Document:

Unassociated Document

     

    EXHIBIT
      4.2

    
       

       

       

       
ARGENT
      SECURITIES INC.

     

    $1,659,277,000
      (Approximate)

    Asset-Backed
      Pass-Through Certificates

    Argent
      Securities Inc.

    Series
      2006-M2

    

     

    August
      17, 2006

     

    UNDERWRITING
      AGREEMENT

     

    

    
      	
              J.P.
                Morgan Securities Inc.

              as
                Representative of the several Underwriters

              270
                Park Avenue 

              New
                York, NY 10017

            	 

    

    

    Ladies
      and Gentlemen:

     

    Argent
      Securities Inc. (the “Depositor”), a Delaware corporation, has authorized the
      issuance and sale of Argent Securities Inc., Asset-Backed Pass-Through
      Certificates, Series 2006-M2 (the “Certificates”). The Certificates are
      designated as (i) the Class A-1 Certificates, the Class A-2A Certificates,
      the
      Class A-2B Certificates, the Class A-2C Certificates and the Class A-2D
      Certificates (collectively, the “Class A Certificates”) and (ii) the Class M-1
      Certificates, the Class M-2 Certificates, the Class M-3 Certificates, the Class
      M-4 Certificates, the Class M-5 Certificates, the Class M-6 Certificates, the
      Class M-7 Certificates, the Class M-8 Certificates, the Class M-9 Certificates
      and the Class M-10 Certificates (collectively, the “Offered Mezzanine
      Certificates”; together with the Class A Certificates, the “Underwritten
      Certificates”). Also to be issued are the Class M-11 Certificates, the Class CE
      Certificates, the Class P Certificates, the Class R Certificates and the Class
      R-X Certificates (collectively, the “Non-Offered Certificates”). The
      Underwritten Certificates and the Non-Offered Certificates are referred to
      together as the “Certificates.”

     

    Only
      the
      Underwritten Certificates are being purchased by the underwriters named in
      Schedule A hereto (the “Underwriters”), and the Underwriters severally are
      purchasing only the Underwritten Certificates set forth opposite their names
      in
      Schedule A, except that the amounts purchased by the Underwriters may change
      in
      accordance with Section 10 of this Agreement. J.P. Morgan Securities Inc. is
      acting as representative of the several Underwriters and, in such capacity,
      is
      hereinafter referred to as the “Representative.” If only one underwriter is
      named in Schedule A, the terms “Underwriter,” “Underwriters” and
“Representative” shall refer to that named underwriter.

     

    The
      Certificates will be issued under a Pooling and Servicing Agreement, dated
      as of
      August 1, 2006 (the “Pooling and Servicing Agreement”), among the Depositor as
      depositor, Ameriquest Mortgage Company as master servicer (in such capacity,
      the
“Master Servicer”) and Deutsche Bank National Trust Company as trustee (in such
      capacity, the “Trustee”). Capitalized but undefined terms shall have the
      meanings set forth in the Pooling and Servicing Agreement.

     

    The
      Certificates will evidence fractional undivided interests in the Trust (the
      “Trust”) formed pursuant to the Pooling and Servicing Agreement. The assets of
      the Trust will include, among other things, a segregated pool (the “Mortgage
      Pool”) of certain adjustable-rate and fixed-rate, conventional, one- to
      four-family residential mortgage loans (collectively, the “Mortgage Loans”), the
      Master Servicer Prepayment Charge Payment Amounts, the Net WAC Rate Carryover
      Reserve Account and the Swap Account (including any payments made under the
      Swap
      Administration Agreement deposited in the Trust) and such amounts as may be
      held
      by the Trustee in any other accounts held by the Trustee for the Trust. A form
      of the Pooling and Servicing Agreement has been filed as an exhibit to the
      Registration Statement.

     

    The
      Underwritten Certificates are more fully described in a Registration Statement
      which the Depositor has furnished to the Underwriters.

     

    Pursuant
      to the Mortgage Loan Purchase Agreement, dated the date of this Agreement (the
      “Mortgage Loan Purchase Agreement”), between Ameriquest Mortgage Company (in
      such capacity, the “Seller”) and the Depositor, the Seller will sell to the
      Depositor all of its right, title and interest in and to the Mortgage Loans,
      including the scheduled principal balances of the Mortgage Loans as of the
      Cut-off Date and interest due after the Cut-off Date. Pursuant to the Pooling
      and Servicing Agreement, the Depositor will sell to the Trust all of its right,
      title and interest in and to the Mortgage Loans, including the scheduled
      principal balances of the Mortgage Loans as of the Cut-off Date and interest
      due
      after the Cut-off Date.

     

    SECTION
      1.  Representations
      and Warranties of the Depositor.
      The
      Depositor represents and warrants to, and agrees with the Underwriters that
      as
      of the date of the Preliminary Prospectus, as of the date of the Prospectus,
      and
      as of the Closing Date:

     

    (a)  A
      Registration Statement on Form S-3 (No. 333-131895) relating to the Underwritten
      Certificates has (i) been prepared by the Depositor in conformity with the
      requirements of the Securities Act of 1933, as amended (the “Securities Act”),
      and the rules and regulations (the “Rules and Regulations”) of the United States
      Securities and Exchange Commission (the “Commission”) thereunder, (ii) been
      filed with the Commission under the Securities Act and (iii) become effective
      and is still effective as of the date hereof under the Securities Act. Copies
      of
      such Registration Statement have been delivered by the Depositor to the
      Underwriters. As used in this Agreement, “Effective Time” means the date and the
      time as of which such Registration Statement, or the most recent post-effective
      amendment thereto, if any, was declared effective by the Commission; “Effective
      Date” means the date of the Effective Time; “Registration Statement” means such
      registration statement, at the Effective Time, including any documents
      incorporated by reference therein at such time; “Base Prospectus” means such
      final prospectus dated March 31, 2006 and “Prospectus Supplement” means the
      final prospectus supplement relating to the Underwritten Certificates, to be
      filed with the Commission pursuant to paragraph (2), (3) or (5) of Rule 424(b)
      of the Rules and Regulations. “Prospectus” means the Base Prospectus together
      with the Prospectus Supplement. The Depositor has prepared a Free Writing
      Prospectus, dated August 15, 2006, that contains substantially all information
      that will appear in the Prospectus Supplement and including the Static Pool
      Information referred to in the Free Writing Prospectus, to the extent that
      such
      information is known at that time (such Free Writing Prospectus together with
      the Base Prospectus, the “Preliminary Prospectus”). Reference made herein to the
      Preliminary Prospectus or the Prospectus shall be deemed to refer to and include
      any documents incorporated by reference therein pursuant to Item 12 of Form
      S-3
      under the Securities Act, as of the date of the Prospectus and any reference
      to
      any amendment or supplement to the Preliminary Prospectus or the Prospectus
      shall be deemed to refer to and include any document filed under the Securities
      Exchange Act of 1934, as amended (the “Exchange Act”), after the date of the
      Preliminary Prospectus or the Prospectus, as applicable, and incorporated by
      reference in the Preliminary Prospectus or the Prospectus, as applicable, and
      any reference to any amendment to the Registration Statement shall be deemed
      to
      include any report of the Depositor filed with the Commission pursuant to
      Section 13(a) or 15(d) of the Exchange Act after the Effective Time that is
      incorporated by reference in the Registration Statement. The Commission has
      not
      issued any order preventing or suspending the use of the Prospectus or the
      Preliminary Prospectus or the effectiveness of the Registration Statement and
      no
      proceedings for such purpose are pending or, to the Depositor’s knowledge,
      threatened by the Commission. There are no contracts or documents of the
      Depositor which are required to be filed as exhibits to the Registration
      Statement pursuant to the Securities Act or the Rules and Regulations which
      have
      not been so filed or incorporated by reference therein on or prior to the
      Effective Date of the Registration Statement other than such documents or
      materials, if any, as any Underwriter delivers to the Depositor pursuant to
      Section 5 hereof for filing on Form 8-K. The conditions for use of Form S-3,
      as
      set forth in the General Instructions thereto, have been satisfied.

     

    (b)  The
      Registration Statement, the Preliminary Prospectus, the Prospectus and the
      Static Pool Information conform, and any further amendments or supplements
      to
      the Registration Statement, the Preliminary Prospectus and the Prospectus will
      conform, when they become effective, are filed with the Commission or as of
      the
      date of the Contract of Sale, as the case may be, in all respects to the
      requirements of the Securities Act and the Rules and Regulations. The
      Registration Statement, as of the Effective Date thereof, and any amendment
      thereto, did not contain an untrue statement of a material fact or omit to
      state
      a material fact required to be stated therein or necessary to make the
      statements therein not misleading. The Preliminary Prospectus, as amended or
      supplemented, as of its date and as of the date of the Contract of Sale, and
      the
      Prospectus, as amended or supplemented, as of its date and as of the Closing
      Date, and the Static Pool Information, as of the date of the Contract of Sale
      and as of the Closing Date, do not and will not contain any untrue statement
      of
      a material fact or omit to state a material fact necessary in order to make
      the
      statements therein, in light of the circumstances under which they were made,
      not misleading; provided that no representation or warranty is made as to (i)
      information contained in or omitted from the Registration Statement, the
      Preliminary Prospectus or the Prospectus in reliance upon and in conformity
      with
      written information furnished to the Depositor in writing by any Underwriter
      through the Representative expressly for use therein as set forth in Exhibit
      A
      hereto (the “Underwriters’ Information”), and (ii) any Excluded Information (as
      defined in Section 8(a)(i) below).

     

    (c)  The
      documents incorporated by reference in the Preliminary Prospectus or the
      Prospectus, as applicable, when they became effective, were filed with the
      Commission or as of the date of the Contract of Sale, as the case may be,
      conformed in all material respects to the requirements of the Securities Act
      or
      the Exchange Act, as applicable, and the rules and regulations of the Commission
      thereunder; and any further documents so filed and incorporated by reference
      in
      the Prospectus, when such documents become effective, are filed with the
      Commission or as of the date of the Contract of Sale, as the case may be, will
      conform in all material respects to the requirements of the Securities Act
      or
      the Exchange Act, as applicable, and the rules and regulations of the Commission
      thereunder.

     

    (d)  The
      Depositor has been duly incorporated and is validly existing as a corporation
      in
      good standing under the laws of its jurisdiction of incorporation and is in
      good
      standing as a foreign corporation in each jurisdiction in which its ownership
      or
      lease of property or the conduct of its business so requires such standing.
      The
      Depositor has all power and authority necessary to own or hold its properties,
      to conduct the business in which it is engaged and to enter into and perform
      its
      obligations under this Agreement, the Mortgage Loan Purchase Agreement and
      the
      Pooling and Servicing Agreement (collectively, the “Agreements”) and to cause
      the Certificates to be issued.

     

    (e)  Except
      as
      disclosed in the Preliminary Prospectus and the Prospectus, there are no
      actions, proceedings or investigations pending with respect to which the
      Depositor has received service of process before, or, to the best of the
      Depositor’s knowledge, threatened, by any court, administrative agency or other
      tribunal to which the Depositor is a party or of which any of its properties
      is
      the subject (a) which if determined adversely to the Depositor would have a
      material adverse effect on the business or financial condition of the Depositor,
      (b) asserting the invalidity of any of the Agreements or the Certificates,
      (c)
      seeking to prevent the issuance of the Certificates or the consummation by
      the
      Depositor of any of the transactions contemplated by any of the Agreements
      or
      (d) which might materially and adversely affect the performance by the Depositor
      of its obligations under, or the validity or enforceability of any of the
      Agreements or the Certificates.

     

    (f)  This
      Agreement has been, and the other Agreements when executed and delivered as
      contemplated hereby and thereby will have been, duly authorized, executed and
      delivered by the Depositor, and this Agreement constitutes, and the other
      Agreements when executed and delivered as contemplated herein will constitute,
      legal, valid and binding instruments enforceable against the Depositor in
      accordance with their respective terms, subject as to enforceability to (x)
      applicable bankruptcy, reorganization, insolvency, moratorium or other similar
      laws affecting creditors’ rights generally, (y) general principles of equity
      (regardless of whether enforcement is sought in a proceeding in equity or at
      law), and (z) with respect to rights of indemnity under any of the Agreements,
      limitations of public policy under applicable securities laws.

     

    (g)  The
      execution, delivery and performance of the Agreements by the Depositor and
      the
      consummation of the transactions contemplated hereby and thereby, and the
      issuance and delivery of the Certificates do not and will not conflict with
      or
      result in a breach or violation of any of the terms or provisions of, or
      constitute a default under, any indenture, mortgage, deed of trust, loan
      agreement or other agreement or instrument to which the Depositor is a party,
      by
      which the Depositor is bound or to which any of the properties or assets of
      the
      Depositor or any of its subsidiaries is subject, which breach or violation
      would
      have a material adverse effect on the business, operations or financial
      condition of the Depositor or its ability to perform its obligations under
      any
      of the Agreements, nor will such actions result in any violation of the
      provisions of the articles of incorporation or by-laws of the Depositor or
      any
      statute or any order, rule or regulation of any court or governmental agency
      or
      body having jurisdiction over the Depositor or any of its properties or assets,
      which breach or violation would have a material adverse effect on the business,
      operations or financial condition of the Depositor or its ability to perform
      its
      obligations under any of the Agreements.

     

    (h)  The
      direction by the Depositor to the Trustee to execute, authenticate, issue and
      deliver the Certificates has been duly authorized by the Depositor, and,
      assuming the Trustee has been duly authorized to undertake such actions, when
      executed, authenticated, issued and delivered by the Trustee, in accordance
      with
      the Pooling and Servicing Agreement, the Certificates will be validly issued
      and
      outstanding and the holders of the Certificates will be entitled to the rights
      and benefits of the Certificates as provided by the Pooling and Servicing
      Agreement.

     

    (i)  No
      consent, approval, authorization, order, registration or qualification of or
      with any court or governmental agency or body of the United States is required
      for the issuance of the Certificates and the sale of the Underwritten
      Certificates to the Underwriters, or the consummation by the Depositor of the
      other transactions contemplated by the Agreements except such consents,
      approvals, authorizations, registrations or qualifications as may be required
      under state securities or Blue Sky laws in connection with the purchase and
      distribution of the Underwritten Certificates by the Underwriters or as have
      been obtained.

     

    (j)  At
      the
      time of the execution and delivery of the Pooling and Servicing Agreement,
      the
      Depositor will: (i) have equitable title to the Mortgage Loans conveyed by
      the
      Seller, free and clear of any lien, mortgage, pledge, charge, encumbrance,
      adverse claim or other security interest (collectively, “Liens”); (ii) not have
      assigned to any person (other than the Trustee) any of its right, title or
      interest in the Mortgage Loans and (iii) have the power and authority to sell
      the Mortgage Loans to the Trustee and to sell the Underwritten Certificates
      to
      the Underwriters. Upon execution and delivery of the Pooling and Servicing
      Agreement by the Trustee, the Trustee will have acquired beneficial ownership
      of
      all of the Depositor’s right, title and interest in and to the Mortgage Loans.
      Upon delivery to the Underwriters of the Underwritten Certificates, the
      Underwriters will have good title to the Underwritten Certificates free of
      any
      Liens.

