Document:

<PAGE>
                                                                    EXHIBIT 4.3

                                   EXHIBIT A-1

                FORM OF CLASS [AF-] [AV-] [MF-] [MV-] CERTIFICATE

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

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE, THE MASTER SERVICER OR THE SECURITIES ADMINISTRATOR
REFERRED TO BELOW OR ANY OF THEIR AFFILIATES. NONE OF THIS CERTIFICATE, THE
REMIC REGULAR INTEREST REPRESENTED HEREBY OR THE UNDERLYING MORTGAGE LOANS ARE
GUARANTEED OR INSURED BY THE DEPOSITOR, THE TRUSTEE, THE MASTER SERVICER, THE
SECURITIES ADMINISTRATOR OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL
AGENCY OR INSTRUMENTALITY.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE SECURITIES ADMINISTRATOR.

[THIS CERTIFICATE IS SUBORDINATE TO THE SENIOR CERTIFICATES AND THE RESIDUAL
CERTIFICATES TO THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE &
CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

IF ANY BOOK-ENTRY CERTIFICATE (OR ANY INTEREST THEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF SECTION 5.02(B) OF THE POOLING AND SERVICING
AGREEMENT, THEN THE LAST PRECEDING TRANSFEREE THAT IS IN COMPLIANCE WITH SUCH
PROVISIONS SHALL BE RESTORED, TO THE EXTENT PERMITTED BY LAW, TO ALL RIGHTS AND
OBLIGATIONS AS CERTIFICATE OWNER THEREOF RETROACTIVE TO THE DATE OF SUCH
TRANSFER OF SUCH CERTIFICATE. NEITHER THE TRUSTEE

                                      A-1-1

<PAGE>

NOR THE SECURITIES ADMINISTRATOR SHALL BE UNDER ANY LIABILITY TO ANY PERSON FOR
MAKING ANY PAYMENTS DUE ON SUCH CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

ANY PURPORTED CERTIFICATE OWNER WHOSE ACQUISITION OR HOLDING OF ANY BOOK-ENTRY
CERTIFICATE (OR INTEREST THEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS
IN SECTION 5.02(B) OF THE AGREEMENT SHALL INDEMNIFY AND HOLD HARMLESS THE
DEPOSITOR, THE TRUSTEE, THE SECURITIES ADMINISTRATOR, THE MASTER SERVICER AND
THE TRUST FUND FROM AND AGAINST ANY AND ALL LIABILITIES, CLAIMS, COSTS OR
EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR HOLDING.

                                      A-1-2

<PAGE>

<TABLE>
<S>                                      <C>
MANA Series 2007-AF1, Class [_____]      Aggregate Certificate [Principal
                                         Balance] [Notional Amount] of the Class
                                         [_____] Certificates as of the Issue
                                         Date: $[_____]

Pass-Through Rate: [_____](1)            Initial Certificate [Principal Balance]
                                         [Notional Amount] of this Class [_____]
                                         Certificate as of the Issue Date:
                                         $[_____]

Date of Agreement and Cut-off Date:      Master Servicer and Securities
May 1, 2007                              Administrator: Wells Fargo Bank, N.A.

First Distribution Date: June 25, 2007   Trustee: HSBC Bank USA, National
                                         Association

No.                                      Issue Date: May 30, 2007

                                         CUSIP:
</TABLE>

     DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
     CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
     OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
     THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.

                        MORTGAGE PASS-THROUGH CERTIFICATE

                              MANA SERIES 2007-AF1

          evidencing a beneficial ownership interest in a Trust Fund (the "Trust
Fund") consisting primarily of two separate stacks of conventional, one- to
four-family, fixed and adjustable-rate, fully amortizing mortgage loans secured
by first liens on residential property (the "Mortgage Loans") formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MERRILL
     LYNCH MORTGAGE INVESTORS, INC., THE MASTER SERVICER, THE SECURITIES
     ADMINISTRATOR, THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER
     THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY
     AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

----------
(1)  As described in the Pooling and Servicing Agreement referenced herein.

                                      A-1-3

<PAGE>

          This certifies that CEDE & CO. is the registered owner of a Percentage
Interest obtained by dividing the denomination of this Certificate by the
aggregate Certificate Principal Balance of the Class [_] Certificates as of the
Issue Date in that certain beneficial ownership interest evidenced by all the
Class [_] Certificates in the Trust Fund created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Merrill
Lynch Mortgage Investors, Inc., as depositor (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement),
Wells Fargo Bank, N.A., as master servicer (in such capacity, the "Master
Servicer") and securities administrator (in such capacity, the "Securities
Administrator") and HSBC Bank USA, National Association, as trustee (the
"Trustee"). The Class [_] Certificates relate to stack [I][II] ("Stack [I][II}")
of the Trust Fund. A summary of certain of the pertinent provisions of the
Agreement relating to Stack [I][II] of the Trust Fund is set forth hereafter.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

          Interest on this Certificate will accrue during the period specified
in the Agreement on the Certificate Principal Balance hereof at a per annum rate
equal to the variable Pass-Through Rate described in the Agreement.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (each, a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class [_] Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Securities Administrator by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
[_] Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Securities Administrator
of the pendency of such distribution and only upon the presentation and
surrender of this Certificate at the office or agency appointed by the
Securities Administrator for that purpose as provided in the Agreement.

          If any Book-Entry Certificate (or any interest therein) is acquired or
held in violation of the provisions of Section 5.02(b) of the Agreement, then
the last preceding Transferee that is in compliance with such provisions shall
be restored, to the extent permitted by law, to all rights and obligations as
Certificate Owner thereof retroactive to the date of such Transfer of such
Certificate. Neither the Trustee nor the Securities Administrator shall be under
any liability to any Person for making any payments due on such Certificate to
such preceding Transferee.

                                      A-1-4

<PAGE>

          Any purported Certificate Owner whose acquisition or holding of any
Book-Entry Certificate (or interest therein) was effected in violation of the
restrictions in Section 5.02(b) of the Agreement shall indemnify and hold
harmless the Depositor, the Trustee, the Securities Administrator, the Master
Servicer and the Trust Fund from and against any and all liabilities, claims,
costs or expenses incurred by such parties as a result of such acquisition or
holding.

          This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Master Servicer Collection Account and the
Distribution Account may be made from time to time for purposes other than
distributions to Holders of the Certificates, such purposes including
reimbursement of advances made, or certain expenses incurred, with respect to
the Mortgage Loans.

          The Agreement may be amended from time to time in the manner specified
in the Agreement

          As provided in the Agreement and subject to certain limitations set
forth therein, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Securities Administrator as
provided in the Agreement, duly endorsed by, or accompanied by an assignment in
the form below or other written instrument of transfer in form satisfactory to
the Securities Administrator duly executed by, the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations set forth therein, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No service charge will be made for any such registration of transfer
or exchange of Certificates, but the Securities Administrator may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Securities Administrator, the Master Servicer and
the Trustee and any agent of the Depositor, the Securities Administrator, the
Master Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all

                                      A-1-5

<PAGE>

purposes, and none of the Depositor, the Securities Administrator, the Master
Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

          This certificate shall be governed by and construed in accordance with
the laws of the state of New York.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment (or provision for payment) to the Holders
of the Certificates of all amounts held by the Securities Administrator and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the Distribution Date on which the Certificate Principal Balance of each
Class of Certificates has been reduced to zero, (ii) the final payment (or any
advance with respect thereto) on or other liquidation of the last Mortgage Loan
remaining in the Trust Fund and (iii) the Optional Termination of the trust fund
according to the procedures described in the Agreement.

          The recitals contained herein shall be taken as statements of the
Depositor and the Securities Administrator assumes no responsibility for their
correctness.

          Unless the certificate of authentication hereon has been executed by
the Securities Administrator, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-1-6

<PAGE>

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

                                         WELLS FARGO BANK, N.A.,
                                         as Securities Administrator

                                         By:
                                             -----------------------------------
                                             AUTHORIZED SIGNATORY

                                         Dated: May 30, 2007

              SECURITIES ADMINISTRATOR'S CERTIFICATE AUTHENTICATION

This is one of the Certificates referred to in the within-mentioned Pooling and
Servicing Agreement.

                                         WELLS FARGO BANK, N.A.,
                                         as Authenticating Agent

                                         By:
                                             -----------------------------------
                                             AUTHORIZED SIGNATORY

                                         Dated: May 30, 2007

                                      A-1-7
<PAGE>

                                  ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>         <C>                              <C>                   <C>
TEN COM -   as tenants in common             UNIF GIFT MIN ACT -          CUSTODIAN

TEN ENT -   as tenants by the entireties                               (Cust) (Minor)

                                                                   under Uniform Gifts to
                                                                         Minors Act

JT TEN -    as joint tenants with right of                             _______________
            survivorship and not as                                       (State)
            tenants in common
</TABLE>

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

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

________________________________________________________________________________

________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

          the Percentage Interest evidenced by the Mortgage Pass-Through
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

     I (we) further direct the Securities Administrator to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

________________________________________________________________________________

________________________________________________________________________________

Dated:
      ---------------------

                                        ----------------------------------------
                                        Signature by or on behalf of assignor

                                        ----------------------------------------
                                        Signature Guaranteed

                                      A-1-8

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

     Distributions shall be made, by wire transfer or otherwise, in immediately
available funds

to ____________________________________________________________________________,
for the account of ____________________________________________________________,
account number _____________, or, if mailed by check, to ______________________,
Applicable statements should be mailed to _____________________________________,
_______________________________________________________________________________.

This information is provided by _______________________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                      A-1-9

<PAGE>

                                   EXHIBIT A-2

           FORM OF CLASS [BF- ] [BV-] [RULE 144A] [REG S] CERTIFICATE

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

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE, THE MASTER SERVICER OR THE SECURITIES ADMINISTRATOR
REFERRED TO BELOW OR ANY OF THEIR AFFILIATES. NONE OF THIS CERTIFICATE, THE
REMIC REGULAR INTEREST REPRESENTED HEREBY OR THE UNDERLYING MORTGAGE LOANS ARE
GUARANTEED OR INSURED BY THE DEPOSITOR, THE TRUSTEE, THE MASTER SERVICER, THE
SECURITIES ADMINISTRATOR OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL
AGENCY OR INSTRUMENTALITY.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE SECURITIES ADMINISTRATOR.

THIS CERTIFICATE IS SUBORDINATE TO THE SENIOR CERTIFICATES, THE CLASS M
CERTIFICATES AND THE RESIDUAL CERTIFICATES TO THE EXTENT DESCRIBED IN THE
AGREEMENT REFERRED TO HEREIN.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE &
CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

IF ANY BOOK-ENTRY CERTIFICATE (OR ANY INTEREST THEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF SECTION 5.02(B) OF THE POOLING AND SERVICING
AGREEMENT, THEN THE LAST PRECEDING TRANSFEREE THAT IS IN COMPLIANCE WITH SUCH
PROVISIONS SHALL BE RESTORED, TO THE EXTENT PERMITTED BY LAW, TO ALL RIGHTS AND
OBLIGATIONS AS CERTIFICATE OWNER THEREOF RETROACTIVE TO THE

                                      A-2-1

<PAGE>

DATE OF SUCH TRANSFER OF SUCH CERTIFICATE. NEITHER THE TRUSTEE NOR THE
SECURITIES ADMINISTRATOR SHALL BE UNDER ANY LIABILITY TO ANY PERSON FOR MAKING
ANY PAYMENTS DUE ON SUCH CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

ANY PURPORTED CERTIFICATE OWNER WHOSE ACQUISITION OR HOLDING OF ANY BOOK-ENTRY
CERTIFICATE (OR INTEREST THEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS
IN SECTION 5.02(B) OF THE AGREEMENT SHALL INDEMNIFY AND HOLD HARMLESS THE
DEPOSITOR, THE TRUSTEE, THE SECURITIES ADMINISTRATOR, THE MASTER SERVICER AND
THE TRUST FUND FROM AND AGAINST ANY AND ALL LIABILITIES, CLAIMS, COSTS OR
EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR HOLDING.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE SECURITIES ADMINISTRATOR WITH (A) A REPRESENTATION THAT
SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO
TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), A PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE "CODE") OR A PLAN SUBJECT TO ANY PROVISION UNDER ANY FEDERAL,
STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SUBSTANTIVELY
SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE ("SIMILAR LAW")
(COLLECTIVELY, A "PLAN"), AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS
CERTIFICATE FOR, ON BEHALF OF, OR WITH ANY ASSETS OF ANY SUCH PLAN, (B) IF THIS
CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING UNDERWRITING, A
REPRESENTATION THAT SUCH TRANSFEREE IS AN INSURANCE COMPANY THAT IS ACQUIRING
THIS CERTIFICATE WITH ASSETS OF AN "INSURANCE COMPANY GENERAL ACCOUNT" AS
DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 95-60
AND THE ACQUISITION AND HOLDING OF THIS CERTIFICATE ARE COVERED AND EXEMPT UNDER
SECTIONS I AND III OF PTCE 95-60 OR (C) SOLELY IN THE CASE OF A DEFINITIVE
CERTIFICATE, AN OPINION OF COUNSEL SATISFACTORY TO THE SECURITIES ADMINISTRATOR,
AND UPON WHICH THE SECURITIES ADMINISTRATOR SHALL BE ENTITLED TO RELY, TO THE
EFFECT THAT THE ACQUISITION AND HOLDING OF THIS CERTIFICATE BY THE PROSPECTIVE
TRANSFEREE WILL NOT CONSTITUTE OR RESULT IN A NONEXEMPT PROHIBITED TRANSACTION
UNDER ERISA OR THE CODE, OR A VIOLATION OF SIMILAR LAW, AND WILL NOT SUBJECT THE
TRUSTEE, THE SECURITIES ADMINISTRATOR, THE CERTIFICATE REGISTRAR, THE MASTER
SERVICER, ANY SERVICER OR THE DEPOSITOR TO ANY OBLIGATION IN ADDITION TO THOSE
UNDERTAKEN BY SUCH ENTITIES IN THE POOLING AND SERVICING AGREEMENT, WHICH
OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE SECURITIES
ADMINISTRATOR, THE CERTIFICATE REGISTRAR, THE MASTER

                                      A-2-2

<PAGE>

SERVICER, ANY SERVICER OR THE DEPOSITOR. IF THE CERTIFICATE IS NOT A DEFINITIVE
CERTIFICATE, THE TRANSFEREE IS DEEMED TO HAVE MADE THE REPRESENTATION IN (A) OR
(B) ABOVE.

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED [OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE
RESOLD OR TRANSFERRED,] [(THE "1933 ACT"), OR THE SECURITIES LAWS OF ANY STATE
AND MAY NOT BE RESOLD OR TRANSFERRED WITHIN THE UNITED STATES (AS DEFINED IN
RULES 901 THROUGH 905 OF THE 1933 ACT ("REGULATION S")) OR TO, OR FOR THE
ACCOUNT OR BENEFIT OF, A U.S. PERSON (AS DEFINED IN REGULATION S),] UNLESS IT IS
REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN
TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER
APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF
SECTION 5.02 OF THE AGREEMENT.

                                      A-2-3

<PAGE>

<TABLE>
<S>                                     <C>
MANA Series 2007-AF1, Class ___-[_]     Aggregate Certificate  Principal
(RULE 144A)                             Balance of Class ___-[_] Certificates
                                        as of the Issue Date: $[_]

Pass Through Rate: [_____________](1)   Initial Class  Certificate  Principal
                                        Balance of this Class ___-[_]
                                        Certificate as of the Issue Date: $[_]

Date of Agreement and Cut-off Date:     Master Servicer and Securities
May 1, 2007                             Administrator: Wells Fargo Bank, N.A.

First Distribution Date: June 25,       Trustee: HSBC Bank USA, National
2007                                    Association

No.                                     Issue Date: May 30, 2007

                                        CUSIP:
</TABLE>

          DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF
          THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY,
          THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY
          BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
          CERTIFICATE.

                        MORTGAGE PASS-THROUGH CERTIFICATE

                              MANA SERIES 2007-AF1

          evidencing a beneficial ownership interest in a Trust Fund (the "Trust
Fund") consisting primarily of two separate stacks of conventional, one- to
four-family, fixed and adjustable-rate, fully amortizing mortgage loans secured
by first liens on residential property (the "Mortgage Loans") formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

----------
(1)  As described in the Pooling and Servicing Agreement referenced herein.

                                      A-2-4
<PAGE>

               THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST
               IN MERRILL LYNCH MORTGAGE INVESTORS, INC., THE MASTER SERVICER,
               THE SECURITIES ADMINISTRATOR, THE TRUSTEE OR ANY OF THEIR
               RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
               UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
               INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that CEDE & CO. is the registered owner of a Percentage
Interest (obtained by dividing the denomination of this Certificate by the
aggregate Certificate Principal Balance of the Class ___-[_] Certificates as of
the Issue Date) in that certain beneficial ownership interest evidenced by all
the Class ____-[_] Certificates in the Trust Fund created pursuant to a Pooling
and Servicing Agreement, dated as specified above (the "Agreement"), among
Merrill Lynch Mortgage Investors, Inc., as depositor (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement),
Wells Fargo Bank, N.A., as master servicer (in such capacity, the "Master
Servicer") and securities administrator (in such capacity, the "Securities
Administrator") and HSBC Bank USA, National Association, as trustee (the
"Trustee"). The Class ___-[_] Certificates relate to stack I ("Stack I") of the
Trust Fund. A summary of certain of the pertinent provisions of the Agreement
relating to Stack I of the Trust Fund is set forth hereafter. This Certificate
is issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

          Interest on this Certificate will accrue during the period specified
in the Agreement on the Certificate Principal Balance hereof at a per annum rate
equal to the variable Pass-Through Rate described in the Agreement.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (each, a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class ___-[_] Certificates on such
Distribution Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Securities Administrator by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
___-[_] Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Securities Administrator
of the pendency of such distribution and only upon the presentation and
surrender of this Certificate at the office or agency appointed by the
Securities Administrator for that purpose as provided in the Agreement.

                                      A-2-5

<PAGE>

          If any Book-Entry Certificate (or any interest therein) is acquired or
held in violation of the provisions of Section 5.02(b) of the Agreement, then
the last preceding Transferee that is in compliance with such provisions shall
be restored, to the extent permitted by law, to all rights and obligations as
Certificate Owner thereof retroactive to the date of such Transfer of such
Certificate. Neither the Trustee nor the Securities Administrator shall be under
any liability to any Person for making any payments due on such Certificate to
such preceding Transferee.

          Any purported Certificate Owner whose acquisition or holding of any
Book-Entry Certificate (or interest therein) was effected in violation of the
restrictions in Section 5.02(b) of the Agreement shall indemnify and hold
harmless the Depositor, the Trustee, the Securities Administrator, the Master
Servicer and the Trust Fund from and against any and all liabilities, claims,
costs or expenses incurred by such parties as a result of such acquisition or
holding.

          This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Master Servicer Collection Account and the
Distribution Account may be made from time to time for purposes other than
distributions to Holders of the Certificates, such purposes including
reimbursement of advances made, or certain expenses incurred, with respect to
the Mortgage Loans.

          The Agreement may be amended from time to time in the manner specified
in the Agreement.

