Document:

EX-10.2 PARTICIPATION FORM FOR DANIEL E. ELLIS

 

EXHIBIT
10.2

Participation Form

Participation
Form No. 1

Lodgian, Inc. Executive Incentive Plan

Participation Form

To: Daniel Ellis

In accordance with the provisions of the Lodgian, Inc. Executive Incentive Plan (the “Plan”), you
are hereby notified that you have been selected to become a Participant in the Plan. As a
Participant, you may become entitled to incentive compensation pursuant to the terms and provisions
of the Plan for the Bonus Years noted below:

	 	 	 	 	 
	2006: þ
	 	2007: þ
	 	2008: þ

Your Maximum Annual Cash Bonus Amount shall be:

$288,750

Your Base Annual Restricted Shares shall be:

6,000

Your Bonus Multiplier shall be:

50%

The Company must achieve certain performance goals noted in the Plan for you to receive all or any
portion of your Maximum Annual Cash Bonus Amount or all, any portion of, or a multiple of, your
Base Annual Restricted Shares. This Participation Form will evidence your participation in the
Plan. You should consult the Plan for details concerning the calculation and determination of your
potential incentive compensation.

In witness whereof, we, the undersigned members of the Committee have executed this
Participation Form as of this 31 day of January, 2006.

	 	 	 	 	 
	s/ Kevin C. McTavish
 

	 	s/ Sean F. Armstrong
 

	 	 
	Committee Member

	 	Committee Member	 	 
	 
	 	 	 	 
	s/ Kenneth A. Caplan
 

	 	 	 	 
	Committee Memberexv10w1

 

Exhibit 10.1

MORTGAGE LOAN PURCHASE AND SERVICING AGREEMENT

This MORTGAGE LOAN PURCHASE AND SERVICING AGREEMENT is made and entered into as of April 1, 1998
(the “Agreement”), between COUNTRYWIDE HOME LOANS, INC., a New York corporation, having an address
at 4500 Park Granada, Calabasas, California 91302 (“Countrywide”), and RWT HOLDINGS, INC., having
an address at 591 Redwood Highway, Suite 3140, Mill Valley, California 94941 (“Purchaser”).

R E C I T A L S

Purchaser has agreed to purchase from Countrywide and Countrywide has agreed to sell
to Purchaser all of Countrywide’s right, title and interest, excluding servicing
rights, in and to those certain mortgage loans identified in a Purchase Confirmation
(as defined below) executed by Countrywide and Purchaser. This Agreement is
intended to set forth the terms and conditions by which Countrywide shall transfer
and Purchaser shall acquire such mortgage loans and by which Countrywide will
service the mortgage loans.

In consideration of the promises and mutual agreements set forth herein, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Countrywide and Purchaser agree as follows:

ARTICLE I

DEFINITIONS

               Unless the context requires otherwise, all capitalized terms used herein shall have the
meanings assigned to such terms in this Article I unless defined elsewhere herein. Any capitalized
term used or defined in a Purchase Confirmation that conflicts with the corresponding definition
set forth herein shall supersede such term.

               Adjustable Rate Mortgage Loan: Any Mortgage Loan in which the related Mortgage Note
contains a provision whereby the Mortgage Interest Rate is adjusted from time to time in accordance
with the terms of such Mortgage Note.

               Agency: Either FNMA or FHLMC.

               Agreement: This Mortgage Loan Purchase and Servicing Agreement including all
amendments hereof and supplements hereto.

               Appraised Value: The value of the related Mortgaged Property as set forth in an
appraisal made in connection with the origination of a Mortgage Loan or the sale price of the
related Mortgaged Property if the proceeds of such Mortgage Loan were used to purchase such
Mortgaged Property, whichever is less.

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

               Balloon Mortgage Loan: Any Mortgage Loan wherein the Mortgage Note matures prior to
full amortization and requires a final and accelerated payment of principal.

               Business Day: Any day other than (i) a Saturday or Sunday, or (ii) a day on which
banking and savings and loan institutions in the State of California are authorized or obligated by
law or executive order to be closed.

               Cash Liquidation: Recovery of all cash proceeds by Countrywide with respect to the
termination of any defaulted Mortgage Loan other than a Mortgage Loan which became an REO Property,
including all PMI Proceeds, Other Insurance Proceeds, Liquidation Proceeds, Condemnation Proceeds
and other payments or recoveries whether made at one time or over a period of time which
Countrywide

 

 

deems to be finally recoverable, in connection with the sale or assignment of such
Mortgage Loan, trustee’s sale, foreclosure sale or otherwise.

               Closing: The consummation of the sale and purchase of each Mortgage Loan Package.

               Closing Date: The date on which the purchase and sale of the Mortgage Loans
constituting a Mortgage Loan Package is consummated, as set forth in the Trade Confirmation and
Purchase Confirmation.

               Collateral Documents: The collateral documents pertaining to each Mortgage Loan as set
forth in Exhibit A hereto.

               Collateral File: With respect to each Mortgage Loan, a file containing each of the
Collateral Documents.

               Condemnation Proceeds: All awards or settlements in respect of a taking of an entire
Mortgaged Property by exercise of the power of eminent domain or condemnation.

               Convertible Mortgage Loan: Any Adjustable Rate Mortgage Loan that contains a
provision whereby the Mortgagor is permitted to convert the Mortgage Loan to a fixed-rate mortgage
loan in accordance with the terms of the related Mortgage Note.

               Countrywide: Countrywide Home Loans, Inc., or any successor or assign to Countrywide
under this Agreement as provided herein.

               Credit File: The file retained by Countrywide that includes the mortgage loan
documents pertaining to a Mortgage Loan as set forth in Exhibit C including copies of the
Collateral Documents together with the credit documentation relating to the origination of such
Mortgage Loan, which Credit File may be maintained by Countrywide on microfilm or any other
comparable medium.

               Custodial Account: The account or accounts created and maintained pursuant to Section
4.04, each of which shall be an Eligible Account.

               Custodian: The custodian appointed by Purchaser, or its successor in interest or
assigns.

               Cut-off Date: The first day of the month in which the related Closing Date occurs or
such other date as may be set forth in the related Trade Confirmation and/or Purchase Confirmation.

               Cut-off Date Balance: The aggregate scheduled unpaid principal balance of the
Mortgage Loans in a Mortgage Loan Package as of the Cut-off Date, after application of (i)
scheduled payments of principal due on such Mortgage Loans on or before such Cut-off Date, whether
or not collected, and (ii) any Principal Prepayments received from the Mortgagor prior to the date
on which the Mortgage Loan Schedule is prepared.

               Determination Date: The 15th day of the month of the related Remittance Date or if
such 15th day is not a Business Day, the Business Day immediately following such 15th day.

               Due Date: The day of the month on which the Monthly Payment is due on a Mortgage
Loan, exclusive of any days of grace.

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

               Eligible Account: An account or accounts (i) maintained with a depository institution
the short term debt obligations of which are rated by Standard & Poor’s, a division of McGraw-Hill
companies, in one of its two (2) highest rating categories at the time of any deposit therein,
(ii) the deposits of which are fully insured by the FDIC, or (iii) maintained with an institution and in a
manner acceptable to an Agency.

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               Escrow Account: The separate trust account or accounts created and maintained
pursuant to Section 4.06, each of which shall be an Eligible Account.

               Escrow Payments: The amounts constituting ground rents, taxes, assessments, water
rates, mortgage insurance premiums, fire and hazard insurance premiums and other payments required
to be escrowed by the Mortgagor with the Mortgagee pursuant to any Mortgage Loan.

               Event of Default: Any one of the conditions or circumstances enumerated in Section
7.01.

               FDIC: The Federal Deposit Insurance Corporation, or any successor thereto.

               FHA: The Federal Housing Administration.

               FHLMC: The Federal Home Loan Mortgage Corporation or any successor organization.

               Fidelity Bond: A fidelity bond to be maintained by Countrywide pursuant to Section
4.12 .

               Fixed Rate Mortgage Loan: Any Mortgage Loan wherein the Mortgage Interest Rate set
forth in the Mortgage Note is fixed for the term of such Mortgage Loan.

               FNMA: The Federal National Mortgage Association or any successor organization.

               Funding Deadline: With respect to each Closing Date, one o’clock p.m. (1:00 p.m.) New
York time, or such other time mutually agreed to by Purchaser and Countrywide.

               Gross Margin: With respect to each Adjustable Rate Mortgage Loan, the fixed
percentage amount set forth in the related Mortgage Note, which amount is added to the index in
accordance with the terms of the related Mortgage Note to determine on each Interest Adjustment
Date, the Mortgage Interest Rate for such Mortgage Loan.

               HUD: The Department of Housing and Urban Development or any federal agency or
official thereof which may from time to time succeed to the functions thereof.

               Interest Adjustment Date: With respect to an Adjustable Rate Mortgage Loan, the date
on which an adjustment to the Mortgage Interest Rate on a Mortgage Note becomes effective.

               Late Collections: With respect to any Mortgage Loan, all amounts received during any
Due Period, whether as late payments of Monthly Payments or as Liquidation Proceeds, Condemnation
Proceeds, PMI Proceeds, Other Insurance Proceeds, proceeds of any REO Disposition or otherwise,
which represent late payments or collections of Monthly Payments due but delinquent for a previous
Due Period and not previously recovered.

               Lifetime Rate Cap: With respect to each Adjustable Rate Mortgage Loan, the absolute
maximum Mortgage Interest Rate payable, above which the Mortgage Interest Rate shall not be
adjusted, as set forth in the related Mortgage Note and Mortgage Loan Schedule.

               Liquidation Proceeds: Amounts, other than PMI Proceeds, Condemnation Proceeds and
Other Insurance Proceeds, received by Countrywide in connection with the liquidation of a defaulted
Mortgage Loan through trustee’s sale, foreclosure sale or otherwise, other than amounts received
following the acquisition of an REO Property pursuant to Section 4.13 .

               LTV: With respect to any Mortgage Loan, the ratio (expressed as a percentage) of the
Stated Principal Balance (or the original principal balance, if so indicated) of such Mortgage Loan
as of the date of determination to the Appraised Value of the related Mortgaged Property.

               LPMI Fee: The portion of the Mortgage Interest Rate relating to an LPMI Loan, which
is set forth on the related Mortgage Loan Schedule, to be retained by Countrywide to pay the
premium due on the PMI Policy with respect to such LPMI Loan.

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               LPMI Loan: Any Mortgage Loan with respect to which Countrywide is responsible for
paying the premium due on the related PMI Policy with the proceeds generated by the LPMI Fee
relating to such Mortgage Loan, as set forth on the related Mortgage Loan Schedule.

               Monthly Advance: The advances made or required to be made by Countrywide on any
Remittance Date pursuant to Section 5.03.

               Monthly Payment: The scheduled monthly payment of principal and interest on a
Mortgage Loan.

               Mortgage: The mortgage, deed of trust or other instrument securing a Mortgage Note,
which creates a first lien on an unsubordinated estate in fee simple in real property securing the
Mortgage Note or a first lien upon a leasehold estate of the Mortgagor, as the case may be.

               Mortgage Interest Rate: The annual rate at which interest accrues on any Mortgage
Loan and, with respect to an Adjustable Rate Mortgage Loan, as adjusted from time to time in
accordance with the provisions of the related Mortgage Note.

               Mortgage Loan: Any mortgage loan that is sold pursuant to this Agreement, as
evidenced by such mortgage loan’s inclusion on the related Mortgage Loan Schedule, which mortgage
loan includes the Credit File, the Monthly Payments, Principal Prepayments, Liquidation Proceeds,
Condemnation Proceeds, PMI Proceeds (if applicable), Other Insurance Proceeds, REO Disposition
proceeds, and all other rights, benefits, proceeds and obligations arising from or in connection
with such Mortgage Loan, excluding the servicing rights relating thereto. Unless the context
requires otherwise, any reference to the Mortgage Loans in this Agreement shall refer to the
Mortgage Loans constituting a Mortgage Loan Package.

               Mortgage Loan Package: The Mortgage Loans sold to Purchaser pursuant to a Purchase
Confirmation.

               Mortgage Loan Remittance Rate: With respect to each Mortgage Loan, the interest rate
payable to Purchaser on each Remittance Date which shall equal the Mortgage Interest Rate less the
Servicing Fee and the LPMI Fee, if applicable.

               Mortgage Loan Schedule: With respect to each Mortgage Loan Package, the schedule of
Mortgage Loans included therein and made a part of the related Purchase Confirmation, which
schedule shall include, the following information with respect to each Mortgage Loan: (1)
Countrywide’s Mortgage Loan identifying number; (2) the Mortgagor’s name; (3) the street address of
the Mortgaged Property including the city, state and zip code; (4) a code indicating whether the
Mortgaged Property is owner-occupied; (5) the type of residential units constituting the Mortgaged
Property (i.e., detached single family, two-to-four-family, condominium units, etc.); (6) the
original months to maturity or the remaining months to maturity from the Cut-off Date, in any case
based on the original amortization schedule and, if different, the maturity expressed in the same
manner but based on the actual amortization schedule; (7) the Appraised Value of the Mortgaged
Property and the Loan-to-Value Ratio at origination; (8) the Mortgage Interest Rate as of the
Cut-off Date; (9) the date on which the initial Monthly Payment was due on the Mortgage Loan; (10)
the stated maturity date; (11) the original principal amount of the Mortgage Loan; (12) the
principal balance of the Mortgage Loan as of the close of business on the Cut-off Date, after
deduction of payments of principal due on or before the Cut-off Date whether or not collected; (13)
with respect to any Adjustable Rate Mortgage Loans, the Interest Adjustment Date; (14) with respect
to any Adjustable Rate Mortgage Loans, the Gross Margin; (15) a code indicating the purpose of the
loan (i.e., purchase, rate and term refinance, equity take-out refinance); (16) with respect to any
Adjustable Rate Mortgage Loans, the maximum Mortgage Interest Rate under the terms of the Mortgage
Note; (17) with respect to any Adjustable Rate Mortgage Loans, the Periodic Rate Cap; (18) the
Servicing Fee Rate; (19) a code indicating the documentation style (i.e.,
full, alternative, reduced or streamlined); (20) the Pool Insurance Certificate number if
applicable; (21) a code indicating whether the Mortgage Loan is secured by the Mortgagor’s primary
residence; and (22) the pay-to date. With respect to the Mortgage Loans in the aggregate, the
Mortgage Loan Schedule shall set forth the following information, as of the Cut-off Date: (1) the
number of Mortgage Loans; (2) the current principal balance of the Mortgage Loans; (3) the weighted
average Mortgage Interest Rate of the Mortgage Loans; and (4) the weighted average maturity of the
Mortgage Loans.

4

 

               Mortgage Note: The note or other evidence of the indebtedness of a Mortgagor secured
by a Mortgage.

               Mortgaged Property: The real property (or leasehold estate, if applicable) securing
repayment of the debt evidenced by a Mortgage Note.

               Mortgagee: The mortgagee or beneficiary named in the Mortgage and the successors and
assigns of such mortgagee or beneficiary.

               Mortgagor: The obligor on a Mortgage Note.

               Officer’s Certificate: A certificate signed by the Chairman or Vice Chairman of the
Board of Directors of Countrywide or a president, vice president, treasurer, secretary, assistant
treasurer, or assistant secretary of Countrywide.

               Opinion of Counsel: A written opinion of counsel, who may be an employee of the party
on behalf of whom the opinion is being given, reasonably acceptable to Purchaser.

               Other Insurance Proceeds: Proceeds of any title policy, hazard policy, pool policy or
other insurance policy covering a Mortgage Loan, other than the PMI Policy, if any, to the extent
such proceeds are not to be applied to the restoration of the related Mortgaged Property or
released to the Mortgagor in accordance with the procedures that Countrywide would follow in
servicing mortgage loans held for its own account.

               Payment Adjustment Date: As to each Mortgage Loan, the date on which an adjustment to
the Monthly Payment on a Mortgage Note becomes effective.

               Periodic Rate Cap: With respect to each Adjustable Rate Mortgage Loan, the provision
of each Mortgage Note which provides for an absolute maximum amount by which the Mortgage Interest
Rate therein may increase or decrease on an Adjustment Date above the Mortgage Interest Rate
previously in effect, equal to the rate set forth on the Mortgage Loan Schedule per adjustment.

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

               Prepayment Interest Shortfall Amount: With respect to any Mortgage Loan that was
subject to a Principal Prepayment in full or in part during any Due Period, which Principal
Prepayment was applied to such Mortgage Loan prior to such Mortgage Loan’s Due Date in such Due
Period, the amount of interest (at the Mortgage Loan Remittance Rate) that would have accrued on
the amount of such Principal Prepayment during the period commencing on the date as of which such
Principal Prepayment was applied to such Mortgage Loan and ending on the day immediately preceding
such Due Date, inclusive.

               PMI Policy: A policy of private mortgage guaranty insurance relating to a Mortgage
Loan and issued by a Qualified Insurer.

               PMI Proceeds: Proceeds of any PMI Policy.

               Preliminary Mortgage Loan Package: The mortgage loans identified or described in a
Trade Confirmation, which, subject to Purchaser’s due diligence as contemplated in Section 2.01,
are intended to be sold under this Agreement as a Mortgage Loan Package.

               Preliminary Mortgage Loans: The mortgage loans constituting a Preliminary Mortgage
Loan Package.

               Principal Prepayment: Any payment or other recovery of principal on a Mortgage Loan
which is received in advance of its scheduled Due Date, excluding any prepayment penalty or premium
thereon (unless the Purchase Confirmation provides otherwise), which is not accompanied by an
amount

5

 

of interest representing scheduled interest due on any date or dates in any month or months
subsequent to the month of prepayment.

               Principal Prepayment Period: As to any Remittance Date, the calendar month preceding
the month of distribution.

               Purchase Proceeds: The amount paid on the related Closing Date by Purchaser to
Countrywide in exchange for the Mortgage Loan Package purchased on such Closing Date as set forth
in the applicable Trade Confirmation and Purchase Confirmation.

               Purchase Confirmation: The letter agreement, substantially in the form of Exhibit
B hereto, executed by Countrywide and Purchaser in connection with the purchase and sale of
each Mortgage Loan Package, which sets forth the terms relating thereto including a description of
the related Mortgage Loans (including the Mortgage Loan Schedule), the purchase price for such
Mortgage Loans, the Closing Date and the Servicing Fee Rate.

               Purchaser: The Person identified as the “Purchaser” in the preamble to this Agreement
or its successor in interest or any successor or assign to Purchaser under this Agreement as herein
provided. Any reference to “Purchaser” as used herein shall be deemed to include any designee of
Purchaser.

               Qualified Insurer: An insurance company duly qualified as such under the laws of the
states in which the Mortgaged Properties are located, duly authorized and licensed in such states
to transact the applicable insurance business and to write the insurance provided, which insurer is
approved in such capacity by an Agency and whose claims paying ability is rated in the two highest
rating categories by any Rating Agency with respect to primary mortgage insurance and in the two
highest rating categories by Best’s with respect to hazard and flood insurance.

               Qualified Substitute Mortgage Loan: A mortgage loan that must, on the date of such
substitution, (i) have an unpaid principal balance, after deduction of all scheduled payments due
in the month of substitution (or if more than one (1) mortgage loan is being substituted, an
aggregate principal balance), not in excess of the unpaid principal balance of the repurchased
Mortgage Loan (the amount of any shortfall will be deposited in the Custodial Account by
Countrywide in the month of substitution); (ii) have a Mortgage Interest Rate not less than, and
not more than 1% greater than, the Mortgage Interest Rate of the repurchased Mortgage Loan; (iii)
have a remaining term to maturity not greater than, and not more than one year less than, the
maturity date of the repurchased Mortgage Loan; (iv) comply with each representation and warranty
(respecting individual Mortgage Loans) set forth in Section 3.02 hereof; (v) shall be the same type
of Mortgage Loan (i.e., a Convertible Mortgage Loan or a Fixed Rate Mortgage Loan).

               Rating Agency: Duff & Phelps, Fitch, Moody’s or Standard & Poor’s, or their
respective successors.

               Remittance Date: The eighteenth (18th) day of any month, beginning with the month
next following the month in which the related Cut-off Date occurs, or if such eighteenth (18th) day
is not a Business Day, the first Business Day immediately following.

               REO Account: The account created and maintained pursuant to Section 4.13, which
account shall be an Eligible Account.

               REO Disposition: The final sale by Countrywide of any REO Property or the transfer of
the management of such REO Property to Purchaser as set forth in Section 4.13.

               REO Property: A Mortgaged Property acquired by Countrywide on behalf of Purchaser as
described in Section 4.13.

               Repurchase Price: If a Mortgage Loan is required to be repurchased as a result of a
breach of a warranty or representation and such repurchase occurs within eighteen (18) months of
the related Closing Date, with respect to such Mortgage Loan, a price equal to the sum of (a) the
product of (i) the Stated Principal Balance of the Mortgage Loan at the time of repurchase, and
(ii) the purchase price percentage (as indicated in the related Transaction Documents) plus (b)
interest on such Stated Principal

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Balance at the Mortgage Loan Remittance Rate from the last date
through which interest has been paid and distributed to Purchaser to the date of repurchase, less
amounts received or advanced in respect of such repurchased Mortgage Loan which are being held in
the Custodial Account for distribution in the month of repurchase. If a Mortgage Loan is required
to be repurchased as a result of a breach of a warranty or representation and such repurchase
occurs more than eighteen (18) months after the related Closing Date or if a Mortgage Loan must be
repurchased at any time for any reason other than a breach of a warranty or representation, with
respect to such Mortgage Loan, a price equal to (i) the Stated Principal Balance of the Mortgage
Loan plus (ii) interest on such Stated Principal Balance at the Mortgage Loan Remittance Rate from
the last date through which interest has been paid and distributed to Purchaser to the date of
repurchase, less amounts received or advanced in respect of such repurchased Mortgage Loan which
are being held in the Custodial Account for distribution in the month of repurchase.

               Segment(s): The subset(s) of Preliminary Mortgage Loans in a Preliminary Mortgage
Loan Package identified in the related Trade Confirmation or Mortgage Loans in the Mortgage Loan
Package identified in the related Purchase Confirmation, that has unique characteristics and thus
may be referred to separate and apart from other Preliminary Mortgage Loans or Mortgage Loans,
respectively. References to a Segment(s) shall typically be accompanied by an additional
identifier, i.e., Segment A, which shall also be identified in the related Trade Confirmation or
Purchase Confirmation, as applicable.

               Servicing Advances: All customary, reasonable and necessary “out of pocket” costs and
expenses incurred in the performance by Countrywide of its servicing obligations, including the
cost of (i) the preservation, restoration and protection of the Mortgaged Property, (ii)
any enforcement or judicial proceedings, including foreclosures, (iii) the management and
liquidation of the REO Property, and (iv) compliance with the obligations under this Agreement
including Section 4.09.

               Servicing Fee: With respect to each Mortgage Loan, the amount of the annual fee
Purchaser shall pay to Countrywide, which shall, for a period of one full month, be equal to
one-twelfth of the product of (i) the Servicing Fee Rate and (ii) the Stated Principal Balance of
such Mortgage Loan. Such fee shall be payable monthly, computed on the basis of the same principal
amount and period respecting which any related interest payment on a Mortgage Loan is computed.
The obligation of Purchaser to pay the Servicing Fee is limited to, and the Servicing Fee is
payable solely from, the interest portion of such Monthly Payment collected by Countrywide, or as
otherwise provided herein. Subject to the foregoing, and with respect to each Mortgage Loan,
Countrywide shall be entitled to receive its Servicing Fee through the disposition of any related
REO Property and the Servicing Fee payable with respect to any REO Property shall be based on the
Stated Principal Balance of the related Mortgage Loan at the time of foreclosure.

               Servicing Fee Rate: With respect to any Mortgage Loan, the rate per annum set forth
in the applicable Trade Confirmation and/or the Purchase Confirmation.

               Stated Principal Balance: With respect to each Mortgage Loan as of any date of
determination: (i) the unpaid principal balance of the Mortgage Loan at the Cut-off Date after
giving effect to payments of principal due on or before such date, whether or not received, minus
(ii) all amounts previously distributed to Purchaser with respect to the related Mortgage Loan
representing payments or recoveries of principal or advances in lieu thereof.

               Trade Confirmation: A letter agreement executed by Countrywide and Purchaser prior to
the applicable Closing Date confirming the terms of a prospective purchase and sale of a Mortgage
Loan Package.

               Transaction Documents: The Trade Confirmation, the Purchase Confirmation and this
Agreement.

               Updated LTV: With respect to any Mortgage Loan, the outstanding principal balance of
such Mortgage Loan as of the date of determination divided by the value of the related Mortgaged
Property as determined by a recent appraisal of the Mortgaged Property.

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ARTICLE II

PRE-CLOSING AND CLOSING PROCEDURES

               Section 2.01 Due Diligence by Purchaser.

                    (a) Review of Credit File. Prior to the Closing Date, Countrywide shall make
available to Purchaser the Credit File for each Preliminary Mortgage Loan in the related
Preliminary Mortgage Loan Package. Purchaser shall have the right to review the Credit File for
each such Preliminary Mortgage Loan, at Countrywide’s offices or such other location agreed upon by
Purchaser and Countrywide, for the purpose of determining whether each Preliminary Mortgage Loan
conforms in all material respects to the applicable terms contained in the Transaction Documents,
which determination shall be made in Purchaser’s reasonable and good faith discretion. In the event
that Purchaser rejects any Preliminary Mortgage Loan based on such review, Countrywide shall have
the right, in its sole discretion, to substitute replacement Preliminary Mortgage Loans satisfying
the requirements set forth above, and Purchaser shall have the right to review any such replacement
Preliminary Mortgage Loan(s) in the manner contemplated above. Purchaser shall use its reasonable
best efforts to conduct its due diligence, and to convey the results thereof to Countrywide, within
the time and in the manner necessary to permit Countrywide to rebut or cure any Preliminary
Mortgage Loan or to substitute replacement Preliminary Mortgage Loans as permitted herein.

                    (b) Rejection of Preliminary Mortgage Loans. Without limiting the generality of the
foregoing, in the event that Purchaser rejects Preliminary Mortgage Loans (i) comprising more than
10% of the related Preliminary Mortgage Loan Package (as measured by unpaid principal balance), or
(ii) for reasons other than as permitted under the Agreement or the Trade Confirmation, Countrywide
may, in its sole discretion, rescind its offer to sell any of the Preliminary Mortgage Loans
relating thereto to Purchaser and Countrywide shall have no liability therefor.

               Section 2.02 Identification of Mortgage Loan Package. At least three (3) Business
Days prior to the Closing Date, Purchaser shall identify those Preliminary Mortgage Loans that
Purchaser intends to be included in the Mortgage Loan Package.