     

    (k)  As
      of the
      Cut-off Date, each of the Mortgage Loans will meet the eligibility criteria
      described in the Preliminary Prospectus and the Prospectus and will conform
      to
      the descriptions thereof contained in the Preliminary Prospectus and the
      Prospectus.

     

    (l)  Neither
      the Depositor nor the Trust is an “investment company” within the meaning of
      such term under the Investment Company Act of 1940, as amended (the “1940 Act”)
      and the rules and regulations of the Commission thereunder.

     

    (m)  At
      the
      Closing Date, the Underwritten Certificates and the Pooling and Servicing
      Agreement will conform in all material respects to the descriptions thereof
      contained in the Preliminary Prospectus and the Prospectus.

     

    (n)  Any
      taxes, fees and other governmental charges in connection with the execution,
      delivery and issuance of the Agreements and the Certificates have been paid
      or
      will be paid at or prior to the Closing Date.

     

    (o)  Since
      the
      respective dates as of which information is given in the Preliminary Prospectus
      and the Prospectus, there has not been any material adverse change in the
      general affairs, management, financial condition, or results of operations
      of
      the Depositor or Seller, otherwise than as set forth or contemplated in the
      Prospectus as supplemented or amended as of the Closing Date.

     

    (p)  As
      of the
      Effective Date and as of the date of the Contract of Sale, the Depositor is
      not
      and will not be as of the Closing Date an “ineligible issuer” as defined in Rule
      405 under the Securities Act.

     

    (q)  Any
      certificate signed by an officer of the Depositor and delivered to the
      Underwriters or counsel for the Underwriters in connection with an offering
      of
      the Underwritten Certificates shall be deemed, and shall state that it is,
      a
      representation and warranty as to the matters covered thereby to each person
      to
      whom the representations and warranties in this Section 1 are made.

     

    (r)  As
      of the
      date of the Contract of Sale, each Issuer Free Writing Prospectus and the
      Preliminary Prospectus, considered together, did not include any untrue
      statement of a material fact or omission of any material fact necessary in
      order
      to make the statements therein, in the light of the circumstances under which
      they were made, not misleading.

     

    SECTION
      2.  Purchase
      and Sale.
      The
      several commitments of the Underwriters to purchase the Underwritten
      Certificates pursuant to this Agreement shall be deemed to have been made on
      the
      basis of the representations and warranties herein contained and shall be
      subject to the terms and conditions herein set forth. The Depositor agrees
      to
      instruct the Trustee to issue the Certificates and agrees to sell to each
      Underwriter, and each Underwriter agrees (except as provided in Section 10
      hereof) severally and not jointly to purchase from the Depositor, the aggregate
      principal amounts or percentage interests of the Underwritten Certificates
      of
      each Class, as set forth opposite such Underwriter’s name on Schedule A, at the
      purchase price or prices set forth on Schedule A.

     

    SECTION
      3.  Delivery
      and Payment.
      Delivery of and payment for the Underwritten Certificates shall be made at
      the
      offices of Thacher Proffitt & Wood LLP, Two World Financial Center, New
      York, New York 10281, or at such other place as shall be agreed upon by the
      Underwriters and the Depositor at 10:00 A.M. New York City time on August 29,
      2006, or at such other time or date as shall be agreed upon in writing by the
      Underwriters and the Depositor (such date being referred to as the “Closing
      Date”). Payment shall be made to the Depositor by wire transfer of same day
      funds payable to the account of the Depositor. Delivery of the Underwritten
      Certificates shall be made to the Representative for the accounts of the several
      Underwriters against payment of the purchase price thereof. The Underwritten
      Certificates so delivered will be initially represented by one or more
      certificates registered in the name of Cede & Co., the nominee of The
      Depository Trust Company (“DTC”). The interests of the beneficial owners of the
      Underwritten Certificates will be represented by book entries on the records
      of
      DTC and participating members thereof. Definitive Underwritten Certificates
      will
      be available only under the limited circumstances specified in the Pooling
      and
      Servicing Agreement.

     

    SECTION
      4.  Offering
      by the Underwriters.
      It is
      understood that, subject to the terms and conditions hereof, the several
      Underwriters propose to offer the Underwritten Certificates for sale to the
      public as set forth in the Prospectus.

     

    SECTION
      5.  Agreements.

     

    (a)  The
      Depositor agrees as follows:

     

    
      	(i)     
                	
              To
                prepare the Preliminary Prospectus and the Prospectus in a form approved
                by the Underwriters; to file such Preliminary Prospectus pursuant
                to Rule
                433(d) under the Securities Act not later than the same day on which
                the
                Preliminary Prospectus was made available to the Underwriters; to
                file
                such Prospectus pursuant to Rule 424(b) under the Securities Act
                not later
                than the second Business Day following the day on which the Prospectus
                was
                made available to the Underwriters; to make no further amendment
                or
                supplement to the Registration Statement or to the Prospectus prior
                to the
                Closing Date except as permitted herein; to advise the Underwriters,
                promptly after it receives notice thereof, of the time when any amendment
                to the Registration Statement has been filed or becomes effective
                prior to
                the termination of the offering of the Underwritten Certificates
                or any
                supplement to the Prospectus or any amended Prospectus has been filed
                and
                to furnish the Underwriters or their counsel with copies thereof
                without
                charge; to file promptly all reports and any definitive proxy or
                information statements required to be filed by the Depositor with
                the
                Commission pursuant to Section 13(a), 13(c), 14 or l5(d) of the Exchange
                Act subsequent to the date of the Prospectus and, for so long as
                the
                delivery of a prospectus is required in connection with the offering
                or
                sale of the Underwritten Certificates; to promptly advise the Underwriters
                of its receipt of notice of the issuance by the Commission of any
                stop
                order or the institution of or, to the knowledge of the Depositor,
                the
                threatening of any proceeding for such purpose, or of: (i) any order
                preventing or suspending the use of the Preliminary Prospectus or
                the
                Prospectus; (ii) the suspension of the qualification of the Underwritten
                Certificates for offering or sale in any jurisdiction; (iii) the
                initiation of or threat of any proceeding for any such purpose or
                (iv) any
                request by the Commission for the amending or supplementing of the
                Registration Statement, the Preliminary Prospectus or the Prospectus
                or
                for additional information. In the event of the issuance of any stop
                order
                or of any order preventing or suspending the use of the Preliminary
                Prospectus or the Prospectus or suspending any such qualification,
                the
                Depositor promptly shall use its best efforts to obtain the withdrawal
                of
                such order by the Commission.

            

    

     

    
      	(ii)     
               	
              To
                furnish promptly to the Underwriters and to counsel for the Underwriters
                a
                signed copy of the Registration Statement as originally filed with
                the
                Commission, and of each amendment thereto filed with the Commission,
                including all consents and exhibits filed
                therewith.

            

    

     

    
      	(iii)    
               	
              To
                deliver promptly to the Underwriters without charge such number of
                the
                following documents as the Underwriters shall reasonably request:
                (i)
                conformed copies of the Registration Statement as originally filed
                with
                the Commission and each amendment thereto (in each case including
                exhibits); (ii) the Preliminary Prospectus, the Prospectus and any
                amended
                or supplemented Preliminary Prospectus or Prospectus and (iii) any
                document incorporated by reference in the Preliminary Prospectus
                or the
                Prospectus (including exhibits thereto). If the delivery of a prospectus
                is required at any time prior to the expiration of nine months after
                the
                Closing Date in connection with the offering or sale of the Underwritten
                Certificates, and if at such time any events shall have occurred
                as a
                result of which the Prospectus as then amended or supplemented would
                include any untrue statement of a material fact or omit to state
                any
                material fact necessary in order to make the statements therein,
                in light
                of the circumstances under which they were made when such Prospectus
                is
                delivered, not misleading, or, if for any other reason it shall be
                necessary during such same period to amend or supplement the Prospectus
                or
                to file under the Exchange Act any document incorporated by reference
                in
                the Prospectus in order to comply with the Securities Act or the
                Exchange
                Act, the Depositor shall notify the Underwriters and, upon any
                Underwriter’s request, shall file such document and prepare and furnish
                without charge to the Underwriters and to any dealer in securities
                as many
                copies as the Underwriters may from time to time reasonably request
                of an
                amended Prospectus or a supplement to the Prospectus which corrects
                such
                statement or omission or effects such compliance, and in case the
                Underwriters are required to deliver a Prospectus in connection with
                sales
                of any of the Underwritten Certificates at any time nine months or
                more
                after the Effective Time, upon the request of the Underwriters but
                at
                their expense, the Depositor shall prepare and deliver to the Underwriters
                as many copies as the Underwriters may reasonably request of an amended
                or
                supplemented Prospectus complying with Section 10(a)(3) of the Securities
                Act.

            

    

     

    
      	(iv)  
               	
              To
                file promptly with the Commission any amendment to the Registration
                Statement, the Preliminary Prospectus or the Prospectus or any supplement
                to the Prospectus that may, in the judgment of the Depositor or the
                Underwriters, be required by the Securities Act or requested by the
                Commission. Neither the Underwriters’ consent to nor their distribution of
                any amendment or supplement shall constitute a waiver of any of the
                conditions set forth in Section 6.

            

    

     

    
      	(v)     	
              To
                furnish the Underwriters and counsel for the Underwriters, prior
                to filing
                with the Commission, and to obtain the consent of the Underwriters
                for the
                filing of the following documents relating to the Underwritten
                Certificates: (i) any Post-Effective Amendment to the Registration
                Statement or supplement to the Prospectus, or document incorporated
                by
                reference in the Prospectus or (ii) the Preliminary Prospectus and
                the
                Prospectus pursuant to the Rules and
                Regulations.

            

    

     

    
      	(vi)   	
              To
                use commercially reasonable efforts, in cooperation with the Underwriters,
                to qualify the Underwritten Certificates for offering and sale under
                the
                applicable securities laws of such states and other jurisdictions
                of the
                United States or elsewhere as the Underwriters may reasonably designate,
                and maintain or cause to be maintained such qualifications in effect
                for
                as long as may be required for the distribution of the Underwritten
                Certificates. The Depositor will file or cause the filing of such
                statements and reports as may be required by the laws of each jurisdiction
                in which the Underwritten Certificates have been so qualified; provided,
                however, that the Depositor shall not be required to qualify to do
                business in any jurisdiction where it is not now so qualified or
                to take
                any action which would subject it to general or unlimited service
                of
                process in any jurisdiction where it is now so
                subject.

            

    

     

    
      	(vii)  	
              So
                long as the Underwritten Certificates shall be outstanding, the Depositor
                shall cause the Trustee, pursuant to the Pooling and Servicing Agreement,
                to deliver to the Underwriters as soon as such statements are furnished
                to
                the Trustee: (i) the annual assessment of compliance delivered to
                the
                Trustee pursuant to Section 3.20 of the Pooling and Servicing Agreement;
                (ii) the annual attestation of a firm of registered public accountants
                furnished to the Trustee pursuant to Section 3.20 of the Pooling
                and
                Servicing Agreement; (iii) the monthly servicing report furnished
                to the
                Trustee and (iv) the monthly reports furnished to the Certificateholders
                pursuant to Section 4.02 of the Pooling and Servicing
                Agreement.

            

    

     

    
      	(viii)  	
              Unless
                the Underwriters shall otherwise have given their written consent,
                no
                collateralized mortgage obligations or other similar securities
                representing interests in or secured by other mortgage-related assets
                originated or owned by the Seller shall be publicly offered or sold,
                nor
                shall the Seller enter into any contractual arrangements that contemplate
                the public offering or sale of such securities, until the earlier
                to occur
                of the termination of the syndicate or the Closing
                Date.

            

    

     

    
      	(ix)  
               	
              In
                connection with any transaction contemplated by this Agreement, the
                Depositor and each of its affiliates maintain customary, arm’s-length
                business relationships with each Underwriter and each of its affiliates,
                and no fiduciary duty on the part of any Underwriter or any of its
                affiliates is thereby or hereby intended or created, and the express
                disclaimer of any such fiduciary relationship on the part of each
                Underwriter and each of its affiliates is hereby acknowledged and
                accepted
                by the Depositor and each of its
                affiliates.

            

    

     

    
      	(x)  
               	
              The
                Depositor will file or cause to be filed with the Commission such
                Free
                Writing Prospectus that is either an Issuer Free Writing Prospectus
                (as
                defined in Section 5(c) hereof) or contains Issuer Information as
                soon as
                reasonably practicable after the date of this Agreement, but in any
                event,
                not later than required pursuant to Rules 426 or 433, respectively,
                of the
                Securities Act.

            

    

     

    
      	(xi)
                	
              The
                Depositor shall not be required to file (A) any Free Writing Prospectus,
                if the information included therein is included or incorporated by
                reference in a prospectus or Free Writing Prospectus previously filed
                with
                the Commission that relates to the offering of the Certificates,
                or (B)
                any Free Writing Prospectus or portion thereof that contains a description
                of the Certificates or the offering of the Certificates which does
                not
                reflect the final terms thereof (so long as such information does
                not
                contain any Issuer Information).

            

    

     

    
      	(xii) 
               	
              The
                Depositor will (i) prepare and file the report required by Item 6.05
                of
                Form 8-K within four business days after the Closing Date if any
                material
                pool characteristic in the final pool at the Closing Date varies
                by 5% or
                more from the description in the Prospectus Supplement, (ii) comply
                with
                required Form 8-K reporting requirements with respect to any prefunding
                account and (iii) if static pool information required with respect
                to the
                Underwritten Certificates is delivered via website, comply with the
                Rules
                and Regulations. The Depositor will be responsible for calculating
                the
                significance percentage of any derivative contract with respect to
                the
                Underwritten Certificates.

            

    

     

     

       (b) 
       Each
      Underwriter severally represents, warrants, covenants and agrees with the
      Depositor as to itself that:

     

    
      	(i)   
               	
              The
                Underwriters hereby authorize the Representative to execute on behalf
                of
                all the Underwriters, each of (a) a letter to the Depositor concerning
                registration and denomination instructions for the Underwritten
                Certificates purchased by the Underwriters, (b) the Cross Receipt
                relating
                to the Depositor’s receipt of the proceeds from the sale of the
                Underwritten Certificates and (c) the original issue discount pricing
                letter.

            

    

     

    
      	(ii)   
               	
              Prior
                to entering into any Contract of Sale, the Underwriter shall convey
                the
                Preliminary Prospectus to each prospective investor. The Underwriter
                shall
                keep sufficient records to document its conveyance of the Preliminary
                Prospectus to each potential investor prior to the related Contract
                of
                Sale.

            

    

     

    
      	(iii)    
              	
              Unless
                preceded or accompanied by a prospectus satisfying the requirements
                of
                Section 10(a) of the Securities Act, the Underwriter shall not convey
                or
                deliver any written communication to any person in connection with
                the
                initial offering
                of the Certificates,
                unless such written communication (1) is made in reliance on Rule
                134
                under the Securities Act, (2) constitutes a prospectus satisfying
                the
                requirements of Rule 430B under the Securities Act or (3) is a Free
                Writing Prospectus.