          As provided in the Agreement and subject to certain limitations set
forth therein, the transfer of this Certificate is registerable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Securities Administrator as
provided in the Agreement, duly endorsed by, or accompanied by an assignment in
the form below or other written instrument of transfer in form satisfactory to
the Securities Administrator duly executed by, the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations set forth therein, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                                      A-2-6

<PAGE>

          No transfer of this Certificate shall be made unless the transfer is
made pursuant to an effective registration statement under the Securities Act of
1933, as amended (the "1933 Act"), and any applicable state securities laws or
is exempt from the registration requirements under the 1933 Act and such state
securities laws. In the event that a transfer is to be made in reliance upon an
exemption from the 1933 Act and such laws, the Certificateholder desiring to
effect such transfer and such Certificateholder's prospective transferee shall
each certify to the Securities Administrator in writing the facts surrounding
the transfer in a Transferor Representation Letter as described in the Agreement
and (i) deliver to the Securities Administrator an Investor Representation
Letter or Rule 144A Letter as described in the Agreement or (ii) have delivered
to the Securities Administrator an Opinion of Counsel that such transfer may be
made pursuant to an exemption from the Securities Act, which Opinion of Counsel
shall not be an expense of the Depositor or the Securities Administrator. Any
Certificateholder desiring to effect a transfer of this Certificate shall
indemnify the Securities Administrator and the Depositor against any liability
that may result if the transfer is not so exempt or is not made in accordance
with such federal and state laws.

          No service charge will be made for any such registration of transfer
or exchange of Certificates, but the Securities Administrator may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Securities Administrator, the Master Servicer and
the Trustee and any agent of the Depositor, the Securities Administrator, the
Master Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Securities Administrator, the Master Servicer, the Trustee nor
any such agent shall be affected by notice to the contrary.

          This certificate shall be governed by and construed in accordance with
the laws of the state of New York.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment (or provision for payment) to the Holders
of the Certificates of all amounts held by the Securities Administrator and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the Distribution Date on which the Certificate Principal Balance of each
Class of Certificates has been reduced to zero, (ii) the final payment (or any
advance with respect thereto) on or other liquidation of the last Mortgage Loan
remaining in the Trust Fund and (iii) the Optional Termination of the trust fund
according to the procedures described in the Agreement.

          The recitals contained herein shall be taken as statements of the
Depositor and the Securities Administrator assumes no responsibility for their
correctness.

          Unless the certificate of authentication hereon has been executed by
the Securities Administrator, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-2-7

<PAGE>

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

                                        WELLS FARGO BANK, N.A.,
                                        as Securities Administrator

                                        By:
                                            ------------------------------------
                                            AUTHORIZED SIGNATORY

                                        Dated: May 30, 2007

              SECURITIES ADMINISTRATOR'S CERTIFICATE AUTHENTICATION

This is one of the Certificates referred to in the within-mentioned Pooling and
Servicing Agreement.

                                        WELLS FARGO BANK, N.A.,
                                        as Authenticating Agent

                                        By:
                                            ------------------------------------
                                            AUTHORIZED SIGNATORY

                                        Dated: May 30, 2007

                                      A-2-8

<PAGE>

                                  ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>         <C>                              <C>                   <C>
TEN COM -   as tenants in common             UNIF GIFT MIN ACT -          CUSTODIAN

TEN ENT -   as tenants by the entireties                               (Cust) (Minor)

                                                                   under Uniform Gifts to
                                                                         Minors Act

JT TEN -    as joint tenants with right of                             ______________
            survivorship and not as                                       (State)
            tenants in common
</TABLE>

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

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

________________________________________________________________________________

______________________________________________________________________________ .
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

          the Percentage Interest evidenced by the Mortgage Pass-Through
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

     I (we) further direct the Securities Administrator to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

______________________________________________________________________________

______________________________________________________________________________ .

Dated:
       ------------

                                        ----------------------------------------
                                        Signature by or on behalf of assignor

                                        ----------------------------------------
                                        Signature Guaranteed

                                      A-2-9

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

     Distributions shall be made, by wire transfer or otherwise, in immediately
available funds

to_____________________________________________________________________________,
for the account of_____________________________________________________________,
account number___________, or, if mailed by check, to__________________________,
Applicable statements should be mailed to______________________________________,
_______________________________________________________________________________.

This information is provided by________________________________________________,
the assignee named above, or___________________________________________________,
as its agent.

                                     A-2-10

<PAGE>

                                   EXHIBIT A-3

                          FORM OF CLASS A-R CERTIFICATE

SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS THE
"RESIDUAL INTEREST" IN ONE OR MORE "REAL ESTATE MORTGAGE INVESTMENT CONDUITS",
AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED.

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE
DEPOSITOR, THE TRUSTEE, THE MASTER SERVICER OR THE SECURITIES ADMINISTRATOR
REFERRED TO BELOW OR ANY OF THEIR AFFILIATES. NONE OF THIS CERTIFICATE, THE
REMIC RESIDUAL INTERESTS REPRESENTED HEREBY OR THE UNDERLYING MORTGAGE LOANS ARE
GUARANTEED OR INSURED BY THE DEPOSITOR, THE TRUSTEE, THE MASTER SERVICER, THE
SECURITIES ADMINISTRATOR OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL
AGENCY OR INSTRUMENTALITY.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE SECURITIES ADMINISTRATOR.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED OR SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND
ANY PAYMENT IS MADE TO MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, MERRILL LYNCH, PIERCE, FENNER &
SMITH INCORPORATED, HAS AN INTEREST HEREIN.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE SECURITIES ADMINISTRATOR AND THE DEPOSITOR WITH A
REPRESENTATION THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO
TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), A PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO ANY
FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE
SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE, AND IS
NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS CERTIFICATE FOR, ON BEHALF OF, OR WITH
ANY ASSETS OF ANY SUCH PLAN. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS

                                      A-3-1

<PAGE>

CERTIFICATE MAY BE MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02
OF THE AGREEMENT REFERRED TO HEREIN.

IF ANY BOOK-ENTRY CERTIFICATE (OR ANY INTEREST THEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF SECTION 5.02(B) OF THE POOLING AND SERVICING
AGREEMENT, THEN THE LAST PRECEDING TRANSFEREE THAT IS IN COMPLIANCE WITH SUCH
PROVISIONS SHALL BE RESTORED, TO THE EXTENT PERMITTED BY LAW, TO ALL RIGHTS AND
OBLIGATIONS AS CERTIFICATE OWNER THEREOF RETROACTIVE TO THE DATE OF SUCH
TRANSFER OF SUCH CERTIFICATE. NEITHER THE TRUSTEE NOR THE SECURITIES
ADMINISTRATOR SHALL BE UNDER ANY LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS
DUE ON SUCH CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

ANY PURPORTED CERTIFICATE OWNER WHOSE ACQUISITION OR HOLDING OF ANY BOOK-ENTRY
CERTIFICATE (OR INTEREST THEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS
IN SECTION 5.02(B) OF THE AGREEMENT SHALL INDEMNIFY AND HOLD HARMLESS THE
DEPOSITOR, THE TRUSTEE, THE SECURITIES ADMINISTRATOR, THE MASTER SERVICER AND
THE TRUST FUND FROM AND AGAINST ANY AND ALL LIABILITIES, CLAIMS, COSTS OR
EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR HOLDING.

                                      A-3-2

<PAGE>

<TABLE>
<S>                                     <C>
MANA Series 2007-AF1, Class A-R         Aggregate Certificate Principal
                                        Balance of the Class A-R Certificates as
                                        of the Issue Date: $100

Pass-Through Rate: Variable(1)          Initial Certificate Principal Balance
                                        of this Class A-R Certificate as of the
                                        Issue Date: $100

Date of Agreement and Cut-off Date:     Master Servicer and Securities
May 1, 2007                             Administrator: Wells Fargo Bank, N.A.

First Distribution Date: June 25,       Trustee: HSBC Bank USA, National
2007                                    Association

No. ____________                        Issue Date: May 30, 2007

                                        CUSIP: ______________
</TABLE>

     DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
     CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
     OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
     THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.

                        MORTGAGE PASS-THROUGH CERTIFICATE

                              MANA SERIES 2007-AF1

          evidencing a beneficial ownership interest in a Trust Fund (the "Trust
Fund") consisting primarily of two separate stacks of conventional, one- to
four-family, fixed and adjustable-rate, fully amortizing mortgage loans secured
by first liens on residential property (the "Mortgage Loans") formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MERRILL
     LYNCH MORTGAGE INVESTORS, INC., THE MASTER SERVICER, THE SECURITIES
     ADMINISTRATOR, THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER
     THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY
     AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

----------
(1)  As described in the Pooling and Servicing Agreement referenced herein.

                                      A-3-3
<PAGE>

          This certifies that MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
is the registered owner of a Percentage Interest obtained by dividing the
denomination of this Certificate by the aggregate Certificate Principal Balance
of the Class A-R Certificates as of the Issue Date in that certain beneficial
ownership interest evidenced by all the Class A-R Certificates in the Trust Fund
created pursuant to a Pooling and Servicing Agreement, dated as specified above
(the "Agreement"), among Merrill Lynch Mortgage Investors, Inc., as depositor
(hereinafter called the "Depositor," which term includes any successor entity
under the Agreement), Wells Fargo Bank, N.A., as master servicer (in such
capacity, the "Master Servicer") and securities administrator (in such capacity,
the "Securities Administrator") and HSBC Bank USA, National Association, as
trustee (the "Trustee"). The Class A-R Certificates relate to stack I ("Stack
I") of the Trust Fund. A summary of certain of the pertinent provisions of the
Agreement relating to Stack I of the Trust Fund is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

          Interest on this Certificate will accrue during the period specified
in the Agreement on the Certificate Principal Balance hereof at a per annum rate
equal to the variable Pass-Through Rate described in the Agreement.

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (each, a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class A-R Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Securities Administrator by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
A-R Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Securities Administrator
of the pendency of such distribution and only upon the presentation and
surrender of this Certificate at the office or agency appointed by the
Securities Administrator for that purpose as provided in the Agreement.

          If any Book-Entry Certificate (or any interest therein) is acquired or
held in violation of the provisions of Section 5.02(b) of the Agreement, then
the last preceding Transferee that is in compliance with such provisions shall
be restored, to the extent permitted by law, to all rights and obligations as
Certificate Owner thereof retroactive to the date of such Transfer of such
Certificate. Neither the Trustee nor the Securities Administrator shall be under

                                     A-3-4

<PAGE>

any liability to any Person for making any payments due on such Certificate to
such preceding Transferee.

          Any purported Certificate Owner whose acquisition or holding of any
Book-Entry Certificate (or interest therein) was effected in violation of the
restrictions in Section 5.02(b) of the Agreement shall indemnify and hold
harmless the Depositor, the Trustee, the Securities Administrator, the Master
Servicer and the Trust Fund from and against any and all liabilities, claims,
costs or expenses incurred by such parties as a result of such acquisition or
holding.

          This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Master Servicer Collection Account and the
Distribution Account may be made from time to time for purposes other than
distributions to Holders of the Certificates, such purposes including
reimbursement of advances made, or certain expenses incurred, with respect to
the Mortgage Loans.

          The Agreement may be amended from time to time in the manner described
in the Agreement.

          As provided in the Agreement and subject to certain limitations set
forth therein, the transfer of this Certificate is registerable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Securities Administrator as
provided in the Agreement, duly endorsed by, or accompanied by an assignment in
the form below or other written instrument of transfer in form satisfactory to
the Securities Administrator duly executed by, the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations set forth therein, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No service charge will be made for any such registration of transfer
or exchange of Certificates, but the Securities Administrator may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Securities Administrator, the Master Servicer and
the Trustee and any agent of the Depositor, the Securities Administrator, the
Master Servicer or the Trustee

                                     A-3-5

<PAGE>

may treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of the Depositor, the Securities
Administrator, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.

          This certificate shall be governed by and construed in accordance with
the laws of the state of New York.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment (or provision for payment) to the Holders
of the Certificates of all amounts held by the Securities Administrator and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the Distribution Date on which the Certificate Principal Balance of each
Class of Certificates has been reduced to zero, (ii) the final payment (or any
advance with respect thereto) on or other liquidation of the last Mortgage Loan
remaining in the Trust Fund and (iii) the Optional Termination of the trust fund
according to the procedures described in the Agreement.

          The recitals contained herein shall be taken as statements of the
Depositor and the Securities Administrator assumes no responsibility for their
correctness.

          Unless the certificate of authentication hereon has been executed by
the Securities Administrator, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-3-6

<PAGE>

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

                                        WELLS FARGO BANK, N.A.,
                                        as Securities Administrator

                                        By:
                                            ------------------------------------
                                            AUTHORIZED SIGNATORY

                                        Dated: May 30, 2007

              SECURITIES ADMINISTRATOR'S CERTIFICATE AUTHENTICATION

This is one of the Certificates referred to in the within-mentioned Pooling and
Servicing Agreement.

                                        WELLS FARGO BANK, N.A.,
                                        as Authenticating Agent

                                        By:
                                            ------------------------------------
                                            AUTHORIZED SIGNATORY

                                        Dated: May 30, 2007

                                     A-3-7

<PAGE>

                                  ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>         <C>                              <C>                   <C>
TEN COM -   as tenants in common             UNIF GIFT MIN ACT -         CUSTODIAN

TEN ENT -   as tenants by the entireties                               (Cust) (Minor)

                                                                   under Uniform Gifts to
                                                                         Minors Act

JT TEN -    as joint tenants with right of                             ______________
            survivorship and not as                                       (State)
            tenants in common
</TABLE>

          Additional abbreviations may also be used though not in the above
list.

                                   ASSIGNMENT

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

_______________________________________________________________________________.
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

          the Percentage Interest evidenced by the Mortgage Pass-Through
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

          I (we) further direct the Securities Administrator to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

_______________________________________________________________________________.

_______________________________________________________________________________.

Dated:
       ------------------------------

                                        ----------------------------------------
                                        Signature by or on behalf of assignor

                                        ----------------------------------------
                                        Signature Guaranteed

                                     A-3-8

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

     Distributions shall be made, by wire transfer or otherwise, in immediately
available funds

to ____________________________________________________________________________,
for the account of ____________________________________________________________,
account number __________, or, if mailed by check, to _________________________,
Applicable statements should be mailed to _____________________________________,
_______________________________________________________________________________.

This information is provided by _______________________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                     A-3-9

<PAGE>

                                   EXHIBIT A-4

                           FORM OF CLASS P CERTIFICATE

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
THE DEPOSITOR, THE TRUSTEE OR THE SERVICER REFERRED TO BELOW OR ANY OF THEIR
AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE
GUARANTEED OR INSURED BY THE DEPOSITOR, THE TRUSTEE, THE SERVICER OR BY ANY OF
THEIR AFFILIATES OR BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

          THIS CLASS P CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND
MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS SOLD OR TRANSFERRED IN
TRANSACTIONS WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT OR UNDER
APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF
SECTION 5.02 OF THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

          NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE
PROSPECTIVE TRANSFEREE PROVIDES THE TRUSTEE AND THE DEPOSITOR WITH (A) A
REPRESENTATION THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO
TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), A PLAN SUBJECT TO SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO ANY
STATE, LOCAL, FEDERAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE
FOREGOING PROVISIONS OF ERISA OR THE CODE ("SIMILAR LAW"), AND IS NOT DIRECTLY
OR INDIRECTLY ACQUIRING THIS CERTIFICATE FOR, ON BEHALF OF, OR WITH ANY ASSETS
OF ANY SUCH PLAN, (B) IF THE CERTIFICATE HAS BEEN THE SUBJECT OF AN
ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION THAT SUCH TRANSFEREE IS AN
INSURANCE COMPANY THAT IS ACQUIRING THE CERTIFICATE WITH ASSETS OF AN "INSURANCE
COMPANY GENERAL ACCOUNT" AS DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION
CLASS EXEMPTION ("PTCE") 95-60 AND THE ACQUISITION AND HOLDING OF THE
CERTIFICATE ARE COVERED AND EXEMPT UNDER SECTIONS I AND III OF PTCE 95-60 OR (C)
SOLELY IN THE CASE OF A DEFINITIVE CERTIFICATE, AN OPINION OF COUNSEL
SATISFACTORY TO THE TRUSTEE, AND UPON WHICH THE TRUSTEE SHALL BE ENTITLED TO
RELY, TO THE EFFECT THAT THE ACQUISITION AND HOLDING OF SUCH CERTIFICATE BY THE
PROSPECTIVE TRANSFEREE WILL NOT CONSTITUTE OR RESULT IN A NONEXEMPT PROHIBITED
TRANSACTION UNDER ERISA OR THE CODE OR A VIOLATION OF SIMILAR LAW AND WILL NOT
SUBJECT THE NIMS INSURER, THE TRUSTEE, THE SERVICER OR THE DEPOSITOR TO ANY
OBLIGATION IN ADDITION TO THOSE UNDERTAKEN BY SUCH ENTITIES IN THE POOLING AND
SERVICING AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
NIMS INSURER, THE TRUSTEE, THE SERVICER OR THE DEPOSITOR.

                                     A-4-1

<PAGE>

                               CLASS P CERTIFICATE

Number: 07-AF1-P-1                       Percentage Interest: 100%

Cut-off Date: May 1, 2007

First Distribution Date: June 25, 2007   CUSIP: [__________]

                                     A-4-2

<PAGE>

     DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
     CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
     OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
     THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.

                        MORTGAGE PASS-THROUGH CERTIFICATE

                              MANA SERIES 2007-AF1

          evidencing a beneficial ownership interest in a Trust Fund (the "Trust
Fund") consisting primarily of two separate stacks of conventional, one- to
four-family, fixed and adjustable-rate, fully amortizing mortgage loans secured
by first liens on residential property (the "Mortgage Loans") formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN MERRILL
     LYNCH MORTGAGE INVESTORS, INC., THE MASTER SERVICER, THE SECURITIES
     ADMINISTRATOR, THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER
     THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY
     AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

          This certifies that MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED, as nominee for Merrill Lynch Funding Corp, is the registered owner
of a Percentage Interest obtained by dividing the denomination of this
Certificate by the aggregate Certificate Principal Balance of the Class P
Certificates as of the Issue Date in that certain beneficial ownership interest
evidenced by all the Class P Certificates in the Trust Fund created pursuant to
a Pooling and Servicing Agreement, dated as specified above (the "Agreement"),
among Merrill Lynch Mortgage Investors, Inc., as depositor (hereinafter called
the "Depositor," which term includes any successor entity under the Agreement),
Wells Fargo Bank, N.A., as master servicer (in such capacity, the "Master
Servicer") and securities administrator (in such capacity, the "Securities
Administrator") and HSBC Bank USA, National Association, as trustee (the
"Trustee"). The Class P Certificates relate to stack I ("Stack I") of the Trust
Fund. A summary of certain of the pertinent provisions of the Agreement relating
to Stack I of the Trust Fund is set forth hereafter. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

          Interest on this Certificate will accrue during the period specified
in the Agreement on the Certificate Principal Balance hereof at a per annum rate
equal to the Pass-Through Rate described in the Agreement.

                                     A-4-3

<PAGE>

          Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (each, a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class P Certificates on such Distribution
Date pursuant to the Agreement.

          All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Securities Administrator by
wire transfer in immediately available funds to the account of the Person
entitled thereto if such Person shall have so notified the Securities
Administrator in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
P Certificates, or otherwise by check mailed by first class mail to the address
of the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Securities Administrator of the
pendency of such distribution and only upon the presentation and surrender of
this Certificate at the office or agency appointed by the Securities
Administrator for that purpose as provided in the Agreement.

          If any Book-Entry Certificate (or any interest therein) is acquired or
held in violation of the provisions of Section 5.02(b) of the Agreement, then
the last preceding Transferee that is in compliance with such provisions shall
be restored, to the extent permitted by law, to all rights and obligations as
Certificate Owner thereof retroactive to the date of such Transfer of such
Certificate. Neither the Trustee nor the Securities Administrator shall be under
any liability to any Person for making any payments due on such Certificate to
such preceding Transferee.

          Any purported Certificate Owner whose acquisition or holding of any
Book-Entry Certificate (or interest therein) was effected in violation of the
restrictions in Section 5.02(b) of the Agreement shall indemnify and hold
harmless the Depositor, the Trustee, the Securities Administrator, the Master
Servicer and the Trust Fund from and against any and all liabilities, claims,
costs or expenses incurred by such parties as a result of such acquisition or
holding.

          This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates specified on the face hereof equal to the
denomination specified on the face hereof divided by the aggregate Certificate
Principal Balance of the Class of Certificates specified on the face hereof.

