Document:

MORTGAGE LOAN PURCHASE AGREEMENT

      THIS MORTGAGE LOAN PURCHASE AGREEMENT dated as of December 29, 2004 by and
between FIRST HORIZON HOME LOAN CORPORATION, a Kansas corporation (the
"Seller"), and FIRST TENNESSEE BANK NATIONAL ASSOCIATION (the "Purchaser").

      WHEREAS, the Seller owns certain Mortgage Loans (as hereinafter defined)
which Mortgage Loans are more particularly listed and described in Schedule A
attached hereto and made a part hereof.

      WHEREAS, the Seller and the Purchaser wish to set forth the terms pursuant
to which the Mortgage Loans, excluding the servicing rights thereto, are to be
sold by the Seller to the Purchaser.

      WHEREAS, the Seller will simultaneously transfer the servicing rights for
the Mortgage Loans to First Tennessee Mortgage Services, Inc. ("FTMSI") pursuant
to the Servicing Rights Transfer and Subservicing Agreement (as hereinafter
defined).

      WHEREAS, the Purchaser will engage FTMSI to service the Mortgage Loans
pursuant to the Servicing Agreement (as hereinafter defined).

      NOW, THEREFORE, in consideration of the foregoing, other good and valuable
consideration, and the mutual terms and covenants contained herein, the parties
hereto agree as follows:

                                   ARTICLE I
                                   Definitions

      Agreement: This Mortgage Loan Purchase Agreement, as the same may be
amended, supplemented or otherwise modified from time to time in accordance with
the terms hereof.

      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
New York City is located are authorized or obligated by law or executive order
to be closed.

      Closing Date: December 29, 2004

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

      Cooperative Corporation: The entity that holds title (fee or an acceptable
leasehold estate) to the real property and improvements constituting the
Cooperative Property and which governs the Cooperative Property, which
Cooperative Corporation must qualify as a Cooperative Housing Corporation under
Section 216 of the Code.

      Coop Shares: Shares issued by a Cooperative Corporation.

      Cooperative Loan: Any Mortgage Loan secured by Coop Shares and a
Proprietary Lease.
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      Cooperative Property: The real property and improvements owned by the
Cooperative Corporation, including the allocation of individual dwelling units
to the holders of the Coop Shares of the Cooperative Corporation.

      Cooperative Unit: A single family dwelling located in a Cooperative
Property.

      Custodian: First Tennessee Bank National Association, and its successors
and assigns, as custodian under the Custodial Agreement dated as of December 29,
2004 by and among The Bank of New York, as trustee, First Horizon Home Loan
Corporation, as master servicer, and the Custodian.

      Cut-Off Date: December 1, 2004.

      Cut-off Date Principal Balance: As to any Mortgage Loan, the Stated
Principal Balance thereof as of the close of business on the Cut-off Date.

      Debt Service Reduction: With respect to any Mortgage Loan, a reduction by
a court of competent jurisdiction in a proceeding under the Bankruptcy Code in
the Scheduled Payment for such Mortgage Loan which became final and
non-appealable, except such a reduction resulting from a Deficient Valuation or
any reduction that results in a permanent forgiveness of principal.

      Deficient Valuation: With respect to any Mortgage Loan, a valuation by a
court of competent jurisdiction of the Mortgaged Property in an amount less than
the then-outstanding indebtedness under the Mortgage Loan, or any reduction in
the amount of principal to be paid in connection with any Scheduled Payment that
results in a permanent forgiveness of principal, which valuation or reduction
results from an order of such court which is final and non-appealable in a
proceeding under the United States Bankruptcy Reform Act of 1978, as amended.

      Delay Delivery Mortgage Loans: The Mortgage Loans for which all or a
portion of a related Mortgage File is not delivered to the Trustee or to the
Custodian on its behalf on the Closing Date. The number of Delay Delivery
Mortgage Loans shall not exceed 25% of the aggregate number of Mortgage Loans as
of the Closing Date.

      Deleted Mortgage Loan: As defined in Section 4.1(c) hereof.

      Determination 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 25th day
of each month, or if such 25th day is not a Business Day, the next succeeding
Business Day.

      GAAP: Generally applied accounting principals as in effect from time to
time in the United States of America.

      Insurance Proceeds: Proceeds paid by an insurer pursuant to any insurance
policy, including all riders and endorsements thereto in effect, including any
replacement policy or policies, in each case other than any amount included in
such Insurance Proceeds in respect of expenses covered by such insurance policy.

         Liquidation Proceeds: Amounts, including Insurance Proceeds, received
in connection with the partial or complete liquidation of defaulted Mortgage
Loans, whether through trustee's sale, foreclosure sale or otherwise or amounts
received in connection with any condemnation or partial release of a Mortgaged
Property.

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      MERS: Mortgage Electronic Registration Systems, Inc., a corporation
organized and existing under the laws of the State of Delaware, or any successor
thereto.

      MERS Mortgage Loan: Any Mortgage Loan registered with MERS on the MERS
System.

      MERS (R) System: The system of recording transfers of mortgages
electronically maintained by MERS.

      MIN: The Mortgage Identification Number for any MERS Mortgage Loan.

      MOM Loan: Any Mortgage Loan as to which MERS is acting as mortgagee,
solely as nominee for the originator of such Mortgage Loan and its successors
and assigns.

      Mortgage: The mortgage, deed of trust or other instrument creating a first
lien on the property securing a Mortgage Note.

      Mortgage File: The mortgage documents listed in Section 3.1 pertaining to
a particular Mortgage Loan and any additional documents required to be added to
the Mortgage File pursuant to this Agreement.

      Mortgage Loans: The mortgage loans transferred, sold and conveyed by the
Seller to the Purchaser, pursuant to this Agreement.

      Mortgage Loan Purchase Price: With respect to any Mortgage Loan required
to be purchased by the Seller pursuant to Section 4.1(c) hereof, an amount equal
to the sum of (i) 100% of the unpaid principal balance of the Mortgage Loan on
the date of such purchase, and (ii) accrued interest thereon at the applicable
Mortgage Rate from the date through which interest was last paid by the
Mortgagor to the first day in the month in which the Mortgage Loan Purchase
Price is to be distributed to the Purchaser or its designees.

      Mortgage Note: The original executed note or other evidence of
indebtedness evidencing the indebtedness of a Mortgagor under a Mortgage Loan.

      Mortgaged Property: The underlying property securing a Mortgage Loan,
which, with respect to a Cooperative Loan, is the related Coop Shares and
Proprietary Lease.

      Mortgagor: The obligor(s) on a Mortgage Note.

      Principal Prepayment: Any payment of principal by a Mortgagor on a
Mortgage Loan that is received in advance of its scheduled Due Date and is not
accompanied by an amount representing scheduled interest due on any date or
dates in any month or months subsequent to the month of prepayment.

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      Proprietary Lease: With respect to any Cooperative Unit, a lease or
occupancy agreement between a Cooperative Corporation and a holder of related
Coop Shares.

      Purchase Price: $148,378,386.62.

      Purchaser: First Tennessee Bank National Association, in its capacity as
purchaser of the Mortgage Loans from the Seller pursuant to this Agreement.

      Recognition Agreement: With respect to any Cooperative Loan, an agreement
between the Cooperative Corporation and the originator of such Mortgage Loan
which establishes the rights of such originator in the Cooperative Property.

      Scheduled Payment: The scheduled monthly payment on a Mortgage Loan due on
the first day of the month allocable to principal and/or interest on such
Mortgage Loan which, unless otherwise specified herein, shall give effect to any
related Debt Service Reduction and any Deficient Valuation that affects the
amount of the monthly payment due on such Mortgage Loan.