            

    

     

    
      	(iv)  
               	
              An
                Underwriter may convey a Preliminary Term Sheet to a potential investor
                prior to entering into a Contract of Sale with such investor; provided,
                however, that (x) such Underwriter shall not enter into a Contract
                of Sale
                with such investor unless the Underwriter has complied with paragraph
                (i)
                above prior to such Contract of Sale, (y) such Underwriter shall
                deliver a
                copy of the proposed Preliminary Term Sheet to the Depositor and
                its
                counsel prior to the anticipated first use and shall not convey any
                such
                Preliminary Term Sheet to which the Depositor or its counsel reasonably
                objects.

            

    

     

    
      	(v)   
               	
              An
                Underwriter may convey Computational Materials (x) to a potential
                investor
                prior to entering into a Contract of Sale with such investor; provided,
                however, that (A) such Underwriter shall not enter into a Contract
                of Sale
                with such investor unless the Underwriter has complied with paragraph
                (i)
                above prior to such Contract of Sale and (B) such Computational Materials
                shall not be disseminated in a manner reasonably designed to lead
                to their
                broad unrestricted dissemination; provided, however, that if such
                Computational Materials are disseminated in a manner reasonably designed
                to lead to its broad unrestricted dissemination, such Underwriter
                shall
                file with the Commission such Computational Materials, and (y) to
                an
                investor after a Contract of Sale, provided that the Underwriter
                has
                complied with paragraph (i) above in connection with such Contract
                of
                Sale. The Underwriter shall keep sufficient records of any conveyance
                of
                Computational Materials to potential or actual investors and shall
                maintain such records as required by the Rules and
                Regulations.

            

    

     

    
      	(vi)  
               	
              If
                an Underwriter does not furnish a Free Writing Prospectus that is
                required
                to be filed under the Securities Act to the Depositor’s counsel prior to
                the scheduled print date of the Prospectus Supplement, such Underwriter
                will be deemed to have represented that it did not convey any such
                Free
                Writing Prospectus to any potential
                investor.

            

    

     

    
      	(vii)  
               	
              Each
                Free Writing Prospectus shall contain legends substantially similar
                to the
                following or such other legends required by applicable law as determined
                by the Underwriters:

            

    

     

    The
      depositor has filed a registration statement (including a prospectus) with
      the
      SEC for the offering to which this free writing prospectus relates. Before
      you
      invest, you should read the prospectus in that registration statement and other
      documents the depositor has filed with the SEC for more complete information
      about the depositor and this offering. You may get these documents for free
      by
      visiting EDGAR on the SEC Web site at www.sec.gov.
      Alternatively, the depositor, any underwriter or any dealer participating in
      the
      offering will arrange to send you the prospectus if you request it by calling
      toll-free 1-8[zz-zzz-zzzz].

     

    This
      free
      writing prospectus does not contain all information that is required to be
      included in the base prospectus and the prospectus supplement.

     

    The
      information in this free writing prospectus supersedes information contained
      in
      any prior similar free writing prospectus relating to these securities prior
      to
      the time of your commitment to purchase.

     

    The
      asset-backed securities referred to in this free writing prospectus are being
      offered when, as and if issued. In particular, you are advised that asset-backed
      securities, and the asset pools backing them, are subject to modification or
      revision (including, among other things, the possibility that one or more
      classes of securities may be split, combined or eliminated), at any time prior
      to issuance or availability of a final prospectus. As a result, you may commit
      to purchase securities that have characteristics that may change, and you are
      advised that all or a portion of the securities may not be issued that have
      the
      characteristics described in this free writing prospectus. Our obligation to
      sell securities to you is conditioned on the securities having the
      characteristics described in this free writing prospectus. If that condition
      is
      not satisfied, we will notify you, and neither the issuer nor [the] [any]
      underwriter will have any obligation to you to deliver all or any portion of
      the
      securities which you have committed to purchase, and there will be no liability
      between us as a consequence of the non-delivery.

     

    This
      free
      writing prospectus is being delivered to you solely to provide you with
      information about the offering of the asset-backed securities referred to in
      this free writing prospectus and to solicit an indication of your interest
      in
      purchasing such securities, when, as and if issued. Any such indication of
      interest will not constitute a contractual commitment by you to purchase any
      of
      the securities.

     

    
      	(viii)    	
              Any
                Computational Materials shall include legends, in addition to those
                specified in paragraph (vi) above, substantially similar to the following
                or such other legends required by applicable law as determined by
                the
                Underwriters:

            

    

     

    The
      information in this free writing prospectus may be based on preliminary
      assumptions about the pool assets and the structure. Any such assumptions are
      subject to change.

     

    The
      information in this free writing prospectus may reflect parameters, metrics
      or
      scenarios specifically requested by you. If so, prior to the time of your
      commitment to purchase, you should request updated information based on any
      parameters, metrics or scenarios specifically required by you.

     

    Neither
      the depositor nor any of its affiliates prepared, provided, approved or verified
      any statistical or numerical information presented in this free writing
      prospectus, although that information may be based in part on loan level data
      provided by the depositor or its affiliates.

     

    
      	(ix)      	
              On
                or before the Closing Date, the Representative shall execute and
                deliver
                to Thacher Proffitt & Wood LLP a copy of an original issue discount
                pricing letter, provided to the Representative by Thacher Proffitt
&
                Wood LLP.

            

    

     

    
      	(x)       
              	
              Each
                Underwriter severally agrees to retain all Free Writing Prospectuses
                that
                it has used and that are not required to be filed pursuant to this
                Section
                5 for a period of three years following the initial bona fide offering
                of
                the Offered Certificates.

            

    

     

    (c)  The
      following terms shall have the meanings set forth below, unless the context
      clearly indicates otherwise:

     

    Computational
      Materials:
      Any
      Free Writing Prospectus prepared by the Underwriter that contains only (i)
      information specified in paragraph (5) of the definition of ABS Informational
      and Computational Materials in Item 1101(a) of Regulation AB or (ii) information
      that is not Issuer Information.

     

    Contract
      of Sale:
      The
      meaning set forth in Rule 159 under the Securities Act.

     

    Derived
      Information:
      Such
      information, if any, in any Free Writing Prospectus prepared by any Underwriter
      that is not contained in either (i) the Registration Statement, the Base
      Prospectus, the Preliminary Prospectus or the Prospectus or amendments or
      supplements thereto, taking into account information incorporated therein by
      reference or (ii) any Pool Information.

     

    Free
      Writing Prospectus:
      A
“written communication” within the meaning of Rule 405 under the Securities Act
      that describes the Certificates and/or the Mortgage Loans.

     

    Issuer
      Information:
      Such
      information as defined in Rule 433(h) under the Securities Act and
      which
      shall not include (i) information that is merely based on or derived from such
      information or (ii) any Excluded Information.

     

    Issuer
      Free Writing Prospectus:
      The
      meaning set forth in Rule 405 of the Securities Act except that (i)
      Computational Materials shall not be an Issuer Free Writing Prospectus; (ii)
      any
      Free Writing Prospectus or portion thereof prepared by or on behalf of an
      Underwriter that includes any Issuer Information that is not approved by the
      Depositor for use therein shall not be an Issuer Free Writing Prospectus and
      (iii) no Free Writing Prospectus shall be deemed to be prepared by an
      Underwriter on behalf of the Depositor if such Free Writing Prospectus is not
      delivered to the Depositor prior to first use in accordance with Section
      5(b)(vi) hereof.

     

    Preliminary
      Term Sheet:
      A Free
      Writing Prospectus that contains information described in paragraphs (1) -
      (3)
      of the definition of ABS Informational and Computational Materials in Item
      1101(a) of Regulation AB but which does not include Derived
      Information.

     

    Static
      Pool Information:
      Such
      information as described in Item 1105 of Regulation AB, whether or not such
      information is incorporated into the Registration Statement or the
      Prospectus.

     

    (d)  (i)
      In
      the event that any Underwriter or the Depositor becomes aware that, as of the
      time of the Contract of Sale, any Free Writing Prospectus prepared by or on
      behalf of the Underwriter and delivered to a purchaser of an Offered Certificate
      contained any untrue statement of a material fact or omitted to state a material
      fact necessary in order to make the statements contained therein, in light
      of
      the circumstances under which they were made, not misleading (such Free Writing
      Prospectus, a “Defective
      Free Writing Prospectus”),
      the
      Underwriter or the Depositor shall notify the other parties to this Agreement
      thereof within one business day after discovery.

     

    (ii)
      The
      party responsible for the information to be corrected, if requested by the
      Depositor or an Underwriter, as appropriate, shall prepare a Free Writing
      Prospectus with Corrective Information that corrects the material misstatement
      in or omission from the Defective Free Writing Prospectus (such corrected Free
      Writing Prospectus, a “Corrected
      Free Writing Prospectus”).

     

    (iii)
      The
      Underwriters shall deliver the Corrected Free Writing Prospectus to each
      purchaser of an Offered Certificate which received the Defective Free Writing
      Prospectus prior to entering into an agreement to purchase any Offered
      Certificates.

     

    (iv)
      The
      Underwriters shall notify such purchaser in a prominent fashion that the prior
      agreement to purchase Offered Certificates has been terminated, and of such
      purchaser’s rights as a result of termination of such agreement.

     

    (v)
      The
      Underwriters shall provide such purchaser with an opportunity to affirmatively
      agree to purchase such Offered Certificates on the terms described in the
      Corrected Free Writing Prospectus.

     

     

    (e)  Each
      Underwriter covenants with the Depositor that after the final Prospectus is
      available the Underwriter shall not distribute any written information
      concerning the Offered Certificates to a prospective purchaser of Offered
      Certificates unless such information is preceded or accompanied by the final
      Prospectus.

     

    SECTION
      6.  Conditions
      to the Underwriters’ Obligation.
      The
      several obligations of the Underwriters hereunder to purchase the Underwritten
      Certificates pursuant to this Agreement are subject to the following conditions
      as of the Closing Date:

     

    (a)  Each
      of
      the obligations of the Depositor required to be performed by it on or prior
      to
      the Closing Date pursuant to the terms of the Agreements shall have been duly
      performed and complied with and all of the representations and warranties of
      the
      Depositor under any of the Agreements shall be true and correct as of the
      Closing Date and no event shall have occurred which, with notice or the passage
      of time, would constitute a default under any of the Agreements, and the
      Underwriters shall have received certificates to the effect of the foregoing,
      each signed by an authorized officer of the Depositor.

     

    (b)  Prior
      to
      the Closing Date, (i) the Depositor shall have received confirmation of the
      effectiveness of the Registration Statement and (ii) no stop order suspending
      the effectiveness of the Registration Statement shall have been issued and
      no
      proceedings for that purpose shall have been instituted or, to the knowledge
      of
      the Depositor, shall be contemplated by the Commission. Any request of the
      Commission for inclusion of additional information in the Registration Statement
      or the Prospectus shall have been complied with.

     

    (c)  The
      Mortgage Loans will be acceptable to the following rating agencies (each, a
      “Rating Agency”): Fitch Ratings (“Fitch”), Standard & Poor’s Ratings
      Services, a division of The McGraw-Hill Companies Inc. (“S&P”) and Moody’s
      Investor Service, Inc. (“Moody’s”).

     

    (d)  The
      Underwriters shall have received the following additional closing documents,
      in
      form and substance satisfactory to the Underwriters and their
      counsel:

     

    
      	(i)     
                	
              the
                Agreements and all documents required thereunder, duly executed and
                delivered by each of the parties thereto other than the Underwriters
                and
                their affiliates;

            

    

     

    
      	(ii)    
                	
              an
                officer’s certificate of an officer of the Seller and an officer’s
                certificate of an officer of the Depositor, in each case dated as
                of the
                Closing Date and reasonably satisfactory in form and substance to
                the
                Underwriters and counsel for the Underwriters with resolutions of
                the
                applicable board of directors and a copy of the formation documents
                of the
                Seller or the Depositor, as
                applicable;

            

    

     

    
      	(iii)   
                	
              an
                opinion of in-house counsel to the Seller, reasonably satisfactory
                in form
                and substance to the Underwriters and counsel for the Underwriters,
                dated
                the Closing Date, as to various
                matters;

            

    

     

    
      	(iv)   
                	
              an
                opinion of Thacher Proffitt & Wood LLP, counsel to the Depositor,
                dated the Closing Date, reasonably satisfactory in form and substance
                to
                the Underwriters and counsel for the Underwriters, as to various
                matters;

            

    

     

    
      	(v)     
               	
              an
                opinion of McKee Nelson LLP, counsel to the Underwriters, dated the
                Closing Date, reasonably satisfactory in form and substance to the
                Underwriters, as to various
                matters;

            

    

     

    
      	(vi)      	
              such
                opinions of Thacher Proffitt & Wood LLP, counsel to the Depositor, in
                forms reasonably satisfactory to the Underwriters, their counsel
                and each
                Rating Agency, as to such additional matters not opined to in the
                opinion
                delivered pursuant to clause (iv) above as shall be required for
                the
                assignment of a rating to each Class of Underwritten Certificates
                by each
                Rating Agency (as to each, the “Required Ratings”) as set forth in the
                Prospectus Supplement;

            

    

     

    
      	(vii)     	
              a
                letter from each Rating Agency that it has assigned the applicable
                Required Ratings;

            

    

     

    
      	(viii)    	
              a
                letter, dated the Closing Date, from each of Thacher Proffitt & Wood
                LLP, counsel to the Depositor, and McKee Nelson LLP, counsel to the
                Underwriters, providing negative assurance with respect to the Preliminary
                Prospectus as of its date and as of the date hereof and with respect
                to
                the Prospectus, as of its date and as of the Closing
                Date;

            

    

     

    
      	(ix)      	
              letters
                dated on or before the date on which the Preliminary Prospectus is
                dated
                and conveyed, in form and substance acceptable to the Underwriters
                and
                their counsel and addressed to the Underwriters, prepared by Ernst
&
                Young LLP (a) regarding certain numerical information contained or
                incorporated by reference in the Preliminary Prospectus and (b) relating
                to certain agreed upon procedures as requested by the Underwriters
                relating to the Mortgage Loans;

            

    

     

    
      	(x)       	
              letters
                dated on or before the date on which the Prospectus is dated and
                printed,
                in form and substance acceptable to the Underwriters and their counsel
                and
                addressed to the Underwriters, prepared by Ernst & Young LLP (a)
                regarding certain numerical information contained or incorporated
                by
                reference in the Prospectus and (b) relating to certain agreed upon
                procedures as requested by the Underwriters relating to the Mortgage
                Loans;

            

    

     

    
      	(xi)      	
              an
                opinion of counsel to the Trustee, dated the Closing Date, in form
                and
                substance reasonably satisfactory to the Underwriters, their counsel
                and
                each Rating Agency; and

            

    

     

    
      	(xii)    
               	
              an
                officer’s certificate of an officer of the Trustee, dated as of the
                Closing Date, reasonably satisfactory in form and substance to the
                Underwriters and their counsel.

            

    

     

    (e)  All
      proceedings in connection with the transactions contemplated by this Agreement
      and all documents incident hereto shall be reasonably satisfactory in form
      and
      substance to the Underwriters and their counsel.