          The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Master Servicer Collection Account and the
Distribution Account may be made from time to time for purposes other than
distributions to Holders of the Certificates, such purposes including
reimbursement of advances made, or certain expenses incurred, with respect to
the Mortgage Loans.

                                     A-4-4

<PAGE>

          The Agreement may be amended from time to time in the manner specified
in the Agreement.

          As provided in the Agreement and subject to certain limitations set
forth therein, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Securities Administrator as
provided in the Agreement, duly endorsed by, or accompanied by an assignment in
the form below or other written instrument of transfer in form satisfactory to
the Securities Administrator duly executed by, the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest will be issued to the designated transferee or
transferees.

          The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations set forth therein, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

          No service charge will be made for any such registration of transfer
or exchange of Certificates, but the Securities Administrator may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any transfer or exchange of Certificates.

          The Depositor, the Securities Administrator, the Master Servicer and
the Trustee and any agent of the Depositor, the Securities Administrator, the
Master Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Securities Administrator, the Master Servicer, the Trustee nor
any such agent shall be affected by notice to the contrary.

          This certificate shall be governed by and construed in accordance with
the laws of the state of New York.

          The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment (or provision for payment) to the Holders
of the Certificates of all amounts held by the Securities Administrator and
required to be paid to them pursuant to the Agreement following the earlier of
(i) the Distribution Date on which the Certificate Principal Balance of each
Class of Certificates has been reduced to zero, (ii) the final payment (or any
advance with respect thereto) on or other liquidation of the last Mortgage Loan
remaining in the Trust Fund and (iii) the Optional Termination of the trust fund
according to the procedures described in the Agreement.

          The recitals contained herein shall be taken as statements of the
Depositor and the Securities Administrator assumes no responsibility for their
correctness.

          Unless the certificate of authentication hereon has been executed by
the Securities Administrator, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-4-5

<PAGE>

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

                                        WELLS FARGO BANK, N.A.,
                                        as Securities Administrator

                                        By:
                                            ------------------------------------
                                            AUTHORIZED SIGNATORY

                                        Dated: May 30, 2007

              SECURITIES ADMINISTRATOR'S CERTIFICATE AUTHENTICATION

          This is one of the Certificates referred to in the within-mentioned
Pooling and Servicing Agreement.

                                        WELLS FARGO BANK, N.A.,
                                        as Authenticating Agent

                                        By:
                                            ------------------------------------
                                            AUTHORIZED SIGNATORY

                                        Dated: May 30, 2007

                                     A-4-6

<PAGE>

                                  ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>         <C>                              <C>                   <C>
TEN COM -   as tenants in common             UNIF GIFT MIN ACT -         CUSTODIAN

TEN ENT -   as tenants by the entireties                               (Cust) (Minor)

                                                                   under Uniform Gifts to
                                                                         Minors Act

JT TEN -    as joint tenants with right of                             ______________
            survivorship and not as                                       (State)
            tenants in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT

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

_______________________________________________________________________________.
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

          the Percentage Interest evidenced by the Mortgage Pass-Through
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

          I (we) further direct the Securities Administrator to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

________________________________________________________________________________

_______________________________________________________________________________.

Dated:
       ------------------------------

                                        ----------------------------------------
                                        Signature by or on behalf of assignor

                                        ----------------------------------------
                                        Signature Guaranteed

                                     A-4-7

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

     Distributions shall be made, by wire transfer or otherwise, in immediately
available funds

to ____________________________________________________________________________,
for the account of ____________________________________________________________,
account number __________, or, if mailed by check, to _________________________,
Applicable statements should be mailed to _____________________________________,
_______________________________________________________________________________.

This information is provided by _______________________________________________,
the assignee named above, or __________________________________________________,
as its agent.

                                     A-4-8

<PAGE>

                                   EXHIBIT B-1

                         STACK I MORTGAGE LOAN SCHEDULE

                             [INTENTIONALLY OMITTED]

                                      B-1-1

<PAGE>

                                   EXHIBIT B-2

                         STACK II MORTGAGE LOAN SCHEDULE

                             [INTENTIONALLY OMITTED]

                                      B-2-1

<PAGE>

                                    EXHIBIT C

                             [INTENTIONALLY OMITTED]

                                       C-1

<PAGE>

                                    EXHIBIT D

                        REQUEST FOR RELEASE OF DOCUMENTS

To:  Wells Fargo Bank, N.A.
     1015 10th Avenue S.E.
     Minneapolis Minnesota 55414
     Attn: ______________________

     Re:  Custodial Agreement, dated as of May 30, 2007 among HSBC Bank USA,
          National Association, Merrill Lynch Mortgage Investors, Inc. and Wells
          Fargo Bank, N.A.

     In connection with the administration of the Mortgage Loans held by you as
Custodian for the Owner pursuant to the above-captioned Custodial Agreement, we
request the release, and hereby acknowledge receipt, of the Custodian's Mortgage
File for the Mortgage Loan described below, for the reason indicated.

          Mortgage Loan Number: ________________________________________________

          Mortgagor Name, Address & Zip Code: __________________________________

          Reason for Requesting Documents (check one):

     [ ]  1. Mortgage Paid in full

     [ ]  2.  Foreclosure

     [ ]  3.  Substitution

     [ ]  4. Other Liquidation (Repurchases, etc.)

     [ ]  5. Nonliquidation

                                        Reason:
                                                --------------------------------

                                        By:
                                            ------------------------------------
                                            (authorized signer)
                                        Issuer:
                                                --------------------------------
                                        Address:
                                                 -------------------------------
                                        Date:
                                              ----------------------------------

                                       D-1

<PAGE>

          Custodian

          Wells Fargo Bank, N.A.

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

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

-------------------------------------   -------------------------
Signature                               Date

          Documents returned to Custodian:

-------------------------------------   -------------------------
Custodian                               Date

                                       D-2

<PAGE>

                                   EXHIBIT E-1

                           FORM OF TRANSFEREE'S LETTER
                                     [DATE]

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 554479
Attention: Corporate Trust Services - Merrill Lynch Alternative Note Asset
Trust, Series 2007-AF1

          Ladies and Gentlemen:

          We propose to purchase Merrill Lynch Alternative Note Asset Trust,
Series 2007-AF1 Mortgage Pass-Through Certificates, Class A-R, described in the
Prospectus Supplement, dated May 29, 2007, and the Prospectus, dated May 22,
2007. Capitalized terms used but not defined herein shall have the meanings
assigned to them in the Pooling and Servicing Agreement, dated May 1, 2007
relating to this issuance of the Merrill Lynch Alternative Note Asset Trust,
Series 2007-AF1 Mortgage Pass-Through Certificates (the "Pooling and servicing
Agreement").

          1. We certify that (a) we are not a disqualified organization and (b)
we are not purchasing such Class A-R Certificate on behalf of a disqualified
organization; for this purpose the term "disqualified organization" means the
United States, any state or political subdivision thereof, any foreign
government, any international organization, any agency or instrumentality of any
of the foregoing (except any entity treated as other than an instrumentality of
the foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code
of 1986, as amended (the "Code")), any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from taxation under the
Code (unless such organization is subject to tax on excess inclusions) and any
organization that is described in Section 1381(a)(2)(C) of the Code. We
understand that any breach by us of this certification may cause us to be liable
for an excise tax imposed upon transfers to disqualified organizations.

          2. We certify that (a) we have historically paid our debts as they
became due, (b) we intend, and believe that we will be able, to continue to pay
our debts as they become due in the future, (c) we understand that, as
beneficial owner of the Class A-R Certificate, we may incur tax liabilities in
excess of any cash flows generated by the Class A-R Certificate, and (d) we
intend to pay any taxes associated with holding the Class A-R Certificate as
they become due and (e) we will not cause income from the Class A-R Certificate
to be attributable to a foreign permanent establishment or fixed base (within
the meaning of an applicable income tax treaty) of ours or another U.S.
taxpayer.

                                      E-1-1

<PAGE>

          3. We acknowledge that we will be the beneficial owner of the Class
A-R Certificate and:(1)

          ____ The Class A-R Certificate will be registered in our name.

          ____ The Class A-R Certificate will be held in the name of our
               nominee, _________________, which is not a disqualified
               organization.

          4. We certify that we are not an employee benefit plan subject to
Title I of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), a plan subject to Section 4975 of the Code or a plan subject to
federal, state, local, non-U.S. or other law substantively similar to the
foregoing provisions of ERISA or the Code (each, a "Plan"), and are not directly
or indirectly acquiring the Class A-R Certificate on behalf of or with any
assets of a Plan.

          5. We certify that (i) we are a U.S. person or (ii) we will hold the
Class A-R Certificate in connection with the conduct of a trade or business
within the United States and have furnished the transferor and the Securities
Administrator with a duly completed and effective Internal Revenue Service Form
W-8ECI or successor form at the time and in the manner required by the Code; for
this purpose the term "U.S. person" means a citizen or resident of the United
States, a corporation, or partnership (unless, in the case of a partnership,
Treasury regulations are adopted that provide otherwise) created or organized in
or under the laws of the United States, any State thereof or the District of
Columbia, including an entity treated as a corporation or partnership for
federal income tax purposes, an estate whose income is subject to United States
federal income tax regardless of the source of its income, or a trust if a court
within the United States is able to exercise primary supervision over the
administration of the trust and one or more such U.S. persons have the authority
to control all substantial decisions of the trust (or, to the extent provided in
applicable Treasury regulations, certain trusts in existence on August 20, 1996
which are eligible to elect to be treated as U.S. Persons. We agree that any
breach by us of this certification shall render the transfer of any interest in
the Class A-R Certificate to us absolutely null and void and shall cause no
rights in the Class A-R Certificate to vest in us.

          6. We agree that in the event that at some future time we wish to
transfer any interest in the Class A-R Certificate, we will transfer such
interest in the Class A-R Certificate only (a) to a transferee that (i) is not a
disqualified organization and is not purchasing such interest in the Class A-R
Certificate on behalf of a disqualified organization, (ii) is a U.S. person or
will hold the Class A-R Certificate in connection with the conduct of a trade or
business within the United States and will furnish us and the Securities
Administrator with a duly completed and effective Internal Revenue Service Form
W-8ECI or successor form at the time and in the manner required by the Code and
(iii) has delivered to the Securities Administrator a letter in the form of this
letter (including the affidavit appended hereto) and, we will provide the
Securities Administrator a written statement substantially in the form of
Exhibit E-2 to the Pooling and Servicing Agreement.

----------
(1)  Check appropriate box and if necessary fill in the name of the Transferee's
     nominee.

                                      E-1-2

<PAGE>

          7. We hereby designate _______________________ as our fiduciary to act
as the tax matters person for each of the REMICs provided for in the Pooling and
Servicing Agreement in which the Class A-R Certificate represents the residual
interest.

                                        Very truly yours,

                                        [Purchaser]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

Accepted as of __________ __, 200__

MERRILL LYNCH MORTGAGE INVESTORS, INC.

By:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

                                      E-1-3

<PAGE>

                                   APPENDIX A

                    Affidavit pursuant to (i) Section 860E(e)(4) of the Internal
          Revenue Code of 1986, as amended, and (ii) certain provisions of the
          Pooling and Servicing Agreement

Under penalties of perjury, the undersigned declares that the following is true:

          1.   He or she is an officer of _________________________ (the
               "Investor"),

          2.   the Investor's Employer Identification number is __________,

          3.   the Investor is not a "disqualified organization" (as defined
               below), has no plan or intention of becoming a disqualified
               organization, and is not acquiring any of its interest in the
               Merrill Lynch Alternative Note Asset Trust, Series 2007-AF1
               Mortgage Pass-Through Certificates, Class A-R Certificate on
               behalf of a disqualified organization or any other entity,

          4.   unless Merrill Lynch Mortgage Investors, Inc. ("MANA") has
               consented to the transfer to the Investor, the Investor is a
               "U.S. person" (as defined below),

          5.   that no purpose of the transfer is to avoid or impede the
               assessment or collection of tax,

          6.   the Investor has historically paid its debts as they became due,

          7.   the Investor intends, and believes that it will be able, to
               continue to pay its debts as they become due in the future,

          8.   the Investor understands that, as beneficial owner of the Class
               A-R Certificate, it may incur tax liabilities in excess of any
               cash flows generated by the Class A-R Certificate,

          9.   the Investor intends to pay any taxes associated with holding the
               Class A-R Certificate as they become due,

          10.  the Investor consents to any amendment of the Pooling and
               Servicing Agreement that shall be deemed necessary by MANA (upon
               advice of counsel) to constitute a reasonable arrangement to
               ensure that the Class A-R Certificate will not be owned directly
               or indirectly by a disqualified organization, and

          11.  IF BRACKETED, THE FOLLOWING CERTIFICATIONS ARE INAPPLICABLE [the
               transfer is not a direct or indirect transfer of the Class A-R
               Certificate to a foreign permanent establishment or fixed base
               (within the meaning of an applicable income tax treaty) of the
               Investor, and as to each of the residual interests represented by
               the Class A-R Certificate, the present value of the anticipated
               tax liabilities associated with holding such residual interest
               does not exceed the sum of:

                                      E-1-4

<PAGE>

               A.   the present value of any consideration given to the Investor
                    to acquire such residual interest;

               B.   the present value of the expected future distributions on
                    such residual interest; and

               C.   the present value of the anticipated tax savings associated
                    with holding such residual interest as the related REMIC
                    generates losses.

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

[(11)(A)  at the time of the transfer, and at the close of each of the
          Investor's two fiscal years preceding the Investor's fiscal year of
          transfer, the Investor's gross assets for financial reporting purposes
          exceed $100 million and its net assets for financial reporting
          purposes exceed $10 million; and

     (B)  the Investor is an eligible corporation as defined in Treasury
          regulations Section 1.860E-1(c)(6)(i) and has agreed in writing that
          any subsequent transfer of the Class A-R Certificate will be to
          another eligible corporation in a transaction that satisfies Treasury
          regulation Sections 1.860E-1(c)(4)(i), 1.860E-1(c)(4)(ii),
          1.860E-1(c)(4)(iii) and 1.860E-1(c)(5) and such transfer will not be a
          direct or indirect transfer to a foreign permanent establishment
          (within the meaning of an applicable income tax treaty) of a domestic
          corporation.

For purposes of this declaration, the gross and net assets of the Investor do
not include any obligation of any related person as defined in Treasury
regulation Section 1.860E-1(c)(6)(ii) or any other asset if a principal purpose
for holding or acquiring the other asset is to permit the Investor to make this
declaration or to satisfy the requirements of Treasury regulation Section
1.860E-1(c)(5)(i).]

(12) The Investor will not cause income from the Class A-R Certificate to be
attributable to a foreign permanent establishment or fixed base (within the
meaning of an applicable income tax treaty) of the Investor or another U.S.
taxpayer.

                                      E-1-5

<PAGE>

For purpose of this affidavit, the term "disqualified organization" means the
United States, any state or political subdivision thereof, any foreign
government, any international organization, any agency or instrumentality of any
of the foregoing (except any entity treated as other than an instrumentality of
the foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code
of 1986, as amended (the "Code")), any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from taxation under the
Code (unless such organization is subject to tax on excess inclusions) and any
organization that is described in Section 1381(a)(2)(C) of the Code and the term
"U.S. Person" means a citizen or resident of the United States, a corporation or
partnership (unless, in the case of a partnership, Treasury regulations are
adopted that provide otherwise) created or organized in or under the laws of the
United States, any state thereof or the District of Columbia, including an
entity treated as a corporation or partnership for federal income tax purposes,
an estate whose income is subject to Unites States federal income tax regardless
of its source, or a trust if a court within the United States is able to
exercise primary supervision over the administration of such trust, and one or
more such U.S. Persons have the authority to control all substantial decisions
of such trust, (or, to the extent provided in applicable Treasury regulations,
certain trusts in existence on August 20, 1996 which are eligible to elect to be
treated as U.S. Persons).

                                      E-1-6

<PAGE>

IN WITNESS WHEREOF, the Investor has caused this instrument to be executed on
its behalf, pursuant to authority of its Board of Directors, by its
_____________ this ___ day of ______________, 20__.

                                        [INVESTOR]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

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

Subscribed and sworn before me this ___ day of ______________, 20__.

NOTARY PUBLIC

-------------------------------------

COUNTY OF
          ---------------------------

STATE OF
         ----------------------------

My commission expires the _____ day of __________ 20__.

                                      E-1-7

<PAGE>

                                   EXHIBIT E-2

                         FORM OF TRANSFEROR CERTIFICATE

                                     [DATE]

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 554479

Attention: Corporate Trust Services - Merrill Lynch Alternative Note Asset
Trust, Series 2007-AF1

Re: Merrill Lynch Alternative Note Asset Trust, Series 2007-AF1

          _______________________ (the "Transferor") has reviewed the attached
affidavit of _____________________________ (the "Transferee"), and has no actual
knowledge that such affidavit is not true, and has no reason to believe that the
Transferee has the intention to impede the assessment or collection of any
federal, state or local taxes legally required to be paid with respect to the
Class A-R Certificate referred to in the attached affidavit. In addition, the
Transferor has conducted a reasonable investigation at the time of the transfer
and found that the Transferee had historically paid its debts as they came due
and found no significant evidence to indicate that the Transferee will not
continue to pay its debts as they become due.

                                        Very truly yours,

                                        [Transferor]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                      E-2-1

<PAGE>

                                   EXHIBIT F-1

                    FORM OF TRANSFEROR REPRESENTATION LETTER

                                                          ______________, 200___

Merrill Lynch Mortgage Investors, Inc.
4 World Financial Center
New York, New York 10281

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 554479

     Re: Merrill Lynch Mortgage Investors, Inc.,
         Mortgage Pass-Through Certificates, Series 2007-AF1, Class [_____]

Ladies and Gentlemen:

     In connection with the sale by ___________ (the "Seller") to ________ (the
"Purchaser") of $_________ Initial Certificate Principal Balance of Mortgage
Pass-Through Certificates, Series 2007-AF1, Class _____ (the "Certificates"),
issued pursuant to the Pooling and Servicing Agreement (the "Pooling and
Servicing Agreement"), dated as of May 1, 2007 among Merrill Lynch Mortgage
Investors, Inc., as depositor (the "Depositor"), Wells Fargo Bank, N.A. as
master servicer (in such capacity, the "Master Servicer") and securities
administrator (in such capacity, the "Securities Administrator"), and HSBC Bank
USA, National Association, as trustee (the "Trustee"). The Seller hereby
certifies, represents and warrants to, and covenants with, the Depositor and the
Securities Administrator that:

     Neither the Seller nor anyone acting on its behalf has (a) offered,
pledged, sold, disposed of or otherwise transferred any Certificate, any
interest in any Certificate or any other similar security to any person in any
manner, (b) has solicited any offer to buy or to accept a pledge, disposition or
other transfer of any Certificate, any interest in any Certificate or any other
similar security from any person in any manner, (c) has otherwise approached or
negotiated with respect to any Certificate, any interest in any Certificate or
any other similar security with any person in any manner, (d) has made any
general solicitation by means of general advertising or in any other manner, or
(e) has taken any other action, that (as to any of (a) through (e) above) would
constitute a distribution of the Certificates under the Securities Act of 1933
(the "Act"), that would render the disposition of any Certificate a violation of
Section 5 of the Act or any state securities law, or that would require
registration or qualification pursuant thereto. The Seller will not act in any
manner set forth in the foregoing sentence with respect to any Certificate. The

                                     F-1-1

<PAGE>

Seller has not and will not sell or otherwise transfer any of the Certificates,
except in compliance with the provisions of the Pooling and Servicing Agreement.