      Security Agreement: The security agreement with respect to a Cooperative
Loan.

      Seller: First Horizon Home Loan Corporation, a Kansas corporation, and its
successors and assigns, in its capacity as seller of the Mortgage Loans.

      Servicing Agreement: The servicing agreement, dated as of November 26,
2002 by and between First Tennessee Bank National Association and its assigns,
as owner, and First Tennessee Mortgage Services, Inc., as servicer.

      Servicing Rights Transfer and Subservicing Agreement: The servicing rights
transfer and subservicing agreement, dated as of November 26, 2002 by and
between First Horizon Home Loan Corporation, as transferor and subservicer, and
First Tennessee Mortgage Services, Inc., as transferee and servicer.

      Stated Principal Balance: As to any Mortgage Loan, the unpaid principal
balance of such Mortgage Loan as specified in the amortization schedule at the
time relating thereto (before any adjustment to such amortization schedule by
reason of any moratorium or similar waiver or grace period) after giving effect
to any previous partial Principal Prepayments and Liquidation Proceeds allocable
to principal (other than with respect to any Liquidated Mortgage Loan) and to
the payment of principal due on such date and irrespective of any delinquency in
payment by the related Mortgagor.

      Substitute Mortgage Loan: A Mortgage Loan substituted by the Seller for a
Deleted Mortgage Loan which must, on the date of such substitution, (i) have a
Stated Principal Balance, after deduction of the principal portion of the
Scheduled Payment due in the month of substitution, not in excess of, and not
more than 10% less than the Stated Principal Balance of the Deleted Mortgage
Loan; (ii) have a Mortgage Rate not lower than the Mortgage Rate of the Deleted
Mortgage Loan; (iii) have a maximum mortgage rate not more than 1% per annum

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higher or lower than the maximum mortgage rate of the Deleted Mortgage Loan;
(iv) have a minimum mortgage rate specified in its related Mortgage Note not
more than 1% per annum higher or lower than the minimum mortgage rate of the
Deleted Mortgage Loan; (v) have the same mortgage index, reset period and
periodic rate as the Deleted Mortgage Loan and a gross margin not more than 1%
per annum higher or lower than that of the Deleted Mortgage Loan (vi) be
accruing interest at a rate no lower than and not more than 1% per annum higher
than, that of the Deleted Mortgage Loan; (iv) have a loan-to-value ratio no
higher than that of the Deleted Mortgage Loan; (vii) have a remaining term to
maturity no greater than (and not more than one year less than that of) the
Deleted Mortgage Loan; (viii) not be a Cooperative Loan unless the Deleted
Mortgage Loan was a Cooperative Loan and (ix) comply with each representation
and warranty set forth in Schedule B hereto.

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

                                   ARTICLE II
                                Purchase and Sale

      Section 2.1 Purchase Price. In consideration for the payment to it of the
Purchase Price on the Closing Date, pursuant to written instructions delivered
by the Seller to the Purchaser on the Closing Date, the Seller does hereby
transfer, sell and convey to the Purchaser on the Closing Date, but with effect
from the Cut-off Date, (i) all right, title and interest of the Seller in the
Mortgage Loans, excluding the servicing rights thereto, and all property
securing such Mortgage Loans, including all interest and principal received or
receivable by the Seller with respect to the Mortgage Loans on or after the
Cut-off Date and all interest and principal payments on the Mortgage Loans
received on or prior to the Cut-off Date in respect of installments of interest
and principal due thereafter, but not including payments of principal and
interest due and payable on the Mortgage Loans on or before the Cut-off Date,
and (ii) all proceeds from the foregoing. Items (i) and (ii) in the preceding
sentence are herein referred to collectively as "Mortgage Assets."

      Section 2.2 Timing. The sale of the Mortgage Assets hereunder shall take
place on the Closing Date.

                                  ARTICLE III
                             Conveyance and Delivery

      Section 3.1 Delivery of Mortgage Files. In connection with the transfer
and assignment set forth in Section 2.1 above, the Seller has delivered or
caused to be delivered to the Trustee or to the Custodian on its behalf (or, in
the case of the Delay Delivery Mortgage Loans, will deliver or cause to be
delivered to the Trustee or to the Custodian on its behalf within thirty (30)
days following the Closing Date) the following documents or instruments with
respect to each Mortgage Loan so assigned (collectively, the "Mortgage Files"):

      (a)   (1) the original Mortgage Note endorsed by manual or facsimile
            signature in blank in the following form: "Pay to the order of
            ________________, without recourse," with all intervening
            endorsements showing a complete chain of endorsement from the
            originator to the Person endorsing the Mortgage Note (each such
            endorsement being sufficient to transfer all right, title and
            interest of the party so endorsing, as noteholder or assignee
            thereof, in and to that Mortgage Note); or

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            (2)   with respect to any Lost Mortgage Note, a lost note affidavit
                  from the Seller stating that the original Mortgage Note was
                  lost or destroyed, together with a copy of such Mortgage Note;

      (b)   except as provided below and for each Mortgage Loan that is not a
            MERS Mortgage Loan, the original recorded Mortgage or a copy of such
            Mortgage certified by the Seller as being a true and complete copy
            of the Mortgage, and in the case of each MERS Mortgage Loan, the
            original Mortgage, noting the presence of the MIN of the Mortgage
            Loans and either language indicating that the Mortgage Loan is a MOM
            Loan if the Mortgage Loan is a MOM Loan or if the Mortgage Loan was
            not a MOM Loan at origination, the original Mortgage and the
            assignment thereof to MERS, with evidence of recording indicated
            thereon, or a copy of the Mortgage certified by the public recording
            office in which such Mortgage has been recorded;

      (c)   a duly executed assignment of the Mortgage in blank (which may be
            included in a blanket assignment or assignments), together with,
            except as provided below, all interim recorded assignments of such
            mortgage (each such assignment, when duly and validly completed, to
            be in recordable form and sufficient to effect the assignment of and
            transfer to the assignee thereof, under the Mortgage to which the
            assignment relates); provided that, if the related Mortgage has not
            been returned from the applicable public recording office, such
            assignment of the Mortgage may exclude the information to be
            provided by the recording office;

      (d)   the original or copies of each assumption, modification, written
            assurance or substitution agreement, if any;

      (e)   either the original or duplicate original title policy (including
            all riders thereto) with respect to the related Mortgaged Property,
            if available, provided that the title policy (including all riders
            thereto) will be delivered as soon as it becomes available, and if
            the title policy is not available, and to the extent required
            pursuant to the second paragraph below or otherwise in connection
            with the rating of the Certificates, a written commitment or interim
            binder or preliminary report of the title issued by the title
            insurance or escrow company with respect to the Mortgaged Property,
            and

      (f)   in the case of a Cooperative Loan, the originals of the following
            documents or instruments:

      (1)   The Coop Shares, together with a stock power in blank;

            (2)   The executed Security Agreement;

            (3)   The executed Proprietary Lease;

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            (4)   The executed Recognition Agreement;

            (5)   The executed UCC-1 financing statement with evidence of
                  recording thereon which have been filed in all places required
                  to perfect the Seller's interest in the Coop Shares and the
                  Proprietary Lease; and

            (6)   Executed UCC-3 financing statements or other appropriate UCC
                  financing statements required by state law, evidencing a
                  complete and unbroken line from the mortgagee to the Trustee
                  with evidence of recording thereon (or in a form suitable for
                  recordation).