     

    (f)  The
      Seller and the Depositor shall have furnished the Underwriters with such other
      certificates of its officers or others and such other documents or opinions
      as
      the Underwriters or their counsel may reasonably request.

     

    (g)  Subsequent
      to the execution and delivery of this Agreement none of the following shall
      have
      occurred: (i) trading in securities generally on the New York Stock Exchange,
      the American Stock Exchange or the over-the-counter market shall have been
      suspended or minimum prices shall have been established on either of such
      exchanges or such market by the Commission, by such exchange or by any other
      regulatory body or governmental authority having jurisdiction; (ii) a banking
      moratorium shall have been declared by Federal or New York State authorities;
      (iii) the United States shall have become engaged in material hostilities,
      there
      shall have been an escalation of such hostilities involving the United States
      or
      there shall have been a declaration of war by the United States; (iv) a material
      disruption in settlement or clearing operations shall occur; or (v) there shall
      have occurred such a material adverse change in general economic, political
      or
      financial conditions (or the effect of international conditions on the financial
      markets of the United States shall be such) which is material and adverse,
      and
      in the case of any of the events specified in clauses (i) through (v), either
      individually or together with any other such event specified in clauses (i)
      through (v) makes it in the judgment of the Underwriters, impractical to market
      the Underwritten Certificates.

     

    (h)  There
      shall not have occurred any development that has caused a material adverse
      change in the financial condition or business operations of the Seller or the
      Depositor which adverse change makes it impractical to market the Underwritten
      Certificates.

     

    (i)  The
      Interest Rate Swap Agreement and the Swap Administration Agreement shall have
      been executed and delivered.

     

    (j)  The
      Depositor will comply with Regulation AB in all respects as it relates to the
      Depositor.

     

    (k)  The
      Depositor shall have delivered to the Underwriters (i) a letter from the
      Depositor’s registered accountants dated as of a date not more than 135 days
      prior to the date of first use of the Prospectus Supplement, relating to certain
      agreed upon procedures as requested by the Depositor with respect to the Static
      Pool Information included in or incorporated by reference into the Prospectus
      Supplement for securitized assets issued on or after January 1, 2006 and (ii)
      a
      letter from the Depositor’s registered accountants dated as of the date of the
      Prospectus Supplement, addressed to the Underwriters and providing for reliance
      on the letter described in (i) of this clause (k).

     

    (l)  If
      any
      condition specified in this Section 6 shall have not been fulfilled when and
      as
      required to be fulfilled, this Agreement may be terminated by the Underwriters
      by notice to the Depositor at any time at or prior to the Closing Date, and
      such
      termination shall be without liability of any party to any other party except
      as
      provided in Sections 7, 8 and 19.

     

    SECTION
      7.  Payment
      of Expenses.
      The
      Depositor agrees to pay:

     

    
      	(i)     
                	
              the
                costs incident to the authorization, issuance, sale and delivery
                of the
                Certificates and any taxes payable in connection therewith; (ii)
                the costs
                incident to the preparation, printing and filing under the Securities
                Act
                of the Registration Statement and any amendments and exhibits thereto
                and
                any Issuer Free Writing Prospectus; (iii) the costs of distributing
                the
                Registration Statement as originally filed and each amendment thereto
                and
                any post-effective amendments thereof (including, in each case, exhibits),
                the Preliminary Prospectus, the Prospectus and any amendment or supplement
                to the Prospectus or any document incorporated by reference therein
                and
                any Issuer Free Writing Prospectus, all as provided in this Agreement;
                (iv) the costs of reproducing and distributing this Agreement; (v)
                any
                fees charged by securities rating services for rating the Underwritten
                Certificates; (vi) the cost of accountants’ comfort letters relating to
                the Preliminary Prospectus and the Prospectus (except as otherwise
                agreed
                in a separate letter agreement between the Seller and the Underwriters);
                (vii) all other costs and expenses incidental to the performance
                of the
                obligations of the Depositor and the Seller (including costs and
                expenses
                of counsel to the Depositor and the Seller) and (viii) to the extent
                set
                forth in the second succeeding paragraph, the costs and expenses
                of the
                Underwriters.

            

    

     

    The
      Underwriters shall be solely responsible for any due diligence expenses incurred
      by them, any transfer taxes on the Underwritten Certificates which they may
      sell, the expenses of advertising any offering of the Underwritten Certificates
      made by the Underwriters, the cost of any accountants’ comfort letters relating
      to any Computational Materials and the costs and expenses of counsel to the
      Underwriters.

     

    If
      this
      Agreement is terminated because of a breach of the Depositor of any covenant
      or
      agreement hereunder (other than the failure of the closing condition set forth
      in Section 6(h) to be met), the Depositor shall cause the Underwriters to be
      reimbursed for all reasonable out-of-pocket expenses, including fees and
      disbursements of McKee Nelson LLP, counsel for the Underwriters.

     

    SECTION
      8.  Indemnification
      and Contribution.

     

    (a)  The
      Depositor indemnifies and holds harmless each Underwriter, each Underwriter’s
      respective officers and directors and each person, if any, who controls any
      Underwriter within the meaning of Section 15 of the Securities Act or Section
      20
      of the Exchange Act, as follows:

     

    
      	(i)      
               	
              against
                any and all losses, claims, expenses, damages or liabilities, joint
                or
                several, to which such Underwriter, its officers, directors or such
                controlling person may become subject under the Securities Act or
                otherwise, insofar as such losses, claims, damages or liabilities
                (or
                actions in respect thereof including, but not limited to, any loss,
                claim,
                expense, damage or liability related to purchases and sales of the
                Underwritten Certificates) arise out of or are based upon any untrue
                statement or alleged untrue statement of any material fact contained
                in
                the Registration Statement, the Preliminary Prospectus, the Prospectus,
                any Issuer Free Writing Prospectus, any amendment or supplement to
                any of
                the foregoing or the Static Pool Information, or arise out of, or
                are
                based upon, the omission or alleged omission to state therein a material
                fact required to be stated therein or necessary to make the statements
                made therein not misleading; and will reimburse each Underwriter
                and each
                such controlling person for any legal or other expenses reasonably
                incurred by such Underwriter or such controlling person in connection
                with
                investigating or defending any such loss, claim, damage, liability
                or
                action as such expenses are incurred; provided, however, that the
                Depositor will not be liable in any such case to the extent that
                any such
                loss, claim, damage or liability arises out of or is based upon an
                untrue
                statement or omission, or alleged untrue statement or omission, made
                in
                any of such documents: (x) under the defined term “Modeling Assumptions”
                under the caption “Yield on the Certificates—Weighted Average Lives,” the
                table entitled “—Assumed Mortgage Loan Characteristics” and the tables
                entitled “—Percent of Original Certificate Principal Balance Outstanding”
                (collectively, the “Excluded Information”); (y) in reliance upon and in
                conformity with any Underwriters’ Information; or (z) in any Derived
                Information, except in the case of clause (x) or (z) to the extent
                that
                any untrue statement or alleged untrue statement or omission therein
                results (or is alleged to have resulted) from an error or material
                omission in the information either in the Preliminary Prospectus
                or the
                Prospectus for which the Depositor is responsible or concerning the
                characteristics of the Mortgage Loans furnished by the Seller to
                the
                Underwriters for use in the preparation of any Excluded Information
                or any
                Free Writing Prospectus; provided, however, that no indemnity shall
                be
                provided by either the Depositor or the Seller for any error that
                was
                superseded or corrected by delivery to the Underwriters of corrected
                written or electronic information prior to the first Contract of
                Sale or
                for which the Seller or the Depositor provided written notice of
                such
                error to the Underwriters prior to the first Contract of Sale and
                the
                Underwriters failed to correct such
                error;

            

    

     

    
      	(ii)    
                	
              against
                any and all loss, liability, claim, damage and expense whatsoever,
                to the
                extent of the aggregate amount paid in settlement of any litigation,
                or
                investigation or proceeding by any governmental agency or body, commenced
                or threatened, or of any claim whatsoever based upon any such untrue
                statement or omission, or any such alleged untrue statement or omission,
                if such settlement is effected with the written consent of the Depositor;
                and

            

    

     

    
      	(iii)   
                	
              against
                any and all expense whatsoever (including the fees and disbursements
                of
                counsel chosen by any such Underwriter), reasonably incurred in
                investigating, preparing or defending against any litigation, or
                investigation or proceeding by any governmental agency or body, commenced
                or threatened, or any claim whatsoever based upon any such untrue
                statement or omission, or any such alleged untrue statement or omission,
                to the extent that any such expense is not paid under clause (i)
                or clause
                (ii) above.

            

    

     

    This
      indemnity agreement will be in addition to any liability which the Depositor
      may
      otherwise have.

     

    (b)  Each
      Underwriter, severally and not jointly, agrees to indemnify and hold harmless
      each of the Depositor, each of its directors, each of its officers and each
      person, if any, who controls the Depositor within the meaning of Section 15
      of
      the Securities Act or Section 20 of the Exchange Act, against any and all
      losses, claims, expenses, damages or liabilities to which the Depositor or
      any
      such director, officer or controlling person may become subject, under the
      Securities Act or otherwise, insofar as such losses, claims, damages or
      liabilities (or actions in respect thereof) arise out of or are based upon
      any
      untrue statement or alleged untrue statement of any material fact contained
      in
      (i) Derived Information and (ii) the Registration Statement, the Preliminary
      Prospectus, the Prospectus, or any amendment or supplement thereto, or arise
      out
      of, or are based upon, the omission or the alleged omission to state therein
      a
      material fact required to be stated therein or necessary to make the statements
      made therein not misleading, but with respect to clause (b)(ii) above, only
      to
      the extent that such untrue statement or alleged untrue statement or omission
      or
      alleged omission was made in reliance upon and in conformity with the
      Underwriters’ Information of such Underwriter; and will reimburse any legal or
      other expenses reasonably incurred by the Depositor or any such director,
      officer or controlling person in connection with investigating or defending
      any
      such loss, claim, damage, liability or action. This indemnity agreement will
      be
      in addition to any liability which such Underwriter may otherwise
      have.

     

    (c)  Promptly
      after receipt by an indemnified party under this Section 8 of notice of the
      commencement of any action described therein, such indemnified party will,
      if a
      claim in respect thereof is to be made against the indemnifying party under
      this
      Section 8, notify the indemnifying party of the commencement thereof; but the
      omission to so notify the indemnifying party will not relieve the indemnifying
      party from any liability that it may have to any indemnified party otherwise
      than under this Section 8; provided, however, that the failure to notify the
      indemnifying party under this Section 8(c) shall not eliminate the contribution
      requirement of the indemnifying party under Section 8(d) unless the failure
      to
      notify under this Section 8(c) is materially adverse to the indemnifying party.
      In case any such action is brought against any indemnified party, and it
      notifies the indemnifying party of the commencement thereof, the indemnifying
      party will be entitled to participate therein, and, to the extent that it may
      wish to do so, jointly with any other indemnifying party similarly notified,
      to
      assume the defense thereof, with counsel satisfactory to such indemnified party
      (who shall not, except with the consent of the indemnified party, be counsel
      to
      the indemnifying party), and, after notice from the indemnifying party to such
      indemnified party under this Section 8, such indemnifying party shall not be
      liable for any legal or other expenses subsequently incurred by such indemnified
      party in connection with the defense thereof other than reasonable costs of
      investigation.

     

    Any
      indemnified party shall have the right to employ separate counsel in any such
      action and to participate in the defense thereof, but the fees and expenses
      of
      such counsel shall be at the expense of such indemnified party unless: (i)
      the
      employment thereof has been specifically authorized by the indemnifying party
      in
      writing; (ii) such indemnified party shall have been advised by such counsel
      that there may be one or more legal defenses available to it which are different
      from or additional to those available to the indemnifying party and in the
      reasonable judgment of such counsel it is advisable for such indemnified party
      to employ separate counsel; (iii) a conflict or potential conflict exists (based
      on advice of counsel to the indemnified party) between the indemnified party
      and
      the indemnifying party (in which case the indemnifying party will not have
      the
      right to direct the defense of such action on behalf of the indemnified party);
      or (iv) the indemnifying party has failed to assume the defense of such action
      and employ counsel reasonably satisfactory to the indemnified party, in which
      case, if such indemnified party notifies the indemnifying party in writing
      that
      it elects to employ separate counsel at the expense of the indemnifying party,
      the indemnifying party shall not have the right to assume the defense of such
      action on behalf of such indemnified party, it being understood, however, the
      indemnifying party shall not, in connection with any one such action or separate
      but substantially similar or related actions in the same jurisdiction arising
      out of the same general allegations or circumstances, be liable for the
      reasonable fees and expenses of more than one separate firm of attorneys (in
      addition to local counsel) at any time for all such indemnified parties, which
      firm shall be designated in writing by the related Underwriter, if the
      indemnified parties under this Section 8 consist of one Underwriter or any
      of
      its controlling persons, by the Representative, if the indemnified parties
      under
      this Section 8 consist of more than one Underwriter or their controlling
      persons, or by the Depositor, if the indemnified parties under this Section
      8
      consist of the Depositor or any of the Depositor’s directors, officers or
      controlling persons.

     

    Each
      indemnified party, as a condition of the indemnity agreements contained in
      Section 8(a) and Section 8(b), shall use its good faith efforts to cooperate
      with the indemnifying party in the defense of any such action or claim. No
      indemnifying party shall be liable for any settlement of any such action
      effected without its written consent (which consent shall not be unreasonably
      withheld), but if settled with its written consent or if there be a final
      judgment for the plaintiff in any such action, the indemnifying party agrees
      to
      indemnify and hold harmless any indemnified party from and against any loss
      or
      liability (to the extent set forth in Section 8(a) or Section 8(b) as
      applicable) by reason of such settlement or judgment.

     

    Notwithstanding
      the foregoing paragraph, if at any time an indemnified party shall have
      requested an indemnifying party to reimburse the indemnified party for fees
      and
      expenses of counsel, the indemnifying party agrees that it shall be liable
      for
      any settlement of any proceeding effected without its written consent if (i)
      such settlement is entered into more than 30 days after receipt by such
      indemnifying party of the aforesaid request and (ii) such indemnifying party
      shall not have reimbursed the indemnified party in accordance with such request
      prior to the date of such settlement.