                                        Very truly yours,

                                        ----------------------------------------
                                        (Seller)

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                      F-1-2

<PAGE>

                                   EXHIBIT F-2

             FORM OF INVESTOR REPRESENTATION LETTER (NON-RULE 144A)

                                                               __________, 200__

Merrill Lynch Mortgage Investors, Inc.
4 World Financial Center
New York, New York 10281

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 554479

     Re: Merrill Lynch Mortgage Investors, Inc.,
         Mortgage Pass-Through Certificates, Series 2007-AF1, Class [_____]

Ladies and Gentlemen:

     In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (The "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we are an
institutional "accredited investor," as defined in Regulation D under the Act,
and have such knowledge and experience in financial and business matters that we
are capable of evaluating the merits and risks of investments in the
Certificates, (c) we have had the opportunity to ask questions of and receive
answers from the Depositor concerning the purchase of the Certificates and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Certificates, (d) solely in the case of an ERISA
Restricted Certificate, we (i) are not an employee benefit plan or arrangement
subject to Title I of the Employee Retirement Income Security Act of 1974, as
amended ("ERISA"), a plan subject to Section 4975 of the Internal Revenue Code
of 1986, as amended (the "Code") or a plan subject to any provisions under any
federal, state, local, non-U.S. or other laws or regulations that are
substantively similar to foregoing provisions of ERISA or the Code ("Similar
Law") (collectively, a "Plan"), and are not directly or indirectly acquiring
this Certificate for, on behalf of or with any assets of any such Plan, (ii) if
the Certificate has been the subject of an ERISA-Qualifying Underwriting, are an
insurance company that is acquiring the Certificate with assets of an "insurance
company general account" as defined in Section V(E) of Prohibited Transaction
Class Exemption ("PTCE") 95-60, and the acquisition and holding of the
Certificate are covered and exempt under Sections I and III of PTCE 95-60, or
(iii) solely in the case of a Definitive Certificate, shall deliver herewith an
Opinion of Counsel satisfactory to the Securities Administrator, and upon which
the Securities Administrator shall be entitled to rely, to the effect that the
acquisition and holding of this certificate by the transferee will not result in
a nonexempt prohibited transaction under ERISA or the Code, or a violation of
Similar Law, and will not subject the Depositor, the Master Servicer, the
Securities Administrator or the Trustee to any obligation in addition to those

                                      F-2-1

<PAGE>

undertaken by such entities in the Pooling and Servicing Agreement, which
Opinion of Counsel shall not be an expense of the Depositor, the Master
Servicer, the Securities Administrator or the Trustee, (e) we are acquiring the
Certificates for investment for our own account and not with a view to any
distribution of such Certificates (but without prejudice to our right at all
times to sell or otherwise dispose of the Certificates in accordance with clause
(g) below), (f) we have not offered or sold any Certificates to, or solicited
offers to buy any Certificates from, any person, or otherwise approached or
negotiated with any person with respect thereto, or taken any other action which
would result in a violation of Section 5 of the Act, and (g) we will not sell,
transfer or otherwise dispose of any Certificates unless (1) such sale, transfer
or other disposition is made pursuant to an effective registration statement
under the Act or is exempt from such registration requirements, and if
requested, we will at our expense provide an opinion of counsel satisfactory to
the addressees of this Certificate that such sale, transfer or other disposition
may be made pursuant to an exemption from the Act, (2) The purchaser or
transferee of such Certificate has executed and delivered to you a certificate
to substantially the same effect as this certificate, and (3) The purchaser or
transferee has otherwise complied with any conditions for transfer set forth in
the Pooling and Servicing Agreement.

                                        Very truly yours,

                                        ----------------------------------------
                                        Print Name of Transferee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

                                      F-2-2

<PAGE>

                                   EXHIBIT F-3

                            FORM OF RULE 144A LETTER

                                                              ____________, 2007

Merrill Lynch Mortgage Investors, Inc.
4 World Financial Center
New York, New York 10281

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 554479

     Re: Merrill Lynch Mortgage Investors, Inc.,
         Mortgage Pass-Through Certificates, Series 2007-AF1, Class [_____]

Ladies and Gentlemen:

     In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (The "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) solely in the case of an ERISA Restricted
Certificate, we (i) are not an employee benefit plan or arrangement subject to
Title I of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), a plan subject to Section 4975 of the Internal Revenue Code of 1986,
as amended (the "Code") or a plan subject to any provisions under any federal,
state, local, non-U.S. or other laws or regulations that are substantively
similar to foregoing provisions of ERISA or the Code ("Similar Law")
(collectively, a "Plan"), and are not directly or indirectly acquiring this
Certificate for, on behalf of or with any assets of any such Plan, (ii) if the
Certificate has been the subject of an ERISA-Qualifying Underwriting, are an
insurance company that is acquiring the Certificate with assets of an "insurance
company general account" as defined in Section V(E) of Prohibited Transaction
Class Exemption ("PTCE") 95-60, and the acquisition and holding of the
Certificate are covered and exempt under Sections I and III of PTCE 95-60, or
(iii) solely in the case of a Definitive Certificate, shall deliver herewith an
Opinion of Counsel satisfactory to the Securities Administrator, and upon which
the Securities Administrator shall be entitled to rely, to the effect that the
acquisition and holding of this certificate by the transferee will not result in
a nonexempt prohibited transaction under ERISA or the Code, or a violation of
Similar Law, and will not subject the Depositor, the Master Servicer, the
Securities Administrator or the Trustee to any obligation in addition to those
undertaken by such entities in the Pooling and Servicing Agreement, which
Opinion of Counsel

                                      F-3-1

<PAGE>

shall not be an expense of the Depositor, the Master Servicer, the Securities
Administrator or the Trustee, (e) we have not, nor has anyone acting on our
behalf offered, transferred, pledged, sold or otherwise disposed of the
Certificates, any interest in the Certificates or any other similar security to,
or solicited any offer to buy or accept a transfer, pledge or other disposition
of the Certificates, any interest in the Certificates or any other similar
security from, or otherwise approached or negotiated with respect to the
Certificates, any interest in the Certificates or any other similar security
with, any person in any manner, or made any general solicitation by means of
general advertising or in any other manner, or taken any other action, that
would constitute a distribution of the Certificates under the Act or that would
render the disposition of the Certificates a violation of Section 5 of the Act
or require registration pursuant thereto, nor will act, nor has authorized or
will authorize any person to act, in such manner with respect to the
Certificates, (f) we are a "qualified institutional buyer" as that term is
defined in Rule 144A under the Act ("Rule 144A") and have completed either of
the forms of certification to that effect attached hereto as Annex 1 or Annex 2,
(g) we are aware that the sale to us is being made in reliance on Rule 144A, and
(h) we are acquiring the Certificates for our own account or for resale pursuant
to Rule 144A and further, understand that such Certificates may be resold,
pledged or transferred only (A) to a person reasonably believed to be a
qualified institutional buyer that purchases for its own account or for the
account of a qualified institutional buyer to whom notice is given that the
resale, pledge or transfer is being made in reliance on Rule 144A, or (B)
pursuant to another exemption from registration under the Act.

                                        Very truly yours,

                                        ----------------------------------------
                                        Print Name of Transferee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

                                      F-3-2
<PAGE>

                                                          ANNEX I TO EXHIBIT F-3

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Transferees Other Than Registered Investment Companies]

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

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

     2. In connection with purchases by the Buyer, The Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("Rule 144A") because (i) The Buyer owned and/or
invested on a discretionary basis $___________(1) in securities (except for the
1 excluded securities referred to below) as of the end of the Buyer's most
recent fiscal year (such amount being calculated in accordance with Rule 144A
and (ii) The Buyer satisfies the criteria in the category marked below.

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

     ___ Bank. The Buyer (a) is a national bank or banking institution organized
under the laws of any State, territory or the District of Columbia, The business
of which is substantially confined to banking and is supervised by the State or
territorial banking commission or similar official or is a foreign bank or
equivalent institution, and (b) has an audited net worth of at least $25,000,000
as demonstrated in its latest annual financial statements, a copy of which is
attached hereto.

     ___ Savings and Loan. The Buyer (a) is a savings and loan association,
building and loan association, cooperative bank, homestead association or
similar institution, which is supervised and examined by a State or Federal
authority having supervision over any such institutions or is a foreign savings
and loan association or equivalent institution and (b) has an audited net worth
of at least $25,000,000 as demonstrated in its latest annual financial
statements, a copy of which is attached hereto.

     ___ Broker-dealer. The Buyer is a dealer registered pursuant to Section 15
of the Securities Exchange Act of 1934.

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

                                      F-3-3

<PAGE>

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

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

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

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

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

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

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

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

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

                                      F-3-4

<PAGE>

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

                                        ----------------------------------------
                                        Print Name of Buyer

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
                                        Date:
                                              ----------------------------------

                                      F-3-5

<PAGE>

                                                         ANNEX II TO EXHIBIT F-3

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [For Transferees That are Registered Investment Companies]

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

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

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

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

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

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

          4. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) securities issued or guaranteed by
the U.S. or any instrumentality thereof, (iii) bank deposit notes and
certificates of deposit, (iv) loan participations, (v) repurchase agreements,

                                      F-3-6

<PAGE>

(vi) securities owned but subject to a repurchase agreement and (vii) currency,
interest rate and commodity swaps.

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

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

                                        ----------------------------------------
                                        Print Name of Buyer or Adviser

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        IF AN ADVISER:

                                        ----------------------------------------
                                        Print Name of Buyer

                                        Date:
                                              ----------------------------------

                                      F-3-7

<PAGE>

                                    EXHIBIT G

                             [INTENTIONALLY OMITTED]

                                       G-8

<PAGE>

                                    EXHIBIT H

                             [INTENTIONALLY OMITTED]

                                       H-1

<PAGE>

                                   EXHIBIT I-1

                ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

                        GREENPOINT MORTGAGE FUNDING, INC.

                          [SEE EXHIBITS 99.5 AND 99.6]

                                      I-1-1

<PAGE>

                                   EXHIBIT I-2

                ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

                            PHH MORTGAGE CORPORATION

                             [INTENTIONALLY OMITTED]

                                      I-2-1

<PAGE>

                                   EXHIBIT I-3

                               SERVICING AGREEMENT

                           WILSHIRE CREDIT CORPORATION

                               [SEE EXHIBIT 99.8]

                                      I-3-1

<PAGE>

                                   EXHIBIT I-4

                ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

                       COUNTRYWIDE HOME LOANS SERVICING LP

                               [SEE EXHIBIT 99.3]

                                      I-4-1

<PAGE>

                                   EXHIBIT I-5

                ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

                        RESIDENTIAL FUNDING COMPANY, LLC

                             [INTENTIONALLY OMITTED]

                                      I-5-1

<PAGE>

                                   EXHIBIT I-6

                ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

                             WELLS FARGO BANK, N.A.

                             [INTENTIONALLY OMITTED]

                                      I-6-1

<PAGE>

                                   EXHIBIT J-1

                FORM OF STACK I MORTGAGE LOAN PURCHASE AGREEMENT

                             [INTENTIONALLY OMITTED]

                                      J-1-1

<PAGE>

                                   EXHIBIT J-2

                FORM OF STACK II MORTGAGE LOAN PURCHASE AGREEMENT

                             [INTENTIONALLY OMITTED]

                                      J-2-1
<PAGE>

                                    EXHIBIT K

                       SERVICING CRITERIA TO BE ADDRESSED
                           IN ASSESSMENT OF COMPLIANCE
                          (RMBS UNLESS OTHERWISE NOTED)

     KEY: X - obligation

WHERE THERE ARE MULTIPLE CHECKS FOR CRITERIA THE ATTESTING PARTY WILL IDENTIFY
IN ITS MANAGEMENT ASSERTION THAT IT IS ATTESTING ONLY TO THE PORTION OF THE
DISTRIBUTION CHAIN IT IS RESPONSIBLE FOR IN THE RELATED TRANSACTION AGREEMENTS.
CAPITALIZED TERMS USED HEREIN BUT NOT DEFINED HEREIN SHALL HAVE THE MEANINGS
ASSIGNED TO THEM IN THE POOLING AND SERVICING AGREEMENT, DATED AS OF MAY 1,
2007, AMONG MERRILL LYNCH MORTGAGE INVESTORS, INC., AS DEPOSITOR, WELLS FARGO
BANK, N.A., AS MASTER SERVICER AND SECURITIES ADMINISTRATOR, AND HSBC BANK USA,
NATIONAL ASSOCIATION, AS TRUSTEE.

<TABLE>
<CAPTION>
                                                                    SECURITIES     MASTER
REG AB REFERENCE                SERVICING CRITERIA                ADMINISTRATOR   SERVICER
----------------   ------------------------------------------     -------------   --------
<S>                <C>                                            <C>             <C>
                   GENERAL SERVICING  CONSIDERATIONS

1122(d)(1)(i)      Policies and procedures are instituted to            X             X
                   monitor any performance or other triggers
                   and events of default in accordance with the
                   transaction agreements.

1122(d)(1)(ii)     If any material servicing activities are             X             X
                   outsourced to third parties, policies and
                   procedures are instituted to monitor the
                   third party's performance and compliance
                   with such servicing activities.

1122(d)(1)(iii)    Any requirements in the transaction                 N/A           N/A
                   agreements to maintain a back-up servicer
                   for the Pool Assets are maintained.

1122(d)(1)(iv)     A fidelity bond and errors and omissions                           X
                   policy is in effect on the party
                   participating in the servicing function
                   throughout the reporting period in the
                   amount of coverage required by and otherwise
                   in accordance with the terms of the
                   transaction agreements.

                   CASH COLLECTION AND ADMINISTRATION

1122(d)(2)(i)      Payments on pool assets are deposited into           X             X
                   the appropriate custodial bank accounts and
                   related bank clearing accounts no more than
                   two business days following receipt, or such
                   other number of days specified in the
                   transaction agreements.

1122(d)(2)(ii)     Disbursements made via wire transfer on              X             X
                   behalf of an obligor or to an investor are
                   made only by authorized personnel.

1122(d)(2)(iii)    Advances of funds or guarantees regarding                          X
                   collections, cash flows or distributions,
                   and any interest or other fees charged for
                   such advances, are made, reviewed and
                   approved as specified in the transaction
                   agreements.

1122(d)(2)(iv)     The related accounts for the transaction,            X             X
                   such as cash reserve accounts or accounts
                   established as a form of over
                   collateralization, are separately maintained
                   (e.g., with respect to commingling of cash)
                   as set forth in the transaction agreements.
</TABLE>

                                      K-1

<PAGE>

<TABLE>
<CAPTION>
                                                                    SECURITIES     MASTER
REG AB REFERENCE                SERVICING CRITERIA                ADMINISTRATOR   SERVICER
----------------   -------------------------------------------    -------------   --------
<S>                <C>                                            <C>             <C>
1122(d)(2)(v)      Each custodial account is maintained at a            X             X
                   federally insured depository institution as
                   set forth in the transaction agreements. For
                   purposes of this criterion, "federally
                   insured depository institution" with respect
                   to a foreign financial institution means a
                   foreign financial institution that meets the
                   requirements of Rule 13k-1(b)(1) of the
                   Securities Exchange Act.

1122(d)(2)(vi)     Unissued checks are safeguarded so as to
                   prevent unauthorized access.

1122(d)(2)(vii)    Reconciliations are prepared on a monthly            X             X
                   basis for all asset-backed securities
                   related bank accounts, including custodial
                   accounts and related bank clearing accounts.
                   These reconciliations are (A) mathematically
                   accurate; (B) prepared within 30 calendar
                   days after the bank statement cutoff date,
                   or such other number of days specified in
                   the transaction agreements; (C) reviewed and
                   approved by someone other than the person
                   who prepared the reconciliation; and (D)
                   contain explanations for reconciling items.
                   These reconciling items are resolved within
                   90 calendar days of their original
                   identification, or such other number of days
                   specified in the transaction agreements.

                   INVESTOR REMITTANCES AND REPORTING

1122(d)(3)(i)      Reports to investors, including those to be          X             X
                   filed with the Commission, are maintained in
                   accordance with the transaction agreements
                   and applicable Commission requirements.
                   Specifically, such reports (A) are prepared
                   in accordance with timeframes and other
                   terms set forth in the transaction
                   agreements; (B) provide information
                   calculated in accordance with the terms
                   specified in the transaction agreements; (C)
                   are filed with the Commission as required by
                   its rules and regulations; and (D) agree
                   with investors' or the trustee's records as
                   to the total unpaid principal balance and
                   number of Pool Assets serviced by the
                   Servicer.

1122(d)(3)(ii)     Amounts due to investors are allocated and           X             X
                   remitted in accordance with timeframes,
                   distribution priority and other terms set
                   forth in the transaction agreements.

1122(d)(3)(iii)    Disbursements made to an investor are posted         X             X
                   within two business days to the Servicer's
                   investor records, or such other number of
                   days specified in the transaction
                   agreements.

1122(d)(3)(iv)     Amounts remitted to investors per the                X             X
                   investor reports agree with cancelled
                   checks, or other form of payment, or
                   custodial bank statements.

                   POOL ASSET ADMINISTRATION

1122(d)(4)(i)      Collateral or security on pool assets is
                   maintained as required by the transaction
                   agreements or related pool asset documents.

1122(d)(4)(ii)     Pool assets and related documents are
                   safeguarded as required by the transaction
                   agreements

1122(d)(4)(iii)    Any additions, removals or substitutions to
                   the asset pool are made, reviewed and
                   approved in accordance with any conditions
                   or requirements in the transaction
                   agreements.
</TABLE>

                                      K-2

<PAGE>

<TABLE>
<CAPTION>
                                                                    SECURITIES     MASTER
REG AB REFERENCE                SERVICING CRITERIA                ADMINISTRATOR   SERVICER
----------------   --------------------------------------------   -------------   --------
<S>                <C>                                            <C>             <C>
1122(d)(4)(iv)     Payments on pool assets, including any
                   payoffs, made in accordance with the related
                   pool asset documents are posted to the
                   Servicer's obligor records maintained no
                   more than two business days after receipt,
                   or such other number of days specified in
                   the transaction agreements, and allocated to
                   principal, interest or other items (e.g.,
                   escrow) in accordance with the related pool
                   asset documents.

1122(d)(4)(v)      The Servicer's records regarding the pool
                   assets agree with the Servicer's records
                   with respect to an obligor's unpaid
                   principal balance.

1122(d)(4)(vi)     Changes with respect to the terms or status
                   of an obligor's pool assets (e.g., loan
                   modifications or re-agings) are made,
                   reviewed and approved by authorized
                   personnel in accordance with the transaction
                   agreements and related pool asset documents.

1122(d)(4)(vii)    Loss mitigation or recovery actions (e.g.,
                   forbearance plans, modifications and deeds
                   in lieu of foreclosure, foreclosures and
                   repossessions, as applicable) are initiated,
                   conducted and concluded in accordance with
                   the timeframes or other requirements
                   established by the transaction agreements.

1122(d)(4)(viii)   Records documenting collection efforts are
                   maintained during the period a pool asset is
                   delinquent in accordance with the
                   transaction agreements. Such records are
                   maintained on at least a monthly basis, or
                   such other period specified in the
                   transaction agreements, and describe the
                   entity's activities in monitoring delinquent
                   pool assets including, for example, phone
                   calls, letters and payment rescheduling
                   plans in cases where delinquency is deemed
                   temporary (e.g., illness or unemployment).

1122(d)(4)(ix)     Adjustments to interest rates or rates of
                   return for pool assets with variable rates
                   are computed based on the related pool asset
                   documents.

1122(d)(4)(x)      Regarding any funds held in trust for an
                   obligor (such as escrow accounts): (A) such
                   funds are analyzed, in accordance with the
                   obligor's pool asset documents, on at least
                   an annual basis, or such other period
                   specified in the transaction agreements; (B)
                   interest on such funds is paid, or credited,
                   to obligors in accordance with applicable
                   pool asset documents and state laws; and (C)
                   such funds are returned to the obligor
                   within 30 calendar days of full repayment of
                   the related pool assets, or such other
                   number of days specified in the transaction
                   agreements.