      In the event that in connection with any Mortgage Loan that is not a MERS
Mortgage Loan the Seller cannot deliver (i) the original recorded Mortgage or
(ii) all interim recorded assignments satisfying the requirements of clause (b)
or (c) above, respectively, concurrently with the execution and delivery hereof
because such document or documents have not been returned from the applicable
public recording office, the Seller shall promptly deliver or cause to be
delivered to the Trustee or the Custodian on its behalf such original Mortgage
or such interim assignment, as the case may be, with evidence of recording
indicated thereon upon receipt thereof from the public recording office, or a
copy thereof, certified, if appropriate, by the relevant recording office, but
in no event shall any such delivery of the original Mortgage and each such
interim assignment or a copy thereof, certified, if appropriate, by the relevant
recording office, be made later than one year following the Closing Date;
provided, however, in the event the Seller is unable to deliver or cause to be
delivered by such date each Mortgage and each such interim assignment by reason
of the fact that any such documents have not been returned by the appropriate
recording office, or, in the case of each such interim assignment, because the
related Mortgage has not been returned by the appropriate recording office, the
Seller shall deliver or cause to be delivered such documents to the Trustee or
the Custodian on its behalf as promptly as possible upon receipt thereof and, in
any event, within 720 days following the Closing Date. The Seller shall forward
or cause to be forwarded to the Trustee or the Custodian on its behalf (i) from
time to time additional original documents evidencing an assumption or
modification of a Mortgage Loan and (ii) any other documents required to be
delivered by the Seller to the Trustee. In the event that the original Mortgage
is not delivered and in connection with the payment in full of the related
Mortgage Loan and the public recording office requires the presentation of a
"lost instruments affidavit and indemnity" or any equivalent document, because
only a copy of the Mortgage can be delivered with the instrument of satisfaction
or reconveyance, the Seller shall execute and deliver or cause to be executed
and delivered such a document to the public recording office. In the case where
a public recording office retains the original recorded Mortgage or in the case
where a Mortgage is lost after recordation in a public recording office, the
Seller shall deliver or cause to be delivered to the Trustee or the Custodian on
its behalf a copy of such Mortgage certified by such public recording office to
be a true and complete copy of the original recorded Mortgage.

      In addition, in the event that in connection with any Mortgage Loan the
Seller cannot deliver or cause to be delivered the original or duplicate
original lender's title policy (together with all riders thereto), satisfying
the requirements of clause (v) above, concurrently with the execution and
delivery hereof because the related Mortgage has not been returned from the

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applicable public recording office, the Seller shall promptly deliver or cause
to be delivered to the Trustee or the Custodian on its behalf such original or
duplicate original lender's title policy (together with all riders thereto) upon
receipt thereof from the applicable title insurer, but in no event shall any
such delivery of the original or duplicate original lender's title policy be
made later than one year following the Closing Date; provided, however, in the
event the Seller is unable to deliver or cause to be delivered by such date the
original or duplicate original lender's title policy (together with all riders
thereto) because the related Mortgage has not been returned by the appropriate
recording office, the Seller shall deliver or cause to be delivered such
documents to the Trustee or the Custodian on its behalf as promptly as possible
upon receipt thereof and, in any event, within 720 days following the Closing
Date.

      Notwithstanding anything to the contrary in this Agreement, within thirty
days after the Closing Date, the Seller shall either (i) deliver or cause to be
delivered to the Trustee or the Custodian on its behalf the Mortgage File as
required pursuant to this Section 3.1 for each Delay Delivery Mortgage Loan or
(ii) (A) substitute or cause to be substituted a Substitute Mortgage Loan for
the Delay Delivery Mortgage Loan or (B) repurchase or cause to be repurchased
the Delay Delivery Mortgage Loan, which substitution or repurchase shall be
accomplished in the manner and subject to the conditions set forth in Section
4.1 (treating each Delay Delivery Mortgage Loan as a Deleted Mortgage Loan for
purposes of such Section 4.1), provided, however, that if the Seller fails to
deliver a Mortgage File for any Delay Delivery Mortgage Loan within the
thirty-day period provided in the prior sentence, the Seller shall use its best
reasonable efforts to effect or cause to be effected a substitution, rather than
a repurchase of, such Deleted Mortgage Loan and provided further that the cure
period provided for in Section 4.1 hereof shall not apply to the initial
delivery of the Mortgage File for such Delay Delivery Mortgage Loan, but rather
the Seller shall have five (5) Business Days to cure or cause to be cured such
failure to deliver.

                                   ARTICLE IV
                         Representations and Warranties

      Section 4.1 Representations and Warranties of the Seller. (a) The Seller
hereby represents and warrants to the Purchaser, as of the date of execution and
delivery hereof, that:

            (1)   The Seller is duly organized as a Kansas corporation and is
                  validly existing and in good standing under the laws of the
                  State of Kansas and is duly authorized and qualified to
                  transact any and all business contemplated by this Agreement
                  to be conducted by the Seller in any state in which a
                  Mortgaged Property is located or is otherwise not required
                  under applicable law to effect such qualification and, in any
                  event, is in compliance with the doing business laws of any
                  such state, to the extent necessary to ensure its ability to
                  enforce each Mortgage Loan and to perform any of its other
                  obligations under this Agreement in accordance with the terms
                  thereof.

            (2)   The Seller has the full corporate power and authority to sell
                  each Mortgage Loan, and to execute, deliver and perform, and
                  to enter into and consummate the transactions contemplated by
                  this Agreement and has duly authorized by all necessary
                  corporate action on the part of the Seller the execution,
                  delivery and performance of this Agreement; and this

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                  Agreement, assuming the due authorization, execution and
                  delivery thereof by the other parties thereto, constitutes a
                  legal, valid and binding obligation of the Seller, enforceable
                  against the Seller in accordance with its terms, except that
                  (a) the enforceability thereof may be limited by bankruptcy,
                  insolvency, moratorium, receivership and other similar laws
                  relating to creditors' rights generally and (b) the remedy of
                  specific performance and injunctive and other forms of
                  equitable relief may be subject to equitable defenses and to
                  the discretion of the court before which any proceeding
                  therefor may be brought.

            (3)   The execution and delivery of this Agreement by the Seller,
                  the sale of the Mortgage Loans by the Seller under this
                  Agreement, the consummation of any other of the transactions
                  contemplated by this Agreement, and the fulfillment of or
                  compliance with the terms thereof are in the ordinary course
                  of business of the Seller and will not (a) result in a
                  material breach of any term or provision of the charter or
                  by-laws of the Seller or (b) materially conflict with, result
                  in a material breach, violation or acceleration of, or result
                  in a material default under, the terms of any other material
                  agreement or instrument to which the Seller is a party or by
                  which it may be bound, or (c) constitute a material violation
                  of any statute, order or regulation applicable to the Seller
                  of any court, regulatory body, administrative agency or
                  governmental body having jurisdiction over the Seller; and the
                  Seller is not in breach or violation of any material indenture
                  or other material agreement or instrument, or in violation of
                  any statute, order or regulation of any court, regulatory
                  body, administrative agency or governmental body having
                  jurisdiction over it which breach or violation may materially
                  impair the Seller's ability to perform or meet any of its
                  obligations under this Agreement.

            (4)   No litigation is pending or, to the best of the Seller's
                  knowledge, threatened against the Seller that would prohibit
                  the execution or delivery of, or performance under, this
                  Agreement by the Seller.

            (5)   The Seller is a member of MERS in good standing, and will
                  comply in all material respects with the rules and procedures
                  of MERS in connection with the servicing of the MERS Mortgage
                  Loans for as long as such Mortgage Loans are registered with
                  MERS.

