Document:

exv10w2

Exhibit 10.2

FORM OF TAX SHARING AGREEMENT

     This Tax Sharing Agreement (the “Agreement”) is entered into as of           , 2011, by and between
The Williams Companies, Inc., a Delaware corporation (“Williams”), and WPX Energy, Inc., a Delaware
corporation (“WPX”) (collectively, the “parties”).

RECITALS

     WPX is currently an includible corporation in the Williams Group under Section 1504 of the
Internal Revenue Code of 1986, as amended (the “Code”).

     Williams currently owns 100% of the outstanding common stock of WPX. Pursuant to a plan of
reorganization adopted by the Williams board of directors on April 26, 2011, and amended on October
19, 2011, Williams intends to effect the Spin (as defined below).

     The parties are entering into this Tax Sharing Agreement to allocate, indemnify, pay and
settle amongst them the Taxes of the parties.

AGREEMENT

     Accordingly, the parties agree as follows:

ARTICLE I

CERTAIN DEFINITIONS

     The defined terms used in this Agreement shall, except as otherwise expressly provided or
unless the context otherwise requires, have the meanings specified in this Article I. The singular
shall include the plural and masculine gender shall include the feminine, the neuter and vice
versa, as the context requires.

     “AMT” means the federal alternative minimum tax, as described in Sections 55 through 59 of the
Code.

     “Combined Return” means any state, local or foreign income Tax Return of the Williams Group
that is filed on a unitary, combined, consolidated or similar basis with one or more members of the
WPX Group.

     “Consolidated Return” means any consolidated federal income Tax Return of the Williams Group
that includes one or more members of the WPX Group.

     “Final Determination” means (i) an IRS Form 870 or 870AD (or any similar state, local, or
foreign form) that reflects an adjustment to any Tax item shown on a Tax Return, (ii) a closing
agreement or an accepted offer in compromise with any Tax Authority, (iii) any other adjustment to
any Tax item (including, but not limited to, the filing of an amended return on which the taxpayer
adjusts an item) as to which the period of limitations has expired, (iv) a claim for refund

 

 

that has been allowed, (v) a deficiency notice with respect to which the period for filing a
petition with the Tax Court has expired, or (vi) a decision of any court of competent jurisdiction
relating to a Tax item that is not subject to appeal or the time for appeal of which has expired.

     “IRS” means the Internal Revenue Service.

     “Payment Date” means the date on which a payment of Tax is due to the relevant Taxing
Authority with respect to a Tax Return.

     “Private Ruling” means the private letter ruling issued by the IRS dated September 30, 2011.

     “Private Ruling Application” means the written materials submitted to the IRS by Williams in
connection with the Private Ruling.

     “Proceeding” means any examination, audit, administrative appeal, court action, court
proceedings, protests, claims or suits for refund, petitions, briefs, arguments, settlement
discussions, or any other dealings with a Tax Authority or judicial authority relating to Taxes.

     “Regulations” means the United States Treasury Regulations promulgated under the Code.

     “Required Payment” means any payment required under this Agreement.

     “Required Payment Date” means the date a Required Payment is required to be paid under this
Agreement.

     “Section 355(e) Agreements” has the meaning set forth in Section 4.1(c) of this Agreement.

     “Section 355(e) Plan” has the meaning set forth in Section 4.1(c) of this Agreement.

     “Separation Agreement” means the Separation and Distribution Agreement by and between Williams
and WPX, dated concurrently herewith.

     “Spin” means the spin-off of Apco Oil & Gas International, Inc. (“Apco”) to Williams (the
“Internal Spin”) and the spin-off of WPX to Williams’ shareholders (the “External Spin”) and any
related restructuring transactions.

     “Spin Date” means the date on which the External Spin occurs.

     “Spin Taxes” mean the sum of (i) any increase in a Tax liability (or reduction in a Tax
refund, credit, or other Tax Attribute) of any member of the Williams Group determined in a Final
Determination as a result of any corporate-level gain or income recognized with respect to the
failure of the Internal Spin or External Spin to qualify for tax-free treatment under Section 355
or Section 368(a)(1)(D) of the Code (or their state, local or foreign counterparts), (ii) interest
on such amounts calculated pursuant to the Tax Law in any applicable jurisdiction at the highest
underpayment rate in such jurisdiction from the date such additional gain or income was

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recognized until full payment with respect thereto is made (or, in the case of a reduction in a
refund, the amount of interest that would have been received from the applicable Tax Authority on
the foregone portion of the refund but for such failure), and (iii) any penalties actually paid to
any Taxing Authority that would not have been paid but for such failure.

