637

	N/A

	February 2009

	$85,714.29 

	7.870

	N/A

	March 2009

	$85,714.29 

	8.674

	N/A

	April 2009

	$85,714.29 

	7.731

	N/A

	May 2009

	$85,714.29 

	8.300

	N/A

	June 2009

	$85,714.29 

	7.961

	N/A

	July 2009

	$85,714.29 

	8.171

	N/A

	August 2009

	$85,714.29 

	8.260

	N/A

	September 2009

	$85,714.29 

	8.212

	N/A

	October 2009

	$85,714.29 

	8.444

	N/A

	November 2009

	$85,714.29 

	9.120

	N/A

	December 2009

	$85,714.29 

	9.435

	N/A

	January 2010

	$85,714.29 

	9.120

	N/A

	February 2010

	$85,714.29 

	9.119

	N/A

	March 2010

	$85,714.29 

	10.129

	N/A

	April 2010

	$85,714.29 

	9.116

	N/A

	May 2010

	$85,714.29 

	9.431

	N/A

	June 2010

	$85,714.29 

	9.116

	N/A

	July 2010

	$85,714.29 

	9.431

	N/A

	August 2010

	$85,714.29 

	9.116

	N/A

	September 2010

	$85,714.29 

	9.116

	N/A

	October 2010

	$85,714.29 

	9.431

	N/A

	November 2010

	$85,714.29 

	9.116

	N/A

	December 2010

	$85,714.29 

	9.431

	N/A

	January 2011

	$85,714.29 

	9.116

	N/A

	February 2011

	$85,714.29 

	9.116

	N/A

	March 2011

	$85,714.29 

	10.128

	N/A

	April 2011

	$85,714.29 

	9.116

	N/A

	May 2011

	$85,714.29 

	9.431

	N/A

	June 2011

	$85,714.29 

	9.126

	N/A

	July 2011

	$85,714.29 

	9.441

	N/A

	August 2011

	$85,714.29 

	9.126

	N/A

	September 2011

	$85,714.29 

	9.126

	N/A

	October 2011

	$85,714.29 

	9.441

	N/A

	November 2011

	$85,714.29 

	9.126

	N/A

	December 2011

	$85,714.29 

	9.441

	N/A

	January 2012

	$85,714.29 

	9.126

	N/A

	February 2012

	$85,714.29 

	9.126

	N/A

	March 2012

	$85,714.29 

	9.778

	N/A

	April 2012

	$85,714.29 

	9.126

	N/A

	May 2012

	$85,714.29 

	9.441

	N/A

	June 2012

	$85,714.29 

	9.126

	N/A

	July 2012

	$85,714.29 

	9.441

	N/A

	August 2012

	$85,714.29 

	9.126

	N/A

	September 2012

	$85,714.29 

	9.126

	N/A

	October 2012

	$85,714.29 

	9.441

	N/A

	November 2012

	$85,714.29 

	9.126

	N/A

	December 2012

	$85,714.29 

	9.441

	N/A

	January 2013

	$85,714.29 

	9.126

	N/A

	February 2013

	$85,714.29 

	9.126

	N/A

	March 2013

	$85,714.29 

	10.139

	N/A

	April 2013

	$85,714.29 

	9.126

	N/A

	May 2013

	$85,714.29 

	9.442

	N/A

	June 2013

	$85,714.29 

	9.126

	N/A

	July 2013

	$85,714.29 

	9.442

	N/A

	August 2013

	$85,714.29 

	9.126

	N/A

	September 2013

	$85,714.29 

	9.126

	N/A

	October 2013

	$85,714.29 

	9.442

	N/A

	November 2013

	$85,714.29 

	9.126

	N/A

	December 2013

	$85,714.29 

	9.442

	N/A

	January 2014

	$85,714.29 

	9.126

	N/A

	February 2014

	$85,714.29 

	9.126

	N/A

	March 2014

	$85,714.29 

	10.140

	N/A

	April 2014

	$85,714.29 

	9.126

	N/A

	May 2014

	$85,714.29 

	9.442

	N/A

	June 2014

	$85,714.29 

	9.126

	N/A

	July 2014

	$85,714.29 

	9.442

	N/A

	August 2014

	$85,714.29 

	9.127

	N/A

	September 2014

	$85,714.29 

	9.127

	N/A

	October 2014

	$85,714.29 

	9.442

	N/A

	November 2014

	$85,714.29 

	9.127

	N/A

	December 2014

	$85,714.29 

	9.442

	N/A

	January 2015

	$85,714.29 

	9.127

	N/A

	February 2015

	$85,714.29 

	9.127

	N/A

	March 2015

	$85,714.29 

	10.140

	N/A

	April 2015

	$85,714.29 

	9.127

	N/A

	May 2015

	$85,714.29 

	9.442

	N/A

	June 2015

	$85,714.29 

	9.127

	N/A

	July 2015

	$85,714.29 

	9.442

	N/A

	August 2015

	$85,714.29 

	9.127

	N/A

	September 2015

	$85,714.29 

	9.127

	N/A

	October 2015

	$85,714.29 

	9.442

	N/A

	November 2015

	$85,714.29 

	9.127

	N/A

	December 2015

	$85,714.29 

	9.442

	N/A

	January 2016

	$85,714.29 

	9.127

	N/A

	February 2016

	$85,714.29 

	9.127

	N/A

	March 2016

	$85,714.29 

	9.779

	N/A

	April 2016

	$85,714.29 

	9.127

	N/A

	May 2016

	$85,714.29 

	9.442

	N/A

	June 2016

	$85,714.29 

	9.127

	N/A

	July 2016

	$85,714.29 

	9.442

	N/A

	August 2016

	$85,714.29 

	9.127

	N/A

	September 2016

	$85,714.29 

	9.127

	N/A

	October 2016

	$85,714.29 

	9.442

	N/A

	November 2016

	$85,714.29 

	9.127

	N/A

	December 2016

	$85,714.29 

	9.442

	N/A

	January 2017

	$85,714.29 

	9.127

	N/A

	February 2017

	$85,714.29 

	9.127

	N/A

	March 2017

	$85,714.29 

	10.140

	N/A

	April 2017

	$85,714.29 

	9.127

	N/A

	May 2017

	$85,714.29 

	9.442

	N/A

	June 2017

	$85,714.29 

	9.127

	N/A

	July 2017

	$85,714.29 

	9.442

	N/A

	August 2017

	$85,714.29 