      (b)   The Seller hereby makes the representations and warranties set forth
            in Schedule B hereto to the Purchaser, as of the Closing Date, or if
            so specified therein, as of the Cut-off Date.

      (c)   Upon discovery by either of the parties hereto of a breach of a
            representation or warranty made pursuant to Schedule B hereto that
            materially and adversely affects the interests of the Purchaser in
            any Mortgage Loan, the party discovering such breach shall give
            prompt notice thereof to the other party. The Seller hereby
            covenants that within 90 days of the earlier of its discovery or its
            receipt of written notice from the Purchaser of a breach of any

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            representation or warranty made pursuant to Schedule B hereto which
            materially and adversely affects the interests of the Purchaser in
            any Mortgage Loan, it shall cure such breach in all material
            respects, and if such breach is not so cured, shall, (i) if such
            90-day period expires prior to the second anniversary of the Closing
            Date, remove such Mortgage Loan (a "Deleted Mortgage Loan") from the
            pool of mortgages listed on Schedule B hereto and substitute in its
            place a Substitute Mortgage Loan, in the manner and subject to the
            conditions set forth in this Section; or (ii) repurchase the
            affected Mortgage Loan or Mortgage Loans from the Purchaser at the
            Mortgage Loan Purchase Price in the manner set forth below. With
            respect to the representations and warranties described in this
            Section which are made to the best of the Seller's knowledge, if it
            is discovered by either the Seller or the Purchaser that the
            substance of such representation and warranty is inaccurate and such
            inaccuracy materially and adversely affects the value of the related
            Mortgage Loan or the interests of the Purchaser therein,
            notwithstanding the Seller's lack of knowledge with respect to the
            substance of such representation or warranty, such inaccuracy shall
            be deemed a breach of the applicable representation or warranty.

      With respect to any Substitute Mortgage Loan or Loans, the Seller shall
deliver to the Trustee or to the Custodian on its behalf the Mortgage Note, the
Mortgage, the related assignment of the Mortgage, and such other documents and
agreements as are required by Section 3.1, with the Mortgage Note endorsed and
the Mortgage assigned as required by Section 3.1. No substitution is permitted
to be made in any calendar month after the Determination Date for such month.
Scheduled Payments due with respect to Substitute Mortgage Loans in the month of
substitution will be retained by the Seller. Upon such substitution, the
Substitute Mortgage Loan or Loans shall be subject to the terms of this
Agreement in all respects, and the Seller shall be deemed to have made with
respect to such Substitute Mortgage Loan or Loans, as of the date of
substitution, the representations and warranties made pursuant to Schedule B
hereto with respect to such Mortgage Loan.

      It is understood and agreed that the obligation under this Agreement of
the Seller to cure, repurchase or replace any Mortgage Loan as to which a breach
has occurred and is continuing shall constitute the sole remedy against the
Seller respecting such breach available to the Purchaser on its behalf.

      The representations and warranties contained in this Agreement shall not
be construed as a warranty or guaranty by the Seller as to the future payments
by any Mortgagor.

      It is understood and agreed that the representations and warranties set
forth in this Section 4.1 shall survive the sale of the Mortgage Loans to the
Purchaser hereunder.

                                   ARTICLE V
                                  Miscellaneous

      Section 5.1 Transfer Intended as Sale. It is the express intent of the
parties hereto that the conveyance of the Mortgage Loans by the Seller to the
Purchaser be, and be construed as, an absolute sale thereof in accordance with
GAAP and for regulatory purposes. It is, further, not the intention of the
parties that such conveyances be deemed a pledge thereof by the Seller to the
Purchaser. However, in the event that, notwithstanding the intent of the
parties, the Mortgage Loans are held to be the property of the Seller or the
Purchaser, respectively, or if for any other reason this Agreement is held or
deemed to create a security interest in such assets, then (i) this Agreement

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shall be deemed to be a security agreement within the meaning of the Uniform
Commercial Code of the State of Texas and (ii) the conveyance of the Mortgage
Loans provided for in this Agreement shall be deemed to be an assignment and a
grant by the Seller to the Purchaser of a security interest in all of the
Mortgage Loans, whether now owned or hereafter acquired.

      The Seller and the Purchaser 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 Mortgage Loans, 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 Seller and the Purchaser shall arrange for filing any
Uniform Commercial Code continuation statements in connection with any security
interest granted hereby.

      Section 5.2 Seller's Consent to Assignment. The Seller hereby acknowledges
the Purchaser's right to assign, transfer and convey all of the Purchaser's
rights under this Agreement to a third party and that the representations and
warranties made by the Seller to the Purchaser pursuant to this Agreement will,
in the case of such assignment, transfer and conveyance, be for the benefit of
such third party. The Seller hereby consents to such assignment, transfer and
conveyance.

      Section 5.3 Specific Performance. Either party or its assignees may
enforce specific performance of this Agreement.

      Section 5.4 Notices. All notices, demands and requests that may be given
or that are required to be given hereunder shall be sent by United States
certified mail, postage prepaid, return receipt requested, to the parties at
their respective addresses as follows:

                      If to
                      the Purchaser:            165 Madison Avenue
                                                Memphis, Tennessee 38103
                                                Attn: Clyde A. Billings, Jr.

                      If to the Seller:         4000 Horizon Way
                                                Irving, Texas 75063
                                                Attn: Larry P. Cole

      Section 5.5 Choice of Law. This Agreement shall be construed in accordance
with and governed by the substantive laws of the State of Texas applicable to
agreements made and to be performed in the State of Texas and the obligations,
rights and remedies of the parties hereto shall be determined in accordance with
such laws.

                  [remainder of page intentionally left blank]

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<PAGE>

      IN WITNESS WHEREOF, the Purchaser and the Seller have caused their names
to be signed hereto by their respective officers thereunto duly authorized as of
the 29th day of December, 2004.

                             FIRST HORIZON HOME LOAN CORPORATION, as Seller

                             By:
                                ------------------------------------------------
                                Terry McCoy
                                Senior Vice President

                             FIRST TENNESSEE BANK NATIONAL
                             ASSOCIATION, as Purchaser

                             By:
                                ------------------------------------------------
                                Wade Walker
                                Senior Vice President - Asset Securitization

                                      -12-
<PAGE>

                                   SCHEDULE A

                              [BEGINS ON NEXT PAGE]

                      [Available Upon Request From Trustee]

<PAGE>

                                   SCHEDULE B

             Representations and Warranties as to the Mortgage Loans

      First Horizon Home Loan Corporation (the "Seller") hereby makes the
representations and warranties set forth in this Schedule B on which First
Tennessee Bank National Association (the "Purchaser") relies in accepting the
Mortgage Loans. Such representations and warranties speak as of the execution
and delivery of the Mortgage Loan Purchase Agreement, dated as of December 29,
2004 (the "MLPA"), between First Horizon Home Loan Corporation, as seller, and
the Purchaser and as of the Closing Date, or if so specified herein, as of the
Cut-off Date or date of origination of the Mortgage Loans, but shall survive the
sale, transfer, and assignment of the Mortgage Loans to the Purchaser and any
subsequent sale, transfer and assignment by the Purchaser to a third party.
Capitalized terms used but not otherwise defined in this Schedule B shall have
the meanings ascribed thereto in the MLPA.

            (1)   The information set forth on Schedule A to the MLPA, with
                  respect to each Mortgage Loan is true and correct in all
                  material respects as of the Closing Date.