1122(d)(4)(xi)     Payments made on behalf of an obligor (such
                   as tax or insurance payments) are made on or
                   before the related penalty or expiration
                   dates, as indicated on the appropriate bills
                   or notices for such payments, provided that
                   such support has been received by the
                   servicer at least 30 calendar days prior to
                   these dates, or such other number of days
                   specified in the transaction agreements.

1122(d)(4)(xii)    Any late payment penalties in connection
                   with any payment to be made on behalf of an
                   obligor are paid from the Servicer's funds
                   and not charged to the obligor, unless the
                   late payment was due to the obligor's error
                   or omission.
</TABLE>

                                      K-3

<PAGE>

<TABLE>
<CAPTION>
                                                                    SECURITIES     MASTER
REG AB REFERENCE                SERVICING CRITERIA                ADMINISTRATOR   SERVICER
----------------   ------------------------------------------     -------------   --------
<S>                <C>                                            <C>             <C>
1122(d)(4)(xiii)   Disbursements made on behalf of an obligor
                   are posted within two business days to the
                   obligor's records maintained by the
                   servicer, or such other number of days
                   specified in the transaction agreements.

1122(d)(4)(xiv)    Delinquencies, charge-offs and uncollectible                       X
                   accounts are recognized and recorded in
                   accordance with the transaction
                   agreements.

1122(d)(4)(xv)     Any external enhancement or other support,
                   identified in Item 1114(a)(1) through (3) or
                   Item 1115 of Regulation AB, is maintained as
                   set forth in the transaction agreements.
</TABLE>

                                      K-4
<PAGE>

                                    EXHIBIT L

                          SARBANES-OXLEY CERTIFICATION

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, MD 21045

Re: Merrill Lynch Alternative Note Asset Trust, Series 2007-AF1

          I, [identify the certifying individual], certify that:

          1. I have reviewed the report on Form 10-K and all reports on Form
10-D required to be filed in respect of the period covered by this report on
Form 10-K of Merrill Lynch Alternative Note Asset Trust, Series 2007-AF1 (the
"Exchange Act periodic reports");

          2. Based on my knowledge, the Exchange Act periodic reports, taken as
a whole, do not contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect
to the period covered by this report;

          3. Based on my knowledge, all of the distribution, servicing and other
information required to be provided under Form 10-D for the period covered by
this report is included in the Exchange Act periodic reports;

          4. [I am responsible for reviewing the activities performed by the
servicer(s) and based on my knowledge and the compliance review(s) conducted in
preparing the servicer compliance statement(s) required in this report under
Item 1123 of Regulation AB, and except as disclosed in the Exchange Act periodic
reports, the servicer(s) [has/have] fulfilled [its/their] obligations under the
servicing agreement(s) in all material respects; and]

          5. All of the reports on assessment of compliance with servicing
criteria for ABS and their related attestation reports on assessment of
compliance with servicing criteria for asset-backed securities required to be
included in this report in accordance with Item 1122 of Regulation AB and
Exchange Act Rules 13a-18 and 15d-18 have been included as an exhibit to this
report, except as otherwise disclosed in this report. Any material instances of
noncompliance described in such reports have been disclosed in this report on
Form 10-K.

                                       L-1

<PAGE>

          [In giving the certifications above, I have reasonably relied on
information provided to me by the following unaffiliated parties [name of
servicer, sub-servicer, co-servicer, depositor or trustee].]

Date:
      -------------------------------

                                        ----------------------------------------
                                        [Signature]
                                        [Title]
                                                --------------------------------

                                       L-2

<PAGE>

                                    EXHIBIT M

                  FORM OF BACK-UP SARBANES-OXLEY CERTIFICATION

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, MD 21045

Re: Merrill Lynch Alternative Note Asset Trust, Series 2007-AF1

          [_______], the [_______] of [_______] (the "Company") hereby certifies
to the Depositor, the Master Servicer and the Securities Administrator, and each
of their officers, directors and affiliates that:

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

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

          (3) Based on my knowledge, all of the Company Servicing Information
required to be provided by the Company under the Agreement has been provided to
the Depositor, the Master Servicer and the Securities Administrator;

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

                                       M-1

<PAGE>

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

          Capitalized terms used but not defined herein have the meanings
ascribed to them in the Pooling and Servicing Agreement, dated as of May 1,
2007, among Merrill Lynch Mortgage Investors, Inc., as depositor (the
"Depositor"), Wells Fargo Bank, N.A., as master servicer (in such capacity, the
"Master Servicer") and securities administrator (in such capacity, the
"Securities Administrator") and HSBC Bank USA, National Association, as trustee
(the "Trustee").

                                        [_______]
                                        as [_______]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
                                        Date:
                                              ----------------------------------

                                       M-2

<PAGE>

                                    EXHIBIT N

                             [INTENTIONALLY OMITTED]

                                       N-1

<PAGE>

                                    EXHIBIT O

                       ADDITIONAL DISCLOSURE NOTIFICATION

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, MD 21045

RE: Merrill Lynch Alternative Note Asset Trust, Series 2007-AF1
    **Additional Form [10-D][10-K][8-K] Disclosure** Required

Ladies and Gentlemen:

          In accordance with Section 3.18(b) of the Pooling and Servicing
Agreement, dated as of May 1, 2007, among Merrill Lynch Mortgage Investors,
Inc., as depositor, Wells Fargo Bank, N.A., as master servicer and securities
administrator and HSBC Bank USA, National Association, as trustee, the
undersigned, as [_____], hereby notifies you that certain events have come to
our attention that [will] [may] need to be disclosed on Form [10-D][10-K][8-K].

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

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

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

                                        [NAME OF PARTY],
                                        as [role]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       O-1

<PAGE>

                                    EXHIBIT P

                   FORM OF ITEM 1123 CERTIFICATION OF SERVICER

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Wells Fargo Bank, N.A.
9062 Old Annapolis Road
Columbia, MD 21045

Re: Merrill Lynch Alternative Note Asset Trust, Series 2007-AF1 Mortgage
    Pass-Through Certificates

I, [identify name of certifying individual], [title of certifying individual] of
[name of servicing company] (the "Servicer"), hereby certify that:

          (1) A review of the activities of the Servicer during the preceding
calendar year and of the performance of the Servicer under the [related
servicing agreement] (the "Servicing Agreement") has been made under my
supervision; and

          (2) To the best of my knowledge, based on such review, the Servicer
has fulfilled all its obligations under the related Servicing Agreement in all
material respects throughout such year or a portion thereof[, or, if there has
been a failure to fulfill any such obligation in any material respect, I have
specified below each such failure known to me and the nature and status
thereof].

Date:
      -------------------------------

                                        [Servicer]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       P-1
<PAGE>

                                   EXHIBIT Q-1

                         ADDITIONAL FORM 10-D DISCLOSURE

                         ADDITIONAL FORM 10-D DISCLOSURE

<TABLE>
<CAPTION>
          ITEM ON FORM 10-D                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
    ITEM 1: DISTRIBUTION AND POOL
       PERFORMANCE INFORMATION

     Information included in the                     Master Servicer
         [Monthly Statement]                            Servicer
                                                Securities Administrator

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

      ITEM 2: LEGAL PROCEEDINGS

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

-    Issuing Entity (Trust Fund)          Trustee, Master Servicer, Securities
                                               Administrator and Depositor

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

-    Depositor                                          Depositor

-    Trustee                                             Trustee

-    Securities Administrator                   Securities Administrator

-    Master Servicer                                 Master Servicer

-    Custodian                                          Custodian

-    1110(b) Originator                                 Depositor

-    Any 1108(a)(2) Servicer (other                     Servicer
     than the Master Servicer or
     Securities Administrator)

-    Any other party contemplated by                    Depositor
     1100(d)(1)

ITEM 3: SALE OF SECURITIES AND USE OF                   Depositor
               PROCEEDS

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

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

                                      Q-1-1

<PAGE>

                         ADDITIONAL FORM 10-D DISCLOSURE

<TABLE>
<CAPTION>
          ITEM ON FORM 10-D                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
    ITEM 4: DEFAULTS UPON SENIOR                Securities Administrator
             SECURITIES                                  Trustee

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

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

  ITEM 5: SUBMISSION OF MATTERS TO A            Securities Administrator
       VOTE OF SECURITY HOLDERS                          Trustee

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

 ITEM 6: SIGNIFICANT OBLIGORS OF POOL                   Depositor
                ASSETS

Item 1112(b) - Significant Obligor
Financial Information*

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

   ITEM 7: SIGNIFICANT ENHANCEMENT
         PROVIDER INFORMATION

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

-    Determining applicable                             Depositor
     disclosure threshold

-    Requesting required financial                      Depositor
     information (including any
     required accountants' consent to
     the use thereof) or effecting
     incorporation by reference

Item 1115(b) - Derivative
Counterparty Financial Information*

-    Determining current maximum                        Depositor
     probable exposure

-    Determining current significance                   Depositor
     percentage

-    Requesting required financial                      Depositor
     information (including any
     required accountants' consent to
     the use thereof) or effecting
     incorporation by reference

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

                                        2

<PAGE>

                         ADDITIONAL FORM 10-D DISCLOSURE

<TABLE>
<CAPTION>
          ITEM ON FORM 10-D                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
      ITEM 8: OTHER INFORMATION         Any party responsible for the applicable
                                                Form 8-K Disclosure item

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

           ITEM 9: EXHIBITS

      Monthly Statement to                      Securities Administrator
       Certificateholders

Exhibits required by Item 601 of                        Depositor
Regulation S-K, such as material
           agreements
</TABLE>

                                        3
<PAGE>

                                   EXHIBIT Q-2

                         ADDITIONAL FORM 10-K DISCLOSURE

                         ADDITIONAL FORM 10-K DISCLOSURE

<TABLE>
<CAPTION>
          ITEM ON FORM 10-K                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
  ITEM 1B: UNRESOLVED STAFF COMMENTS                    Depositor

      ITEM 9B: OTHER INFORMATION          Any party responsible for disclosure
                                                    items on Form 8-K
Disclose any information required to
be reported on Form 8-K during the
fourth quarter covered by the Form
10-K but not reported

    ITEM 15: EXHIBITS, FINANCIAL                 Securities Administrator
         STATEMENT SCHEDULES                            Depositor

  REG AB ITEM 1112(B): SIGNIFICANT
       OBLIGORS OF POOL ASSETS

Significant Obligor Financial                           Depositor
Information*

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

   REG AB ITEM 1114(B)(2): CREDIT
   ENHANCEMENT PROVIDER FINANCIAL
             INFORMATION

-    Determining applicable                             Depositor
     disclosure threshold

-    Requesting required financial                      Depositor
     information (including any
     required accountants' consent to
     the use thereof) or effecting
     incorporation by reference

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

   REG AB ITEM 1115(B): DERIVATIVE
 COUNTERPARTY FINANCIAL INFORMATION

-    Determining current maximum                        Depositor
     probable exposure

-    Determining current significance                   Depositor
     percentage

-    Requesting required financial                      Depositor
     information (including any
     required accountants' consent to
     the use thereof) or effecting
     incorporation by reference

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

 REG AB ITEM 1117: LEGAL PROCEEDINGS

Any legal proceeding pending against
the following entities or their
respective property, that is material
to Certificateholders, including any
proceeding known to be contemplated
by
</TABLE>

                                       1

<PAGE>

                         ADDITIONAL FORM 10-K DISCLOSURE

<TABLE>
<CAPTION>
          ITEM ON FORM 10-K                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
governmental authorities:

-    Issuing Entity (Trust Fund)          Trustee, Master Servicer, Securities
                                               Administrator and Depositor

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

-    Depositor                                          Depositor

-    Trustee                                             Trustee

-    Securities Administrator                    Securities Administrator

-    Master Servicer                                 Master Servicer

-    Custodian                                          Custodian

-    1110(b) Originator                                 Depositor

-    Any 1108(a)(2) Servicer (other                      Servicer
     than the Master Servicer or
     Securities Administrator)

-    Any other party contemplated by                    Depositor
     1100(d)(1)

 REG AB ITEM 1119: AFFILIATIONS AND
            RELATIONSHIPS

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

-    Master Servicer                                 Master Servicer

-    Securities Administrator                    Securities Administrator

-    Trustee                                             Trustee

-    Any other 1108(a)(3) servicer                       Servicer

-    Any 1110 Originator                            Depositor/Sponsor

-    Any 1112(b) Significant Obligor                Depositor/Sponsor

-    Any 1114 Credit Enhancement                    Depositor/Sponsor
     Provider

-    Any 1115 Derivate Counterparty                 Depositor/Sponsor
     Provider

-    Any other 1101(d)(1) material                  Depositor/Sponsor
     party

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

-    Master Servicer                                 Master Servicer

-    Securities Administrator                    Securities Administrator

-    Trustee                                            Depositor

-    Any other 1108(a)(3) servicer                       Servicer

-    Any 1110 Originator                            Depositor/Sponsor

-    Any 1112(b) Significant Obligor                Depositor/Sponsor
</TABLE>

                                       2

<PAGE>

                         ADDITIONAL FORM 10-K DISCLOSURE

<TABLE>
<CAPTION>
          ITEM ON FORM 10-K                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
-    Any 1114 Credit Enhancement                    Depositor/Sponsor
     Provider

-    Any 1115 Derivate Counterparty                 Depositor/Sponsor
     Provider

-    Any other 1101(d)(1) material                  Depositor/Sponsor
     party

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

-    Master Servicer                                 Master Servicer

-    Securities Administrator                    Securities Administrator

-    Trustee                                            Depositor

-    Any other 1108(a)(3) servicer                       Servicer

-    Any 1110 Originator                            Depositor/Sponsor

-    Any 1112(b) Significant Obligor                Depositor/Sponsor

-    Any 1114 Credit Enhancement                    Depositor/Sponsor
     Provider

-    Any 1115 Derivate Counterparty                 Depositor/Sponsor
     Provider

-    Any other 1101(d)(1) material                  Depositor/Sponsor
     party
</TABLE>

                                       3
<PAGE>

                                   EXHIBIT Q-3

                         FORM 8-K DISCLOSURE INFORMATION

<TABLE>
<CAPTION>
           ITEM ON FORM 8-K                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
   ITEM 1.01- ENTRY INTO A MATERIAL                    All parties
         DEFINITIVE AGREEMENT

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

Examples: servicing agreement,
custodial agreement.

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

ITEM 1.02- TERMINATION OF A MATERIAL                   All parties
         DEFINITIVE AGREEMENT

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

Examples: servicing agreement,
custodial agreement.

ITEM 1.03- BANKRUPTCY OR RECEIVERSHIP                   Depositor

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

-    Sponsor (Seller)                          Depositor/Sponsor (Seller)

-    Depositor                                          Depositor

-    Master Servicer                                 Master Servicer

-    Affiliated Servicer                                Servicer

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

-    Other material servicers                           Servicer

-    Trustee                                             Trustee

-    Securities Administrator                   Securities Administrator

-    Significant Obligor                                Depositor

-    Credit Enhancer (10% or more)                      Depositor

-    Derivative Counterparty                            Depositor
</TABLE>

                                      Q-3-1

<PAGE>

                         FORM 8-K DISCLOSURE INFORMATION

<TABLE>
<CAPTION>
           ITEM ON FORM 8-K                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
-    Custodian                                          Custodian

  ITEM 2.04- TRIGGERING EVENTS THAT                     Depositor
   ACCELERATE OR INCREASE A DIRECT                   Master Servicer
FINANCIAL OBLIGATION OR AN OBLIGATION           Securities Administrator
      UNDER AN OFF-BALANCE SHEET
             ARRANGEMENT

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

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

 ITEM 3.03- MATERIAL MODIFICATION TO            Securities Administrator
      RIGHTS OF SECURITY HOLDERS                         Trustee
                                                        Depositor

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

ITEM 5.03- AMENDMENTS OF ARTICLES OF                    Depositor
  INCORPORATION OR BYLAWS; CHANGE OF
             FISCAL YEAR

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

   ITEM 6.01- ABS INFORMATIONAL AND                     Depositor
   COMPUTATIONAL MATERIAL Depositor

   ITEM 6.02- CHANGE OF SERVICER OR            Master Servicer/Securities
       SECURITIES ADMINISTRATOR                 Administrator/Depositor/
                                                    Servicer/Trustee

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

Reg AB disclosure about any new            Servicer/Master Servicer/Depositor
servicer or master servicer is also
required.

Reg AB disclosure about any new                          Trustee
Trustee is also required.

     ITEM 6.03- CHANGE IN CREDIT           Depositor/Securities Administrator
   ENHANCEMENT OR EXTERNAL SUPPORT

Covers termination of any enhancement
in manner other than by its terms,
the addition of an enhancement, or a
material change in the
</TABLE>

                                      Q-3-2

<PAGE>

                         FORM 8-K DISCLOSURE INFORMATION

<TABLE>
<CAPTION>
           ITEM ON FORM 8-K                         PARTY RESPONSIBLE
-------------------------------------   ----------------------------------------
<S>                                     <C>
enhancement provided. Applies to
external credit enhancements as well
as derivatives.

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

ITEM 6.04- FAILURE TO MAKE A REQUIRED           Securities Administrator
             DISTRIBUTION                                Trustee

  ITEM 6.05- SECURITIES ACT UPDATING                    Depositor
              DISCLOSURE

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

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

     ITEM 7.01- REG FD DISCLOSURE                      All parties

       ITEM 8.01- OTHER EVENTS                          Depositor

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

 ITEM 9.01- FINANCIAL STATEMENTS AND              Responsible party for
               EXHIBITS                    reporting/disclosing the financial
                                                  statement or exhibit
</TABLE>

                                      Q-3-3exv4w1

 

Exhibit 4.1

NEITHER THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE HAVE BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY. NOTWITHSTANDING THE FOREGOING, THIS NOTE AND THE SECURITIES ISSUABLE
UPON CONVERSION OF THIS NOTE MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED
BY SUCH SECURITIES.

	 	 	 
	No. A-[___]

	 	$[                    ]
	Date: June 8, 2007
	 	 

ACE*COMM CORPORATION

SERIES A SENIOR SECURED CONVERTIBLE NOTE DUE

June 8, 2010

     THIS NOTE is one of a series of duly authorized and issued senior secured promissory notes of
ACE*COMM CORPORATION, a Maryland corporation (the “Company”), designated as its Series A Senior
Secured Convertible Notes due June 8, 2010, in the aggregate principal amount of $4,200,000
(collectively, the “Notes”).

     FOR VALUE RECEIVED, the Company promises to pay to the order of [Holder] or its registered
assigns (the “Holder”), the principal sum of [                    ] Dollars $(                    ), on June 8, 2010
(the “Maturity Date”), or such earlier date as the Notes are required or permitted to be repaid as
provided hereunder, and to pay interest to the Holder on the then outstanding principal amount of
this Note in accordance with the provisions hereof. In addition, the Company shall pay to the
order of the Holder interest on any principal or interest payable hereunder that is not paid in
full when due, whether at the time of any stated interest payment date or maturity or by
prepayment, acceleration or declaration or otherwise, for the period from and including the due
date of such payment to but excluding the date the same is paid in full, at a rate per annum equal
to the Prime Rate as of such due date plus 7% (but in no event in excess of the maximum rate
permitted under applicable law) (the “Default Rate”).

     Interest payable under this Note shall be computed on the basis of a year of 360 days and
actual days elapsed (including the first day but excluding the last day) occurring in the period
for which interest is payable.

 

 

     Payments of principal and interest shall be made in lawful money of the United States of
America to the Holder at its address as provided in Section 13 or by wire transfer to such
account specified from time to time by the Holder hereof for such purpose as provided in
Section 13.

     The Holder is entitled to the benefits of the Security Agreements and the Guaranty.