               Section 2.03 Post-Closing Due Diligence. In the event that Purchaser fails to
complete its due diligence, as contemplated in Section 2.01, with respect to any Preliminary
Mortgage Loan, Purchaser may nonetheless elect to purchase such Mortgage Loan, and if Purchaser
provides notice to Countrywide of such Mortgage Loan and such Mortgage Loan is identified as such
in the Purchase Confirmation (as used therein, the “Pending Mortgage Loans”), Purchaser
shall have the right to review the related Credit File for such Mortgage Loan within ten (10)
Business Days after the Closing Date and, based on such review and within such ten (10) day
period, request that Countrywide repurchase any Pending Mortgage Loan that Purchaser reasonably and
in good faith contends does not conform in all material respects to the applicable terms of the
Transaction Documents. Countrywide shall have ten (10) Business Days from the date of its receipt
of such request to either (a) repurchase such Mortgage Loan at the purchase price for such Mortgage
Loan (as calculated under the related Transaction Documents, as applicable) plus accrued and unpaid
interest, or (b) provide evidence reasonably satisfactory to Purchaser that such Mortgage Loan does
in fact conform to the terms of the Transaction Documents, as applicable. In the event that
Countrywide must repurchase any Mortgage Loan in accordance with this Section 2.03, Countrywide
may, at its option, substitute replacement Mortgage Loans conforming in all material respects to
the applicable terms contained in the related Transaction Documents. The rights and remedies set
forth in this Section 2.03 are in addition to those set forth in Section 3.03.

               Section 2.04 Credit Document Deficiencies Identified During Due Diligence. If, with
respect to a Mortgage Loan Package, the related Purchase Confirmation identifies any Mortgage Loan
for which the related Credit File is missing material documentation (as used therein, the
“Missing Credit Documents”), Countrywide agrees to procure each such Missing Credit
Document within sixty (60) days following the related Closing Date. In the event that,
notwithstanding its reasonable best efforts, Countrywide shall fail to deliver any Missing Credit
Document to Purchaser within the time specified above, Countrywide shall indemnify Purchaser
against all losses arising directly from the failure of Countrywide to obtain any such Missing
Credit Document.

8

 

               Section 2.05 Delivery of Collateral Files.

                    (a) Custodial Agreement. Countrywide shall, on or before three (3) Business Days
prior to the related Closing Date, deliver and release to the Custodian the Collateral File for
each Mortgage Loan in the Mortgage Loan Package. Purchaser shall pay all fees and expenses of the
Custodian; provided, however, that Purchaser shall not be responsible for any transfer or exit fees
payable to Countrywide’s custodian.

                    (b) Missing Collateral Documents. In the event that any of the original Collateral
Documents set forth in clauses (3) through (7) of Exhibit A hereto have not been delivered
to the Custodian (each, a “Missing Collateral Document”), then Countrywide shall have (i)
with respect to any Missing Collateral Document sent for recording, twelve (12) months from the
related Closing Date, or (ii) with respect to all other Missing Collateral Documents, ninety (90)
days from the Closing Date, to deliver to Purchaser such Missing Collateral Documents.
Notwithstanding the foregoing, Countrywide shall not be deemed to be in breach of this Agreement if
its failure to deliver to Purchaser any Missing Collateral Document within the time specified above
is due solely to (i) the failure of the applicable recorder’s office to return a Missing Collateral
Document that was sent for recording or (ii) the failure of the title insurer to issue and deliver
the original mortgagee title policy, except where such refusal to issue the policy is based on a
claim that the title insurer is under no obligation to issue such policy; provided, however, that
if Countrywide fails to deliver any Missing Collateral Document for the foregoing reasons, upon
Purchaser’s written request, Countrywide shall deliver to Purchaser a recording receipt of such
recording office or if such recording receipt is not available, an Officer’s Certificate confirming
that such document has been accepted for recording.

                    (c) Other Documents. Countrywide shall forward to the Custodian in a timely manner
any original documents evidencing an assumption, modification, consolidation or extension of any
Mortgage Loan entered into in accordance with this Agreement upon execution thereof; provided,
however, that Countrywide shall provide the Custodian with a certified true copy of any such
document submitted for recordation, and shall provide the original of such document submitted for
recordation or a copy of such document certified by the appropriate public recording office to be a
true and complete copy of the original promptly following it receipt of same.

               Section 2.06 Purchase Confirmation. Upon confirmation with Purchaser of a Mortgage
Loan Package, Countrywide shall prepare and deliver to Purchaser for execution the related Purchase
Confirmation, executed by an authorized signatory of Countrywide.

               Section 2.07 Closing. The Closing of each Mortgage Loan Package shall take place on
the related Closing Date. The Closing shall be either by telephone, confirmed by letter or wire as
the parties shall agree, or conducted in person, at such place as the parties shall agree. The
Closing for the Mortgage Loans to be purchased on each Closing Date shall be subject to the
satisfaction of each of the following conditions:

                    (a) All of the representations and warranties of Countrywide under this Agreement shall be
true and correct in all material respects as of the Closing Date and no event shall have occurred
that, with notice or the passage of time, would constitute a default under this Agreement;

                    (b) All of the representations and warranties of Purchaser under this Agreement shall be true
and correct in all material respects as of the Closing Date and no event shall have occurred that,
with notice or the passage of time, would constitute a default under this Agreement;

                    (c) Purchaser or its attorneys shall have received in escrow all Closing Documents as
specified in Section 2.08 of this Agreement;

                    (d) At least three (3) Business Days prior to the related Closing Date, Countrywide shall
deliver to Purchaser a magnetic diskette, or transmit by modem, a listing on a loan-level basis of
the information necessary to compute the Purchase Price of the Mortgage Loans delivered on the
related Closing Date (including accrued interest) and prepare a Mortgage Loan Schedule;

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                    (e) Countrywide shall have delivered and released to the Custodian all documents required to
be delivered pursuant to Section 2.05 of this Agreement, subject to the exceptions set forth
therein; and

                    (f) Both parties shall have executed the related Purchase Confirmation.

               Section 2.08 Closing Documents. The Closing Documents for the Mortgage Loans to be
purchased on each Closing Date shall consist of fully executed originals of the following
documents:

                    (a) The Purchase Confirmation; and

                    (b) The related Mortgage Loan Schedule

               Section 2.09 Payment of the Purchase Proceeds. Subject to the conditions set forth in
Section 2.07, and in consideration for the Mortgage Loan Package to be purchased by Purchaser on
the related Closing Date, Purchaser shall pay to Countrywide on such Closing Date the Purchase
Proceeds by wire transfer of immediately available funds to the account designated by Countrywide
on or before the Funding Deadline.

               Section 2.10
Entitlement to Payments on the Mortgage Loans. With respect to any
Mortgage Loan purchased hereunder, Purchaser shall be entitled to (a) all scheduled principal due
after the related Cut-off Date; (b) all other recoveries of principal collected after the related
Cut-off Date, except for (i) recoveries of principal collected after the Cut-off Date and prior to
the Closing Date that are reflected in the Mortgage Loan Schedule, and (ii) all scheduled payments
of principal due on or before the related Cut-off Date; and (c) all payments of interest on such
Mortgage Loan net of interest at the Servicing Fee Rate and the LPMI Fee, if applicable (minus that
portion of any such payment that is allocable to the period prior to the related Cut-off Date).

               Section 2.11 Payment of Costs and Expenses. Purchaser and Countrywide shall each bear
its own costs and expenses in connection with the purchase and sale of the Mortgage Loans including
any commissions due its sales personnel, brokers, the legal fees and expenses of its attorneys and
any due diligence expenses. Without limiting the generality of the foregoing, any costs and
expenses incurred in connection with recording the Assignment of Mortgage or any subsequent
assignment thereof shall be paid for by Purchaser.

ARTICLE III

REPRESENTATIONS AND WARRANTIES; 

REMEDIES FOR BREACH

               Section 3.01 Representations and Warranties Respecting Countrywide. Countrywide
represents, warrants and covenants to Purchaser that, as of each Closing Date:

                    (a) Organization and Standing. Countrywide is duly organized, validly existing and in
good standing under the laws of the jurisdiction in which it is organized and is qualified and
licensed to transact business in and is in good standing under the laws of each state where each Mortgaged
Property is located to the extent necessary to ensure the enforceability of each Mortgage Loan and
the servicing of the Mortgage Loan in accordance with the terms of this Agreement;

                    (b) Due Authority. Countrywide has the full power and authority to (i) perform and
enter into and consummate all transactions contemplated by this Agreement and (ii) to sell each
Mortgage Loan;

                    (c) No Conflict. Neither the acquisition or origination of the Mortgage Loans by
Countrywide, the sale of the Mortgage Loans to Purchaser, the consummation of the transactions
contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this
Agreement, will conflict with or result in a breach of any of the terms, conditions or provisions
of Countrywide’s certificate of incorporation or by-laws or result in a material breach of any
legal restriction or any material

10

 

agreement or instrument to which Countrywide is now a party or by
which it is bound, or constitute a material default or result in an acceleration under any of the
foregoing, or result in the violation of any material law, rule, regulation, order, judgment or
decree to which Countrywide or its property is subject;

                    (d) Approved Seller. Countrywide is an approved seller/servicer for each Agency in
good standing and is a mortgagee approved by the Secretary of HUD. No event has occurred,
including a change in insurance coverage, which would make Countrywide unable to comply with FNMA,
FHLMC or HUD eligibility requirements;

                    (e) No Pending Litigation. There is no action, suit, proceeding, investigation or
litigation pending or, to Countrywide’s knowledge, threatened, which either in any one instance or
in the aggregate, if determined adversely to Countrywide would materially and adversely affect the
sale of the Mortgage Loans to Purchaser, the ability of Countrywide to service the Mortgage Loans
hereunder in accordance with the terms hereof, or Countrywide’s ability to perform its obligations
under this Agreement;

                    (f) No Consent Required. No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and performance by Countrywide,
of or compliance by Countrywide with, this Agreement or the consummation of the transactions
contemplated by this Agreement, or if required, such consent, approval, authorization or order has
been obtained prior to the related Closing Date; and

                    (g) Ability to Perform. Countrywide does not believe, nor does it have any reason or cause to
believe, that it cannot perform each and every covenant contained in this Agreement.

               Section 3.02 Representations and Warranties Regarding Individual Mortgage Loans. With
respect to each Mortgage Loan (unless otherwise specified below), Countrywide represents and
warrants to Purchaser as of the related Closing Date that:

                    (a) Mortgage Loan Schedule. The information contained in the Mortgage Loan Schedule
is complete, true and correct in all material respects;

                    (b) No Delinquencies or Advances. All payments required to be made prior to the
related Cut-off Date for such Mortgage Loan under the terms of the Mortgage Note have been made;
Countrywide has not advanced funds, or induced, solicited or knowingly received any advance of
funds from a party other than the owner of the Mortgaged Property subject to the Mortgage, directly
or indirectly, for the payment of any amount required by the Mortgage Loan; and there has been no
delinquency of thirty (30) days or more in any payment by the Mortgagor thereunder during the last
twelve (12) months;

                    (c) Taxes, Assessments, Insurance Premiums and Other Charges. Countrywide has no
knowledge of any delinquent taxes, ground rents, water charges, sewer rents, assessments, insurance
premiums, leasehold payments, including assessments payable in future installments or other
outstanding charges affecting the related Mortgaged Property;

                    (d) No Modifications. The terms of the Mortgage Note and the Mortgage have not been
impaired, waived, altered or modified in any respect, except by written instruments that have been
or will be recorded, if necessary to protect the interests of Purchaser, and that have been or will
be delivered to Purchaser, all in accordance with this Agreement. The substance of any such
waiver, alteration or modification has been approved by the primary mortgage guaranty insurer, if
any, and by the title insurer, to the extent required by the related policy and its terms are
reflected on the Mortgage Loan Schedule. No Mortgagor has been released, in whole or in part,
except in connection with an assumption agreement approved by the primary mortgage insurer, if any,
and the title insurer, to the extent required by the policy, and which assumption agreement is part
of the Collateral File and the terms of which are reflected in the Mortgage Loan Schedule if
executed prior to the Closing Date;

                    (e) No Defenses. The Mortgage Note and the Mortgage are not subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury, nor will the
operation of any of the terms of the Mortgage Note and the Mortgage, or the exercise of any right
thereunder, render the Mortgage unenforceable, in whole or in part, or subject to any right of
rescission, set-off, counterclaim or

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defense, including the defense of usury, and no such right of
rescission, set-off, counterclaim or defense has been asserted with respect thereto;

                    (f) Hazard and Flood Insurance. All buildings upon the Mortgaged Property are insured
by an insurer acceptable to an Agency against loss by fire, hazards of extended coverage and such
other hazards as are customary in the area where the Mortgaged Property is located, and such
insurer is licensed to do business in the state where the Mortgaged Property is located. All such
insurance policies contain a standard mortgagee clause naming Countrywide, its successors and
assigns as mortgagee, and all premiums thereon have been paid. If, upon the origination of the
Mortgage Loan, the Mortgaged Property was, or was subsequently deemed to be, in an area identified
in the Federal Register by the Federal Emergency Management Agency as having special flood hazards
(and such flood insurance has been made available), a flood insurance policy that meets the
requirements of the current guidelines of the Federal Insurance Administration (or any successor
thereto) and conforms to the requirements of an Agency is in effect. The Mortgage obligates the
Mortgagor thereunder to maintain all such insurance at the Mortgagor’s expense and, upon the
failure of the Mortgagor to do so, the holder of the Mortgage is authorized to maintain such
insurance at the Mortgagor’s expense and to seek reimbursement therefor from the Mortgagor;

                    (g) Compliance with Applicable Law. Each Mortgage Loan at the time of origination
complied in all material respects with applicable state and federal laws including truth in
lending, real estate settlement procedures, consumer credit protection, equal credit opportunity
and disclosure laws applicable to the Mortgage Loan;

                    (h) No Release of Mortgage. The Mortgage has not been satisfied, canceled,
subordinated, or rescinded, in whole or in part, and the Mortgaged Property has not been released
from the lien of the Mortgage, in whole or in part, nor has any instrument been executed that would
effect any such release, cancellation, subordination or rescission;

                    (i) Enforceability of Mortgage Documents. The Mortgage Note and the related Mortgage
are genuine and each is the legal, valid and binding obligation of the maker thereof, enforceable
in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy,
insolvency, reorganization or similar laws;

                    (j) Validity of Mortgage. The Mortgage is a valid, existing and enforceable first
lien on the Mortgaged Property, including all improvements on the Mortgaged Property, subject only
to (i) the lien of current real property taxes and assessments not yet due and payable; (ii)
covenants, conditions and restrictions, rights of way, easements and other matters of public record
as of the date of recording that are acceptable to mortgage lending institutions generally and
specifically referred to in lender’s title insurance policy delivered to the originator of the
Mortgage Loan and that do not adversely affect the Appraised Value (as evidenced by an appraisal
referred to in such definition) of the Mortgaged Property; and (iii) other matters to which like
properties are commonly subject that do not materially interfere with the benefits of the security
intended to be provided by the Mortgage or the use, enjoyment, value or marketability of the
related Mortgaged Property;

                    (k) Binding Obligation. The Mortgage Note and the related Mortgage are genuine and
each is the legal, valid and binding obligation of the maker thereof, enforceable in accordance
with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, or
reorganization;

                    (l) Legal Capacity. To the best of Countrywide’s knowledge after reasonable inquiry
and investigation, all parties to the Mortgage Note and the Mortgage had legal capacity to enter
into the Mortgage Loan and to execute and deliver the Mortgage Note and the Mortgage, and the
Mortgage Note and the Mortgage have been duly and properly executed by such parties;

                    (m) Disbursements of Proceeds. The proceeds of the Mortgage Loan have been fully
disbursed, and there is no requirement for future advances thereunder, and any and all requirements
as to completion of any on-site or off-site improvement and as to disbursements of any escrow funds
therefor have been complied with. All costs, fees and expenses incurred in making or closing the
Mortgage Loan and recording the Mortgage were paid, and the Mortgagor is not entitled to any refund
of any amounts paid or due under the Mortgage Note or Mortgage;

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                    (n) Sole Owner. Countrywide is the sole owner and holder of the Mortgage Loan. The
Mortgage Loan is not assigned or pledged, and Countrywide has good and marketable title thereto,
and has full right to transfer and sell the Mortgage Loan to Purchaser free and clear of any
encumbrance, equity, lien, pledge, charge, claim or security interest not specifically set forth in
the related Mortgage Loan Schedule and has full right and authority subject to no interest or
participation of, or agreement with, any other party, to sell and assign each Mortgage Loan
pursuant to the terms of this Agreement;

                    (o) Interested Parties. To the best of Countrywide’s knowledge after reasonable
inquiry and investigation, all parties that have had any interest in the Mortgage, whether as
mortgagee, assignee, pledgee or otherwise, are (or, during the period in which they held and
disposed of such interest, were) (a) in compliance with any and all applicable licensing
requirements of the laws of the state wherein the Mortgage Property is located, and (b)(i)
organized under the laws of such state,

                    (p) Title Insurance. Each Mortgage Loan secured by a first priority Mortgage is
covered by an ALTA lender’s title insurance policy acceptable to an Agency, issued by a title
insurer acceptable to an Agency and qualified to do business in the jurisdiction where the
Mortgaged Property is located, insuring (subject to the exceptions contained in Section 3.02(j)(i),
(ii) and (iii) above) Countrywide, its successors and assigns as to the first priority lien of the
Mortgage, as applicable. Additionally, such lender’s title insurance policy affirmatively insures
ingress and egress, and against encroachments by or upon the Mortgaged Property or any interest
therein. Countrywide is the sole insured of such lender’s title insurance policy, and such
lender’s title insurance policy is in full force and effect and will be in full force and effect
upon the consummation of the transactions contemplated by this Agreement. No claims have been made
under such lender’s title insurance policy, and no prior holder of the related Mortgage, including
Countrywide, has done, by act or omission, anything which would impair the coverage of such
lender’s title insurance policy;

                    (q) No Default. There is no default, breach, violation or event of acceleration
existing under the Mortgage or the Mortgage Note and no event which, with the passage of time or
with notice and the expiration of any grace or cure period, would constitute a default, breach,
violation or event of acceleration, and Countrywide has not waived any default, breach, violation
or event of acceleration;

                    (r) No Mechanics’ Liens. There are no mechanics’ or similar liens or claims which
have been filed for work, labor or material (and no rights are outstanding that under law could
give rise to such lien) affecting the related Mortgaged Property which are or may be liens prior
to, or equal or coordinate with, the lien of the related Mortgage;

                    (s) Improvements. To the best of Countrywide’s knowledge after reasonable inquiry and
investigation, all improvements which were considered in determining the Appraised Value of the
related Mortgage Property lay wholly within the boundaries and building restriction lines of the
Mortgaged Property, and no improvements on adjoining properties encroach upon the Mortgaged
Property;

                    (t) The Mortgage Loan was originated by Countrywide or by a FNMA approved or FHLMC approved
mortgage banker (which mortgage banker is a mortgagee approved by HUD), or savings and loan
association, a savings bank, a commercial bank or similar banking institution that is supervised
and examined by a federal or state authority, or by another mortgagee approved by the Secretary of
HUD.

                    (u) Origination and Collection Practices. The origination and collection practices
used by Countrywide with respect to each Mortgage Note and Mortgage have been in all respects
legal, proper, prudent and customary in the mortgage origination and servicing business. With
respect to escrow deposits and Escrow Payments, if any, all such payments are in the possession of,
or under the control of, Countrywide and there exist no deficiencies in connection therewith for
which customary arrangements for repayment thereof have not been made. No escrow deposits or
Escrow Payments or other charges or payments due Countrywide have been capitalized under any
Mortgage or the related Mortgage Note. With respect to Adjustable Rate Mortgage Loans, all
Mortgage Interest Rate adjustments have been made in strict compliance with state and federal law
and the terms of the related Mortgage Note. Any interest required to be paid pursuant to state and
local law has been properly paid and credited;

                    (v) No Condemnation or Damage. To the best of Countrywide’s knowledge, the Mortgaged
Property is free of material damage and waste by fire, earthquake or earth movement,

13

 

windstorm,
flood, tornado, or other casualty and there is no proceeding pending for the total or partial
condemnation thereof;

                    (w) Customary and Enforceable Provisions. The Mortgage contains customary and
enforceable provisions such as to render the rights and remedies of the holder thereof adequate for
the realization against the Mortgaged Property of the benefits of the security provided thereby
including (a) in the case of a Mortgage designated as a deed of trust, by trustee’s sale, and (b)
otherwise by judicial foreclosure. There is no other exemption available to the Mortgagor which
would interfere with the right to sell the Mortgaged Property at a trustee’s sale or the right to
foreclose the Mortgage. The Mortgagor has not notified Countrywide and Countrywide has no
knowledge of any relief requested or allowed to the Mortgagor under the Soldiers and Sailors Civil
Relief Act of 1940;

                    (x) Collateral. The Mortgage Note is not and has not been secured by any collateral
except the lien of the corresponding Mortgage and the security interest of any applicable security
agreement or chattel mortgage referred to in Section 3.02(i) above;

                    (y) Appraisal. Unless the Mortgage Loan was underwritten pursuant to one of
Countrywide’s streamline documentation programs, the Credit File contains an appraisal of the
related Mortgaged Property signed prior to the approval of the Mortgage Loan application by an
appraiser who meets the minimum requisite qualifications of an Agency for appraisers, duly
appointed by the originator, that had no interest, direct or indirect in the Mortgaged Property,
and whose compensation is not affected by the approval or disapproval of the Mortgage Loan; the
appraisal is in a form acceptable to an Agency, with such riders as are acceptable to such Agency;

                    (z) Trustee for Deed of Trust. In the event the Mortgage constitutes a deed of trust,
a trustee, duly qualified under applicable law to serve as such, has been properly designated and
currently so serves and is named in the Mortgage, and no fees or expenses are or will become
payable by Purchaser to the trustee under the deed of trust, except in connection with a trustee’s
sale after default by the Mortgagor;

                    (aa) Private Mortgage Insurance. Each Mortgage Loan with an LTV at origination in
excess of 80% is and will be subject to a PMI Policy, which provides coverage in an amount at least
equal to that which would be required by FNMA. All provisions of such PMI Policy have been and are
being complied with, such policy is in full force and effect, and all premiums due thereunder have
been paid. Any Mortgage subject to any such PMI Policy obligates the Mortgagor thereunder to
maintain such insurance and to pay all premiums and charges in connection therewith or, in the case
of a lender paid mortgage insurance policy, the premiums and charges are included in the Mortgage
Interest Rate for the Mortgage Loan;

                    (bb) Lawfully Occupied. To the best of Countrywide’s knowledge, the Mortgaged
Property is lawfully occupied under applicable law. To the best of Countrywide’s knowledge, all
inspections, licenses and certificates required to be made or issued with respect to all occupied
portions of the Mortgaged Property and, with respect to the use and occupancy of the same including
certificates of occupancy, have been made or obtained from the appropriate authorities;

                    (cc) No Action Resulting in Exclusion of Coverage. No action has been taken or
failed to be taken, no event has occurred and no state of facts exists or has existed on or prior
to the Closing Date (whether or not known to Countrywide on or prior to such date) which has
resulted or will result in an exclusion from, denial of, or defense to coverage under any private
mortgage insurance (including, without limitation, any exclusions, denials or defenses which would
limit or reduce the availability of the timely payment of the full amount of the loss otherwise due
thereunder to the insured) whether arising out of actions, representations, errors, omissions,
negligence, or fraud of Countrywide, the related Mortgagor or any party involved in the application
for such coverage, including the appraisal, plans and specifications and other exhibits or
documents submitted therewith to the insurer under such insurance policy, or for any other reason
under such coverage, but not including the failure of such insurer to pay by reason of such
insurer’s breach of such insurance policy or such insurer’s financial inability to pay;

14

 

                    (dd) Assignment of Mortgage. Except for the absence of recording information, the
Assignment of Mortgage is in recordable form and is acceptable for recording under the laws of the
jurisdiction in which the Mortgaged Property is located;

                    (ee) Consolidation of Future Advances. Any future advances made to the Mortgagor
prior to the Cut-off Date have been consolidated with the outstanding principal amount secured by
the Mortgage, and the secured principal amount, as consolidated, bears a single interest rate and
single repayment term. The consolidated principal amount does not exceed the original principal
amount of the Mortgage Loan; and

                    (ff) Form of Mortgage Note and Mortgage. The Mortgage Note and Mortgage are on forms
acceptable to an Agency;

                    (gg) Mortgaged Property. The Mortgaged Property is located in the state indicated on
the Mortgage Loan Schedule, and consists of a single parcel of real property with a detached single
family residence erected thereon, or an individual residential condominium unit, or a 2-4 family
dwelling or an individual residential unit in a planned unit development as defined by FNMA, none
of which is a mobile home or a manufactured dwelling;

                    (hh) Relevant Circumstances. Countrywide has no knowledge of any circumstances or
conditions with respect to the Mortgage, the Mortgaged Property, the Mortgagor of the Mortgagor’s
credit standing that can reasonably be expected to cause the Mortgage Loan to be an unacceptable
investment, cause the Mortgage Loan to become delinquent, or adversely affect the value of the
Mortgage Loan;

                    (ii) No Fraud. No fraud, error, omission, misrepresentation, negligence or similar
occurrence with respect to a Mortgage Loan has taken place on the part of any Person, including
without limitation, the Mortgagor, any appraiser, any builder or developer, or any other party
involved in the origination of the Mortgage Loan;

                    (jj) Buydown Provisions. No Mortgage Loan contains a permanent “buydown” provision.
No Adjustable Rate Mortgage Loan contains a temporary “buydown” provision. With respect to any
Fixed Rate Mortgage Loan which contains a temporary “buydown” provision, the value of such buydown
funds does not exceed 6% of the Appraised Value of the Mortgaged Property securing such Mortgage
Loan. The Mortgage Loan is not a graduated payment mortgage loan and the Mortgage Loan does not
have a shared appreciation or other contingent interest feature;

                    (kk) Soldiers’ and Sailors’ Relief Act. The Mortgagor has not notified Countrywide
and Countrywide has no knowledge of any relief requested or allowed to the Mortgagor under the
Soldiers’ and Sailors’ Civil Relief Act of 1940;

                    (ll) Disclosure Statements. With respect to an Adjustable Rate Mortgage Loan, the
Mortgagor has executed one or more statements to the effect that the Mortgagor has received all
disclosure materials required by applicable law with respect to the making of an Adjustable Rate
Mortgage Loan. Countrywide shall maintain all such statements in the Credit File;

                    (mm) Construction or Rehabilitation of Mortgaged Property. No Mortgage Loan was made
in connection with the construction or rehabilitation of a Mortgaged Property;

                    (nn) Due on Sale. The Mortgage contains an enforceable provision for the acceleration
of the payment of the unpaid principal balance of the Mortgage Loan in the event that the Mortgaged
Property is sold or transferred without the prior written consent of the mortgagee thereunder;

                    (oo) Condominiums and Planned Unit Developments. With respect to each Mortgage Loan
eligible for sale to FNMA or FHLMC, if the Mortgaged Property is a condominium unit or a planned
unit development (other than a de minimis planned unit development) such condominium or planned
unit development project meets the eligibility requirements for FNMA or FHLMC; and

                    (pp) Leasehold Estates. Each Mortgage Loan that is secured by a leasehold interest
conforms to the FNMA requirements for mortgage loans secured by leasehold estates.

