Document:

Unassociated Document

     

    EXHIBIT
      10.1

    TRUE
      NORTH ENERGY CORP.

    

    EXECUTIVE
      EMPLOYMENT AGREEMENT

    

    THIS
      EXECUTIVE EMPLOYMENT AGREEMENT (this "Agreement") is made between True North
      Energy Corp., a Nevada corporation and its affiliated companies (collectively
      referred to as the “Company"), and John Folnovic (“Executive”). Unless otherwise
      indicated, all references to Sections are to Sections in this Agreement. This
      Agreement is effective as of the “Effective Date” set forth in Section 11 below.

     

    WITNESSETH:

    

    WHEREAS,
      the
      Company desires to obtain the services of Executive, and Executive desires
      to be
      employed by the Company upon the terms and conditions hereinafter set
      forth;

    

    NOW,
      THEREFORE,
      in
      consideration of the premises, the agreements herein contained and other good
      and valuable consideration, receipt of which is hereby acknowledged, the parties
      hereto agree as of the date hereof as follows:

    

    1.
      Employment. The Company hereby agrees to employ Executive, and Executive hereby
      agrees to serve the Company, as its President and Chief Executive Officer
      (“Employment”) and as a Director for a period of twelve (12) months beginning on
      the Effective Date. This Agreement is renewable for up to four (4) additional
      twelve (12) month periods upon the mutual written consent of the parties
within
      thirty (30) days of the ending date of the then applicable term.

    

    2.
      Scope
      of Employment. 

    

    (a)
      During the Employment, Executive will serve as President and Chief Executive
      Officer of the Company. In that connection, Executive will (i) devote his
      full-time attention and energies to the business of the Company and will
      diligently and to the best of his ability perform all duties incident to his
      employment hereunder; (ii) use his best efforts to promote the interests and
      goodwill of the Company; and (iii) perform such other duties commensurate with
      his office as the Board of Directors of the Company may from time-to-time assign
      to him.

    

    (b)
      Section 2(a) shall not be construed as preventing Executive from (i) serving
      on
      corporate, civic or charitable boards or committees, or (ii) making investments
      in other businesses or enterprises; provided that in no event shall any such
      service, business activity or investment require the provision of substantial
      services by Executive to the operations or the affairs of such businesses or
      enterprises such that the provision thereof would interfere in any respect
      with
      the performance of Executive's duties hereunder. 

    

    3.
      Compensation and Benefits during Employment. During the Employment, the Company
      shall provide compensation to Executive as follows.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    (a)
      The
      Company shall pay Executive a base annual salary of $120,000 in equal monthly
      installments of $10,000, subject to required withholdings. 

    

    (b)
      As
      additional consideration for signing this Agreement and for agreeing to abide
      and be bound by its terms, provisions and restrictions, and in addition to
      all
      other benefits described in this Agreement, Executive, his nominees and/or
      assigns, shall receive up to an aggregate of 5,000,000 restricted shares of
      Company common stock (the “Shares”) payable as follows: 1) 1,000,000 Shares
      payable at the end of the twelve-month period immediately following the
      Effective Date; and 2) assuming that this Agreement is subsequently renewed
      pursuant to Section 1, 1,000,000 Shares payable at the end of each twelve-month
      renewal, up to a maximum of four renewals.

    

    In
      the
      event Executive’s employment terminates prior to the end of any twelve month
      term of employment contemplated by this Agreement, Executive shall, in lieu
      of
      the Share compensation provided for above, be entitled to Share compensation
      as
      follows:

    

    (i)  Death
      or Disability.
      If
      Executive dies or is disabled during any twelve-month term of employment within
      this Agreement, Executive or Executive’s estate, as the case may be, shall
      receive a pro rata portion of 1,000,000 restricted shares with respect to the
      existing twelve-month term based on the number of days of the term during which
      Executive was employed at the time of his death or disability. For example,
      if
      Executive dies after having served nine months of a term, his estate shall
      receive 750,000 restricted shares. The shares shall be payable within 15 days
      of
      the date of death or disability. Notwithstanding the foregoing, if Executive
      dies during the initial twelve-month period immediately following the Effective
      Date, his estate will be entitled to received 1,000,000 shares rather than
      a
      pro-rata allocation.

    

    (ii)  Termination
      by Executive “For Good Reason” or by Company “Without Cause”.
      If
      Executive’s employment is terminated during any twelve-month term of employment
      under this Agreement, by Executive “For Good Reason” (as such term is defined in
      Section 8(d) hereof) or by the Company “Without Cause”, Executive shall be
      entitled to receive 1,000,000 shares of restricted common stock to the same
      extent he would have been entitled to such shares at the end of the term except
      that such shares shall be payable within 15 days of the date of
      termination.

    

    (iii)  Termination
      by Company “With Cause”.
      If
      Executive’s employment is terminated during any twelve-month term of employment
      under this Agreement by the Company “With Cause” (as such term is defined in
      Section 8(c) hereof), Executive shall forfeit all rights to Share compensation
      for such twelve-month term and no payment of shares will be due to
      Executive.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    All
      Shares issuable pursuant to this Section 3(b) will be fully vested and shall
      be
      transferable by Executive as of the date of receipt. During the term of
      employment, in the event of a consolidation or merger or sale of all or
      substantially all of the assets of the Company in which outstanding shares
      of
      the Company’s common stock are exchanged for securities, cash or other property
      of any other corporation, firm, partnership, joint venture, association, or
      business entity, the Company is otherwise acquired or there is a change of
      control of the Company (receipt of more than 50% of the outstanding shares
      of
      the Company, the Company otherwise being acquired, or a change in control of
      the
      Company are collectively referred to as an “Acquisition”), or in the event of
      liquidation of the Company, so much of the 5,000,000 Shares issuable under
      this
      Agreement that have not been issued to Executive shall immediately and fully
      vest and shall also be transferable by Executive immediately prior to such
      Acquisition or liquidation. The numbers of Shares are subject to adjustment
      from
      time to time as set forth in this Section 3(b). In the event that the Company
      shall at any time after the Effective Date (i) declare a dividend on the Common
      Stock in shares of its capital stock, (ii) subdivide the outstanding Common
      Stock, (iii) combine the outstanding Common Stock into a smaller number of
      Common Stock, or (iv) issue any shares of its capital stock by reclassification
      of the Common Stock (including any such reclassification in connection with
      a
      consolidation or merger in which the Company is the continuing corporation),
      then in each case, with respect to so much of the 5,000,000 Shares that have
      not
      been issued to Executive, Executive shall be entitled to new, additional, or
      different shares of Common Stock in proportion to such dividend, subdivision,
      combination or issuance. This Section 3(b) shall otherwise apply to such new,
      additional, or different shares of Common Stock to the extent applicable to
      the
      Shares with respect to which they were distributed. For example, if the Company
      declares a 2:1 stock dividend within thirty-six (36) months after the Effective
      Date when Executive has received 2,000,000 Shares, Executive would thereafter
      be
      entitled to receive 2,000,000 Shares at the end of the thirty-six (36),
      forty-eight (48), and sixty (60) month periods (or an aggregate of 6,000,000
      Shares) immediately after the Effective Date provided that Executive is employed
      by the Company at the end of each of such periods. Such adjustment shall be
      made
      successively whenever any event listed above shall occur. Any successor of
      the
      Company shall be bound by this Section 3(b) as provided by Section 6(b) hereof.
      

    

    (c)
      The
      Company shall reimburse Executive for business expenses incurred by Executive
      in
      connection with the Employment in accordance with the Company’s then-current
      policies.

    

    (d)
      Executive will be entitled to participate in any health insurance or other
      employee benefit plan which the Company may adopt in the future.

    

    (e)
      Executive will be entitled to five (5) weeks of paid vacation per
      year.

    

    (f)
      Executive will be entitled to participate in any incentive program or
      discretionary bonus program of the Company which may be implemented in the
      future by the Board of Directors.

    

    (g)
      Executive will be entitled to participate in any stock option plan of the
      Company which may be approved in the future by the Board of
      Directors.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Any
      act,
      or failure to act, based upon authority given pursuant to a resolution duly
      adopted by the Board or based upon the advice of counsel for the Company shall
      be conclusively presumed to be done, or omitted to be done, by Executive in
      good
      faith and in the best interests of the Company and thus shall not be deemed
      grounds for Termination for Cause.

    

    4.
      Confidential Information. 

    

    (a)
      Executive acknowledges that the law provides the Company with protection for
      its
      trade secrets and confidential information. Executive will not use any of the
      Company’s confidential business information or confidential technical
      information in any way, either during or after the Employment with the Company,
      except as required in the course of the Employment.

    

    (b)
      Executive will strictly adhere to any obligations that may be owed to former
      employers insofar as Executive’s use or disclosure of their confidential
      information is concerned. 

    

    (c)
      Information will not be deemed part of the confidential information restricted
      by this Section 4 if Executive can show that: (i) the information was in
      Executive’s possession or within Executive’s knowledge before the Company
      disclosed it to Executive; (ii) the information was or became generally known
      to
      those who could take economic advantage of it; (iii) Executive obtained the
      information from a party having the right to disclose it to Executive without
      violation of any obligation to the Company, or (iv) Executive is required to
      disclose the information pursuant to legal process (e.g., a subpoena), provided
      that Executive notifies the Company immediately upon receiving or becoming
      aware
      of the legal process in question. No combination of information will be deemed
      to be within any of the four exceptions in the previous sentence, however,
      whether or not the component parts of the combination are within one or more
      exceptions, unless the combination itself and its economic value and principles
      of operation are themselves within such an exception or exceptions.

    

    (d)
      All
      originals and all copies of any drawings, blueprints, manuals, reports, computer
      programs or data, notebooks, notes, photographs, and all other recorded,
      written, or printed matter relating to research, manufacturing operations,
      or
      business of the Company made or received by Executive during the Employment
      are
      the property of the Company. Upon Termination of the Employment, whether or
      not
      for Cause, Executive will immediately deliver to the Company all property of
      the
      Company which may still be in Executive’s possession. Executive will not remove
      or assist in removing such property from the Company’s premises under any
      circumstances, either during the Employment or after Termination thereof, except
      as authorized by the Company’s management.

    

    (e)
      For a
      period of one (1) year after the date of Termination of the Employment,
      Executive will not, either directly or indirectly, hire or employ or offer
      or
      participate in offering employment to any person who at the time of such
      Termination or at any time during such one (1) year period following the date
      of
      Termination is or was an employee of the Company without the prior written
      consent of the Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    5.
      Ownership of Intellectual Property.

    

    (a)
      The
      Company will be the sole owner of any and all of Executive’s Inventions that are
      related to the Company’s business, as defined in more detail below.

    

    (b)
      For
      purposes of this Agreement, “Inventions” means all inventions, discoveries, and
      improvements (including, without limitation, any information relating to
      manufacturing techniques, processes, formulas, developments or experimental
      work, work in progress, or business trade secrets), along with any and all
      other
      work product relating thereto. 

    

    (c)
      An
      Invention is “related to the Company’s business” (“Company-Related Invention”)
      if it is made, conceived, or reduced to practice by Executive (in whole or
      in
      part, either alone or jointly with others, whether or not during regular working
      hours), whether or not potentially patentable or copyrightable in the U.S.
      or
      elsewhere, and it either: (i) involves equipment, supplies, facilities, or
      trade
      secret information of the Company; (ii) involves the time for which Executive
      was or is to be compensated by the Company; (iii) relates to the business of
      the
      Company or to its actual or demonstrably anticipated research and development;
      or (iv) results, in whole or in part, from work performed by Executive for
      the
      Company. 

    

    (d)
      Executive will promptly disclose to the Company, or its nominee(s), without
      additional compensation, all Company-Related Inventions. 

    

    (e)
      Executive will assist the Company, at the Company’s expense, in protecting any
      intellectual property rights that may be available anywhere in the world for
      such Company-Related Inventions, including signing U.S. or foreign patent
      applications, oaths or declarations relating to such patent applications, and
      similar documents.

    

    (f)
      To
      the extent that any Company-Related Invention is eligible under applicable
      law
      to be deemed a “work made for hire,” or otherwise to be owned automatically by
      the Company, it will be deemed as such, without additional compensation to
      Executive. In some jurisdictions, Executive may have a right, title, or interest
      (“Right,” including without limitation all right, title, and interest arising
      under patent law, copyright law, trade-secret law, semiconductor chip protection
      law, or otherwise, anywhere in the world, including the right to sue for present
      or past infringement) in certain Company-Related Inventions that cannot be
      automatically owned by the Company. In that case, if applicable law permits
      Executive to assign Executive’s Right(s) in future Company-Related Inventions at
      this time, then Executive hereby assigns any and all such Right(s) to the
      Company, without additional compensation to Executive; if not, then Executive
      agrees to assign any and all such Right(s) in any such future Company-Related
      Inventions to the Company or its nominee(s) upon request, without additional
      compensation to Executive.

    

    6.
      Successors. 

    

    (a)
      This
      Agreement shall inure to the benefit of and be binding upon (i) the Company
      and
      its successors and assigns and (ii) Executive and Executive’s heirs and legal
      representatives, except that Executive’s duties and responsibilities under this
      Agreement are of a personal nature and will not be assignable or delegable
      in
      whole or in part.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (b)
      The
      Company will require any successor (whether direct or indirect, by purchase,
      merger, consolidation or otherwise) to all or substantially all of the business
      and/or assets of the Company to assume expressly and agree to perform this
      Agreement in the same manner and to the same extent that the Company would
      be
      required to perform it if no such succession had taken place. As used in this
      Agreement, "the Company" shall mean the Company as hereinbefore defined and
      any
      successor to its business and/or assets as aforesaid which assumes and agrees
      to
      perform this Agreement by operation of law, or otherwise. 

    

    7.
      Indemnification. The Company shall to the fullest extent permitted by law or
      as
      set forth in the Articles of Incorporation, and any future amendments, and
      the
      Bylaws of the Company, indemnify, defend and hold harmless Executive from and
      against any and all claims, demands, proceedings, liabilities, damages, losses
      and expenses (including attorney's fees, court costs and disbursements) arising
      out of the fact that he is or was a director or officer of the Company, or
      the
      performance of his duties hereunder except in the case of Executive’s gross
      negligence, willful misconduct, criminal conduct or violations of law. As soon
      as practicable following the execution of this Agreement, the Company will
      use
      its best efforts to purchase and maintain a Directors and Officers Liability
      Insurance policy with a minimum liability limit of $1 million. 

    

    8.
      Termination.

    

    This
      Agreement and the employment relationship created hereby will terminate (i)
      upon
      the death or disability of Executive under Section 8 (a) or 8 (b); (ii) with
      cause under Section 8 (c); (iii) for good reason under Section 8 (d); or (iv)
      without cause under Section 8 (e).

    

    
      	 	
              (a)

            	
              Disability.
                Company
                shall have the right to terminate the employment of Executive under
                this
                Agreement for disability in the event Executive suffers an injury,
                illness, or incapacity of such character as to substantially disable
                him
                from performing his duties without reasonable accommodation by Executive
                hereunder for a period of more than thirty (30) consecutive days
                upon
                Company giving at least thirty (30) days written notice of termination.
                

            

    

    

    
      	 	
              (b)

            	
              Death.
                This
                agreement will terminate on the Death of the
                Executive.

            

    

    

    
      	 	
              (c)

            	
              With
                Cause.
                Company may terminate this Agreement ten (10) days after delivery
                of
                written notice to Executive for good cause which shall be: (1) Executive’s
                willful, material and irreparable breach of this Agreement, (2)
                Executive’s willful dishonesty, fraud or material misconduct with respect
                to the business or affairs of the Company; (3) Executive’s conviction for
                a felony; or (4) Executive’s gross negligence in the performance of his
                duties hereunder, Executive’s intentional nonperformance of his duties
                hereunder, or Executive’s inattention to his duties hereunder continuing
                for ten (10) days after receipt of written notice of need to cure
                such
                performance, non-performance or inattention.

            

    

    

    
      	 	
              (d)

            	
              Good
                Reason.
                The Executive may terminate his employment for “Good Reason” by giving
                Company ten (10) days written notice
                if:

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    (i) he
      is
      assigned, without his express written consent, any duties materially
      inconsistent with his positions, duties, responsibilities, or status with
      Company as of the date hereof, or a change in his reporting responsibilities
      or
      titles as in effect as of the date hereof and such assignment or changes, as
      the
      case may be, continue for ten (10) days following the receipt of the written
      notice;

     

    

    (ii) his
      compensation is reduced; or

    

    (iii) Company
      does not pay any material amount of compensation due hereunder and then fails
      either to pay such amount within the ten (10) day notice period required for
      Termination hereunder or to contest in good faith such notice. 

     

     

    
      	
            	(e)	
              Without
                Cause.
                Company
                may terminate this Agreement without
                cause.

            

    

    

    9.
      Obligations of Company upon Termination.

    

    (a) In
      the
      event of the termination of Executive’s employment pursuant to Section 8 (a),
      (b) or (c), in addition to any Share compensation to which Executive may be
      entitled as provided in Section 3 hereof, Executive will be entitled to the
      salary compensation earned by him hereunder as of the date of such termination
      (plus, where applicable, life insurance or disability benefits).

    

    (b) In
      the
      event of the termination of Executive’s employment pursuant to Section 8 (d) or
      (e), in addition to any Share compensation payable pursuant to Section 3 hereof,
      Executive will be entitled to receive as severance pay in a lump sum payment
      due
      on the effective date of termination, the greater, of (1) an amount equal to
      the
      monthly salary compensation provided for in Section 3(a) multiplied by a factor
      of three (3) in addition to all payments of salary earned through the date
      of
      termination in one lump sum; or (2) an amount equal to the sum of all remaining
      monthly salary compensation payments provided for in Section 3(a) that Executive
      would have received had he remained employed through the entire twelve-month
      term of this Agreement. 

    

    10.
      Other
      Provisions. 

    

    (a)
      All
      notices and statements with respect to this Agreement must be in writing.
      Notices to the Company shall be delivered to the Chairman of the Board or any
      vice president of the Company. Notices to Executive may be delivered to
      Executive in person or sent to Executive’s then-current home address as
      indicated in the Company’s records.

    

    (b)
      This
      Agreement sets forth the entire agreement of the parties concerning the subjects
      covered herein; there are no promises, understandings, representations, or
      warranties of any kind concerning those subjects except as expressly set forth
      in this Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (c)
      Any
      modification of this Agreement must be in writing and signed by all parties;
      any
      attempt to modify this Agreement, orally or in writing, not executed by all
      parties will be void. 

    

    (d)
      If
      any provision of this Agreement, or its application to anyone or under any
      circumstances, is adjudicated to be invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability will not affect any other
      provision or application of this Agreement which can be given effect without
      the
      invalid or unenforceable provision or application and will not invalidate or
      render unenforceable such provision or application in any other
      jurisdiction.

    

    (e)
      This
      Agreement will be governed and interpreted under the laws of the United States
      of America and the laws of the State of Texas as applied to contracts made
      and
      carried out in Texas by residents of Texas.

    

    (f)
      No
      failure on the part of any party to enforce any provisions of this Agreement
      will act as a waiver of the right to enforce that provision.

    

    (g)
      Section headings are for convenience only and shall not define or limit the
      provisions of this Agreement.

    

    (h)
      This
      Agreement may be executed in several counterparts, each of which is an original.
      It shall not be necessary in making proof of this Agreement or any counterpart
      hereof to produce or account for any of the other counterparts. A copy of this
      Agreement signed by one party and faxed to another party shall be deemed to
      have
      been executed and delivered by the signing party as though an original. A
      photocopy of this Agreement shall be effective as an original for all
      purposes.