	9.127

	N/A

	September 2017

	$85,714.29 

	9.127

	N/A

	October 2017

	$85,714.29 

	9.442

	N/A

	November 2017

	$85,714.29 

	9.127

	N/A

	December 2017

	$85,714.29 

	9.442

	N/A

	January 2018

	$85,714.29 

	9.127

	N/A

	February 2018

	$85,714.29 

	9.127

	N/A

	March 2018

	$85,714.29 

	10.141

	N/A

	April 2018

	$85,714.29 

	9.127

	N/A

	May 2018

	$85,714.29 

	9.443

	N/A

	June 2018

	$85,714.29 

	9.127

	N/A

	July 2018

	$85,714.29 

	9.443

	N/A

	August 2018

	$85,714.29 

	9.127

	N/A

	September 2018

	$85,714.29 

	9.127

	N/A

	October 2018

	$85,714.29 

	9.443

	N/A

	November 2018

	$85,714.29 

	9.127

	N/A

	December 2018

	$85,714.29 

	9.443

	N/A

	January 2019

	$85,714.29 

	9.127

	N/A

	February 2019

	$85,668.57 

	9.127

	N/A

	March 2019

	$84,408.57 

	10.141

	N/A

	April 2019

	$83,157.14 

	9.128

	N/A

	May 2019

	$81,920.00 

	9.443

	N/A

	June 2019

	$80,691.43 

	9.128

	N/A

	July 2019

	$79,474.29 

	9.443

	N/A

	August 2019

	$78,268.57 

	9.128

	N/A

	September 2019

	$77,071.43 

	9.128

	N/A

	October 2019

	$75,888.57 

	9.443

	N/A

	November 2019

	$74,711.43 

	9.128

	N/A

	December 2019

	$73,548.57 

	9.443

	N/A

	January 2020

	$72,394.29 

	9.128

	N/A

	February 2020

	$71,251.43 

	9.128

	N/A

	March 2020

	$70,117.14 

	9.780

	N/A

	April 2020

	$68,991.43 

	9.128

	N/A

	May 2020

	$67,877.14 

	9.443

	N/A

	June 2020

	$66,774.29 

	9.128

	N/A

	July 2020

	$65,680.00 

	9.443

	N/A

	August 2020

	$64,594.29 

	9.128

	N/A

	September 2020

	$63,520.00 

	9.128

	N/A

	October 2020

	$62,454.29 

	9.443

	N/A

	November 2020

	$61,397.14 

	9.128

	N/A

	December 2020

	$60,348.57 

	9.443

	N/A

	January 2021

	$59,311.43 

	9.128

	N/A

	February 2021

	$58,282.86 

	9.128

	N/A

	March 2021

	$57,262.86 

	10.141

	N/A

	April 2021

	$56,251.43 

	9.128

	N/A

	May 2021

	$55,248.57 

	9.443

	N/A

	June 2021

	$54,257.14 

	9.128

	N/A

	July 2021

	$53,271.43 

	9.444

	N/A

	August 2021

	$52,297.14 

	9.128

	N/A

	September 2021

	$51,328.57 

	9.128

	N/A

	October 2021

	$50,371.43 

	9.444

	N/A

	November 2021

	$49,420.00 

	9.128

	N/A

	December 2021

	$48,477.14 

	9.444

	N/A

	January 2022

	$47,545.71 

	9.128

	N/A

	February 2022

	$46,620.00 

	9.128

	N/A

	March 2022

	$45,702.86 

	10.142

	N/A

	April 2022

	$44,791.43 

	9.129

	N/A

	May 2022

	$43,891.43 

	9.444

	N/A

	June 2022

	$42,997.14 

	9.129

	N/A

	July 2022

	$42,114.29 

	9.444

	N/A

	August 2022

	$41,237.14 

	9.129

	N/A

	September 2022

	$40,365.71 

	9.129

	N/A

	October 2022

	$39,502.86 

	9.444

	N/A

	November 2022

	$38,648.57 

	9.129

	N/A

	December 2022

	$37,802.86 

	9.444

	N/A

	January 2023

	$36,962.86 

	9.129

	N/A

	February 2023

	$36,131.43 

	9.129

	N/A

	March 2023

	$35,305.71 

	10.142

	N/A

	April 2023

	$34,488.57 

	9.129

	N/A

	May 2023

	$33,677.14 

	9.444

	N/A

	June 2023

	$32,874.29 

	9.129

	N/A

	July 2023

	$32,080.00 

	9.444

	N/A

	August 2023

	$31,288.57 

	9.129

	N/A

	September 2023

	$30,508.57 

	9.129

	N/A

	October 2023

	$29,731.43 

	9.444

	N/A

	November 2023

	$28,962.86 

	9.129

	N/A

	December 2023

	$28,202.86 

	9.445

	N/A

	January 2024

	$27,448.57 

	9.129

	N/A

	February 2024

	$26,700.00 

	9.129

	N/A

	March 2024

	$25,957.14 

	9.782

	N/A

	April 2024

	$25,222.86 

	9.129

	N/A

	May 2024

	$24,494.29 

	9.445

	N/A

	June 2024

	$23,771.43 

	9.129

	N/A

	July 2024

	$23,057.14 

	9.445

	N/A

	August 2024

	$22,345.71 

	9.130

	N/A

	September 2024

	$21,642.86 

	9.130

	N/A

	October 2024

	$20,945.71 

	9.445

	N/A

	November 2024

	$20,254.29 

	9.130

	N/A

	December 2024

	$19,571.43 

	9.445

	N/A

	January 2025

	$18,891.43 

	9.130

	N/A

	February 2025

	$18,220.00 

	9.130

	N/A

	March 2025

	$17,551.43 

	10.143

	N/A

	April 2025

	$16,891.43 

	9.130

	N/A

	May 2025

	$16,237.14 

	9.445

	N/A

	June 2025

	$15,585.71 

	9.130

	N/A

	July 2025

	$14,942.86 

	9.445

	N/A

	August 2025

	$14,305.71 

	9.130

	N/A

	September 2025

	$13,674.29 

	9.130

	N/A

	October 2025

	$13,045.71 

	9.446

	N/A

	November 2025

	$12,425.71 

	9.130

	N/A

	December 2025

	$11,811.43 

	9.446

	N/A

	January 2026

	$11,200.00 

	9.130

	N/A

	February 2026

	$10,594.29 

	9.130

	N/A

	March 2026