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               Section 3.03 Remedies for Breach of Representations and Warranties.

                    (a) Notice of Breach. The representations and warranties set forth in Sections 3.01
and 3.02 of this Agreement and in the related Purchase Confirmation shall survive the sale of the
Mortgage Loans to Purchaser and shall inure to the benefit of Purchaser, notwithstanding any
restrictive or qualified endorsement on any Mortgage Note or Assignment of Mortgage or the
examination or failure to examine any Collateral Documents or Credit File. With respect to the
representations and warranties contained in Section 3.02 that are made to the best of Countrywide’s
knowledge after reasonable inquiry and investigation, if it is discovered by either Countrywide or
Purchaser that the substance of such representation and warranty is inaccurate and such inaccuracy
materially and adversely affects the value of the related Mortgage Loan, Purchaser shall be
entitled to all the remedies to which it would be entitled for a breach of representation or
warranty, including, without limitation, the repurchase requirements contained herein,
notwithstanding Countrywide’s lack of knowledge with respect to the inaccuracy at the time the
representation or warranty was made. Upon discovery by either Countrywide or Purchaser of a breach
of any of the foregoing representations and warranties that materially and adversely affects the
value of one or more of the related Mortgage Loans, the party discovering such breach shall give
prompt written notice to the other.

     (b) Cure. Within sixty (60) days from the earlier of either discovery by or notice to
Countrywide of a breach of a representation or warranty that materially and adversely affects the
value of a Mortgage Loan or the Mortgage Loans, Countrywide shall use its best efforts to cure such
breach in all material respects, and, if such breach cannot be cured, Countrywide shall, at
Purchaser’s option, repurchase such Mortgage Loan at the Repurchase Price. In the event that a
breach shall involve any representation or warranty set forth in Section 3.01 and such breach
cannot be cured within sixty (60) days of the earlier of either discovery by or notice to
Countrywide of such breach, all of the Mortgage Loans shall, at Purchaser’s option, be repurchased
by Countrywide at the Repurchase Price.

     (c) Repurchase. If the breach shall involve a representation or warranty set forth
in Section 3.02, Countrywide may, rather than repurchase the Mortgage Loan as provided above,
remove such Mortgage Loan and substitute in its place a Qualified Substitute Mortgage Loan or
Loans. If Countrywide has no Qualified Substitute Mortgage Loan, it shall repurchase the deficient
Mortgage Loan. Any repurchase of a Mortgage Loan(s) pursuant to the provisions of this Section
3.03 shall be accomplished by deposit in the Custodial Account of the amount of the Repurchase
Price for distribution to Purchaser on the next scheduled Remittance Date, after deducting
therefrom any amount received in respect of such repurchased Mortgage Loan or Loans and being held
in the Custodial Account for future distribution. At the time of repurchase or substitution,
Purchaser and Countrywide shall arrange for the reassignment of such Mortgage Loan and release of
the related Collateral File to Countrywide and the delivery to Countrywide of any documents held by
Purchaser or its designee relating to such Mortgage
Loan. In the event Countrywide determines to substitute a Qualified Substitute Mortgage Loan for a
repurchased Mortgage Loan, Countrywide shall, simultaneously with such reassignment, give written
notice to Purchaser that substitution has taken place and identify the Qualified Substitute
Mortgage Loan(s). In connection with any such substitution, Countrywide shall be deemed to have
made as to such Qualified Substitute Mortgage Loan(s) the representations and warranties except
that all such representations and warranties set forth in this Agreement shall be deemed made as of
the date of such substitution. Countrywide shall effect such substitution by delivering to
Purchaser the Collateral Documents for such Qualified Substitute Mortgage Loan(s). Countrywide
shall deposit in the Custodial Account the Monthly Payment less the Servicing Fee due on such
Qualified Substitute Mortgage Loan(s) in the month following the date of such substitution.
Monthly Payments due with respect to Qualified Substitute Mortgage Loans in the month of
substitution shall be retained by Countrywide. For the month of substitution, distributions to
Purchaser shall include the Monthly Payment due on any repurchased Mortgage Loan in the month of
substitution, and Countrywide shall thereafter be entitled to retain all amounts subsequently
received by Countrywide in respect of such repurchased Mortgage Loan.

               For any month in which Countrywide substitutes a Qualified Substitute Mortgage Loan for a
repurchased Mortgage Loan, Countrywide shall determine the amount (if any) by which the aggregate
principal balance of all Qualified Substitute Mortgage Loans as of the date of substitution is less
than the aggregate Stated Principal Balance of all repurchased Mortgage Loans (after application of
scheduled principal payments due in the month of substitution). The amount of such shortfall shall
be distributed by

16

 

Countrywide in the month of substitution pursuant to Section 5.01. Accordingly,
on the date of such substitution, Countrywide shall deposit from its own funds into the Custodial
Account an amount equal to the amount of such shortfall.

                    (d) Indemnification. In addition to its repurchase and substitution obligations,
Countrywide shall indemnify Purchaser and hold it harmless against any losses, damages, penalties,
fines, forfeitures, reasonable and necessary legal fees and related costs, judgments, and other
costs and expenses resulting from any claim, demand, defense or assertion based on or grounded
upon, or resulting from, a breach of Countrywide’s representations and warranties contained in
Sections 3.01 and 3.02 that materially and adversely affects the value of one or more of the
Mortgage Loans. The obligations of Countrywide set forth in this Section 3.03 to cure, substitute
for or repurchase a defective Mortgage Loan and to indemnify Purchaser as provided in this Section
3.03 constitute the sole remedies of Purchaser with respect to a breach of the foregoing
representations and warranties.

                    (e) Accrual of Cause of Action. Any cause of action against Countrywide relating to or
arising out of the breach of any representations and warranties made in Sections 3.01 or 3.02 shall
accrue as to any Mortgage Loan upon (i) discovery of such breach by Purchaser or notice thereof by
Countrywide to Purchaser, (ii) failure by Countrywide to cure such breach or repurchase such
Mortgage Loan as specified above, and (iii) demand upon Countrywide by Purchaser for compliance
with the relevant provisions of this Agreement.

               Section 3.04 Repurchase of Convertible Mortgage Loans. In the event a Mortgagor
exercises the option to convert a Convertible Mortgage Loan to a Fixed Rate Mortgage Loan in
accordance with the terms of the related Mortgage Note, Countrywide shall repurchase such
Convertible Mortgage Loan within thirty (30) days of such conversion taking effect at a price equal
to 100% of the unpaid principal balance of such Convertible Mortgage Loan at the time of such
conversion plus accrued interest thereon through the last day of the month of repurchase at the
Mortgage Loan Remittance Rate; provided, however, no interest shall be due and payable if a
Convertible Mortgage Loan is repurchased on the first day of a month. Any repurchase of a
Convertible Mortgage Loan(s) pursuant to the foregoing provisions of this Section 3.04 shall be
accomplished by deposit in the Custodial Account of the amount of said repurchase price for
distribution to Purchaser on the next scheduled Remittance Date.

               Section 3.05 Representations and Warranties Respecting Purchaser. Purchaser
represents, warrants and covenants to Countrywide that, as of each Closing Date:

                    (a) Organization and Standing. Purchaser is duly organized, validly existing and in
good standing under the laws of the jurisdiction in which it is organized and is qualified to
transact
business in and is in good standing under the laws of each state in which the nature of the
business transacted by it or the character of the properties owned or leased by it requires such
qualification;

                    (b) Due Authority. Purchaser has the full power and authority to perform, and to
enter into and consummate, all transactions contemplated by this Agreement; Purchaser has the full
power and authority to purchase and hold each Mortgage Loan;

                    (c) No Conflict. Neither the acquisition of the Mortgage Loans by Purchaser pursuant
to this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of
or compliance with the terms and conditions of this Agreement, will conflict with or result in a
breach of any of the terms, conditions or provisions of Purchaser’s charter or by-laws or result in
a material breach of any legal restriction or any material agreement or instrument to which the
Purchaser is now a party or by which it is bound, or constitute a material default or result in an
acceleration under any of the foregoing, or result in the violation of any material law, rule,
regulation, order, judgment or decree to which Purchaser or its property is subject;

                    (d) No Pending Litigation. There is no action, suit, proceeding, investigation or
litigation pending or, to the Purchaser’s knowledge, threatened, which either in any one instance
or in the aggregate, if determined adversely to Purchaser would adversely affect the purchase of
the Mortgage Loans by Purchaser hereunder, or Purchaser’s ability to perform its obligations under
this Agreement; and

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                    (e) No Consent Required. No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and performance by Purchaser of
or compliance by Purchaser with this Agreement or the consummation of the transactions contemplated
by this Agreement (including, but not limited to, any approval from HUD), or if required, such
consent, approval, authorization or order has been obtained prior to the related Closing Date.

ARTICLE IV

ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

               Section 4.01 Countrywide to Act as Servicer. Countrywide, as independent contract
servicer, shall service and administer Mortgage Loans sold pursuant to this Agreement in accordance
with the terms of this Agreement and shall have full power and authority, acting alone, to do or
cause to be done any and all things, in connection with such servicing and administration, that
Countrywide may deem necessary or desirable and consistent with the terms of this Agreement. In
servicing and administering the Mortgage Loans, Countrywide shall employ procedures in accordance
with the customary and usual standards of practice of prudent mortgage servicers.

               In accordance with the terms of this Agreement, Countrywide may waive, modify or vary any term
of any Mortgage Loan or consent to the postponement of strict compliance with any such term or in
any manner grant indulgence to any Mortgagor if in Countrywide’s reasonable and prudent
determination such waiver, modification, postponement or indulgence is not materially adverse to
Purchaser; provided, however, that Countrywide shall not permit any modification with respect to
any Mortgage Loan that would decrease the Mortgage Interest Rate (other than by adjustments
required by the terms of the Mortgage Note), result in the denial of coverage under a PMI Policy,
defer or forgive the payment of any principal or interest payments, reduce the outstanding
principal amount (except for actual payments of principal), make future advances or extend the
final maturity date on such Mortgage Loan without Purchaser’s consent. Countrywide may permit
forbearance or allow for suspension of Monthly Payments for up to one hundred and eighty (180) days
if the Mortgagor is in default or Countrywide determines in its reasonable discretion, that default
is imminent and if Countrywide determines that granting such forbearance or suspension is in the
best interest of Purchaser. If any modification, forbearance or suspension permitted hereunder
allows the deferral of interest or principal payments on any Mortgage Loan, Countrywide shall
include in each remittance for any month in which any such principal or interest payment has been
deferred (without giving effect to such modification, forbearance or suspension) an amount equal to
such month’s principal and one (1) month’s interest at the Mortgage Loan Remittance Rate on the
then unpaid principal balance of the Mortgage Loan and shall be
entitled to reimbursement for such advances only to the same extent as for Monthly Advances made
pursuant to Section 5.03. Without limiting the generality of the foregoing, Countrywide shall
continue, and is hereby authorized and empowered to execute and deliver on behalf of itself and
Purchaser, all instruments of satisfaction or cancellation, or of partial or full release,
discharge and all other comparable instruments, with respect to the Mortgage Loans and with respect
to the Mortgaged Property. If reasonably required by Countrywide, Purchaser shall furnish
Countrywide with any powers of attorney and other documents necessary or appropriate to enable
Countrywide to carry out its servicing and administrative duties under this Agreement.

               Section 4.02 Collection of Mortgage Loan Payments. Countrywide shall make reasonable
efforts, in accordance with the customary and usual standards of practice of prudent mortgage
servicers, to collect all payments due under each Mortgage Loan to the extent such procedures shall
be consistent with this Agreement, the terms and provisions of any related PMI Policy, MIC or LGC,
and applicable law.

               Section 4.03 Realization Upon Defaulted Mortgage Loans.

                    (a) Foreclosure. Countrywide shall use reasonable efforts to foreclose upon or
otherwise comparably convert the ownership of properties securing such of the Mortgage Loans as
come into and continue in default and as to which no satisfactory arrangements can be made for
collection of delinquent payments. Countrywide shall use reasonable efforts to realize upon
defaulted Mortgage Loans, in such manner as will maximize the receipt of principal and interest by
Purchaser, taking into

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account, among other things, the timing of foreclosure proceedings. The
foregoing is subject to the provisions that, in any case in which Mortgaged Property shall have
suffered damage, Countrywide shall not be required to expend its own funds toward the restoration
of such property unless it shall determine in its discretion (i) that such restoration will
increase the proceeds of liquidation of the related Mortgage Loan to Purchaser after reimbursement
to itself for such expenses, and (ii) that such expenses will be recoverable by Countrywide through
PMI Proceeds, Other Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property.
Countrywide shall notify Purchaser in writing of the commencement of foreclosure proceedings. Such
notice may be contained in the reports prepared by Countrywide and delivered to Purchaser pursuant
to the terms and conditions of this Agreement. Countrywide shall be responsible for all costs and
expenses incurred by it in any foreclosure proceedings; provided, however, that it shall be
entitled to reimbursement thereof from proceeds from the related Mortgaged Property.

                    (b) Option to Purchase. Countrywide, in its sole discretion, shall have the right to
purchase for its own account any Mortgage Loan that is ninety-one (91) days or more delinquent at a
price equal to (i) the Stated Principal Balance of the Mortgage Loan plus (ii) accrued interest on
such Stated Principal Balance at the Mortgage Loan Remittance Rate from the date to which interest
has last been paid and distributed to Purchaser to the date of purchase; provided, however, that
Countrywide shall not be entitled to exercise such purchase if the delinquency is caused directly
or indirectly by an act or omission of Countrywide which would constitute a breach or violation of
its obligations hereunder. Any such purchase by Countrywide shall be accomplished by depositing in
the Custodial Account the amount of the purchase price stated in the preceding sentence, after
deducting therefrom any amounts received in respect of such purchased Mortgage Loan and being held
in the Custodial Account for future distribution.

               Section 4.04 Establishment of Custodial Accounts; Deposits in Custodial Accounts.
Countrywide shall segregate and hold all funds collected and received pursuant to each Mortgage
Loan separate and apart from any of its own funds and general assets and shall establish and
maintain one (1) or more Custodial Accounts, in the form of time deposit or demand accounts.
Countrywide shall provide Purchaser with written evidence of the creation of such Custodial
Account(s) upon the request of Purchaser.

               Countrywide shall deposit in the Custodial Account on a daily basis, and retain therein, the
following payments and collections received or made by it subsequent to the Cut-off Date, or
received by it prior to the Cut-off Date but allocable to a period subsequent thereto, other than
in respect of principal and interest on the Mortgage Loans due on or before the Cut-off Date:

                    (a) all payments on account of principal, including Principal Prepayments, on the Mortgage
Loans;

                    (b) all payments on account of interest on the Mortgage Loans, adjusted to the Mortgage Loan
Remittance Rate;

                    (c) all proceeds from a Cash Liquidation;

                    (d) all PMI Proceeds and Other Insurance Proceeds, including amounts required to be deposited
pursuant to Sections 4.08, 4.10 and 4.11, other than proceeds to be applied to the restoration or
repair of the Mortgaged Property or released to the Mortgagor in accordance with Countrywide’s
normal servicing procedures, the loan documents or applicable law;

                    (e) all Condemnation Proceeds affecting any Mortgaged Property that are not released to the
Mortgagor in accordance with Countrywide’s normal servicing procedures, the loan documents or
applicable law;

                    (f) all Monthly Advances;

                    (g) all proceeds of any Mortgage Loan repurchased in accordance with Section 3.03 or 3.04, and
any amount required to be deposited by Countrywide in connection with any shortfall in principal
amount of the Qualified Substitute Mortgage Loans and the repurchased Mortgage Loans as required
pursuant to Section 3.03;

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                    (h) any amounts required to be deposited by Countrywide pursuant to Section 4.10 in connection
with the deductible clause in any blanket hazard insurance policy (such deposit shall be made from
Countrywide’s own funds, without reimbursement therefor);

                    (i) the Prepayment Interest Shortfall Amount, if any, for the month of distribution (such
deposit shall be made from Countrywide’s own funds, without reimbursement therefor up to a maximum
amount per month equal to the aggregate Servicing Fee actually received for such month for the
Mortgage Loans); and

                    (j) any amounts required to be deposited by Countrywide in connection with any REO Property
pursuant to Section 4.13.

                    The foregoing requirements for deposit in the Custodial Account are exclusive. Purchaser
understands and agrees that, without limiting the generality of the foregoing, payments in the
nature of late payment charges, prepayment penalties and assumption fees (to the extent permitted
by Section 4.16) need not be deposited by Countrywide in the Custodial Account. Any interest paid
by the depository institution on funds deposited in the Custodial Account shall accrue to the
benefit of Countrywide and Countrywide shall be entitled to retain and withdraw such interest from
the Custodial Account pursuant to Section 4.05(d).

               Section 4.05 Permitted Withdrawals From the Custodial Account. Countrywide may, from
time to time, withdraw funds from the Custodial Account for the following purposes:

                    (a) to make payments to Purchaser in the amounts and in the manner provided for in Section
5.01;

                    (b) to reimburse itself for Monthly Advances (Countrywide’s reimbursement for Monthly Advances
shall be limited to amounts received on the related Mortgage Loan (or to amounts received on the
Mortgage Loans as a whole if the Monthly Advance is made due to a shortfall in a Monthly Payment
made by a Mortgagor entitled to relief under the Soldiers’ and Sailors’ Civil Relief Act of 1940)
which represent Late Collections, net of the related Servicing Fee and LPMI Fee, if applicable.
Countrywide’s right to reimbursement hereunder shall be prior to the rights of Purchaser, except
that, where Countrywide is required to repurchase a Mortgage Loan pursuant to Section 3.03 or 3.04,
Countrywide’s right to such reimbursement shall be subsequent to the payment to Purchaser of the
repurchase price and all other amounts required to be paid to Purchaser with respect to such
Mortgage Loans. Notwithstanding the foregoing, Countrywide may reimburse itself for Monthly Advances from
any funds in the Custodial Account if it has determined that such funds are nonrecoverable advances
or if all funds, with respect to the related Mortgage Loan, have previously been remitted to
Purchaser);

                    (c) to reimburse itself for unreimbursed Servicing Advances and any unpaid Servicing Fees
(Countrywide’s reimbursement for Servicing Advances and/or Servicing Fees hereunder with respect to
any Mortgage Loan shall be limited to proceeds from Cash Liquidation, Liquidation Proceeds,
Condemnation Proceeds, PMI Proceeds and Other Insurance Proceeds; provided, however, that
Countrywide may reimburse itself for Servicing Advances and Servicing Fees from any funds in the
Custodial Account if all funds, with respect to the related Mortgage Loan, have previously been
remitted to Purchaser;

                    (d) to pay to itself as servicing compensation (i) any interest earned on funds in the
Custodial Account (all such interest to be withdrawn monthly not later than each Remittance Date),
and (ii) the Servicing Fee and the LPMI Fee, if applicable, from that portion of any payment or
recovery of interest on a particular Mortgage Loan;

                    (e) to pay to itself, with respect to each Mortgage Loan that has been repurchased pursuant to
Section 3.03 or 3.04, all amounts received but not distributed as of the date on which the related
repurchase price is determined;

                    (f) to reimburse itself for any amounts deposited in the Custodial Account in error; and

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                    (g) to clear and terminate the Custodial Account upon the termination of this Agreement.

               Section 4.06 Establishment of Escrow Accounts; Deposits in Escrow Accounts.
Countrywide shall segregate and hold all funds collected and received pursuant to each Mortgage
Loan which constitute Escrow Payments separate and apart from any of its own funds and general
assets and shall establish and maintain one (1) or more Escrow Accounts in the form of time deposit
or demand accounts, which accounts shall be Eligible Accounts. Countrywide shall provide Purchaser
with written evidence of the creation of such Escrow Account(s) upon the request of Purchaser.

               Countrywide shall deposit in the Escrow Account(s) on a daily basis, and retain therein, (a)
all Escrow Payments collected on account of the Mortgage Loans, and (b) all Other Insurance
Proceeds that are to be applied to the restoration or repair of any Mortgaged Property.
Countrywide shall make withdrawals therefrom only to effect such payments as are required under
this Agreement, and for such other purposes in accordance with Section 4.07. Countrywide shall be
entitled to retain any interest paid by the depository institution on funds deposited in the Escrow
Account except interest on escrowed funds required by law to be paid to the Mortgagor. Countrywide
shall pay Mortgagor interest on the escrowed funds at the rate required by law notwithstanding that
the Escrow Account is non-interest bearing or the interest paid by the depository institution
thereon is insufficient to pay the Mortgagor interest at the rate required by law.

               Section 4.07 Permitted Withdrawals From Escrow Account. Countrywide may, from time to
time, withdraw funds from the Escrow Account(s) for the following purposes: (a) to effect timely
payments of ground rents, taxes, assessments, water rates, mortgage insurance premiums, PMI Policy
premiums, if applicable, and comparable items; (b) to reimburse Countrywide for any Servicing
Advance made by Countrywide with respect to a related Mortgage Loan; provided, however, that such
reimbursement shall only be made from amounts received on the related Mortgage Loan that represent
late payments or collections of Escrow Payments thereunder; (c) to refund to the Mortgagor any
funds as may be determined to be overages; (d) for transfer to the Custodial Account in accordance
with the terms of this Agreement; (e) for application to restoration or repair of the Mortgaged
Property; (f) to pay to Countrywide, or to the Mortgagors to the extent required by law, any
interest paid on the funds deposited in the Escrow Account; (g) to reimburse itself for any amounts
deposited in the Escrow Account in error; or (h) to clear and terminate the Escrow Account on the
termination of this Agreement.

               Section 4.08 Transfer of Accounts. Countrywide may transfer the Custodial Account or
the Escrow Account to a different depository institution from time to time provided that such
Custodial Account and Escrow Account shall at all times be Eligible Accounts.

               Section 4.09 Payment of Taxes, Insurance and Other Charges; Maintenance of PMI Policies;
Collections Thereunder. With respect to each Mortgage Loan, Countrywide shall maintain
accurate records reflecting the status of (a) ground rents, taxes, assessments, water rates and
other charges that are or may become a lien upon the Mortgaged Property; (b) primary mortgage
insurance premiums; and (c) fire and hazard insurance premiums. Countrywide shall obtain, from time
to time, all bills for the payment of such charges, including renewal premiums, and shall effect
payment thereof prior to the applicable penalty or termination date and at a time appropriate for
securing maximum discounts allowable using Escrow Payments which shall have been estimated and
accumulated by Countrywide in amounts sufficient for such purposes. To the extent that the Mortgage
does not provide for Escrow Payments, Countrywide shall determine that any such payments are made
by the Mortgagor at the time they first become due. Countrywide assumes full responsibility for
the timely payment of all such bills and shall effect timely payments of all such bills,
irrespective of the Mortgagor’s faithful performance in the payment of same or the making of the
Escrow Payments, and shall make advances from its own funds to effect such payments.

               Countrywide will maintain in full force and effect, a PMI Policy conforming in all respects to
the description set forth in Section 3.02(v), issued by an insurer described in that Section, with
respect to each Mortgage Loan for which such coverage is herein required. Such coverage will be
maintained until the LTV or the Updated LTV of the related Mortgage Loan is reduced to 80% or less
in the case of a Mortgage Loan having a LTV at origination in excess of 80%. Countrywide will not
cancel or refuse to renew any PMI Policy in effect on the Closing Date that is required to be kept
in force under this

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Agreement unless a replacement PMI Policy is obtained from and maintained with
an insurer that is approved by an Agency. Countrywide shall not take any action that would result
in non-coverage under any applicable PMI Policy of any loss that, but for the actions of
Countrywide, would have been covered thereunder. In connection with any assumption or substitution
agreement entered into or to be entered into pursuant to Section 4.16, Countrywide shall promptly
notify the insurer under the related PMI Policy, if any, of such assumption or substitution of
liability in accordance with the terms of such policy and shall take all actions that may be
required by such insurer as a condition to the continuation of coverage under the PMI Policy. If
such PMI Policy is terminated as a result of such assumption or substitution of liability,
Countrywide shall obtain a replacement PMI Policy as provided above.

               Unless otherwise provided in the related Purchase Confirmation, no Mortgage Loan has in effect
as of the Closing Date any mortgage pool insurance policy or other credit enhancement,
except for any PMI Policy, MIC or LGC and the insurance or guarantee relating thereto, as
applicable (excluding such exception, the “Credit Enhancement”), and Countrywide shall not be
required to take into consideration the existence of any such Credit Enhancement for the purposes
of performing its servicing obligations hereunder. If Purchaser shall at any time after the
related Closing Date notify Countrywide in writing of its desire to obtain any such Credit
Enhancement, Purchaser and Countrywide shall thereafter negotiate in good faith for the procurement
and servicing of such Credit Enhancement.

               Section 4.10 Maintenance of Hazard Insurance. Countrywide shall cause to be
maintained, for each Mortgage Loan, fire and hazard insurance with extended coverage as is
customary in the area where the Mortgaged Property is located in an amount that is equal to the
lesser of (a) the maximum insurable value of the improvements securing such Mortgage Loan or (b)
the greater of (i) the unpaid principal balance of the Mortgage Loan, and (ii) the percentage such
that the proceeds thereof shall be sufficient to prevent the Mortgagor and/or the Mortgagee from
becoming a co-insurer. If the Mortgaged Property is in an area identified in the Federal Register
by the Flood Emergency Management Agency as having special flood hazards and such flood insurance
has been made available, Countrywide shall cause to be maintained a flood insurance policy meeting
the requirements of the current guidelines of the National Flood Insurance Administration program
(or any successor thereto) with a generally acceptable insurance carrier and with coverage in an
amount not less than the lesser of (x) the unpaid principal balance of the Mortgage Loan; (y) the
maximum insurable value of the improvements securing such Mortgage Loan; or (z) the maximum amount
of insurance which is available under the National Flood Insurance Reform Act of 1994. Countrywide
shall also maintain on REO Property, (1) fire and hazard insurance with extended coverage in an
amount that is not less than the maximum insurable
value of the improvements that are a part of such property; (2) liability insurance; and (3) to the
extent required and available under the National Flood Insurance Reform Act of 1994, flood
insurance in an amount as provided above. Countrywide shall deposit in the Custodial Account all
amounts collected under any such policies except (A) amounts to be deposited in the Escrow Account
and applied to the restoration or repair of the Mortgaged Property or REO Property and (B) amounts
to be released to the Mortgagor in accordance with Countrywide’s normal servicing procedures.
Purchaser understands and agrees that no earthquake or other additional insurance on property
acquired in respect of the Mortgage Loan shall be maintained by Countrywide or Mortgagor. All such
policies shall be endorsed with standard mortgagee clauses with loss payable to Countrywide and
shall provide for at least thirty (30) days prior written notice to Countrywide of any
cancellation, reduction in the amount of coverage or material change in coverage. Countrywide shall
not interfere with the Mortgagor’s freedom of choice in selecting either the insurance carrier or
agent; provided, however, that Countrywide shall only accept insurance policies from insurance
companies acceptable to an Agency and licensed to do business in the state wherein the property
subject to the policy is located.