    

    11.
      Summary of Terms of Employment

    

      
        	
                Effective
                  Date

              	
                June
                  1, 2006

              
	 	 
	
                Term

              	
                One
                  year, renewable

              
	 	 
	
                Office
                  / Position

              	
                President
                  and Chief Executive Officer

              
	 	 
	
                Salary

              	
                $10,000
                  per month

              

      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    By
      signing this Agreement, Executive acknowledges that he (i) has read and
      understood the entire Agreement; (ii) has received a copy of it (iii) has had
      the opportunity to ask questions and consult counsel or other advisors about
      its
      terms; and (iv) agrees to be bound by it.

    

    Executed
      to be effective as of the Effective Date.

    

    
      	TRUE
              NORTH
              ENERGY CORP.	 	 	EXECUTIVE
	 	 	 	 
	 	 	 	 
	By:
              /s/ Massimiliano Pozzoni	 	 	/s/ John
              Folnovic
	
              
Massimiliano
              Pozzoni	 	 	
              
John
              Folnovic
	PresidentFIRST
      HORIZON ASSET SECURITIES INC.

     

    Depositor

    

     

    CITIGROUP
      GLOBAL MARKETS INC.

     

    Seller

     

    

     

    and

     

    THE
      BANK
      OF NEW YORK

     

    Trustee

     

    _____________________________________________________

     

    POOLING
      AGREEMENT

     

    Dated
      as
      of May 31, 2006

     

    _____________________________________________________

     

    FIRST
      HORIZON ALTERNATIVE MORTGAGE SECURITIES TRUST 2006-RE1

     

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2006-RE1

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF
      CONTENTS

     

     

     

    
      	
               

            	
               

            	
               

            	
              Page 

            	 
	
              ARTICLE
                I DEFINITIONS

            	 	 	
              5

            	 
	
              ARTICLE
                II CONVEYANCE OF TRUST FUND; REPRESENTATIONS AND
                WARRANTIES

            	 	 	
              16

            	 
	
              SECTION
                2.1 Conveyance of Trust Fund.

            	
               

            	
               

            	
              16

            	
               

            
	
              SECTION
                2.2 Acceptance by Trustee of the Trust Fund.

            	
               

            	
               

            	
              16

            	
               

            
	
              SECTION
                2.3 Representations and Warranties of the Depositor as to the Underlying
                Certificates.

            	
               

            	
               

            	
              17

            	
               

            
	
              SECTION
                2.4 REMIC Matters.

            	 	 	
              17

            	 
	
              ARTICLE
                III COLLECTIONS ON THE UNDERLYING CERTIFICATES; DISTRIBUTIONS ON
                THE
                CERTIFICATES

            	 	 	
              17

            	 
	
              SECTION
                3.1 Collections on the Underlying Certificates; Distribution
                Account.

            	
               

            	
               

            	
              17

            	
               

            
	
              SECTION
                3.2 Distributions on the Certificates.

            	
               

            	
               

            	
              18

            	
               

            
	
              SECTION
                3.3 Method of Distribution.

            	
               

            	
               

            	
              18

            	
               

            
	
              SECTION
                3.4 Monthly Statements to Certificateholders.

            	
               

            	
               

            	
              19

            	
               

            
	
              SECTION
                3.5 Separate Interest Distribution Account.

            	
               

            	
               

            	
              20

            	
               

            
	
              SECTION
                3.6 Separate Interest Trust.

            	 	 	
              21

            	 
	
              ARTICLE
                IV THE CERTIFICATES

            	 	 	
              21

            	 
	
              SECTION
                4.1 The Certificates.

            	
               

            	
               

            	
              21

            	
               

            
	
              SECTION
                4.2 Certificate Register; Registration of Transfer and Exchange of
                Certificates.

            	
               

            	
               

            	
              22

            	
               

            
	
              SECTION
                4.3 Mutilated, Destroyed, Lost or Stolen Certificates.

            	
               

            	
               

            	
              28

            	
               

            
	
              SECTION
                4.4 Persons Deemed Owners.

            	
               

            	
               

            	
              28

            	
               

            
	
              SECTION
                4.5 Access to List of Certificateholders’ Names and
                Addresses.

            	
               

            	
               

            	
              29

            	
               

            
	
              SECTION
                4.6 Maintenance of Office or Agency.

            	 	 	
              29

            	 
	
              ARTICLE
                V THE DEPOSITOR

            	 	 	
              29

            	 
	
              SECTION
                5.1 Liabilities of the Depositor.

            	
               

            	
               

            	
              29

            	
               

            
	
              SECTION
                5.2 Merger or Consolidation of the Depositor.

            	
               

            	
               

            	
              29

            	
               

            
	
              SECTION
                5.3 Limitation on Liability of the Depositor and Others.

            	
               

            	
               

            	
              30

            	
               

            
	
              ARTICLE
                VI CONCERNING THE TRUSTEE

            	
               

            	
               

            	
              31

            	
               

            
	
              SECTION
                6.1 Duties of Trustee.

            	
               

            	
               

            	
              31

            	
               

            
	
              SECTION
                6.2 Certain Matters Affecting the Trustee.

            	
               

            	
               

            	
              32

            	
               

            
	
              SECTION
                6.3 Trustee Not Liable for Certificates or the Underlying
                Certificates.

            	
               

            	
               

            	
              34

            	
               

            
	
              SECTION
                6.4 Trustee May Own Certificates.

            	
               

            	
               

            	
              34

            	
               

            
	
              SECTION
                6.5 Trustee’s Fees and Expenses.

            	
               

            	
               

            	
              34

            	
               

            
	
              SECTION
                6.6 Eligibility Requirements for Trustee.

            	
               

            	
               

            	
              34

            	
               

            
	
              SECTION
                6.7 Resignation and Removal of Trustee.

            	
               

            	
               

            	
              35

            	
               

            
	
              SECTION
                6.8 Successor Trustee.

            	
               

            	
               

            	
              36

            	
               

            
	
              SECTION
                6.9 Merger or Consolidation of Trustee.

            	
               

            	
               

            	
              36

            	
               

            
	
              SECTION
                6.10 Appointment of Co-Trustee or Separate Trustee.

            	
               

            	
               

            	
              37

            	
               

            
	
              SECTION
                6.11 Tax Matters.

            	 	 	
              38

            	 
	
              ARTICLE
                VII TERMINATION

            	 	 	
              40

            	 

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	
              SECTION
                7.1 Termination upon Optional Termination of the Underlying
                Certificates.

            	
               

            	
               

            	
              40

            	
               

            
	
              SECTION
                7.2 Final Distribution on the Certificates.

            	
               

            	
               

            	
              40

            	
               

            
	
              SECTION
                7.3 Additional Termination Requirements.

            	 	 	
              41

            	 
	
              ARTICLE
                VIII EXCHANGE ACT REPORTING

            	 	 	
              42

            	 
	
              SECTION
                8.1 Filing Obligations.

            	
               

            	
               

            	
              42

            	
               

            
	
              SECTION
                8.2 Form 10-D Filings.

            	
               

            	
               

            	
              42

            	
               

            
	
              SECTION
                8.3 Form 8-K Filings.

            	
               

            	
               

            	
              43

            	
               

            
	
              SECTION
                8.4 Form 10-K Filings.

            	
               

            	
               

            	
              43

            	
               

            
	
              SECTION
                8.5 Sarbanes-Oxley Certification.

            	
               

            	
               

            	
              44

            	
               

            
	
              SECTION
                8.6 Form 15 Filing.

            	
               

            	
               

            	
              44

            	
               

            
	
              SECTION
                8.7 Report on Assessment of Compliance and Attestation.

            	
               

            	
               

            	
              44

            	
               

            
	
              SECTION
                8.8 Amendments.

            	 	 	
              45

            	 
	
              ARTICLE
                IX MISCELLANEOUS PROVISIONS

            	 	 	
              45

            	 
	
              SECTION
                9.1 Amendment.

            	
               

            	
               

            	
              45

            	
               

            
	
              SECTION
                9.2 Recordation of Agreement; Counterparts.

            	
               

            	
               

            	
              47

            	
               

            
	
              SECTION
                9.3 Governing Law.

            	
               

            	
               

            	
              47

            	
               

            
	
              SECTION
                9.4 Intention of Parties.

            	
               

            	
               

            	
              47

            	
               

            
	
              SECTION
                9.5 Notices.

            	
               

            	
               

            	
              48

            	
               

            
	
              SECTION
                9.6 Severability of Provisions.

            	
               

            	
               

            	
              48

            	
               

            
	
              SECTION
                9.7 Limitation on Rights of Certificateholders.

            	
               

            	
               

            	
              48

            	
               

            
	
              SECTION
                9.8 Certificates Nonassessable and Fully Paid.

            	
               

            	
               

            	
              49

            	
               

            
	
              SECTION
                9.9 Limitations on Actions; No Proceedings.

            	 	 	
              49

            	 

    

     

    EXHIBITS

     

    
      	
              Exhibit
                A:

            	 	
              Form
                of Class A-1 Certificate

            	 	
              A-1

            
	
              Exhibit
                B:

            	 	
              Form
                of Residual Certificate

            	 	
              B-1

            
	
              Exhibit
                C:

            	 	
              Form
                of Reverse of Certificates

            	 	
              C-1

            
	
              Exhibit
                D:

            	 	
              Form
                of Class X Certificate

            	 	
              D-1

            
	
              Exhibit
                E:

            	 	
              Transfer
                Affidavit

            	 	
              E-1

            
	
              Exhibit
                F:

            	 	
              Form
                of Transferor Certificate

            	 	
              F-1

            
	
              Exhibit
                G:

            	 	
              Form
                of Investment Letter (Non-Rule 144A)

            	 	
              G-1

            
	
              Exhibit
                H:

            	 	
              Form
                of Investment Letter (Rule 144A)

            	 	
              H-1

            
	
              Exhibit
                I:

            	 	
              Form
                of Annual Certification (Trustee)

            	 	
              I-1

            
	
              Exhibit
                J:

            	 	
              List
                of Item 1119 Parties

            	 	
              J-1

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    

    THIS
      POOLING AGREEMENT, dated as of May 31, 2006, between FIRST HORIZON ASSET
      SECURITIES INC., a Delaware corporation, as depositor (the “Depositor”),
      CITIGROUP GLOBAL MARKETS INC., a Delaware corporation, as seller (the “Seller”)
      and THE BANK OF NEW YORK, a banking corporation organized under the laws of
      the
      State of New York, as trustee (the “Trustee”).

     

    WITNESSETH
      THAT

     

    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. For federal income tax purposes, the Trust
      Fund
      (exclusive of the Underlying Yield Supplement Amounts) will consist of a single
      REMIC. The Class A-1 Certificates will represent “regular interests” in the
      REMIC. The Residual Certificates will represent the sole class of residual
      interests in the REMIC, as described in Section 2.7. The “latest possible
      maturity date” for federal income tax purposes of all REMIC regular interests
      created hereby will be the Latest Possible Maturity Date.

     

    The
      following table sets forth characteristics of the Certificates, together with
      the minimum denominations and integral multiples in excess thereof in which
      such
      Classes shall be issuable (except that one Certificate of each Class of
      Certificates may be issued in a different amount and, in addition, one Residual
      Certificate representing the Tax Matters Person Certificate may be issued in
      a
      different amount):

    
       

      [Remainder
        of Page Intentionally Left Blank]

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	
              Class
                Designation

            	 	
              Initial
                Class 

              Certificate
                Balance

            	 	
              Pass-Through
                Rate

            	 	
              Minimum
                Denominations

            	 	
              Integral
                Multiples in Excess Minimum

            
	
              Class
                A-1

            	 	
              $________

            	 	
              5.500%

            	 	
              $25,000

            	 	
              $1,000

            
	
              Class
                A-R

            	 	
              N/A(1)

            	 	
              N/A

            	 	
              N/A

            	 	
              N/A

            

    

     

    (1)
      The
      Class A-R Certificates evidence the residual interest in the REMIC and will
      not
      have a Class Certificate Balance or a Pass-Through Rate. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

     

    
      	
              Accretion
                Directed Certificates

            	 	
              None.

            
	
              Accrual
                Certificates

            	 	
              None.

            
	
              Accrual
                Components

            	 	
              None.

            
	
              Book-Entry
                Certificates

            	 	
              All
                Classes of Certificates other than the Physical
                Certificates.

            
	
              Certificate
                Group

            	 	
              Not
                Applicable.

            
	
              COFI
                Certificates

            	 	
              None.

            
	
              Component
                Certificates

            	 	
              None.

            
	
              Components

            	 	
              None.

            
	
              Delay
                Certificates

            	 	
              All
                interest-bearing Classes of Certificates other than the Non-Delay
                Certificates, if any.

            
	
              ERISA-Restricted
                Certificates

            	 	
              The
                Residual Certificates, Private Certificates and Certificates of any
                Class
                that no longer satisfy the applicable rating requirement of the
                Underwriters’ Exemption, other than the ERISA Restricted Yield
                Supplemented Certificates.

            
	
              Floating
                Rate Certificates

            	 	
              None.

            
	
              Group
                I Senior Certificates

            	 	
              Not
                Applicable.

            
	
              Group
                II Senior Certificates

            	 	
              Not
                Applicable.

            
	
              Inverse
                Floating Rate Certificates

            	 	
              None.

            
	
              LIBOR
                Certificates

            	 	
              None.

            
	
              NAS
                Certificates

            	 	
              None.

            
	
              Non-Delay
                Certificates

            	 	
              None.

            
	
              Notional
                Amount Certificates

            	 	
              None.

            
	
              Offered
                Certificates

            	 	
              All
                Classes of Certificates other than the Physical
                Certificates.

            
	
              Physical
                Certificates

            	 	
              The
                Private Certificates.

            
	
              Planned
                Principal Classes

            	 	
              None.

            
	
              Principal
                Only Certificates

            	 	
              None.

            
	
              Private
                Certificates

            	 	
              The
                Class X Certificates and the Residual Certificates.

            
	
              Rating
                Agencies

            	 	
              Fitch
                and S&P.

            
	
              Regular
                Certificates

            	 	
              The
                Class A-1 Certificates.

            
	
              Residual
                Certificates

            	 	
              The
                Class A-R Certificates.

            
	
              Retail/Lottery
                Certificates

            	 	
              None.
                

            
	
              Scheduled
                Certificates

            	 	
              None.

            
	
              Senior
                Certificates

            	 	
              The
                Offered Certificates.

            
	
              Senior
                Mezzanine Certificates

            	 	
              None.

            
	
              Subordinated
                Certificates

            	 	
              None.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              Super
                Senior Certificates

            	 	
              None.

            
	
              Support
                Classes

            	 	
              None.

            
	
              Targeted
                Principal Classes

            	 	
              None.
                

            
	
              Underwriter

            	 	
              Citigroup
                Global Markets Inc.

            

    

     

    With
      respect to any of the foregoing designations as to which the corresponding
      reference is “None,” all defined terms and provisions herein relating solely to
      such designations shall be of no force or effect, and any calculations herein
      incorporating references to such designations shall be interpreted without
      reference to such designations and amounts. Defined terms and provisions herein
      relating to statistical rating agencies not designated above as Rating Agencies
      shall be of no force or effect.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      I 

    DEFINITIONS

     

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

     

    Accretion
      Directed Certificates: Not applicable. 

     

    Accretion
      Termination Date: Not applicable.

     

    Accrual
      Amount: Not applicable.

     

    Accrual
      Certificates: Not applicable.

     

    Accrued
      Certificate Interest: For any Class of Certificates entitled to distributions
      of
      interest for any Distribution Date, the interest accrued during the related
      Interest Accrual Period at the applicable Pass-Through Rate on the Class
      Certificate Balance (or Notional Amount, in the case of the Notional Amount
      Certificates) of such Class of Certificates immediately prior to such
      Distribution Date. 

     

    Additional
      Designated Information: As defined in Section 8.2.

     

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

     

    Available
      Funds: With respect to any Distribution Date, an amount equal to the sum of
      the
      Available Interest Collections and the Available Principal Collections for
      such
      Distribution Date.

     

    Available
      Interest Collections: With respect to any Distribution Date and the Underlying
      Certificates, all collections of interest received in respect of the Underlying
      Certificates on such Distribution Date, excluding any Underlying Yield
      Supplement Amounts.

     

    Available
      Principal Collections: With respect to any Distribution Date and the Underlying
      Certificates, all collections of principal received in respect of the Underlying
      Certificates on such Distribution Date.

     

    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 Dallas, or the State of Texas or the city
      in
      which the Corporate Trust Office of the Trustee is located are authorized or
      obligated by law or executive order to be closed.

     

    Certificate:
      Any one of the Certificates executed by the Trustee in substantially the forms
      attached hereto as exhibits.

     

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

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Certificate
      Purchase Agreement: The Certificate Purchase Agreement dated as of May 31,
      2006,
      by and between Citigroup Global Markets, Inc., as seller, and First Horizon
      Asset Securities Inc., as purchaser, as related to the transfer, sale and
      conveyance of the Underlying Certificates.

     

    Certificate
      Principal Balance: With respect to any Certificate and as of any Distribution
      Date, the Certificate Principal Balance on the date of the initial issuance
      of
      such Certificate, as reduced by:

     

    
      	(a)  	
              all
                amounts distributed on previous Distribution Dates on such Certificate
                on
                account of principal, and

            

    

     

    
      	(b)  	
              the
                principal portion of all Realized Losses previously allocated to
                such
                Certificate.

            

    

     

    Certificate
      Register: The register maintained pursuant to Section 5.2 hereof.

     

    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
      Depositor or the Seller or any affiliate or agent of the Depositor or the Seller
      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 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 Trustee is
      entitled to rely conclusively on a certification of the Depositor or any
      affiliate of the Depositor in determining which Certificates are registered
      in
      the name of an affiliate of the Depositor.

     

    Certification
      Party: As defined in Section 8.5.

     

    Certifying
      Person: As defined in Section 8.5.

     

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

     

    Class
      Certificate Balance: With respect to any Class of Certificates and as of any
      Distribution Date the aggregate of the Certificate Principal Balances of all
      Certificates of such Class as of such date.

     

    Closing
      Date: May 31, 2006.

     

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

     

    Corporate
      Trust Office: The designated office of the Trustee in the State of New York
      at
      which at any particular time its corporate trust business with respect to this
      Agreement shall be administered, which office at the date of the execution
      of
      this Agreement is located at The Bank of New York, 101 Barclay Street, 8E,
      New
      York, New York 10286 (Attn: Corporate Trust, Resecuritization Unit - First
      Horizon Asset Securities Inc. Series 2006-RE1), facsimile no. (212) 815-3115,
      and which is the address to which notices to and correspondence with the Trustee
      should be directed.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Definitive
      Certificates: Any Certificate evidenced by a Physical Certificate and any
      Certificate issued in lieu of a Book-Entry Certificate pursuant to Section
      5.2(e).

     

    Delay
      Certificates: As specified in the Preliminary Statement.

     

    Denomination:
      With respect to each Certificate, the amount set forth on the face thereof
      as
      the “Initial Certificate Balance of this Certificate” or the Percentage Interest
      appearing on the face thereof.

     

    Depositor:
      First Horizon Asset Securities 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: As to any Distribution Date, the earlier of (i) the third Business Day
      after the 15th day of each month, and (ii) the second Business Day prior to
      the
      related Distribution Date.