	$9,994.29 

	10.144

	N/A

	April 2026

	$9,402.86 

	9.131

	N/A

	May 2026

	$8,811.43 

	9.446

	N/A

	June 2026

	$8,228.57 

	9.131

	N/A

	July 2026

	$7,651.43 

	9.446

	N/A

	August 2026

	$7,077.14 

	9.131

	N/A

	September 2026

	$6,508.57 

	9.131

	N/A

	October 2026

	$5,945.71 

	9.446

	N/A

	November 2026

	$5,385.71 

	9.131

	N/A

	December 2026

	$4,834.29 

	9.446

	N/A

	January 2027

	$4,285.71 

	9.131

	N/A

	February 2027

	$3,742.86 

	9.131

	N/A

	March 2027

	$3,202.86 

	10.145

	N/A

	April 2027

	$2,668.57 

	9.131

	N/A

	May 2027

	$2,140.00 

	9.447

	N/A

	June 2027 and thereafter

	N/A

	N/A

	N/A

SCHEDULE VIII

Class P Prepayment Charges Mortgage Loan Schedule

[Available Upon Request]

SCHEDULE IX

Class 1-AIO Notional Amount Schedule

		
	Distribution Date

	     Balance

	May 2007

	700,000,000.00

	June 2007

	700,000,000.00

	July 2007

	700,000,000.00

	August 2007

	675,000,000.00

	September 2007

	675,000,000.00

	October 2007

	675,000,000.00

	November 2007

	575,000,000.00

	December 2007

	575,000,000.00

	January 2008

	575,000,000.00

	February 2008

	500,000,000.00

	March 2008

	500,000,000.00

	April 2008

	500,000,000.00

	May 2008

	400,000,000.00

	June 2008

	400,000,000.00

	July 2008

	400,000,000.00

	August 2008

	350,000,000.00

	September 2008

	350,000,000.00

	October 2008

	350,000,000.00

	November 2008

	300,000,000.00

	December 2008

	300,000,000.00

	January 2009

	300,000,000.00

	February 2009

	250,000,000.00

	March 2009

	250,000,000.00

	April 2009

	250,000,000.00

	May 2009

	150,000,000.00

	June 2009

	150,000,000.00

	July 2009

	150,000,000.00

	August 2009

	100,000,000.00

	September 2009

	100,000,000.00

	October 2009

	100,000,000.00

	November 2009

	50,000,000.00

	December 2009

	50,000,000.00

	January 2010

	50,000,000.00

	February 2010 and thereafter

	0

SCHEDULE X

Class 2-AIO Notional Amount Schedule

		
	Distribution Date

	    Balance

	May 2007

	300,000,000.00

	June 2007

	300,000,000.00

	July 2007

	300,000,000.00

	August 2007

	275,000,000.00

	September 2007

	275,000,000.00

	October 2007

	275,000,000.00

	November 2007

	250,000,000.00

	December 2007

	250,000,000.00

	January 2008

	250,000,000.00

	February 2008

	225,000,000.00

	March 2008

	225,000,000.00

	April 2008

	225,000,000.00

	May 2008

	200,000,000.00

	June 2008

	200,000,000.00

	July 2008

	200,000,000.00

	August 2008

	175,000,000.00

	September 2008

	175,000,000.00

	October 2008

	175,000,000.00

	November 2008

	125,000,000.00

	December 2008

	125,000,000.00

	January 2009

	125,000,000.00

	February 2009

	100,000,000.00

	March 2009

	100,000,000.00

	April 2009

	100,000,000.00

	May 2009

	75,000,000.00

	June 2009

	75,000,000.00

	July 2009

	75,000,000.00

	August 2009

	50,000,000.00

	September 2009

	50,000,000.00

	October 2009

	50,000,000.00

	November 2009 and thereafter

	0

SCHEDULE XI

Group 2 Credit Enhancement Reserve Trigger Schedule

		
	Distribution Date

	Balance      

	May 2007

	396,080,000.00

	June 2007

	389,702,000.00

	July 2007

	382,799,000.00

	August 2007

	375,375,000.00

	September 2007

	367,445,000.00

	October 2007

	359,032,000.00

	November 2007

	350,165,000.00

	December 2007

	340,873,000.00

	January 2008

	331,158,000.00

	February 2008

	329,409,000.00

	March 2008

	329,391,000.00

	April 2008

	329,373,000.00

	May 2008

	325,149,000.00

	June 2008

	315,475,000.00

	July 2008

	305,690,000.00

	August 2008

	296,062,000.00

	September 2008

	286,615,000.00

	October 2008

	275,019,000.00

	November 2008

	266,399,000.00

	December 2008

	258,085,000.00

	January 2009

	250,042,000.00

	February 2009

	242,262,000.00

	March 2009

	234,743,000.00

	April 2009

	224,772,000.00

	May 2009

	217,171,000.00

	June 2009

	209,836,000.00

	July 2009

	202,763,000.00

	August 2009

	195,780,000.00

	September 2009

	188,985,000.00

	October 2009

	176,940,000.00

	November 2009

	170,777,000.00

	December 2009

	164,839,000.00

	January 2010

	159,114,000.00

	February 2010

	153,472,000.00

	March 2010

	148,037,000.00

	April 2010

	138,580,000.00

	May 2010 and thereafter

	0

EXHIBIT A-1

FORM OF GROUP 1 SENIOR CERTIFICATE 

(OTHER THAN INTEREST-ONLY CERTIFICATES)

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”).