               Section 4.11 Maintenance of Mortgage Impairment Insurance. If Countrywide obtains
and maintains a blanket policy insuring against hazard losses on all of the Mortgage Loans issued
by an issuer that has a Best rating of A:V, then, to the extent such policy provides coverage in an
amount equal to the amount required pursuant to Section 4.10 and otherwise complies with all other
requirements of Section 4.10, Countrywide shall conclusively be deemed to have satisfied its
obligations as set forth in Section 4.10. If such blanket policy contains a deductible clause and
there shall not have been maintained on the related Mortgaged Property or REO Property an
additional individual policy complying with Section 4.10, upon the occurrence of a loss that would
have been covered by such individual policy, Countrywide shall deposit in the Custodial Account the
amount not otherwise payable under the blanket policy because of such deductible clause. In
connection with its activities as servicer of the Mortgage

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Loans, Countrywide agrees to prepare and
present, on behalf of Purchaser, claims under any such blanket policy in a timely fashion in
accordance with the terms of such policy.

               Section 4.12 Fidelity Bond; Errors and Omissions Insurance. If required by the
Agencies, Countrywide shall maintain, at its own expense, a blanket Fidelity Bond and an errors and
omissions insurance policy with responsible companies, with broad coverage of all officers,
employees or other persons acting in any capacity with regard to the Mortgage Loan who handle
funds, money, documents or papers relating to the Mortgage Loan. The Fidelity Bond and errors and
omissions insurance shall be in the form of the Mortgage Banker’s Blanket Bond and shall protect
and insure Countrywide against losses, including forgery, theft, embezzlement, fraud, errors and
omissions and negligent acts of its officers, employees and agents. Such Fidelity Bond shall also
protect and insure Countrywide against losses in connection with the failure to maintain any
insurance policies required pursuant to this Agreement and the release or satisfaction of a
Mortgage Loan without having obtained payment in full of the indebtedness secured thereby. No
provision of this Section 4.12 shall diminish or relieve Countrywide from its duties and
obligations as set forth in this Agreement. The minimum coverage under any such Fidelity Bond and
errors and omissions insurance policy shall be at least equal to the corresponding amounts required
by an Agency for an approved seller/servicer.

               Section 4.13 Title, Management and Disposition of REO Property.

                    (a) Title. In the event that title to the Mortgaged Property is acquired in
foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale shall be taken in
the name of Countrywide for the benefit of Purchaser, or in the event Purchaser is not authorized
or permitted to hold title to real property in the state where the REO Property is located, or
would be adversely affected under the “doing business” or tax laws of such state by so holding
title, the deed or certificate of sale shall be taken in the name of such Person(s) as shall be
consistent with an Opinion of Counsel obtained by Countrywide from an attorney duly licensed to
practice law in the state where to REO Property is located. Any Person(s) holding such title other
than Purchaser shall acknowledge in writing that such title is being held as nominee for the
benefit of Purchaser.

                    (b) Management. Countrywide shall either itself or through an agent selected by
Countrywide, manage, conserve, protect and operate each REO Property in the same manner that it
manages, conserves, protects and operates other foreclosed property for its own account.
Countrywide shall cause each REO Property to be inspected promptly upon the acquisition of title
thereto and shall
cause each REO Property to be inspected at least annually thereafter or more frequently as required
by the circumstances. Countrywide shall make or cause to be made a written report of each such
inspection. Such reports shall be retained in the Credit File and copies thereof shall be
forwarded by Countrywide to Purchaser within five (5) days of Purchaser’s request therefor.
Countrywide shall attempt to sell the REO Property (and may temporarily rent the same) on such
terms and conditions as Countrywide deems to be in the best interest of Purchaser; provided,
however, that Countrywide shall first obtain the prior consent of Purchaser before selling or
agreeing to sell or renting any REO Property. With respect to each REO Property, Countrywide shall
segregate and hold all funds collected and received in connection with the operation of the REO
Property separate and apart from its own funds or general assets and shall establish and maintain
an REO Account for the REO Properties in the form of a non-interest bearing demand account, unless
an Opinion of Counsel is obtained by Countrywide to the effect that the classification as a grantor
trust for federal income tax purposes of the arrangement under which the Mortgage Loans and the REO
Properties is held will not be adversely affected by holding such funds in another manner.
Countrywide shall deposit or cause to be deposited, on a daily basis, in the REO Account all
revenues received with respect to the REO Properties and shall withdraw therefrom funds necessary
for the proper operation, management and maintenance of the REO Properties, including the cost of
maintaining any hazard insurance pursuant to Section 4.10 hereof and the fees of any managing agent
acting on behalf of Countrywide. Countrywide shall not be entitled to retain interest paid or
other earnings, if any, on funds deposited in the REO Account. On or before each Determination
Date, Countrywide shall withdraw from the REO Account and deposit into the Custodial Account the
net income from the REO Properties on deposit in the REO Account. Notwithstanding anything
contained in this Agreement to the contrary, upon written notice to Countrywide, Purchaser may
elect to assume the management and control of any REO Property; provided, however, that prior to
giving effect to such election, the Purchaser shall reimburse Countrywide for all previously
unreimbursed or unpaid Monthly Advances, Servicing Advances and Servicing Fees.

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                    (c) Disposition. Countrywide shall use reasonable efforts to dispose of the REO
Property as soon as possible and shall sell such REO Property in any event within one (1) year
after title to such REO Property has been obtained, unless Countrywide determines, and gives an
appropriate notice to Purchaser, that a longer period is necessary for the orderly liquidation of
such REO Property. If a period longer than one (1) year is necessary to sell any REO Property,
Countrywide shall, if requested by Purchaser, report monthly to Purchaser as to the progress being
made in selling such REO Property.

                    Each REO Disposition shall be carried out by Countrywide at such price and upon such terms and
conditions as Countrywide deems to be in the best interest of Purchaser; provided, however, that
Countrywide shall first obtain the prior consent of Purchaser before selling or agreeing to sell
any REO Property. If as of the date title to any REO Property was acquired by Countrywide there
were outstanding unreimbursed Servicing Advances, Monthly Advances or Servicing Fees with respect
to the REO Property or the related Mortgage Loan, Countrywide, upon an REO Disposition of such REO
Property, shall be entitled to reimbursement for any related unreimbursed Servicing Advances,
Monthly Advances and Servicing Fees from proceeds received in connection with such REO Disposition.
The proceeds from the REO Disposition, net of any payment to Countrywide as provided above, shall
be deposited in the REO Account and shall be transferred to the Custodial Account on the
Determination Date in the month following receipt thereof for distribution on the succeeding
Remittance Date in accordance with Section 5.01.

               Section 4.14 Notification of Adjustments. With respect to each Adjustable Rate
Mortgage Loan, Countrywide shall adjust the Mortgage Interest Rate on the related Interest
Adjustment Date and shall adjust the Monthly Payment on the related Payment Adjustment Date in
compliance with the requirements of applicable law and the related Mortgage and Mortgage Note. If,
pursuant to the terms of the Mortgage Note, another index is selected for determining the Mortgage
Interest Rate because the original index is no longer available, the same index will be used with
respect to each Mortgage Note which requires a new index to be selected, provided that such
selection does not conflict with the terms of the related Mortgage Note. Countrywide shall execute
and deliver any and all necessary notices required under applicable law and the terms of the
related Mortgage Note and Mortgage regarding the Mortgage Interest Rate and the Monthly Payment
adjustments. Countrywide shall promptly, upon written request therefor, deliver to Purchaser such
notifications and any additional applicable data regarding such adjustments and the methods used to
calculate and implement such adjustments. Upon the discovery by Countrywide or Purchaser that
Countrywide has failed to adjust a
Mortgage Interest Rate or a Monthly Payment pursuant to the terms of the related Mortgage Note and
Mortgage, Countrywide shall immediately deposit in the Custodial Account, from its own funds, the
amount of any interest loss caused Purchaser thereby without reimbursement therefor.

               Section 4.15 Notification of Maturity Date. With respect to each Balloon Mortgage
Loan, Countrywide shall execute and deliver to the Mortgagor any and all necessary notices required
under applicable law and the terms of the related Mortgage Note and Mortgage regarding the maturity
date and final balloon payment.

               Section 4.16 Assumption Agreements. Countrywide shall, to the extent it has knowledge
of any conveyance or prospective conveyance by any Mortgagor of the Mortgaged Property (whether by
absolute conveyance or by contract of sale, and whether or not the Mortgagor remains or is to
remain liable under the Mortgage Note and/or the Mortgage), exercise its rights to accelerate the
maturity of such Mortgage Loan under any “due-on-sale” clause to the extent permitted by law;
provided, however, that Countrywide shall not exercise any such right if prohibited from doing so
by law or the terms of the Mortgage Note or if the exercise of such right would impair or threaten
to impair any recovery under the related PMI Policy, if any. If Countrywide reasonably believes it
is unable under applicable law to enforce such “due-on-sale” clause, Countrywide shall enter into
an assumption agreement with the Person to whom the Mortgaged Property has been conveyed or is
proposed to be conveyed, pursuant to which such Person becomes liable under the Mortgage Note and,
to the extent permitted by applicable state law, the Mortgagor remains liable thereon. Where an
assumption is allowed pursuant to this Section 4.16, Purchaser authorizes Countrywide, with the
prior written consent of the primary mortgage insurer, if any, to enter into a substitution of
liability agreement with the Person to whom the Mortgaged Property has been conveyed or is proposed
to be conveyed pursuant to which the original Mortgagor is released from

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liability and such Person
is substituted as Mortgagor and becomes liable under the related Mortgage Note. Any such
substitution of liability agreement shall be in lieu of an assumption agreement.

               In connection with any such assumption or substitution of liability, Countrywide shall follow
the underwriting practices and procedures employed by Countrywide for mortgage loans originated by
Countrywide for its own account in effect at the time such assumption or substitution is made.
With respect to an assumption or substitution of liability, the Mortgage Interest Rate borne by the
related Mortgage Note, the term of the Mortgage Loan and the outstanding principal amount of the
Mortgage Loan shall not be changed. Countrywide shall notify Purchaser that any such substitution
of liability or assumption agreement has been completed by forwarding to Purchaser or its designee
the original of any such substitution of liability or assumption agreement, which document shall be
added to the related Collateral File and shall, for all purposes, be considered a part of such
Collateral File to the same extent as all other documents and instruments constituting a part
thereof.

               Notwithstanding anything to the contrary contained herein, Countrywide shall not be deemed to
be in default, breach or any other violation of its obligations hereunder by reason of any
assumption of a Mortgage Loan by operation of law or any assumption that Countrywide may be
restricted by law from preventing, for any reason whatsoever. For purposes of this Section 4.16,
the term “assumption” is deemed to also include a sale of the Mortgaged Property subject to the
Mortgage that is not accompanied by an assumption or substitution of liability agreement.

               Section 4.17 Satisfaction of Mortgages and Release of Collateral Files. Upon the
payment in full of any Mortgage Loan, or the receipt by Countrywide of a notification that payment
in full will be escrowed in a manner customary for such purposes, Countrywide shall immediately
notify Purchaser. Such notice shall include a statement to the effect that all amounts received or
to be received in connection with such payment, which are required to be deposited in the Custodial
Account pursuant to Section 4.04, have been or will be so deposited and shall request delivery to
it of the portion of the Collateral File held by Purchaser. Upon receipt of such notice and
request, Purchaser, or its designee, shall within five (5) Business Days release or cause to be
released to Countrywide the related Collateral Documents and Countrywide shall prepare and process
any satisfaction or release. No expense incurred in connection with any instrument of satisfaction
or deed of reconveyance shall be chargeable to the Custodial Account.

               In the event Countrywide satisfies or releases a Mortgage without having obtained payment in
full of the indebtedness secured by the Mortgage or should it otherwise prejudice any right
Purchaser may have under the mortgage instruments, Countrywide, upon written demand, shall remit to
Purchaser the then unpaid principal balance of the related Mortgage Loan by deposit thereof in the
Custodial Account. Countrywide shall maintain the Fidelity Bond insuring Countrywide against any
loss it may sustain with respect to any Mortgage Loan not satisfied in accordance with the
procedures set forth herein.

               From time to time and as appropriate for the service or foreclosure of a Mortgage Loan,
including for the purpose of collection under any PMI Policy, Purchaser shall, upon request of
Countrywide and delivery to Purchaser, or Purchaser’s designee, of a servicing receipt signed by a
Servicing Officer, release or cause to be released to Countrywide the portion of the Collateral
File held by Purchaser or its designee. Pursuant to the servicing receipt, Countrywide shall be
obligated to return to Purchaser the related Collateral File when Countrywide no longer needs such
file, unless the Mortgage Loan has been liquidated and the Liquidation Proceeds relating to the
Mortgage Loan have been deposited in the Custodial Account or the Collateral File or such document
has been delivered to an attorney, or to a public trustee or other public official as required by
law, for purposes of initiating or pursuing legal action or other proceedings for the foreclosure
of the Mortgaged Property either judicially or non-judicially. Upon receipt of notice from
Countrywide stating that such Mortgage Loan was liquidated and the funds have been deposited or
will be deposited in the Custodial Account, Purchaser shall release Countrywide from its
obligations under the related servicing receipt.

               Section 4.18 Servicing Compensation. As compensation for its services hereunder,
Countrywide shall be entitled to withdraw from the Custodial Account, or to retain from interest
payments on the Mortgage Loans, the amounts provided for as Servicing Fees. Additional servicing
compensation in the form of assumption fees (as provided in Section 4.16), late payment charges,
prepayment penalties

25

 

or otherwise shall be retained by Countrywide to the extent not required to be
deposited in the Custodial Account. Countrywide shall be required to pay all expenses incurred by
it in connection with its servicing activities hereunder and shall not be entitled to reimbursement
therefor except as specifically provided herein.

               Section 4.19 Prepayment Penalties. With respect to any Mortgage Loan that has a
prepayment penalty contained in the related Mortgage Note, Countrywide shall enforce the terms of
any such prepayment penalty and shall not waive the same unless (i) it reasonably believes that
such enforcement would violate applicable law or (ii) the Transaction Documents provide otherwise.

ARTICLE V

PROVISIONS OF PAYMENTS AND REPORTS TO 

PURCHASER

               Section 5.01 Distributions. On each Remittance Date, Countrywide shall distribute to
Purchaser (a) all amounts credited to the Custodial Account as of the close of business on the
preceding Determination Date, net of charges against or withdrawals from the Custodial Account
pursuant to Section 4.05; plus (b) all Monthly Advances, if any, that Countrywide is obligated to
distribute pursuant to Section 5.03; minus (c) any amounts attributable to Principal Prepayments
received after the related Principal Prepayment Period; minus (d) any amounts attributable to
Monthly Payments collected but due on a Due Date or Dates subsequent to the preceding Determination
Date. It is understood that, by operation of Section 4.04, the remittance on the first Remittance
Date is to include principal collected after the Cut-off Date through the preceding Determination
Date plus interest, adjusted to the Mortgage Loan Remittance Rate, collected through such
Determination Date exclusive of any portion thereof allocable to the period prior to the Cut-off
Date, with the adjustments specified in (b), (c) and (d) above. With respect to any remittance
received by Purchaser after the day on which such payment was due, Countrywide shall pay to
Purchaser interest on any such late payment at an annual rate equal to the rate on overnight
federal fund transactions as published by the Federal Reserve Bank of New York for the date such
payment was due, but in no event greater than the maximum amount permitted by applicable law. Such
interest shall be paid by Countrywide to Purchaser on the date such late payment is made and shall
cover the period commencing with the day following the Business Day on which such payment was
due and ending with the Business Day on which such payment is made, both inclusive. Such interest
shall be remitted along with such late payment.

               Section 5.02 Periodic Reports to Purchaser.

                    (a) Monthly Reports. Not later than the fifth (5th) Business Day following
the end of each month, Countrywide shall furnish to Purchaser a Mortgage Loan accounting report, as
of the last Business Day of the previous month, documenting the Mortgage Loan payment activity on
an individual Mortgage Loan basis. Such data shall be reported in order of loan number and shall
contain the following information:

                         (i) the amount of each Monthly Payment that is received allocable to principal (including a
separate breakdown of any Principal Prepayment and the date of such prepayment, any prepayment
penalties or premiums and any interest on principal prepayment amounts remitted);

                         (ii) a trial balance, reported in order of loan number;

                         (iii) the amount of each Monthly Payment that is received allocable to interest and
assumption fees;

                         (iv) the amount of servicing compensation received by Countrywide during the previous Due
Period;

                         (v) the aggregate Stated Principal Balance of the Mortgage Loans;

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                         (vi) the aggregate amount of any expenses reimbursed to Countrywide during the pervious Due
Period; and

                         (vii) the number and aggregate Stated Principal Balance of all delinquent Mortgage Loans
(including a separate breakdown for Mortgage Loans that are (a) delinquent thirty to fifty-nine
days, (b) delinquent sixty to eighty-nine days, (c) delinquent ninety or more days, and (d) in
foreclosure and Mortgage Loans that been foreclosed upon and REO Property has been acquired.

                    (b) Miscellaneous Reports. Upon the foreclosure sale of any Mortgaged Property or the
acquisition thereof by Purchaser pursuant to a deed-in-lieu of foreclosure, Countrywide shall
submit to Purchaser a liquidation report with respect to such Mortgaged Property, which report may
be included with any other reports prepared by Countrywide and delivered to Purchaser pursuant to
the terms and conditions of this Agreement. With respect to any REO Property, and upon the request
of Purchaser, Countrywide shall furnish to Purchaser a statement describing Countrywide’s efforts
during the previous month in connection with the sale of such REO Property, including any rental of
such REO Property incidental to the sale thereof and an operating statement. Countrywide shall
also provide Purchaser with such information concerning the Mortgage Loans as is necessary for
Purchaser to prepare its federal income tax return and as Purchaser may reasonably request from
time to time. Purchaser agrees to pay for all reasonable out-of-pocket expenses incurred by
Countrywide in connection with complying with any request made by Purchaser hereunder if such
information is not customarily provided by Countrywide in the ordinary course of servicing mortgage
loans similar to the Mortgage Loans.

                    (c) Tax Reports. Beginning with the calendar year following the year in which the
Cut-off Date for the first Mortgage Loan Package purchased under the Agreement falls, Countrywide
shall prepare and file, with respect to the Mortgage Loans, any tax forms, information statements
or other filings for the previous tax year and subsequent tax years relating to the transactions
contemplated by this Agreement and required to be delivered to any governmental taxing authority or
Purchaser pursuant to any applicable law. In addition, Countrywide shall provide Purchaser with
such information relating to the Mortgage Loans, as Purchaser may reasonably request from time to
time, as is necessary for Purchaser to prepare its federal income tax return and as is reasonably
available to Countrywide.

               Section 5.03 Monthly Advances by Countrywide. Not later than the close of business on
the Business Day preceding each Remittance Date, Countrywide shall deposit in the Custodial Account
an amount equal to all payments not previously advanced by Countrywide, whether or
not deferred pursuant to Section 5.01, of principal (due after the Cut-off Date) and interest not
allocable to the period prior to the Cut-off Date, adjusted to the Mortgage Loan Remittance Rate,
which were due on a Mortgage Loan and delinquent at the close of business on the related
Determination Date.

               Countrywide’s obligation to make such advances as to any Mortgage Loan will continue through
the earliest of: (a) the last Monthly Payment due prior to the payment in full of the Mortgage
Loan; (b) the Remittance Date prior to the Remittance Date for the distribution of any Liquidation
Proceeds, Other Insurance Proceeds or Condemnation Proceeds which, in the case of Other Insurance
Proceeds and Condemnation Proceeds, satisfy in full the indebtedness of such Mortgage Loan; or (c)
the Remittance Date prior to the date the Mortgage Loan is converted to REO Property. In no event
shall Countrywide be obligated to make an advance under this Section 5.03 if at the time of such
advance it reasonably determines that such advance will be unrecoverable.

               Section 5.04 Annual Statement as to Compliance. Countrywide shall deliver to
Purchaser on or before May 31st of each year, beginning in the year following the Closing Date, an
Officers’ Certificate stating, as to each signatory thereof, that (a) a review of the activities of
Countrywide during the preceding calendar year and of performance under this Agreement has been
made under such officers’ supervision, and (b) to the best of such officers’ knowledge, based on
such review, Countrywide has fulfilled all of its obligations under this Agreement throughout such
year, or, if there has been a default in the fulfillment of any such obligation, specifying each
such default known to such officers and the nature and status thereof. Countrywide shall provide
Purchaser with copies of such statements.

               Section 5.05 Annual Independent Certified Public Accountants’ Servicing Report. On or
before May 31st of each year, beginning in the year following the Closing Date, Countrywide at its
expense shall cause a firm of independent public accountants, which is a member of the American

27

 

Institute of Certified Public Accountants, to furnish a statement to Purchaser to the effect that
such firm has examined certain documents and records relating to Countrywide’s servicing of
mortgage loans of the same type as the Mortgage Loans, pursuant to this Agreement or servicing
agreements substantially similar to this Agreement, and that, on the basis of such examination,
conducted substantially in accordance with the Uniform Single Audit Program for Mortgage Bankers,
such firm is of the opinion that Countrywide’s servicing has been conducted in compliance with this
Agreement or such servicing agreements examined pursuant to this Section 5.05 except for (a) such
exceptions as such firm shall believe to be immaterial, and (b) such other exceptions as shall be
set forth in such statement. Countrywide shall provide Purchaser with copies of such statements.

               Section 5.06 Purchaser’s Access to Countrywide’s Records. Purchaser shall have access
upon reasonable notice to Countrywide, during business hours or at such other times as might be
reasonable under applicable circumstances, to any and all of the books and records of Countrywide
that relate to the performance or observance by Countrywide of the terms, covenants or conditions
of this Agreement, provided that such information is available to the public generally. Further,
Countrywide hereby authorizes Purchaser, in connection with a sale of the Mortgage Loans, to make
available to prospective purchasers a Consolidated Statement of Operations of Countrywide, or its
parent company, prepared by or at the request of Countrywide for the most recently completed three
(3) fiscal years for which such a statement is available as well as a Consolidated Statement of
Condition at the end of the last two (2) fiscal years covered by such Consolidated Statement of
Operations. Countrywide also agrees to make available to any prospective purchaser, upon reasonable
notice and during normal business hours, a knowledgeable financial or accounting officer for the
purpose of answering questions respecting Countrywide’s ability to perform under this Agreement.
Purchaser agrees to reimburse Countrywide for any out-of-pocket costs incurred by Countrywide in
connection with its obligations under this Section 5.06

ARTICLE VI

COVENANTS BY COUNTRYWIDE

               Section 6.01 Additional Indemnification by Countrywide. In addition to the
indemnification provided in Section 3.03(d), Countrywide shall indemnify Purchaser and hold it
harmless
against any and all claims, losses, damages, penalties, fines, forfeitures, reasonable and
necessary attorneys’ fees and related costs, judgments, and any other costs, fees and expenses that
Purchaser may sustain in any way related to the failure of Countrywide to perform its obligations
hereunder including its obligations to service and administer the Mortgage Loans in compliance with
the terms of this Agreement. Notwithstanding the foregoing, Purchaser shall indemnify Countrywide
and hold it harmless against any and all claims, losses, damages, penalties, fines, forfeitures,
reasonable and necessary legal fees and related costs, judgments, and any other costs, fees and
expenses that Countrywide may sustain in any way related to (a) actions or inactions of Countrywide
which were taken or omitted upon the instruction or direction of Purchaser, or (b) the failure of
Purchaser to perform its obligations hereunder.

               Section 6.02 Third Party Claims. Countrywide and Purchaser shall immediately notify
the other if a claim is made upon such party by a third party with respect to this Agreement or the
Mortgage Loans. Upon the prior written consent of Purchaser, which consent shall not be
unreasonably withheld, Countrywide shall assume the defense of any such claim and pay all expenses
in connection therewith, including attorneys’ fees, and promptly pay, discharge and satisfy any
judgment or decree which may be entered against it or Purchaser in respect of such claim. Purchaser
shall promptly reimburse Countrywide for all amounts advanced by it pursuant to the preceding
sentence except when as a result of such claim Countrywide is otherwise required to indemnify
Purchaser pursuant to Section 3.03 or 6.01 hereof.

               Section 6.03 Merger or Consolidation of Countrywide. Countrywide shall keep in full
effect its existence, rights and franchises as a corporation under the laws of the state of its
incorporation except as permitted herein, and will obtain and preserve its qualification to do
business as a foreign corporation in each jurisdiction in which such qualification is or shall be
necessary to protect the validity and enforceability of this Agreement, or any of the Mortgage
Loans, and to perform its duties under this Agreement.

28

 

               Notwithstanding anything to the contrary contained herein, any Person into which Countrywide
may be merged or consolidated, or any corporation resulting from any merger, conversion or
consolidation to which Countrywide shall be a party, or any Person succeeding to the business of
Countrywide, shall be the successor of Countrywide hereunder, without the execution or filing of
any paper or any further act on the part of any of the parties hereto; provided, however, that the
successor or surviving Person shall be an institution whose deposits are insured by FDIC or a
company whose business is the origination and servicing of mortgage loans, unless otherwise
consented to by Purchaser, which consent shall not be unreasonably withheld, and shall be qualified
to service mortgage loans on behalf of an Agency.

               Section 6.04 Limitation on Liability of Countrywide and Others. Neither Countrywide
nor any of the officers, employees or agents of Countrywide shall be under any liability to
Purchaser for any action taken, or for refraining from taking any action, in good faith pursuant to
this Agreement, or for errors in judgment; provided, however, that this provision shall not protect
Countrywide or any such person against any breach of warranties or representations made herein, or
the failure to perform its obligations in compliance with any standard of care set forth in this
Agreement, or any liability which would otherwise be imposed by reason of any breach of the terms
and conditions of this Agreement. Countrywide and any officer, employee or agent of Countrywide
may rely in good faith on any document of any kind prima facie properly executed and submitted by
any Person respecting any matters arising hereunder. To the extent Purchaser records with the
recording office or requires Countrywide to record an Assignment of Mortgage which designates the
Purchaser as the holder of record of the Mortgage, Purchaser agrees that Countrywide shall have no
liability to Purchaser to the extent Countrywide fails to receive timely notice of any action with
respect to the Mortgage or the related Mortgaged Property and/or the Purchaser fails to ensure that
the proper department or person at Countrywide receives such notice. Countrywide shall not be
under any obligation to appear in, prosecute or defend any legal action which is not incidental to
its duties to service the Mortgage Loans in accordance with this Agreement and which in its opinion
may involve it in any expenses or liability; provided, however, that Countrywide may, with the
consent of Purchaser, undertake any such action which it may deem necessary or desirable in respect
to this Agreement and the rights and duties of the parties hereto. In such event, the legal
expenses and costs of such action and any liability resulting therefrom shall be expenses, costs
and liabilities for which Purchaser will be liable, and Countrywide
shall be entitled to be reimbursed therefor from Purchaser upon written demand except when such
expenses, costs and liabilities are subject to Countrywide’s indemnification under Section 3.03 or
6.01.