     

    (d)  If
      the
      indemnification provided for in Section 8(a) or 8(b) is unavailable or
      insufficient to hold harmless an indemnified party under subsection (a) or
      (b)
      above, then each indemnifying party shall contribute to the amount paid or
      payable by such indemnified party as a result of the losses, claims, damages
      or
      liabilities referred to in subsection (a) or (b) above (i) in such proportion
      as
      is appropriate to reflect the relative benefits received by the Depositor on
      the
      one hand and the Underwriters on the other from the offering of the Underwritten
      Certificates or (ii) if the allocation provided by clause (i) above is not
      permitted by applicable law, in such proportion as is appropriate to reflect
      not
      only the relative benefits referred to in clause (i) above but also the relative
      fault of the Depositor on the one hand and the Underwriters on the other in
      connection with the statements or omissions which resulted in such losses,
      claims, damages or liabilities as well as any other relevant equitable
      considerations. The relative benefits received by the Depositor on the one
      hand
      and the Underwriters on the other shall be deemed to be in the same proportion
      as the total net proceeds from the offering (before deducting expenses) received
      by the Depositor bear to the total underwriting discounts and commissions
      received by the Underwriters. The relative fault shall be determined by
      reference to, among other things, whether the untrue or alleged untrue statement
      of a material fact or the omission or alleged omission to state a material
      fact
      relates to information supplied by the Depositor or by the Underwriters and
      the
      parties’ relative intent, knowledge, access to information and opportunity to
      correct or prevent such untrue statement or omission. The amount paid by an
      indemnified party as a result of the losses, claims, damages or liabilities
      referred to above in the first sentence of this subsection (d) shall be deemed
      to include any legal or other expenses reasonably incurred by such indemnified
      party in connection with investigating or defending any action or claim which
      is
      the subject of this subsection (d). Notwithstanding the provisions of this
      subsection (d), no Underwriter shall be required to contribute any amount in
      excess of underwriting discounts and commissions received by such Underwriter.
      No person guilty of fraudulent misrepresentation (within the meaning of Section
      11(f) of the Securities Act) shall be entitled to contribution from any person
      who was not guilty of such fraudulent misrepresentation. The Underwriters’
obligations in this subsection (d) to contribute are several in proportion
      to
      their respective underwriting obligations and not joint.

     

    SECTION
      9.  Representations,
      Warranties and Agreements to Survive Delivery.
      All
      representations, warranties and agreements contained in this Agreement or
      contained in certificates of officers of the Depositor or the Seller submitted
      pursuant hereto shall remain operative and in full force and effect, regardless
      of any investigation made by or on behalf of the Underwriters or controlling
      persons thereof, or by or on behalf of the Depositor or the Seller, and shall
      survive delivery of any Underwritten Certificates to the
      Underwriters.

     

    SECTION
      10.  Default
      by One or More of the Underwriters.
      If one
      or more of the Underwriters participating in the public offering of the
      Underwritten Certificates shall fail at the Closing Date to purchase the
      Underwritten Certificates which it is (or they are) obligated to purchase
      hereunder (the “Defaulted Certificates”), then the non-defaulting Underwriters
      shall have the right, within 24 hours thereafter, to make arrangements for
      one
      or more of the non-defaulting Underwriters, or any other underwriters, to
      purchase all, but not less than all, of the Defaulted Certificates in such
      amounts as may be agreed upon and upon the terms herein set forth. If, however,
      the Underwriters have not completed such arrangements within such 24-hour
      period, then

     

    (a)  if
      the
      aggregate principal amount of Defaulted Certificates does not exceed 10% of
      the
      aggregate principal amount of the Underwritten Certificates to be purchased
      pursuant to this Agreement, the non-defaulting Underwriters named in this
      Agreement shall be obligated to purchase the full amount thereof in the
      proportions that their respective underwriting obligations hereunder bear to
      the
      underwriting obligations of all such non-defaulting Underwriters,
      or

     

    (b)  if
      the
      aggregate principal amount of Defaulted Certificates exceeds 10% of the
      aggregate principal amount of the Underwritten Certificates to be purchased
      pursuant to this Agreement, this Agreement shall terminate, without any
      liability on the part of any non-defaulting Underwriter.

     

    No
      action
      taken pursuant to this Section 10 shall relieve any defaulting Underwriter
      from
      the liability with respect to any default of such Underwriter under this
      Agreement.

     

    In
      the
      event of a default by any Underwriter as set forth in this Section 10, each
      of
      the Underwriters and the Depositor shall have the right to postpone the Closing
      Date for a period not exceeding five Business Days in order that any required
      changes in the Registration Statement or Prospectus or in any other documents
      or
      arrangements may be effected.

     

    SECTION
      11.  Termination
      of Agreement.
      The
      Underwriters may terminate this Agreement immediately upon notice to the
      Depositor, at any time at or prior to the Closing Date if the events set forth
      in Section 6(h) of this Agreement shall occur and be continuing, or if any
      other
      closing condition set forth in Section 6 shall not have been fulfilled when
      required to be fulfilled. In the event of any such termination, the provisions
      of Section 7, Section 8, Section 9, Section 14, Section 16 and Section 19 shall
      remain in effect.

     

    SECTION
      12.  Notices.
      All
      statements, requests, notices and agreements hereunder shall be in writing,
      and:

     

    (a)  if
      to the
      Underwriters, shall be delivered or sent to the Representative at J.P. Morgan
      Securities Inc., 270 Park Avenue, New York, New York 10017, Attention:
      Legal;

     

    (b)  if
      to the
      Depositor, shall be delivered or sent by mail, telex or facsimile transmission
      to care of Argent Securities Inc., 1100 Town & Country Road, Suite 1100,
      Orange, California 92868, Facsimile (714) 564-9639, Attention: General Counsel;
      and

     

    (c)  if
      to the
      Seller, shall be delivered or sent by mail, telex or facsimile transmission
      to
      care of Ameriquest Mortgage Company, 1100 Town & Country Road, Suite 1100,
      Orange, California 92868, Facsimile (714) 564-9639, Attention: General
      Counsel.

     

    SECTION
      13.  Persons
      Entitled to the Benefit of this Agreement.
      This
      Agreement shall inure to the benefit of and be binding upon the Underwriters,
      the Seller and the Depositor, and their respective successors. This Agreement
      and the terms and provisions hereof are for the sole benefit of only those
      persons, except that the representations, warranties, indemnities and agreements
      contained in this Agreement shall also be deemed to be for the benefit of the
      person or persons, if any, who control any of the Underwriters within the
      meaning of Section 15 of the Securities Act, and for the benefit of each
      Underwriter’s respective officers and directors and for the benefit of directors
      of the Depositor, officers of the Depositor who have signed the Registration
      Statement and any person controlling the Depositor within the meaning of Section
      15 of the Securities Act. Nothing in this Agreement is intended or shall be
      construed to give any person, other than the persons referred to in this Section
      13, any legal or equitable right, remedy or claim under or in respect of this
      Agreement or any provision contained herein.

     

    SECTION
      14.  Survival.
      The
      respective indemnities, representations, warranties and agreements of the
      Depositor, the Seller and the Underwriters contained in this Agreement, or
      made
      by or on behalf of them, respectively, pursuant to this Agreement, shall survive
      the delivery of and payment for the Underwritten Certificates and shall remain
      in full force and effect, regardless of any investigation made by or on behalf
      of any of them or any person controlling any of them.

     

    SECTION
      15.  Definition
      of the Term “Business Day”.
      For
      purposes of this Agreement, “Business Day” means any day on which the New York
      Stock Exchange is open for trading.

     

    SECTION
      16.  Governing
      Law; Submission to Jurisdiction.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York, without regard to principles of conflicts of law other than
      Section 5-1401 of the New York General Obligations Law which shall
      govern.

     

    The
      parties hereto hereby submit to the non-exclusive jurisdiction of the United
      States District Court for the Southern District of New York and any court in
      the
      State of New York located in the City and County of New York, and appellate
      court from any thereof, in any action, suit or proceeding brought against it
      or
      in connection with this Agreement or any of the related documents or the
      transactions contemplated hereunder or for recognition or enforcement of any
      judgment, and the parties hereto hereby agree that all claims in respect of
      any
      such action or proceeding may be heard or determined in New York State court
      or,
      to the extent permitted by law, in such federal court. The parties hereto hereby
      irrevocably waive, to the fullest extent permitted by law, any and all rights
      to
      trial by jury in any legal proceeding arising out of or relating to this
      Agreement or the transactions contemplated hereby.

     

    SECTION
      17.  Counterparts.
      This
      Agreement may be executed in counterparts and, if executed in more than one
      counterpart, the executed counterparts shall each be deemed to be an original
      but all such counterparts shall together constitute one and the same
      instrument.

     

    SECTION
      18.  Headings.
      The
      headings herein are inserted for convenience of reference only and are not
      intended to be part of, or to affect the meaning or interpretation of, this
      Agreement.

     

    SECTION
      19.  Obligations
      of the Seller.
      The
      Seller agrees with the Underwriters, for the sole and exclusive benefit of
      each
      such Underwriter, each such Underwriter’s officers and directors and each person
      controlling such Underwriter within the meaning of the Securities Act, and
      not
      for the benefit of any assignee thereof or any other person or persons dealing
      with such Underwriter as follows: in consideration of and as an inducement
      to
      their agreement to purchase the Underwritten Certificates from the Depositor,
      to
      indemnify and hold harmless each Underwriter against any failure by the
      Depositor to perform its obligations to the Underwriters hereunder, including,
      without limitation, any failure by the Depositor to honor any obligation to
      any
      Underwriter pursuant to Sections 8 and 14 (with respect to the survival of
      indemnities) hereof. In the case of any claim against the Seller by any
      Underwriter, any officer or director of any Underwriter or any person
      controlling any Underwriter, it shall not be necessary for such claimant to
      first pursue any remedy from or exhaust any proceedings against the
      Depositor.

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    If
      the
      foregoing correctly sets forth the agreement among the Depositor, the Seller
      and
      the Underwriters, please indicate your acceptance in the space provided for
      the
      purpose below.

     

    Very
      truly yours,

     

    ARGENT
      SECURITIES INC.

     

    By:___________________________________

    Name:

    Title:

     

    AMERIQUEST
      MORTGAGE COMPANY

     

    By:___________________________________

    Name:

    Title:

     

    CONFIRMED
      AND ACCEPTED, as of the date first above written:

     

    J.P.
      MORGAN SECURITIES INC., 

    as
      Representative of the several Underwriters

     

    By:__________________________________

    Name:

    Title:

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    
      	
              Underwriters

            	
              Principal
                Amount 

            	
              Proceeds
                to the Depositor

            
	
              J.P.
                Morgan Securities Inc.

            	 	 
	
              Class
                A-1

            	
              $322,821,900

            	
              99.8800%

            
	
              Class
                A-2A

            	
              $123,390,000

            	
              99.8500%

            
	
              Class
                A-2B

            	
              $57,915,000

            	
              99.8500%

            
	
              Class
                A-2C

            	
              $55,215,000

            	
              99.8500%

            
	
              Class
                A-2D

            	
              $37,386,000

            	
              99.8500%

            
	
              Class
                M-1

            	
              $39,781,800

            	
              99.8500%

            
	
              Class
                M-2

            	
              $33,278,850

            	
              99.8500%

            
	
              Class
                M-3

            	
              $11,857,950

            	
              99.8500%

            
	
              Class
                M-4

            	
              $16,065,900

            	
              99.8500%

            
	
              Class
                M-5

            	
              $11,857,950

            	
              99.8500%

            
	
              Class
                M-6

            	
              $8,797,950

            	
              99.8500%

            
	
              Class
                M-7

            	
              $11,092,950

            	
              99.8500%

            
	
              Class
                M-8

            	
              $6,502,950

            	
              99.8500%

            
	
              Class
                M-9

            	
              $6,120,450

            	
              99.8500%

            
	
              Class
                M-10

            	
              $4,590,000

            	
              88.7702%

            
	
              Citigroup
                Global Markets Inc.

            	 	 
	
              Class
                A-1

            	
              $322,821,900

            	
              99.8800%

            
	
              Class
                A-2A

            	
              $123,390,000

            	
              99.8500%

            
	
              Class
                A-2B

            	
              $57,915,000

            	
              99.8500%

            
	
              Class
                A-2C

            	
              $55,215,000

            	
              99.8500%

            
	
              Class
                A-2D

            	
              $37,386,000

            	
              99.8500%

            
	
              Class
                M-1

            	
              $39,781,800

            	
              99.8500%

            
	
              Class
                M-2

            	
              $33,278,850

            	
              99.8500%

            
	
              Class
                M-3

            	
              $11,857,950

            	
              99.8500%

            
	
              Class
                M-4

            	
              $16,065,900

            	
              99.8500%

            
	
              Class
                M-5

            	
              $11,857,950

            	
              99.8500%

            
	
              Class
                M-6

            	
              $8,797,950

            	
              99.8500%

            
	
              Class
                M-7

            	
              $11,092,950

            	
              99.8500%

            
	
              Class
                M-8

            	
              $6,502,950

            	
              99.8500%

            
	
              Class
                M-9

            	
              $6,120,450

            	
              99.8500%

            
	
              Class
                M-10

            	
              $4,590,000

            	
              88.7702%

            
	
              Deutsche
                Bank Securities Inc.

            
	
              Class
                A-1

            	
              $35,869,100

            	
              99.8800%

            
	
              Class
                A-2A

            	
              $13,710,000

            	
              99.8500%

            
	
              Class
                A-2B

            	
              $6,435,000

            	
              99.8500%

            
	
              Class
                A-2C

            	
              $6,135,000

            	
              99.8500%

            
	
              Class
                A-2D

            	
              $4,154,000

            	
              99.8500%

            
	
              Class
                M-1

            	
              $4,420,200

            	
              99.8500%

            
	
              Class
                M-2

            	
              $3,697,650

            	
              99.8500%

            
	
              Class
                M-3

            	
              $1,317,550

            	
              99.8500%

            
	
              Class
                M-4

            	
              $1,785,100

            	
              99.8500%

            
	
              Class
                M-5

            	
              $1,317,550

            	
              99.8500%

            
	
              Class
                M-6

            	
              $977,550

            	
              99.8500%

            
	
              Class
                M-7

            	
              $1,232,550

            	
              99.8500%

            
	
              Class
                M-8

            	
              $722,550

            	
              99.8500%

            
	
              Class
                M-9

            	
              $680,050

            	
              99.8500%

            
	
              Class
                M-10

            	
              $510,000

            	
              88.7702%

            
	
              UBS
                Securities LLC

            	 	 
	
              Class
                A-1

            	
              $35,869,100

            	
              99.8800%

            
	
              Class
                A-2A

            	
              $13,710,000

            	
              99.8500%

            
	
              Class
                A-2B

            	
              $6,435,000

            	
              99.8500%

            
	
              Class
                A-2C

            	
              $6,135,000

            	
              99.8500%

            
	
              Class
                A-2D

            	
              $4,154,000

            	
              99.8500%

            
	
              Class
                M-1

            	
              $4,420,200

            	
              99.8500%

            
	
              Class
                M-2

            	
              $3,697,650

            	
              99.8500%

            
	
              Class
                M-3

            	
              $1,317,550

            	
              99.8500%

            
	
              Class
                M-4

            	
              $1,785,100

            	
              99.8500%

            
	
              Class
                M-5

            	
              $1,317,550

            	
              99.8500%

            
	
              Class
                M-6

            	
              $977,550

            	
              99.8500%

            
	
              Class
                M-7

            	
              $1,232,550

            	
              99.8500%

            
	
              Class
                M-8

            	
              $722,550

            	
              99.8500%

            
	
              Class
                M-9

            	
              $680,050

            	
              99.8500%

            
	
              Class
                M-10

            	
              $510,000

            	
              88.7702%

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      A

     

    Underwriters’
      Information

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    generally
      be treated as capital gain or loss. Moreover, in the case of a bank or thrift
      institution, Code Section 582(c) would likely not apply to treat such gain
      or
      loss as ordinary.