     “Stock” means common or preferred stock, securities, and any warrants, stock options, forward
contracts, puts and calls, other equity instruments or derivative equity instruments or any
instrument that might reasonably be treated as stock for federal income tax purposes.

     “Tax Authority” means any governmental authority, agency or court of competent jurisdiction
that is responsible for the administration, adjudication or collection of Taxes.

     “Tax” means all taxes, assessments, charges, duties, fees, levies or other similar
governmental charges, including, without limitation, all federal, state, local, foreign and other
income, franchise, profits, capital gains, capital stock, transfer, sales, use, occupation,
property, excise, severance, windfall profits, stamp, license, payroll, withholding and other
taxes, assessments, charges, duties, fees, levies or other governmental charges of any kind
whatsoever (whether payable directly or by withholding and whether or not requiring the filing of a
return), all estimated taxes, deficiency assessments, additions to tax, penalties and interest and
shall include any liability for such amounts as a result either of being a member of a combined,
consolidated, unitary or affiliated group.

     “Tax Information” means all books, records, accounting data and other information in the
possession of the Williams Group or the WPX Group necessary for the preparation and filing of all
Tax Returns relevant to this Agreement.

     “Tax Attribute” means any net operating loss, net capital loss, investment tax credit, foreign
tax credit, deduction or any loss, credit or tax attribute that could be carried forward or back to
reduce taxes (including without limitation deductions and credits related to alternative minimum
taxes).

     “Tax Opinion” means the opinion of counsel obtained by Williams with respect to the
qualification of the Spin under Section 355 and Section 368(a)(1)(D) of the Code dated October 25,
2011.

     “Tax Law” means laws, cases, statutes, rules and regulations with respect to Taxes.

     “Tax Return” means any return, report, declaration, claim for refund, election, disclosure,
estimate, or statement required to be supplied to a Taxing Authority in connection with Taxes,
including any schedule or attachment thereto or amendment thereof.

     “Williams Group” means the affiliated group of which Williams is the common parent.

     “WPX Group” means WPX and all its direct and indirect subsidiaries that are or have been
members of the Williams Group at any time on or prior to the External Spin.

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     “WPX Pro Forma Combined Return” has the meaning set forth in Section 2.3(a) of this Agreement.

     “WPX Pro Forma Consolidated Return” has the meaning set forth in Section 2.3(a) of this
Agreement.

     “WPX Pro Forma Return” means a WPX Pro Forma Combined Return or a WPX Pro Forma Consolidated
Return.

ARTICLE II

TAX RETURNS AND TAXES

     Section 2.1 Tax Returns and Payments.

     (a) Consolidated Returns and Combined Returns.

     Williams shall prepare and file all Consolidated Returns and Combined Returns that are
required to be filed by or with respect to any member of the WPX Group, and shall pay any Taxes
payable with respect to such Tax Returns. Williams shall prepare all such Tax Returns in good
faith and in accordance with the Tax Law. At the discretion of WPX, WPX may assist in the
preparation of such Tax Returns as may be requested by Williams. Williams shall, in its
discretion, make all determinations regarding the preparation of such Tax Returns, including
without limitation, determinations regarding the entities to be included in any Tax Return, the
making, modification or revocation of any election, the adoption or change of any Tax accounting
methods, and any other position to be taken on or in respect of such Tax Returns, including the
carryback of losses.

     (b) Other Tax Returns.

     WPX shall prepare and file all Tax Returns that are required to be filed by or with respect to
WPX or any of its direct or indirect subsidiaries, other than those Tax Returns described in
Section 2.1(a) above, and shall pay any Taxes payable with respect to such Tax Returns. At the
discretion of Williams, Williams may assist in the preparation of such Tax Returns as may be
requested by WPX, but shall have no obligation to pay any related Taxes.

     Section 2.2 Consents, Elections, Information.

     At the request of Williams, each member of the WPX Group shall (i) file any and all Tax
consents, Tax elections or other documents, (ii) take all actions necessary to effect or allow the
preparation and filing of all Tax Returns by Williams, and (iii) prepare and submit all information
in such form that Williams reasonably requests to enable Williams to prepare any Tax Returns
required by this Agreement. Each member of the WPX Group shall be bound by all of the
determinations made by Williams in preparing any such Tax Returns and no member of the WPX Group
shall take any position on a Tax Return with respect to an item of income,

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deduction, gain, loss, or credit that is inconsistent with the reporting of such item on the
Tax Returns prepared by Williams.