               Section 6.05 No Transfer of Servicing. Countrywide acknowledges that Purchaser acts in
reliance upon Countrywide’s independent status, the adequacy of its servicing facilities, plant,
personnel, records and procedures, its integrity, reputation and financial standing and the
continuance thereof. Without in any way limiting the generality of this Section, Countrywide shall
not assign this Agreement or the servicing rights hereunder, without the prior written approval of
Purchaser, which consent may not be unreasonably withheld.

ARTICLE VII

TERMINATION OF COUNTRYWIDE AS SERVICER

               Section 7.01 Termination Due to an Event of Default.

                    (a) Events of Default. Each of the following shall be an Event of Default by
Countrywide if it shall occur and be continuing:

                    (i) any failure by Countrywide to remit to Purchaser any payment required to be made
under the terms of this Agreement which continues unremedied for a period of three (3)
Business Days after the date upon which written notice of such failure, requiring the same
to be remedied, shall have been given to Countrywide by Purchaser; or

                    (ii) failure on the part of Countrywide to duly observe or perform in any material
respect any of the covenants or agreements on the part of Countrywide set forth in this
Agreement which continues unremedied for a period of thirty (30) days after the date on
which

29

 

written notice of such failure, requiring the same to be remedied, shall have been
given to Countrywide by Purchaser; or

                    (iii) a decree or order of a court or agency or supervisory authority having
jurisdiction for the appointment of a conservator or receiver or liquidator in any
insolvency, bankruptcy, readjustment of debt, marshaling of assets and liabilities or
similar proceedings, or for the winding-up or liquidation of its affairs, shall have been
entered against Countrywide and such decree or order shall have remained in force
undischarged or unstayed for a period of sixty (60) days; or

                    (iv) Countrywide shall consent to the appointment of a conservator or receiver or
liquidator in any insolvency, bankruptcy, readjustment of debt, marshaling of assets and
liabilities or similar proceedings of or relating to Countrywide or of or relating to all or
substantially all of its property; or

                    (v) Countrywide shall admit in writing its inability to pay its debts generally as they
become due, file a petition to take advantage of any applicable insolvency or reorganization
statute, make an assignment for the benefit of its creditors, or voluntarily suspend payment
of its obligations; or

                    (vi) Countrywide fails to maintain its license to do business or service residential
mortgage loans in any jurisdiction where Mortgaged Properties are located or ceases to meet
the qualifications of FNMA- or FHLMC-approved servicer; or

                    (vii) Countrywide attempts, without the consent of the Purchaser to assign this
Agreement or the servicing responsibilities hereunder or to delegate its duties hereunder or
any portion thereof.

                    In case one or more Event of Default by Countrywide shall occur and shall not have been
remedied, the Purchaser, by notice in writing to Countrywide may, in addition to whatever rights
Purchaser may have at law or equity to damages, including injunctive relief and specific
performance, terminate all the rights and obligations of Countrywide under this Agreement and in and to the
Mortgage Loans and the proceeds thereof. On or after the receipt by Countrywide of such written
notice, all authority and power of Countrywide under this Agreement, whether with respect to the
Mortgage Loans or otherwise, shall pass to and be vested in Purchaser. Upon written request from
Purchaser, Countrywide shall prepare, execute and deliver, any and all documents and other
instruments, placed in such successor’s possession all Credit Files, and do or accomplish all other
acts or things necessary or appropriate to effect the purposes of such notice of termination,
whether to complete the transfer and endorsement or assignment of the Mortgage Loans and related
documents, or otherwise, at Countrywide’s sole expense. Countrywide agrees to cooperate with
Purchaser in effecting the termination of Countrywide’s responsibilities and rights hereunder,
including the transfer to Purchaser, for administration by it, of all cash amounts which shall at
the time be credited by Countrywide to the Custodial Account, REO Account or Escrow Account or
thereafter received with respect to the Mortgage Loans.

                    (b) Waiver of Event of Default. Purchaser may waive any default by Countrywide in the
performance of its obligations hereunder and its consequences. Upon any such waiver of a past
default, such default shall cease to exist, and any Event of Default arising therefrom shall be
deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend to
any subsequent or other default or impair any right consequent thereon except to the extent
expressly so waived.

               Section 7.02 Termination by Other Means. The respective obligations and
responsibilities of Countrywide shall terminate with respect to any Mortgage Loan Package upon the
first to occur of: (a) the later of the final payment or other liquidation (or any advance with
respect thereto) of the last Mortgage Loan or the disposition of all REO Property in such Mortgage
Loan Package and the remittance of all funds due hereunder; (b) by mutual consent of Countrywide
and Purchaser in writing.

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ARTICLE VIII

MISCELLANEOUS

               Section 8.01 Notices. All demands, notices and communications required to be provided
hereunder shall be in writing and shall be deemed to have been duly given if mailed, by registered
or certified mail, postage prepaid, and return receipt requested, or, if by other means, when
received by the other party at the address as follows:

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	(i)
	 	if to Countrywide:
	 
	 	 	 	 
	 

	 	 	 	Countrywide Home Loans, Inc.
	 

	 	 	 	4500 Park Granada
	 

	 	 	 	Calabasas, California 91302
	 

	 	 	 	Attn: Mr. Dave Sambol, Managing Director
	 
	 	 	 	 
	 

	 	(ii)
	 	if to Purchaser:
	 
	 	 	 	 
	 

	 	 	 	To the address and contact set forth in the related Purchase Confirmation

or such other address as may hereafter be furnished to the other party by like notice. Any such
demand, notice or communication hereunder shall be deemed to have been received on the date
delivered to or received at the premises of the addressee (as evidenced, in the case of registered
or certified mail, by the date noted on the return receipt).

               Section 8.02 Sale Treatment. It is the express intention of the parties that the
transactions contemplated by this Agreement be, and be construed as, a sale of the Mortgage Loans
by Countrywide and not a pledge of the Mortgage Loans by Countrywide to Purchaser to secure a debt
or other obligation of Countrywide. Consequently, the sale of each Mortgage Loan shall be
reflected as a sale on Countrywide’s business records, tax returns and financial statements.
Accordingly, Countrywide
and Purchaser shall each treat the transaction for federal income tax purposes as a sale by
Countrywide, and a purchase by Purchaser, of the Mortgage Loans.

               Section 8.03 Exhibits. The Exhibits to this Agreement and each Trade Confirmation and
Purchase Confirmation executed by Countrywide and Purchaser are hereby incorporated and made a part
hereof and are an integral part of this Agreement.

               Section 8.04 General Interpretive Principles. For purposes of this Agreement, except
as otherwise expressly provided or unless the context otherwise requires:

                    (a) the terms defined in this Agreement have the meanings assigned to them in this Agreement
and include the plural as well as the singular, and the use of any gender herein shall be deemed to
include the other gender;

                    (b) accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles;

                    (c) references herein to “Articles,” “Sections,” “Subsections,” “Paragraphs,” and other
Subdivisions without reference to a document are to designated Articles, Sections, Subsections,
Paragraphs and other subdivisions of this Agreement;

                    (d) reference to a Subsection without further reference to a Section is a reference to such
Subsection as contained in the same Section in which the reference appears, and this rule shall
also apply to Paragraphs and other subdivisions;

                    (e) the words “herein,” “hereof,” “hereunder” and other words of similar import refer to this
Agreement as a whole and not to any particular provision;

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                    (f) the term “include” or “including” shall mean without limitation by reason of enumeration;

                    (g) reference to the Transaction Documents or any other document referenced herein shall
include all exhibits, schedules or other supplements thereto.

               Section 8.05 Reproduction of Documents. This Agreement and all documents relating
thereto, including (a) consents, waivers and modifications which may hereafter be executed, (b)
documents received by any party at the closing, and (c) financial statements, certificates and
other information previously or hereafter furnished, may be reproduced by any photographic,
photostatic, microfilm, micro-card, miniature photographic or other similar process. The parties
agree that any such reproduction shall be admissible in evidence as the original itself in any
judicial or administrative proceeding, whether or not the original is in existence and whether or
not such reproduction was made by a party in the regular course of business, and that any
enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in
evidence.

               Section 8.06 Further Agreements. Countrywide shall execute and deliver to Purchaser
and Purchaser shall be required to execute and deliver to Countrywide such reasonable and
appropriate additional documents, instruments or agreements as may be necessary or appropriate to
effectuate the purposes of this Agreement.

               Section 8.07 Assignment of Mortgage Loans by Purchaser. Purchaser may, subject to the
terms of this Agreement, sell and transfer one or more of the Mortgage Loans; provided, however,
that the transferee will not be deemed to be Purchaser hereunder unless such transferee shall agree
in writing to be bound by the terms of this Agreement and an original counterpart of the document
evidencing such agreement shall have been executed by Purchaser and the transferee and delivered to
Countrywide. Notwithstanding the foregoing, no transfer shall be effective if such transfer would
result in there being more than three (3) “Purchasers” outstanding hereunder with respect to any
Mortgage Loan Package.

               Section 8.08 Conflicts with Purchase Confirmation. In the event of any conflict,
inconsistency or ambiguity between the terms and conditions of this Agreement and either the Trade
Confirmation or Purchase Confirmation, the terms of the Trade Confirmation or Purchase
Confirmation, as the case may be, shall control. In the event of any conflict, inconsistency or
ambiguity between the terms and conditions of the Trade Confirmation and the Purchase Confirmation,
the terms of the Purchase Confirmation shall control.

               Section 8.09 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California applicable to agreements entered into and
wholly performed within that state.

               Section 8.10 Severability Clause. Any part, provision, representation or warranty of
this Agreement which is prohibited or which is held to be void or unenforceable shall be
ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof. Any part, provision, representation or warranty of this Agreement
which is prohibited or unenforceable or is held to be void or unenforceable in any jurisdiction
shall be ineffective, as to such jurisdiction, to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction as to any Mortgage Loan shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent permitted by applicable law,
the parties hereto waive any provision of law which prohibits or renders void or unenforceable any
provision hereof. If the invalidity of any part, provision, representation or warranty of this
Agreement shall deprive any party of the economic benefit intended to be conferred by this
Agreement, the parties shall negotiate, in good-faith, to an amendment to this Agreement which
places each party in the same or as economic position as each party would have been in except for
such invalidity.

               Section 8.11 Successors and Assigns. This Agreement shall bind and inure to the
benefit of and be enforceable by Countrywide and Purchaser and the respective permitted successors
and assigns of Countrywide and Purchaser. Except as specifically set forth in Section 8.07 above,
Purchaser may not assign this Agreement to any Person without Countrywide’s prior written consent.

32

 

               Section 8.12 Confidentiality. Countrywide and Purchaser acknowledge and agree that
the terms of the Transaction Documents shall be kept confidential and its contents will not be
divulged to any party without the other party’s consent, except to the extent that it is
appropriate for Countrywide and Purchaser to do so in working with legal counsel, auditors, taxing
authorities, or other governmental agencies.

               Section 8.13 Entire Agreement. This Agreement and the related Trade Confirmation and
Purchase Confirmation constitute the entire understanding between the parties hereto with respect
to each Mortgage Loan Package and supersede all prior or contemporaneous oral or written
communications regarding same. Countrywide and Purchaser understand and agree that no employee,
agent or other representative of Countrywide or Purchaser has any authority to bind such party with
regard to any statement, representation, warranty or other expression unless said statement,
representation, warranty or other expression is specifically included within the express terms of
this Agreement or the related Trade Confirmation or Purchaser Confirmation. Neither this Agreement
nor the Trade Confirmation nor the Purchase Confirmation shall be modified, amended or in any way
altered except by an instrument in writing signed by both parties.

               Section 8.14 Nonsolicitation. Subject to the provisions set forth in this Section
8.14, from and after the date hereof, neither Countrywide nor any of its affiliates shall
specifically target and solicit, by means of direct mail or telephonic or personal solicitation or
by any other means, the Mortgagors to prepay such Mortgage Loans. Notwithstanding the foregoing,
the following solicitations, if undertaken by Countrywide or any affiliate of Countrywide, shall
not be prohibited under this Section 8.14: (i) solicitations that are directed to the general
public at large, including, without limitation, mass mailings based on commercially acquired
mailing lists and newspaper, radio, television and other mass media advertisements; (ii) statement
inserts, provided, however, that similar inserts are sent to the borrowers of other mortgage loans
serviced by Countrywide; (iii) solicitations made in response to an inquiry from a Mortgagor
relating to a payoff or information pertaining to a mortgage loan product; and (iv) solicitations
made as a part of a campaign directed to all mortgagors with mortgage loans meeting
certain defined parameters (other than parameters relating to the Mortgagors or Mortgage Loans
specifically).

[INTENTIONALLY LEFT BLANK]

33

 

     IN WITNESS WHEREOF, Countrywide and Purchaser have caused their names to be signed hereto by
their respective officers thereunto duly authorized as of the date first above written.

	 	 	 	 	 
	 	 	COUNTRYWIDE HOME LOANS, INC.,
 as Countrywide
	 
	 	 	 	 
	 

	 	By
	 	   /s/ Michael W. Schloessmann Jr.
	 

	 	 	 	 
	 

	 	 	 	Michael W. Schloessmann Jr.
	 

	 	 	 	Vice President
	 
	 	 	 	 
	 	 	RWT HOLDINGS, INC.,
	 	 	as Purchaser
	 
	 	 	 	 
	 

	 	By
	 	   /s/ RWT HOLDINGS, INC.
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

34

 

Exhibit 10.1

EXHIBIT A

COLLATERAL DOCUMENTS

	1.	 	Mortgage Note: The original Mortgage Note (or a lost note affidavit in a form
acceptable to an Agency) bearing all intervening endorsements, endorsed “Pay to the order of
___, without recourse” and signed in the name of Countrywide by an authorized
officer.
	 
	2.	 	Assignment of Mortgage: The original Assignment of Mortgage in blank.
	 
	3.	 	Guarantee: The original of any guarantee executed in connection with the Mortgage
Note.
	 
	4.	 	Mortgage: The original Mortgage with evidence of recording thereon or, if such
original Mortgage has not been returned to Countrywide on or prior to the Closing Date by the
public recording office where such Mortgage has been delivered for recordation, a copy of such
Mortgage certified by Countrywide to be a true and complete copy of the original Mortgage sent
for recordation.
	 
	5.	 	Modifications: The originals of all assumption, modification, consolidation or
extension agreements, with evidence of recording thereon, if any.
	 
	6.	 	Intervening Assignments: The originals of all intervening assignments of Mortgage
with evidence of recording thereon or, if any of such originals have not been returned to
Countrywide on or prior to the Closing Date by the public recording office where such
intervening assignment of Mortgage has been delivered for recordation, a certified true and
correct copy of such intervening assignment of Mortgage sent for recordation.
	 
	7.	 	Title Policy: The original mortgagee title insurance policy (or the equivalent
thereof with respect to any Mortgage Loan in which the related Mortgaged Property is located
in a jurisdiction where such title insurance is not customarily provided) if such
title insurance policy has been issued by the related title company on or prior to the Closing
Date.

A-1

 

EXHIBIT B

FORM OF PURCHASE CONFIRMATION

[COUNTRYWIDE LETTERHEAD]

[DATE]

[PURCHASER]

[STREET ADDRESS]

[CITY, STATE AND ZIP]

Attn: [CONTACT, TITLE]

Re:    Purchase Confirmation

Gentlemen and Ladies:

This purchase confirmation (the “Purchase Confirmation”) between Countrywide Home Loans, Inc.
(“Countrywide”) and [PURCHASER] (the “Purchaser”) sets forth our agreement pursuant to which
Purchaser is purchasing, and Countrywide is selling, on a servicing-retained basis, those certain
mortgage loans identified in Exhibit A hereto and more particularly described herein (the
“Mortgage Loans”).

The purchase, sale and servicing of the Mortgage Loans as contemplated herein shall be governed by
that certain Mortgage Loan Purchase and Servicing Agreement dated as of [DATE], between Countrywide
and Purchaser (as amended herein and otherwise, the “Agreement”). By executing this Purchase
Confirmation, each of Countrywide and Purchaser again makes, with respect to itself and each
Mortgage Loan, as applicable, all of the covenants, representations and warranties made by each
such party in the Agreement, except as the same may be amended by this Purchase Confirmation.

All exhibits hereto are incorporated herein in their entirety. In the event there exists any
inconsistency between the Agreement and this Purchase Confirmation, the latter shall be controlling
notwithstanding anything contained in the Agreement to the contrary. All capitalized terms used
herein and not otherwise defined herein shall have the meanings assigned to such terms in the
Agreement.

	1.	 	Assignment and Conveyance of Mortgage Loans. Upon Purchaser’s payment of the Purchase
Proceeds in accordance with Section 2.08 of the Agreement, Countrywide shall sell, transfer,
assign and convey to Purchaser, without recourse, but subject to the terms of the Purchase
Confirmation and the Agreement, all of the right, title and interest of Countrywide in and to
the Mortgage Loans, excluding the servicing rights relating thereto. Each Mortgage Loan shall
be serviced by Countrywide pursuant to the terms of the Agreement.
	 
	2.	 	Defined Terms. As used in the Agreement, the following defined terms shall have
meanings set forth below.

	 	a.	 	Closing Date: [DATE].
	 
	 	 	 	[b. Missing Credit Documents: As set forth in Exhibit [B] hereto.]
	 
	 	 	 	[c. Pending Mortgage Loans: As set forth in Exhibit [C] hereto.]
	 
	 	d.	 	Purchase Proceeds: With respect to [the Mortgage Loans] [each Mortgage Loan]
[the Mortgage Loans in each Segment], and as set forth in Exhibit [A] hereto, the
sum of (a) the product of (i) the Cut-off Date Balance of [such Mortgage Loan] [such
Mortgage Loans] [such Segment], and (ii) the purchase price percentage set forth in
Exhibit [A] hereto for such [Mortgage Loan] [Mortgage Loans] [Segment], and (b)
accrued interest from the Cut-off Date through the day prior to the Closing Date,
inclusive.

B-1

 

	 	e.	 	Servicing Fee Rate: [0.25%] [0.375%] [With respect to the period prior to the
initial Interest Adjustment Date, [0.25]% and, thereafter, [0.375]%].

	3.	 	Description of Mortgage Loans: Each Mortgage Loan complies with the specifications
set forth below in all material respects.

	 	a.	 	Loan Type: Each Mortgage Loan is a [Conventional] [Government] Mortgage Loan and a
[Adjustable Rate] [Balloon] [Convertible] [Fixed Rate] Mortgage Loan.
	 
	 	 	 	[b. Index: On each Interest Adjustment Date, the applicable index rate shall be a rate per
annum equal to [the weekly average yield on U.S. Treasury securities adjusted to a constant
maturity of one year, as published by the Board of Governors of the Federal Reserve System
in Statistical Release No. H.15] [the average of interbank offered rates for six-month U.S.
dollar denominated deposits in the London market (LIBOR), as published [in the Wall Street
Journal] [by FNMA] [the 11th District Cost of Funds as made available by the Federal Home
Loan Bank] [the weekly average yield on certificates of deposit adjusted to a constant
maturity of six months as published by the Board of Governors of the Federal Reserve System
in Statistical Release No. H.15 or a similar publication]. ]
	 
	 	c.	 	Lien Position: Each Mortgage Loan is secured by a perfected [first] [second] lien
Mortgage.
	 
	 	d.	 	Underwriting Criteria: Each Mortgage Loan [was underwritten generally in accordance
with the Seller’s credit underwriting guidelines in effect at the time such Mortgage Loan
was originated] [conforms to the FNMA or FHLMC mortgage eligibility criteria and is
eligible for sale to, and securitization by, FNMA or FHLMC] [conforms in all material
respects to the GNMA mortgage eligibility criteria and is eligible for sale and
securitization into a GNMA mortgage-backed security] [at the time of origination was
underwritten to guidelines which are consistent with an institutional investor-quality
mortgage loan].

Kindly acknowledge your agreement to the terms of this Purchase Confirmation by signing in the
appropriate space below and returning this Purchase Confirmation to the undersigned. Telecopy
signatures shall be deemed valid and binding to the same extent as the original.

	 	 	 	 	 	 	 	 	 	 	 
	COUNTRYWIDE HOME LOANS, INC.	 	 	 	RWT HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Michael W. Schloessmann Jr.
	 	 	 	 	 	Name:	 	 
	 

	 	Vice President
	 	 	 	 	 	Title:	 	 

B-2

 

Exhibit A

to

Purchase Confirmation

Mortgage Loan Schedule

(attached)

B-3

 

Exhibit B

to

Purchase Confirmation

Calculation of Purchase Proceeds

(attached)]

B-4

 

EXHIBIT C

CONTENTS OF CREDIT FILE

	1.	 	Copies of Collateral Documents.
	 
	2.	 	Residential loan application.
	 
	3.	 	Mortgage Loan closing statement.
	 
	4.	 	Verification of employment and income.
	 
	5.	 	Verification of acceptable evidence of source and amount of downpayment.
	 
	6.	 	Credit report on the Mortgagor.
	 
	7.	 	Residential appraisal report.
	 
	8.	 	Photograph of the Mortgaged Property.
	 
	9.	 	Survey of the Mortgaged Property.
	 
	10.	 	Copy of each instrument necessary to complete identification of any exception set forth in
the exception schedules in the title policy, i.e., map or plat, restrictions, easements, sewer
agreements, home association declarations, etc.
	 
	11.	 	All required disclosure statements.
	 
	12.	 	If required in an appraisal, termite report, structural engineer’s report, water potability
and septic certification.
	 
	13.	 	Sales contract, if applicable.
	 
	14.	 	Insurance premium receipts, ledger sheets, insurance claim files, correspondence, current and
historical computerized data files and all other processing, underwriting and closing papers
and records developed or originated by Countrywide or others, required to qualify the Mortgage
Loan.
	 
	15.	 	FNMA Form 1040, or its equivalent.

C-1

 

MORTGAGE LOAN PURCHASE AND SERVICING AGREEMENT

(the “Agreement”)

between

COUNTRYWIDE HOME LOANS, INC.

(“Countrywide”)

and

RWT HOLDINGS, INC.

(“Purchaser”)

dated as of

April 1, 1998

Conventional

Residential Mortgage Loans

(SERVICING RETAINED)

 

 

AMENDMENT NUMBER ONE

to the

MORTGAGE LOAN PURCHASE AND SERVICING AGREEMENT,

dated as of April 1, 1998,

between

COUNTRYWIDE HOME LOANS INC.,

and

RWT HOLDINGS, INC.

     This AMENDMENT NUMBER ONE (this “Amendment”) is made as of February 27, 2004, between
Countrywide Home Loans, Inc., (the “Seller”) and RWT Holdings, Inc., (the “Purchaser”), to the
Mortgage Loan Purchase and Servicing Agreement, dated as of April 1, 1998 (as may be amended or
supplemented from time to time, the “Agreement”) between the Purchaser and the Seller, as otherwise
amended.

RECITALS

     WHEREAS, the Seller and the Purchaser hereto desire to amend the Agreement subject to the
terms and conditions of this Amendment.

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and of the mutual covenants herein contained, the parties hereto hereby agree
as follows:

     SECTION 1. Defined Terms. Any terms capitalized but not otherwise defined herein shall
have the respective meanings set forth in the Agreement.

     SECTION 2. Amendments.

   (A) Effective as of February 19, 2004, Article I of the Agreement is hereby amended by
inserting after the definition of Closing Date the following definition for Code:

     “Code: The Internal Revenue Code of 1986, as it may be amended from time
to time or any successor statute thereto, and applicable U.S. Department of Treasury
regulations issued pursuant thereto.”

   (B) Effective as of February 19, 2004, Article I of the Agreement is hereby amended by
deleting the definition of Determination Date and replacing it with the following:

     “Determination Date: The 15th day of the month of the related Remittance
Date or if such 15th day is not a Business Day, the Business Day immediately preceding such
15th day.”

   (C) Effective as of February 19, 2004, Article I of the Agreement is hereby amended by
deleting the definition of Eligible Account and replacing it with the following:

     “Eligible Account: Any of (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company the short-term unsecured
debt obligations of

2

 

which (or, in the case of a depository institution or trust company that is the principal
subsidiary of a holding company, the debt obligations of such holding company) have the
highest short-term ratings of each Rating Agency at the time any amounts are held on deposit
therein, or (ii) an account or accounts in a depository institution or trust company in
which such accounts are insured by the FDIC, or (iii) a trust account or accounts maintained
with the trust department of a federal or state chartered depository institution or trust
company, acting in its fiduciary capacity or (iv) any other account acceptable to any Rating
Agency. Eligible Accounts may bear interest.”

  (D) Effective as of February 19, 2004, Article I of the Agreement is hereby amended by
inserting after the definition of Other Insurance Proceeds the following definition for
Pass-Through Transfer:

     “Pass-Through Transfer: As defined in Section 8.15(a)(ii).”

   (E) Effective as of February 19, 2004, Article I of the Agreement is hereby amended by
inserting after the definition of Rating Agency the following definition for REMIC and REMIC
Provisions:

     “REMIC: A “real estate mortgage investment conduit” within the meaning of
Section 860D of the Code.

     REMIC Provisions: Provisions of the federal income tax law relating to a REMIC
which appear at the Section 860A through 860 G of Subchapter M of Chapter 1, Subtitle A of
the Code, and related provisions, and regulations, rulings or pronouncements promulgated
thereunder, as the foregoing may be in effect from time to time.”

   (F) Effective as of February 19, 2004, Article I of the Agreement is hereby amended by
deleting the definition of Remittance Date:

     “Remittance Date: The eighteenth (18th) day of any month, beginning with
the month next following the month in which the related Cut-off Date occurs, or if such
eighteenth (18th) day is not a Business Day, the first Business Day immediately preceding
such 18th day.”

   (G) Effective as of February 19, 2004, Article I of the Agreement is hereby amended by
inserting after the definition of Other Insurance Proceeds the following:

     “Whole Loan Transfer: As defined in Section 8.15(a)(i).”