     

    Distribution
      Account: The separate Eligible Account created and maintained by the Trustee
      pursuant to Section 3.5 in the name of the Trustee for the benefit of the
      Certificateholders and designated “The Bank of New York, in trust for registered
      Holders of First Horizon Asset Securities Inc. Mortgage Pass-Through
      Certificates, Series 2006-RE1.” Funds in the Distribution Account shall be held
      in trust for the Certificateholders for the uses and purposes set forth in
      this
      Agreement.

     

    Distribution
      Account Deposit Date: As to any Distribution Date, 10:00 a.m. Central time
      on
      such Distribution Date.

     

    Distribution
      Date: 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 June 2006.

     

    EDGAR:
      The SEC’s Electronic Data Gathering, Analysis and Retrieval system.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Eligible
      Account: Any of (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
      Rating Agency 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 or the SAIF (to the limits established by
      the
      FDIC or the SAIF, as applicable) and the uninsured deposits in which accounts
      are otherwise secured such that, as evidenced by an Opinion of Counsel delivered
      to the Trustee and to each Rating Agency, the Certificateholders have a claim
      with respect to the funds in such account or a perfected first priority security
      interest against any collateral (which shall be limited to Permitted
      Investments) securing such funds that is superior to claims of any other
      depositors or creditors of the depository institution or trust company in which
      such account is maintained, or (iii) a trust account or accounts maintained
      with
      (a) the trust department of a federal or state chartered depository institution
      or (b) a trust company, acting in its fiduciary capacity or (iv) any other
      account acceptable to each Rating Agency. Eligible Accounts may bear interest,
      and may include, if otherwise qualified under this definition, accounts
      maintained with the Trustee.

     

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

     

    ERISA-Qualifying
      Underwriting: With respect to any ERISA-Restricted Certificate, a best efforts
      or firm commitment underwriting or private placement that meets the requirements
      of the Underwriters’ Exemption.

     

    ERISA-Restricted
      Certificate: As specified in the Preliminary Statement.

     

    Exchange
      Act: The Securities Exchange Act of 1934, as amended, and the rules and
      regulations promulgated thereunder.

     

    Exchange
      Act Reports: Any reports on Form 10-D, Form 8-K and Form 10-K required to be
      filed by the Depositor with respect to the Trust Fund under the Exchange
      Act.

     

    Final
      Scheduled Distribution Date: For all the Certificates is the Distribution Date
      on which the Underlying Final Scheduled Distribution Date occurs.

     

    FIRREA:
      The Financial Institutions Reform, Recovery, and Enforcement Act of
      1989.

     

    First
      Horizon: First Horizon Home Loan Corporation, a Kansas corporation and an
      indirect wholly owned subsidiary of First Horizon National Corporation, a
      Tennessee corporation.

     

    Fitch:
      Fitch Ratings and its successors and/or assigns. If Fitch is designated as
      a
      Rating Agency in the Preliminary Statement, for purposes of Section 11.5(b)
      the
      address for notices to Fitch shall be Fitch, Inc., One State Street Plaza,
      New
      York, New York 10004, Attention: Residential Mortgage Surveillance Group, or
      such other address as Fitch may hereafter furnish to the Depositor.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Form
      10-D
      Disclosure Item: With respect to any Person, any material litigation or
      governmental proceedings pending against such Person, or against any of the
      Trust Fund, the Depositor, the Trustee or any Co-Trustee if such Person has
      actual knowledge thereof.

     

    Form
      10-K
      Disclosure Item: With respect to any Person, (a) any Form 10-D Disclosure Item,
      and (b) any affiliations or relationships between such Person and any Item
      1119
      Party.

     

    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.

     

    Initial
      Component Balance: Not applicable.

     

    Interest
      Accrual Period: With respect to each Class of Delay Certificates and any
      Distribution Date, the calendar month prior to the month of such Distribution
      Date. With respect to any Non-Delay Certificates and any Distribution Date,
      the
      one month period commencing on the 25th day of the month preceding the month
      in
      which such Distribution Date occurs and ending on the 24th day of the month
      in
      which such Distribution Date occurs.

     

    Item
      1119
      Party: The Depositor, the Trustee, any originator identified in the Prospectus
      Supplement and any other material transaction party, as identified in Exhibit
      J
      hereto, as updated pursuant to Section 8.4.

     

    Latest
      Possible Maturity Date: The Distribution Date following the third anniversary
      of
      the scheduled maturity date of the Underlying Mortgage Loans having the latest
      scheduled maturity date as of the cut-off date specified in the Underlying
      PSA.

     

    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
      Servicer: First Horizon Home Loan Corporation, a Kansas corporation, and its
      successors and assigns, in its capacity as master servicer of the Underlying
      Mortgage Loans pursuant to the Underlying PSA.

     

    Monthly
      Statements: The statements to be delivered to the Certificateholders pursuant
      to
      Section 3.4.

     

    Moody’s:
      Moody’s Investors Service, Inc. and its successors and/or assigns. If Moody’s is
      designated as a Rating Agency in the Preliminary Statement, for purposes of
      Section 11.5(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 Pass-Through Monitoring, or such other address as Moody’s may
      hereafter furnish to the Depositor.

     

    Notice
      of
      Final Distribution: The notice to be provided pursuant to Section 9.2 to the
      effect that final distribution on any of the Certificates shall be made only
      upon presentation and surrender thereof.

     

    Offered
      Certificates: As specified in the Preliminary Statement.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    Officer’s
      Certificate: A Certificate 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.

     

    Opinion
      of Counsel: A written opinion of counsel, who may be counsel for the Depositor,
      including, in-house counsel, reasonably acceptable to the Trustee; 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,
      (ii)
      not have any direct financial interest in the Depositor or in any affiliate
      thereof, and (iii) not be connected with the Depositor as an officer, employee,
      promoter, underwriter, trustee, partner, director or person performing similar
      functions.

     

    Optional
      Termination: The termination of the trust created hereunder in connection with
      the purchase of the Underlying Certificates pursuant to Section 9.1(a)
      hereof.

     

    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 Trustee or delivered to the Trustee for
                cancellation; and

            

    

     

    
      	(b)  	
              Certificates
                in exchange for which or in lieu of which other Certificates have
                been
                executed and delivered by the Trustee pursuant to this
                Agreement.

            

    

     

    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.

     

    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.

     

    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:

     

    
      	 	
              (i)

            	
              obligations
                of the United States or any agency thereof, provided such obligations
                are
                backed by the full faith and credit of the United
                States;

            

    

     

    
      	 	
              (ii)

            	
              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;

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (iii)

            	
              commercial
                or finance company paper which is then receiving the highest commercial
                or
                finance company paper rating of each Rating
                Agency;

            

    

     

    
      	 	
              (iv)

            	
              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 (or in the case of the principal
                depository institution in a holding company system, the commercial
                paper
                or long-term unsecured debt obligations of such holding company,
                but only
                if Moody’s is not a Rating Agency) are then rated one of the two highest
                long-term and/or the highest short-term ratings of each Rating Agency
                for
                such securities;

            

    

     

    
      	 	
              (v)

            	
              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 receiving the highest short-term debt rating
                of
                each Rating Agency;

            

    

     

    
      	 	
              (vi)

            	
              guaranteed
                reinvestment agreements issued by any bank, insurance company or
                other
                corporation and receiving the highest short-term debt rating of each
                Rating Agency and 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 rating then assigned to the Certificates
                by either Rating Agency;

            

    

     

    
      	 	
              (vii)

            	
              repurchase
                obligations with respect to any security described in clauses (i)
                and (ii)
                above, in either case entered into with a depository institution
                or trust
                company (acting as principal) described in clause (iv)
                above;

            

    

     

    
      	 	
              (viii)

            	
              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 one of the two highest ratings of each
                Rating Agency (except if the Rating Agency is Moody’s or S&P, such
                rating shall be the highest commercial paper rating of Moody’s or S&P,
                as applicable, for any such
                securities);

            

    

     

    
      	 	
              (ix)

            	
              units
                of a taxable money-market portfolio having the highest rating assigned
                by
                each Rating Agency (except if Fitch is a Rating Agency and has not
                rated
                the portfolio, the highest rating assigned by Moody’s) 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; and

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (x)

            	
              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 rating then assigned to the Certificates by either Rating Agency,
                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) an “electing large partnership” as
      defined in section 775 of the Code, (vi) a Person that is not (a) a citizen
      or
      resident of the United States, (b) a corporation, partnership, or other entity
      created or organized in or under the laws of the United States, any state
      thereof or the District of Columbia, (c) an estate whose income from sources
      without the United States is includible in gross income for United States
      federal income tax purposes regardless of its connection with the conduct of
      a
      trade or business within the United States or (d) 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 United States persons have the authority to control
      all substantial decisions of the trust, unless such Person has furnished the
      transferor and the Trustee with a duly completed Internal Revenue Service Form
      W-8ECI or any applicable successor form, 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 created hereunder to fail to qualify as a REMIC at any time that the
      Certificates are outstanding; provided, however, that if a person is classified
      as a partnership under the Code, such person shall only be a Permitted
      Transferee if all of its beneficial owners are described in subclauses (a),
      (b),
      (c) or (d) of clause (vi) and the governing documents of such person prohibits
      a
      transfer of any interest in such person to any person described in clause (vi).
      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 Federal Home Loan
      Mortgage Corporation, a majority of its board of directors is not selected
      by
      such government unit.

     

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

     

    Physical
      Certificates: As specified in the Preliminary Statement.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    Plan:
      An
      employee benefit plan or other retirement arrangement which is subject to
      Section 406 of ERISA and/or Section 4975 of the Code or any entity whose
      underlying assets include such plan’s or arrangement’s assets by reason of their
      investment in the entity.

     

    Private
      Certificates: As specified in the Preliminary Statement.

     

    Prospectus:
      The Prospectus dated April 20, 2006 generally relating to mortgage pass-through
      certificates to be sold by the Depositor from time to time.

     

    Prospectus
      Supplement: The Prospectus Supplement, dated May 26, 2006, relating to the
      Offered Certificates.

     

    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. References herein to a given rating
      category of a Rating Agency shall mean such rating category without giving
      effect to any modifiers.

     

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

     

    Reference
      Bank: A leading bank with an established place of business in London engaged
      in
      transactions in Eurodollar deposits in the international Eurocurrency market,
      not controlled by, or under the common control with, the Trustee.

     

    Regular
      Certificates: As specified in the Preliminary Statement.

     

    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 SEC in the
      adopting release (Asset-Backed Securities, Securities Act Release No. 33-8518,
      70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the SEC, or as
      may
      be provided by the SEC or its staff from time to time.

     

    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
      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 the foregoing may be in effect from time to time
      as
      well as provisions of applicable state laws.

     

    Reportable
      Event: Any event required to be reported on Form 8-K, and in any event, the
      following:

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (a) entry
      into a definitive agreement related to the Trust Fund, the Certificates or
      the
      Underlying Certificates, or an amendment to a Transaction Document, even if
      the
      Depositor is not a party to such agreement (e.g., a servicing agreement with
      a
      servicer contemplated by Item 1108(a)(3) of Regulation AB);

     

    (b) termination
      of this Agreement or any other document entered into in connection with the
      Trust Fund, the Certificates or the Underlying Certificates (other than by
      expiration of the applicable agreement on its stated termination date or as
      a
      result of all parties completing their obligations under such agreement), even
      if the Depositor is not a party to such agreement (e.g., a servicing agreement
      with a servicer contemplated by Item 1108(a)(3) of Regulation AB);

     

    (c) with
      respect to the Depositor only, if the Depositor becomes aware of any bankruptcy
      or receivership with respect to the Depositor, the Trustee, the Co-Trustee,
      any
      enhancement or support provider contemplated by Items 1114(b) or 1115 of
      Regulation AB, or any other material party contemplated by Item 1101(d)(1)
      of
      Regulation AB;

     

    (d) the
      occurrence of an early amortization, performance trigger or other
      event;

     

    (e) the
      resignation, removal, replacement, substitution of the Trustee or any
      Co-Trustee;

     

    (f) with
      respect to the Depositor only, if the Depositor becomes aware that (i) any
      material enhancement or support specified in Item 1114(a)(1) through (3) of
      Regulation AB or Item 1115 of Regulation AB that was previously applicable
      regarding one or more classes of the Certificates has terminated other than
      by
      expiration of the contract on its stated termination date or as a result of
      all
      parties completing their obligations under such agreement; (ii) any material
      enhancement specified in Item 1114(a)(1) through (3) of Regulation AB or Item
      1115 of Regulation AB has been added with respect to one or more classes of
      the
      Certificates; or (iii) any existing material enhancement or support specified
      in
      Item 1114(a)(1) through (3) of Regulation AB or Item 1115 of Regulation AB
      with
      respect to one or more classes of the Certificates has been materially amended
      or modified; and 

     

    (g) a
      required distribution to Holders of the Certificates is not made as of the
      required Distribution Date under this Agreement.

     

    Residual
      Certificates: As specified in the Preliminary Statement.

     

    Responsible
      Officer: When used with respect to the Trustee, any Vice President, any
      Assistant Vice President, the Secretary, any Assistant Secretary, any Trust
      Officer or any other officer of the Trustee customarily performing functions
      similar to those performed by any of the above designated officers and 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.

     

    Sarbanes-Oxley
      Certification: As defined in Section 8.5.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    Seller:
      Citigroup Global Markets, Inc., a [Delaware] corporation, and its successors
      and
      assigns, in its capacity as seller of the Underlying Certificates pursuant
      to
      the Certificate Purchase Agreement.

     

    Separate
      Interest Distribution Account: A fund created as part of the Separate Interest
      Trust pursuant to Section 3.5(a) of this Agreement.

     

    Separate
      Interest Trust: A trust created pursuant to Section 3.6(a) of this
      Agreement.

     

    Servicing
      Criteria: The “servicing criteria” set forth in Item 1122(d) of Regulation
      AB.

     

    S&P:
      Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and its
      successors and/or assigns. If S&P is designated as a Rating Agency in the
      Preliminary Statement, for purposes of Section 11.5(b) the address for notices
      to S&P shall be Standard & Poor’s, 55 Water Street, 41st Floor, New
      York, New York 10041, Attention: Mortgage Surveillance Monitoring, or such
      other
      address as S&P may hereafter furnish to the Depositor.

     

    Startup
      Day: The Closing Date.

     

    Tax
      Matters Person: The person designated as “tax matters person” in the manner
      provided under Treasury regulation § 1.860F-4(d) and Treasury regulation §
301.6231(a)(7)-1. Initially, the Tax Matters Person shall be the
      Trustee.

     

    Tax
      Matters Person Certificate: The Class I-A-R Certificates with a Denomination
      of
      $0.01.

     

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

     

    Trust
      Fund: The corpus of the trust created hereunder consisting of (i) the Underlying
      Certificates and all collections received by the Trustee on or with respect
      thereto after the Closing Date, other than the Underlying Yield Supplement
      Amounts; (ii) all of the Depositor’s rights as purchaser under the Certificate
      Purchase Agreement; (iii) the Distribution Account and all amounts deposited
      therein pursuant to the applicable provisions of this Agreement; and (iv) all
      proceeds of the conversion, voluntary or involuntary, of any of the
      foregoing.

     

    Trustee:
      The Bank of New York and its successors and, if a successor trustee is appointed
      hereunder, such successor.

     

    Underlying
      Certificates: An 82.29% interest in the Class I-A-1 Certificates and a 63.71%
      interest in the Class I-A-3 Certificates, each issued pursuant to the Underlying
      PSA. 

     

    Underlying
      Final Scheduled Distribution Date: The last scheduled distribution date for
      the
      Underlying Certificates as described in the Underlying Prospectus
      Supplement.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Underlying
      Monthly Statement: The statement delivered to the holders of the Underlying
      Certificates pursuant to Section 4.6 of the Underlying PSA.

     

    Underlying
      Prospectus Supplement: The Prospectus Supplement dated March 28, 2005 to the
      Prospectus dated February 25, 2005 with respect to the offering of the
      Underlying Certificates.

     

    Underlying
      PSA: The Pooling and Servicing Agreement dated as of March 1, 2005 by and among
      the Depositor, the Master Servicer and the Trustee pursuant to which the
      Underlying Certificates were issued.

     

    Underlying
      Yield Supplement Amount: 63.71% of the “Class I-A-1/Class I-A-2 Yield Supplement
      Amount” as such term is defined in the Underlying PSA.

     

    Underwriter:
      As specified in the Preliminary Statement.

     

    Underwriters’
      Exemption: An individual administrative exemption granted by the U.S. Department
      of Labor to the Underwriter providing exceptions from some of the prohibited
      transaction rules of ERISA with respect to the initial purchase, the holding
      and
      the subsequent resale by employee benefit plans in certificates in pass-through
      trusts having assets and meeting conditions described therein, as amended by
      Prohibited Transaction Exemption 2000-58 (65 Fed. Reg. 67765, November 13,
      2000), as amended, and Prohibited Transaction Exemption 2002-41 (67 Fed. Reg.
      54487, August 22, 2002), as amended (or any successor thereto), or any
      substantially similar administrative exemption granted by the U.S. Department
      of
      Labor.

     

    Voting
      Rights: The portion of the voting rights of all of the Certificates which is
      allocated to any Certificate. As of any date of determination, (a) 99% of all
      Voting Rights will be allocated among all Holders of the Certificates, other
      than the Class A-R Certificates, in proportion to their then outstanding Class
      Certificate Balance; and (b) 1.0% of all voting rights will be allocated among
      the Holders of the Class A-R Certificates (such Voting Rights to be allocated
      among the Holders of Certificates of such Class in accordance with their
      respective Percentage Interests).

     

    ARTICLE
      II  

    CONVEYANCE
      OF TRUST FUND; 

    REPRESENTATIONS
      AND WARRANTIES

     

    SECTION
      2.1   Conveyance
      of Trust Fund. 

     

    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, without recourse, all the right, title and
      interest of the Depositor in and to the Trust Fund together with the Depositor’s
      right to require the Seller to cure any breach of a representation or
      warranty made by the Seller pursuant to the Certificate Purchase
      Agreement.

     

    SECTION
      2.2   Acceptance
      by Trustee of the Trust Fund.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    The
      Trustee acknowledges receipt of the Underlying Certificates and the other assets
      constituting the Trust Fund and declares that it will hold the Underlying
      Certificates and such other assets as are included in the Trust Fund in trust
      for the exclusive use and benefit of all present and future Certificateholders.
      

     

    SECTION
      2.3   Representations
      and Warranties of the Depositor as to the Underlying Certificates.

     

    The
      Depositor hereby represents and warrants to the Trustee with respect to each
      Underlying Certificate as of the date hereof or such other date set forth herein
      that as of the Closing Date, and following the transfer of the Underlying
      Certificates to it pursuant to the Certificate Purchase Agreement and
      immediately prior to the conveyance of the Underlying Certificates by it to
      the
      Trustee pursuant to Section 2.1 hereof, the Depositor had good title to the
      Underlying Certificates (excluding any Underlying Yield Supplement Amounts
      payable in respect thereof), free and clear of any liens, offsets, defenses
      or
      counterclaims.

     

    It
      is
      understood and agreed that the representations and warranties set forth in
      this
      Section 2.3 shall survive delivery of the Underlying Certificates to the
      Trustee. Upon discovery by the Depositor or the Trustee of a breach of the
      foregoing representation and warranty (referred to herein as a “breach”), which
      breach materially and adversely affects the interest of the Certificateholders,
      the party discovering such breach shall give prompt written notice to the others
      and to each Rating Agency.

     

    SECTION
      2.4   REMIC
      Matters.