     

    It
      is
      possible that the right to receive payments in respect of the Net WAC Rate
      Carryover Amounts could be treated as a partnership among the holders of all
      of
      the Certificates, in which case holders of such Certificates potentially would
      be subject to different timing of income and foreign holders of such
      Certificates could be subject to withholding in respect of any related Net
      WAC
      Rate Carryover Amount. Holders of the Class A and Mezzanine Certificates are
      advised to consult their own tax advisors regarding the allocation of issue
      price, timing, character and source of income and deductions resulting from
      the
      ownership of their Certificates.

     

    The
      REMIC
      regular interest component of each Class A and Mezzanine Certificate will be
      treated as assets described in Section 7701(a)(19)(C) of the Code, and as “real
      estate assets” under Section 856(c)(5)(B) of the Code, generally, in the same
      proportion that the assets of the Trust, exclusive of the assets not included
      in
      any REMIC, would be so treated. In addition, the interest derived from the
      REMIC
      regular interest component of each Class A and Mezzanine Certificate will be
      interest on obligations secured by interests in real property for purposes
      of
      section 856(c)(3) of the Code, subject to the same limitation in the preceding
      sentence. The Notional Principal Contract component of each Class A and
      Mezzanine Certificate will not qualify, however, as an asset described in
      Section 7701(a)(19)(C) of the Code, as a real estate asset under Section
      856(c)(5)(B) of the Code or as a “qualified mortgage” within the meaning of
      Section 860G(a)(3) of the Code. As a result, the Class A and Mezzanine
      Certificates generally may not be a suitable investment for a REMIC, real estate
      investment trust or an entity intending to qualify under Section 7701(a)(19)(C)
      of the Code.

     

    Because
      the Net WAC Rate Carryover Amount is treated as separate rights of the Class
      A
      and Mezzanine Certificates not payable by any REMIC elected by the Trust, such
      rights will not be treated as qualifying assets for any certificateholder that
      is a mutual savings bank, domestic building and loan association, real estate
      investment trust, or REMIC. In addition, any amounts received from the Net
      WAC
      Rate Carryover Reserve Account and the Swap Account will not be qualifying
      real
      estate income for real estate investment trusts or qualifying income for
      REMICs.

     

    It
      is not
      anticipated that any REMIC elected by the Issuing Entity will engage in any
      transactions that would subject it to the prohibited transactions tax as defined
      in Section 860F(a)(2) of the Code, the contributions tax as defined in Section
      860G(d) of the Code or the tax on net income from foreclosure property as
      defined in Section 860G(c) of the Code. However, in the event that any such
      tax
      is imposed on any REMIC elected by the Trust, such tax will be borne (i) by
      the
      Trustee, if the Trustee has breached its obligations with respect to REMIC
      compliance under the Pooling and Servicing Agreement, (ii) by the Master
      Servicer, if the Master Servicer has breached its obligations with respect
      to
      REMIC compliance under the Pooling and Servicing Agreement and (iii) otherwise
      by the Trust, with a resulting reduction in amounts otherwise distributable
      to
      holders of the Class A and Mezzanine Certificates. See “Description of the
      Securities” and “Federal Income Tax Consequences REMICs” in the prospectus. The
      responsibility for filing annual federal information returns and other reports
      will be borne by the Trustee. See “Federal Income Tax Consequences—REMICs” in
      the prospectus.

     

    For
      further information regarding the federal income tax consequences of investing
      in the Class A and Mezzanine Certificates, see “Federal Income Tax
      Consequences—REMICs” in the prospectus.

     

     

    METHOD
      OF DISTRIBUTION

     

    Subject
      to the terms and conditions set forth in the Underwriting Agreement, dated
      the
      date of this prospectus supplement (the “Underwriting Agreement”), the Depositor
      has agreed to sell, and each of the Underwriters severally has agreed to
      purchase the portion of the Offered Certificates set forth opposite their
      respective names. Each Underwriter is obligated to purchase all of its allocated
      portion of the Offered Certificates, if it purchases any. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    
      	
              Underwriters

            	
              Original

              Certificate

              Principal

              Balance
                of

              the
                Class A-1

              Certificates
                ($)

            	
              Original

              Certificate

              Principal

              Balance
                of

              the
                Class A-2A

              Certificates
                ($)

            	
              Original

              Certificate

              Principal

              Balance
                of

              the
                Class A-2B

              Certificates
                ($)

            	
              Original

              Certificate

              Principal

              Balance
                of

              the
                Class A-2C

              Certificates
                ($)

            	
              Original

              Certificate

              Principal

              Balance
                of

              the
                Class A-2D

              Certificates
                ($)

            	
              Original

              Certificate

              Principal

              Balance
                of

              the
                Class M-1

              Certificates
                ($)

            	
              Original

              Certificate

              Principal

              Balance
                of

              the
                Class M-2

              Certificates
                ($)

            
	
              J.P.
                Morgan Securities Inc.

            	
              322,821,900

            	
              123,390,000

            	
              57,915,000

            	
              55,215,000

            	
              37,386,000

            	
              39,781,800

            	
              33,278,850

            
	
              Citigroup
                Global Markets Inc.

            	
              322,821,900

            	
              123,390,000

            	
              57,915,000

            	
              55,215,000

            	
              37,386,000

            	
              39,781,800

            	
              33,278,850

            
	
              Deutsche
                Bank Securities Inc.

            	
              35,869,100

            	
              13,710,000

            	
              6,435,000

            	
              6,135,000

            	
              4,154,000

            	
              4,420,200

            	
              3,697,650

            
	
              UBS
                Securities LLC

            	
              35,869,100

            	
              13,710,000

            	
              6,435,000

            	
              6,135,000

            	
              4,154,000

            	
              4,420,200

            	
              3,697,650

            

    

    

    

    
      	
              Underwriters

            	
              Original

              Certificate

              Principal

              Balance
                of

              the
                Class M-3

              Certificates
                ($)

            	
              Original

              Certificate

              Principal

              Balance
                of

              the
                Class M-4

              Certificates
                ($)

            	
              Original

              Certificate

              Principal

              Balance
                of

              the
                Class M-5

              Certificates
                ($)

            	
              Original

              Certificate

              Principal

              Balance
                of

              the
                Class M-6

              Certificates
                ($)

            	
              Original

              Certificate

              Principal

              Balance
                of

              the
                Class M-7

              Certificates
                ($)

            	
              Original

              Certificate

              Principal

              Balance
                of

              the
                Class M-8

              Certificates
                ($)

            	
              Original

              Certificate

              Principal

              Balance
                of

              the
                Class M-9

              Certificates
                ($)

            	
              Original

              Certificate

              Principal

              Balance
                of

              the
                Class M-10

              Certificates
                ($)

            
	
              J.P.
                Morgan Securities Inc.

            	
              11,857,950

            	
              16,065,900

            	
              11,857,950

            	
              8,797,950

            	
              11,092,950

            	
              6,502,950

            	
              6,120,450

            	
              4,590,000

            
	
              Citigroup
                Global Markets Inc.

            	
              11,857,950

            	
              16,065,900

            	
              11,857,950

            	
              8,797,950

            	
              11,092,950

            	
              6,502,950

            	
              6,120,450

            	
              4,590,000

            
	
              Deutsche
                Bank Securities Inc.

            	
              1,317,550

            	
              1,785,100

            	
              1,317,550

            	
              977,550

            	
              1,232,550

            	
              722,550

            	
              680,050

            	
              510,000

            
	
              UBS
                Securities LLC

            	
              1,317,550

            	
              1,785,100

            	
              1,317,550

            	
              977,550

            	
              1,232,550

            	
              722,550

            	
              680,050

            	
              510,000

            

    

     

    The
      Depositor has been advised by the Underwriters that they propose initially
      to
      offer the Offered Certificates of each class to the public at the offering
      price
      set forth on the cover page and to certain dealers at such price less a selling
      concession, not in excess of the percentage set forth in the table below of
      the
      Certificate Principal Balance of the related class of Offered Certificates.
      The
      Underwriters may allow and such dealers may reallow a reallowance discount,
      not
      in excess of the percentage set forth in the table below of the Certificate
      Principal Balance of the related class of Offered Certificates, to certain
      other
      dealers.
      After
      the initial public offering, the public offering prices, such concessions and
      such discounts may be changed.

     

    
      	
              Class
                of Certificates

            	
              Selling
                Concession

            	
              Reallowance
                Discount

            
	
              Class
                A-1

            	
              0.0720%

            	
              0.0360%

            
	
              Class
                A-2A

            	
              0.0900%

            	
              0.0450%

            
	
              Class
                A-2B

            	
              0.0900%

            	
              0.0450%

            
	
              Class
                A-2C

            	
              0.0900%

            	
              0.0450%

            
	
              Class
                A-2D

            	
              0.0900%

            	
              0.0450%

            
	
              Class
                M-1

            	
              0.0900%

            	
              0.0450%

            
	
              Class
                M-2

            	
              0.0900%

            	
              0.0450%

            
	
              Class
                M-3

            	
              0.0900%

            	
              0.0450%

            
	
              Class
                M-4

            	
              0.0900%

            	
              0.0450%

            
	
              Class
                M-5

            	
              0.0900%

            	
              0.0450%

            
	
              Class
                M-6

            	
              0.0900%

            	
              0.0450%

            
	
              Class
                M-7

            	
              0.0900%

            	
              0.0450%

            
	
              Class
                M-8

            	
              0.0900%

            	
              0.0450%

            
	
              Class
                M-9

            	
              0.0900%

            	
              0.0450%

            
	
              Class
                M-10

            	
              0.0900%

            	
              0.0450%

            

    

    

    Until
      the
      distribution of the Offered Certificates is completed, rules of the Securities
      and Exchange Commission may limit the ability of the Underwriters and certain
      selling group members to bid for and purchase the Offered Certificates. As
      an
      exception to these rules, the Underwriters are permitted to engage in certain
      transactions that stabilize the price of the Offered Certificates. Such
      transactions consist of bids or purchases for the purpose of pegging, fixing
      or
      maintaining the price of the Offered Certificates.

     

    In
      general, purchases of a security for the purpose of stabilization or to reduce
      a
      short position could cause the price of the security to be higher than it might
      be in the absence of such purchases.

     

    Neither
      the Depositor nor any of the Underwriters makes any representation or prediction
      as to the direction or magnitude of any effect that the transactions described
      above may have on the prices of the Offered Certificates. In addition, neither
      the Depositor nor any of the Underwriters makes any representation that the
      Underwriters will engage in such transactions or that such transactions, once
      commenced, will not be discontinued without notice.

     

    The
      Offered Certificates are offered subject to receipt and acceptance by the
      Underwriters, to prior sale and to each Underwriter’s right to reject any order
      in whole or in part and to withdraw, cancel or modify the offer without notice.
      It
      is
      expected that delivery of the Offered Certificates will be made through the
      facilities of DTC, Clearstream and the Euroclear System on or about the Closing
      Date.
      The
      Offered Certificates will be offered in Europe and the United States of
      America.

     

    The
      Underwriting Agreement provides that the Depositor and the Seller will indemnify
      each Underwriter against certain civil liabilities, including liabilities under
      the Securities Act of 1933, as amended, or will contribute to payments an
      Underwriter may be required to make in respect thereof.

     

     

    SECONDARY
      MARKET

     

    There
      is
      currently no secondary market for the Class A and Mezzanine Certificates and
      there can be no assurance that a secondary market for the Class A and Mezzanine
      Certificates will develop or, if it does develop, that it will continue.
Each
      Underwriter intends to establish a market in the classes of Offered Certificates
      purchased by it, but no Underwriter has any obligation to do so.
      The
      primary source of information available to investors concerning the Class A
      and
      Mezzanine Certificates will be the monthly reports made available via the
      Trustee’s internet website, which will include information as to the outstanding
      Certificate Principal Balance of the Class A and Mezzanine Certificates. There
      can be no assurance that any additional information regarding the Class A and
      Mezzanine Certificates will be available through any other source. In addition,
      the Depositor is not aware of any source through which price information about
      the Class A and Mezzanine Certificates will be generally available on an ongoing
      basis. The limited nature of such information regarding the Class A and
      Mezzanine Certificates may adversely affect the liquidity of the Class A and
      Mezzanine Certificates, even if a secondary market for the Offered Certificates
      becomes available.

     

    LEGAL
      OPINIONS

     

    Certain
      legal matters relating to the Class A and Mezzanine Certificates will be passed
      upon for the Depositor by Thacher Proffitt & Wood llp,
      New
      York, New York and for the Underwriters by McKee Nelson LLP.

     

    RATINGS

     

    It
      is a
      condition to the issuance of the Certificates that the Offered Certificates
      receive the following ratings from Fitch Ratings (“Fitch”), Moody’s Investors
      Service, Inc. (“Moody’s”) and Standard & Poor’s Ratings Services, a division
      of the McGraw-Hill Companies, Inc. (“S&P”; and together with Fitch and
      Moody’s, the “Rating Agencies”):

    

    
      	
              Offered

              Certificates

            	
              Fitch

            	
              Moody’s

            	
              S&P

            
	
              A-1

            	
              AAA

            	
              Aaa

            	
              AAA

            
	
              A-2A

            	
              AAA

            	
              Aaa

            	
              AAA

            
	
              A-2B

            	
              AAA

            	
              Aaa

            	
              AAA

            
	
              A-2C

            	
              AAA

            	
              Aaa

            	
              AAA

            
	
              A-2D

            	
              AAA

            	
              Aaa

            	
              AAA

            
	
              M-1

            	
              AA+

            	
              Aa1

            	
              AA+

            
	
              M-2

            	
              AA

            	
              Aa2

            	
              AA

            
	
              M-3

            	
              AA

            	
              Aa3

            	
              AA-

            
	
              M-4

            	
              A+

            	
              A1

            	
              A+

            
	
              M-5

            	
              A

            	
              A2

            	
              A

            
	
              M-6

            	
              A-

            	
              A3

            	
              A-

            
	
              M-7

            	
              BBB+

            	
              Baa1

            	
              BBB+

            
	
              M-8

            	
              BBB

            	
              Baa2

            	
              BBB

            
	
              M-9

            	
              BBB

            	
              Baa3

            	
              BBB-

            
	
              M-10

            	
              BBB-

            	
              Ba1

            	
              BB+

            

    

    

    The
      ratings of the Rating Agencies assigned to asset-backed pass-through
      certificates address the likelihood of the receipt by certificateholders of
      all
      distributions to which such certificateholders are entitled. The ratingexv10w47

 

Exhibit 10.47

PRIVATE AND CONFIDENTIAL

DATED APRIL 4, 2005

     (1) DOLLAR FINANCIAL UK LIMITED

     (2) PAUL MILDENSTEIN

SERVICE AGREEMENT

Freeth Cartwright LLP

Cumberland Court

80 Mount Street

Nottingham

NG1 6HH

DX: 10039 NOTTINGHAM

Telephone: 0115 936 9369

Fax: 0115 859 9617

 

 

CONTENTS

	 	 	 	 	 
	1. DEFINITIONS AND INTERPRETATION
	 	 	3	 
	2. APPOINTMENT, TERM AND NOTICE
	 	 	5	 
	3. DUTIES
	 	 	6	 
	4. PLACE OF WORK
	 	 	7	 
	5. HOURS OF WORK
	 	 	7	 
	6. SALARY
	 	 	7	 
	7. BONUS AND EQUITY
	 	 	8	 
	8. PENSION AND OTHER BENEFITS
	 	 	8	 
	9. EXPENSES
	 	 	9	 
	10. MOTOR CAR
	 	 	9	 
	11. HOLIDAYS
	 	 	9	 
	12. ABSENCE FROM WORK
	 	 	10	 
	13. OBLIGATIONS DURING EMPLOYMENT
	 	 	11	 
	14. TERMINATION OF EMPLOYMENT
	 	 	13	 
	15. SALE OR RECONSTRUCTION OF THE COMPANY
	 	 	14	 
	16. RESTRICTIONS ON THE EXECUTIVE AFTER TERMINATION OF EMPLOYMENT
	 	 	14	 
	17. REDUCTION OF LENGTH OF POST TERMINATION RESTRICTIONS
	 	 	18	 
	18. COMPANY PROPERTY
	 	 	18	 
	19. INTELLECTUAL PROPERTY
	 	 	18	 
	20. DISCIPLINARY AND GRIEVANCE PROCEDURES AND SUSPENSION
	 	 	19	 
	21. DEDUCTIONS
	 	 	19	 
	22. DATA PROTECTION
	 	 	19	 
	23. NOTICES
	 	 	20	 
	24. CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999
	 	 	20	 
	25. WARRANTY
	 	 	20	 
	26. COLLECTIVE AGREEMENTS
	 	 	20	 
	27. LAW AND JURISDICTION
	 	 	21	 

 

 

THIS SERVICE AGREEMENT is made on April 4, 2005

BETWEEN

	 	 	 
	(1) the Company

	 	Dollar Financial UK Ltd
	 
	 	 
	 

	 	Castlebridge Office Village, Kirtley Drive, Castle
	 
	 	 
	 

	 	Marina, Nottingham, NG7 2LD.
	 