   (H) Effective as of February 19, 2004, Section 3.02 of the Agreement is modified by
deleting the word “and” at the end of Section 3.02(oo), deleting the period at the end of Section
3.02(pp) and replacing it with “;” and inserting the following:

     “(qq) To the best of Countrywide’s knowledge, there is no pending action or
proceeding directly involving the Mortgaged Property in which compliance with any
environmental law, rule or regulation is an issue; to the best of Countrywide’s knowledge,
there is no violation of any environmental law, rule or regulation with respect to the
Mortgaged Property; and to the best of Countrywide’s knowledge, nothing further remains to
be done to satisfy in full all requirements of each such law, rule or regulation
constituting a prerequisite to use and enjoyment of said property. And to the best of
Countrywide’s knowledge, there does not exist on the related Mortgage

3

 

Property any hazardous substances, hazardous wastes or solid
wastes, as such terms are defined in the Comprehensive Environmental Response Compensation
and Liability Act, the Resource Conservation and Recovery Act of 1976, or other federal,
state or local environmental legislation;

     (rr) Each Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all applicable
predatory and abusive lending laws;

     (ss) None of the Mortgage Loans are classified as (a) “high cost” loans under the Home
Ownership and Equity Protection Act of 1994 or (b) “high cost,” “threshold,” “predatory”, or
“covered”, loans under and in violation of any other applicable state, federal or local law;

     (tt) No Mortgage Loan was originated on or after October 1, 2002 and prior to March 7,
2003, which is secured by property located in the State of Georgia. No Mortgage Loan was
originated on or after March 7, 2003 which is a “high cost home loan” as defined under the
Georgia Fair Lending Act; and

     (uu) No Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home
Ownership Act, which became effective November 27, 2003.”

   (I) Effective as of February 19, 2004, Section 3.03(c) shall be amended by inserting as
the third paragraph therein the following:

               “In the event that any Mortgage Loan is held by a REMIC, notwithstanding any
contrary provision of this Agreement, with respect to any Mortgage Loan that is not in
default or as to which no default is imminent, Purchaser may, in connection with any
repurchase or substitution of a defective Mortgage Loan pursuant to this Section 3.03,
require that Countrywide deliver an Opinion of Counsel to the effect that such repurchase or
substitution will not (i) result in the imposition of taxes on “prohibited transactions” of
such REMIC (as defined in Section 860F of the Code) or otherwise subject the REMIC to tax,
or (ii) cause the REMIC to fail to qualify as a REMIC at any time.”

   (J) Effective as of February 19, 2004, Section 4.01 shall be amended by deleting the
first sentence of the second paragraph and replacing it with the following:

               “In accordance with the terms of this Agreement, Countrywide may waive, modify or
vary any term of any Mortgage Loan or consent to the postponement of strict compliance with
any such term or in any manner grant indulgence to any Mortgagor if in Countrywide’s
reasonable and prudent determination such waiver, modification, postponement or indulgence
is not materially adverse to Purchaser; provided, however, that Countrywide shall not (a)
permit any modification with respect to any Mortgage Loan that would decrease the Mortgage
Interest Rate (other than by adjustments required by the terms of the Mortgage Note), result
in the denial of coverage under a PMI Policy, defer or forgive the payment of any principal
or interest payments, reduce the outstanding principal amount (except for actual payments of
principal), make future advances or extend the final maturity date on such Mortgage Loan (b)
with respect to any Mortgage Loan for which any payment due remains delinquent for a period
of 90 days or more, make any other modifications, or (c) accept substitute or additional
collateral, or release any collateral, for a Mortgage Loan without Purchaser’s prior written
consent.

   (K) Effective as of February 19, 2004, Section 4.01 shall be amended by inserting as the
third paragraph therein the following:

4

 

               “Notwithstanding anything to the contrary in the this Agreement, Countrywide shall
not make or permit any modification, waiver or amendment of any term of a Mortgage Loan that
could cause any REMIC holding such Mortgage Loan to fail to qualify as a REMIC or result in
the imposition of any tax under Section 860F(a) or 860G(d) of the Code on any REMIC holding
such Mortgage Loan.”

   (L) Effective as of February 19, 2004, Section 4.03(a) shall be amended by deleting it in
its entirety and replacing it with the following:

“(a) Foreclosure. Countrywide shall use reasonable efforts to foreclose upon
or otherwise comparably convert the ownership of properties securing such of the Mortgage
Loans as come into and continue in default and as to which no satisfactory arrangements can
be made for collection of delinquent payments. Countrywide shall use reasonable efforts to
realize upon defaulted Mortgage Loans, in such manner as will maximize the receipt of
principal and interest by Purchaser, taking into account, among other things, the timing of
foreclosure proceedings. In the event that any payment due under any Mortgage Loan remains
delinquent for a period of 90 days or more, Countrywide shall (a) act in the best interests
of the Purchaser, and such action may include the commencement of foreclosure proceedings,
(b) commence foreclosure proceedings, provided that prior to commencing foreclosure
proceedings, Countrywide shall notify the Purchaser in writing of Countrywide’s intention to
do so, and Countrywide shall not commence foreclosure proceedings if the Purchaser objects
to such action within ten (10) Business Days of receiving such notice, and (c) respond to
reasonable inquiries of the Purchaser with respect to the Mortgage Loan or related REO
Property. The Purchaser may instruct Countrywide to commence foreclosure proceedings on any
Mortgage Loan for which any payment remains delinquent for a period of 120 days or more. If
Countrywide has commenced foreclosure proceedings, it shall promptly notify the Purchaser
and thereafter periodically advise the Purchaser of the status of the foreclosure
proceedings and follow the Purchaser’s instructions in connection therewith. The foregoing
is subject to the provisions that, in any case in which Mortgaged Property shall have
suffered damage, Countrywide shall not be required to expend its own funds toward the
restoration of such property unless it shall determine in its discretion (i) that such
restoration will increase the proceeds of liquidation of the related Mortgage Loan to
Purchaser after reimbursement to itself for such expenses, and (ii) that such expenses will
be recoverable by Countrywide through PMI Proceeds, Other Insurance Proceeds or Liquidation
Proceeds from the related Mortgaged Property. Countrywide shall notify Purchaser in writing
of the commencement of foreclosure proceedings. Such notice may be contained in the reports
prepared by Countrywide and delivered to Purchaser pursuant to the terms and conditions of
this Agreement. Countrywide shall be responsible for all costs and expenses incurred by it
in any foreclosure proceedings; provided, however, that it shall be entitled to
reimbursement thereof from proceeds from the related Mortgaged Property.”

   (M) Effective as of February 19, 2004, Section 4.13(c) shall be amended by deleting the
first sentence of the second paragraph in its entirety and replacing it with the following:

               “Subject to Section 4.03, each REO Disposition shall be carried out by Countrywide
at such price and upon such terms and conditions as Countrywide deems to be in the best
interest of Purchaser; provided, however, that Countrywide shall first obtain the prior
consent of Purchaser before selling or agreeing to sell any REO Property.”

   (N) Effective as of February 19, 2004, Section 4.13(c) shall be amended by inserting as
the third and fourth paragraph therein with the following:

               “The REO Property must be sold within three years following the end of the
calendar year of the date of acquisition if a REMIC election has been made with respect to
the

5

 

arrangement under which the Mortgage Loans and REO Property are held, unless (i) the
Purchaser shall have been supplied with an Opinion of Counsel to the effect that the holding
by the related trust of such Mortgaged Property subsequent to such three-year period (and
specifying the period beyond such three-year period for which the Mortgaged Property may be
held) will not result in the imposition of taxes on “prohibited transactions” of the related
trust as defined in Section 860F of the Code, or cause the related REMIC to fail to qualify
as a REMIC, in which case the related trust may continue to hold such Mortgaged Property
(subject to any conditions contained in such Opinion of Counsel), or (ii) the Purchaser or
Countrywide shall have applied for, prior to the expiration of such three-year period, an
extension of such three-year period in the manner contemplated by Section 856(e)(3) of the
Code, in which case the three-year period shall be extended by the applicable period. If a
period longer than three years is permitted under the foregoing sentence and is necessary to
sell any REO Property, Countrywide shall report monthly to the Purchaser as to progress
being made in selling such REO Property.

               Notwithstanding any other provision of this Agreement, if a REMIC election has been
made, no Mortgaged Property held by a REMIC shall be rented (or allowed to continue to be
rented) or otherwise used for the production of income by or on behalf of the related trust
or sold in such a manner or pursuant to any terms that would (i) cause such Mortgaged
Property to fail to qualify at any time as “foreclosure property” within a meaning of
Section 860G(a)(8) of the Code, (ii) subject to the related trust to the imposition of any
federal or state income taxes on “net income from foreclosure property” with respect to such
Mortgaged Property within the meaning of Section 860G(c) of the Code, or (iii) cause the
sale of such Mortgaged Property to result in the receipt by the related trust or any income
from non-permitted assets as described in Section 860F(a) (2)(B) of the Code, unless
Countrywide has agreed to indemnify and hold harmless the related trust with respect to the
imposition of any such taxes.”

   (O) Effective as of February 19, 2004, Article IV of the Agreement shall be amended by
inserting the following:

               “Section 4.20 Compliance with REMIC Provisions. If a REMIC election has
been made with respect to the arrangement under which the Mortgage Loans and REO Property
are held, Countrywide shall not take any action, cause the REMIC to take any action or fail
to take (or fail to cause to be taken) any action that, under the REMIC Provisions, if taken
or not taken, as the case may be could (i) endanger the status of the REMIC as a REMIC or
(ii) result in the imposition of a tax upon the REMIC (including but not limited to the tax
on “prohibited transactions” as defined in Section 860F(a)(2) of the Code and the tax on
“contribution” to a REMIC set forth in Section 860G(d) of the Code unless Countrywide has
received an Opinion of Counsel (at the expense of the party seeking to take such actions) to
the effect that the contemplated action will not endanger such REMIC status or result in the
imposition of any such tax.”

   (P) Effective as of February 19, 2004, Section 5.03 shall be amended by deleting the
first sentence of the second paragraph in its entirety and replacing it with the following:

               “Countrywide’s obligation to make such advances as to any Mortgage Loan will
continue through the earliest of: (a) the repurchase of the Mortgage Loan by Countrywide
pursuant to Section 3.03, or; (b) the Remittance Date following the ultimate liquidation of
the Mortgage Loan and the related REO Property. In no event shall Countrywide be obligated
to make an advance under this Section 5.03 if at the time of such advance it reasonably
determines that such advance will be unrecoverable.”

   (Q) Effective as of February 19, 2004, Article VIII of the Agreement shall be amended by
inserting the following:

6

 

               “Section 8.15 Reconstitution of Mortgage Loans.

               (a) Countrywide acknowledges and the Purchaser agrees that with respect to some or all
of the Mortgage Loans, the Purchaser may effect either:

                         (i) one or more sales of the Mortgage Loans as whole loan transfers (each,
a “Whole Loan Transfer”); and/or

                         (ii) one or more sales of the Mortgage Loans as public or private
pass-through transfers (each, a “Pass-Through Transfer”),

provided that no such transfer shall be effective if such transfer would result in there
being more than three (3) “Purchasers” outstanding hereunder with respect to any Mortgage
Loan Package including the initial Purchaser.

               (b) With respect to each Whole Loan Transfer or Pass-Through Transfer, as the case may,
Countrywide agrees:

                         (i) to reasonably cooperate with the Purchaser and any prospective
purchaser with respect to all reasonable requests and due diligence procedures
including participating in mandatory meetings with rating agencies, bond
insurers and such other parties as may be necessary and as the Purchaser shall
reasonably designate and participating in mandatory meetings with prospective
purchasers of the Mortgage Loans or interests therein and providing necessary
information as reasonably requested by such purchasers;

                         (ii) to execute all necessary agreements reasonably required to be executed
by Countrywide in connection with such Pass-Through Transfer or Whole Loan
Transfer (including a mutually acceptable assignment assumption and recognition
agreement) provided that any such agreements be consistent with the terms hereof
and impose no greater duties, liabilities or obligations upon Countrywide or
provide any lower benefits to Countrywide than those set forth herein and
provided that Countrywide is given an opportunity to review and reasonably
negotiate in good faith the content of any such agreements;

                         (iii) to reasonably deliver to the Purchaser and to any Person designated
by the Purchaser for inclusion in any prospectus or other offering material such
publicly available information regarding Countrywide, its financial condition
and its mortgage loan delinquency, foreclosure and loss experience and any
additional information reasonably requested by the Purchaser and necessary for
such Whole Loan Transfer or Pass-Through Transfer, and which Countrywide are
capable of providing without unreasonable effort or expense, and to indemnify
the Purchaser for material misstatements or omissions contained in such
information; and

                         (iv) to reasonably deliver to the Purchaser, and to any Person designated
by the Purchaser, such required legal documents and in-house Opinions of Counsel
as are customarily delivered by originators or servicers, as the case may be,
and reasonably and mutually determined by the Purchaser and Countrywide to be
necessary in connection with Whole Loan Transfers or Pass-Through Transfers, as
the case may be, such in-house Opinions of Counsel for a Pass-Through Transfer
to be in the form reasonably acceptable to the Purchaser and Countrywide, it
being understood that the cost of any opinions of outside counsel that may be
required for a Whole Loan Transfer or Pass-Through Transfer, as the case may be,
shall be the sole responsibility of the Purchaser.

7

 

               (c) The Purchaser shall reimburse Countrywide for any and all expenses, costs and fees
incurred by Countrywide in response to any requests for information or assistance under this
Section.”

     SECTION 3. Limited Effect. Except as expressly amended and modified by this
Amendment, the Agreement shall continue in full force and effect in accordance with its terms.
Reference to this Amendment need not be made in the Agreement or any other instrument or document
executed in connection therewith or herewith, or in any certificate, letter or communication issued
or made pursuant to, or with respect to, the Agreement, any reference in any of such
items to the Agreement being sufficient to refer to the Agreement as amended hereby.

     SECTION 4. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO THE CONFLICT OF LAWS
DOCTRINE APPLIED IN SUCH STATE.

     SECTION 5. Counterparts. This Amendment may be executed by each of the parties hereto
on any number of separate counterparts, each of which shall be an original and all of which taken
together shall constitute one and the same instrument.

[Signature Page Follows]

8

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered
by their duly authorized officers as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	COUNTRYWIDE HOME LOANS, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ COUNTRYWIDE HOME LOANS, INC.	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	RWT HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ RWT HOLDINGS, INC.	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

9

 

ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

For

Mortgage Loan Purchase and Servicing Agreement

     THIS ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT, dated as of December 15, 2005 (the
“Assignment”), is entered into among RWT Holdings, Inc. (the “Assignor”), Countrywide Home Loans,
Inc., as the seller (the “Seller”), Countrywide Home Loans Servicing L.P., as the servicer
(“Servicer”), and DLJ Mortgage Capital, Inc. (the “Assignee”).

RECITALS

     WHEREAS, RWT Holdings, Inc. (“RWT”) and the Seller have entered into a certain Mortgage Loan
Purchase and Servicing Agreement, dated as of April 1, 1998 (the “Mortgage Loan Purchase and
Servicing Agreement”), as amended by the Amendment Number One to such agreement dated February 27,
2004 (the “Amendment Number One,” and together with the Mortgage Loan Purchase and Servicing
Agreement, the “Purchase and Servicing Agreement”), attached as Exhibit I hereto and pursuant to
the Purchase Confirmation(s) and Trade Confirmation(s) issued under the Purchase and Servicing
Agreement and listed in Appendix A hereto (the “Purchase Confirmation(s)” and “Trade
Confirmation(s),” respectively and together with the Purchase and Servicing Agreement, the
“Agreements”) RWT acquired from the Seller certain Mortgage Loans (the “Mortgage Loans”); and

     WHEREAS, the Seller and the Servicer entered into an Assignment Agreement dated January 1,
2001, whereby Seller assigned to Servicer its rights and obligations as servicer under the Purchase
and Servicing Agreement, and Servicer has agreed to service the Mortgage Loans according to the
provisions of the Purchase and Servicing Agreement; and

     WHEREAS, the Assignor has agreed to sell, assign and transfer to Assignee all of its right,
title and interest in certain of the Mortgage Loans (the “Specified Mortgage Loans”) listed on the
mortgage loan schedule attached as Exhibit II hereto (the “Specified Mortgage Loan Schedule”) and
its rights under the Purchase and Servicing Agreement with respect to the Specified Mortgage Loans,
and the Servicer agreed to service such Specified Mortgage Loans; and

     WHEREAS, the parties hereto have agreed that the Specified Mortgage Loans shall be subject to
the terms of this Assignment.

     NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and
valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties
agree as follows:

 

 

     1. Assignment and Assumption.

          (a) Effective on and as of the date hereof, the Assignor hereby sells, pledges, assigns and
transfers to the Assignee all of its right, title and interest in the Specified Mortgage Loans and
all of its rights and obligations provided under the Purchase and Servicing Agreement to the extent
relating to the Specified Mortgage Loans, the Assignee hereby accepts such assignment from the
Assignor, and the Seller and the Servicer hereby acknowledge such assignment and assumption.

          (b) The Assignor is the sole owner of record and holder of each Specified Mortgage Loans and
the indebtedness evidenced by the related Mortgage Note. Immediately prior to the transfer and
assignment to the Assignee on the date hereof, each Specified Mortgage Loan, including the related
Mortgage Note and the related Mortgage, were not subject to an assignment or pledge, and the
Assignor had good and marketable title to and was the sole owner thereof and had full right to
transfer and sell each Specified Mortgage Loan to the Assignee free and clear of any encumbrance,
equity, lien, pledge, charge, claim or security interest and has the full right and authority
subject to no interest or participation of, or agreement with, any other party, to sell and assign
the Specified Mortgage Loan and following the sale of the Specified Mortgage Loan, the Assignee
will own such Specified Mortgage Loan free and clear of any encumbrance, equity, participation
interest, lien, pledge, charge, claim or security interest.

     2. Recognition of the Assignee.

     From and after the date hereof, the Seller and the Servicer shall recognize the Assignee as
the holder of the rights and benefits of the Purchaser, as defined in the Purchase and Servicing
Agreement, with respect to the Specified Mortgage Loans and the Servicer will service the Specified
Mortgage Loans for the Assignee as if the Assignee and the Servicer had entered into a separate
servicing agreement for the servicing of the Specified Mortgage Loans in the form of the Purchase
and Servicing Agreement (as amended hereby) with the Assignee as the Purchaser thereunder, the
terms of which Purchase and Servicing Agreement are incorporated herein by reference and amended
hereby. It is the intention of the parties hereto that this Assignment will be a separate and
distinct agreement, and the entire agreement, between the parties hereto to the extent of the
Specified Mortgage Loans and shall be binding upon and for the benefit of the respective successors
and assigns of the parties hereto.

     3. Amendment to the Purchase and Servicing Agreement.

     The Purchase and Servicing Agreement is hereby amended as set forth in Appendix B
hereto with respect to the Specified Mortgage Loans.

     4. Representations and Warranties.

          (a) The Assignee represents and warrants that it is a sophisticated investor able to evaluate
the risks and merits of the transactions contemplated hereby, and that it has not relied in
connection therewith upon any statements or representations of the Seller or the Assignor other
than those contained in the Purchase and Servicing Agreement or this Assignment.

 

 

          (b) Each of the parties hereto represents and warrants that it is duly and legally authorized
to enter into this Assignment.

          (c) Each of the parties hereto represents and warrants that this Assignment has been duly
authorized, executed and delivered by it and (assuming due authorization, execution and delivery
thereof by each of the other parties hereto) constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms, except as such enforcement may be limited by
bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (regardless of whether such
enforcement is considered in a proceeding in equity or at law).

     5. Continuing Effect.

     Except as contemplated hereby, the Agreements shall remain in full force and effect in
accordance with their terms. This Assignment constitutes a Reconstitution Agreement as
contemplated in Section 8.15 of the Purchase and Servicing Agreement and the Reconstitution Date
shall be the date hereof with respect to the Specified Mortgage Loans listed on Exhibit I on the
date hereof.

     6. Governing Law.

     This Assignment and the rights and obligations hereunder shall be governed by and construed in
accordance with the internal laws of the State of New York.

     7. Notices.

     Any notices or other communications permitted or required under the Agreements to be made to
the Assignor and Assignee shall be made in accordance with the terms of the Agreements and shall be
sent to the Assignor and Assignee as follows:

RWT Holdings, Inc.

One Belvedere Place, Suite 310

Mill Valley, CA 94941

Attn:

DLJ Mortgage Capital, Inc.

Eleven Madison Avenue, 4th Floor

New York, NY 10010

Attn:

or to such other address as may hereafter be furnished by the Assignor or Assignee to the other
parties in accordance with the provisions of the Purchase and Servicing Agreement.

     8. Counterparts.

     This Assignment may be executed in counterparts, each of which when so executed shall be
deemed to be an original and all of which when taken together shall constitute one and the same
instrument.

 

 

     9. Definitions.

     Any capitalized term used but not defined in this Assignment has the same meaning as in the
Agreements.

[Signature Page Follows]

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Assignment the day and year
first above written.

	 	 	 	 	 
	 	 	ASSIGNOR:
	 
	 	 	 	 
	 	 	RWT HOLDINGS, INC.
	 
	 	 	 	 
	 	 	/s/ RWT HOLDINGS, INC.
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	ASSIGNEE:
	 
	 	 	 	 
	 	 	DLJ MORTGAGE CAPITAL, INC.
	 
	 	 	 	 
	 	 	/s/ DLJ MORTGAGE CAPITAL, INC.
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	SELLER:
	 
	 	 	 	 
	 	 	COUNTRYWIDE HOME LOANS, INC.
	 
	 	 	 	 
	 	 	/s/ COUNTRYWIDE HOME LOANS, INC.
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	SERVICER:
	 
	 	 	 	 
	 	 	COUNTRYWIDE HOME LOANS SERVICING, L.P.
	 
	 	 	 	 
	 	 	By, Countrywide GP, Inc., its general partner
	 
	 	 	 	 
	 	 	/s/ COUNTRYWIDE GP, INC.
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

APPENDIX A

	 	 	 
	Purchase Confirmation(s) Dates	 	Trade Confirmation(s) Dates
	 
	 	11/29/05

 

 

APPENDIX B

     1. The definition of “Servicing Fee Rate” is revised to read as follows:

     “Servicing Fee Rate: With respect to any Mortgage Loan, a rate per annum,
equal to 0.250% prior to the            initial Interest Adjustment Date, and thereafter
0.375%.”

     2. Section 3.02 is hereby revised to delete the “and” at the end of Section 3.02(tt),
deleting the period at the end of Section 3.02(uu) and replacing it with a “;” and adding the
following representations and warranties to the end of such section:

     “(vv) No Mortgage Loan which is secured by property located in the State of New Mexico
is a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act, which
became effective January 1, 2004;

     (ww) No Mortgage Loan which is secured by property located in the State of Kentucky is
a “High-Cost Home Loan” as defined in the Kentucky House Bill 287, which became effective
June 24, 2003;

     (xx) No Mortgage Loan that is secured by property located in the State of Illinois is
a “High-Risk Home Loan” as defined in the Illinois High Risk Home Loan Act effective January
1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.); and none of the Mortgage Loans that are
secured by property located in the State of Illinois are in violation of the provisions of
the Illinois Interest Act (815 Ill. Comp. Stat. 205/1 et. seq.);

     (yy) No Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a “High Cost Home Loan” as defined in Part 40 and Part 32.00 et seq. and
209 C.M.R. Sections 40.01 et seq., which became effective March 22, 2001.

3. Section 4.01 shall be amended by deleting the first sentence of the second paragraph and
replacing it with the following:

               “In accordance with the terms of this Agreement, Countrywide may waive, modify or vary
any term of any Mortgage Loan or consent to the postponement of strict compliance with any
such term or in any manner grant indulgence to any Mortgagor if in Countrywide’s reasonable
and prudent determination such waiver, modification, postponement or indulgence is not
materially adverse to Purchaser.”

4. Section 4.03(a) shall be amended by deleting it in its entirety and replacing it with the
following:

               “(a) Foreclosure. Countrywide shall use reasonable efforts to foreclose upon
or otherwise comparably convert the ownership of properties securing such of the Mortgage
Loans as come into and continue in default and as to which no satisfactory arrangements can
be made for collection of delinquent payments. Countrywide shall use reasonable efforts to
realize upon defaulted Mortgage Loans, in such manner as will maximize the receipt of
principal and interest by Purchaser, taking into account, among other things, the timing of
foreclosure proceedings. The foregoing is subject to the provisions that, in any case in
which Mortgaged Property shall have suffered damage,

 

 

Countrywide shall not be required to expend its own funds toward the restoration of such
property unless it shall determine in its discretion (i) that such restoration will increase
the proceeds of liquidation of the related Mortgage Loan to Purchaser after reimbursement to
itself for such expenses, and (ii) that such expenses will be recoverable by Countrywide
through PMI Proceeds, Other Insurance Proceeds or Liquidation Proceeds from the related
Mortgaged Property. Countrywide shall notify Purchaser in writing of the commencement of
foreclosure proceedings. Such notice may be contained in the reports prepared by
Countrywide and delivered to Purchaser pursuant to the terms and conditions of this
Agreement. Countrywide shall be responsible for all costs and expenses incurred by it in
any foreclosure proceedings; provided, however, that it shall be entitled to reimbursement
thereof from proceeds from the related Mortgaged Property.”

5. Section 4.13(c) shall be amended by deleting the first sentence of the second paragraph
in its entirety and replacing it with the following:

               Each REO Disposition shall be carried out by Countrywide at such price and upon such terms and
conditions as Countrywide deems to be in the best interest of Purchaser.

 

 

APPENDIX C

REGULATION AB COMPLIANCE ADDENDUM

TO ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

(SERVICING-RETAINED)

     This Regulation AB Compliance Addendum (this “Reg AB Addendum”), is dated as of December 15,
2005, by and among DLJ Mortgage Capital, Inc. (“Purchaser”), Countrywide Home Loans, Inc.
(“Seller”) and Countrywide Home Loans Servicing L.P. (the “Servicer”), to that certain Assignment,
Assumption and Recognition Agreement, dated as of December 15, 2005, by and among RWT Holdings,
Inc., the Seller, the Servicer., and the Purchaser (as amended, modified or supplemented, the
“Agreement”).

WITNESSETH

     WHEREAS, the Seller, the Servicer and the Purchaser have agreed to adopt an addendum to the
Agreement to reflect the intention of the parties to comply with Regulation AB.

     NOW, THEREFORE, in consideration of the mutual promises and mutual obligations set forth
herein, the Seller, the Servicer and the Purchaser hereby agree as follows:

ARTICLE I

DEFINED TERMS

     Capitalized terms used but not defined herein shall have the meanings assigned to such terms
in the Agreement. The following terms shall have the meanings set forth below, unless the context
clearly indicates otherwise:

     Commission: The United States Securities and Exchange Commission.