     1. Definitions. In addition to the terms defined elsewhere in this Note, (a)
capitalized terms that are not otherwise defined herein have the meanings given to such terms in
the Securities Purchase Agreement, dated as of June 4, 2007, among the Company and the Purchasers
identified therein (the “Purchase Agreement”), and (b) the following terms have the meanings
indicated:

     “Account(s)” means all accounts receivable of the Company and its Subsidiaries on a
consolidated basis.

     “Account Debtor” means any Person who is or may become obligated under or on account of
an Account.

     “Available Cash” means cash of the Company in deposit accounts maintained by the
Company that may be withdrawn by the Company at any time without restriction (other than any
restrictions imposed by the Security Agreements or a Control Agreement, if applicable).

     “Conversion Date” means the date a Conversion Notice is delivered to the Company (as
determined in accordance with the notice provisions hereof) together with a Conversion
Schedule pursuant to Section 6(a).

     “Conversion Notice” means a written notice in the form attached hereto as Schedule
1.

     “Conversion Price” .means $0.801, subject to adjustment from time to time
pursuant to Section 11.

     “Current Market Price” means, on any calculation date, the arithmetic average of the
VWAPs for each of the 20 consecutive Trading Days immediately preceding the applicable date.

     “Daily Trading Volume” means on any given Trading Day the total volume of Common Stock
traded on an Eligible Market as reported by Bloomberg L.P.

     “Eligible Account(s)” means an Account arising in the ordinary course of the Company’s
and the Subsidiaries’ business from the sale of goods or rendition of services;
provided, however, that no Account shall be an Eligible Account if: (i) it
arises out of a sale made by the Company or a Subsidiary to a Subsidiary or an Affiliate of
the Company or to a Person controlled by an Affiliate of the Company; or (ii) it is due or
unpaid more than (A) if the Account Debtor is a U.S. Agency, 120 days after the original
invoice date,

2

 

(B) if the Account Debtor is a U.S. Customer but not a U.S. Agency, 90 days after the
original invoice date or (C) if the Account Debtor is not a U.S. Customer, 120 days after
the original invoice date; or (iii) fifty percent (50%) or more of the Accounts from the
Account Debtor are not deemed Eligible Accounts hereunder; or (iv) the Account Debtor is
also the Company’s or a Subsidiary’s creditor (other than a creditor solely as a result of
having made progress payments to the Company or a Subsidiary) or supplier, or has disputed
liability with respect to such Account, or has made any claim with respect to any other
Account due from such Account Debtor to the Company or a Subsidiary, or the Account
otherwise is or may become subject to any right of setoff by the Account Debtor, to the
extent of any offset, dispute or claim; or (v) the Account Debtor has commenced a voluntary
case under the federal bankruptcy laws, as now constituted or hereafter amended, or made an
assignment for the benefit of creditors, or a decree or order for relief has been entered by
a court having jurisdiction in the premises in respect of the Account Debtor in an
involuntary case under the federal bankruptcy laws, as now constituted or hereafter amended,
or any other petition or other application for relief under the federal bankruptcy laws has
been filed against the Account Debtor, or if the Account Debtor has failed, suspended
business, ceased to be solvent, or consented to or suffered a receiver, trustee, liquidator
or custodian to be appointed for it or for all or a significant portion of its assets or
affairs; or (vi) it arises from a sale to the Account Debtor on a bill-and-hold, guaranteed
sale, sale-or-return, sale-on-approval, consignment or any other repurchase or return basis;
or (vii) Agent believes, in its reasonable judgment, that collection of such Account is
insecure or that payment thereof is doubtful or will be delayed beyond the time periods set
forth in clause (ii) above by reason of the Account Debtor’s financial condition; or (viii)
the Account Debtor is a U.S. Agency, and the Company or the applicable Subsidiary fails to
assign its right to payment of such Account to Agent, pursuant to Section 3(i) hereof, so as
to comply with the Assignment of Claims Act of 1940, as amended (31 U.S.C. Sub-Section 203
et seq.); or (ix) the Account Debtor is located in either the State of New
Jersey or the State of Minnesota, unless the Company or the applicable Subsidiary has filed
a Notice of Business Activities Report with the appropriate officials in those states for
the then current year; or (x) the Account is subject to a Lien other than the Liens of the
Transaction Documents; or (xi) the goods giving rise to such Account have not been delivered
to and accepted by the Account Debtor or the Account otherwise does not represent a final
sale; or (xii) the total unpaid Accounts of the Account Debtor exceed a credit limit
determined by Agent, in its reasonable discretion, to the extent such Account exceeds such
limit; or (xiii) the Account is evidenced by chattel paper or an instrument of any kind, or
has been reduced to judgment; or (xiv) the Company or the applicable Subsidiary has made any
agreement with the Account Debtor for any deduction therefrom, except for discounts or
allowances which are made in the ordinary course of business for prompt payment and which
discounts or allowances are reflected in the calculation of the face value of each invoice
related to such Account to the extent of such discount; or (xv) the Company or the
applicable Subsidiary has made an agreement with the Account Debtor to extend the time of
payment thereof and such extension exceeds the limitations set forth in (ii) above.

     “Eligible Inventory” means Inventory of the Company (other than packaging materials and
supplies) which Agent, in the exercise of its reasonable credit judgment, deems to be
Eligible Inventory (less Inventory Reserves). Without limiting the generality

3

 

of the foregoing, no Inventory shall be Eligible Inventory unless, in Agent’s
reasonable opinion, it (i) is raw materials, work-in-process (including labor) or finished
goods; (ii) is in good, new and saleable condition, (iii) is not obsolete or unmerchantable,
(iv) meets all standards imposed by any governmental agency or authority, (v) is at all
times subject to Agent’s duly perfected, first priority security interest and no other Lien
and (vi) is not in transit.

     “Equity Conditions” means, with respect to Common Stock issuable pursuant to the
Transaction Documents (including, without limitation, upon conversion or exercise in full of
the Notes and Warrants), that each of the following conditions is satisfied: (i) the number
of authorized but unissued and otherwise unreserved shares of Common Stock is sufficient for
such issuance; (ii) such shares of Common Stock are registered for resale by the Holder and
may be sold by the Holder pursuant to an effective Registration Statement covering the
Underlying Shares or all such shares may be sold without volume restrictions pursuant to
Rule 144 under the Securities Act or are eligible for sale under Rule 144(k) under the
Securities Act; (iii) the Common Stock is listed or quoted (and is not suspended from
trading) on an Eligible Market and such shares of Common Stock are approved for listing upon
issuance; (iv) such issuance would be permitted in full without violating Section
6(c) hereof or the rules or regulations of any Trading Market; (v) no Event of Default
nor any event or circumstance that with the passage of time and without being cured would
constitute an Event of Default has occurred and not been cured or waived in writing by the
Holder; (vi) neither the Company nor any Subsidiary is in default or has breached any
material obligation under any Transaction Document which has not been cured or waived in
writing by the Holder; (vii) no public announcement of a pending or proposed Change of
Control transaction has occurred that has not been consummated or consented to by the
Majority Holders; and (viii) the Company has confirmed to Holder that Holder is not then in
possession of what the Company believes could be deemed material, non-public information.

     “Event Equity Value” means the average of the Closing Prices for the five Trading Days
preceding the date of delivery of the notice requiring payment of the Event Equity Value,
provided that if the Company does not make such required payment (together with any
other payments, expenses and liquidated damages then due and payable under the Transaction
Documents) when due or, in the event the Company disputes in good faith the occurrence of
the event pursuant to which such notice relates, does not instead deposit such required
payment (together with such other payments, expenses and liquidated damages then due) in
escrow with an independent third party escrow agent within five Trading Days of the date
such required payment is due, then the Event Equity Value shall be 125% of the greater of
(a) the average of the Closing Prices for the five Trading Days preceding the date of
delivery of the notice requiring payment of the Event Equity Value and (b) the average of
the Closing Prices for the five Trading Days preceding the date on which such required
payment (together with such other payments, expenses and liquidated damages) is paid in
full.

     “Factor” means 1.25, increased by 0.25 for each Interest Rate Adjustment Event
occurring after the original issue of this Note. The Factor shall be reset to 1.25 (subject
to adjustment again) if the Interest Rate is increased pursuant to Section 2(a)
herein.

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     “Interest Rate” has the meaning set forth in Section 2(a) herein.

     “Interest Rate Adjustment Event” means any Interest Payment Date on which the Current
Market Price exceeds the product of the Conversion Price and the Factor.

     “Inventory” means all of the Company’s inventory, whether now owned or hereafter
acquired by the Company, including, but not limited to, all goods intended for sale or lease
by the Company, or for display or demonstration; all work in process (including labor); all
raw materials and other materials and supplies of every nature and description used or which
might be used in connection with the manufacture, printing, packing, shipping, advertising,
selling, leasing or Borrower’s business; and all documents evidencing and general
intangibles relating to any of the foregoing whether now owned or hereafter acquired by the
Company.

     “Inventory Reserve” means at any time an amount equal to the aggregate sum of progress
payments which have been made to the Company by any U.S. Agency, for the purpose of
acquiring Inventory by the Company or a Subsidiary in connection with the performance of its
contractual obligations with such U.S. Agency.

     “Major Asset Sale” means any sale, disposition or other transfer of any assets or
property of the Company, in a single transaction or series of related transactions, with a
value equal to or greater than $100,000. For the avoidance of doubt, sales of products and
services to customers in the ordinary course of the Company’s business, consistent with past
practice, shall not constitute a Major Asset Sale.

     “Majority Holders” means Holders of a majority of the outstanding principal amount of
all Notes.

     “Original Issue Date” means June 8, 2007, regardless of the number of transfers of any
particular Note and regardless of the number of New Notes that may be issued in respect of
such transfers.

     “Prime Rate” means the rate of interest quoted in The Wall Street Journal, Money Rates
Section as the Prime Rate, as in effect from time to time.

     “Triggering Event” means any of the following events: (a) the Common Stock is not
listed or quoted, or is suspended from trading, on an Eligible Market for a period of ten
(10) or more Trading Days (which need not be consecutive Trading Days) in any 180 Trading
Day period; (b) the exercise or conversion rights of the Holders pursuant to any Transaction
Document are suspended for any reason other than pursuant to Section 6(c) of the
Notes and Section 11 of the Warrants; (c) the Company fails to have available a
sufficient number of authorized but unissued and otherwise unreserved shares of Common Stock
available to issue Underlying Shares upon any exercise of the Notes and Warrants or fails to
have full authority, including under all laws, rules and regulations of any Trading Market,
to issue such Underlying Shares (other than stockholder approval); (d) at any time after the
Closing Date, any Common Stock issuable pursuant to the Transaction Documents is not listed
on an Eligible Market; (e) after the effectiveness of the Registration Statement, the Equity
Conditions fail to be satisfied for ten (10) or more

5

 

Trading Days (which need not be consecutive Trading Days) in any 180 Trading Day
period; (f) the Company or any Subsidiary fails to make any cash payment required under any
Transaction Document to which it is a party and such failure is not cured within five days
after notice of such default is first given to the Company by a Holder; (g) the Company or
any Subsidiary defaults in the timely performance of any other material obligation under any
Transaction Document to which it is a party and such default continues uncured for a period
of fifteen days after the date on which notice of such default is first given to the Company
by a Holder (it being understood that no prior notice need be given in the case of a default
that cannot reasonably be cured within fifteen days); (h) the Company or any Subsidiary (i)
breaches any of its representations and warranties under any Transaction Document to which
it is a party that is qualified by materiality, (ii) breaches in any material respect any of
its representations and warranties under any Transaction Document to which it is a party
that is not qualified by materiality or (iii) breaches in any material respect any of its
obligations under any Transaction Document to which it is a party, which breach of
obligation has not been cured or waived in writing by the Holder; or (i) any change, event
or circumstance that has had or could reasonably be expected to result in a Material Adverse
Effect.

     “U.S. Agency” means the United State of America or any department, agency or
instrumentality thereof.

     “U.S. Customer” means an Account Debtor that is organized under the laws of a United
States state and the principal place of business of which and location from which the
Accounts thereof were generated, is located in the United States.

     2. Principal and Interest.

     (a) The Company shall pay interest to the Holder on the then outstanding principal amount of
this Note at a rate of 11.25% per annum, as the same may be adjusted from time to time pursuant to
the terms hereof (the “Interest Rate”). The Interest Rate shall be reduced from time to time by
100 basis points (1.0%) for each Interest Rate Adjustment Event (if any), as of the date of that
Interest Rate Adjustment Event, but in no event below zero, provided that the Equity Conditions are
satisfied on, and at all times during the sixty day period preceding, the applicable Interest
Payment Date. The Interest Rate reductions shall be reversed if the Current Market Price at any
time after a reduction in the Interest Rate is less than the product of the Conversion Price
multiplied by the Factor. Interest shall be payable monthly in arrears (each, a “Monthly Interest
Payment”) in cash on the last day of each month, except if such date is not a Trading Day in which
case such interest shall be payable on the next succeeding Trading Day (each, an “Interest Payment
Date”); provided, that the Company may elect to pay any Monthly Interest Payment by issuing
shares of Common Stock if (i) the Company would be permitted on such Interest Payment Date to pay a
Monthly Installment by issuing shares of Common Stock without exceeding the Monthly Installment
Volume Limitation and (ii) the Company confirms to the Holder in writing concurrently with such
issuance that the Company does not believe that the Holder, or any employee, officer, director,
agent or representative of the Holder, has been provided any material non-public information
relating to the Company by the Company or any Subsidiary, or any of their respective employees,
officers, directors, agents or representatives (provided, further, that the Company
shall notify the Holder in writing within three (3) Trading

6

 

Days prior to such Interest Payment Date if the Company is not able to make such confirmation,
and in such event the Holder shall have the option, exercisable by written notice to the Company on
or prior to such Interest Payment Date, to either (A) defer the due date of such Monthly Interest
Payment and any unpaid previously deferred Monthly Interest Payments (except to the extent elected
to be paid in Common Stock pursuant to clause (B) below) to the next succeeding Interest Payment
Date (each such deferred Monthly Interest Payment, a “Deferred Monthly Interest Payment”) or (B)
receive such Monthly Interest Payment and/or any prior unpaid Deferred Monthly Interest Payments
(as indicated in such notice) by issuance of shares of Common Stock; if the Holder does not deliver
such written notice, then such Monthly Interest Payment shall be a Deferred Monthly Interest
Payment unless the Company pays it in cash when due). On each Interest Payment Date, all unpaid
Deferred Monthly Interest Payments shall be due and payable unless deferred to the next succeeding
Interest Payment Date in accordance with the preceding sentence. The first Interest Payment Date
shall be June 30, 2007. Subject to the limitations set forth in Section 6(c) below, the
Holder may, upon written notice to the Company not less than 10 Trading Days prior to an Interest
Payment Date, require the Company to pay such interest payable on such Interest Payment Date in
shares of Common Stock in accordance with Section 2(d) below. During the pendancy of any
Event of Default , the Interest Rate shall equal the Default Rate.

     (b) The Company shall pay the principal balance of this Note to the Holder in eighteen (18)
equal monthly installments (each, a “Monthly Installment”) commencing on December 30, 2008 (or such
later date as the Holder may, in its sole discretion, determine by written notice to the Company)
and continuing each month thereafter on the last day of each month, except if such date is not a
Trading Day in which case such Monthly Installment shall be payable on the next succeeding Trading
Day (each, a “Principal Payment Date”), until the outstanding principal balance of this Note has
been paid in full, provided, however, that, in the event that the Company is not
permitted pursuant to Section 2(c) below to pay such Monthly Installment by issuing shares of
Common Stock because of the Monthly Installment Volume Limitation (but would otherwise be entitled
pursuant to Section 2(c) below to do so), the Company may elect, by written notice to the Holder (a
“Deferral Notice”), to pay by issuance of Common Stock the portion of such Monthly Installment that
may be paid without exceeding the Monthly Installment Volume Limitation and, in respect of up to
four (4) Monthly Installments in any calendar year, to defer payment of the balance of such Monthly
Installment until the next Principal Payment Date (a “Deferred Monthly Installment”);
provided, further, that (i) if the Holder elects by written notice to the Company
within five (5) Business Days after receipt of a Deferral Notice to accept payment of all or part
of such Monthly Installment by issuance of Common Stock notwithstanding the Monthly Installment
Volume Limitation, the Company shall pay all or such indicated portion of such Monthly Installment
by issuance of Common Stock, and (ii) until any outstanding Deferred Monthly Installments have been
paid in full, interest shall continue to accrue on such Deferred Monthly Installment at the
Interest Rate (or Default Rate, if applicable), and any payment (in cash or Common Stock) on this
Note shall be applied first to the repayment of the interest portion of all unpaid Deferred Monthly
Installments, in the order such Deferred Monthly Installments were deferred, and then to the
repayment of the principal portion of all unpaid Deferred Monthly Installments, in the order such
Deferred Monthly Installments were deferred, before application to other amounts owing under this
Note. If the Holder elects to convert any portion of the principal amount of this Note, that
amount shall be applied as a credit to the next succeeding Monthly Installment or Monthly Installments, as
applicable or such other Monthly Installment(s) as specified by the Holder.

7

 

     (c) Unless the Holder otherwise consents in writing, and subject to the limitations set forth
in Section 6(c) below, the Company shall pay each Monthly Installment by issuing shares of
Common Stock if (i) all of the Equity Conditions are satisfied on and at all times during the ten
(10) days preceding the applicable Principal Payment Date (or the Holder otherwise waives in
writing the Equity Conditions), and (ii) the arithmetic average of the VWAP for each of the 20
consecutive Trading Days prior to such Principal Payment Date is greater than 110% of the
Conversion Price then in effect; provided, however, that, unless and to the extent
waived by the Holder, the aggregate number of shares of Common Stock issuable by the Company to the
Holder as payment in respect of such Monthly Installment, together with any shares of Common Stock
then issuable as payment in respect of a Monthly Interest Payment (not including any unpaid
Deferred Monthly Interest Payment), shall not exceed 100% of the arithmetic average of the Daily
Trading Volume for each of the 20 consecutive Trading Days preceding such Principal Payment Date
(the “Monthly Installment Volume Limitation”). Any Monthly Installment or any portion thereof that
is not required or permitted to be paid in Common Stock pursuant to this Section 2(c) shall be paid
by the Company in cash on the applicable Principal Payment Date. In the event that the Company
pays a Monthly Installment (or any portion thereof) in cash, then the amount payable to the Holder
shall equal 102% of the Monthly Installment. Any payment of a Monthly Installment plus accrued
interest in whole or in part in shares of Common Stock shall effectively be treated as a partial
conversion of that portion of the principal amount of this Note or accrued interest, with a credit
applied against such Monthly Installment or accrued interest.

     (d) In the event that the Company pays a Monthly Installment (or any portion thereof) in
shares of Common Stock or the Holder elects to have interest paid in shares of Common Stock, the
number of shares of Common Stock to be issued to the Holder as payment for such interest or Monthly
Installment (or any portion thereof) shall be (i) with respect to interest, determined by dividing
the aggregate amount of interest payable to the Holder by the Market Price (as defined below) as of
the applicable Interest Payment Date, and rounding up to the nearest whole share, (ii) with respect
to a Monthly Installment, determined by dividing the Monthly Installment (or any portion thereof)
by the Conversion Price (as adjusted in accordance herewith) and rounding up to the nearest whole
share, and (iii) paid to the Holder in accordance with Section 2(e) below. The term
“Market Price” shall mean 93% of the arithmetic average of the VWAP for each of the 20 consecutive
Trading Days prior to the applicable Principal Payment Date (not including such date).

     (e) In the event that any interest or a Monthly Installment (or any portion thereof) is paid
in Common Stock, the Company shall on such Interest Payment Date or Principal Payment Date, as
applicable, (i) issue (or cause to be issued) and deliver (or cause to be delivered) to the Holder
a certificate, bearing the restrictive legends set forth herein, registered in the name of the
Holder, for the number of shares of Common Stock to which the Holder shall be entitled, or (ii) at
all times after (x) the Company is eligible to deliver its Common Stock electronically through The
Depository Trust Company (the “DTC”) in connection with a resale by the Holder of such shares
pursuant to the Registration Statement and (y) the Holder has notified the Company that this clause
(ii) shall apply, credit the number of shares of Common Stock to which the Holder
shall be entitled to the Holder’s or its designee’s balance account with the DTC through its
Deposit Withdrawal Agent Commission System.