     

    The
      Preliminary Statement sets forth the designations and “latest possible maturity
      date” for federal income tax purposes of all REMIC regular interests created
      hereby. The Class A-R Certificates shall be the sole class of residual interest
      in the REMIC created hereunder. The “Startup Day” for purposes of the REMIC
      Provisions shall be the Closing Date. The Tax Matters Person with respect to
      the
      REMIC hereunder shall be the Trustee and the Trustee shall hold the Tax Matters
      Person Certificate. The REMIC’s taxable year shall be the calendar year and its
      accounts shall be maintained using the accrual method. 

     

    ARTICLE
      III  

    COLLECTIONS
      ON THE UNDERLYING CERTIFICATES; DISTRIBUTIONS 
ON THE
      CERTIFICATES

     

    SECTION
      3.1   Collections
      on the Underlying Certificates; Distribution Account.

     

    
      	(a)  	
              The
                Trustee shall establish and maintain, on behalf of the Certificateholders,
                the Distribution Account. The Trustee shall, promptly upon receipt,
                deposit in the Distribution Account and retain therein the
                following:

            

    

     

    
      	(i)  	
              the
                Available Funds collected in respect of the Underlying Certificates
                on
                each Distribution Date; and

            

    

     

    
      	(ii)  	
              any
                other amounts deposited hereunder which are required to be deposited
                in
                the Distribution Account.

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    All
      funds
      deposited in the Distribution Account shall be held by the Trustee in trust
      for
      the related Certificateholders until disbursed in accordance with this
      Agreement. In no event shall the Trustee incur liability for withdrawals from
      the Distribution Account at the direction of the Depositor.

     

    
      	(b)  	
              The
                funds on deposit in the Distribution Account from time to time shall
                remain uninvested.

            

    

     

    
      	(c)  	
              On
                each Distribution Date, the Trustee shall withdraw funds from the
                Distribution Account for distributions to the related Certificateholders
                in the manner specified in this Agreement; provided that the Trustee
                will
                withhold from the amounts so withdrawn the amount of any taxes that
                it is
                authorized to withhold pursuant to the last paragraph of Section
                6.11 of
                this Agreement.

            

    

     

    SECTION
      3.2   Distributions
      on the Certificates.

     

    
      	(a)  	
              On
                each Distribution Date, the Trustee shall withdraw the Available
                Interest
                Collections from the Distribution Account and apply such funds in
                the
                following order and priority and, in each case, to the extent of
                Available
                Interest Collections remaining:

            

    

     

    
      	(i)  	
              to
                the Depositor and/or the Trustee, as applicable, any amounts owed
                to such
                Persons as payment for or reimbursement of their respective expenses
                and
                indemnities under Sections 5.3 and 6.2 of this
                Agreement;

            

    

     

    
      	(ii)  	
              to
                the Holders of the Class A-1 Certificates, the Accrued Certificate
                Interest on such Class for such Distribution Date;
                and

            

    

     

    
      	(iii)  	
              to
                the Holders of the Class A-1 Certificates, any Accrued Certificate
                Interest thereon remaining undistributed from previous Distribution
                Dates.

            

    

     

    
      	(b)  	
              On
                each Distribution Date, the Trustee shall withdraw the Available
                Principal
                Collections from the Distribution Account and shall distribute such
                funds
                to the Holders of the Class A-1 Certificates in reduction of the
                Class
                Certificate Balance thereof.

            

    

     

    
      	(c)  	
              On
                each Distribution Date, the Trustee shall distribute to the Holders
                of the
                Class A-R Certificates any Available Funds remaining in the REMIC
                created
                hereunder for such Distribution Date after application of all amounts
                described in clauses (a) through (c) of this Section
                3.2.

            

    

     

    SECTION
      3.3   Method
      of
      Distribution.

     

    
      	(a)  	
              All
                distributions with respect to each Class of Certificates on each
                Distribution Date shall be made pro
                rata
                among the outstanding Certificates of such Class, based on the Percentage
                Interest in such Class represented by each Certificate. Payments
                to the
                Certificateholders on each Distribution Date will be made by the
                Trustee
                to the Certificateholders of record on the related Record Date by
                check or
                money order mailed to a Certificateholder at the address appearing
                in the
                Certificate Register, or upon written request by such Certificateholder
                to
                the Trustee made not later than the applicable Record Date, by wire
                transfer to a U.S. depository institution acceptable to the Trustee,
                or by
                such other means of payment as such Certificateholder and the Trustee
                shall agree. 

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      	(b)  	
              Each
                distribution with respect to a Book-Entry Certificate shall be paid
                to the
                Depository, which shall credit the amount of such distribution to
                the
                accounts of its Depository Participants in accordance with its normal
                procedures. Each Depository Participant shall be responsible for
                disbursing such distribution to the Certificate Owners that it represents
                and to each financial intermediary for which it acts as agent. Each
                such
                financial intermediary shall be responsible for disbursing funds
                to the
                Certificate Owners that it represents. All such credits and disbursements
                with respect to a Book-Entry Certificate are to be made by the Depository
                and the Depository Participants in accordance with the provisions
                of the
                applicable Certificates. The Trustee shall not have any responsibility
                therefor except as otherwise provided by applicable
                law.

            

    

     

    
      	(c)  	
              The
                Trustee shall withhold or cause to be withheld such amounts as it
                reasonably determines are required by the Code (giving full effect
                to any
                exemptions from withholding and related certifications required to
                be
                furnished by Certificateholders or Certificate Owners and any reductions
                to withholding by virtue of any bilateral tax treaties and any applicable
                certification required to be furnished by Certificateholders or
                Certificate Owners with respect thereto) from distributions to be
                made to
                Non-U.S. Persons. If the Trustee reasonably determines that a more
                accurate determination of the amount required to be withheld for
                a
                distribution can be made within a reasonable period after the scheduled
                date for such distribution, it may hold such distribution in trust
                for a
                Holder of a Residual Certificate until such determination can be
                made. For
                the purposes of this paragraph, a “Non-U.S. Person” is (i) an individual
                other than a citizen or resident of the United States, (ii) a partnership,
                corporation or entity treated as a partnership or corporation for
                U.S.
                federal income tax purposes not formed under the laws of the United
                States, any state thereof or the District of Columbia (unless, in
                the case
                of a partnership, Treasury regulations provide otherwise), (iii)
                any
                estate, the income of which is not subject to U.S. federal income
                taxation, regardless of source, and (iv) any trust, other than a
                trust
                that a court within the United States is able to exercise primary
                supervision over the administration of the trust and one or more
                U.S.
                Persons have the authority to control all substantial decisions of
                the
                trust.

            

    

     

    SECTION
      3.4   Monthly
      Statements to Certificateholders.

     

    
      	(a)  	
              Not
                later than each Distribution Date, the Trustee shall prepare and
                cause to
                be forwarded by first class mail to each Certificateholder, the Depositor
                and each Rating Agency the Underlying Monthly Statement for such
                Distribution Date and a statement that complies with Item 1121 of
                Regulation AB setting forth, among other things, with respect to
                the
                related distribution: 

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	(i)  	
              the
                amount thereof allocable to
                principal;

            

    

     

    
      	(ii)  	
              the
                amount thereof allocable to
                interest;

            

    

     

    
      	(iii)  	
              if
                the distribution to the Holders of a Class of Certificates is less
                than
                the full amount that would be distributable to such Holders if there
                were
                sufficient Available Funds, the amount of the shortfall and the allocation
                thereof as between principal and
                interest;

            

    

     

    
      	(iv)  	
              the
                amount of expenses and indemnities paid or reimbursed to the Depositor
                and/or the Trustee pursuant to Section 3.2(a)(1);
                

            

    

     

    
      	(v)  	
              the
                Class Certificate Balance of the Class A-1 Certificates after giving
                effect to the distribution of principal on such Distribution Date;
                and

            

    

     

    
      	(vi)  	
              the
                Pass-Through Rate for the Class A-1 Certificates with respect to
                such
                Distribution Date.

            

    

     

    
      	(b)  	
              In
                lieu of, or in addition to, furnishing the Monthly Statements by
                first
                class mail as provided in subparagraph (a) above, the Trustee may
                post the
                Monthly Statements on its website located at
                www.bnyinvestorreporting.com.

            

    

     

    
      	(c)  	
              The
                Trustee’s responsibility for disbursing the Monthly Statements to the
                Certificateholders is limited to the availability, timeliness and
                accuracy
                of the Underlying Monthly
                Statements.

            

    

     

    
      	(d)  	
              Within
                a reasonable period of time after the end of each calendar year,
                the
                Trustee shall cause to be furnished 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) and (a)(ii) of this Section
                3.4
                aggregated for such calendar year or applicable portion thereof during
                which such Person was a Certificateholder. Such obligation of the
                Trustee
                shall be deemed to have been satisfied to the extent that substantially
                comparable information shall be provided by the Trustee pursuant
                to any
                requirements of the Code as from time to time in effect.
                

            

    

     

    SECTION
      3.5   Separate
      Interest Distribution Account.

     

    
      	(a)  	
              On
                the Closing Date, the Trustee shall establish and maintain in its
                name, in
                trust for the benefit of the holders of the Class X Certificates,
                the
                Separate Interest Distribution Account. The Separate Interest Distribution
                Account 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 of the Trustee
                held pursuant to this Agreement. The Separate Interest Distribution
                Account shall be an asset of the Separate Interest Trust.
                

            

    

     

    
      	(b)  	
              On
                each Distribution Date, after the deposit of Underlying Yield Supplement
                Amounts, if any, into the Separate Interest Distribution Account
                on such
                Distribution Date pursuant to Section 3.6(b), the Trustee will distribute
                any Underlying Yield Supplement Amount to the holders of the Class
                X
                Certificates.

            

    

     

    
      
        
        

      

      
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      	(c)  	
              Funds
                in the Separate Interest Distribution Account shall not be invested.
                The
                Owner of the Class X Certificates shall own the Separate Interest
                Distribution Account for federal income tax
                purposes.

            

    

     

    SECTION
      3.6   Separate
      Interest Trust.

     

    
      	(a)  	
              The
                Seller hereby creates a trust, separate from the Trust, for the benefit
                of
                the holders of the Class X Certificates (such trust is referred to
                herein
                as the “Separate Interest Trust”) and hereby transfers, assigns and
                conveys the sum of $1.00 and all of its right, title and interest
                in and
                to the Underlying Yield Supplement Amounts into the Separate Interest
                Trust. The Separate Interest Distribution Account will be an asset
                of the
                Separate Interest Trust. The Trustee shall be the trustee of the
                Separate
                Interest Trust. The Separate Interest Trust shall not be an asset
                of the
                Trust Fund. 

            

    

     

    
      	(b)  	
              The
                Trustee shall deposit into the Separate Interest Distribution Account
                any
                and all Underlying Yield Supplement Amounts received from time to
                time in
                respect of the Underlying
                Certificates.

            

    

     

    
      	(c)  	
              On
                the Closing Date, the Separate Interest Trust will issue the Class
                X
                Certificates in substantially the form attached hereto as Exhibit
                D.
                The Class X Certificates will evidence an undivided beneficial ownership
                interest in the Separate Interest Trust. Upon termination of the
                Certificates, following application by the Trustee of funds on the
                applicable Distribution Date to pay amounts owed pursuant to Section
                3.5(b) hereof, the Trustee shall terminate the Separate Interest
                Distribution Account and the Separate Interest Trust. Upon termination
                of
                the Separate Interest Distribution Account and the Separate Interest
                Trust, any amounts remaining in the Separate Interest Distribution
                Account
                after distribution of Underlying Yield Supplement Amounts, if any,
                owed to
                the holders of the Class X Certificates, shall be distributed to
                the
                Seller.

            

    

     

    ARTICLE
      IV  

    THE
      CERTIFICATES

     

    SECTION
      4.1   The
      Certificates.

     

    The
      Certificates shall be substantially in the forms attached hereto as exhibits.
      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 9.2 hereof respecting the final distribution on the Certificates,
      on
      each Distribution Date the Trustee 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 (i) such Holder
      has
      so notified the Trustee at least five Business Days prior to the related Record
      Date and (ii) such Holder shall hold (A) 100% of the Class Certificate Balance
      of any Class of Certificates or (B) Certificates of any Class with aggregate
      principal Denominations of not less than $1,000,000 or (y) by check mailed
      by
      first class mail to such Certificateholder at the address of such Holder
      appearing in the Certificate Register.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    The
      Certificates shall be executed by manual or facsimile signature on behalf of
      the
      Trustee 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 Trustee shall bind the Trustee,
      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 Trustee 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 Trustee 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 Trustee on a continuous
      basis, an adequate inventory of Certificates to facilitate
      transfers.

     

    SECTION
      4.2   Certificate
      Register; Registration of Transfer and Exchange of Certificates.

     

    
      	(a)  	
              The
                Trustee shall maintain, or cause to be maintained in accordance with
                the
                provisions of Section 5.6 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 Trustee
                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 Trustee 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 Trustee. Whenever any Certificates
      are
      so surrendered for exchange, the Trustee 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 Trustee duly executed by the Holder thereof or
      his
      attorney duly authorized in writing.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    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.

     

    All
      Certificates surrendered for registration of transfer or exchange shall be
      cancelled and subsequently destroyed by the Trustee in accordance with the
      Trustee’s customary procedures.

     

    
      	(b)  	
              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, any Holder of a Private Certificate
                (other than a Private Certificate that is a Book-Entry Certificate)
                desiring to effect such transfer and such Certificateholder’s prospective
                transferee shall each certify to the Trustee in writing the facts
                surrounding the transfer in substantially the forms set forth in
                Exhibit F
                (the “Transferor Certificate”) and (i) deliver a letter in substantially
                the form of either Exhibit G (the “Investment Letter”) or Exhibit H (the
                “Rule 144A Letter”) or (ii) there shall be delivered to the Trustee at the
                expense of the transferor an Opinion of Counsel that such transfer
                may be
                made pursuant to an exemption from the Securities Act.
                

            

    

     

    Each
      Holder of a Private Certificate that is a Book-Entry Certificate, by its
      acquisition thereof (or a beneficial interest therein), shall be deemed to
      have
      represented and warranted for the benefit of the Depositor, the Servicer and
      the
      Trustee that (a) it understands that the Private Certificates are not being
      registered under the Securities Act, or any state securities laws and are being
      transferred to it in a transaction that is exempt from the registration
      requirements of the Securities Act and any such laws, (b) it has such knowledge
      and experience in financial and business matters that it is capable of
      evaluating the merits and risks of investments in the Private Certificates,
      (c)
      it has had the opportunity to ask questions of and receive answers from the
      Depositor concerning the purchase of the Private Certificates and all matters
      relating thereto or any additional information deemed necessary to its decision
      to purchase the Private Certificates, (d) neither it, nor any anyone acting
      on
      its behalf, has offered, transferred, pledged, sold or otherwise disposed of
      the
      Private Certificates or any interest therein, or solicited any offer to buy
      or
      accept a transfer, pledge or other disposition of the Private Certificates
      or
      any interest therein from, or otherwise approached or negotiated with respect
      to
      the Private Certificates or any interest therein 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
      Private Certificates under the Securities Act or that would render the
      disposition of the Private Certificates a violation of Section 5 of the
      Securities Act or require registration pursuant thereto, nor will it act, nor
      has it authorized or will authorize any person to act, in such manner with
      respect to the Private Certificates, (e) it is a “qualified institutional buyer”
as that term is defined in Rule 144A under the Securities Act (“Rule 144A”), (f)
      it is aware that the sale of the Private Certificates to it is being made in
      reliance on Rule 144A, (g) it is acquiring the Private Certificates for its
      own
      account or for resale pursuant to Rule 144A and it understands that the Private
      Certificates may be resold, pledged or transferred only (A) to a person whom
      it
      reasonably believes 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 (B) pursuant to another exemption from registration under the
      Securities Act; and (h) it understands that no representation is made as to
      the
      availability of the exemption provided by Rule 144A for resales of the Private
      Certificates.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    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 Trustee shall cooperate with the Depositor in providing the Rule
      144A
      information referenced in the preceding sentence, including providing to the
      Depositor 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 by its acceptance of
      a
      Private Certificate does hereby agree to, indemnify the Trustee 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 (in the form of a Definitive
      Certificate) shall be made unless the Trustee shall have received a Transferor
      Certificate from the related transferor and either (i) a representation from
      the
      transferee of such Certificate acceptable to and in form and substance
      satisfactory to the Trustee (in the event such Certificate is a Private
      Certificate, such requirement is satisfied only by the Trustee’s receipt of a
      representation letter from the transferee substantially in the form of Exhibit
      G
      or Exhibit H), to the effect that such transferee is not an employee benefit
      plan or arrangement subject to Section 406 of ERISA or a plan or arrangement
      subject to Section 4975 of the Code, nor a person acting on behalf of any such
      plan or arrangement, nor using the assets of any such plan or arrangement to
      effect such transfer, (ii) in the case of a Private Certificate (that has been
      subject to an ERISA-Qualified Underwriting) or a Residual Certificate, 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) in the case of any such ERISA-Restricted Certificate
      presented for registration in the name of an employee benefit plan subject
      to
      ERISA, or a plan or arrangement subject to Section 4975 of the Code (or
      comparable provisions of any subsequent enactments), or a trustee of any such
      plan or any other person acting on behalf of any such plan or arrangement,
      or
      using such plan’s or arrangement’s assets, an Opinion of Counsel satisfactory to
      the Trustee, which Opinion of Counsel shall not be an expense of either the
      Trustee, the Depositor or the Trust Fund, addressed to the Trustee 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 Section 4975
      of
      the Code and will not subject the Trustee or the Depositor to any obligation
      in
      addition to those expressly undertaken in this Agreement or to any liability.
      Notwithstanding anything else to the contrary herein, any purported transfer
      of
      an ERISA-Restricted Certificate to or on behalf of an employee benefit plan
      subject to ERISA or to the Code without the delivery to the Trustee of an
      Opinion of Counsel satisfactory to the Trustee as described above shall be
      void
      and of no effect.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    Each
      Holder of a Private Certificate that is a Book-Entry Certificate, by its
      acquisition thereof (or a beneficial interest therein) shall be deemed to have
      represented and warranted for the benefit of the Depositor, the Servicer, the
      Trustee and the other Certificateholders, that (a) it is not an employee benefit
      plan or arrangement that is subject to Section 406 of ERISA, or a plan or
      arrangement that is subject to Section 4975 of the Internal Revenue Code of
      1986, as amended, nor is it acting on behalf of any such plan or arrangement
      or
      using the assets of any such plan or arrangement to effect such acquisition,
      or
      (b) if it is an insurance company, in the case of Private Certificates that
      have
      been the subject of an ERISA-Qualifying Underwriting, it is purchasing the
      Private Certificates with funds contained in an “insurance company general
      account” (as defined in Section V(e) of Prohibited Transaction Class Exemption
      95-60 (“PTCE 95-60”)) and its purchase and holding of the Private Certificates
      are covered under Sections I and III of PTCE 95-60.

     

    To
      the
      extent permitted under applicable law (including, but not limited to, ERISA),
      the Trustee shall be under no liability to any Person for any registration
      of
      transfer of any ERISA-Restricted Certificate that is in fact not permitted
      by
      this Section 5.2(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
      Trustee in accordance with the foregoing requirements. The Trustee shall be
      entitled, but not obligated, to recover from any Holder of any ERISA-Restricted
      Certificate that was in fact a Plan or a Person acting on behalf of any such
      Plan any payments made on such ERISA-Restricted Certificate at and after either
      such time. Any such payments so recovered by the Trustee shall be paid and
      delivered by the Trustee to the last preceding Holder of such Certificate that
      is not such a Plan or Person acting on behalf of a Plan. 