	 	 
	(2) the Executive

	 	Paul Mildenstein
	 
	 	 
	 

	 	2 Redhouse Farm Barn, Beausale,
Warwickshire CV35 7NZ. and includes the Particulars of Terms of Employment required by the
Employment Rights Act 1996 (as amended).

OPERATIVE PROVISIONS:

1. DEFINITIONS AND INTERPRETATION

	 	1.1.	 	In this Agreement the following words and expressions have the following
meanings:

	 	 	 
	Confidential Information

	 	shall include, but not be limited to, the
following (whether recorded in writing, on
computer disk or in any other manner) trade
secrets; customer data, including but not limited
to, any such information disclosing the names and
addresses of customers and suppliers of the
Company and/or any Group Company, the person at
such contact or supplier to contact, the
requirements of such customer or supplier,
discounts offered by the Company and/or any Group
Company; investment and pricing policies; product
performance data; marketing information;
technical designs or specifications of the

 

 

	 	 	 
	 

	 	Company’s products; business plans or dealings
relating to the current or future activities of
the Company and/or any Group Company, including
the timing of all or any such matters; know-how;
computer passwords; product lines; research
activities and results; internal management
accounts, any document marked “confidential” or
any information which the Executive has been told
is confidential or which the Executive might
reasonably expect the Company and/or any Group
Company would regard as confidential or which by
its very nature is confidential to the Company,
or any information which has been given to the
Company and/or any Group Company in confidence by
customers, suppliers or other persons, and
whether or not recorded in documentary form,
computer disk or tape, which the Executive shall
acquire at any time during the Executive’s
employment but which does not form part of the
Executive’s own stock in trade provided that it
shall not include any information or knowledge
which is already in the public domain or may
subsequently come into the public domain after
the Termination Date other than by way of
unauthorised disclosure by the Executive;
	 
	 	 
	Group

	 	the Company and any Group Company;
	 
	 	 
	Group Company

	 	means:
	 
	 	 
	 

	 	1. a holding company of the Company as defined by
s736 of the Companies Act

 

 

	 	 	 
	 

	 	1985;
	 
	 	 
	 

	 	2. a subsidiary as defined by s736 of the
Companies Act 1985 of the Company, or of its
holding company;
	 
	 	 
	 

	 	3. a company over which the Company has control
within the meaning of s840 of the Income and
Corporation 
    Taxes Act 1988; or
	 
	 	 
	 

	 	4. a subsidiary undertaking of the Company as
defined by s258 of the Companies Act 1985.
	 
	 	 
	Material Interest

	 	the holding of any position as director, officer,
employee, consultant, partner, principal or
agent;
	 
	 	 
	Termination Date

	 	the date on which the Executive’s employment
under this Agreement terminates and references to
“from the Termination Date” mean from and
including the date of termination.

	 	1.2.	 	Unless the context otherwise requires words denoting the singular shall include
the plural and vice versa and reference to any gender shall include all other genders.
	 
	 	1.3.	 	References to the word “include” or “including” are to be construed without
limitation.
	 
	 	1.4.	 	References in this Agreement to statutory provisions include all modifications
and re-enactments of them and all subordinate legislation under them.
	 
	 	1.5.	 	Headings in this Agreement are inserted for convenience only and shall not
affect its construction.

2. APPOINTMENT, TERM AND NOTICE

	 	2.1.	 	The Company will employ the Executive and the Executive will serve the Company
as its Managing Director.

 

 

	 	2.2.	 	The Executive’s appointment shall commence on July 1, 2005 or sooner and shall
continue (subject to earlier termination as provided in this Agreement) by either party
giving to the other six calendar months’ written notice.
	 
	 	2.3.	 	The Executive agrees that at its absolute discretion the Company may terminate
the Executive’s employment under this Agreement with immediate effect by paying the
Executive in lieu of his notice period or in lieu of the remainder of his notice period
if at the Company’s request the Executive has worked during part of the notice period.
For this purpose, the Executive agrees that the payment in lieu of notice will be his
basic monthly salary and the value of contractual benefits and allowances for his
notice period, after deducting Income Tax and National Insurance contributions, and
specifically excluding from such calculation any, fee, bonus or commission referable to
his employment whether payable under this Agreement or otherwise in respect of that
period.
	 
	 	2.4.	 	The Executive’s continuous employment with the Company for the purposes of the
Employment Rights Act 1996 (as amended) will commence on of before July 1, 2005. No
employment with a previous employer counts as part of the Executive’s period of
continuous employment.

3. DUTIES

	 	3.1.	 	The Executive will carry out the duties and functions, exercise the powers and
comply with the instructions assigned or given to the Executive from time to time by
Jeff Weiss, Chairman and Chief Executive Officer or Don Gayhardt, President. Except
when prevented by illness, accident or holiday the Executive will devote his time,
attention and skill to the affairs of the Company and/or any Group Company and where
appropriate do his best to promote its interests provided that the Company may at any
time for any reason require the Executive to cease performing and exercising all or any
of the Executive’s duties, functions or powers.
	 
	 	3.2.	 	The Executive will at all times keep Jeff Weiss, Chairman and Chief Executive
Officer or Don Gayhardt, President promptly and fully informed (in writing if so
requested) of the conduct of the business or affairs of the Company and/or any

 

 

	 	 	 	Group Company and provide such explanations and assistance as Jeff Weiss, Chief
Executive Officer or Don Gayhardt, President may require in connection with such
business or affairs and the Executive’s employment under this Agreement.
	 
	 	3.3.	 	The Executive will not without the prior consent of Jeff Weiss, Chairman and
Chief Executive or Don Gayhardt, President accept or take up any other employment nor
will he accept any form of paid or unpaid consultative or other work whilst employed by
the Company (or any Group Company). Existing commitments need to be disclosed prior to
the signing of this agreement to be included and consent for future commitments will be
at the discretion of Jeff Weiss, Chairman and Chief Executive.

4. PLACE OF WORK

	 	4.1.	 	The Executive will perform the Executive’s duties at Castlebridge Office
Village, Kirtley Drive, Castle Marina, Nottingham, NG7 2LD or such other place of
business of the Company inside or outside of the United Kingdom as the Company may
require.
	 
	 	4.2.	 	In the performance of the Executive’s duties, the Executive may be required to
travel both throughout and outside the United Kingdom.

5. HOURS OF WORK

	 	5.1.	 	The Company’s normal office hours are from 9:00 am to 5:30 pm Monday to Friday
but the Executive will work such hours as are needed for the proper performance of his
duties including hours outside the Company’s normal office hours without additional
remuneration in order to meet the requirements of the business.

6. SALARY

	 	6.1.	 	The Executive’s basic annual salary is £150,000 which will accrue from day to
day and be payable monthly in arrears by BACS on the last business day of each month or
the nearest working day before that.

 

 

	 	6.2.	 	The Executive’s salary will be subject to review annually by the Company in its
absolute discretion.

7. BONUS AND EQUITY

	 	7.1.	 	The Executive may while employed by the Company be entitled to an equity
incentive and to be paid a bonus of such amount and on such terms as may be agreed
between the Company and the Executive and to be set out in a separate agreement between
the Company and the Executive.
	 
	 	7.2.	 	The Company reserves the right in its absolute discretion to vary the terms of
and/or the measurement criteria of bonus payable under this Agreement.

8. PENSION AND OTHER BENEFITS

	 	8.1.	 	The Executive will be entitled to participate in the Company’s pension scheme
subject to and upon the rules of the pension scheme from time to time in effect. A
copy of the rules of the pension scheme can be obtained from the Company on request.
	 
	 	8.2.	 	The Company will contribute in equal monthly instalments an amount equal to 5%
of the Executive’s basic salary (or, if less, the maximum amount permitted by the
Inland Revenue) during each year of his employment under this Agreement to the pension
scheme referred to in Clause 8.1; PROVIDED THAT, as a condition of making such
contribution, the Company may require the Executive to contribute 5% of his basic
salary to such pension scheme.
	 
	 	8.3.	 	There is no contracting out certificate in force in respect of the Executive’s
employment under the provisions of the Pension Schemes Act 1993.
	 
	 	8.4.	 	During the Executive’s employment the Company will provide the Executive at the
Company’s expense with Death in Service Benefit at the rate of 4 times basic salary
under the Company’s scheme subject to and upon the rules of the scheme from time to
time in force and to the Executive being eligible to participate in or benefit from the
scheme.
	 
	 	8.5.	 	During the Executive’s employment the Company will provide the Executive and
his immediate family at the Company’s expense with cover under the Company’s

 

 

	 	 	 	Private Healthcare Scheme subject to and upon the rules of the said scheme from time
to time in force and to the Executive (and where appropriate the Executive’s family)
being eligible to participate in or benefit from the scheme.
	 
	 	8.6.	 	In respect of the benefits provided to the Executive under this Clause 8 the
Company reserves the right to terminate or substitute other schemes for them or amend
the scale or level of benefits.

9. EXPENSES

	 	 	The Company will reimburse to the Executive all business expenses reasonably and properly
incurred in the performance of the Executive’s duties under this Agreement on hotel,
traveling, entertainment and other similar items provided that the Executive produces to the
Company all appropriate receipts or other satisfactory evidence of expenditure.

10. MOTOR CAR

	 	10.1.	 	The Company shall provide the Executive with a car allowance in the sum of
£15,000 per annum, to be paid on a monthly schedule.

11. HOLIDAYS

	 	11.1.	 	In this clause “holiday year” means the period from January 1st to December
31’s in each year.
	 
	 	11.2.	 	In addition to statutory bank and public holidays the Executive will be
entitled to 25 working days’ paid holiday in each holiday year.
	 
	 	11.3.	 	All holidays are to be taken at such times as may be approved by Jeff Weiss,
Chairman and Chief Executive Officer or Don Gayhardt, President with two weeks notice.
	 
	 	11.4.	 	The Executive may not carry holiday forward to the following holiday year
without express permission of Jeff Weiss or Don Gayhardt.
	 
	 	11.5.	 	The Executive will not be entitled to any pay in lieu of holiday except when
employment terminates and the Executive has not taken his accrued entitlement as

 

 

	 	 	 	at the Termination Date. On termination, the Executive’s holiday entitlement will
be calculated pro-rata.

	 	11.6.	 	Where the Executive has taken more or less than his holiday entitlement in the
holiday year in which the employment terminates, a proportionate adjustment will be
made by way of addition to or deduction from as appropriate the Executive’s final gross
salary calculated on a pro-rate basis. A day’s pay for the purposes of this Clause 11
will be 1/260 of the Executive’s annual basic salary.

12. ABSENCE FROM WORK

	 	12.1.	 	If the Executive is absent from work due to illness injury or other incapacity
the Executive must notify the Company as soon as possible on the first day of absence
that the Executive will be unable to attend. The Executive must then keep the Company
informed on a regular basis of his progress and when he expects to return to work.
	 
	 	12.2.	 	If the Executive is absent from work for between three to seven days
(including weekends), the Executive is required to complete a self-certification form
stating the dates and reason for absence including details of illness, injury or
incapacity on non working days as this information is required by the Company to
calculate Statutory Sick Pay (“SSP”) entitlement.
	 
	 	12.3.	 	If the Executive is absent from work due to illness or inquiry which continues
for seven or more consecutive days (including weekends) the Executive must provide the
Company with a medical certificate and give or send it immediately to the Company. If
absence is prolonged the Executive should continue to submit regular medical
certificates, on a weekly basis, to cover the entire period of his absence and to keep
the Company informed generally as to the Executive’s condition and the likely date of
return to work.
	 
	 	12.4.	 	“Qualifying days” for SSP purposes are Monday to Friday inclusive. The first
three qualifying days are waiting days for which no SSP is payable.
	 
	 	12.5.	 	Failure to comply with the above procedures may disqualify the Executive from
receiving SSP.

 

 

	 	12.6.	 	The Company will be entitled, at its expense, to require the Executive to be
examined by an independent medical practitioner of the Company’s choice at any time and
the Executive agrees that the Doctor carrying out the examination may disclose to and
discuss with the Company the results of the examination.