     Company Information: As defined in Section 10.07(a)(i)(A).

     Depositor: The depositor, as such term is defined in Regulation AB, with respect to
any Securitization Transaction.

     Exchange Act: The Securities Exchange Act of 1934, as amended.

     Master Servicer: With respect to a Securitization Transaction, the “master servicer”, if any,
identified by the Purchaser and identified in related transaction documents.

     Qualified Correspondent: Any Person from which the Seller purchased Mortgage Loans,
provided that the following conditions are satisfied: (i) such Mortgage Loans were either (x)

 

 

originated pursuant to an agreement between the Seller and such Person that contemplated that
such Person would underwrite mortgage loans from time to time, for sale to the Seller, in
accordance with underwriting guidelines designated by the Seller (“Designated Guidelines”) or
guidelines that do not vary materially from such Designated Guidelines or (y) individually
re-underwritten by the Seller to the Designated Guidelines at the time such Mortgage Loans were
acquired by the Seller; (ii) either (x) the Designated Guidelines were, at the time such Mortgage
Loans were originated, used by the Seller in origination of mortgage loans of the same type as the
Mortgage Loans for the Seller’s own account or (y) the Designated Guidelines were, at the time such
Mortgage Loans were underwritten, designated by the Seller on a consistent basis for use by lenders
in originating mortgage loans to be purchased by the Seller; and (iii) the Seller employed, at the
time such Mortgage Loans were acquired by the Seller, pre-purchase or post-purchase quality
assurance procedures (which may involve, among other things, review of a sample of mortgage loans
purchased during a particular time period or through particular channels) designed to ensure that
either Persons from which it purchased mortgage loans properly applied the underwriting criteria
designated by the Seller or the Mortgage Loans purchased by the Seller substantially complied with
the Designated Guidelines.

     Reconstitution: Any Securitization Transaction or Whole Loan Transfer.

     Reconstitution Agreements: The agreement or agreements entered into by the Servicer
and the Purchaser and/or certain third parties on the Reconstitution Date or Dates with respect to
any or all of the Specified Mortgage Loans serviced hereunder, in connection with a Whole Loan
Transfer or a Pass-Through Transfer as set forth in Section 8.15 of the Mortgage Loan Purchase and
Servicing Agreement. Such agreement or agreements shall prescribe the rights and obligations of the
Servicer in servicing the related Specified Mortgage Loans.

     Regulation AB: Subpart 229.1100 – Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to such clarification
and interpretation as have been provided by the Commission in the adopting release (Asset-Backed
Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the
staff of the Commission, or as may be provided by the Commission or its staff from time to time.

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

     Securitization Transaction. Any transaction subject to Regulation AB involving either
(1) a sale or other transfer of some or all of the Specified Mortgage Loans directly or indirectly
to an issuing entity in connection with an issuance of publicly offered, rated mortgage-backed
securities or (2) an issuance of publicly offered, rated securities, the payments on which are
determined primarily by reference to one or more portfolios of residential mortgage loans
consisting, in whole or in part, of some or all of the Specified Mortgage Loans.

     Servicing Criteria: The “servicing criteria” set forth in Item 1122(d) of Regulation
AB, as such may be amended from time to time.

     Static Pool Information: Static pool information as described in Item 1105(a)(1)-(3)
and 1105(c) of Regulation AB.

 

 

     Subcontractor: Any vendor, subcontractor or other Person that is not responsible for
the overall servicing (as “servicing” is commonly understood by participants in the mortgage-backed
securities market) of Specified Mortgage Loans but performs one or more discrete functions
identified in Item 1122(d) of Regulation AB with respect to Specified Mortgage Loans under the
direction or authority of the Servicer or a Subservicer.

     Subservicer: Any Person that services Specified Mortgage Loans on behalf of the
Servicer or any Subservicer and is responsible for the performance (whether directly or through
Subservicers or Subcontractors) of a substantial portion of the material servicing functions
required to be performed by the Servicer under this Agreement or any Reconstitution Agreement that
are identified in Item 1122(d) of Regulation AB.

     Third-Party Originator: Each Person, other than a Qualified Correspondent, that
originated Specified Mortgage Loans acquired by the Seller.

10. Compliance With Regulation AB.

     10.01. Intent of the Parties; Reasonableness.

     The Assignee, the Seller and the Servicer acknowledge and agree that the purpose of
Section 10 of this Agreement is to facilitate compliance by the Assignee and any Depositor with the
provisions of Regulation AB and related rules and regulations of the Commission. Neither the
Assignee nor any Depositor shall exercise its right to request delivery of information or other
performance under these provisions other than in good faith, or for purposes other than compliance
with the Securities Act, the Exchange Act and the rules and regulations of the Commission
thereunder. The Seller and the Servicer acknowledge that interpretations of the requirements of
Regulation AB may change over time, whether due to interpretive guidance provided by the Commission
or its staff or otherwise or reasonable advice of counsel acceptable to the Assignee and the Seller
and the Servicer agree to negotiate in good faith with the Assignee or any Depositor with regard
to any reasonable requests for delivery of information under these provisions on the basis of
evolving interpretations of Regulation AB. In connection with any Securitization Transaction, the
Seller and the Servicer shall cooperate fully with the Assignee to deliver to the Assignee
(including any of its assignees or designees) and any Depositor, any and all statements, reports,
certifications, records and any other information necessary to permit the Assignee or such
Depositor to comply with the provisions of Regulation AB, together with such disclosures relating
to the Seller, the Servicer, any Subservicer, any Third-Party Originator and the Specified Mortgage
Loans, or the servicing of the Specified Mortgage Loans, necessary in order to effect such
compliance.

     The Assignee agrees that it will cooperate with the Seller and Servicer and provide sufficient
and timely notice of any information requirements pertaining to a Securitization Transaction. The
Assignee will make all reasonable efforts to limit requests for information, reports or any other
materials to items required for compliance with Regulation AB, and shall not request information
which is not required for such compliance.

     10.02.
Additional Representations and Warranties of the Seller and the Servicer.

     (a) Each of the Seller and Servicer shall be deemed to represent to the Purchaser
and to any Depositor, as of the date on which information is first provided to the Purchaser or any

 

 

Depositor under Section 10.03 that, except as disclosed in writing to the Purchaser or such
Depositor prior to such date: (i) the Seller and the Servicer are not aware and have not received
notice that any default, early amortization or other performance triggering event has occurred as
to any other securitization due to any act or failure to act of the Seller or Servicer; (ii) the
Servicer has not been terminated as servicer in a residential mortgage loan securitization, either
due to a servicing default or to application of a servicing performance test or trigger; (iii) no
material noncompliance with the applicable Servicing Criteria with respect to other securitizations
of residential mortgage loans involving the Servicer has been disclosed or reported by the
Servicer; (iv) no material changes to the Servicer’s policies or procedures with respect to the
servicing function it will perform under this Agreement and any Reconstitution Agreement for
mortgage loans of a type similar to the Specified Mortgage Loans have occurred during the
three-year period immediately preceding the related Securitization Transaction; (v) there are no
aspects of the Servicer’s financial condition that could have a material adverse effect on the
performance by the Servicer of its servicing obligations under this Agreement or any Reconstitution
Agreement; (vi) there are no material legal or governmental proceedings pending (or known to be
contemplated) against the Seller, the Servicer, any Subservicer or any Third-Party Originator; and
(vii) there are no affiliations, relationships or transactions relating to the Seller, the
Servicer, any Subservicer or any Third-Party Originator with respect to any Securitization
Transaction and any party thereto identified by the related Depositor of a type described in Item
1119 of Regulation AB.

     (b) If so requested by the Assignee or any Depositor on any date following the date
on which information is first provided to the Assignee or any Depositor under Section 10.03, each
of the Seller and the Servicer shall, use its reasonable best efforts to within five (5) Business
Days, but in no event later than ten (10) Business Days following such request, confirm in writing
the accuracy of the representations and warranties set forth in paragraph (a) of this Section or,
if any such representation and warranty is not accurate as of the date of such request, provide
reasonably adequate disclosure of the pertinent facts, in writing, to the requesting party.

     Section 10.03. Information to Be Provided by theSeller and the Servicer.

     In connection with any Securitization Transaction the Seller and the Servicer, as applicable,
shall (i) use its reasonable best efforts to within five (5) Business Days, but in no event later
than ten (10) Business Days, following request by the Assignee or any Depositor, provide to the
Assignee and such Depositor (or, as applicable, cause each Third-Party Originator and each
Subservicer to provide), in writing reasonably required for compliance with Regulation AB, the
information and materials specified in paragraphs (a), (b), (c) and (f) of this Section 10.03, and
(ii) as promptly as practicable following notice to or discovery by the Seller or Servicer, provide
to the Assignee and any Depositor (as required under Regulation AB) the information specified in
paragraph (d) of this Section 10.03.

     (a) If
so requested by the Assignee or any Depositor, the Seller shall provide such
information regarding (i) the Seller, as originator of the Specified Mortgage Loans (including as
an acquirer of Specified Mortgage Loans from a Qualified Correspondent, if applicable), or (ii) as
applicable, each Third-Party Originator, and (iii) as applicable, each Subservicer, as is requested
for the purpose of compliance with Items 1103(a)(1), 1105 (subject to paragraph (b) below), 1110,
1117 and 1119 of Regulation AB. Such information shall include, at a minimum:

 

 

     (A) the originator’s form of organization;

     (B) to the extent material, a description of the originator’s origination program and
how long the originator has been engaged in originating residential mortgage loans, which
description shall include a discussion of the originator’s experience in originating
mortgage loans of a similar type as the Specified Mortgage Loans; if material, information
regarding the size and composition of the originator’s origination portfolio; and
information that may be material, to an analysis of the performance of the Specified
Mortgage Loans, including the originators’ credit-granting or underwriting criteria for
mortgage loans of similar type(s) as the Specified Mortgage Loans and such other information
as the Assignee or any Depositor may reasonably request for the purpose of compliance with
Item 1110(b)(2) of Regulation AB;

     (C) a description of any material legal or governmental proceedings pending (or known
to be contemplated by a governmental authority) against the Seller, each Third-Party
Originator, as applicable, and each Subservicer; and

     (D) a description of any affiliation or relationship between the Seller, each
Third-Party Originator, if applicable, each Subservicer and any of the following parties to
a Securitization Transaction, as such parties are identified to the Seller by the Assignee
or any Depositor in writing within in ten days in advance of such Securitization
Transaction:

(1)   the sponsor;

(2)   the depositor;

(3)   the issuing entity;

(4)   any servicer;

(5)   any trustee;

(6)   any originator;

(7)   any significant obligor;

(8)   any enhancement or support provider; and

(9)   any other material transaction party.

     (b) If so requested by the Assignee or any Depositor and as Required under Regulation AB, the
Seller shall provide (or, as applicable, cause each Third-Party Originator to provide) Static Pool
Information with respect to the mortgage loans (of a similar type as the Specified Mortgage Loans,
as reasonably identified by the Assignee as provided below) originated by (i) the Seller, if the
Seller is an originator of Specified Mortgage Loans (including as an acquirer of Specified Mortgage
Loans from a Qualified Correspondent, if applicable), and/or (ii) as applicable, each Third-Party
Originator. Such Static Pool Information shall be prepared by the Seller (or, if applicable, the
Third-Party Originator) on the basis of its reasonable, good faith interpretation of the
requirements of Item 1105(a)(1)-(3) of Regulation AB. To the extent that there is reasonably
available to the Seller (or Third-Party Originator, as applicable) Static Pool Information with
respect to more than one mortgage loan type, the Assignee or any Depositor shall be entitled to
specify whether some or all of such information shall be provided pursuant to this paragraph. The
content of such Static Pool Information may be in the form customarily provided by the Seller, and
need not be customized for the Assignee or any Depositor. Such Static Pool Information for each
vintage origination year or prior securitized pool, as applicable, shall be presented in increments
no less frequently than quarterly over the life

 

 

of the mortgage
loans included in the vintage origination year or prior securitized pool. The most recent periodic
increment must be as of a date no later than 135 days prior to the date of the prospectus or other
offering document in which the Static Pool Information is to be included or incorporated by
reference. The Static Pool Information shall be provided in an electronic format that provides a
permanent record of the information provided, such as a portable document format (pdf) file, or
other such electronic format.

     If so requested by the Assignee or any Depositor, the Seller shall provide (or, as applicable,
cause each Third-Party Originator to provide), at the expense of the requesting party (to the
extent of any additional incremental expense associated with delivery pursuant to this Agreement),
procedures letters of certified public accountants pertaining to Static Pool Information relating
to prior securitized pools for securitizations closed on or after January 1, 2006 or, in the case
of Static Pool Information with respect to the Seller’s or, if applicable, Third-Party Originator’s
originations or purchases, to calendar months commencing January 1, 2006, as the Assignee or such
Depositor shall reasonably request. Such statements and letters shall be addressed to and be for
the benefit of such parties as the Assignee or such Depositor and the Seller may mutually agree
upon as reliant on the Static Pool Information, which may include, by way of example, any Sponsor,
any Depositor, any broker dealer acting as underwriter, placement agent or initial purchaser with
respect to a Securitization Transaction. Any such statement or letter may take the form of a
standard, generally applicable document accompanied by a reliance letter authorizing reliance by
the addressees designated by the Assignee or such Depositor.

     (c) If reasonably requested by the Assignee or any Depositor, the Servicer shall provide such
information regarding the Servicer, as servicer of the Specified Mortgage Loans, and each
Subservicer (each Servicer and each Subservicer, for purposes of this paragraph, a “Servicer”), as
is reasonably requested for the purpose of compliance with Items 1108 of Regulation AB. Such
information shall include, at a minimum:

     (A) the Servicer’s form of organization;

     (B) a description of how long the Servicer has been servicing residential mortgage
loans; a general discussion of the Servicer’s experience in servicing assets of any type as
well as a more detailed discussion of the Servicer’s experience in, and procedures for, the
servicing function it will perform under this Agreement and any Reconstitution Agreements;
information regarding the size, composition and growth of the Servicer’s portfolio of
residential mortgage loans of a type similar to the Specified Mortgage Loans and information
on factors related to the Servicer that may be material, to any analysis of the servicing of
the Specified Mortgage Loans or the related asset-backed securities, as applicable,
including, without limitation:

(1) whether any prior securitizations of mortgage loans of a type similar to the
Specified Mortgage Loans involving the Servicer have defaulted or experienced an
early amortization or other performance triggering event because of servicing during
the three-year period immediately preceding the related Securitization Transaction;

(2) the extent of outsourcing the Servicer utilizes;

 

 

(3) whether there has been previous disclosure of material noncompliance with the
applicable servicing criteria with respect to other securitizations of residential
mortgage loans involving the Servicer as a servicer during the three-year period
immediately preceding the related Securitization Transaction;

(4) whether the Servicer has been terminated as servicer in a residential mortgage
loan securitization, either due to a servicing default or to application of a
servicing performance test or trigger; and

(5) such other information as the Assignee or any Depositor may reasonably request
for the purpose of compliance with Item 1108(b)(2) of Regulation AB;

     (C) a description of any material changes during the three-year period immediately
preceding the related Securitization Transaction to the Servicer’s policies or procedures
with respect to the servicing function it will perform under this Agreement and any
Reconstitution Agreements for mortgage loans of a type similar to the Specified Mortgage
Loans;

     (D) information regarding the Servicer’s financial condition, to the extent that there
is a material risk that an adverse financial event or circumstance involving the Servicer
could have a material adverse effect on the performance by the Servicer of its servicing
obligations under this Agreement or any Reconstitution Agreement;

     (E) information regarding advances made by the Servicer on the Specified Mortgage Loans
and the Servicer’s overall servicing portfolio of residential mortgage loans for the
three-year period immediately preceding the related Securitization Transaction, which may be
limited to a statement by an authorized officer of the Servicer to the effect that the
Servicer has made all advances required to be made on residential mortgage loans serviced by
it during such period, or, if such statement would not be accurate, information regarding
the percentage and type of advances not made as required, and the reasons for such failure
to advance;

     (F) a description of the Servicer’s processes and procedures designed to address any
special or unique factors involved in servicing loans of a similar type as the Specified
Mortgage Loans;

     (G) a description of the Servicer’s processes for handling delinquencies, losses,
bankruptcies and recoveries, such as through liquidation of mortgaged properties, sale of
defaulted mortgage loans or workouts; and

     (H) information as to how the Servicer defines or determines delinquencies and
charge-offs, including the effect of any grace period, re-aging, restructuring, partial
payments considered current or other practices with respect to delinquency and loss
experience.

     (d) If reasonably requested by the Assignee or any Depositor for the purpose of satisfying its
reporting obligation under the Exchange Act with respect to any class of asset-backed securities,
each of the Seller and the Servicer, as applicable, shall (or shall cause each Subservicer and, if
applicable, any Third-Party Originator to) (i) notify the Assignee and any

 

 

Depositor in writing of (A) any material litigation or governmental proceedings pending
against the Seller, the Servicer, any Subservicer or any Third-Party Originator and (B) any
affiliations or relationships that develop following the closing date of a Securitization
Transaction between the Seller, the Servicer, any Subservicer or any Third-Party Originator and any
of the parties specified in clause (D) of paragraph (a) of this Subsection (and any other parties
identified in writing by the requesting party) with respect to such Securitization Transaction, and
(ii) provide to the Assignee and any Depositor a description of such proceedings, affiliations or
relationships.

     (e) As a condition to the succession to the Servicer or any Subservicer as servicer or
subservicer under this Agreement or any applicable Reconstitution Agreement related thereto by any
Person (i) into which the Servicer or such Subservicer may be merged or consolidated, or (ii) which
may be appointed as a successor to the Servicer or any Subservicer, the Servicer shall provide to
the Assignee and any Depositor, at least 15 calendar days prior to the effective date of such
succession or appointment, (x) written notice to the Assignee and any Depositor of such succession
or appointment and (y) in writing, all information reasonably requested by the Assignee or any
Depositor in order to comply with its reporting obligation under Item 6.02 of Form 8-K with respect
to any class of asset-backed securities.

     (f) In addition to such information as the Servicer, is obligated to provide pursuant to other
provisions of this Agreement, if reasonably requested by the Assignee or Depositor, and to the
extent permitted by applicable law, the Servicer shall provide such information which is reasonably
available to the Servicer without unreasonable effort or expense, regarding the performance or
servicing of the Specified Mortgage Loans as is reasonably required to facilitate preparation of
distribution reports in accordance with Item 1121 of Regulation AB.

     (g) If reasonably requested by the Assignee or any Depositor, the Seller and the Servicer
shall provide to the Assignee or any Depositor, such additional information as they may reasonably
request, including evidence of the authorization of the person signing any certification or
statement, financial information and reports, and such other information related to the Seller or
Servicer or its performance hereunder.

     Section 10.04. Servicer Compliance Statement.

     On or before March 5 of each calendar year, commencing in 2007, the Servicer shall deliver to
the Assignee, any Master Servicer and any Depositor a statement of compliance addressed to the
Assignee and such Depositor and signed by an authorized officer of the Servicer, to the effect that
(i) a review of the Servicer’s servicing activities during the immediately preceding calendar year
(or applicable portion thereof) and of its performance under the servicing provisions of this
Agreement and any applicable Reconstitution Agreement during such period has been made under such
officer’s supervision, and (ii) to the best of such officers’ knowledge, based on such review, the
Servicer has fulfilled all of its servicing obligations under this Agreement and any applicable
Reconstitution Agreement in all material respects throughout such calendar year (or applicable
portion thereof) or, if there has been a failure to fulfill any such obligation in any material
respect, specifically identifying each such failure known to such officer and the nature and the
status thereof.

     Section 10.05. Report on Assessment of Compliance and Attestation.

 

 

     (a) On or before March 5 of each calendar year, commencing in 2007, the Servicer shall:

     (i) deliver to the Assignee, any Master Servicer and any Depositor a report regarding
the Servicer’s assessment of compliance with the Servicing Criteria during the immediately
preceding calendar year, as required under Rules 13a-18 and 15d-18 of the Exchange Act and
Item 1122 of Regulation AB. Such report shall be addressed to the Assignee and such
Depositor and signed by an authorized officer of the Servicer, and shall address each of the
applicable Servicing Criteria as specified on the form of certification attached as Exhibit
III hereto.

     (ii) deliver to the Assignee and any Depositor a report of a registered public
accounting firm that attests to, and reports on, the assessment of compliance made by the
Servicer and delivered pursuant to the preceding paragraph. Such attestation shall be in
accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and
the Exchange Act;

     (iii) cause each Subservicer, and each Subcontractor determined by the Servicer
pursuant to Section 10.06(b) to be “participating in the servicing function” within the
meaning of Item 1122 of Regulation AB (each, a “Participating Entity”), to deliver to the
Assignee and any Depositor an assessment of compliance and accountants’ attestation as and
when provided in paragraphs (a) and (b) of this Section; and

     (iv) deliver to the Assignee and any Depositor or any other Person that will be
responsible for signing the certification (a “Sarbanes Certification”) required by Rules
13a-14(d) and 15d-14(d) under the Exchange Act (pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002) on behalf of an asset-backed issuer with respect to a
Securitization Transaction in the form attached hereto as Exhibit IV.

The Servicer acknowledges that the party identified in clause (a)(iv) above may rely on the
certification provided by the Servicer pursuant to such clause in signing a Sarbanes Certification
and filing such with the Commission.

     (b) Each assessment of compliance provided by a Subservicer pursuant to Section 10.05(a)(i)
shall address each of the applicable Servicing Criteria specified on a certification substantially
in the form of Exhibit III hereto delivered to the Assignee concurrently with the execution of this
Agreement or, in the case of a Subservicer subsequently appointed as such, on or prior to the date
of such appointment. An assessment of compliance provided by a Participating Entity pursuant to
Section 10.05(a)(iii) need not address any elements of the Servicing Criteria other than those
specified by the Servicer pursuant to Section 10.06.

     Section 10.06. Use of Subservicers and Subcontractors.

     The Servicer shall not hire or otherwise utilize the services of any Subservicer to fulfill
any of the obligations of the Servicer under this Agreement or any related Reconstitution Agreement
unless the Servicer complies with the provisions of paragraph (a) of this Section. The Servicer
shall not hire or otherwise utilize the services of any Subcontractor, and shall not permit any
Subservicer to hire or otherwise utilize the services of any Subcontractor, to fulfill any of the

 

 

     obligations of the Servicer under this Agreement or any Reconstitution Agreement unless the
Servicer complies with the provisions of paragraph (b) of this Section.

     (a) It shall not be necessary for the Servicer to seek the consent of the Assignee or any
Depositor to the utilization of any Subservicer. If required by Regulation AB, after reasonable
notice from the Assignee of the parties involved in the Assignee’s Securitization Transaction, the
Servicer shall cause any Subservicer used by the Servicer (or by any Subservicer) for the benefit
of the Assignee and any Depositor to comply with the provisions of this Section and with Sections
10.02, 10.03(c) and (e), 10.04, 10.05 and 10.07 of this Agreement, and to provide the information
required with respect to such Subservicer under Section 10.03(d) of this Agreement. The Servicer
shall be responsible for obtaining from each Subservicer and delivering to the Assignee and any
Depositor any servicer compliance statement required to be delivered by such Subservicer under
Section 10.04, any assessment of compliance and attestation required to be delivered by such
Subservicer under Section 10.05 and any certification required to be delivered to the Person that
will be responsible for signing the Sarbanes Certification under Section 10.05 as and when
required to be delivered.

     (b) It shall not be necessary for the Servicer to seek the consent of the Assignee or any
Depositor to the utilization of any Subcontractor. If required by Regulation AB, after reasonable
notice from the Assignee of the parties involved in the Assignee’s Securitization Transaction, the
Servicer shall promptly upon request provide to the Assignee and any Depositor (or any designee of
the Depositor, such as a master servicer or administrator) a written description of the role and
function of each Subcontractor utilized by the Servicer or any Subservicer, specifying (i) the
identity of each such Subcontractor, (ii) which (if any) of such Subcontractors are Participating
Entities, and (iii) which elements of the Servicing Criteria will be addressed in assessments of
compliance provided by each Participating Entity identified pursuant to clause (ii) of this
paragraph.

     The Servicer shall cause any such Participating Entity used by the Servicer (or by any
Subservicer) for the benefit of the Purchaser and any Depositor to comply with the provisions of
Sections 10.05 and 10.07 2(e) of this Agreement. The Servicer shall be responsible for obtaining
from each Participating Entity and delivering to the Assignee and any Depositor assessment of
compliance and attestation required to be delivered by such Participating Entity under Section
10.05, in each case as and when required to be delivered.

     Section 10.07. Indemnification; Remedies.

     (a) Each of the Seller and the Servicer shall indemnify the Assignee and each of the following
parties participating in a Securitization Transaction: each sponsor and issuing entity; the Master
Servicer, each Person responsible for the execution or filing of any report required to be filed
with the Commission with respect to such Securitization Transaction, or for execution of a
certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to
such Securitization Transaction; each Person who controls any of such parties (within the meaning
of Section 15 of the Securities Act and Section 20 of the Exchange Act) and any affiliated
broker/dealer directly involved in the Securitization Transaction; and the respective present and
former directors, officers and employees of each of the foregoing and of the Depositor, and shall
hold each of them harmless from and against any losses, damages, penalties,

 

 

fines, forfeitures, legal fees and expenses and related costs, judgments, and any other costs, fees
and expenses that any of them may sustain arising out of or based upon:

     (i)(A) any untrue statement of a material fact contained or alleged to be contained in
any written information, written report, certification or other material provided under this
Agreement by or on behalf of the Seller or Servicer, as applicable, or provided under this
Agreement by or on behalf of any Subservicer, Participating Entity or, if applicable,
Third-Party Originator (collectively, the “Company Information”), or (B) the omission or
alleged omission to state in the Company Information a material fact required to be stated
in the Company Information or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided, by way of
clarification, that clause (B) of this paragraph shall be construed solely by reference to
the Company Information and not to any other information communicated in connection with a
sale or purchase of securities, without regard to whether the Company Information or any
portion thereof is presented together with or separately from such other information;

     (ii) any failure by the Servicer, any Subservicer, any Participating Entity or any
Third-Party Originator to deliver any information, report, certification, accountants’
letter or other material when and as required under this Agreement, including the failure to
by the Servicer to identify pursuant to Section 10.06(b) any Participating Entity; or

     (iii) any breach by the Seller or the Servicer, as applicable, of a representation or
warranty set forth in Section 10.02(a) or in a writing furnished pursuant to Section
10.02(b) and made as of a date prior to the closing date of the related Securitization
Transaction, to the extent that such breach is not cured by such closing date, or any breach
by the Seller or the Servicer, as applicable, of a representation or warranty in a writing
furnished pursuant to Section 10.02(b) to the extent made as of a date subsequent to such
closing date; or

     (iv) the gross negligence of the Servicer, in connection with its performance under
Section 10.04 or Section 10.05 of this Regulation AB Addendum.