     

    
      	(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
                Trustee of any change or impending change in its status as a Permitted
                Transferee.

            

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
      	(ii)  	
              No
                Ownership Interest in a Residual Certificate may be registered on
                the
                Closing Date or thereafter transferred, and the Trustee shall not
                register
                the Transfer of any Residual Certificate unless, in addition to the
                certificates required to be delivered to the Trustee under subparagraph
                (b) above, the Trustee 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 E and with a certificate of the
                proposed transferor in the form attached hereto as Exhibit
                F.

            

    

     

    
      	(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 5.2(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
                5.2(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 Trustee shall be under
                no
                liability to any Person for any registration of Transfer of a Residual
                Certificate that is in fact not permitted by Section 5.2(b) and this
                Section 5.2(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, in the case of a Residual Certificate which is also
                a
                Private Certificate, either the Rule 144A Letter or the Investment
                Letter.
                The Trustee 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 Trustee shall be paid and delivered by the Trustee 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 Trustee, 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.

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    The
      restrictions on Transfers of a Residual Certificate set forth in this Section
      5.2(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 Trustee of an Opinion of Counsel, which Opinion of Counsel
      shall
      not be an expense of the Trust Fund or the Trustee, to the effect that the
      elimination of such restrictions will not cause the REMIC created 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 Trustee, 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 5.2 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
                Trustee
                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 Trustee shall deal with the Depository, Depository Participants
                and indirect participating firms as representatives 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 representatives shall not be deemed to be inconsistent
                if they are made with respect to different Certificate Owners; and
                (vi)
                the Trustee may 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.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    If
      (x)
      (i) the Depository or the Depositor advises the Trustee in writing that the
      Depository is no longer willing or able to properly discharge its
      responsibilities as Depository, and (ii) the Trustee or the Depositor is unable
      to locate a qualified successor, (y) the Depositor at its option advises the
      Trustee in writing that it elects to terminate the book-entry system through
      the
      Depository or (z) Certificate Owners representing at least 51% of the Class
      Certificate Balance of the Book-Entry Certificates together advise the Trustee
      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, the Trustee 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 Trustee of the related Class of Certificates by the Depository,
      accompanied by the instructions from the Depository for registration, the
      Trustee shall issue the Definitive Certificates. Neither the Depositor nor
      the
      Trustee 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 Trustee 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 Trustee, to the extent applicable with
      respect to such Definitive Certificates and the Trustee shall recognize the
      Holders of the Definitive Certificates as Certificateholders hereunder; provided
      that the Trustee 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
      4.3   Mutilated,
      Destroyed, Lost or Stolen Certificates.

     

    If
      (a)
      any mutilated Certificate is surrendered to the Trustee, or the Trustee receives
      evidence to its satisfaction of the destruction, loss or theft of any
      Certificate and (b) there is delivered to the Trustee such security or indemnity
      as may be required by it to save it harmless, then, in the absence of notice
      to
      the Trustee that such Certificate has been acquired by a bona fide purchaser,
      the Trustee 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 5.3, the Trustee may require the payment
      of a sum sufficient to cover any tax or other governmental charge that may
      be
      imposed in relation thereto and any other expenses (including the fees and
      expenses of the Trustee) connected therewith. Any replacement Certificate issued
      pursuant to this Section 5.3 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
      4.4   Persons
      Deemed Owners.

     

    
      
        
        

      

      
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    The
      Trustee and any agent of 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 neither the Trustee nor any agent of the Trustee shall be
      affected by any notice to the contrary.

     

    SECTION
      4.5   Access
      to
      List of Certificateholders’ Names and Addresses.

     

    If
      three
      or more Certificateholders or Certificate Owners (a) request such information
      in
      writing from the Trustee, (b) state that such Certificateholders or Certificate
      Owners 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 or Certificate Owners propose
      to
      transmit, or if the Depositor shall request such information in writing from
      the
      Trustee, then the Trustee shall, within ten Business Days after the receipt
      of
      such request, provide the Depositor or such Certificateholders or Certificate
      Owners at such recipients’ expense the most recent list of the
      Certificateholders of such Trust Fund held by the Trustee, if any. The Depositor
      and every Certificateholder or Certificate Owner, by receiving and holding
      a
      Certificate, agree that the Trustee 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
      4.6   Maintenance
      of Office or Agency.

     

    The
      Trustee will maintain or cause to be maintained at its expense an office or
      offices or agency or agencies in New York City where Certificates may be
      surrendered for registration of transfer or exchange. The Trustee initially
      designates its Corporate Trust Office for such purposes. The Trustee will give
      prompt written notice to the Certificateholders of any change in such location
      of any such office or agency.

     

    ARTICLE
      V 

    THE
      DEPOSITOR

     

    SECTION
      5.1   Liabilities
      of the Depositor.

     

    The
      Depositor shall be liable in accordance herewith only to the extent of the
      obligations specifically and respectively imposed upon and undertaken by it
      herein.

     

    SECTION
      5.2   Merger
      or
      Consolidation of the Depositor.

     

    The
      Depositor will keep in full effect its existence, rights and franchises as
      a
      corporation 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 in each jurisdiction in which such
      qualification is or shall be necessary to protect the validity and
      enforceability of this Agreement and to perform its respective duties under
      this
      Agreement.

     

    Any
      Person into which the Depositor may be merged or consolidated, or any Person
      resulting from any merger or consolidation to which the Depositor shall be
      a
      party, or any person succeeding to the business of the Depositor, shall be
      the
      successor of the Depositor 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.

     

    
      
        
        

      

      
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    SECTION
      5.3   Limitation
      on Liability of the Depositor and Others.

     

    
      	(a)  	
              None
                of the Depositor or any of its directors, officers, employees or
                agents
                shall be under any liability to the Certificateholders for any action
                taken or for refraining from the taking of any action in good faith
                pursuant to this Agreement, or for errors in judgment; provided,
                however,
                that this provision shall not protect the Depositor or any such Person
                against any breach of representations or warranties made by it herein
                or
                protect the Depositor or any such Person from any liability which
                would
                otherwise be imposed by reasons of willful misfeasance, bad faith
                or gross
                negligence in the performance of duties or by reason of reckless
                disregard
                of obligations and duties hereunder. The Depositor and any director,
                officer, employee or agent of the Depositor 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 and
                any
                director, officer, employee or agent of the Depositor shall be indemnified
                by the Trust Fund and held harmless against any loss, liability or
                expense
                incurred in connection with any audit, controversy or judicial proceeding
                relating to a governmental taxing authority or any legal action relating
                to this Agreement or the Certificates, other than any loss, liability
                or
                expense incurred by reason of willful misfeasance, bad faith or gross
                negligence in the performance of duties hereunder or by reason of
                reckless
                disregard of obligations and duties hereunder. The Depositor shall
                have no
                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 the
                Depositor 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 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 Depositor shall
                be
                entitled to be reimbursed therefor out of the applicable subaccount
                of the
                Distribution Account.

            

    

     

    
      
        
        

      

      
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    ARTICLE
      VI  

    CONCERNING
      THE TRUSTEE

     

    SECTION
      6.1   Duties
      of
      Trustee.

     

    The
      Trustee shall undertake to perform such duties and only such duties as are
      specifically set forth in this Agreement. In the performance of those duties,
      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.

     

    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; 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 Certificateholders of such instrument
      in
      the event that the Trustee, after so requesting, does not receive a
      satisfactorily corrected instrument.

     

    The
      Trustee is hereby directed to execute and deliver to The Depository Trust
      Company the Issuer Letter of Representations dated as of the Closing Date on
      behalf of the trust created hereunder. The Depositor acknowledges and agrees
      that the Trustee is executing and delivering the Issuer Letter of
      Representations on behalf of the trust created hereunder and shall do so solely
      in its capacity as Trustee and not in its individual capacity.

     

    No
      provision of this Agreement shall be construed to relieve the Trustee from
      liability for its own negligent action, its own negligent failure to act or
      its
      own willful misconduct; provided, however, that:

     

    
      	(i)  	
              the
                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 finally proven that the Trustee was negligent in ascertaining
                the
                pertinent facts;

            

    

     

    
      
        
        

      

      
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      	(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 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 any trust or power conferred upon the Trustee under this
                Agreement;

            

    

     

    
      	(iv)  	
              the
                Trustee shall not be required to expend or risk its own funds or
                otherwise
                incur financial liability in the performance of any of its duties
                hereunder or the exercise of any of its rights or powers if there
                is
                reasonable ground for believing that the 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 Depositor under this
                Agreement; and

            

    

     

    
      	(v)  	
              without
                limiting the generality of this Section 6.1, 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 deposit or to any
                rerecording, refiling or redepositing of any thereof, (B) to see
                to any
                insurance, (C) to see to the payment or discharge of any tax, assessment,
                or other governmental charge or any lien or encumbrance of any kind
                owing
                with respect to, assessed or levied against, any part of the Trust
                Fund
                other than from funds available in the Distribution Account (D) to
                confirm
                or verify the contents of any reports or certificates of the Servicer
                delivered to the Trustee pursuant to this Agreement believed by the
                Trustee to be genuine and to have been signed or presented by the
                proper
                party or parties.

            

    

     

    SECTION
      6.2   Certain
      Matters Affecting the Trustee.

     

    Except
      as
      otherwise provided in Section 6.1:

     

    
      	(i)  	
              the
                Trustee may request and rely upon and shall be protected in acting
                or
                refraining from acting upon any resolution, Officers’ Certificate,
                certificate of auditors or any other certificate, statement, instrument,
                opinion, report, notice, request, consent, order, appraisal, bond
                or other
                paper or document 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
                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 Opinion of
                Counsel;

            

    

     

    
      
        
        

      

      
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      	(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)  	
              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 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 assured to the
                Trustee by the security afforded to it by the terms of this Agreement,
                the
                Trustee may require indemnity satisfactory to the Trustee against
                such
                cost, expense or liability as a condition to taking any such action.
                The
                reasonable expense of every such examination shall be paid to the
                Trustee
                out of Available Funds or, if paid by the Trustee, shall be reimbursed
                to
                the Trustee out of Available Funds.

            

    

     

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

            

    

     

    
      	(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;

            

    

     

    
      	(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 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 Trustee reasonable security or indemnity satisfactory
                to
                the Trustee against the costs, expenses and liabilities which may
                be
                incurred therein or thereby;

            

    

     

    
      
        
        

      

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

            

    

     

    
      	(x)  	
              the
                Trustee shall not be required to give any bond or surety in respect
                of the
                execution of the Trust Fund created hereby or the powers granted
                hereunder.

            

    

     

    SECTION
      6.3   Trustee
      Not Liable for Certificates or the Underlying Certificates.

     

    The
      recitals contained herein and in the Certificates shall be taken as the
      statements of the Depositor 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 Underlying
      Certificate or related document, other than with respect to the Trustee’s
      execution and counter-signature of the Certificates. 

     

    SECTION
      6.4   Trustee
      May Own Certificates.

     

    The
      Trustee in its individual or any other capacity may become the owner or pledgee
      of Certificates with the same rights as it would have if it were not the
      Trustee.

     

    SECTION
      6.5   Trustee’s
      Fees and Expenses.

     

    The
      Trustee fee for the transactions contemplated hereby shall be paid by the Seller
      in the form of a lump sum payment to the Trustee on or prior to the Closing
      Date. The Trustee and any director, officer, employee or agent of the Trustee
      shall be indemnified by the Trust Fund 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 Certificates or (c) in connection with the performance of any of the
      Trustee’s duties hereunder, other than any loss, liability or expense incurred
      by reason of willful misfeasance, bad faith or gross negligence in the
      performance of any of the Trustee’s duties hereunder or incurred by reason of
      any action of the Trustee taken at the direction of the Certificateholders
      and
      (ii) resulting from any error in any tax or information return prepared by
      the
      Depositor. Such indemnity shall survive the termination of this Agreement or
      the
      resignation or removal of the Trustee hereunder. Except as otherwise provided
      herein, the Trustee shall not be entitled to payment or reimbursement for any
      routine ongoing expenses incurred by the Trustee in the ordinary course of
      its
      duties as Trustee, Registrar, Tax Matters Person or Paying Agent hereunder
      or
      for any other expenses.

     

    SECTION
      6.6   Eligibility
      Requirements for Trustee.

     

    The
      Trustee hereunder shall at all times be a corporation or association organized
      and doing business under the laws of a state or the United States of America,
      authorized under such laws to exercise corporate trust powers, having a combined
      capital and surplus of at least $50,000,000, subject to supervision or
      examination by federal or state authority and with a credit rating which would
      not cause either of the Rating Agencies to reduce their respective then current
      ratings of the Certificates (or having provided such security from time to
      time
      as is sufficient to avoid such reduction). 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 6.6 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 6.6, the Trustee shall resign immediately in the
      manner and with the effect specified in Section 6.7 hereof. The entity serving
      as Trustee may have normal banking and trust relationships with the Depositor
      and its affiliates; provided, however, that such entity cannot be an affiliate
      of the Depositor.

     

    
      
        
        

      

      
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    SECTION
      6.7   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 and each Rating Agency
      not less than 60 days before the date specified in such notice when, subject
      to
      Section 6.8, such resignation is to take effect, and acceptance by a successor
      trustee in accordance with Section 6.8 meeting the qualifications set forth
      in
      Section 6.6. If no successor trustee meeting such qualifications shall have
      been
      so appointed and have accepted appointment within 30 days after the giving
      of
      such notice or resignation, the resigning Trustee may petition any court of
      competent jurisdiction for the appointment of a successor trustee.

     

    As
      a
      condition to the effectiveness of any such resignation, at least 15 calendar
      days prior to the effective date of such resignation, the Trustee shall provide
      (x) written notice to the Depositor of any successor pursuant to this Section
      and (y) in writing and in form and substance reasonably satisfactory to the
      Depositor, all information reasonably requested by the Depositor in order to
      comply with its reporting obligation under Item 6.02 of Form 8-K with respect
      to
      the resignation of the Trustee.

     

    If
      at any
      time (i) the Trustee shall cease to be eligible in accordance with the
      provisions of Section 6.6 hereof and shall fail to resign after written request
      thereto by the Depositor, (ii) 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, (iii)(A) a tax is imposed with
      respect to the Trust Fund by any state in which the Trustee or the Trust Fund
      is
      located, (B) the imposition of such tax would be avoided by the appointment
      of a
      different trustee and (C) the Trustee fails to indemnify the Trust Fund against
      such tax, or (iv) during the period that the Depositor is required to file
      Exchange Act Reports with respect to the Trust Fund, the Trustee fails to comply
      with its obligations under the last sentence of Section 7.1, Section 6.9 or
      Article X and such failure is not remedied within the lesser of ten (10)
      calendar days or such period in which the applicable Exchange Act Report can
      be
      filed timely (without taking into account any extensions), then, in the case
      of
      clauses (i) through (iii), then the Depositor may remove the Trustee and appoint
      a successor trustee by written instrument, in duplicate, one copy of which
      instrument shall be delivered to the Trustee and one copy of which instrument
      shall be delivered to the successor trustee.

     

    The
      Holders of Certificates entitled to at least 51% of the Voting Rights may at
      any
      time remove the Trustee and appoint a successor trustee 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 Depositor, 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.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    Any
      resignation or removal of the Trustee and appointment of a successor trustee
      pursuant to any of the provisions of this Section 6.7 shall become effective
      upon acceptance of appointment by the successor trustee as provided in Section
      6.8 hereof.

     

    SECTION
      6.8   Successor
      Trustee.

     

    Any
      successor trustee appointed as provided in Section 6.7 hereof shall execute,
      acknowledge and deliver to the Depositor and to its predecessor trustee an
      instrument accepting such appointment hereunder and thereupon the resignation
      or
      removal of the predecessor trustee shall become effective and such successor
      trustee, without any further act, deed or conveyance, shall become fully vested
      with all the rights, powers, duties and obligations of its predecessor
      hereunder, with the like effect as if originally named as trustee herein. The
      Depositor 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 6.8
      unless at the time of such acceptance such successor trustee shall be eligible
      under the provisions of Section 6.6 hereof and its appointment shall not
      adversely affect the then current rating of the Certificates.

     

    Upon
      acceptance of appointment by a successor trustee as provided in this Section
      6.8, the Depositor shall mail notice of the succession of such trustee hereunder
      to all Holders of Certificates. If the Depositor fails to mail such notice
      within 10 days after acceptance of appointment by the successor trustee, the
      successor trustee shall cause such notice to be mailed at the expense of the
      Depositor.

     

    SECTION
      6.9   Merger
      or
      Consolidation of Trustee.

     

    Any
      corporation into which the Trustee may be merged or converted or with which
      it
      may be consolidated or any corporation resulting from any merger, conversion
      or
      consolidation to which the Trustee shall be a party, or any corporation
      succeeding to the business of the Trustee, shall be the successor of the Trustee
      hereunder, provided that such corporation shall be eligible under the provisions
      of Section 6.6 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.

     

    The
      Trustee shall provide (x) written notice to the Depositor of any successor
      due
      to merger or consolidation of the trustee pursuant to this Section within five
      (5) days of the effectiveness of such merger or consolidation and (y) in writing
      and in form and substance reasonably satisfactory to the Depositor, all
      information reasonably requested by the Depositor in order to comply with its
      reporting obligation under Item 6.02 of Form 8-K with respect to a replacement
      Trustee.

     

    
      
        
        

      

      
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    SECTION
      6.10   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
      may at the time be located, the Depositor 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 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 6.10, such powers, duties, obligations, rights and trusts as the
      Depositor and the Trustee may consider necessary or desirable. If the Depositor
      shall not have joined in such appointment within 15 days after the receipt
      by it
      of a request to do so, 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 6.6 and
      no
      notice to Certificateholders of the appointment of any co-trustee or separate
      trustee shall be required under Section 6.8.

     

    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 6.10,
                all
                rights, powers, duties and obligations conferred or imposed upon
                the
                Trustee shall be conferred or imposed upon and exercised or performed
                by
                the Trustee and such separate trustee or co-trustee jointly (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, 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;

            

    

     

    
      	(iii)  	
              The
                Trustee may at any time accept the resignation of or remove any separate
                trustee or co-trustee; and

            

    

     

    
      	(iv)  	
              The
                Trust Fund, and not the Trustee, shall be liable for the payment
                of
                reasonable compensation, reimbursement and indemnification to any
                such
                separate trustee or co-trustee.

            

    

     

    
      
        
        

      

      
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    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
      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.

     

    SECTION
      6.11   Tax
      Matters.

     

    It
      is
      intended that the assets with respect to which a 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 Trustee covenants
      and agrees that it shall act as agent (and the Trustee is hereby appointed
      to
      act as agent) on behalf of any such REMIC and that in such capacity it shall:
      (a) prepare and file, or cause to be prepared and filed, in a timely manner,
      a
      U.S. Real Estate Mortgage Investment Conduit 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 any 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; (b) within thirty days of the Closing
      Date, furnish or cause to be furnished to the Internal Revenue Service, on
      Forms
      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) prepare and
      forward, or cause to be prepared and forwarded, to the Certificateholders and
      to
      the Internal Revenue Service and, if necessary, state tax authorities, all
      information returns and reports as and when required to be provided to them
      in
      accordance with the REMIC Provisions, including without limitation, the
      calculation of any original issue discount using the prepayment assumption;
      (e)
      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, or
      an
      agent (including a broker, nominee or other middleman) of a Non-Permitted
      Transferee, or a pass-through entity in which a Non-Permitted Transferee is
      the
      record holder of an interest (the reasonable cost of computing and furnishing
      such information may be charged to the Person liable for such tax); (f) 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; (g) not knowingly or intentionally take
      any action or omit to take any action that would cause the termination of any
      REMIC status; (h) pay, from the sources specified in the last paragraph of
      this
      Section 6.11, the amount of any federal or state tax, including prohibited
      transaction taxes as described below, imposed on any such REMIC prior to its
      termination when and as the same shall be due and payable (but such obligation
      shall not prevent the Trustee or any other appropriate Person from contesting
      any such tax in appropriate proceedings and shall not prevent the Trustee from
      withholding payment of such tax, if permitted by law, pending the outcome of
      such proceedings); (i) 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; (j) maintain records relating to any such REMIC, including but not
      limited to the income, expenses, assets and liabilities thereof and the fair
      market value and 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; and (k) as and when necessary
      and
      appropriate, represent any such 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 any
      such REMIC, enter into settlement agreements with any governmental taxing
      agency, extend any statute of limitations relating to any tax item of any such
      REMIC, and otherwise act on behalf of any such REMIC in relation to any tax
      matter or controversy involving it.