            (2)   Each Mortgage is a valid and enforceable first lien on the
                  Mortgaged Property subject only to (a) the lien of
                  nondelinquent current real property taxes and assessments and
                  liens or interests arising under or as a result of any
                  federal, state or local law, regulation or ordinance relating
                  to hazardous wastes or hazardous substances and, if the
                  related Mortgaged Property is a unit in a condominium project
                  or Planned Unit Development, any lien for common charges
                  permitted by statute or homeowner association fees, (b)
                  covenants, conditions and restrictions, rights of way,
                  easements and other matters of public record as of the date of
                  recording of such Mortgage, such exceptions appearing of
                  record being generally acceptable to mortgage lending
                  institutions in the area wherein the related Mortgaged
                  Property is located or specifically reflected in the appraisal
                  made in connection with the origination of the related
                  Mortgage Loan, and (c) other matters to which like properties
                  are commonly subject which do not materially interfere with
                  the benefits of the security intended to be provided by such
                  Mortgage.

            (3)   Immediately prior to the assignment of the Mortgage Loans to
                  the Purchaser, the Seller had good title to, and was the sole
                  owner of, each Mortgage Loan free and clear of any pledge,
                  lien, encumbrance or security interest and had full right and
                  authority, subject to no interest or participation of, or
                  agreement with, any other party, to sell and assign the same
                  pursuant to this Agreement.

            (4)   As of the date of origination of each Mortgage Loan, there was
                  no delinquent tax or assessment lien against the related
                  Mortgaged Property.

            (5)   There is no valid offset, defense or counterclaim to any
                  Mortgage Note or Mortgage, including the obligation of the
                  Mortgagor to pay the unpaid principal of or interest on such
                  Mortgage Note.

                                      B-1
<PAGE>

            (6)   There are no mechanics' liens or claims for work, labor or
                  material affecting any Mortgaged Property which are or may be
                  a lien prior to, or equal with, the lien of such Mortgage,
                  except those which are insured against by the title insurance
                  policy referred to in item (11) below.

            (7)   To the best of the Seller's knowledge, no Mortgaged Property
                  has been materially damaged by water, fire, earthquake,
                  windstorm, flood, tornado or similar casualty (excluding
                  casualty from the presence of hazardous wastes or hazardous
                  substances, as to which the Seller makes no representation) so
                  as to affect adversely the value of the related Mortgaged
                  Property as security for such Mortgage Loan.

            (8)   Each Mortgage Loan at origination complied in all material
                  respects with applicable local, state and federal laws,
                  including, without limitation, usury, equal credit
                  opportunity, real estate settlement procedures,
                  truth-in-lending and disclosure laws and specifically
                  applicable predatory and abusive lending laws, or any
                  noncompliance does not have a material adverse effect on the
                  value of the related Mortgage Loan.

            (9)   No Mortgage Loan is a "high cost loan" as defined by the
                  specific applicable predatory and abusive lending laws.

            (10)  Except as reflected in a written document contained in the
                  related Mortgage File, the Seller has not modified the
                  Mortgage in any material respect; satisfied, cancelled or
                  subordinated such Mortgage in whole or in part; released the
                  related Mortgaged Property in whole or in part from the lien
                  of such Mortgage; or executed any instrument of release,
                  cancellation, modification or satisfaction with respect
                  thereto.

            (11)  A lender's policy of title insurance together with a
                  condominium endorsement and extended coverage endorsement, if
                  applicable, in an amount at least equal to the Cut-off Date
                  Principal Balance of each such Mortgage Loan or a commitment
                  (binder) to issue the same was effective on the date of the
                  origination of each Mortgage Loan, each such policy is valid
                  and remains in full force and effect.

            (12)  To the best of the Seller's knowledge, all of the improvements
                  which were included for the purpose of determining the
                  appraised value of the Mortgaged Property lie wholly within
                  the boundaries and building restriction lines of such
                  property, and no improvements on adjoining properties encroach
                  upon the Mortgaged Property, unless such failure to be wholly
                  within such boundaries and restriction lines or such
                  encroachment, as the case may be, does not have a material
                  effect on the value of such Mortgaged Property.

            (13)  To the best of the Seller's knowledge, as of the date of
                  origination of each Mortgage Loan, no improvement located on
                  or being part of the Mortgaged Property is in violation of any
                  applicable zoning law or regulation unless such violation
                  would not have a material adverse effect on the value of the

                                      B-2
<PAGE>

                  related Mortgaged Property. To the best of the Seller's
                  knowledge, all inspections, licenses and certificates required
                  to be made or issued with respect to all occupied portions of
                  the Mortgaged Property and, with respect to the use and
                  occupancy of the same, including but not limited to
                  certificates of occupancy and fire underwriting certificates,
                  have been made or obtained from the appropriate authorities,
                  unless the lack thereof would not have a material adverse
                  effect on the value of such Mortgaged Property.

            (14)  The Mortgage Note and the related Mortgage are genuine, and
                  each is the legal, valid and binding obligation of the maker
                  thereof, enforceable in accordance with its terms and under
                  applicable law.

            (15)  The proceeds of the Mortgage Loan have been fully disbursed
                  and there is no requirement for future advances thereunder.

            (16)  The related Mortgage contains customary and enforceable
                  provisions which render the rights and remedies of the holder
                  thereof adequate for the realization against the Mortgaged
                  Property of the benefits of the security, including, (i) in
                  the case of a Mortgage designated as a deed of trust, by
                  trustee's sale, and (ii) otherwise by judicial foreclosure.

            (17)  With respect to each Mortgage constituting a deed of trust, a
                  trustee, duly qualified under applicable law to serve as such,
                  has been properly designated and currently so serves and is
                  named in such Mortgage, and no fees or expenses are or will
                  become payable by the holder of the Mortgage to the trustee
                  under the deed of trust, except in connection with a trustee's
                  sale after default by the Mortgagor.

            (18)  As of the Closing Date, the improvements upon each Mortgaged
                  Property are covered by a valid and existing hazard insurance
                  policy with a generally acceptable carrier that provides for
                  fire and extended coverage and coverage for such other hazards
                  as are customarily required by institutional single family
                  mortgage lenders in the area where the Mortgaged Property is
                  located, and the Seller has received no notice that any
                  premiums due and payable thereon have not been paid; the
                  Mortgage obligates the Mortgagor thereunder to maintain all
                  such insurance including flood insurance at the Mortgagor's
                  cost and expense. Anything to the contrary in this item (18)
                  notwithstanding, no breach of this item (18) shall be deemed
                  to give rise to any obligation of the Seller to repurchase or
                  substitute for such affected Mortgage Loan or Loans so long as
                  the Seller maintains a blanket policy.

            (19)  If at the time of origination of each Mortgage Loan, related
                  the Mortgaged Property was in an area then identified in the
                  Federal Register by the Federal Emergency Management Agency as
                  having special flood hazards, a flood insurance policy in a
                  form meeting the then-current requirements of the Flood
                  Insurance Administration is in effect with respect to such
                  Mortgaged Property with a generally acceptable carrier.

                                      B-3
<PAGE>

            (20)  To the best of the Seller's knowledge, there is no proceeding
                  pending or threatened for the total or partial condemnation of
                  any Mortgaged Property, nor is such a proceeding currently
                  occurring.

            (21)  To best of the Seller's knowledge, there is no material event
                  which, with the passage of time or with notice and the
                  expiration of any grace or cure period, would constitute a
                  material non-monetary default, breach, violation or event of
                  acceleration under the Mortgage or the related Mortgage Note;
                  and the Seller has not waived any material non-monetary
                  default, breach, violation or event of acceleration.

            (22)  Any leasehold estate securing a Mortgage Loan has a stated
                  term at least as long as the term of the related Mortgage
                  Loan.