8

 

     (f) Notwithstanding the foregoing, the Holder may elect to defer (i) any Monthly Installment
prior to its Principal Payment Date and/or (ii) any interest payment prior to its Interest Payment
Date. If the Holder elects to defer a Monthly Installment and/or an interest payment, the Company
shall pay such deferred Monthly Installment and/or interest payment (together with all other
amounts that may be due and payable by the Company) on the Maturity Date or such earlier date as
the Holder may otherwise elect in writing (but not prior to the Principal Payment Date or, if
applicable, the Interest Payment Date, when it was otherwise due). If the Holder elects to defer a
Monthly Installment and/or an interest payment, no interest shall accrue on any such deferred
amounts.

     (g) This Note may not be prepaid in whole or in part absent the consent of the Majority
Holders.

     3. Ranking and Covenants.

     (a) Except as permitted in Section 4.10(a) of the Purchase Agreement, (i) no Indebtedness of
the Company is senior to or on a parity with this Note in right of payment, whether with respect to
interest, damages or upon liquidation or dissolution or otherwise, and (ii) the Company will not,
and will not permit any Subsidiary to, directly or indirectly, enter into, create, incur, assume or
suffer to exist any Indebtedness of any kind, on or with respect to any of its property or assets
now owned or hereafter acquired or any interest therein or any income or profits therefrom.

     (b) So long as any Notes are outstanding, neither the Company nor any Subsidiary shall,
directly or indirectly, (i) redeem, purchase or otherwise acquire any capital stock or set aside
any monies for such a redemption, purchase or other acquisition of its capital stock (other than
pursuant to the Company’s stock option plan or similar employee incentive plan as described in
Section 3.1(g) of the Purchase Agreement) or (ii) issue any Floating Price Security (as defined in
Section 11(d)(ii)).

     (c) If, at any time while any Note is outstanding, the Company or any Subsidiary (i) issues or
incurs any Indebtedness for borrowed money, including, without limitation, Indebtedness evidenced
by notes, bonds, debentures or other similar instruments, but excluding Indebtedness permitted in
Section 4.10(a) of the Purchase Agreement, (ii) effects any Subsequent Placement (other than the
issuance of Common Stock pursuant to the definition of Excluded Stock), or (iii) without prejudice
to the rights of Holder pursuant to Section 4.13 of the Purchase Agreement or in respect of a
Change of Control as set forth herein, effects any Major Asset Sale, the Company shall notify the
Holder of such event and offer to repurchase an amount of this Note from the Holder having an
aggregate price (as determined below) equal to the lesser of (A) the aggregate amount of such
Indebtedness or Subsequent Placement or proceeds of such Major Asset Sale, and (B) the aggregate
amount required to repurchase this entire Note pursuant to this Section 3(c). All Notes
repurchased under this Section 3(c) shall be repurchased at a price equal to the
outstanding principal amount of the Notes purchased, plus all accrued but unpaid interest
thereon through the date of payment, and the closing of such repurchase shall occur promptly
upon notice from the Holder of an exercise of rights hereunder.

9

 

     (d) The Company covenants that it will at all times reserve and keep available out of its
authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling
it to issue Underlying Shares as required hereunder, the number of Underlying Shares which are then
issuable and deliverable upon the conversion of (and otherwise in respect of) each Note (taking
into account the adjustments set forth in Section 11 and subject to the limitations set
forth in Section 6(c)), free from preemptive rights or any other contingent purchase rights
of Persons other than the Holder. The Company covenants that all Underlying Shares so issuable and
deliverable shall, upon issuance in accordance with the terms hereof, be duly and validly
authorized and issued and fully paid and nonassessable.

     (e) The Company shall at all times when any Note is outstanding, maintain, as of the last day
of each fiscal quarter, a Tangible Net Worth and an amount of Cash, not less than eighty percent
(80%) of the projected levels of Tangible Net Worth and Cash, respectively, for such fiscal quarter
as set forth on Schedule III. For the purposes hereof, “Tangible Net Worth” shall mean the sum of
the following, determined in accordance with GAAP: capital, capital surplus and retained earning,
less the sum of the value on the Company’s books of all intangible assets including but not limited
to: goodwill, patents, franchises, trademarks, copyrights and the write-up in the book value of any
assets resulting therefrom after acquisition. For the purposes hereof, “Cash” shall mean all cash
and cash equivalents, as shown on the consolidated balance sheet of the Company prepared in
accordance with GAAP and included in the then most recent SEC Report.

     (f) The Company shall at all times when any Note is outstanding, maintain, for each fiscal
quarter, ending after the date hereof, gross revenues, determined in accordance with GAAP, of not
less than $3,000,000 for such fiscal quarter.

     (g) The Company shall at all times when any Note is outstanding, maintain, as of the last day
of each fiscal quarter, EBITDA of not less than the amount of EBITDA required for such fiscal
quarter as set forth on Schedule III.

     (h) The Company shall at all times when any Note is outstanding cause the aggregate amount of
Eligible Accounts, Eligible Inventory and Available Cash to have an aggregate value equal to not
less than $4,200,000.

     (i) If any of the Accounts (i) exceeding $100,000 or (ii) if the Holder requests such notice
or action, exceeding $25,000, arises out of a contract with a U.S. Agency, the Company shall
promptly notify Agent thereof in writing and shall execute any instruments, send any notices and
take any other action required, or requested by Agent, to comply with the provisions of the Federal
Assignment of Claims Act.

     (j) The Company shall not, at all times when any Note is outstanding:

     (i) Accelerate any payments which are not currently due under any maintenance, license
or any other agreement or contract with any customer;

10

 

     (ii) Enter into any maintenance agreement or maintenance contract with a term of
greater than one (1) year, other than a maintenance agreement or maintenance contract
providing for maintenance payments not less frequently than annually and pursuant to which
such maintenance payments are pro rata over the term of the contract;

     (iii) Renew any maintenance, license or other agreement or contract that is not within
three (3) months, for domestic contracts, and within four (4) months, for international
contracts, of the expiration date for the license or services contained in such agreement;

     (iv) Renew or reinstate any maintenance, license or other agreement that has expired
for an amount less than the annual amount of maintenance or other payable during the last
period such agreement was in effect for items to be covered under the new maintenance
contract.

     4. Registration of Notes. The Company shall register the Notes upon records to be
maintained by the Company for that purpose (the “Note Register”) in the name of each record holder
thereof from time to time. The Company may deem and treat the registered Holder of this Note as
the absolute owner hereof for the purpose of any conversion hereof or any payment of interest or
principal hereon, and for all other purposes, absent actual notice to the contrary.

     5. Registration of Transfers and Exchanges. This Note and all rights hereunder are
transferable in whole or in part upon the books of the Company by the Holder hereof; provided,
however, that the transferee shall agree in writing to be bound by the terms and subject to the
conditions of this Note and the Purchase Agreement. The Company shall register the transfer of any
portion of this Note in the Note Register upon surrender of this Note to the Company at its address
for notice set forth herein. Upon any such registration or transfer, a new Note, in substantially
the form of this Note (any such new Note, a “New Note”), evidencing the portion of this Note so
transferred shall be issued to the transferee and a New Note evidencing the remaining portion of
this Note not so transferred, if any, shall be issued to the transferring Holder. The acceptance
of the New Note by the transferee thereof shall be deemed the acceptance by such transferee of all
of the rights and obligations of a holder of a Note. This Note is exchangeable for an equal
aggregate principal amount of Notes of different authorized denominations, as requested by the
Holder surrendering the same. No service charge or other fee will be imposed in connection with
any such registration of transfer or exchange.

     6. Conversion.

     (a) At the Option of the Holder. All or any portion of this Note shall be convertible
into shares of Common Stock (subject to the limitations set forth in Section 6(c)), at the
option of the Holder, at any time and from time to time from and after the Original Issue Date.
The number of Underlying Shares issuable upon any conversion hereunder shall equal the outstanding
principal amount of this Note to be converted, plus the amount of any accrued but unpaid interest
on this Note through the Conversion Date, divided by the Conversion Price on the Conversion Date.
The Holder shall effect conversions under this Section 6(c) by delivering to the Company a
Conversion Notice together with a schedule in the form of Schedule 2 attached hereto (the
“Conversion Schedule”). If the Holder is converting less than all of the principal

11

 

amount of this Note, or if a conversion hereunder may not be effected in full due to the
application of Section 6(c), the Company shall honor such conversion to the extent
permissible hereunder and shall promptly deliver to the Holder a Conversion Schedule indicating the
principal amount (and accrued interest) which has not been converted.

     (b) At the Option of the Company. If at any time (i) the Market Price is 200%
greater than the Conversion Price then in effect for at least sixty-five (65) consecutive Trading
Days, and (ii) the Equity Conditions are satisfied for such sixty-five (65) consecutive Trading Day
period and through the Conversion Date, then the Company may elect to require the Holders to
convert a portion of the outstanding principal amount of this Note, up to its entirety, into Common
Stock by delivering an irrevocable written notice of such election to the Holders. The amount of
principal amount of this Note convertible as provided in the preceding sentence shall be limited to
the amount that is convertible into a number of shares of Common Stock which, together with all
other shares of Common Stock received upon conversion of all Notes in the 30-day period preceding
the applicable Conversion Date, does not exceed the arithmetic average of the Daily Trading Volume
for each of the 20 consecutive Trading Days preceding that Conversion Date. The tenth (10th)
Trading Day after the delivery of such notice will be the “Conversion Date” for such required
conversion. For purposes of example only, if the Conversion Price is $1.00, then the Market Price
would need to be greater than $3.00 during the relevant period for the condition set forth Section
6(b)(i) to be satisfied.

     (c) Certain Conversion Restrictions.

          (i) Subject to Section 6(c)(ii), the number of shares of Common Stock that may be
acquired by a Holder upon any conversion of Notes (or otherwise in respect hereof) shall be
limited to the extent necessary to insure that, following such conversion (or other
issuance), the total number of shares of Common Stock then beneficially owned by such Holder
and its Affiliates and any other Persons whose beneficial ownership of Common Stock would be
aggregated with such Holder’s for purposes of Section 13(d) of the Exchange Act, does not
exceed 4.999% of the total number of issued and outstanding shares of Common Stock
(including for such purpose the shares of Common Stock issuable upon such conversion), (the
“Threshold Percentage”). For such purposes, beneficial ownership shall be determined in
accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder.

          (ii) Notwithstanding the provisions of Section 6(c)(i), the Holder shall have the right
at any time and from time to time, to waive the provisions of this Section insofar as they
relate to the Threshold Percentage or to increase its Threshold Percentage (but not in
excess of 9.999% (or such lower percentage if Section 16 of the Exchange Act or the rules
promulgated thereunder (or any successor statute or rules) is changed to reduce the
beneficial ownership percentage threshold thereunder to a percentage less than 9.999%)) by
written instrument delivered to the Company, but (i) any such waiver or increase will not be
effective until the 61st day after such notice is delivered to the Company, and (ii) any
such waiver or increase or decrease will apply only to the Holder and not to any other
holder of Notes.

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     7. Mechanics of Conversion; Restrictive Legends.

     (a) Upon conversion of this Note, the Company shall promptly (but in no event later than three
Trading Days after the Conversion Date) issue or cause to be issued and cause to be delivered to or
upon the written order of the Holder and in such name or names as the Holder may designate a
certificate for the Underlying Shares issuable upon such conversion. The Holder, or any Person so
designated by the Holder to receive Underlying Shares, shall be deemed to have become holder of
record of such Underlying Shares as of the Conversion Date. The Company shall, upon request of the
Holder, use its reasonable best efforts to deliver the Underlying Shares hereunder electronically
through the DTC in connection with a resale by the Holder of such shares pursuant to the
Registration Statement.

     (b) The Holder shall not be required to deliver the original Note in order to effect a
conversion hereunder. Execution and delivery of the Conversion Notice shall have the same effect
as cancellation of the original Note and issuance of a New Note representing the remaining
outstanding principal amount; provided that the cancellation of the original Note shall not
be deemed effective until a certificate for such Underlying Shares is delivered to the Holder, or
the Holder or its designee receives a credit for such Underlying Shares to its balance account with
the DTC through its Deposit Withdrawal Agent Commission System. Upon surrender of this Note
following one or more partial conversions, the Company shall promptly deliver to the Holder a New
Note representing the remaining outstanding principal amount. The Holder shall deliver the
original Note to the Company within thirty (30) days after the conversion of the entire Note
hereunder, provided, that the Holder’s failure to so deliver the original Note shall not
affect the validity of such conversion or any of the Company’s obligations under this Note, and the
Company’s sold remedy for the Holder’s failure to deliver the original Note shall be to obtain an
affidavit of lost note from the Holder.

     (c) The Company’s obligations to issue and deliver Underlying Shares upon conversion of this
Note in accordance with the terms and subject to the conditions hereof are absolute and
unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver
or consent with respect to any provision hereof, the recovery of any judgment against any Person or
any action to enforce the same, or any set-off, counterclaim, recoupment, limitation or
termination, or any breach or alleged breach by the Holder or any other Person of any obligation to
the Company or any violation or alleged violation of law by the Holder or any other Person, and
irrespective of any other circumstance which might otherwise limit such obligation of the Company
to the Holder in connection with the issuance of such Underlying Shares (other than such
limitations contemplated by this Note).

     (d) If by the fifth Trading Day after a Conversion Date the Company fails to deliver or cause
to be delivered to the Holder such Underlying Shares in such amounts and in the manner required
pursuant to Section 7(a), then the Holder will have the right to rescind such conversion.

     (e) If by the third Trading Day after a Conversion Date the Company fails to deliver or cause
to be delivered to the Holder such Underlying Shares in such amounts and in the manner required
pursuant to Section 7(a), and if after such third Trading Day the Holder purchases (in an
open market transaction or otherwise) shares of Common Stock to deliver in

13

 

satisfaction of a sale by the Holder of the Underlying Shares which the Holder anticipated
receiving upon such conversion (a “Buy-In”), then the Company shall either (i) pay cash to the
Holder (in addition to any other remedies available to or elected by the Holder) in an amount equal
to the Holder’s total purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver
such certificate (and to issue such Common Stock) shall terminate, or (ii) promptly honor its
obligation to deliver to the Holder a certificate or certificates representing such Common Stock
and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the
product of (A) such number of shares of Common Stock, times (B) the Closing Price on the date of
the event giving rise to the Company’s obligation to deliver such certificate.

     (f) Each certificate for Underlying Shares shall bear a restrictive legend to the extent and
as provided in the Purchase Agreement and any certificate issued at any time in exchange or
substitution for any certificate bearing such legend, shall also bear such legend, unless, in the
opinion of counsel for the holder thereof (which opinion shall be reasonably satisfactory to
counsel for the Company), the securities represented thereby are not, at such time, required by law
to bear such legend.

     8. Redemption.

     (a) At any time following the 90th Trading Day following the Original Issue Date, the Company
shall have the right to repurchase (an “Optional Redemption”) all (but not some only) of the Notes
then outstanding at a price equal to 125% of principal and all accrued but unpaid interest due
under such Notes (the “Optional Redemption Price”), in cash, provided, that if the
aggregate value of the Underlying Shares for which all of the Notes may then be converted (based on
the arithmetic average of the Closing Prices on the most recent ten (10) Trading Days prior to the
proposed Optional Redemption) exceeds the Optional Redemption Price, then the Company shall have
the right to effect the Optional Redemption only if (i) all of the Equity Conditions are satisfied
on and at all times during the twenty (20) days preceding the date of the proposed Optional
Redemption and (ii) the aggregate number of Underlying Shares issuable on such date does not exceed
100% of the arithmetic average of the Daily Trading Volume for each of the 20 consecutive Trading
Days preceding the date of the proposed Optional Redemption. To effect an Optional Redemption the
Company must deliver a notice of the Optional Redemption to the Holders at least twenty (10)
Trading Days prior the date of the Optional Redemption (the “Optional Redemption Date”), which
notice shall state the date of the Optional Redemption Date and the Optional Redemption Price.

     (b) Upon receipt of payment of the Optional Redemption Price by the Holders of Notes, each
Holder will deliver the certificate(s) evidencing the Notes redeemed by the Company against payment
of the Optional Redemption Price therefor, unless such Holder is awaiting receipt of a new
certificate evidencing such shares from the Company pursuant to another provision hereof. At any
time on or prior to the Optional Redemption Date, the Holder may convert all or any portion of this
Note, and the Company shall honor any such conversions in accordance with the terms hereof.

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     9. Events of Default.

     (a) “Event of Default” means any one of the following events (whatever the reason and whether
it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment,
decree or order of any court, or any order, rule or regulation of any administrative or
governmental body):

          (i) any default in the payment (free of any claim of subordination) of principal,
interest or liquidated damages in respect of any Notes, as and when the same becomes due and
payable (whether on a date specified for the payment of interest or the date on which the
obligations under the Note mature or by acceleration, redemption, prepayment or otherwise),
which default continues uncured for a period of five (5) days;

          (ii) the Company or any Significant Subsidiary defaults in any of its covenants or
other obligations in respect of (A) any Indebtedness permitted by Section 4.10(a) of the
Purchase Agreement, or (B) any other note or any mortgage, credit agreement or other
facility, indenture agreement, factoring agreement or other instrument under which there may
be issued, or by which there may be secured or evidenced, any Indebtedness for borrowed
money or money due under any long term leasing or factoring arrangement of the Company or
any Significant Subsidiary in an amount exceeding $500,000, whether such Indebtedness now
exists or is hereafter created, or any event or circumstance occurs that with notice or
lapse of time would constitute such a default, which default has not been cured;

          (iii) the Company or any Significant Subsidiary is in default under any contract or
agreement, financial or otherwise, between the Company or any Significant Subsidiary, as
applicable, and any other Person and such default involves claimed actual damages in excess
of $1,000,000 and either (A) the Company has paid or acknowledged liability for such claim
or (B) the other party thereto commences litigation or arbitration proceedings to exercise
its rights and remedies under such contract or agreement as a consequence of such default;

          (iv) there is entered against the Company or any Significant Subsidiary and not
discharged or stayed (A) a final judgment or order for the payment of money in an aggregate
amount exceeding $1,000,000, or (B) any one or more non-monetary final judgments that have,
or could reasonably be expected to have, individually or in the aggregate, a material
adverse effect on the Company or any Significant Subsidiary;

          (v) any Transaction Document, at any time after the Original Issue Date, and for any
reason other than as expressly permitted thereunder, ceases to be in full force and effect;
or the Company or any Subsidiary contests in any manner the validity or enforceability of
any Transaction Document or any provision thereof; or the Company or any Subsidiary denies
that it has any or further liability or obligation under any Transaction Document, or
purports to revoke, terminate or rescind any Transaction Documents;

15

 

          (vi) any Security Agreement ceases to give the Agent (as defined in the Security
Agreements) the primary benefits thereof, including a perfected, enforceable first priority
security interest in, and Lien on, all of the Collateral (as defined therein);

          (vii) the occurrence of a Triggering Event; or

          (viii) the occurrence of a Bankruptcy Event.

     (b) At any time or times following the occurrence of an Event of Default, the Holder shall
have the option to elect, by notice to the Company (an “Event Notice”), to require the Company to
repurchase all or any portion of the outstanding principal amount of this Note, at a repurchase
price equal to 125% of such outstanding principal amount, plus all accrued but unpaid interest
thereon through the date of payment. The aggregate amount payable pursuant to the preceding
sentence is referred to as the “Event Price.” The Company shall pay the Event Price to the Holder
no later than the third Trading Day following the date of delivery of the Event Notice, and upon
receipt thereof the Holder shall deliver this Note and certificates evidencing any Underlying
Shares so repurchased to the Company (to the extent such certificates have been delivered to the
Holder).