     

    
      
        
        

      

      
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    In
      order
      to enable the Trustee to perform its duties as set forth herein, the Depositor
      shall provide, or cause to be provided, to the Trustee within ten (10) days
      after the Closing Date all information or data that the Trustee 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 Trustee
      promptly upon written request therefor, any such additional information or
      data
      that the Trustee may, from time to time, reasonably request in order to enable
      the Trustee to perform its duties as set forth herein. The Depositor hereby
      indemnifies the Trustee for any losses, liabilities, damages, claims or expenses
      of the Trustee arising from any errors or miscalculations of the Trustee that
      result from any failure of the Depositor to provide, or to cause to be provided,
      accurate information or data to the Trustee on a timely basis.

     

    In
      the
      event that any tax is imposed on “prohibited transactions” of the REMIC
      established hereunder as defined in Section 860F(a)(2) of the Code, on the
“net
      income from foreclosure property” of the REMIC established hereunder as defined
      in Section 860G(c) of the Code, on any contribution to the REMIC established
      hereunder 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 Trustee, if any such other tax arises out of or results
      from a breach by the Trustee of any of its obligations under this Agreement
      which breach was caused by its gross negligence or willful misconduct, (ii)
      the
      Depositor, in the case of any such minimum tax, or if such tax arises out of
      or
      results from a breach by the Depositor of any of its obligations under this
      Agreement, or (iii) in all other cases, or in the event that the Trustee or
      the
      Depositor fails to honor its obligations under the preceding clauses (i) and
      (ii), any such tax will be paid by the Trustee from amounts it is authorized
      to
      withhold from the Distribution Account pursuant to Section 3.1(c). 

     

    
      
        
        

      

      
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    ARTICLE
      VII

    TERMINATION

     

    SECTION
      7.1 Termination upon Optional Termination of the Underlying
      Certificates.

     

    Subject
      to Section 7.3, the obligations and responsibilities of the Depositor and the
      Trustee created hereby with respect to the Trust Fund shall terminate upon
      the
      earlier of (a) the Distribution Date on which the Underlying Certificates are
      terminated pursuant to Section 9.1 of the Underlying PSA, and (b) the
      distribution to Certificateholders of all amounts required to be distributed
      to
      them pursuant to this Agreement. In no event shall the trusts created hereby
      continue beyond the earlier of (i) the expiration of 21 years from the death
      of
      the survivor of the descendants of Joseph P. Kennedy, the late Ambassador of
      the
      United States to the Court of St. James’s, living on the date hereof, and (ii)
      the Latest Possible Maturity Date.

     

    SECTION
      7.2 Final Distribution on the Certificates.

     

    If
      on any
      Determination Date, the Depositor determines that the class certificate balance
      of the Underlying Certificates will be reduced to zero on the related
      Distribution Date and there are no other funds or assets in the Trust Fund
      other
      than the funds on deposit in, or to be deposited into, the Distribution Account
      on the related Distribution Date, the Depositor shall direct the Trustee
      promptly to send a final distribution notice to each Certificateholder.

     

    Notice
      of
      any termination of the Trust Fund, specifying the Distribution Date on which
      Certificateholders may surrender their Certificates for payment of the final
      distribution and cancellation, shall be given promptly by the Trustee by letter
      to Certificateholders. Any such notice shall specify (a) the Distribution Date
      upon which final distribution on the Certificates will be made upon presentation
      and surrender of Certificates at the office therein designated, (b) the amount
      of such final distribution, (c) the location of the office or agency at which
      such presentation and surrender must be made, and (d) that the Record Date
      otherwise applicable to such Distribution Date is not applicable, distributions
      being made only upon presentation and surrender of the Certificates at the
      office therein specified. The Depositor will give such notice to each Rating
      Agency at the time such notice is given to Certificateholders.

     

    Upon
      presentation and surrender of the Certificates, the Trustee shall cause to
      be
      distributed to the Certificateholders of each Class, in the order set forth
      in
      Section 3.2 hereof, on the final Distribution Date, in the case of the
      Certificateholders, in proportion to their respective Percentage Interests,
      with
      respect to Certificateholders of the same Class, an amount equal to (i) as
      to
      each Class of Regular Certificates, the Class Certificate Balance thereof plus
      accrued interest thereon in the case of an interest bearing Certificate, and
      (ii) as to the Residual Certificates, the amount, if any, which remains on
      deposit in the Distribution Account (other than the amounts retained to meet
      claims) after application pursuant to clause (i) above. 

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    In
      the
      event that any affected Certificateholders shall not surrender Certificates
      for
      cancellation within six months after the date specified in the above mentioned
      written notice, the Trustee shall give a second written notice to the remaining
      Certificateholders to surrender their Certificates for cancellation and receive
      the final distribution with respect thereto. If within six months after the
      second notice all the applicable Certificates shall not have been surrendered
      for cancellation, the Trustee may take appropriate steps, or may appoint an
      agent to take appropriate steps, to contact the remaining Certificateholders
      concerning surrender of their Certificates, and the cost thereof shall be paid
      out of the funds and other assets which remain a part of the Trust Fund. If
      within one year after the second notice all Certificates shall not have been
      surrendered for cancellation, the Holders of the Class A-R Certificates shall
      be
      entitled to all unclaimed funds and other assets of the Trust Fund, held for
      distribution to such Certificateholders, which remain subject
      hereto.

     

    SECTION
      7.3 Additional Termination Requirements.

     

    
      	 	
              (a)

            	
              In
                the event that the Underlying Certificates are terminated as provided
                in
                Section 7.1, the Trust Fund and the REMIC created hereunder shall
                be
                terminated in accordance with the following additional requirement,
                unless
                the Trustee has been supplied with an Opinion of Counsel, at the
                expense
                of the Depositor, to the effect that the failure to comply with the
                requirements of this Section 7.3 will not (i) result in the imposition
                of
                taxes on “prohibited transactions” on the REMIC created hereunder as
                defined in Section 860F of the Code, or (ii) cause the REMIC created
                hereunder to fail to qualify as a REMIC at any time that any Certificates
                are outstanding:

            

    

     

    
      	 	
              1.

            	
              Within
                90 days prior to the final Distribution Date set forth in the notice
                given
                by the Trustee under Section 7.2, the Depositor shall prepare, or
                shall
                cause to be prepared, and the Trustee, at the expense of the “tax matters
                person,” shall adopt a plan of complete liquidation within the meaning of
                Section 860F(a)(4) of the Code for the REMIC created hereunder which,
                as
                evidenced by an Opinion of Counsel addressed to the Trustee (which
                opinion
                shall not be an expense of the Trustee or the Tax Matters Person),
                meets
                the requirements of a qualified
                liquidation.

            

    

     

    
      	 	
              (b)

            	
              The
                Trustee as agent for the REMIC established hereunder hereby agrees
                to
                adopt and sign such a plan of complete liquidation upon the written
                request of the Depositor, and the receipt of the Opinion of Counsel
                referred to in Section 7.3(a)(1) and to take such other action in
                connection therewith as may be reasonably requested by the
                Depositor.

            

    

     

    
      	 	
              (c)

            	
              By
                their acceptance of the Certificates, the Holders thereof hereby
                authorize
                the Depositor to prepare and the Trustee to adopt and sign plans
                of
                complete liquidation.

            

    

     

     

    
      
        
        

      

      
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    ARTICLE
      VIII

    EXCHANGE
      ACT REPORTING

     

    SECTION
      8.1 Filing Obligations.

     

    The
      Trustee shall reasonably cooperate with the Depositor in connection with the
      satisfaction of the Depositor’s reporting requirements under the Exchange Act
      with respect to the Trust Fund. In addition to the information specified below,
      if so requested by the Depositor for the purpose of satisfying its reporting
      obligation under the Exchange Act, the Trustee shall provide the Depositor
      with
      (a) such information which is available to such Person without unreasonable
      effort or expense and within such timeframe as may be reasonably requested
      by
      the Depositor to comply with the Depositor’s reporting obligations under the
      Exchange Act and (b) to the extent such Person is a party (and the Depositor
      is
      not a party) to any agreement or amendment requested of it by the Depositor
      and
      required to be filed, copies of such agreement or amendment in EDGAR-compatible
      form.

     

    SECTION
      8.2 Form 10-D Filings.

     

    (a) Although
      the Depositor is responsible under Regulation AB for filing the Form 10-D,
      the
      Trustee hereby agrees it shall prepare for filing and file within fifteen days
      after each Distribution Date (subject to permitted extensions under the Exchange
      Act) with the SEC with respect to the Trust Fund, a Form 10-D with copies of
      the
      Monthly Statements and, to the extent delivered to the Trustee, no later than
      ten days following the Distribution Date, such other information identified
      by
      the Depositor, in writing, to be filed with the SEC (such other information,
      the
“Additional Designated Information”). If the Depositor directs that any
      Additional Designated Information is to be filed with any Form 10-D, the
      Depositor shall specify the Item on Form 10-D to which such information is
      responsive and, with respect to any Exhibit to be filed on Form 10-D, the
      Exhibit number. Any information to be filed on Form 10-D shall be delivered
      to
      the Trustee in EDGAR-compatible form or as otherwise agreed upon by the Trustee
      and the Depositor, at the Depositor’s expense, and any necessary conversion to
      EDGAR-compatible format will be at the Depositor’s expense. At the reasonable
      request of, and in accordance with the reasonable directions of, the Depositor,
      subject to the two preceding sentences, the Trustee shall prepare for filing
      and
      file an amendment to any Form 10-D previously filed with the SEC with respect
      to
      the Trust Fund. The Depositor shall sign the Form 10-D filed on behalf of the
      Trust Fund.

     

    (b) No
      later
      than each Distribution Date, the Trustee shall notify the Depositor of any
      Form
      10-D Disclosure Item relating to it, together with a description of any such
      Form 10-D Disclosure Item in form and substance reasonably acceptable to the
      Depositor. In addition to such information as the Trustee is obligated to
      provide pursuant to other provisions of this Agreement, if so requested by
      the
      Depositor, the Trustee shall provide such information which is available to
      the
      Trustee without unreasonable effort or expense regarding the performance or
      servicing of the Underlying Mortgage Loans (in the case of the Trustee, based
      on
      the information provided by the Master Servicer pursuant to the Underlying
      PSA)
      as is reasonably required of the Depositor to facilitate preparation of
      distribution reports in accordance with Item 1121 of Regulation AB. Such
      information shall be provided concurrently with the delivering of the Monthly
      Statements specified in Section 3.4, commencing with the first such Monthly
      Statements due not less than five (5) Business Days following such
      request.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    (c) The
      Trustee shall not have any responsibility to file any items (other than those
      generated by it) that have not been received in a format suitable (or readily
      convertible into a format suitable) for electronic filing via the EDGAR system
      and shall not have any responsibility to convert any such items to such format
      (other than those items generated by it or that are readily convertible to
      such
      format). The Trustee shall have no liability to the Certificateholders, the
      Trust Fund or the Depositor with respect to any failure to properly prepare
      or
      file any of Form 10-D to the extent that such failure is not the result of
      any
      gross negligence, bad faith or willful misconduct on its part. For avoidance
      of
      doubt, the Trustee shall have no liability whatsoever under the Securities
      Act
      or the Exchange Act

     

    SECTION
      8.3 Form 8-K Filings.

     

    The
      Depositor shall prepare and file on behalf of the Trust Fund any Form 8-K
      required by the Exchange Act. Each Form 8-K must be signed by the Depositor.
      The
      Trustee shall promptly notify the Depositor, but in no event later than one
      (1)
      Business Day after its occurrence, of any Reportable Event related to it, of
      which it has actual knowledge.

     

    SECTION
      8.4 Form 10-K Filings.

     

    Prior
      to
      March 30th of each year, commencing in 2007 (or such earlier date as may be
      required by the Exchange Act), the Depositor shall prepare and file on behalf
      of
      the Trust Fund a Form 10-K, in form and substance as required by the Exchange
      Act. The senior officer in charge of securitization of the Depositor shall
      sign
      each Form 10-K filed on behalf of the Trust Fund. Such Form 10-K shall include
      as exhibits each (i) annual compliance statement described under Section 3.16
      of
      the Underlying PSA, (ii) annual report on assessments of compliance with
      servicing criteria described under Section 8.7 and (iii) accountant’s report
      described under Section 8.7. Each Form 10-K shall also include any
      Sarbanes-Oxley Certification required to be included therewith, as described
      in
      Section 8.5.

     

    If
      the
      Item 1119 Parties listed on Exhibit J have changed since the Closing Date,
      no
      later than March 1 of each year, the Depositor shall provide the Trustee with
      an
      updated Exhibit J setting forth the Item 1119 Parties. No later than March
      15 of
      each year, commencing in 2007, the Trustee shall notify the Depositor of any
      Form 10-K Disclosure Item related to it, together with a description of any
      such
      Form 10-K Disclosure Item in form and substance reasonably acceptable to the
      Depositor. Additionally, the Trustee shall provide to the Depositor the
      following information no later than March 15 of each year in which a Form 10-K
      is required to be filed on behalf of the Trust Fund: (i) if the Trustee’s report
      on assessment of compliance with servicing criteria described under Section
      8.7
      or related registered public accounting firm attestation report described under
      Section 8.7 identifies any material instance of noncompliance, notification
      of
      such instance of noncompliance and (ii) if the Trustee’s report on assessment of
      compliance with servicing criteria or related registered public accounting
      firm
      attestation report is not provided to be filed as an exhibit to such Form 10-K,
      information detailing the explanation why such report is not
      included.

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

    SECTION
      8.5 Sarbanes-Oxley Certification.

     

    Each
      Form
      10-K shall include a certification (the “Sarbanes-Oxley Certification”) required
      by Rules 13a-14(d) and 15d-14(d) under the Exchange Act (pursuant to Section
      302
      of the Sarbanes-Oxley Act of 2002 and the rules and regulations of the SEC
      promulgated thereunder (including any interpretations thereof by the SEC’s
      staff)). No later than March 15 of each year, beginning in 2007, the Trustee
      shall provide to the Person who signs the Sarbanes-Oxley Certification (the
      “Certifying Person”) a certification (each, a “Performance Certification”),
      substantially in the form attached hereto as Exhibit I, unless such other form
      is mutually agreed upon, on 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 in charge of securitization of
      the Depositor shall serve as the Certifying Person on behalf of the Trust Fund.
      The Depositor will not request delivery of a certification under this clause
      unless the Depositor is required under the Exchange Act to file an annual report
      on Form 10-K with respect to the Trust Fund. In the event that prior to the
      filing date of the Form 10-K in March of each year, the Trustee has actual
      knowledge of information material to the Sarbanes-Oxley Certification, the
      Trustee shall promptly notify the Depositor. The respective parties hereto
      agree
      to cooperate with all reasonable requests made by any Certifying Person or
      Certification Party in connection with such Person’s attempt to conduct any due
      diligence that such Person reasonably believes to be appropriate in order to
      allow it to deliver any Sarbanes-Oxley Certification or portion thereof with
      respect to the Trust Fund.

     

    SECTION
      8.6 Form 15 Filing.

     

    Prior
      to
      January 31 of the first year in which the Depositor is able to do so under
      applicable law, the Depositor shall file a Form 15 relating to the automatic
      suspension of reporting in respect of the Trust Fund under the Exchange
      Act.

     

    SECTION
      8.7 Report on Assessment of Compliance and Attestation.

     

    On
      or
      before March 15 of each calendar year, commencing in 2007:

     

    (i) The
      Trustee shall deliver to the Depositor a report (in form and substance
      reasonably satisfactory to the Depositor) regarding the Trustee’s assessment of
      compliance with the Servicing Criteria during the immediately preceding calendar
      year, as required under Rules 13a-18 and 15d-18 of the Exchange Act and Item
      1122 of Regulation AB. Such report shall be signed by an authorized officer
      of
      the Trustee and shall address each of the applicable Servicing Criteria
      specified on a certification substantially in the form of Exhibit I hereto,
      unless such other form is mutually agreed upon delivered to the Depositor
      concurrently with the execution of this Agreement. To the extent any of the
      Servicing Criteria are not applicable to the Trustee, with respect to
      asset-backed securities transactions taken as a whole involving the Trustee
      and
      that are backed by the same asset type backing the Certificates, such report
      shall include such a statement to that effect. The Depositor and each of its
      officers and directors shall be entitled to rely upon each such servicing
      criteria assessment.

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

     

    (ii) The
      Trustee shall deliver to the Depositor a report of a registered public
      accounting firm reasonably acceptable to the Depositor that attests to, and
      reports on, the assessment of compliance made by the Trustee and delivered
      pursuant to the preceding paragraphs. Such attestation shall be in accordance
      with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act
      and
      the Exchange Act, including, without limitation that 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. To the extent any of the Servicing Criteria are not applicable to
      the
      Trustee, with respect to asset-backed securities transactions taken as a whole
      involving the Trustee and that are backed by the same asset type backing the
      Certificates, such report shall include such a statement that that
      effect.

     

    SECTION
      8.8 Amendments.

     

    In
      the
      event the parties to this Agreement desire to further clarify or amend any
      provision of this Article VIII, this Agreement shall be amended to reflect
      the
      new agreement between the parties covering matters in this Article VIII pursuant
      to Section 9.1, which amendment shall not require any Opinion of Counsel or
      Rating Agency confirmations or the consent of any
      Certificateholder.

     

    ARTICLE
      IX

    MISCELLANEOUS
      PROVISIONS

     

    SECTION
      9.1 Amendment.

     

    This
      Agreement may be amended from time to time by the Depositor and the Trustee
      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,
      (iii) to add to the duties of the Depositor, (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 clauses (iv) or (v) above shall
      not, as evidenced by an Opinion of Counsel delivered to the Trustee (which
      Opinion of Counsel shall not be an expense of the Trustee or 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 Trustee and the
      Depositor also may at any time and from time to time amend this Agreement
      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 the REMIC established hereunder as a REMIC under
      the Code, (ii) avoid or minimize the risk of the imposition of any tax on the
      REMIC established hereunder 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 Trustee has been provided
      an
      Opinion of Counsel, which opinion shall be an expense of the party requesting
      such opinion but in any case shall not be an expense of the Trustee 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.

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

     

    This
      Agreement may also be amended from time to time by the Depositor and the Trustee
      with the consent of 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 (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. In addition,
      the permitted activities of the Trust under this Agreement cannot be
      significantly modified without the approval of Holders of Certificates
      evidencing a Majority in Interest.