            (23)  Each Mortgage Loan was selected from among the outstanding
                  adjustable-rate one- to four-family mortgage loans in the
                  Seller's portfolio at the Closing Date as to which the
                  representations and warranties made with respect to the
                  Mortgage Loans set forth in this Schedule B can be made. No
                  such selection was made in a manner intended to adversely
                  affect the interests of the Certificateholders.

            (24)  The Mortgage Loans provide for the full amortization of the
                  amount financed over a series of monthly payments.

            (25)  At origination, substantially all of the Mortgage Loans in the
                  Mortgage Pools had stated terms to maturity of 30 years.

            (26)  Scheduled monthly payments made by the Mortgagors on the
                  Mortgage Loans either earlier or later than their Due Dates
                  will not affect the amortization schedule or the relative
                  application of the payments to principal and interest.

            (27)  The Mortgage Loans may be prepaid at any time by the related
                  Mortgagors without penalty.

            (28)  Certain of the Mortgage Loans in the Mortgage Pools are jumbo
                  mortgage loans that have Stated Principal Balances at
                  origination that exceed the then applicable limitations for
                  purchase by Fannie Mae and Freddie Mac.

            (29)  Each Mortgage Loan in Pool I was originated on or after June
                  24, 2004. Each Mortgage Loan in Pool II was originated on or
                  after March 26, 2004. Each Mortgage Loan in Pool III was
                  originated on or after July 15, 2004.

            (30)  The latest stated maturity date of any Mortgage Loan in Pool I
                  is January 1, 2035, and the earliest stated maturity date of
                  any Mortgage Loan in Pool I is July 1, 2034. The latest stated
                  maturity date of any Mortgage Loan in Pool II is January 1,
                  2035, and the earliest stated maturity date of any Mortgage
                  Loan in Pool II is May 1, 2014. The latest stated maturity
                  date of any Mortgage Loan in Pool III is January 1, 2035, and
                  the earliest stated maturity date of any Mortgage Loan in Pool
                  III is August 1, 2034.

                                      B-4
<PAGE>

            (31)  No Mortgage Loan was delinquent more than 30 days as of the
                  Cut-off Date.

            (32)  No Mortgage Loan had a Loan-to-Value Ratio at origination of
                  more than 95%. Generally, each Mortgage Loan with a
                  Loan-to-Value Ratio at origination of greater than 80% is
                  covered by a Primary Insurance Policy issued by a mortgage
                  insurance company that is acceptable to Fannie Mae or Freddie
                  Mac.

            (33)  Each Mortgage Loan constitutes a "qualified mortgage" within
                  the meaning of Section 860G(a)(3) of the Code.

            (34)  No Mortgage Loan is a "high cost loan" as defined by the
                  specific applicable predatory and abusive lending laws. In
                  addition, no Mortgage Loan is a "High Cost Loan" or a "Covered
                  Loan", as applicable (as such terms are defined in the then
                  current Standard & Poor's LEVELS(R) Glossary which is now
                  Version 5.6 Revised, Appendix E) and no Mortgage Loan
                  originated on or after October 1, 2002 through March 6, 2003
                  is governed by the Georgia Fair Lending Act.

            (35)  Appraisal form 1004 or form 2055 with an interior inspection
                  for first lien mortgage loans has been obtained for all
                  related mortgaged properties, other than condominiums,
                  investment properties, two to four unit properties and exempt
                  properties, for which appraisal form 1004 or form 2055 has not
                  been obtained.

                  Appraisal form 704, 2065 or 2055 with an exterior only
                  inspection for junior lien mortgages combined with first lien
                  mortgages (including home equity lines of credit) has been
                  obtained for all related mortgaged properties, other than
                  condominiums, investment properties, two to four unit
                  properties and exempt properties, for which appraisal form
                  1004 or form 2055 has not been obtained. Appraisal form 704,
                  2065 or 2055 with an exterior only inspection for all other
                  junior lien mortgages has been obtained for all related
                  mortgaged properties, other than those related mortgaged
                  properties that qualify for an Automated Valuation Model.

                                      B-5MORTGAGE LOAN PURCHASE AGREEMENT

      THIS MORTGAGE LOAN PURCHASE AGREEMENT dated as of December 29, 2004 by and
between FIRST TENNESSEE BANK NATIONAL ASSOCIATION (the "Seller"), and FIRST
HORIZON ASSET SECURITIES INC., a Delaware corporation (the "Purchaser").

      WHEREAS, the Seller owns certain Mortgage Loans (as hereinafter defined)
which Mortgage Loans are more particularly listed and described in Schedule A
attached hereto and made a part hereof.

      WHEREAS, the Seller and the Purchaser wish to set forth the terms pursuant
to which the Mortgage Loans, excluding the servicing rights thereto, are to be
sold by the Seller to the Purchaser.

      WHEREAS, First Tennessee Mortgage Services, Inc. ("FTMSI") owns the
servicing rights to the Mortgage Loans pursuant to the Servicing Rights Transfer
and Subservicing Agreement (as hereinafter defined).

      WHEREAS, the Seller has engaged FTMSI to service the mortgage Loans
pursuant to the Servicing Agreement (as hereinafter defined).

      NOW, THEREFORE, in consideration of the foregoing, other good and valuable
consideration, and the mutual terms and covenants contained herein, the parties
hereto agree as follows:

                                   ARTICLE I
                                   Definitions

      Agreement: This Mortgage Loan Purchase Agreement, as the same may be
amended, supplemented or otherwise modified from time to time in accordance with
the terms hereof.

      Closing Date: December 29, 2004.

      Cooperative Corporation: The entity that holds title (fee or an acceptable
leasehold estate) to the real property and improvements constituting the
Cooperative Property and which governs the Cooperative Property, which
Cooperative Corporation must qualify as a Cooperative Housing Corporation under
Section 216 of the Code.

      Coop Shares: Shares issued by a Cooperative Corporation.

      Cooperative Loan: Any Mortgage Loan secured by Coop Shares and a
Proprietary Lease.

      Cooperative Property: The real property and improvements owned by the
Cooperative Corporation, including the allocation of individual dwelling units
to the holders of the Coop Shares of the Cooperative Corporation.

      Cooperative Unit: A single family dwelling located in a Cooperative
Property.
<PAGE>

      Custodian: First Tennessee Bank National Association, and its successors
and assigns, as custodian under the Custodial Agreement dated as of December 29,
2004 by and among The Bank of New York, as trustee, First Horizon Home Loan
Corporation, as master servicer, and the Custodian.

      Cut-Off Date: December 1, 2004.

      Delay Delivery Mortgage Loans: The Mortgage Loans for which all or a
portion of a related Mortgage File is not delivered to the Trustee or to the
Custodian on its behalf on the Closing Date. The number of Delay Delivery
Mortgage Loans shall not exceed 25% of the aggregate number of Mortgage Loans as
of the Closing Date.

      FHHLC: First Horizon Home Loan Corporation, a Kansas corporation, in its
capacity as the seller of the Mortgage Loans pursuant to MLPA I.

      GAAP: Generally applied accounting principals as in effect from time to
time in the United States of America.

      MLPA I: The mortgage loan purchase agreement, dated as of December 29,
2004, between First Horizon Home Loan Corporation, as seller, and First
Tennessee Bank National Association, as purchaser, as related to the transfer,
sale and conveyance of the Mortgage Loans.

      MERS: Mortgage Electronic Registration Systems, Inc., a corporation
organized and existing under the laws of the State of Delaware, or any successor
thereto.

      MERS Mortgage Loan: Any Mortgage Loan registered with MERS on the MERS
System.

      MERS (R) System: The system of recording transfers of mortgages
electronically maintained by MERS.