     This indemnification shall survive the termination of this Agreement or any party to
this Agreement.

     In the case of any failure of performance described in clause (a)(ii) of this Section, the
Seller or the Servicer, as applicable, shall promptly reimburse the Assignee, any Depositor, as
applicable, and each Person responsible for the execution or filing of any report required to be
filed with the Commission with respect to such Securitization Transaction, or for execution of a
certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to
such Securitization Transaction, for all costs reasonably incurred by each such party in order to
obtain the information, report, certification, accountants’ letter or other material not delivered
as required by the Seller, Servicer, any Subservicer, any Participating Entity or any Third-Party
Originator.

(b) (i) Any failure by the Seller or the Servicer, any Subservicer, any Participating Entity
or any Third-Party Originator to deliver any information, report, certification,

 

 

accountants’ letter or other material when and as required under this Agreement, which
continues unremedied for nine (9) Business Days after receipt by the Seller or the Servicer,
as applicable, and the applicable Subservicer, Subcontractor, or Third-Party Originator of
written notice of such failure from the Assignee or Depositor shall, except as provided in
clause (B) of this paragraph, constitute an Event of Default with respect to the Seller or
the Servicer, as applicable, under this Agreement and any applicable Reconstitution
Agreement, and shall entitle the Purchaser or Depositor, as applicable, in its sole
discretion to terminate the rights and obligations of the Servicer under this Agreement
and/or any applicable Reconstitution Agreement related thereto without payment
(notwithstanding anything in this Agreement or any applicable Reconstitution Agreement
related thereto to the contrary) of any compensation to the Servicer; provided, however it
is understood that the Servicer shall remain entitled to receive reimbursement for all
unreimbursed Monthly Advances and Servicing Advances made by the Servicer under this
Agreement and/or any applicable Reconstitution Agreement. Notwithstanding anything to the
contrary set forth herein, to the extent that any provision of this Agreement and/or any
applicable Reconstitution Agreement expressly provides for the survival of certain rights or
obligations following termination of the Servicer, such provision shall be given effect.

     (ii) Any failure by the Servicer, any Subservicer or any Participating Entity to
deliver any information, report, certification or accountants’ letter required under
Regulation AB when and as required under Section 10.04 or 10.05, including any failure by
the Servicer to identify a Participating Entity, which continues unremedied for ten calendar
days after the date on which such information, report, certification or accountants’ letter
was required to be delivered shall constitute an Event of Default with respect to the
Servicer under this Agreement and any applicable Reconstitution Agreement, and shall entitle
the Assignee or Depositor, as applicable, in its sole discretion to terminate the rights and
obligations of the Servicer under this Agreement and/or any applicable Reconstitution
Agreement without payment (notwithstanding anything in this Agreement to the contrary) of
any compensation to the Servicer; provided, however it is understood that the Servicer shall
remain entitled to receive reimbursement for all unreimbursed Monthly Advances and Servicing
Advances made by the Servicer under this Agreement and/or any applicable Reconstitution
Agreement. Notwithstanding anything to the contrary set forth herein, to the extent that
any provision of this Agreement and/or any applicable Reconstitution Agreement expressly
provides for the survival of certain rights or obligations following termination of the
Servicer, such provision shall be given effect.

     (iii) The Servicer shall promptly reimburse the Assignee (or any designee of the
Assignee, such as a master servicer) and any Depositor, as applicable, for all reasonable
expenses incurred by the Assignee (or such designee) or such Depositor, as such are
incurred, in connection with the termination of the Servicer and the transfer of servicing
of the Specified Mortgage Loans to a successor servicer. The provisions of this paragraph
shall not limit whatever rights the Servicer, the Assignee or any Depositor may have under
other provisions of this Agreement and/or any applicable Reconstitution Agreement or
otherwise, whether in equity or at law, such as an action for damages, specific performance
or injunctive relief.

 

 

(c) The Assignee agrees to indemnify and hold harmless the Seller, the Servicer, any Subservicer,
any Participating Entity, and, if applicable, any Third-Party Originator, each Person who controls
any of such parties (within the meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act), and the respective present and former directors, officers and employees of each of
the foregoing from and against any losses, damages, penalties, fines, forfeitures, legal fees and
expenses and related costs, judgments, and any other costs, fees and expenses that any of them may
sustain arising out of or based upon any untrue statement or alleged untrue statement of any
material fact contained in any filing with the Commission or the omission or alleged omission to
state in any filing with the Commission a material fact required to be stated or necessary to be
stated in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading, in each case to the extent, but only to the extent, that such untrue
statement, alleged untrue statement, omission, or alleged omission relates to any filing with the
Commission other than the Company Information.

[Signature Page Follows]

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

	 	 	 	 	 
	 	 	DLJ MORTGAGE CAPITAL, INC.,
	 	 	as Purchaser
	 
	 	 	 	 
	 

	 	By:
	 	/s/ DLJ MORTGAGE CAPITAL, INC.
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	COUNTRYWIDE HOME LOANS, INC.
	 	 	as Seller
	 
	 	 	 	 
	 

	 	By:
	 	/s/ COUNTRYWIDE HOME LOANS, INC.
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	COUNTRYWIDE HOME LOANS SERVICING LP,
	 	 	as Servicer
	 
	 	 	 	 
	 	 	By: Countrywide GP, Inc., its general partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ COUNTRYWIDE GP, INC.
	 

	 	Name:	 	 
	 

	 	Title:	 	 

 

 

EXHIBIT I

 

 

EXHIBIT II

 

 

Exhibit 10.1

EXHIBIT III

SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

     The assessment of compliance to be delivered by [the Servicer] [Name of Subservicer] shall
address, at a minimum, the criteria identified as below as “Applicable Servicing Criteria”

	 	 	 	 	 
	 	 	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	Reference	 	Criteria	 	 
	 
	 	 	 	 
	 

	 	General Servicing Considerations	 	 
	 
	 	 	 	 
	1122(d)(1)(i)

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

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

	 	Any requirements in the transaction agreements to maintain a back-up
servicer for the mortgage loans are maintained.	 	 
	 
	 	 	 	 
	1122(d)(1)(iv)

	 	A fidelity bond and errors and omissions 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.
	 	X
	 
	 	 	 	 
	 

	 	Cash Collection and Administration	 	 
	 
	 	 	 	 
	1122(d)(2)(i)

	 	Payments on mortgage loans are deposited into 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.
	 	X
	 
	 	 	 	 
	1122(d)(2)(ii)

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

	 	Advances of funds or guarantees regarding 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.
	 	X
	 
	 	 	 	 
	1122(d)(2)(iv)

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

	 	Each custodial account is maintained at a 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.
	 	X
	 
	 	 	 	 
	1122(d)(2)(vi)

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

	 	Reconciliations are prepared on a monthly 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.
	 	X

 

 

	 	 	 	 	 
	 	 	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	Reference	 	Criteria	 	 
	 
	 	 	 	 
	 

	 	Investor Remittances and Reporting	 	 
	 
	 	 	 	 
	1122(d)(3)(i)

	 	Reports to investors, including those to be 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 mortgage loans serviced by the
Servicer.
	 	X
	 
	 	 	 	 
	1122(d)(3)(ii)

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

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

	 	Amounts remitted to investors per the investor reports agree with
cancelled checks, or other form of payment, or custodial bank
statements.
	 	X
	 
	 	 	 	 
	 

	 	Pool Asset Administration	 	 
	 
	 	 	 	 
	1122(d)(4)(i)

	 	Collateral or security on mortgage loans is maintained as required
by the transaction agreements or related mortgage loan documents.
	 	X
	 
	 	 	 	 
	1122(d)(4)(ii)

	 	Mortgage loan and related documents are safeguarded as required by
the transaction agreements
	 	X
	 
	 	 	 	 
	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.
	 	X
	 
	 	 	 	 
	1122(d)(4)(iv)

	 	Payments on mortgage loans, including any payoffs, made in
accordance with the related mortgage loan 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 mortgage loan documents.
	 	X
	 
	 	 	 	 
	1122(d)(4)(v)

	 	The Servicer’s records regarding the mortgage loans agree with the
Servicer’s records with respect to an obligor’s unpaid principal
balance.
	 	X
	 
	 	 	 	 
	1122(d)(4)(vi)

	 	Changes with respect to the terms or status of an obligor’s mortgage
loans (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.
	 	X
	 
	 	 	 	 
	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.
	 	X
	 
	 	 	 	 
	1122(d)(4)(viii)

	 	Records documenting collection efforts are maintained during the
period a mortgage loan 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 mortgage loans
including, for example, phone calls, letters and payment rescheduling
plans in cases where delinquency is deemed temporary (e.g., illness or
unemployment).
	 	X
	 
	 	 	 	 
	1122(d)(4)(ix)

	 	Adjustments to interest rates or rates of return for mortgage loans
with variable rates are computed based on the related mortgage loan
documents.
	 	X
	 
	 	 	 	 
	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
mortgage loan 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
mortgage loan documents and state laws; and (C) such funds are returned
to the obligor within 30 calendar days of full repayment of the related
mortgage loans, or such other number of days specified in the
transaction agreements.
	 	X

 

 

	 	 	 	 	 
	 	 	 	 	Applicable
	Servicing Criteria	 	Servicing Criteria
	Reference	 	Criteria	 	 
	 
	 	 	 	 
	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.
	 	X
	 
	 	 	 	 
	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.
	 	X
	 
	 	 	 	 
	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.
	 	X
	 
	 	 	 	 
	1122(d)(4)(xiv)

	 	Delinquencies, charge-offs and uncollectible accounts are
recognized and recorded in accordance with the transaction agreements.
	 	X
	 
	 	 	 	 
	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.	 	 

	 	 	 
	 

	 	[NAME OF SERVICER] [NAME OF SUBSERVICER]
	 
	 	 
	 

	 	Date:                                                                                 
	 
	 	 
	 

	 	By:        
               
                
               
                           
	 

	 	Name:
	 

	 	Title:

 

 

EXHIBIT IV

FORM OF ANNUAL CERTIFICATION

     Re:  The
[     ] agreement dated as of
[    ], 200[ ] (the “Agreement”), among [IDENTIFY PARTIES]

     I, ______, the ___of [NAME OF SERVICER],
certify to [the Assignee], [the Depositor], and the [Master Servicer] [Securities Administrator]
[Trustee], and their officers, with the knowledge and intent that they will rely upon this
certification, that:

     (1) I have reviewed the servicer compliance statement of the Servicer provided in
accordance with Item 1123 of Regulation AB (the “Compliance Statement”), the report on
assessment of the Servicer’s compliance with the servicing criteria set forth in Item
1122(d) of Regulation AB and identified as the responsibility of the Servicer on Exhibit III
of the related Assignment, Assumption and Recognition Agreement (the “Servicing Criteria”),
provided in accordance with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934,
as amended (the “Exchange Act”) and Item 1122 of Regulation AB (the “Servicing Assessment”),
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 Servicer during 200[ ]
that were delivered by the Servicer to the [Depositor] [Master Servicer] [Securities
Administrator] [Trustee] pursuant to the Agreement (collectively, the “Servicing
Information”);

     (2) Based on my knowledge, the 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 Servicing
Information;

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

     (4) I am responsible for reviewing the activities performed by the Servicer as servicer
under 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 Servicer has fulfilled its obligations
under the Agreement; and

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

 

 

Date:                                                                                                    

By:                                                                                                    

Name:

Title:

 

 

COUNTRYWIDE — SEQUQIA TO TRUSTEE: RWT

ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

For

Mortgage Loan Purchase and Servicing Agreement

     THIS ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT, dated as of February 1, 2006 (the
“Assignment”), is entered into among Sequoia Residential Funding, Inc. (the “Assignor”),
Countrywide Home Loans, Inc., as the seller (the “Seller”), Countrywide Home Loans Servicing L.P.,
as the servicer (“Servicer”), and U.S. Bank National Association (“U.S. Bank”) as Trustee under a
Pooling and Servicing Agreement dated as of January 1, 2006 (the “Pooling and Servicing
Agreement”), among the Assignor, as Depositor, U.S. Bank (in such Trustee capacity, the “Assignee”)
and Wells Fargo Bank, N. A., as Master Servicer (the “Master Servicer”) and Trust Administrator.

RECITALS

     WHEREAS, DLJ Mortgage Capital, Inc. (“DLJ”) and RWT Holdings, Inc. (“RWT”) entered into an
Assignment, Assumption and Recognition Agreement dated December 15, 2005 (the “AAR”) whereby DLJ
acquired from RWT certain mortgage loans (the “Mortgage Loans”) governed by the Mortgage Loan
Purchase and Servicing Agreement, dated as of April 1, 1998 between Seller and Assignee (the
“Mortgage Loan Purchase and Servicing Agreement”), as amended by the Amendment Number One to such
agreement dated February 27, 2004 between Seller and Assignee (the “Amendment Number One,” and
together with the AAR and the Mortgage Loan Purchase and Servicing Agreement, the “Agreements”);
and

     WHEREAS, the Seller and the Servicer entered into an Assignment Agreement dated January 1,
2001, whereby Seller assigned to Servicer its rights and obligations as servicer under the
Agreements, and Servicer agreed to service the Mortgage Loans according to the provisions of the
Mortgage Loan Purchase and Servicing Agreement and the Amendment Number One; and

     WHEREAS, DLJ has previously sold, assigned and transferred to RWT all of its right, title and
interest in certain of the Mortgage Loans (the “Specified Mortgage Loans”) which are listed on the
mortgage loan schedule attached as Exhibit I hereto (the “Specified Mortgage Loan
Schedule”) and its rights under the Agreements with respect to the Specified Mortgage Loans; and

     WHEREAS, RWT has previously sold, assigned and transferred all of its right, title and
interest in the Specified Mortgage Loans and certain rights under the Agreements with respect to
the Specified Mortgage Loans to the Assignor; and

6

 

     WHEREAS, the parties hereto have agreed that the Specified Mortgage Loans shall be subject to
the terms of this Assignment.

     NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and
valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties
agree as follows:

     1. Assignment and Assumption.

          (a) Effective on and as of the date hereof, the Assignor hereby pledges, assigns and transfers
to the Assignee all of its right, title and interest in the Specified Mortgage Loans and all of its
rights (but none of the Purchaser’s, as defined in the Purchase and Servicing Agreement,
obligations) provided under the Agreements to the extent relating to the Specified Mortgage Loans,
the Assignee hereby accepts such assignment from the Assignor, and the Seller and the Servicer
hereby acknowledge such assignment and assumption.

          (b) Effective on and as of the date hereof, the Assignor represents and warrants to the
Assignee that the Assignor has not taken any action that would serve to impair or encumber the
Assignee’s interest in the Specified Mortgage Loans since the date of the Assignor’s acquisition of
the Specified Mortgage Loans.

     2. Recognition of the Assignee.

     From and after the date hereof, subject to Section 3 below, the Seller and the Servicer shall
recognize the Assignee as the holder of the rights and benefits of the Purchaser, as defined in the
Purchase and Servicing Agreement, with respect to the Specified Mortgage Loans and the Servicer
will service the Specified Mortgage Loans for the Assignee as if the Assignee and the Servicer had
entered into a separate servicing agreement for the servicing of the Specified Mortgage Loans in
the form of the Agreements (as amended hereby) with the Assignee as the Purchaser thereunder, the
terms of which Agreements are incorporated herein by reference and amended hereby. It is the
intention of the parties hereto that this Assignment will be a separate and distinct agreement, and
the entire agreement, between the parties hereto to the extent of the Specified Mortgage Loans and
shall be binding upon and for the benefit of the respective successors and assigns of the parties
hereto.

     3. Amendment to the Agreements.

     The Agreements are hereby amended as set forth in Appendix B hereto with respect to
the Specified Mortgage Loans.

     4. Representations and Warranties.

          (a) The Assignee represents and warrants that it is a sophisticated investor able to evaluate
the risks and merits of the transactions contemplated hereby, and that it has not relied in
connection therewith upon any statements or representations of the Seller or the Assignor other
than those contained in the Agreements or this Assignment.

          (b) Each of the parties hereto represents and warrants that it is duly and legally authorized
to enter into this Assignment.

7

 

          (c) Each of the parties hereto represents and warrants that this Assignment has been duly
authorized, executed and delivered by it and (assuming due authorization, execution and delivery
thereof by each of the other parties hereto) constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms, except as such enforcement may be limited by
bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (regardless of whether such
enforcement is considered in a proceeding in equity or at law).

          5. Continuing Effect.

     Except as contemplated hereby, the Agreements shall remain in full force and effect in
accordance with their terms. This Assignment constitutes a Reconstitution Agreement as
contemplated in Section 8.15 of the Mortgage Loan Purchase and Servicing Agreement and the
Reconstitution Date shall be the date hereof with respect to the Specified Mortgage Loans listed on
Exhibit I on the date hereof.

     6. Governing Law.

     This Assignment and the rights and obligations hereunder shall be governed by and construed in
accordance with the internal laws of the State of New York.

     7. Notices.

     Any notices or other communications permitted or required under the Agreements to be made to
the Assignor and Assignee shall be made in accordance with the terms of the Agreements and shall be
sent to the Assignor and Assignee as follows:

Sequoia Residential Funding, Inc.

One Belvedere Place, Suite 330

Mill Valley, CA 94941

U.S. Bank National Association

Corporate Trust Services – EP-MN-WS3D

60 Livingston Avenue

St. Paul, Minnesota 55107-2292

or to such other address as may hereafter be furnished by the Assignor or Assignee to the other
parties in accordance with the provisions of the Agreements.

     8. Counterparts.

     This Assignment may be executed in counterparts, each of which when so executed shall be
deemed to be an original and all of which when taken together shall constitute one and the same
instrument.

8

 

     9. Definitions.

     Any capitalized term used but not defined in this Assignment has the same meaning as in the
Agreements.

     10. Master Servicer.

     The Seller and the Servicer hereby acknowledge that the Assignee has appointed Wells Fargo
Bank, N. A. to act as Master Servicer under the Pooling and Servicing Agreement and hereby agree to
treat all inquiries, instructions, authorizations and other communications from the Master Servicer
as if the same had been received from the Assignee. The Master Servicer, acting on behalf of the
Assignee, shall have the rights of the Assignee as the Purchaser as defined in and granted under
the Agreements to enforce the obligations of the Servicer thereunder.

     11. Pooling and Servicing Agreement.

     Each of the parties hereto hereby acknowledges that as of the date hereof the Specified
Mortgage Loans will be securitized under the Pooling and Servicing Agreement which is attached
hereto as Exhibit II.

     12. Waiver.

     The Assignor hereby waives its rights to indemnification under Section 6.01 of the Purchase
and Servicing Agreement for failure of the Seller or Servicer to perform its obligations in
accordance with Section 3 of this Assignment. Notwithstanding the foregoing, the Seller or
Servicer, as applicable, shall continue to indemnify and hold harmless the Assignor and the
Assignee, against any and all claims, losses, damages, penalties, fines, forfeitures, reasonable
and necessary attorneys’ fees and related costs, judgments, and any other costs, fees and expenses
that the Assignor and the Assignee may sustain in any way related to any material misstatement or
omission, gross negligence, bad faith or willful misconduct of the Seller or Servicer, as
applicable, in connection with complying with Section 3 of this Assignment.

     13. Indemnification.

     Notwithstanding anything to the contrary, the Assignor shall indemnify the Seller and the
Servicer and hold them harmless against any and all claims, losses, damages, penalties, fines,
forfeitures, reasonable and necessary legal fees and related costs, judgments, and any other costs,
fees and expenses that the Seller and Servicer may sustain in any way related to (a) actions or
inactions of the Seller or the Servicer which were taken or omitted upon the instruction or
direction of the Assignor and/or Assignee, or (b) the failure of the Assignor or Assignee to
perform its obligations under this Assignment and the Agreement.

[remainder of page intentionally left blank]

9

 

     IN WITNESS WHEREOF, the parties hereto have executed this Assignment the day and year first
above written.

	 	 	 	 	 
	 	 	ASSIGNOR:
	 
	 	 	 	 
	 	 	SEQUOIA RESIDENTIAL FUNDING, INC.
	 
	 	 	 	 
	 	 	/s/ SEQUOIA RESIDENTIAL FUNDING, INC.
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	ASSIGNEE:
	 
	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	 	 	/s/ U.S. BANK NATIONAL ASSOCIATION
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	SELLER:
	 
	 	 	 	 
	 	 	COUNTRYWIDE HOME LOANS, INC.
	 
	 	 	 	 
	 	 	/s/ COUNTRYWIDE HOME LOANS, INC.
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	SERVICER:
	 
	 	 	 	 
	 	 	COUNTRYWIDE HOME LOANS SERVICING, L.P.
	 
	 	 	 	 
	 	 	/s/ COUNTRYWIDE HOME
LOANS SERVICING, L.P.
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

10

 

EXHIBIT I

 

 

EXHIBIT II

 

 

APPENDIX A

	 	 	 
	Purchase Confirmation(s) Dates	 	Trade Confirmation(s) Dates
	 	 	 

 

 

APPENDIX B

[Some of the deal specific provisions have been deleted because they are already included in the

December 15, 2005 AAR among DLJ Mortgage Capital, Inc., RWT Holdings, Inc. , Countrywide Home

Loans, Inc. and Countrywide Home Loans Servicing LP (the “December AAR”). That December AAR also

contains the required Reg AB provisions.

     1. Section 5.02(a) of the Agreements is hereby deleted in its entirety and replaced
with the following:

          “Section 5.02 Periodic Reports to Purchaser

               (a) Monthly Reports. Not later than the fifth (5th)
Business Day following the end of each month, Countrywide shall furnish to
Purchaser a Mortgage Loan accounting report, as of the last Business Day of the
previous month, documenting the Mortgage Loan payment activity on an individual
Mortgage Loan basis. Such data shall be reported in substantially the same form
as, and providing the information described in, Exhibit D hereto; or as otherwise
mutually agreed to by Countrywide and the Master Servicer. In addition,
Countrywide agrees to provide to the Master Servicer any other data with respect to
the Mortgage Loans as may reasonably be required to enable the Master Servicer to
perform its obligations under the Pooling and Servicing Agreement.”

 

 

Exhibit 10.1

EXHIBIT D

Standard File Layout — Master Servicing

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Column Name	 	Description	 	Decimal	 	Format Comment	 	Max Size
	SER_INVESTOR_NBR

	 	A value assigned by the Servicer to define a group of loans.
	 	 	 	 	 	Text up to 10 digits
	 	 	20	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	LOAN_NBR

	 	A unique identifier assigned to each loan by the investor.
	 	 	 	 	 	Text up to 10 digits
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERVICER_LOAN_NBR

	 	A unique number assigned to a loan by the Servicer. This
may be different than the LOAN_NBR.
	 	 	 	 	 	Text up to 10 digits
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	BORROWER_NAME

	 	The borrower name as received in the file. It is not
separated by first and last name.
	 	 	 	 	 	Maximum length of 30 (Last, First)
	 	 	30	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_PAY_AMT

	 	Scheduled monthly principal and scheduled interest payment
that a borrower is expected to pay, P&I constant.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NOTE_INT_RATE

	 	The loan interest rate as reported by the Servicer.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NET_INT_RATE

	 	The loan gross interest rate less the service fee rate as
reported by the Servicer.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_FEE_RATE

	 	The servicer’s fee rate for a loan as reported by the
Servicer.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_FEE_AMT

	 	The servicer’s fee amount for a loan as reported by the
Servicer.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NEW_PAY_AMT

	 	The new loan payment amount as reported by the Servicer.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NEW_LOAN_RATE

	 	The new loan rate as reported by the Servicer.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARM_INDEX_RATE

	 	The index the Servicer is using to calculate a forecasted
rate.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTL_BEG_PRIN_BAL

	 	The borrower’s actual principal balance at the beginning of
the processing cycle.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTL_END_PRIN_BAL

	 	The borrower’s actual principal balance at the end of the
processing cycle.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	BORR_NEXT_PAY_DUE_DATE

	 	The date at the end of processing cycle that the borrower’s
next payment is due to the Servicer, as reported by
Servicer.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_AMT_1

	 	The first curtailment amount to be applied.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_DATE_1

	 	The curtailment date associated with the first curtailment
amount.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CURT_ADJ___AMT_1

	 	The curtailment interest on the first curtailment amount,
if applicable.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_AMT_2

	 	The second curtailment amount to be applied.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_DATE_2

	 	The curtailment date associated with the second curtailment
amount.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CURT_ADJ___AMT_2

	 	The curtailment interest on the second curtailment amount,
if applicable.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_AMT_3

	 	The third curtailment amount to be applied.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_DATE_3

	 	The curtailment date associated with the third curtailment
amount.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CURT_ADJ_AMT_3

	 	The curtailment interest on the third curtailment amount,
if applicable.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PIF_AMT

	 	The loan “paid in full” amount as reported by the Servicer.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PIF_DATE

	 	The paid in full date as reported by the Servicer.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Action Code Key: 15=Bankruptcy,

30=Foreclosure, , 60=PIF,

63=Substitution,

65=Repurchase,70=REO
	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTION_CODE

	 	The standard FNMA numeric code used to indicate the
default/delinquent status of a particular loan.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	INT_ADJ_AMT

	 	The amount of the interest adjustment as reported by the
Servicer.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Column Name	 	Description	 	Decimal	 	Format Comment	 	Max Size
	SOLDIER_SAILOR_ADJ_AMT

	 	The Soldier and Sailor Adjustment amount, if applicable.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NON_ADV_LOAN_AMT

	 	The Non Recoverable Loan Amount, if applicable.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	LOAN_LOSS_AMT

	 	The amount the Servicer is passing as a loss, if applicable.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_BEG_PRIN_BAL

	 	The scheduled outstanding principal amount due at the
beginning of the cycle date to be passed through to
investors.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_END_PRIN_BAL

	 	The scheduled principal balance due to investors at the end
of a processing cycle.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_PRIN_AMT

	 	The scheduled principal amount as reported by the Servicer
for the current cycle — only applicable for
Scheduled/Scheduled Loans.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_NET_INT

	 	The scheduled gross interest amount less the service fee
amount for the current cycle as reported by the Servicer —
only applicable for Scheduled/Scheduled Loans.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTL_PRIN_AMT

	 	The actual principal amount collected by the Servicer for
the current reporting cycle — only applicable for
Actual/Actual Loans.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTL_NET_INT

	 	The actual gross interest amount less the service fee
amount for the current reporting cycle as reported by the
Servicer — only applicable for Actual/Actual Loans.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PREPAY_PENALTY___AMT

	 	The penalty amount received when a borrower prepays on his
loan as reported by the Servicer.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PREPAY_PENALTY___WAIVED

	 	The prepayment penalty amount for the loan waived by the
servicer.
	 	 	2	 	 	No commas(,) or dollar signs ($)
	 	 	11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]