AN ERISA-RESTRICTED TRUST CERTIFICATE OR ANY INTEREST HEREIN MAY NOT BE TRANSFERRED TO 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”), UNLESS THE ACQUISITION AND HOLDING OF AN ERISA-RESTRICTED TRUST CERTIFICATE ARE ELIGIBLE FOR EXEMPTIVE RELIEF UNDER PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR THE NON-FIDUCIARY SERVICE PROVIDER EXEMPTION UNDER SECTION 408(b)(17) OF ERISA.  IN THE EVENT THAT A REPRESENTATION IS VIOLATED, THE TRANSFER OR ACQUISITION OF AN ERISA-RESTRICTED TRUST CERTIFICATE SHALL BE VOID AND OF NO EFFECT.

AN 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:

	April 1, 2007

	First Distribution Date:

	May 25, 2007 

	Last Scheduled Distribution Date:

	May 25, 2047     

	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 2007-3

Mortgage Pass-Through Certificates, Series 2007-3

Class 1-[_]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 two groups of adjustable-rate mortgage loans, loan group 1 (the “Group 1 Loans”) and loan group 2 (the “Group 2 Loans”), in each case, secured by first liens on one- to four-family residential properties.  The Certificates are limited in right of payment to certain collections and recoveries respecting the related Group 1 Loans and payments received pursuant to the Group 1 Certificate Cap Contract and the Group 1 Basis Risk Cap Contract, each as more specifically set forth herein and in the Agreement.

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 of the Group 1 Loans and Group 2 Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”).  This Certificate is primarily backed by the Group 1 Loans deposited by 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”)

,

as custodian (in such capacity, the “Custodian”) and as credit risk manager, and U.S. Bank National Association, as trustee (the “Trustee”).  Distributions on this Certificate will be made primarily from collections on the applicable Group 1 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: May __, 2007

WELLS FARGO BANK, N.A.,

as Trust Administrator

By:                                                                

Countersigned:

By:                                                                

Authorized Signatory of

WELLS FARGO BANK, N.A.,

as Trust Administrator

EXHIBIT A-2

(FORM OF CLASS 1-AIO 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”).

AN ERISA-RESTRICTED TRUST CERTIFICATE OR ANY INTEREST HEREIN MAY NOT BE TRANSFERRED TO 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”), UNLESS THE ACQUISITION AND HOLDING OF AN ERISA-RESTRICTED TRUST CERTIFICATE ARE ELIGIBLE FOR EXEMPTIVE RELIEF UNDER PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR THE NON-FIDUCIARY SERVICE PROVIDER EXEMPTION UNDER SECTION 408(b)(17) OF ERISA.  IN THE EVENT THAT A REPRESENTATION IS VIOLATED, THE TRANSFER OR ACQUISITION OF AN ERISA-RESTRICTED TRUST CERTIFICATE SHALL BE VOID AND OF NO EFFECT.

AN 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.

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

		
	Certificate No.:

	[1]

	Cut-off Date:

	April 1, 2007

	First Distribution Date:

	May 25, 2007 

	Last Scheduled Distribution Date:

	May 25, 2047     

	Pass-Through Rate:

	Fixed

	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 2007-3

Mortgage Pass-Through Certificates, Series 2007-3

Class 1-AIO

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 two groups of adjustable-rate mortgage loans, loan group 1 (the “Group 1 Loans”) and loan group 2 (the “Group 2 Loans”), in each case, secured by first liens on one- to four-family residential properties.  The Certificates are limited in right of payment to certain collections and recoveries respecting the related Group 1 Loans and payments received pursuant to the Group 1 Certificate Cap Contract and the Group 1 Basis Risk Cap Contract, each as more specifically set forth herein and in the Agreement.

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 in certain monthly distributions with respect to a Trust Fund consisting of the Group 1 Loans and Group 2 Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”).  This Certificate is primarily backed by the Group 1 Loans deposited by 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”)

,

as custodian (in such capacity, the “Custodian”) and as credit risk manager, and U.S. Bank National Association, as trustee (the “Trustee”).  Distributions on this Certificate will be made primarily from collections on the applicable Group 1 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: May __, 2007

WELLS FARGO BANK, N.A.,

as Trust Administrator

By:                                                                

Countersigned:

By:                                                                

Authorized Signatory of

WELLS FARGO BANK, N.A.,

as Trust Administrator

EXHIBIT A-3

FORM OF GROUP 2 SENIOR CERTIFICATE 

(OTHER THAN INTEREST-ONLY CERTIFICATES)

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”).

AN ERISA-RESTRICTED TRUST CERTIFICATE OR ANY INTEREST HEREIN MAY NOT BE TRANSFERRED TO 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”), UNLESS THE ACQUISITION AND HOLDING OF AN ERISA-RESTRICTED TRUST CERTIFICATE ARE ELIGIBLE FOR EXEMPTIVE RELIEF UNDER PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR THE NON-FIDUCIARY SERVICE PROVIDER EXEMPTION UNDER SECTION 408(b)(17) OF ERISA.  IN THE EVENT THAT A REPRESENTATION IS VIOLATED, THE TRANSFER OR ACQUISITION OF AN ERISA-RESTRICTED TRUST CERTIFICATE SHALL BE VOID AND OF NO EFFECT.