      MIN: The Mortgage Identification Number for any MERS Mortgage Loan.

      MOM Loan: Any Mortgage Loan as to which MERS is acting as mortgagee,
solely as nominee for the originator of such Mortgage Loan and its successors
and assigns.

      Mortgage: The mortgage, deed of trust or other instrument creating a first
lien on the property securing a Mortgage Note.

      Mortgage File: The mortgage documents listed in Section 3.1 pertaining to
a particular Mortgage Loan and any additional documents required to be added to
the Mortgage File pursuant to this Agreement.

      Mortgage Loans: The mortgage loans transferred, sold and conveyed by the
Seller to the Purchaser, pursuant to this Agreement.

      Mortgage Note: The original executed note or other evidence of
indebtedness evidencing the indebtedness of a Mortgagor under a Mortgage Loan.

                                      -2-
<PAGE>

      Mortgaged Property: The underlying property securing a Mortgage Loan,
which, with respect to a Cooperative Loan, is the related Coop Shares and
Proprietary Lease.

      Mortgagor: The obligor(s) on a Mortgage Note.

      Proprietary Lease: With respect to any Cooperative Unit, a lease or
occupancy agreement between a Cooperative Corporation and a holder of related
Coop Shares.

      Purchase Price: $148,378,386.62.

      Purchaser: First Horizon Asset Securities Inc., a Delaware corporation, in
its capacity as purchaser of the Mortgage Loans from the Seller pursuant to this
Agreement.

      Recognition Agreement: With respect to any Cooperative Loan, an agreement
between the Cooperative Corporation and the originator of such Mortgage Loan
which establishes the rights of such originator in the Cooperative Property.

      Security Agreement: The security agreement with respect to a Cooperative
Loan.

      Seller: First Tennessee Bank National Association, and its successors and
assigns, in its capacity as seller of the Mortgage Loans pursuant to this
Agreement.

      Servicing Agreement: The servicing agreement, dated as of November 26,
2002 by and between First Tennessee Bank National Association and its assigns,
as owner, and First Tennessee Mortgage Services, Inc., as servicer.

      Servicing Rights Transfer and Subservicing Agreement: The servicing rights
transfer and subservicing agreement, dated as of November 26, 2002 by and
between First Horizon Home Loan Corporation, as transferor and subservicer, and
First Tennessee Mortgage Services, Inc., as transferee and servicer.

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

                                   ARTICLE II
                                Purchase and Sale

      Section 2.1 Purchase Price. In consideration for the payment to it of the
Purchase Price on the Closing Date, pursuant to written instructions delivered
by the Seller to the Purchaser on the Closing Date, the Seller does hereby
transfer, sell and convey to the Purchaser on the Closing Date, but with effect
from the Cut-off Date, without recourse, (i) all right, title and interest of
the Seller in the Mortgage Loans, excluding the servicing rights thereto, and
all property securing such Mortgage Loans, including all interest and principal
received or receivable by the Seller with respect to the Mortgage Loans on or
after the Cut-off Date and all interest and principal payments on the Mortgage
Loans received on or prior to the Cut-off Date in respect of installments of
interest and principal due thereafter, but not including payments of principal
and interest due and payable on the Mortgage Loans on or before the Cut-off
Date, (ii) all of the Seller's rights as Purchaser under MLPA I including,
without limitation, the rights of the Seller to require FHHLC to cure breaches
of representations and warranties with respect to the Mortgage Loans as provided
thereunder, (iii) all right, title and interest of the Seller in, to and under
the Servicing Agreement, and (iv) all proceeds from the foregoing. Items (i)
through (iv) in the preceding sentence are herein referred to collectively as
"Mortgage Assets."

                                      -3-
<PAGE>

      Section 2.2 Timing. The sale of the Mortgage Assets hereunder shall take
place on the Closing Date.

                                  ARTICLE III
                             Conveyance and Delivery

      Section 3.1 Delivery of Mortgage Files. In connection with the transfer
and assignment set forth in Section 2.1 above, the Seller has delivered or
caused to be delivered to the Trustee or to the Custodian on its behalf (or, in
the case of the Delay Delivery Mortgage Loans, will deliver or cause to be
delivered to the Trustee or to the Custodian on its behalf within thirty (30)
days following the Closing Date) the following documents or instruments with
respect to each Mortgage Loan so assigned (collectively, the "Mortgage Files"):

      (a)   (1) the original Mortgage Note endorsed by manual or facsimile
            signature in blank in the following form: "Pay to the order of
            ________________, without recourse," with all intervening
            endorsements showing a complete chain of endorsement from the
            originator to the Person endorsing the Mortgage Note (each such
            endorsement being sufficient to transfer all right, title and
            interest of the party so endorsing, as noteholder or assignee
            thereof, in and to that Mortgage Note); or

            (2)   with respect to any Lost Mortgage Note, a lost note affidavit
                  from the Seller stating that the original Mortgage Note was
                  lost or destroyed, together with a copy of such Mortgage Note;

      (b)   except as provided below and for each Mortgage Loan that is not a
            MERS Mortgage Loan, the original recorded Mortgage or a copy of such
            Mortgage certified by the Seller as being a true and complete copy
            of the Mortgage, and in the case of each MERS Mortgage Loan, the
            original Mortgage, noting the presence of the MIN of the Mortgage
            Loans and either language indicating that the Mortgage Loan is a MOM
            Loan if the Mortgage Loan is a MOM Loan or if the Mortgage Loan was
            not a MOM Loan at origination, the original Mortgage and the
            assignment thereof to MERS, with evidence of recording indicated
            thereon, or a copy of the Mortgage certified by the public recording
            office in which such Mortgage has been recorded;

      (c)   a duly executed assignment of the Mortgage in blank (which may be
            included in a blanket assignment or assignments), together with,
            except as provided below, all interim recorded assignments of such
            mortgage (each such assignment, when duly and validly completed, to
            be in recordable form and sufficient to effect the assignment of and
            transfer to the assignee thereof, under the Mortgage to which the
            assignment relates); provided that, if the related Mortgage has not
            been returned from the applicable public recording office, such
            assignment of the Mortgage may exclude the information to be
            provided by the recording office;

                                      -4-
<PAGE>

      (d)   the original or copies of each assumption, modification, written
            assurance or substitution agreement, if any;

      (e)   either the original or duplicate original title policy (including
            all riders thereto) with respect to the related Mortgaged Property,
            if available, provided that the title policy (including all riders
            thereto) will be delivered as soon as it becomes available, and if
            the title policy is not available, and to the extent required
            pursuant to the second paragraph below or otherwise in connection
            with the rating of the Certificates, a written commitment or interim
            binder or preliminary report of the title issued by the title
            insurance or escrow company with respect to the Mortgaged Property,
            and

      (f)   in the case of a Cooperative Loan, the originals of the following
            documents or instruments:

      (1)   The Coop Shares, together with a stock power in blank;

            (2)   The executed Security Agreement;

            (3)   The executed Proprietary Lease;

            (4)   The executed Recognition Agreement; (5) The executed UCC-1
                  financing statement with evidence of recording thereon which
                  have been filed in all places required to perfect the Seller's
                  interest in the Coop Shares and the Proprietary Lease; and

            (6)   Executed UCC-3 financing statements or other appropriate UCC
                  financing statements required by state law, evidencing a
                  complete and unbroken line from the mortgagee to the Trustee
                  with evidence of recording thereon (or in a form suitable for
                  recordation).

                                   ARTICLE IV
                         Representations and Warranties

      Section 4.1 Representations and Warranties of the Seller.