     Section 2.3 WPX Pro Forma Returns.

     (a) For each Tax period with respect to which a Consolidated Return has not been filed and
until the WPX Group ceases to be part of a Consolidated Return, Williams shall prepare a pro forma
federal income Tax Return for the WPX Group (a “WPX Pro Forma Consolidated Return”), based on the
assumption that WPX is the common parent of the WPX Group. For each Tax period for which a
Combined Return has not been filed and until the WPX Group ceases to be a part of such Combined
Return, Williams shall prepare a pro forma combined Tax Return for the WPX Group for the
jurisdiction in which such Combined Return is filed (a “WPX Pro Forma Combined Return”) based on
the assumption that WPX is not a subsidiary of Williams. At the discretion of WPX, WPX may assist
in the preparation of the WPX Pro Forma Returns as may be requested by Williams. The methods and
processes described in Sections 2.3(b), 2.3(c), and 2.3(d) below shall be followed in the
preparation of the WPX Pro Forma Returns. In addition, Williams may from time to time establish
any other special procedures that Williams may in its sole discretion deem necessary or appropriate
to carry out the purposes of this Agreement.

     (b) Each WPX Pro Forma Return shall take into account solely the current income, deduction,
gain, loss, and credit items of the WPX Group, without regard to any carryovers or carrybacks from
prior or subsequent periods, and without regard to the AMT. Notwithstanding the foregoing, the WPX
Pro Forma Returns shall not reflect any deduction under Section 199 of the Code computed on a
separate company basis, but shall reflect the amount that the WPX Group has contributed to the
Williams Group consolidated deduction under Section 199 of the Code, as determined by Williams in
its sole discretion.

     (c) Each WPX Pro Forma Return shall reflect all elections and methods of accounting reflected
on the related Consolidated Return or Combined Return.

     (d) The relevant WPX Pro Forma Returns for a short Tax period shall be prepared based on an
actual or hypothetical closing of the books method.

     Section 2.4 Payments for WPX Pro Forma Returns.

     (a) For each WPX Pro Forma Consolidated Return, WPX shall pay to Williams the amount of the
Tax, if any, shown thereon. If the WPX Pro Forma Consolidated Return shows a credit or loss,
Williams shall pay to WPX an amount equal to (i) any such credits plus (ii) any such losses
multiplied by the highest marginal federal income tax rate applicable to corporations for the
relevant Tax year.

     (b) For each WPX Combined Pro Forma Return, WPX shall pay to Williams the amount of the Tax,
if any, shown thereon. If the WPX Pro Forma Combined Return shows a credit or loss, Williams shall
pay to WPX an amount equal to (i) any such credits plus (ii) any such losses multiplied by the
highest marginal Tax rate applicable thereto.

     (c) All payments required under this Section 2.4 shall be due no later than thirty days before
the Payment Date of the related Tax Return, and shall include any interest, penalties and

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additions to Tax that would be due if such payments were made directly to the applicable Tax
Authorities.

     Section 2.5 Carrybacks.

     If any member of the WPX Group realizes any losses, credits or other Tax Attributes that may
be carried back to a Consolidated Return or Combined Return, neither such member nor the WPX Group
shall be entitled to any payment or reimbursement from Williams or any member of the Williams Group
by reason of such carrybacks.

     Section 2.6 Carryovers.

     If Williams is required under the Code to allocate to the WPX Group or any of its members any
carryovers of any losses, credits or other Tax Attributes to periods following the Spin Date,
Williams shall not be entitled to reimbursement from WPX by reason of such carryover.

ARTICLE III

REDETERMINATIONS AND ADJUSTMENTS

     Section 3.1 Redeterminations of Consolidated Returns.

     In the event of any adjustments in a Final Determination for a Consolidated Return, Williams
shall make corresponding adjustments to the related WPX Pro Forma Consolidated Return and WPX Pro
Forma Combined Returns consistent with the procedures described in Article II of this Agreement.
Within thirty days after such adjustment, Williams or WPX, as appropriate, shall make additional
payments to the other party reflecting such adjustment.

     Section 3.2 Redeterminations of Other Returns.