AN 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:

	April 1, 2007

	First Distribution Date:

	May 25, 2007 

	Last Scheduled Distribution Date:

	May 25, 2047     

	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 2007-3

Mortgage Pass-Through Certificates, Series 2007-3

Class 2-[_]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 two groups of adjustable-rate mortgage loans, loan group 1 (the “Group 1 Loans”) and loan group 2 (the “Group 2 Loans”), in each case, secured by first liens on one- to four-family residential properties.  The Certificates are limited in right of payment to certain collections and recoveries respecting the related Group 2 Loans and payments received pursuant to the Group 2 Certificate Cap Contract, the Group 2 Basis Risk Cap Contract and the Class 2-2A3 Basis Risk Cap Contract, each as more specifically set forth herein and in the Agreement.

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 of the Group 1 Loans and Group 2 Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”).  This Certificate is primarily backed by the Group 2 Loans deposited by 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”)

,

as custodian (in such capacity, the “Custodian”) and as credit risk manager, and U.S. Bank National Association, as trustee (the “Trustee”).  Distributions on this Certificate will be made primarily from collections on the applicable Group 2 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: May __, 2007

WELLS FARGO BANK, N.A.,

as Trust Administrator

By:                                                                

Countersigned:

By:                                                                

Authorized Signatory of

WELLS FARGO BANK, N.A.,

as Trust Administrator

EXHIBIT A-4

(FORM OF CLASS 2-AIO 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”).

AN ERISA-RESTRICTED TRUST CERTIFICATE OR ANY INTEREST HEREIN MAY NOT BE TRANSFERRED TO 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”), UNLESS THE ACQUISITION AND HOLDING OF AN ERISA-RESTRICTED TRUST CERTIFICATE ARE ELIGIBLE FOR EXEMPTIVE RELIEF UNDER PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR THE NON-FIDUCIARY SERVICE PROVIDER EXEMPTION UNDER SECTION 408(b)(17) OF ERISA.  IN THE EVENT THAT A REPRESENTATION IS VIOLATED, THE TRANSFER OR ACQUISITION OF AN ERISA-RESTRICTED TRUST CERTIFICATE SHALL BE VOID AND OF NO EFFECT.

AN 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.

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

		
	Certificate No.:

	[1]

	Cut-off Date:

	April 1, 2007

	First Distribution Date:

	May 25, 2007 

	Last Scheduled Distribution Date:

	May 25, 2047     

	Pass-Through Rate:

	Fixed

	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 2007-3

Mortgage Pass-Through Certificates, Series 2007-3

Class 2-AIO

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 two groups of adjustable-rate mortgage loans, loan group 1 (the “Group 1 Loans”) and loan group 2 (the “Group 2 Loans”), in each case, secured by first liens on one- to four-family residential properties.  The Certificates are limited in right of payment to certain collections and recoveries respecting the related Group 2 Loans and payments received pursuant to the Group 2 Certificate Cap Contract, the Group 2 Basis Risk Cap Contract and the Class 2-2A3 Basis Risk Cap Contract, each as more specifically set forth herein and in the Agreement.

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 in certain monthly distributions with respect to a Trust Fund consisting of the Group 1 Loans and Group 2 Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”).  This Certificate is primarily backed by the Group 2 Loans deposited by 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”)

,

as custodian (in such capacity, the “Custodian”) and as credit risk manager, and U.S. Bank National Association, as trustee (the “Trustee”).  Distributions on this Certificate will be made primarily from collections on the applicable Group 2 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: May __, 2007

WELLS FARGO BANK, N.A.,

as Trust Administrator

By:                                                                

Countersigned:

By:                                                                

Authorized Signatory of

WELLS FARGO BANK, N.A.,

as Trust Administrator

EXHIBIT B-1

(FORM OF GROUP 1 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.

AN 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:

	April 1, 2007

	First Distribution Date:

	May 25, 2007 

	Last Scheduled Distribution Date:

	May 25, 2047

	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 2007-3

Mortgage Pass-Through Certificates, Series 2007-3

Class 1-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 two groups of adjustable-rate mortgage loans, loan group 1 (the “Group 1 Loans”) and loan group 2 (the “Group 2 Loans”), in each case, secured by first liens on one- to four-family residential properties.  The Certificates are limited in right of payment to certain collections and recoveries respecting the related Group 1 Loans and payments received pursuant to the Group 1 Certificate Cap Contract and the Group 1 Basis Risk Cap Contract, each as more specifically set forth herein and in the Agreement.

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 Group 1 Loans and Group 2 Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”).  This Certificate is primarily backed by the Group 1 Loans deposited by 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”)

,

as custodian (in such capacity, the “Custodian”) and as credit risk manager, and U.S. Bank National Association, as trustee (the “Trustee”).  Distributions on this Certificate will be made primarily from collections on the Group 1 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:  May __, 2007

WELLS FARGO BANK, N.A.,

as Trust Administrator

By:                                                                

Countersigned:

By:                                                                

Authorized Signatory of

WELLS FARGO BANK, N.A.,

as Trust Administrator

EXHIBIT B-2

(FORM OF GROUP 2 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.

AN 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:

	April 1, 2007

	First Distribution Date:

	May 25, 2007 

	Last Scheduled Distribution Date:

	May 25, 2047

	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 2007-3

Mortgage Pass-Through Certificates, Series 2007-3

Class 2-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 two groups of adjustable-rate mortgage loans, loan group 1 (the “Group 1 Loans”) and loan group 2 (the “Group 2 Loans”), in each case, secured by first liens on one- to four-family residential properties.  The Certificates are limited in right of payment to certain collections and recoveries respecting the related Group 2 Loans and payments received pursuant to the Group 2 Certificate Cap Contract, the Group 2 Basis Risk Cap Contract and Class 2-2A3 Basis Risk Cap Contract, each as more specifically set forth herein and in the Agreement.