     

    Notwithstanding
      any contrary provision of this Agreement, the Trustee shall not consent to
      any
      amendment to this Agreement unless it shall have first received an Opinion
      of
      Counsel, which opinion shall not be an expense of the Trustee or the Trust
      Fund,
      to the effect that such amendment will not cause the imposition of any tax
      on
      the REMIC established hereunder or the Certificateholders or cause the REMIC
      established hereunder 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 Trustee shall furnish written notification of the
      substance or a copy of such amendment to each Certificateholder 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 Trustee may prescribe.

     

    Nothing
      in this Agreement shall require the Trustee to enter into an amendment without
      receiving an Opinion of Counsel (which Opinion shall not be an expense of the
      Trustee or the Trust Fund), satisfactory to the Trustee 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 (B) the conclusion set forth in the immediately preceding
      clause (A) is not required to be reached pursuant to this Section
      11.1.

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

    SECTION
      9.2 Recordation of Agreement; Counterparts.

     

    This
      Agreement is subject to recordation in all appropriate public recording offices
      or elsewhere, such recordation to be effected by the Depositor at its expense,
      but only upon direction a majority of the Certificateholders 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 (by facsimile or otherwise)
      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
      9.3 Governing Law.

     

    THIS
      AGREEMENT (OTHER THAN SECTION 2.1 HEREOF) 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
      2.1
      OF THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
      SUBSTANTIVE LAWS OF THE STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND
      TO
      BE PERFORMED IN THE STATE OF DELAWARE AND THE OBLIGATIONS, RIGHTS AND REMEDIES
      OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS UNDER SUCH SECTION SHALL BE
      DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     

    SECTION
      9.4 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, absolute sales thereof
      to
      the Trustee. It is, further, not the intention of the parties that such
      conveyances 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,
      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, 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 financing and continuation statements in connection with any
      security interest granted or assigned to the Trustee for the benefit of the
      Certificateholders.

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

     

    SECTION
      9.5 Notices.

     

    
      	 	
              (a)

            	
              The
                Trustee 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:

            

    

     

    
      	 	
              (A)

            	
              Any
                material change or amendment to this
                Agreement;

            

    

     

    
      	 	
              (B)

            	
              The
                resignation or termination of the Trustee and the appointment of
                any
                successor; and

            

    

     

    
      	 	
              (C)

            	
              The
                final payment to
                Certificateholders.

            

    

     

    In
      addition, the Trustee shall promptly furnish to each Rating Agency upon request
      copies of each Monthly Statement.

     

    
      	 	
              (b)

            	
              All
                directions, demands, authorizations, consents, waivers, communications
                and
                notices hereunder shall be in writing and shall be deemed to have
                been
                duly given when delivered to by first class mail, facsimile or courier
                (a)
                in the case of the Depositor, First Horizon Asset Securities Inc.,
                4000
                Horizon Way, Irving, Texas 75063, Attention: Alfred Chang; (b) in
                the case
                of the Trustee, The Bank of New York, 101 Barclay Street, 8E, New
                York,
                New York 10286, Attention: Corporate Trust, Resecuritization Unit
                - First
                Horizon 2006-RE1, or such other address as the Trustee may hereafter
                furnish to the Depositor, and (c) in the case of the Rating Agencies,
                the
                address specified therefor in the definition corresponding to the
                name of
                such Rating Agency. Notices to Certificateholders shall be deemed
                given
                when mailed, first class postage prepaid, to their respective addresses
                appearing in the Certificate
                Register.

            

    

     

    SECTION
      9.6 Severability of Provisions.

     

    If
      any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall be for any reason whatsoever held invalid, then such covenants,
      agreements, provisions or terms shall be deemed severable from the remaining
      covenants, agreements, provisions or terms of this Agreement and shall in no
      way
      affect the validity or enforceability of the other provisions of this Agreement
      or of the Certificates or the rights of the Holders thereof.

     

    SECTION
      9.7 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.

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

     

    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 a written notice of the
      occurrence of a default under this Agreement 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 to institute such action, suit or proceeding
      in
      its own name as Trustee hereunder and shall have offered to the Trustee such
      reasonable indemnity as it may require against the costs, expenses, and
      liabilities to be incurred therein or thereby, and the Trustee, for 60 days
      after its receipt of such notice, request and offer of indemnity shall have
      neglected or refused to institute any such action, suit or proceeding; it being
      understood and intended, and being expressly covenanted by each
      Certificateholder with every other Certificateholder and the Trustee, that
      no
      one or more Holders of Certificates shall have any right in any manner whatever
      by virtue or by availing 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 9.8, each
      and every Certificateholder and the Trustee shall be entitled to such relief
      as
      can be given either at law or in equity.

     

    SECTION
      9.8 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
      9.9 Limitations on Actions; No Proceedings.

     

    
      	 	
              (a)

            	
              Other
                than pursuant to this Agreement, or in connection with or incidental
                to
                the provisions or purposes of this Agreement, the trust created hereunder
                shall not (i) issue debt or otherwise borrow money, (ii) merge or
                consolidate with any other entity reorganize, liquidate or transfer
                all or
                substantially all of its assets to any other entity, or (iii) otherwise
                engage in any activity or exercise any power not provided for in
                this
                Agreement.

            

    

     

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              Notwithstanding
                any prior termination of this Agreement, the Trustee and the Depositor
                shall not, prior to the date which is one year and one day after
                the
                termination of this Agreement, acquiesce, petition or otherwise invoke
                or
                cause any Person to invoke the process of any court or government
                authority for the purpose of commencing or sustaining a case against
                the
                Depositor or the Trust Fund under any federal or state bankruptcy,
                insolvency or other similar law or appointing a receiver, liquidator,
                assignee, trustee, custodian, sequestrator or other similar official
                of
                the Depositor or the Trust Fund or any substantial part of their
                respective property, or ordering the winding up or liquidation of
                the
                affairs of the Depositor or the Trust
                Fund.

            

    

     

    *
      * * * *
      *

    
      
        
        

      

      
        50

        
          

        

      

       

    

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

     

    
      	 	 	 
	 	
              FIRST
                HORIZON ASSET SECURITIES INC.,

              as
                Depositor

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Alfred
              Chang
	 	Vice
              President 

    

     

    
      	 	 	 
	 	
              CITIGROUP
                GLOBAL
                MARKETS INC.,

              
                as
                  Seller

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ 
	 	
              

            
	 	Title 

    

     

    
      	 	 	 
	 	
            
	 
 	 
 	 
 
	 	By:  	 
	 	
               

              Name: 

            	
              

            
	 	
               

              Title: 

            	
              

            
	 	
            	
              

            

    

    

    
      	 	 	 
	 	
              THE
                BANK OF NEW YORK,

              not
                in its individual capacity, but solely as Trustee

            
	 
 	 
 	 
 
	 	By:  	 
	 	
               

              Name: 

            	
              

            
	 	
               

              Title:

            	
              
  
	 	 	
              
  

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    [FORM
      OF
      CLASS A-1 CERTIFICATE

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE 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.

     

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

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    
      	
              Certificate
                No.

            	: 
	
              Closing
                Date

            	: 
	
              First
                Distribution Date

            	: 
	
              Initial
                Certificate Balance of this Certificate (“Denominations”)

            	
               

              : 
                $

            
	
              Initial
                Certificate 

              Balances
                of all 

              Certificate
                of this 

              Class

            	
              : 
                $

            
	
              CUSIP

            	: 

    

     

    First
      Horizon Alternative Mortgage Securities Trust 2006-RE1

    Mortgage
      Pass-Through Certificates, Series 2006-RE1

    Class
      A-1

     

    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
      classes of mortgage pass-through certificates (each, an “Underlying
      Certificate”) evidencing an undivided beneficial ownership interest in a pool of
      conventional mortgage loans (the “Underlying Mortgage Loans”) secured by first
      liens on one- to four-family residential properties.

     

    First
      Horizon Asset Securities Inc., as Depositor

     

    This
      certifies that __________________ is the registered owner of the Percentage
      Interest evidenced by this Certificate (obtained by dividing the denomination
      of
      this Certificate by the aggregate Initial Certificate Balances of all
      Certificates of the Class to which this Certificate belongs) in certain monthly
      distributions with respect to a Trust Fund consisting primarily of the
      Underlying Certificates deposited by First Horizon Asset Securities Inc. (the
      “Depositor”). The Trust Fund was created pursuant to a Pooling Agreement dated
      as of the Closing Date specified above (the “Agreement”) by and between the
      Depositor and The Bank of New York, as trustee (the “Trustee”). 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.

     

    Principal
      in respect of this Certificate is distributable monthly as set forth herein.
      Accordingly, the Certificate Balance at any time may be less than the
      Certificate Balance as set forth herein. This Certificate does not evidence
      an
      obligation of, or an interest in, and is not guaranteed by the Depositor or
      the
      Trustee referred to below or any of their respective affiliates. None of this
      Certificate, the Underlying Certificates or the Underlying Mortgage Loans are
      guaranteed or insured by any governmental agency or
      instrumentality.

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

    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
      Trustee.

     

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

     

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

     

     

     

    
      	Dated:
              May __,
              2006	 	 
	 	
              THE
                BANK OF NEW YORK,

              not
                in
                its individual capacity, but solely as Trustee

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Authorized
              Signatory of 
	 	THE
              BANK
              OF NEW YORK
	 	not in its individual capacity,
	 	but solely as Trustee

    

     

    
      
        	Countersigned:	 
	 	 	 
	By 	 	 
	 	
                
Authorized
                Signatory of 	 
	 	THE BANK OF NEW YORK, 	 
	 	not in its individual
                capacity,  	 
	 	but
                solely as Trustee	 

      

    

    
    

     

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

    [FORM
      OF
      RESIDUAL CERTIFICATE]

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS ONE OR MORE
      “RESIDUAL INTERESTS” 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”).

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
      TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN ACCORDANCE WITH
      THE
      PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

     

    [THIS
      CERTIFICATE REPRESENTS THE “TAX MATTERS PERSON RESIDUAL INTEREST” ISSUED UNDER
      THE POOLING AGREEMENT REFERRED TO BELOW AND MAY NOT BE TRANSFERRED TO ANY PERSON
      EXCEPT IN CONNECTION WITH THE ASSUMPTION BY THE TRANSFEREE OF THE DUTIES OF
      THE
      SERVICER UNDER SUCH AGREEMENT.]

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
      TRANSFEREE REPRESENTS TO THE TRUSTEE 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 A PLAN OR ARRANGEMENT SUBJECT TO SECTION
      4975 OF THE CODE, OR, IF SUCH PURCHASER IS AN INSURANCE COMPANY, A
      REPRESENTATION IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED
      TO
      HEREIN, OR DELIVERS TO THE TRUSTEE AN OPINION OF COUNSEL IN ACCORDANCE WITH
      THE
      PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. SUCH REPRESENTATION SHALL BE
      DEEMED TO HAVE BEEN MADE TO THE TRUSTEE BY THE TRANSFEREE’S ACCEPTANCE OF A
      CERTIFICATE OF THIS CLASS AND BY A BENEFICIAL OWNER’S ACCEPTANCE OF ITS INTEREST
      IN A CERTIFICATE OF THIS CLASS. NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY
      HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF AN
      EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OPINION OF
      COUNSEL SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF
      NO
      EFFECT.

     

    
      
        
        

      

      
        B-1

        
          

        

      

       

    

    

     

    
      	
              Certificate
                No.

            	: 
	
              Closing
                Date

            	: 
	
              First
                Distribution Date

            	: 
	
              Percentage
                Interest

            	: 

    

     

    First
      Horizon Alternative Mortgage Securities Trust 2006-RE1

    Mortgage
      Pass-Through Certificates, Series 2006-RE1

     

    evidencing
      a percentage interest in the distributions allocable to the Class A-R
      Certificates with respect to a Trust Fund consisting primarily of two classes
      of
      mortgage pass-through certificates (each, an “Underlying Certificate”)
      evidencing an undivided beneficial ownership interest in a pool of conventional
      mortgage loans (the “Underlying Mortgage Loans”) secured by first liens on one-
      to four-family residential properties.

     

    First
      Horizon Asset Securities Inc., as Depositor

     

    This
      certifies that _________________ is the registered owner of the Percentage
      Interest set forth above in certain residual distributions with respect to
      a
      Trust Fund consisting of the Underlying Certificates deposited by First Horizon
      Asset Securities Inc. (the “Depositor”). The Trust Fund was created pursuant to
      a Pooling Agreement dated as of the Closing Date specified above (the
“Agreement”) between the Depositor and The Bank of New York, as trustee (the
“Trustee”). 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.

     

    This
      Certificate has no Class Certificate Balance and it will not accrue any
      interest. This Certificate does not evidence an obligation of, or an interest
      in, and is not guaranteed by the Depositor or the Trustee referred to below
      or
      any of their respective affiliates. None of this Certificate, the Underlying
      Certificates or the Underlying Mortgage Loans are guaranteed or insured by
      any
      governmental agency or instrumentality.

     

    Any
      distribution of the proceeds of any remaining assets of the Trust Fund will
      be
      made only upon presentment and surrender of this Class A-R Certificate at the
      Corporate Trust Office or the office or agency maintained by the Trustee in
      New
      York, New York. This Class A-R Certificate represents an ownership in the REMIC,
      as defined in the Agreement

     

    No
      transfer of a Class A-R Certificate shall be made unless the Trustee shall
      have
      received either (i) a representation [letter] from the transferee of such
      Certificate, acceptable to and in form and substance satisfactory to the
      Trustee, 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, nor
      a
      person acting on behalf of any such plan, which representation letter shall
      not
      be an expense of the Trustee or the Depositor, (ii) if the purchaser is an
      insurance company, a representation that 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 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 Certificate presented for registration in
      the
      name of an employee benefit plan subject to ERISA or Section 4975 of the Code
      (or comparable provisions of any subsequent enactments), or a trustee of any
      such plan or any other person acting on behalf of any such plan, an Opinion
      of
      Counsel satisfactory to the Trustee to the effect that the purchase or holding
      of such Class A-R Certificate will not result in prohibited transactions under
      Section 406 of ERISA and Section 4975 of the Code and will not subject the
      Trustee or the Depositor to any obligation in addition to those undertaken
      in
      the Agreement, which Opinion of Counsel shall not be an expense of the Trustee
      or the Depositor. [Such representation shall be deemed to have been made to
      the
      Trustee by the Transferee’s acceptance of this Class A-R Certificate and by a
      beneficial owner’s acceptance of its interest in such Certificate.]
      Notwithstanding anything else to the contrary herein, any purported transfer
      of
      a Class A-R Certificate to or on behalf of an employee benefit plan subject
      to
      ERISA or to the Code without the opinion of counsel satisfactory to the Trustee
      as described above shall be void and of no effect.

     

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

     

    Each
      Holder of this Class A-R Certificate will be deemed to have agreed to be bound
      by the restrictions of the Agreement, including but not limited to the
      restrictions that (i) each person holding or acquiring any Ownership Interest
      in
      this Class A-R Certificate must be a Permitted Transferee, (ii) no Ownership
      Interest in this Class A-R Certificate may be transferred without delivery
      to
      the Trustee of (a) a transfer affidavit of the proposed transferee and (b)
      a
      transfer certificate of the transferor, each of such documents to be in the
      form
      described in the Agreement, (iii) each person holding or acquiring any Ownership
      Interest in this Class A-R Certificate must agree to require a transfer
      affidavit and to deliver a transfer certificate to the Trustee as required
      pursuant to the Agreement, (iv) each person holding or acquiring an Ownership
      Interest in this Class A-R Certificate must agree not to transfer an Ownership
      Interest in this Class A-R Certificate if it has actual knowledge that the
      proposed transferee is not a Permitted Transferee and (v) any attempted or
      purported transfer of any Ownership Interest in this Class A-R Certificate
      in
      violation of such restrictions will be absolutely null and void and will vest
      no
      rights in the purported transferee.

     

    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
      Trustee.

     

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

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

     

    
      	Dated:
              May __,
              2006	 	 
	 	THE
              BANK
              OF NEW YORK,
	 	not in its individual capacity, but
              solely as
              Trustee
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Authorized
              Signatory of 
	 	THE
              BANK
              OF NEW YORK
	 	not in its individual capacity,
	 	but solely as Trustee

    

    

    
       

      
        
          	Countersigned:	 
	 	 	 
	By 	 	 
	 	
                  
Authorized
                  Signatory of 	 
	 	THE BANK OF NEW YORK, 	 
	 	not in its individual
                  capacity,  	 
	 	but solely as Trustee	 

        

      

    

    
 

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

     

    [Form
      of
      Reverse of Certificates]

     

    First
      Horizon Alternative Mortgage Securities Trust 2006-RE1

    Mortgage
      Pass-Through Certificates

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      First Horizon Alternative Mortgage Securities Trust 2006-RE1 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 Trustee 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 Trustee.

     

    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. The Record Date applicable to each Distribution
      Date
      is the last Business Day of the month next preceding the month of such
      Distribution Date.

     

    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 Trustee 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 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 Trustee and
      the rights of the Certificateholders under the Agreement at any time by the
      Depositor 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.

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

     

    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 Trustee upon surrender of this Certificate for registration of transfer
      at
      the Corporate Trust Office or the office or agency maintained by the Trustee
      in
      New York, New York, accompanied by a written instrument of transfer in form
      satisfactory to the Trustee 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 Trustee may require payment of a sum sufficient to cover any tax or
      other governmental charge payable in connection therewith.

     

    The
      Depositor and the Trustee and any agent of the Depositor 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 Trustee, nor any such
      agent shall be affected by any notice to the contrary.

     

    The
      Certificates are subject to optional termination on any Distribution Date on
      which the Underlying Certificates are terminated pursuant to terms of the
      Underlying PSA. In the event that no such optional termination occurs, the
      obligations and responsibilities created by the Agreement will terminate upon
      the later of the maturity or other liquidation of the Underlying Certificates
      or
      the disposition of all Trust Fund property in respect thereof and the
      distribution to Certificateholders of all amounts required to be distributed
      pursuant to the Agreement. In no event, however, will the trust created by
      the
      Agreement continue beyond the expiration of 21 years from the death of the
      last
      survivor of the descendants living at the date of the Agreement of a certain
      person named in the Agreement.

     

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

     

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

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

     

    ______________________________

    (Please
      insert social security or

    other
      identifying number of assignee)

     

    ________________________________________________________________________

     

    ________________________________________________________________________

    (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 Trustee 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
      ___________________________. Applicable statements should be mailed to
      __________________________. 

     

    This
      information is provided by ________________________________________, the
      assignee named above, or _________________, as its agent.

     

    
      
        
        

      

      
        C-3

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

     

    [FORM
      OF
      CLASS X CERTIFICATE

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
      TRANSFEREE REPRESENTS TO THE TRUSTEE THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE
      BENEFIT PLAN SUBJECT TO SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY
      ACT OF 1974, AS AMENDED (“ERISA”), OR A PLAN SUBJECT TO SECTION 4975 OF THE
      CODE, OR, IF THE CERTIFICATE HAS BEEN SUBJECT TO AN ERISA-QUALIFYING
      UNDERWRITING, A REPRESENTATION IN ACCORDANCE WITH THE PROVISIONS OF THE
      AGREEMENT REFERRED TO HEREIN, OR DELIVERS TO THE TRUSTEE AN OPINION OF COUNSEL
      IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. SUCH
      REPRESENTATION SHALL BE DEEMED TO HAVE BEEN MADE TO THE TRUSTEE BY THE
      TRANSFEREE’S ACCEPTANCE OF A CERTIFICATE OF THIS CLASS AND BY A BENEFICIAL
      OWNER’S ACCEPTANCE OF ITS INTEREST IN A CERTIFICATE OF THIS CLASS.