     In the event of any adjustments in a Final Determination other than those described in Section
3.1 above, WPX Pro Forma Returns shall not be adjusted and no additional payments shall be required
between Williams and WPX.

ARTICLE IV

SPIN

     Section 4.1

     Spin Representations and Warranties.

     (a) Each of WPX and Williams represents and warrants that it has examined the Private Ruling,
the Private Ruling Application and the Tax Opinion and that the facts presented and the
representations made therein are true, correct and complete.

     (b) Each of WPX and Williams represents and warrants that it has not taken and has no plan or
intention of taking any action or failing to take any action nor knows of any

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circumstance that
could reasonably be expected to cause any representation or factual statement made in this
Agreement, the Separation Agreement, the Private Ruling, the Private Ruling Application or the Tax
Opinion to be untrue.

     (c) Each of Williams and WPX represents and warrants that, during the two-year period ending
on the date hereof, there was no “agreement, understanding, arrangement, or substantial
negotiations” (as such terms are defined in Regulation Section 1.355-7(h)(1), and hereinafter
referred to as the “Section 355(e) Agreements”) that related to a plan pursuant to which one or
more persons would acquire directly or indirectly stock representing a 50% or greater interest
(within the meaning of Section 355(e) and the Regulations thereunder) in Williams, WPX or Apco (any
such plan hereinafter referred to as a “Section 355(e) Plan”).

     (d) Each of Williams and WPX represents and warrants that it has no current plan or intention
to enter into any Section 355(e) Agreements that relate to a Section 355(e) Plan.

     Section 4.2 Spin Covenants.

     (a) Each of WPX and Williams covenants that it will not, and will not allow any officers or
directors of any of its respective subsidiaries to, take any action or fail to take any action that
(i) would create a risk that either the Internal Spin or the External Spin will fail to qualify as
a tax-free distribution pursuant to Section 355 and/or Section 368(a)(1)(D) of the Code, (ii) would
be inconsistent with any factual statement or any representation made hereunder or in the
Separation Agreement or in connection with the Private Ruling, the Private Ruling Application, or
the Tax Opinion, or any condition or restriction imposed thereby, or (iii) would create a risk for
either the Internal Spin or the External Spin to trigger gain under Section 355(d) or Section
355(e) of the Code.

     (b) Except as otherwise required by the Tax Law or as a result of a Final Determination, each
of WPX and Williams covenants that it will not take, and will not allow any officers or directors
of any of its respective subsidiaries to take, any position with respect to an item of income,
deduction, gain, loss, or credit on a Tax Return that is inconsistent with the treatment of either
the Internal Spin or the External Spin under Section 355 and/or Section 368(a)(1)(D) of the Code
(or analogous status under state, local or foreign law).

     (c) If during the period commencing on the date hereof and ending two (2) years after the Spin
Date any officers and directors of Williams or WPX or any of their respective subsidiaries becomes
aware of a matter or transaction that could affect the status of either the Internal Spin or the
External Spin under Section 355 or Section 368(a)(1)(D) of the Code, Williams and WPX covenant to
inform each other of such matter or transaction. The parties shall attempt in good faith to take
reasonable action or reasonably refrain from taking action to ensure the continued qualification of
the Internal Spin and the External Spin under the foregoing sections of the Code. If the parties
are unable to agree on a course of action, WPX shall be required to take any course of action
consistent with Tax Law that Williams reasonably determines, in good faith and taking into account
the interests of WPX and Williams, in order to
implement the provisions of Section 4.2(a). This Section 4.2(c) shall not apply as to any matters
or transactions with respect to which the IRS has issued (i) a private letter ruling to Williams or
WPX or (ii) other guidance that can be relied upon conclusively to the effect that the transaction

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or event at issue does not adversely affect the Internal Spin or the External Spin under
Section 355 or Section 368(a)(1)(D) of the Code.

     (d) WPX covenants that its officers and directors will not discuss any acquisitions of the
Stock of WPX or any WPX Group member during the two-year period beginning on the Spin Date without
permission from Williams, such permission not to be unreasonably withheld.

ARTICLE V

INDEMNITIES

     Section 5.1 Spin Indemnities.

     (a) Williams shall be responsible for and shall indemnify and hold harmless each member of the
WPX Group from and against all Spin Taxes, except for those Spin Taxes for which the WPX Group is
responsible under Section 5.1(b) of this Agreement.