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 Group 1 Loans and Group 2 Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”).  This Certificate is primarily backed by the Group 2 Loans deposited by 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”)

,

as custodian (in such capacity, the “Custodian”) and as credit risk manager, and U.S. Bank National Association, as trustee (the “Trustee”).  Distributions on this Certificate will be made primarily from collections on the Group 2 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:  May __, 2007

WELLS FARGO BANK, N.A.,

as Trust Administrator

By:                                                                

Countersigned:

By:                                                                

Authorized Signatory of

WELLS FARGO BANK, N.A.,

as Trust Administrator

EXHIBIT C-1

(FORM OF CLASS 1-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:

	April 1, 2007

	First Distribution Date:

	May 25, 2007 

	Last Scheduled Distribution Date:

	May 25, 2047

	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 2007-3

Mortgage Pass-Through Certificates, Series 2007-3

Class 1-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 two groups of adjustable-rate mortgage loans, loan group 1 (the “Group 1 Loans”) and loan group 2 (the “Group 2 Loans”), in each case, secured by first liens on one- to four-family residential properties.  The Certificates are limited in right of payment to certain collections and recoveries respecting the related Group 1 Loans and payments received pursuant to the Group 1 Certificate Cap Contract and the Group 1 Basis Risk Cap Contract, each as more specifically set forth herein and in the Agreement.

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 Group 1 and Group 2 Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”).  This Certificate is primarily backed by the Group 1 Loans deposited by 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”)

,

as custodian (in such capacity, the “Custodian”) and as credit risk manager, and U.S. Bank National Association, as trustee (the “Trustee”). Distributions on this Certificate will be made primarily from collections on the applicable Group 1 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 (a “Plan”), or a person acquiring such Certificate for, on behalf of or with the assets of, such 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, such 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:  May __, 2007

WELLS FARGO BANK, N.A.,

as Trust Administrator

By:                                                                

Countersigned:

By:                                                                

Authorized Signatory of

WELLS FARGO BANK, N.A.,

as Trust Administrator

EXHIBIT C-2

(FORM OF CLASS 2-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:

	April 1, 2007

	First Distribution Date:

	May 25, 2007 

	Last Scheduled Distribution Date:

	May 25, 2047

	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 2007-3

Mortgage Pass-Through Certificates, Series 2007-3

Class 2-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 two groups of adjustable-rate mortgage loans, loan group 1 (the “Group 1 Loans”) and loan group 2 (the “Group 2 Loans”), in each case, secured by first liens on one- to four-family residential properties.  The Certificates are limited in right of payment to certain collections and recoveries respecting the related Group 2 Loans and payments received pursuant to the Group 2 Certificate Cap Contract, the Group 2 Basis Risk Cap Contract and the Class 2-2A3 Basis Risk Cap Contract, each as more specifically set forth herein and in the Agreement.

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 Group 1 and Group 2 Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”).  This Certificate is primarily backed by the Group 2 Loans deposited by 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”)

,

as custodian (in such capacity, the “Custodian”) and as credit risk manager, and U.S. Bank National Association, as trustee (the “Trustee”). Distributions on this Certificate will be made primarily from collections on the applicable Group 2 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 (a “Plan”), or a person acquiring such Certificate for, on behalf of or with the assets of, such 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, such 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:  May __, 2007

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 1-1P][CLASS 1-2P] 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.

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:

April 1, 2007

First Distribution Date:

May 25, 2007

Last Scheduled Distribution Date:

May 25, 2047

Initial Certificate Principal Balance of this Certificate

$100

CUSIP:

[___________]

MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

MASTR ADJUSTABLE RATE MORTGAGES TRUST 2007-3

Mortgage Pass-Through Certificates, Series 2007-3

Class 1-[_]P

evidencing  a  percentage  interest  in  the Class 1-[_]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 1-[_]P Prepayment Charges with respect to a Trust Fund consisting primarily of the Group 1 Loans and Group 2 Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”). This Certificate is primarily backed by the Group 1 Loans deposited by 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”) as custodian (in such capacity, the “Custodian”) and as credit risk manager, and U.S. Bank National Association, as trustee (the “Trustee”). Distributions on this Certificate will be made from Class 1-[_]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 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 (a “Plan”), or a person acquiring such Certificate for, on behalf of or with the assets of, such 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, such 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:  May __, 2007

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 2-1P][CLASS 2-2P] 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.

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:

April 1, 2007

First Distribution Date:

May 25, 2007

Last Scheduled Distribution Date:

May 25, 2047

Initial Certificate Principal Balance of this Certificate

$100

CUSIP:

[___________]

MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

MASTR ADJUSTABLE RATE MORTGAGES TRUST 2007-3

Mortgage Pass-Through Certificates, Series 2007-3

Class 2-[_]P

evidencing  a  percentage  interest  in  the Class 2-[_]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 2-[_]P Prepayment Charges with respect to a Trust Fund consisting primarily of the Group 1 Loans and Group 2 Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”). This Certificate is primarily backed by the Group 2 Loans deposited by 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”), as custodian (in such capacity, the “Custodian”) and as credit risk manager, and U.S. Bank National Association, as trustee (the “Trustee”). Distributions on this Certificate will be made from Class 2-[_]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 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 (a “Plan”), or a person acquiring such Certificate for, on behalf of or with the assets of, such 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, such 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:  May __, 2007

WELLS FARGO BANK, N.A.,

as Trust Administrator

By:                                                                

Countersigned:

By:                                                                

Authorized Signatory of

WELLS FARGO BANK, N.A.,

as Trust Administrato

EXHIBIT E-1

(FORM OF [Class 1-RX][Class 1-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 TRUST ADMINISTRATOR THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY POSSESSION THEREOF, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (2) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) THAT IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE, (3) ANY ORGANIZATION DESCRIBED IN SECTION 1381(A)(2)(C) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR (3) SHALL HEREINAFTER BE REFERRED TO AS A “DISQUALIFIED ORGANIZATION”) OR (4) AN AGENT OF A DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX, AND (II) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE HEREOF SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH AND THE PROVISIONS OF SECTION 5.02(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:

	April 1, 2007

	First Distribution Date:

	May 25, 2007

	Last Scheduled Distribution Date:

	May 25, 2047

	Aggregate Percentage Interest of the Class 1-R[X] Certificates as of the Issue Date: 

	100.00%

	CUSIP:

	[____________]

MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

MASTR ADJUSTABLE RATE MORTGAGES TRUST 2007-3

Mortgage Pass-Through Certificates, Series 2007-3

Class 1-R[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 two groups of adjustable-rate mortgage loans, loan group 1 (the “Group 1 Loans”) and loan group 2 (the “Group 2 Loans”), in each case, secured by first liens on one- to four-family residential properties.  The Certificates are limited in right of payment to certain collections and recoveries respecting the related Group 1 Loans and payments received pursuant to the Group 1 Certificate Cap Contract and the Group 1 Basis Risk Cap Contract, each as more specifically set forth herein and in the Agreement

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 Group 1 Loans and Group 2 Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”).  This Certificate is primarily backed by the Group 1 Loans deposited by 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”), as custodian (in such capacity, the “Custodian”) and as credit risk manager, and U.S. Bank National Association, as trustee (the “Trustee”). Distributions on this Certificate will be made primarily from collections on the Group 1 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 1-R[X] 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 1-R[X] 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 1-R[X] 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 (a “Plan”), or a person acquiring such Certificate for, on behalf of or with the assets of, such 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, such 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:  May __, 2007

WELLS FARGO BANK, N.A.,

as Trust Administrator

By:                                                                

Countersigned:

By:                                                                

Authorized Signatory of

WELLS FARGO BANK, N.A.,

as Trust Administrator

EXHIBIT E-2

(FORM OF [Class 2-RX][Class 2-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 TRUST ADMINISTRATOR THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY POSSESSION THEREOF, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (2) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) THAT IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE, (3) ANY ORGANIZATION DESCRIBED IN SECTION 1381(A)(2)(C) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR (3) SHALL HEREINAFTER BE REFERRED TO AS A “DISQUALIFIED ORGANIZATION”) OR (4) AN AGENT OF A DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX, AND (II) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE HEREOF SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH AND THE PROVISIONS OF SECTION 5.02(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:

	April 1, 2007

	First Distribution Date:

	May 25, 2007

	Last Scheduled Distribution Date:

	May 25, 2047

	Aggregate Percentage Interest of the Class 2-R[X] Certificates as of the Issue Date: 

	100.00%

	CUSIP:

	[____________]

MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

MASTR ADJUSTABLE RATE MORTGAGES TRUST 2007-3

Mortgage Pass-Through Certificates, Series 2007-3

Class 2-R[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 two groups of adjustable-rate mortgage loans, loan group 1 (the “Group 1 Loans”) and loan group 2 (the “Group 2 Loans”), in each case, secured by first liens on one- to four-family residential properties.  The Certificates are limited in right of payment to certain collections and recoveries respecting the related Group 2 Loans and payments received pursuant to the Group 2 Certificate Cap Contract, the Group 2 Basis Risk Cap Contract and the Class 2-2A3 Basis Risk Cap Contract, each as more specifically set forth herein and in the Agreement.

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 Group 1 Loans and Group 2 Loans deposited by Mortgage Asset Securitization Transactions, Inc. (the “Depositor”).  This Certificate is primarily backed by the Group 2 Loans deposited by 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”), as custodian (in such capacity, the “Custodian”) and as credit risk manager, and U.S. Bank National Association, as trustee (the “Trustee”). Distributions on this Certificate will be made primarily from collections on the Group 2 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 2-R[X] 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 2-R[X] 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 2-R[X] 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 (a “Plan”), or a person acquiring such Certificate for, on behalf of or with the assets of, such 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, such 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:  May __, 2007

WELLS FARGO BANK, N.A.,

as Trust Administrator

By:                                                                

Countersigned:

By:                                                                

Authorized Signatory of

WELLS FARGO BANK, N.A.,

as Trust Administrator

EXHIBIT F

(Form of Reverse of Certificates)

MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

MASTR ADJUSTABLE RATE MORTGAGES TRUST 2007-3

Mortgage Pass-Through Certificates, Series 2007-3

This Certificate is one of a duly authorized issue of Certificates designated as Mortgage Asset Securitization Transactions, Inc. MASTR Adjustable Rate Mortgages Trust 2007-3, 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 Certificates other than the Class 1-AIO, Class 1-C, Class 1-1P, Class 1-2P, Class 1-R, Class 1-RX, Class 2-AIO, Class 2-C, Class 2-1P, Class 2-2P, Class 2-R and Class 2-RX Certificates only] [The Record Date applicable to each Distribution Date is the Business Day immediately preceding the related Distribution Date] [For the Class 1-AIO, Class 1-C, Class 1-1P, Class 1-2P, Class 1-R, Class 1-RX, Class 2-AIO, Class 2-C, Class 2-1P, Class 2-2P, Class 2-R and Class 2-RX Certificates only] [The Record Date applicable to each Distribution Date is, with respect to the first Distribution Date, the Closing Date, and with respect to any Distribution Date thereafter, the last Business Day of the month immediately preceding 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 aggregate Principal Balance of the Group [1][2] Loans and each REO Property related to Loan Group [1][2] remaining in the Trust Fund on such date is reduced to less than 10% of the aggregate Principal Balance of the Group [1][2] Loans as of the Cut-off Date, the Majority Holder of the Class [1][2]-C Certificates, as Auction Initiator, will have the option to cause the Trust Administrator to auction the Group [1][2] Loans and each REO Property related to Loan Group [1][2] remaining in the Trust Fund pursuant to auction procedures as provided in this Agreement, at an auction price determined as provided in the Agreement.  In the event that the Majority Holder of the Class [1][2]-C Certificates, as Auction Initiator, does not exercise its option, the Master Servicer may purchase the Group [1][2] Loans and each REO Property related to Loan Group [1][2] remaining in the Trust Fund pursuant to procedures as provided in this Agreement, at a purchase price determined as provided in the Agreement.  In the event that the Majority Holder of the Class [1][2]-C Certificates, as Auction Initiator, does not exercise its option, and the Master Servicer does not exercise its option, the Certificate Insurer, as Auction Initiator, will have the option to cause the Trust Administrator to auction the Group [1][2] Loans and each REO Property related to Loan Group [1][2] remaining in the Trust Fund pursuant to auction procedures as provided in this Agreement, at an auction price determined as provided in the Agreement.  In the event that no such optional termination occurs, the obligations and responsibilities created by the Agreement with respect to the Group [1][2] Loans will terminate upon the later of the maturity or other liquidation (or any advance with respect thereto) of the last Group [1][2] Loan remaining in the Trust Fund or the disposition of all property in respect thereof and the distribution to Group [1][2] 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 2007-3