     (c) Upon the occurrence of any Bankruptcy Event, all amounts pursuant to Section 9(b)
shall immediately become due and payable in full in cash, without any further action by the Holder.

     (d) In connection with any Event of Default, the Holder need not provide, and the Company
hereby waives, any presentment, demand, protest or other notice of any kind, and the Holder may
immediately and without expiration of any grace period enforce any and all of its rights and
remedies hereunder and all other remedies available to it under applicable law. Any such
declaration may be rescinded and annulled by the Holder at any time prior to payment hereunder. No
such rescission or annulment shall affect any subsequent Event of Default or impair any right
incidental thereto.

     (e) In the event that the Event Price is not paid in cash when due, then, in addition to all
other remedies that may be available, the Holder may require the Company to pay the Event Price in
shares of Common Stock of the Company, to be issued at 93% of the Current Market Price. In the
event the Holder exercises its rights under this paragraph, the Company agrees promptly to take all
actions as may be required, including without limitation seeking to obtain shareholder approval if
required, in order to comply with its obligations under this paragraph.

     10. Charges, Taxes and Expenses. Issuance of certificates for Underlying Shares upon
conversion of (or otherwise in respect of) this Note shall be made without charge to the Holder for
any issue or transfer tax, withholding tax, transfer agent fee or other incidental tax or expense
in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by
the Company; provided, however, that the Company shall not be required to pay any
tax which may be payable in respect of any transfer involved in the registration of any
certificates for Underlying Shares or Notes in a name other than that of the Holder. The Holder
shall be responsible for all other tax liability that may arise as a result of holding or
transferring this Note or receiving Underlying Shares in respect hereof.

16

 

     11. Certain Adjustments. The Conversion Price is subject to adjustment from time to
time as set forth in this Section 11.

     (a) Stock Dividends and Splits. If the Company, at any time while this Note is
outstanding, (i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any
class of capital stock that is payable in shares of Common Stock, (ii) subdivides outstanding
shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of
Common Stock into a smaller number of shares, then in each such case the Conversion Price shall be
multiplied by a fraction of which the numerator shall be the number of shares of Common Stock
outstanding immediately before such event and of which the denominator shall be the number of
shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to
clause (i) of this Section 11(a) shall become effective immediately after the record date
for the determination of stockholders entitled to receive such dividend or distribution, and any
adjustment pursuant to clause (ii) or (iii) of this Section 11(a) shall become effective
immediately after the effective date of such subdivision or combination.

     (b) Pro Rata Distributions. If the Company, at any time while this Note is
outstanding, distributes to all holders of Common Stock (i) evidences of its indebtedness, (ii) any
security (other than a distribution of Common Stock described in Section 11(a)), (iii)
rights or warrants to subscribe for or purchase any security, or (iv) cash or any other asset (in
each case, “Distributed Property”), then the Company shall deliver to the Holder (on the effective
date of such distribution), the Distributed Property that the Holder would have been entitled to
receive in respect of the Underlying Shares for which this Note could have been converted
immediately prior to the date on which holders of Common Stock became entitled to receive such
Distributed Property (without giving effect to any limitation on conversion in Section
6(c)).

     (c) Fundamental Changes. If, at any time while this Note is outstanding, (i) the
Company effects any merger or consolidation of the Company with or into another Person, (ii) the
Company effects any sale of all or substantially all of its assets in one or more transactions,
(iii) any tender offer or exchange offer (whether by the Company or another Person) is completed
pursuant to which holders of Common Stock are permitted to tender or exchange their shares for
other securities, cash or property, (iv) the Company effects any reclassification of the Common
Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted
into or exchanged for other securities, cash or property (other than as a result of a subdivision
or combination of shares of Common Stock described in Section 11(a)), or (v) there is a
Change of Control (each case in clauses (i) through (v) above, a “Fundamental Change”), then upon
any subsequent conversion of this Note, the Holder shall have the right to receive (except to the
extent previously distributed to the Holder pursuant to Section 11(b)), for each Underlying
Share that would have been issuable upon such conversion absent such Fundamental Change (without
giving effect to any limitation on conversion in Section 6(c)), the same kind and amount of
securities, cash or property as it would have been entitled to receive upon the occurrence of such
Fundamental Change if it had been, immediately prior to such Fundamental Change, the holder of one
share of Common Stock (the “Alternate Consideration”). If holders of Common Stock are given any
choice as to the securities, cash or property to be received in a Fundamental Change, then the
Holder shall be given the same choice as to the Alternate Consideration it receives upon any
conversion of this Note following such Fundamental Change. In the event of a Fundamental Change,
the Company or the successor or
purchasing Person, as the case may be, shall execute with the Holder a written agreement
providing that:

17

 

     (x) this Note shall thereafter entitle the Holder to purchase the Alternate
Consideration;

     (y) in the case of any such successor or purchasing Person, upon such consolidation,
merger, statutory exchange, combination, sale or conveyance such successor or purchasing
Person shall be jointly and severally liable with the Company for the performance of all of
the Company’s obligations under this Note and the other Transaction Documents; and

     (z) if registration or qualification is required under the Exchange Act or applicable
state law for the public resale by the Holder of shares of stock and other securities so
issuable upon exercise of this Note, such registration or qualification shall be completed
prior to such reclassification, change, consolidation, merger, statutory exchange,
combination or sale.

If, in the case of any Fundamental Change, the Alternate Consideration includes shares of stock,
other securities, other property or assets of a Person other than the Company or any such successor
or purchasing Person, as the case may be, in such Fundamental Change, then such written agreement
shall also be executed by such other Person and shall contain such additional provisions to protect
the interests of the Holder as the Board of Directors of the Company shall reasonably consider
necessary by reason of the foregoing. At the Holder’s request, any successor to the Company or
surviving Person in such Fundamental Change shall issue to the Holder a new Note consistent with
the foregoing provisions and evidencing the Holder’s right to convert such Note into Alternate
Consideration. The terms of any agreement pursuant to which a Fundamental Change is effected shall
include terms requiring any such successor or surviving Person to comply with the provisions of
this Section 11(c) and insuring that this Note (or any such replacement security) will be
similarly adjusted upon any subsequent transaction analogous to a Fundamental Change. If any
Fundamental Change constitutes or results in a Change of Control, then at the request of the
Holder, the Company (or any such successor or surviving entity) will purchase this Note from the
Holder for a purchase price, payable in cash within five Trading Days after such request, equal to
the greater of (x) 125% of such outstanding principal amount, plus all accrued but unpaid interest
thereon through the date of payment, and (y) the Event Equity Value of the Underlying Shares
issuable upon conversion of such principal amount and all such accrued but unpaid interest thereon.

     (d) Subsequent Equity Sales.

          (i) If, at any time while this Note is outstanding, the Company directly or indirectly
issues additional shares of Common Stock or rights, warrants, options or other securities or
debt convertible, exercisable or exchangeable for shares of Common Stock or otherwise
entitling any Person to acquire shares of Common Stock (collectively, “Common Stock
Equivalents”) at an effective net price to the Company per share of Common Stock (the
“Effective Price”) less than the Conversion Price (as adjusted hereunder to such date), then
the Conversion Price shall be reduced to equal the Effective

18

 

Price. For purposes of this paragraph, in connection with any issuance of any Common
Stock Equivalents, (A) the maximum number of shares of Common Stock potentially issuable at
any time upon conversion, exercise or exchange of such Common Stock Equivalents (the “Deemed
Number”) shall be deemed to be outstanding upon issuance of such Common Stock Equivalents,
(B) the Effective Price applicable to such Common Stock shall equal the minimum dollar value
of consideration payable to the Company to purchase such Common Stock Equivalents and to
convert, exercise or exchange them into Common Stock (net of any discounts, fees,
commissions and other expenses), divided by the Deemed Number, and (C) no further adjustment
shall be made to the Conversion Price upon the actual issuance of Common Stock upon
conversion, exercise or exchange of such Common Stock Equivalents.

          (ii) If, at any time while this Note is outstanding, the Company directly or indirectly
issues Common Stock Equivalents with an Effective Price or a number of underlying shares
that floats or resets or otherwise varies or is subject to adjustment based (directly or
indirectly) on market prices of the Common Stock (a “Floating Price Security”), then for
purposes of applying the preceding paragraph in connection with any subsequent conversion,
the Effective Price will be determined separately on each Conversion Date and will be deemed
to equal the lowest Effective Price at which any holder of such Floating Price Security is
entitled to acquire Common Stock on such Conversion Date (regardless of whether any such
holder actually acquires any shares on such date).

          (iii) The Company shall not issue any Common Stock Equivalents at an Effective Price
less than the Conversion Price (as adjusted hereunder to such date) unless prior to such
issuance (A) the Holder has consented to such issuance in writing and (B) the Company shall
have obtained all necessary shareholder and other approvals, including under the rules or
regulations of the Eligible Market on which the Common Stock is then listed, required for
the Conversion Price under this Note to be reduced to such Effective Price.

          (iv) Notwithstanding the foregoing, no adjustment will be made under this paragraph (d)
in respect of any issuances of Common Stock and Common Stock Equivalents made pursuant to
the definition of Excluded Stock.

     (e) Calculations. All calculations under this Section 11 shall be made to the
nearest cent or the nearest 1/100th of a share, as applicable. The number of shares of Common
Stock outstanding at any given time shall not include shares owned or held by or for the account of
the Company, and the disposition of any such shares shall be considered an issue or sale of Common
Stock.

     (f) Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this
Section 11, the Company at its expense will promptly compute such adjustment in accordance
with the terms hereof and prepare and deliver to the Holder a certificate describing in reasonable
detail such adjustment and the transactions giving rise thereto, including all facts upon which
such adjustment is based.

19

 

     (g) Notice of Corporate Events. If the Company (i) declares a dividend or any other
distribution of cash, securities or other property in respect of its Common Stock, including
without limitation any granting of rights or warrants to subscribe for or purchase any capital
stock of the Company or any Subsidiary (other than Incentives or pursuant to Incentives), (ii)
authorizes or approves, enters into any agreement contemplating or solicits stockholder approval
for a Fundamental Change or (iii) authorizes the voluntary dissolution, liquidation or winding up
of the affairs of the Company, then the Company shall deliver to the Holder a notice describing the
material terms and conditions of such transaction, at least 20 Trading Days prior to the applicable
record or effective date on which a Person would need to hold Common Stock in order to participate
in or vote with respect to such transaction, and the Company will take all steps reasonably
necessary in order to insure that the Holder is given the practical opportunity to convert this
Note prior to such time so as to participate in or vote with respect to such transaction.

     12. No Fractional Shares. The Company shall not issue or cause to be issued
fractional Underlying Shares on conversion of this Note. If any fraction of an Underlying Share
would, except for the provisions of this Section 12, be issuable upon conversion of this
Note, the number of Underlying Shares to be issued will be rounded up to the nearest whole share.

     13. Notices. Any and all notices or other communications or deliveries hereunder
(including any Conversion Notice) shall be in writing and shall be deemed given and effective on
the earliest of (i) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section 13 prior to 6:30 p.m. (New York
City time) on a Trading Day, (ii) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number specified in this
Section 13 on a day that is not a Trading Day or later than 6:30 p.m. (New York City time)
on any Trading Day, (iii) the Trading Day following the date of mailing, if sent by nationally
recognized overnight courier service specifying next Business Day delivery, or (iv) upon actual
receipt by the party to whom such notice is required to be given, if by hand delivery. The address
and facsimile number of a party for such notices or communications shall be as set forth in the
Purchase Agreement, unless changed by such party by two Trading Days’ prior notice to the other
party in accordance with this Section 13.

     14. Miscellaneous.

     (a) This Note shall be binding on and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. Subject to the restrictions on transfer set forth
herein, this Note may be assigned by the Holder. The Company shall not be permitted to assign this
Note absent the prior written consent of the Holder.

     (b) Subject to Section 13(a), nothing in this Note shall be construed to give to any
person or corporation other than the Company and the Holder any legal or equitable right, remedy or
cause under this Note.

20

 

     (c) Governing Law; Venue; Waiver Of Jury Trial. all questions
concerning the construction, validity, enforcement and interpretation of this Note shall be
governed by and construed and enforced in accordance with the internal laws of
the state of new york (except for matters governed by corporate law in the state of
maryland), without regard to the principles of conflicts of law thereof. each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the
city of new york, borough of manhattan, for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby or discussed herein (including with
respect to the enforcement of any of the transaction documents), and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject
to the jurisdiction of any such court, that such suit, action or proceeding is improper. each
party hereby irrevocably waives personal service of process and consents to process being served in
any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices
to it under this agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law. the company hereby waives all rights to
a trial by jury.

     (d) The headings herein are for convenience only, do not constitute a part of this Note and
shall not be deemed to limit or affect any of the provisions hereof.

     (e) In case any one or more of the provisions of this Note shall be invalid or unenforceable
in any respect, the validity and enforceability of the remaining terms and provisions of this Note
shall not in any way be affected or impaired thereby and the parties will attempt in good faith to
agree upon a valid and enforceable provision which shall be a commercially reasonable substitute
therefor, and upon so agreeing, shall incorporate such substitute provision in this Note.

     (f) In the event of any stock split, subdivision, dividend or distribution payable in shares
of Common Stock (or other securities or rights convertible into, or entitling the holder thereof to
receive directly or indirectly shares of Common Stock), combination or other similar
recapitalization or event occurring after the date hereof, each reference in this Note to a price
(if not otherwise adjusted) shall be amended to appropriately account for such event.

     (g) This Note, together with the other Transaction Documents, constitutes the entire agreement
of the parties with respect to the subject matter hereof. No provision of this Note may be waived
or amended except in a written instrument signed, in the case of an amendment, by the Company and
the Majority Holders or, in the case of a waiver, by the Majority Holders. Any waiver executed by
the Majority Holders shall be binding on the Company and all Holders. No waiver of any default
with respect to any provision, condition or requirement of this Note shall be deemed to be a
continuing waiver in the future or a waiver of any subsequent default or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission of either party to
exercise any right hereunder in any manner impair the exercise of any such right. The restrictions
set forth in Section 6(c) and 6(d) hereof may not be amended or waived.

     (h) The Holder shall have no rights as a holder of Common Stock as a result of being a holder
of this Note, except as required by law or rights expressly provided in this Note.

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      IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by a duly
authorized officer as of the date first above indicated.

	 	 	 	 	 	 	 
	 	 	ACE*COMM CORPORATION	 	 
	 
	 	 	 	 	 	 
	 
	 	By	 	 /s/ STEVEN R. DELMAR	 	 
	 
	 	 	 	 
Name:  STEVEN R. DELMAR	 	 
	 
	 	 	 	Title:  SR. VP & CFO	 	 

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Schedule 1

FORM OF CONVERSION NOTICE

(To be executed by the registered Holder in order to convert Note)

The undersigned hereby elects to convert the specified principal amount of Senior Secured
Convertible Notes (the “Notes”) into shares of common stock, no par value (the “Common Stock”), of
ACE*COMM CORPORATION, a Maryland corporation, according to the conditions hereof, as of the date written below.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Date to Effect Conversion	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Principal amount of Notes owned prior to conversion	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Principal amount of Notes to be converted	 	 
	 	 	(including accrued but unpaid interest thereon)	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Number of shares of Common Stock to be Issued	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Applicable Conversion Price	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Principal amount of Notes owned subsequent to Conversion	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name of Holder	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

Schedule 2

CONVERSION SCHEDULE

This Conversion Schedule reflects conversions of the Senior Secured Convertible Notes issued by ACE*COMM CORPORATION

	 	 	 	 	 
	 	 	 	 	Aggregate Principal Amount
	Date of Conversion	 	Amount of Conversion	 	Remaining Subsequent to Conversion
	 
	 	 	 	 

 

Schedule III

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Schedule III to	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Series A Note	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Calendar Quarters	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(amounts in 000’s)	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2007	 	2007	 	2007	 	2008	 	2008	 	2008	 	2008
	 	 	Q2	 	Q3	 	Q4	 	Q1	 	Q2	 	Q3	 	Q4
	 	 	30-Jun	 	30-Sep	 	31-Dec	 	31-Mar	 	30-Jun	 	Sep-07	 	31-Dec
	 
	Cash
	 	 	3,183	 	 	 	1,181	 	 	 	1,937	 	 	 	1,213	 	 	 	304	 	 	 	437	 	 	 	1,701	 

For all fiscal quarters after December 31, 2008, required cash is cash equal to or exceeding the greater of (i) cash required for the
fiscal quarter ending December 31, 2008 as set forth above, and (ii) 80% of the amount of cash applicable to such fiscal quarter pursuant to
the Company’s operating plan for such quarter approved by the Company’s Board of Directors.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TNW
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Stockholders Equity
	 	 	(1,106	)	 	 	(1,940	)	 	 	(2,620	)	 	 	(2,669	)	 	 	(3,537	)	 	 	(3,327	)	 	 	(3,046	)
	less intangibles of:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Goodwill
	 	 	386	 	 	 	386	 	 	 	386	 	 	 	386	 	 	 	386	 	 	 	386	 	 	 	386	 
	Acquired
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Intangibles
	 	 	1,208	 	 	 	967	 	 	 	727	 	 	 	486	 	 	 	298	 	 	 	122	 	 	 	27	 
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TNW @
	 	 	(2,700	)	 	 	(3,293	)	 	 	(3,733	)	 	 	(3,541	)	 	 	(4,221	)	 	 	(3,835	)	 	 	(3,459	)

For all fiscal quarters after December 31, 2008, required Tangible Net Worth is Tangible Net Worth equal to or exceeding the greater of
(i) Tangible Net Worth required for the fiscal quarter ending December 31, 2008 as set forth above, and (ii) 80% of the amount of Tangible
Net Worth applicable to such fiscal quarter pursuant to the Company’s operating plan for such quarter approved by the Company’s Board of
Directors.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EBITDA
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Net income (loss)
	 	 	(1,580	)	 	 	(972	)	 	 	(819	)	 	 	(188	)	 	 	(1,007	)	 	 	71	 	 	 	(132	)
	less:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	interest expense
	 	 	39	 	 	 	118	 	 	 	118	 	 	 	118	 	 	 	118	 	 	 	118	 	 	 	118	 
	depreciation
	 	 	99	 	 	 	99	 	 	 	99	 	 	 	99	 	 	 	99	 	 	 	99	 	 	 	99	 
	option expense
	 	 	67	 	 	 	67	 	 	 	54	 	 	 	17	 	 	 	17	 	 	 	17	 	 	 	17	 
	amortization
	 	 	241	 	 	 	241	 	 	 	241	 	 	 	241	 	 	 	188	 	 	 	177	 	 	 	94	 
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EBITDA @
	 	 	(1,134	)	 	 	(447	)	 	 	(307	)	 	 	287	 	 	 	(585	)	 	 	482	 	 	 	196	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Required EBITDA
	 	 	(1,361	)	 	 	(536	)	 	 	(368	)	 	 	230	 	 	 	(702	)	 	 	386	 	 	 	157	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Required Cumulative
EBITDA
	 	 	(1,361	)	 	 	(1,897	)	 	 	(2,266	)	 	 	(2,036	)	 	 	(2,738	)	 	 	(2,352	)	 	 	(2,196	)

 

For all fiscal quarters after December 31, 2008, required EBITDA is EBITDA equal to or
exceeding the greater of (i) $1,00, and (ii) 80% of the amount of EBITDA applicable to such fiscal
quarter pursuant to the Company’s operating plan for such quarter approved by the Company’s Board of Directors.

For all fiscal quarters through December 31, 2008, the Company shall be deemed to be in compliance
with Section 3(f) of this Note if the Cumulative EBITDA requirement is satisfied regardless of whether the EBITDA requirement for such fiscal quarter is satisfied.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}]]