     (b) WPX shall be responsible for and shall indemnify, defend and hold harmless Williams from
and against all Spin Taxes that are incurred by any member of the Williams Group by reason of the
breach by any member of the WPX Group of any of its representations or covenants hereunder or in
the Separation Agreement, or made in connection with the Private Ruling, the Private Ruling
Application or the Tax Opinion.

     Section 5.2 Transfer Tax Indemnities.

     Williams shall indemnify and hold harmless each member of the WPX Group for any transfer Taxes
arising solely as a result of transferring any assets to any member of the WPX Group on or prior to
the Spin Date.

     Section 5.3 No Other Liability.

     Except as specifically provided in this Agreement, WPX and Williams shall have no liability to
each other with respect to Taxes.

     Section 5.4 Tax Characterization of Payments.

     For all Tax purposes, and notwithstanding any other provision of this Agreement, to the extent
permitted by applicable law, the parties hereto shall treat any payment made pursuant to this
Agreement (other than interest thereon) as a capital contribution or dividend distribution, as the
case may be (except to the extent that the parties treat such payment as the settlement of an
intercompany liability), made immediately before WPX ceased to be an includible corporation in the
Williams Group under Section 1504 of the Code and, accordingly, as not includible in the taxable
income of the recipient. If any payment under this Agreement is not permitted to be so treated
(because, for example, the payment relates to an event occurring after such date) or as a result of
a Final Determination it is determined that the receipt or accrual of any payment made under this
Agreement is taxable to the recipient of such payment, the party making the payment

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shall pay to the recipient an amount equal to any increase in the income Taxes of the
recipient as a result of receiving the payment (grossed up to take into account such payment, if
applicable).

ARTICLE VI

PROCEEDINGS, COOPERATION, AND RECORD RETENTION

     Section 6.1 Control of Proceedings.

     (a) Williams shall have sole and absolute authority to administer and control any Proceeding
relating to (i) any Consolidated Returns, (ii) any Combined Returns, and (iii) any other Proceeding
that may result in Tax liability to Williams. Each member of the WPX Group shall execute and
deliver to Williams any power of attorney or other document requested by Williams in connection
with any such Proceeding. With respect to Proceedings subject to the first sentence of this
Section 6.1(a), no agent or employee of any member of the WPX Group shall provide any information
(whether written or oral) to any Tax Authority except at the direction of Williams.

     (b) In the event of any Proceeding as a result of which WPX could reasonably be expected to
become liable for any Spin Taxes pursuant to Section 5.1(b) and which Williams has the right to
administer and control pursuant to Section 6.1(a) above (i) Williams shall consult with WPX
reasonably in advance of taking any significant action in connection with such Proceeding, (ii)
Williams shall offer WPX a reasonable opportunity to comment before submitting any written
materials prepared or furnished in connection with such Proceeding, (iii) WPX shall have the right
to participate in such Proceeding, (iv) Williams shall defend such Proceeding diligently and in
good faith as if it were the only party in interest in connection with such Proceeding, and (iv)
Williams shall provide WPX with copies of any written materials relating to such Proceeding
received from the relevant Tax Authority. Notwithstanding anything in the preceding sentence to
the contrary, the final determination of the positions taken (including with respect to settlement
or other disposition) in any such Proceeding shall be made in the sole discretion of Williams,
except that any settlement that will result in liability to WPX shall be subject to the consent of
WPX, which consent shall not be unreasonably delayed, denied or withheld.

     Section 6.2 Cooperation.

     The WPX Group and the Williams Group shall cooperate with each other in the highest standard
of good faith regarding all provisions of this Agreement. Such cooperation shall include (i)
providing to each other information relevant to this Agreement as may be reasonably requested, (ii)
executing documents necessary for each party to effect the provisions of this Agreement, (iii)
making any officers, directors, employees and agents available to each other as each party may
reasonably request to comply with the provisions of this Agreement, and (iv) securing the covenant
of any acquirer of any member of WPX Group or Williams Group, or any newly-formed or acquired
subsidiary of WPX Group or Williams Group, to comply with this Agreement.

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     Section 6.3 Books and Records.

     The parties shall maintain Tax Information for 10 years after the filing date of the Tax
Return to which the Tax Information relates. After such period, the members of the WPX Group or
the Williams Group, as the case may be, shall not dispose of or destroy any Tax Information without
first providing the other group the opportunity to obtain such Tax Information.

ARTICLE VII

MISCELLANEOUS

     Section 7.1 Method of Payment; Interest.