13. OBLIGATIONS DURING EMPLOYMENT

	 	13.1.	 	During employment by the Company the Executive shall:

	 	13.1.1.	 	abide by any relevant Company policy, rule or procedure which may be in
force from time to time;
	 
	 	13.1.2.	 	not without the Company’s prior written consent hold any Material Interest
in any person, firm, company, business or organisation which:

	 	13.1.2.1.	 	is in direct competition with the Company or the Group in
cheque cashing or pay day cash advances;
	 
	 	13.1.2.2.	 	impairs or might reasonably be thought by the Company or the
Group to impair the Executive’s ability to act at all times in the
best interests of the Company; or
	 
	 	13.1.2.3.	 	requires the Executive to disclose Confidential Information in
order properly to discharge his duties to or further his interest in
such person, firm, company, organisation or business;

	 	13.1.3.	 	not divulge Confidential Information or obtain or seek to obtain any direct
or indirect financial advantage from the disclosure of such information
provided that this obligation not to divulge Confidential Information does not
apply to disclosures made with the prior consent of the Company and/or the
Group or required by a Court Order;
	 
	 	13.1.4.	 	not directly or indirectly receive or obtain in respect of any goods or
services sold or purchased or other business transacted (whether or not by the
Executive) by or on behalf of the Company and/or the Group any discount,
rebate, commission or other inducement (whether in cash or in kind) which is
not authorised by the Company’s or Group’s rules or guidelines from time to
time and if the Executive or any

 

 

	 	 	 	person, firm, company, organisation or business in which the Executive
holds any Material Interest shall obtain any such discount, rebate,
commission or inducement the Executive shall immediately account to the
Company and/or the Group for the amount the Executive or they receive;
	 
	 	13.1.5.	 	not introduce to any person, firm or company any business of any kind with
which the Company or any Group Company for which the Executive has performed
services under this Agreement is able to deal and not have any financial
interest in, or derive any financial benefit from, contracts or transactions
entered into by the Company or any other Group Company for which the Executive
performed services under this Agreement with any third party, without first
disclosing such Interest or benefit to the Jeff Weiss or Don Gayhardt and
obtaining their approval;
	 
	 	13.1.6.	 	not make any notes or memoranda relating to any matter within the scope of
the business dealings or affairs of the Company or any Group Company otherwise
than for the benefit of the Company or the Group or without the prior consent
of Jeff Weiss or Don Gayhardt, remove from the Company premises or copy or
allow others to copy the contents of any document, disk, tape or other tangible
items which contains any Confidential Information or which belongs to the
Company or the Group;
	 
	 	13.1.7.	 	if so requested by the Company delete all Confidential Information from any
computer disks, tapes or other reusable material in the Executive’s possession
or under the Executive’s control and destroy all other documents and tangible
items in the Executive’s possession or under the Executive’s control which
contain or refer to any Confidential Information;

	 	13.2.	 	The provisions of this Clause 13 are subject to the Public Interest Disclosure
Act 1998 and the Executive’s rights under that Act are unaffected.

 

 

14. TERMINATION OF EMPLOYMENT

	 	14.1.	 	The Company may terminate the Executive’s employment immediately by notice in
writing without any entitlement to notice or payment in lieu of notice (under Clause
2.3), any compensation, damages or remuneration for subsequent periods payable by
virtue of common law or any statute if the Executive:

	 	14.1.1.	 	commits, repeats or continues (after written warning) any serious breach of
this Agreement;
	 
	 	14.1.2.	 	is guilty of gross misconduct as defined in the Company’s disciplinary
procedure)
	 
	 	14.1.3.	 	commits any act of dishonesty relating to the Company or any Group Company;
	 
	 	14.1.4.	 	is convicted of any criminal offence (other than an offence which does not
in the opinion of the Board affect the Executive’s employment under road
traffic legislation in the United Kingdom or elsewhere for which the Executive
is not sentenced to any term of imprisonment, whether immediate or suspended);
	 
	 	14.1.5.	 	becomes bankrupt or enters into or makes any arrangement or composition with
or for the benefit of his creditor generally.

	 	14.2.	 	This Agreement shall automatically terminate on the Executive reaching age 65
(the “Retirement Date”) unless the Company and the Executive agree at any time prior to
the Retirement Date that the Agreement should continue after the Retirement Date.
	 
	 	14.3.	 	Where either party gives notice to terminate this Agreement under Clause 2.2
or if the Executive resigns without notice and the Company does not accept the
resignation the Company may in its absolute discretion for all or part of the notice
period under Clause 2.2 exclude the Executive from its premises; and/or require the
Executive to resign carry out specified duties for the Company other than those
referred to in Clause 3 or to carry out no duties; and/or instruct the Executive not to
communicate with suppliers, customers, employees, agents or representatives of the
Company or any Group Company until the employment has

 

 

	 	 	 	terminated. During the notice period the Executive will be entitled to be paid
salary and all other contractual benefits in accordance with this Agreement.
	 
	 	14.4.	 	On commencement of any period of exclusion pursuant to Clause 14.3 the
Executive will deliver up to the Company in accordance with Clause 18 all property
belonging to the Company or any Group Company.

15. SALE OR RECONSTRUCTION OF THE COMPANY

	 	 	The Executive will have no claim against the Company or any Group Company in respect of the
termination of his employment under this Agreement in connection with the sale of the whole
or a substantial part of the business or undertaking of the Company or on or in connection
with the sale by the Company of any Group Company or on or by reason of the liquidation of
the Company for the purposes of amalgamation or reconstruction (whether or not by reason of
insolvency) if Executive is offered employment on no less favourable terms than those
contained in this Agreement (apart from the identity of the employer) with any person, firm
or company as a result of such sale or of such amalgamation or reconstruction.

16. RESTRICTIONS ON THE EXECUTIVE AFTER TERMINATION OF EMPLOYMENT

	 	16.1.	 	Definitions
	 
	 	 	 	In this Clause 16 the following words and expressions have the following meanings:

	 	 	 
	Businesses

	 	The business of cheque cashing and pay day
cash advances
	 
	 	 
	Critical Person

	 	any person who was an employee, director or
consultant employed or engaged by the Company
or any Group Company at any time within the
Relevant Period and with whom the Executive
had direct or indirect contact or frequent
dealings with or was responsible for and who
by reason of such employment or engagement and
in particular his seniority and the expertise
or knowledge of trade

 

 

	 	 	 
	 

	 	secrets or Confidential
Information of the Company or any Group
Company or knowledge of or influence over the
clients, customers or suppliers of the Company
or any Group Company is likely to be able to
assist or benefit the business in or proposing
to be in competition with the Company or any
Group Company;
	 
	 	 
	Relevant Customer

	 	any person, firm or company who or which at
any time during the Relevant Period is or was
negotiating with, a client of customer of, or
in the habit of dealing with, the Company or
any Group Company for the sale or supply of
Relevant Products or Services, and with whom
the Executive had personal contact or dealings
on behalf of the Businesses or of which the
Executive had personal knowledge during the
Relevant Period in the course of the
Executive’s employment under this Agreement;
	 
	 	 
	Relevant Period

	 	the period of one year immediately before the
Termination Date;
	 
	 	 
	Relevant Products or
	 	 
	 
	 	 
	Services

	 	Cheque cashing and pay day cash advances
	 
	 	 
	Restricted Territory

	 	Within the United Kingdom.

	16.2.	 	Reasonableness of Restrictions
	 
	 	 	The Executive acknowledges that in the ordinary course of his employment the
Executive will be exposed to Confidential Information arid the Company’s and
Group’s, customers, suppliers and employees for the purposes of the Businesses. The
Executive acknowledges that such Confidential Information and contact with
customers, suppliers and employees may not be readily available to others engaged in
a business similar to that of the Company or any Group Company or to the general
public and that a disclosure of Confidential Information and or contact with
customers, suppliers and/or employees as set out in Clause 16.5 will be liable to
cause significant harm to the Company or any Group Company. The Executive agrees
that the provisions of this Clause 16 are necessary and

 

 

	 	 	reasonable to protect the legitimate interests of the Company and the Group and
its/their customers.
	 
	16.3.	 	Confidential Information
	 
	 	 	After the termination of employment for whatever reason the Executive will not at
any time and in any manner use or divulge or communicate to any person, firm,
company or other organisation any Confidential Information except if such disclosure
is with the prior written consent of the Company or required by a Court Order.
	 
	16.4.	 	Non Competition

	 	16.4.1.	 	The Executive agrees that he will not, without the prior consent of the
Company, directly or indirectly and whether alone or in conjunction with or on
behalf of any other person and whether as principal, shareholder, director,
executive, employee, agent, consultant, independent contractor, partner or
otherwise for a period of 12 months from the Termination Date:

	 	16.4.1.1.	 	be engaged, concerned or interested in, or provide technical,
commercial, or professional advice to, any other business which
supplies cheque cashing and pay day cash advances in competition
with the Company or any Group Company in the UK

	 	16.5.	 	Non-Solicitation/Dealing/Poaching/Interference

	 	16.5.1.	 	The Executive agrees that he will not, without the prior consent of the
Company, directly or indirectly and whether alone or in conjunction with or on
behalf of any other person and whether as principal, shareholder, director,
executive, employee, agent, consultant, independent contractor, partner or
otherwise:

	 	16.5.1.1.	 	for a period of 12 months from the Termination Date so as to
compete with the Businesses, canvass, solicit or approach or cause
to be canvassed, solicited or approached any Relevant Customer for
the sale or supply of Relevant Products or Services or endeavour to
do so;

 

 

	 	16.5.1.2.	 	for a period of 12 months from the Termination Date in
connection with any business in or proposing to be in competition
with the Company, solicit, induce or entice away from the Company,
employ. seek to employ, engage or appoint or in any way cause to be
employed, engaged or appointed a Critical Person, whether or not
such a person would commit any breach of his/his contract of
employment or engagement by leaving the service of the Company;
	 
	 	16.5.1.3.	 	for a period of 12 months from the Termination Date interfere
with the continuance of supplies to the Company from any suppliers
who have been supplying materials or services to the Company at any
time during the Relevant Period and with whom the Executive has had
personal contact.

	 	16.6.	 	Notwithstanding Clause 16.7 each covenant contained in Clauses 16 shall be
construed as a separate covenant and, if one or more of the covenants is held to be
against the public interest or unlawful or in any way an unreasonable restraint of
trade, the remaining covenants shall continue to bind the Executive.
	 
	 	16.7.	 	Whilst the covenants in Clause 16 are considered by the parties to be
reasonable in all the circumstances as at the date of this Agreement the Company may by
notice in writing at any time to the Executive reduce in whole or in part the extent or
duration of the restrictions in them in such manner and to such extent as the Company
in its absolute discretion determines and the Executive then agrees to be bound by such
additional covenants in the form reduced and the validity of any other covenant and
provision contained in this Agreement shall not be affected.
	 
	 	16.8.	 	If the Executive applies for or is offered new employment, or a new
engagement, before entering into any related contract the Executive will bring the
terms of this Agreement to the attention of the third party proposing, directly or
indirectly, to appoint or engage the Executive.

 

 

	 	16.9.	 	Clause 16 of this Agreement shall apply as though references to “Group
Company” were substituted for existing references to the “Company.” The Executive’s
obligations pursuant to such clause will with respect to each Group Company, constitute
a separate and distinct covenant and the invalidity or enforceability of any such
covenant shall not affect the validity or enforceability of the covenants in favour of
the Company or any other Group Company.

	17.	 	REDUCTION OF LENGTH OF POST TERMINATION RESTRICTIONS
	 
	 	 	The parties agree that the periods referred to in Clauses 16.4 and 16.5 will be reduced by
one day for every day during which pursuant to Clause 14.3 the Executive is excluded from
the Company’s premises and/or required not to undertake the Executive’s normal duties.
	 
	18.	 	COMPANY PROPERTY
	 
	 	 	On request and in any event of the termination of his employment, the Executive will
immediately return to the Company all originals and copies of all documents, computer disks
and tapes and other tangible items in the Executive’s possession or under the Executive’s
control which belong to the Company or the Group and/or which contain or refer to any
Confidential Information or which in any other way relate or belong to the Company or the
Group.
	 
	19.	 	INTELLECTUAL PROPERTY
	 
	 	 	All present and future copyright, know-how, rights to prevent unauthorised extraction and
other intellectual property rights in any product or work developed or partly developed by
the Executive during the course of the employment with the Company shall remain the sole and
exclusive property of the Company and this Agreement does not purport to grant, assign or
transfer any rights in such products or works to the Executive.

 

 

	20.	 	DISCIPLINARY AND GRIEVANCE PROCEDURES AND SUSPENSION

	 	20.1.	 	The Company has a disciplinary procedure a copy of which is available on
request from the Company. The disciplinary procedure is not incorporated by reference
to this Agreement and does not form part of it.
	 
	 	20.2.	 	If the Executive has a grievance in relation to the employment or is
dissatisfied with a disciplinary decision against the Executive, the Executive may
apply in writing to Jeff Weiss, Chairman and Chief Executive Officer. This right to
raise a grievance does not form part of the Executive’s contract of employment.
	 
	 	20.3.	 	The Company is entitled (without prejudice to its rights consequently to
terminate this Agreement on the same or any other ground) to suspend the Executive on
full pay including bonuses, equity and allowances for so long as may be reasonably
necessary to carry out any investigation, including, but not limited to, any
investigation under the disciplinary procedure and hold a disciplinary hearing and may
require the Executive during such period: not to enter any premises of the Company or
any Group Company and to abstain from contacting any customers, suppliers or employees
of the Company or any Group Company provided that the Executive shall not be employed
by or provide services to any third party during the period for which he is suspended.

	21.	 	DEDUCTIONS
	 
	 	 	The Executive authorises the Company to deduct from his remuneration (including salary, pay
in lieu of notice, commission, bonus, and holiday pay) at any time during the employment or
in any event on termination of employment any monies owed by the Executive to the Company or
any Group Company.
	 
	22.	 	DATA PROTECTION

	 	22.1.	 	The Executive gives the Company permission to collect, retain and process
information about him, including but not limited to details of his date of birth, sex
and ethnic origin. The Company warrants that this information will only be used

 

 

	 	 	 	in order that the Company can monitor its compliance with the law and best practice
in terms of equal opportunities and non-discrimination.
	 
	 	22.2.	 	Should the Executive’s personal circumstances change such as to render out the
date the information held by the Company, he should notify the Company immediately.

	23.	 	NOTICES

	 	23.1.	 	Any notice given under this Agreement shall be in writing and shall be served
on the party (in the case of the Executive) at the above address or any other address
notified by the Executive to the Company or (in the case of the Company) at its
registered office.
	 
	 	23.2.	 	Any notice shall be taken to have been received on the date and time of its
actual receipt.

	24.	 	CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999
	 
	 	 	Notwithstanding any other provision of this Agreement, save in relation to Group Companies,
for the purposes of the Contracts (Rights of Third Parties) Act 1999, this Agreement is not
intended to, and does not, give any person who is not a party to it any right to enforce any
of its provisions.
	 
	25.	 	WARRANTY
	 
	 	 	The Executive warrants to the Company that by virtue of entering into this Agreement the
Executive will not be in breach of any express or implied terms of any contract with or any
obligation to any third party binding upon the Executive.
	 
	26.	 	COLLECTIVE AGREEMENTS
	 
	 	 	There are no collective agreements in place which affect the Executive’s employment with the
Company.

 

 

	27.	 	LAW AND JURISDICTION
	 
	 	 	The Agreement will be governed by and interpreted in accordance with English law and the
parties irrevocably agree to submit to the jurisdiction of the English courts over any claim
or matter or to settle any dispute which may arise out of or in connection with this
Agreement and that accordingly any proceedings may be brought in such courts.

 

 

EXECUTION AND DELIVERY

This document is executed as a deed and delivered on the date set out at the beginning of this
Agreement.

SIGNED as a DEED by

Dollar Financial UK Limited

acting by two Directors

or a Director and Secretary:

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	Jeffrey Weiss, Chairman and CEO / Date
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	Donald Gayhardt, President / Date
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	Paul Mildenstein / Date

SIGNED as a DEED by

Paul Mildenstein

in the presence of:

Witness
Signature:                                      

Name:                            
                                

Address:

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