     

    THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF
      THE UNITED STATES (“BLUE SKY LAWS”), AND SUCH CERTIFICATE MAY NOT BE OFFERED,
      RESOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) TO A PERSON WHOM THE SELLER
      REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF
      RULE 144A UNDER THE SECURITIES ACT IN A TRANSACTION MEETING THE REQUIREMENTS
      OF
      RULE 144A, (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE
      144
      UNDER THE SECURITIES ACT (IF AVAILABLE) OR (C) TO AN INSTITUTIONAL ACCREDITED
      INVESTOR AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER
      THE
      SECURITIES ACT IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
      THE
      SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE BLUE SKY LAWS.
      NO
      REPRESENTATION IS MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY
      RULE
      144 FOR RESALES OF THIS CERTIFICATE. 

     

    

     

    
      	
              Certificate
                No.

            	: 
	
              Closing
                Date

            	: 
	
              First
                Distribution Date

            	: 
	
              Percentage
                Interest of this Certificate

            	
              : 
                $

            

    

     

    
      First
        Horizon Alternative Mortgage Securities Trust 2006-RE1

      Mortgage
        Pass-Through Certificates, Series 2006-RE1

      Class
        X
 

    

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

     

    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
      classes of mortgage pass-through certificates (each, an “Underlying
      Certificate”) evidencing an undivided beneficial ownership interest in a pool of
      conventional mortgage loans (the “Underlying Mortgage Loans”) secured by first
      liens on one- to four-family residential properties.

     

    First
      Horizon Asset Securities Inc., as Depositor

     

    This
      certifies that __________________ is the registered owner of the Percentage
      Interest evidenced by this Certificate set forth on the face hereof in certain
      distributions with respect to a Separate Interest Trust. The Separate Interest
      Trust was created pursuant to a Pooling Agreement dated as of the Closing Date
      specified above (the “Agreement”) among the First Horizon Asset Securities Inc.,
      as depositor (the “Depositor”), Citigroup Capital Markets Inc., as seller (the
“Seller”), and The Bank of New York, as trustee (the “Trustee”). 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.

     

    On
      each
      Distribution Date during the term of the Agreement, the Owner of this
      Certificate shall be entitled to receive distributions of Underlying Yield
      Supplement Amounts, if any, from the Separate Interest Trust. This Certificate
      has no Class Certificate Balance and it will not accrue any interest. This
      Certificate does not evidence an obligation of, or an interest in, and is not
      guaranteed by the Depositor or the Trustee referred to below or any of their
      respective affiliates. None of this Certificate, the Underlying Certificates
      or
      the Underlying Mortgage Loans are guaranteed or insured by any governmental
      agency or instrumentality.

     

    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
      Trustee.

    
      
        
        

      

      
        D-2

        
          

        

      

       

    

     

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

     

    
      	Dated:
              May __,
              2006	 	 
	 	
              THE
                BANK OF NEW YORK,

              not
                in
                its individual capacity, but solely as Trustee

            
	 
 	 
 	 
 
	 	By:  	
               

            
	 	
              
Authorized
              Signatory of 
	 	
              THE BANK OF NEW YORK

            
	 	not in its individual capacity,
	 	but solely as Trustee

    

     

    
      
        
          
            
              	Countersigned:	 
	 	 	 
	By 	 	 
	 	
                      
Authorized
                      Signatory of 	 
	 	THE BANK OF NEW YORK, 	 
	 	not in its individual
                      capacity,  	 
	 	but solely as Trustee	 

            

          

        

         

      

    

    
      
        
        

      

      
        D-3

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      E

     

    TRANSFER
      AFFIDAVIT

     

    First
      Horizon Alternative Mortgage Securities Trust 2006-RE1

    Mortgage
      Pass-Through Certificates

    Series
      2006-RE1

     

    
      	
              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 A-R Certificate (the “Certificate”) issued pursuant to the
      Pooling Agreement, (the “Agreement”), relating to the above-referenced Series,
      by and between First Horizon Asset Securities Inc., as depositor (the
“Depositor”), and The Bank of New York, as 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. The Transferee does not hold
      REMIC residual interests as nominee to facilitate the clearance and settlement
      of such interests through electronic book-entry changes in accounts of
      participating organizations.

     

    3. The
      Transferee has been advised of, and understands that (i) a tax may be imposed
      on
      Transfers of the Certificate to Persons that are not Permitted Transferees;
      (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
      not a
      Permitted Transferee, 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 a
      Permitted Transferee 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 may 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 not a Permitted Transferee
      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 a Permitted Transferee and the pass-through entity does not have actual
      knowledge that such affidavit is false. (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.)

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

    5. The
      Transferee has reviewed the provisions of Section 5.2(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 5.2(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 Trustee
      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.

     

    8. The
      Transferee’s taxpayer identification number is ______.

     

    9. The
      Transferee is either a U.S. Person as defined in Code Section 7701(a)(30) or
      the
      Transferee has furnished the Transferor a properly completed Internal Revenue
      Service Form W-8ECI..

     

    10. The
      Transferee is aware that the Certificate may represent one or more interests
      in
      a “noneconomic residual interest” within the meaning of 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 is not an employee benefit plan or arrangement subject to Section
      406
      of ERISA or a plan or arrangement subject to Section 4975 of the Code, nor
      a
      person acting on behalf of any such plan or arrangement, nor using the assets
      of
      any such plan or arrangement to effect such transfer.

     

    12. The
      Transferee has historically paid its debts as they came due and the Transferee
      will continue to pay its debts as they come due in the future; the Transferee
      understands that, as the holder of the Certificate, the Transferee may incur
      tax
      liabilities in excess of any cash flows generated by the Certificate and the
      Transferee intends to pay taxes associated with holding the Certificate as
      they
      become due.

     

    
      
        
        

      

      
        E-2

        
          

        

      

      
        
        

      

    

    13. The
      Transferee is a domestic corporation taxable as a regular corporation for U.S.
      federal income tax purposes (a “taxable domestic C corporation”) and is not a
      real estate investment trust, regulated investment company or REMIC. The
      Transferee will not cause income from the Certificate to be attributable, for
      U.S. federal income tax purposes, to a non-U.S. permanent establishment or
      fixed
      base (within the meaning of an applicable income tax treaty) of the Transferee
      or another U.S. taxpayer. At the time of the Transfer, and at the close of
      each
      of the Transferee’s two fiscal years preceding the year of the Transfer, the
      Transferee’s gross assets for financial reporting purposes exceeded $10 million
      (together, the “Asset Requirements”), and the Transferee hereby covenants that
      any subsequent Transfer of its Ownership Interest in the Certificate will be
      to
      another taxable, domestic C corporation satisfying the Asset
      Requirements

     

    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 _________, 20__.

     

    
      
        	 	 	 
	 	
                

                Print
                  Name of Transferee

              
	 
 	 
	 	
                By: 

                 

                Name:

                 

                
                  Title:

                

              	
                 

                
                  

                

                 

                
                  

                

                 

                  

                

              

      

    

     

    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 ___________, 20____.

     

    
      	 	 
	 	
              
                

              

              NOTARY
                PUBLIC

            
	 
 	
              My
                Commission expires the ___ day of 

              
                ________________,
                  20___.

              

            

    

     

    
      
        
        

      

      
        E-3

        
          

        

      

      
        
        

      

    

    EXHIBIT
      1
      to EXHIBIT E

     

    Certain
      Definitions

     

    “Ownership
      Interest”: As to any 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
      Certificate, (iv) rural electric and telephone cooperatives described in section
      1381(a)(2)(C) of the Code, (v) an “electing large partnership” as defined in
      section 775 of the Code, (vi) a Person that is not (a) a citizen or resident
      of
      the United States, (b) a corporation, partnership, or other entity created
      or
      organized in or under the laws of the United States, any state thereof or the
      District of Columbia, (c) an estate whose income from sources without the United
      States is includible in gross income for United States federal income tax
      purposes regardless of its connection with the conduct of a trade or business
      within the United States or (d) 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 United States persons have the authority to control all substantial
      decisions of the trust, unless such Person has furnished the transferor and
      the
      Trustee with a duly completed Internal Revenue Service Form W-8ECI or any
      applicable successor form, 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 Certificate to such Person may cause any REMIC created pursuant
      to
      the Agreement to fail to qualify as a REMIC at any time that the Certificates
      (as defined in the Agreement) are outstanding; provided, however, that if a
      person is classified as a partnership or a disregarded entity under the Code,
      such person shall only be a Permitted Transferee if all of its beneficial owners
      are described in subclauses (a), (b), (c) or (d) of clause (vi) and the
      governing documents of such person prohibits a transfer of any interest in
      such
      person to any person described in clause (vi). 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 Federal Home Loan Mortgage Corporation,
      a
      majority of its board of directors is not selected by such government unit.
      

     

    “Person”:
      Any individual, corporation, partnership, joint venture, association, bank,
      joint-stock company, trust (including any beneficiary thereof), 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
      Certificate, including the acquisition of a Certificate by the
      Depositor.

     

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

     

    
      
        
        

      

      
        E-4

        
          

        

      

      
        
        

      

    

    EXHIBIT
      2
      to EXHIBIT E

     

    Section
      5.2(c) of the Agreement

     

    (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 Trustee 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 Trustee shall not register the Transfer
      of any Residual Certificate unless, in addition to the certificates required
      to
      be delivered to the Trustee under subparagraph (b) above, the Trustee 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 H. The
      Transferee does not hold REMIC residual interests as nominee to facilitate
      the
      clearance and settlement of such interests through electronic book-entry changes
      in accounts of participating organizations. 

     

    (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 5.2(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 5.2(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 Trustee shall be under no liability to any Person for any
      registration of Transfer of a Residual Certificate that is in fact not permitted
      by Section 5.2(b) and this Section 5.2(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 in the case of a Residual Certificate which is also a Private
      Certificate, either the Rule 144A Letter or the Investment Letter. The Trustee
      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 Trustee shall be paid and
      delivered by the Trustee to the last preceding Permitted Transferee of such
      Certificate.

    
      
        
        

      

      
        E-5

        
          

        

      

      
        
        

      

    

    (v) The
      Depositor shall use its best efforts to make available, upon receipt of written
      request from the Trustee, 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
      5.2(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 Trustee of an Opinion of Counsel, which Opinion of Counsel
      shall
      not be an expense of the Trust Fund, the Trustee or the Depositor, to the effect
      that the elimination of such restrictions will not cause any REMIC created
      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 Trustee,
      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. 

     

    
      
        
        

      

      
        E-6

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F

     

    FORM
      OF
      TRANSFEROR CERTIFICATE

     

    _______________,
      20___

     

    First
      Horizon Asset Securities Inc.  

    4000
      Horizon Way 

    Irving,
      Texas 75063

     

    The
      Bank
      of New York 

    101
      Barclay Street, 8W 

    New
      York,
      New York 10286

     

    
      	 	
              Re:

            	
              First
                Horizon Alternative Mortgage Securities Trust 2006-RE1 Mortgage
                Pass-Through Certificates, Series 2006-RE1, Class
                [A-X][A-R]

            

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with our disposition of the above Certificates we certify that (a)
      to
      the extent we are disposing of a Private Certificate, we understand that the
      Private Certificate has not been registered under the Securities Act of 1933,
      as
      amended (the “Act”), and is being disposed of by us in a transaction that is
      exempt from the registration requirements of the Act, (b) 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 Act, and (c) to the extent we are
      disposing of a Residual Certificate, we have no knowledge the transferee is
      not
      a Permitted Transferee.

     

    Capitalized
      terms used herein shall have the meaning ascribed to such terms in the Pooling
      Agreement dated as of May 31, 2006, by and between First Horizon Asset
      Securities Inc., as depositor, and The Bank of New York, as trustee, pursuant
      to
      which the Residual Certificates were issued. 

    
      	 	 	 
	 	
              Very
                truly yours,

               

            
	 
 	
              

              Print
                Name of Transferor

               

            
	
            	By:  	
            
	 	
              

              Authorized
                Officer 

            

    

     

    
      
        
        

      

      
        F-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      G

     

    FORM
      OF
      INVESTMENT LETTER (NON-RULE 144A)

     

    _____________,
      20___

     

    First
      Horizon Asset Securities Inc. 

    4000
      Horizon Way 

    Irving,
      Texas 75063

     

    The
      Bank
      of New York 

    101
      Barclay Street, 8W 

    New
      York,
      New York 10286 

    Attention:
      Mortgage-Backed Securities Group 

     

    
      	 	
              Re:

            	
              First
                Horizon Alternative Mortgage Securities Trust 2006-RE1 Mortgage
                Pass-Through Certificates, Series 2006-RE1, Class [A-X][A-R]
                Certificates

            

    

     

    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)
      either (i) we are not an employee benefit plan or arrangement that is subject
      to
      the Employee Retirement Income Security Act of 1974, as amended, or a plan
      or
      arrangement that is subject to Section 4975 of the Internal Revenue Code of
      1986, as amended, nor are we acting on behalf of any such plan or arrangement
      nor are we using the assets of any such plan or arrangement to effect such
      acquisition or (ii) if, in the case of ERISA-Restricted Certificates that have
      been the subject of an ERISA-Qualifying Underwriting, we are an insurance
      company, a representation that we are 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 PTCE 95-60, (e) 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 (g) below), (f) 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 (g) 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 Agreement.

    
      	 	 	 
	 	
              Very
                truly yours,

               

            
	 
 	
              

              
                Print
                  Name of Transferee

                 

              

            
	
            	By:  	
            
	 	
              

              Authorized
                Officer 

            

    

     

    
      
        
        

      

      
        G-1

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      H

     

    FORM
      OF
      RULE 144A LETTER

     

    __________,
      20__

     

    First
      Horizon Asset Securities Inc. 

    4000
      Horizon Way 

    Irving,
      Texas 75063

     

    The
      Bank
      of New York 

    101
      Barclay Street, 8W 

    New
      York,
      New York 10286 

    Attention:
      Mortgage-Backed Securities Group 

     

    
      	 	
              Re:

            	
              First
                Horizon Alternative Mortgage Securities Trust 2006-RE1 Mortgage
                Pass-Through Certificates, Series 2006-RE1, Class
                [A-X][A-R]

            

    

     

    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) we are not an employee benefit plan or arrangement that is
      subject to the Employee Retirement Income Security Act of 1974, as amended,
      or a
      plan or arrangement that is subject to Section 4975 of the Internal Revenue
      Code
      of 1986, as amended, nor are we acting on behalf of any such plan or arrangement
      nor using the assets of any such plan or arrangement to effect such acquisition,
      (e) if an insurance company, in the case of ERISA-restricted Certificates that
      have been the subject of an ERISA-Qualifying Underwriting, we are purchasing
      the
      Certificates with funds contained in an “insurance company general account” (as
      defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 (“PTCE
      95-60”)) and our purchase and holding of the Certificates are covered under
      Sections I and III of PTCE 95-60, (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 Act or that would
      render the disposition of the Certificates a violation of Section 5 of the
      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, (g) we are a “qualified institutional buyer” as that term is
      defined in Rule 144A under the Act (“Rule 144A”) and have completed either of
      the forms of certification to that effect attached hereto as Annex 1 or Annex
      2,
      (h) we are aware that the sale to us is being made in reliance on Rule 144A,
      and
      (i) 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 (A) 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 (B)
      pursuant to another exemption from registration under the Act.

     

    
      	 	 	 
	 	
              Very
                truly yours,

               

            
	 
 	
              

              
                Print
                  Name of Transferee

                 

              

            
	
            	By:  	
            
	 	
              

              Authorized
                Officer 

            

    

    

      
        
          
          

        

        
          H-1

          
            

          

        

        
          
          

        

      

    

     

    ANNEX
      1
      TO EXHIBIT H

     

    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 $ ______1 
      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.

     

      
        

      

    

    1
      Buyer
      must own and/or invest on a discretionary basis at least $100,000,000 in
      securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
      invest on a discretionary basis at least $10,000,000 in securities.

     

    
      
        
        

      

      
        H-2

        
          

        

      

      
        
        

      

    

    ___ 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.

     

    
      
        
        

      

      
        H-3

        
          

        

      

      
        
        

      

    

    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 Transferee

            
	 
 	 
	 	
              By: 

               

              Name:

               

              
                Title:

                 

                Date:

              

            	
               

              
                

              

               

              
                

              

               

                

              

               

                

              

            

    

     

    
      
        
        

      

      
        H-4

        
          

        

      

      
        
        

      

    

    ANNEX
      2
      TO EXHIBIT H

     

    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.

     

    
      
        
        

      

      
        H-5

        
          

        

      

      
        
        

      

    

    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 Transferee

            
	 
 	 
	 	
              By: 

               

              Name:

               

              
                Title:

              

            	
               

              
                

              

               

              
                

              

               

                

              

            

    

     

    
      	 	 	 
	 	
              
                IF
                  AN ADVISER:

                 

              

            
	 
 	
              

              
                Print
                  Name of Transferee

                 

              

            

    

    
      	 	
              Date:

            	
               

              
                

              

            

    

     

    
      
        
        

      

      
        H-6

        
          

        

      

      
        
        

      

    

    EXHIBIT
      I

    

    FORM
      OF
      ANNUAL CERTIFICATION

     

    (Trustee)

     

    Re: First
      Horizon Alternative Mortgage Securities Trust 2006-RE1 (the “Trust”),
      Mortgage Pass-Through Certificates, Series 2006-RE1, issued pursuant to the
      Pooling Agreement, dated as of May 31, 2006 (the “Pooling
      Agreement”),
      between First Horizon Asset Securities Inc., as depositor (the “Depositor”)
      and
      The Bank of New York, as trustee (the “Trustee”)

     

      I,
      [identify the certifying individual], a [title of certifying individual] of
      the
      Trustee, hereby certify to the Depositor and its officers, directors and
      affiliates, and with the knowledge and intent that they will rely upon this
      certification, that:

     

    1.  I
      have
      reviewed the report on assessment of the Trustee’s compliance with the servicing
      criteria set forth in Item 1122(d) of Regulation AB (the “Servicing
      Criteria”),
      provided in accordance with Rules 13a-18 and 15d-18 under Securities Exchange
      Act of 1934, as amended (the “Exchange
      Act”)
      and
      Item 1122 of Regulation AB (the “Servicing
      Assessment”),
      and
      the registered public accounting firm’s attestation report provided in
      accordance with Rules 13a-18 and 15d-18 under the Exchange Act and Section
      1122(b) of Regulation AB (the “Attestation
      Report”)
      (collectively, the “Trustee
      Information”);

     

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

     

    3.  Based
      on
      my knowledge, all of the Trustee Information required to be provided by the
      Trustee under the Pooling Agreement has been provided to the
      Depositor;

     

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

     

    5.  The
      Servicing Assessment and Attestation Report required to be provided by the
      Trustee pursuant to the Pooling Agreement have been provided to the Depositor.
      Any material instances of noncompliance described in such reports have been
      disclosed to the Depositor. Any material instance of noncompliance with the
      Servicing Criteria has been disclosed in such reports.

     

    
      	 	 	 
	
            	Date:	 
	 	
              
                

              

               

                

              

              [Signature]

              
                [Title]
                  

              

            

    

     

    
      
        
        

      

      
        I-1

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      J

     

    FORM
      OF
      LIST OF ITEM 1119 PARTIES

    FIRST
      HORIZON ALTERNATIVE MORTGAGE PASS-THROUGH TRUST 2006-RE1

     

    Mortgage
      Pass-Through Certificates,

    Series
      2006-RE1

     

    
      	
              Party

            	
              Contact
                Information

            

    

     

    
      
        
        

      

      
        J-1

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