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, as custodian, and as credit risk manager, and U.S. Bank National Association, as trustee, in connection with MASTR Adjustable Rate Mortgages Trust 2007-3, Mortgage Pass-Through Certificates, Series 2007-3.

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 2007-3

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

Financial Security Assurance Inc.

31 West 52nd Street 

New York, New York 10019

Attention: Managing Director – Transaction Oversight, Policy No. 51834-N

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, as custodian, and as credit risk manager, and U.S. Bank National Association, as trustee, in connection with MASTR Adjustable Rate Mortgages Trust 2007-3, Mortgage Pass-Through Certificates, Series 2007-3.

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 RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT

MASTR ADJUSTABLE RATE MORTGAGES TRUST 2007-3

Mortgage Asset Securitization Transactions, Inc.

Mortgage Pass-Through Certificates

Series 2007-3

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[X] Certificate (the “Certificate”) issued pursuant to the Pooling and Servicing Agreement dated as of April 1, 2007 (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”), as custodian (in such capacity, the “Custodian”) and as credit risk manager, and U.S. Bank National Association, as trustee (the “Trustee”).  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 ________________, 20__.

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 2007-3, Mortgage Pass-Through Certificates, Series 2007-3, Class [_]-R[X]

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[X] 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[X] 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 2007-3, Mortgage Pass-Through Certificates, Series 2007-3, 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 (“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 Trust Certificate, either (i) we are 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 Trust Certificate are eligible for exemptive relief under the statutory exemption for nonfiduciary service providers under Section 408(b)(17) of ERISA and Section 4975(d)(20) of the Code, PTCE 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE 96-23 or some other applicable exemption, (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 (j) below), (g) 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 (j) below), (h) 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 (i) 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 2007-3, Mortgage Pass-Through Certificates, Series 2007-3, 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 (“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 Trust Certificate, either (i) we are 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 Trust Certificate are eligible for exemptive relief under the statutory exemption for nonfiduciary service providers under Section 408(b)(17) of ERISA and Section 4975(d)(20) of the Code, PTCE 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE 96-23 or some other applicable exemption, (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 2007-3

Re:

Pooling and Servicing Agreement, dated as of April 1, 2007, 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, as custodian, and as credit risk manager, and U.S. Bank National Association, as trustee.

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

[DATE]

[Name of Depositor] [Depositor’s Address]

Wells Fargo Bank, N.A.

9062 Old Annapolis Road

Columbia, MD 21045

Re:

MASTR Adjustable Rate Mortgages Trust, Series 2007-3

I, [identify the certifying individual], certify that:

1.

I have reviewed the report on Form 10-K and all reports on Form 10-D required to be filed in respect of the period covered by this report on Form 10-K of MASTR Adjustable Rate Mortgages Trust, Series 2007-3 (the “Exchange Act periodic reports”);

2.

Based on my knowledge, the Exchange Act periodic reports, taken as a whole, do not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, all of the distribution, servicing and other information required to be provided under Form 10-D for the period covered by this report is included in the Exchange Act periodic reports;

4.

[I am responsible for reviewing the activities performed by the servicer(s) and based on my knowledge and the compliance review(s) conducted in preparing the servicer compliance statement(s) required in this report under Item 1123 of Regulation AB, and except as disclosed in the Exchange Act periodic reports, the servicer(s) [has/have] fulfilled [its/their] obligations under the servicing agreement(s) in all material respects; and]

5.

All of the reports on assessment of compliance with servicing criteria for ABS and their related attestation reports on assessment of compliance with servicing criteria for asset-backed securities required to be included in this report in accordance with Item 1122 of Regulation AB and Exchange Act Rules 13a-18 and 15d-18 have been included as an exhibit to this report, except as otherwise disclosed in this report.  Any material instances of noncompliance described in such reports have been disclosed in this report on Form 10-K.

[In giving the certifications above, I have reasonably relied on information provided to me by the following unaffiliated parties [name of servicer, sub-servicer, co-servicer, depositor or trustee].]

Date:

                                                                        

[Signature]

[Title]

EXHIBIT O-1

Form of Group 1 Basis Risk Cap Contract

(Available Upon Request)

EXHIBIT O-2

Form of Group 1 Cap Contract

(Available Upon Request)

EXHIBIT O-3

Form of Group 2 Basis Risk Cap Contract

(Available Upon Request)

EXHIBIT O-4

Form of Group 2 Cap Contract

(Available Upon Request)

EXHIBIT O-5

Form of Class 2-2A3 Basis Risk Cap Contract

(Available Upon Request)

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 April 1, 2007 (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, as custodian, and as credit risk manager, and U.S. Bank National Association, as trustee.  

[__________________], 

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 2007-3—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 April 1, 2007, 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, Custodian, and Credit Risk Manager, and U.S. Bank National Association, as Trustee, 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 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

	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 support

	 
	 
	 

* 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.

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