      (a)   The Seller hereby represents and warrants to the Purchaser, as of
            the date of execution and delivery hereof, that:

            (1)   The Seller is duly organized as a national banking association
                  and is validly existing under the laws of the United States of
                  America and is duly authorized and qualified to transact any
                  and all business contemplated by this Agreement to be
                  conducted by the Seller in any state in which a Mortgaged
                  Property is located or is otherwise not required under

                                      -5-
<PAGE>

                  applicable law to effect such qualification and, in any event,
                  is in compliance with the doing business laws of any such
                  state, to the extent necessary to ensure its ability to
                  enforce each Mortgage Loan and to perform any of its other
                  obligations under this Agreement in accordance with the terms
                  thereof.

            (2)   The Seller has the requisite power and authority to sell each
                  Mortgage Loan, and to execute, deliver and perform, and to
                  enter into and consummate the transactions contemplated by
                  this Agreement and has duly authorized by all necessary action
                  on the part of the Seller the execution, delivery and
                  performance of this Agreement; and this Agreement, assuming
                  the due authorization, execution and delivery thereof by the
                  other parties thereto, constitutes a legal, valid and binding
                  obligation of the Seller, enforceable against the Seller in
                  accordance with its terms, except that (a) the enforceability
                  thereof may be limited by bankruptcy, insolvency, moratorium,
                  receivership and other similar laws relating to creditors'
                  rights generally or of creditors of depository institutions,
                  the accounts of which are insured by the FDIC, and (b) the
                  remedy of specific performance and injunctive and other forms
                  of equitable relief may be subject to equitable defenses and
                  to the discretion of the court before which any proceeding
                  therefor may be brought.

            (3)   The execution and delivery of this Agreement by the Seller,
                  the sale of the Mortgage Loans by the Seller under this
                  Agreement, the consummation of any other of the transactions
                  contemplated by this Agreement, and the fulfillment of or
                  compliance with the terms thereof are in the ordinary course
                  of business of the Seller and will not (a) result in a
                  material breach of any term or provision of the charter or
                  by-laws of the Seller or (b) materially conflict with, result
                  in a material breach, violation or acceleration of, or result
                  in a material default under, the terms of any other material
                  agreement or instrument to which the Seller is a party or by
                  which it may be bound, or (c) constitute a material violation
                  of any statute, order or regulation applicable to the Seller
                  of any court, regulatory body, administrative agency or
                  governmental body having jurisdiction over the Seller, other
                  than such conflicts, breaches, violations, accelerations or
                  defaults which, individually or on a cumulative basis, would
                  not have a material adverse effect on the Seller and its
                  subsidiaries, taken as a whole, or the consummation of the
                  transactions contemplated by this Agreement; and the Seller is
                  not in breach or violation of any material indenture or other
                  material agreement or instrument, or in violation of any
                  statute, order or regulation of any court, regulatory body,
                  administrative agency or governmental body having jurisdiction
                  over it which breach or violation may materially impair the
                  Seller's ability to perform or meet any of its obligations
                  under this Agreement.

            (4)   No litigation is pending or, to the best of the Seller's
                  knowledge, threatened against the Seller that would prohibit
                  the execution or delivery of, or performance under, this
                  Agreement by the Seller.

      (b)   The Seller hereby assigns, transfers and conveys to the Purchaser
            all of its rights with respect to the Mortgage Loans including,
            without limitation, the representations and warranties of FHHLC made

                                      -6-
<PAGE>

            pursuant to MLPA I, together with all rights of the Seller to
            require FHHLC to cure any breach thereof or to repurchase or
            substitute for any affected Mortgage Loan in accordance with MLPA I.

      It is understood and agreed that the obligation under MLPA I of FHHLC to
cure, repurchase or replace any Mortgage Loan as to which a breach has occurred
and is continuing shall constitute the sole remedy, which may be enforced solely
against FHHLC and not the Seller, respecting such breach available to the
Purchaser on its behalf.

      The representations and warranties contained in this Agreement shall not
be construed as a warranty or guaranty by the Seller as to the future payments
by any Mortgagor.

      It is understood and agreed that the representations and warranties set
forth in this Section 4.1 shall survive the sale of the Mortgage Loans to the
Purchaser hereunder.

                                   ARTICLE V
                                  Miscellaneous

      Section 5.1 Transfer Intended as Sale. It is the express intent of the
parties hereto that the conveyance of the Mortgage Loans by the Seller to the
Purchaser be, and be construed as, an absolute sale thereof in accordance with
GAAP and for regulatory purposes. It is, further, not the intention of the
parties that such conveyances be deemed a pledge thereof by the Seller to the
Purchaser. However, in the event that, notwithstanding the intent of the
parties, the Mortgage Loans are held to be the property of the Seller or the
Purchaser, respectively, 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 Texas and (ii) the conveyance of the Mortgage
Loans provided for in this Agreement shall be deemed to be an assignment and a
grant by the Seller to the Purchaser of a security interest in all of the
Mortgage Loans, whether now owned or hereafter acquired.

      The Seller and the Purchaser 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 Mortgage Loans, 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 Seller and the Purchaser shall arrange for filing any
Uniform Commercial Code continuation statements in connection with any security
interest granted hereby.

      Section 5.2 Seller's Consent to Assignment. The Seller hereby acknowledges
the Purchaser's right to assign, transfer and convey all of the Purchaser's
rights under this Agreement to a third party and that the representations and
warranties made by FHHLC to the Seller pursuant to MLPA I will, in the case of
such assignment, transfer and conveyance, be for the benefit of such third
party. The Seller hereby consents to such assignment, transfer and conveyance.

      Section 5.3 Specific Performance. Either party or its assignees may
enforce specific performance of this Agreement.

                                      -7-
<PAGE>

      Section 5.4 Notices. All notices, demands and requests that may be given
or that are required to be given hereunder shall be sent by United States
certified mail, postage prepaid, return receipt requested, to the parties at
their respective addresses as follows:

               If to the Purchaser:               4000 Horizon Way
                                                  Irving, Texas 75063
                                                  Attn: Larry P. Cole

               If to the Seller:                  165 Madison Avenue
                                                  Memphis, Tennessee 38103
                                                  Attn: Clyde A. Billings, Jr.

      Section 5.5 Choice of Law. This Agreement shall be construed in accordance
with and governed by the substantive laws of the State of Texas applicable to
agreements made and to be performed in the State of Texas and the obligations,
rights and remedies of the parties hereto shall be determined in accordance with
such laws.

      Section 5.6 Acknowledgment of FHHLC. FHHLC hereby acknowledges the
provisions of this Agreement, including the duties of FHHLC created hereunder
and the assignment of the representations and warranties made by FHHLC to the
Seller pursuant to MLPA I.

                                      -8-
<PAGE>

      IN WITNESS WHEREOF, the Purchaser and the Seller have caused their names
to be signed hereto by their respective officers thereunto duly authorized as of
the 29th day of December, 2004.

                             FIRST TENNESSEE BANK NATIONAL
                             ASSOCIATION, as Seller

                             By:
                                ------------------------------------------------
                                Wade Walker
                                Senior Vice President

                             FIRST HORIZON ASSET SECURITIES INC., as Purchaser

                             By:
                                ------------------------------------------------
                                Alfred Chang
                                Vice President

The foregoing agreement is hereby acknowledged and accepted as of the date first
above written.

FIRST HORIZON HOME LOAN CORPORATION,
in its capacity as the seller pursuant to
MLPA I

By:
   -----------------------------------
   Terry McCoy
   Senior Vice President

                                      -9-
<PAGE>

                                   SCHEDULE A

                              [BEGINS ON NEXT PAGE]

                      [Available Upon Request From Trustee]

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