     Any Required Payment shall be made by wire transfer of immediately available funds. There
shall be added to any Required Payment interest at the underpayment rate set forth in Section
6621(a)(2) of the Code (compounded daily) for the period beginning on the Required Payment Date and
ending on the date of receipt of the Required Payment; provided, however, that the interest rate to
be used in this Section 7.1 shall be the large corporate underpayment rate set forth in Section
6621(c) of the Code (instead of the underpayment rate set forth in Section 6621(a)(2) of the Code)
to the extent that the Required Payment relates to an adjustment for which the IRS has imposed
interest at the large corporate underpayment rate set forth in Section 6621(c).

     Section 7.2 Successors and Assigns.

     This Agreement shall inure to the benefit of and be binding upon the parties hereto and their
respective successors and permitted assigns, but neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by either party without the prior written
consent of the other party, such consent not to be unreasonably withheld, denied or delayed.

     Section 7.3 Effect of Agreement.

     This Agreement shall determine the rights and liabilities of the parties as to the matters
provided for in this Agreement, whether or not such determination is effective for financial
reporting or other purposes.

     Section 7.4 Term of Agreement.

     This Agreement shall become effective as of the date of its execution and remain in effect
until the parties agree in writing to its termination.

     Section 7.5 Entire Agreement.

     This Agreement sets forth the entire agreement and understanding of the parties in respect of
the subject matter contained in this Agreement and supersedes all prior or contemporaneous
agreements, promises, covenants, arrangements, representations or warranties, whether oral or
written, by any party or by any officer, employee or representative of any party.

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     Section 7.6 Amendments and Waivers.

     This Agreement shall not be modified, supplemented or terminated except by a writing duly
signed by each of the parties hereto, and no waiver of any provision of this Agreement shall be
effective unless in a writing duly signed by the party sought to be bound.

     Section 7.7 Notices.

     Any payment, notice, communication or approval required or permitted to be given under this
Agreement shall be deemed to have been duly given if delivered by hand or deposited in the United
States mail, postage prepaid and sent by certified or registered mail, if addressed to Williams, at

The Williams Companies, Inc.

One Williams Center

Tulsa, Oklahoma 74172

Attention: __________

if addressed to WPX, at

WPX Energy, Inc

One Williams Center

Tulsa, Oklahoma 74172

Attention: __________

     Section 7.8 Code References.

     Any references to sections of the Code or the Regulations shall be deemed to refer to any
corresponding provisions of succeeding law as in effect from time to time.

     Section 7.9 Third Parties.

     Nothing expressed or implied in this Agreement is intended or shall be construed to confer
upon or give to any person other than the parties hereto and each of their successors and assigns
any rights or remedies under or by reason of this Agreement.

     Section 7.10 Governing Law.

     This Agreement shall be governed by and construed in accordance with the laws of the State of
Oklahoma without regard to principles of conflicts of law.

     Section 7.11 Severability.

     If any provision of this Agreement or the application of this Agreement in any circumstance is
held invalid or unenforceable, the remainder of this Agreement and the
application of this Agreement in any other circumstance shall not be affected thereby, the
provisions of this Agreement being severable in any such instance.

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     Section 7.12 Counterparts.

     This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.

     Section 7.13 Dispute Resolution.

     The parties agree that any dispute arising under this Agreement shall be resolved in
accordance with the Dispute Resolution procedures set forth in Article X of the Separation
Agreement.

     Section 7.14 Information and Expenses.

     Williams will bear preparation and filing costs for all Tax Returns or WPX Pro Forma Returns
that it is responsible for preparing and filing pursuant to this Agreement including any assistance
provided to WPX pursuant to Section 2.1(b) above. WPX will bear preparation and filing costs for
all Tax Returns that it is responsible for preparing and filing pursuant to this Agreement
including any assistance provided to Williams pursuant to Sections 2.1(a) and 2.3(a) above. Each
of Williams and WPX will bear its own costs incurred in furnishing records, documents, or
information requested by the other party in connection with the preparation of any Tax Returns or
WPX Pro Forma Returns or in connection with any Proceeding for any Tax Returns.

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     The parties hereto have caused this Agreement to be duly executed as of the date first written
above.

	 	 	 	 	 
	 	THE WILLIAMS COMPANIES, INC.

 	 
	 	By:  	
 	 
	 	Its:  	
 	 
	 
	 	WPX ENERGY, INC.

 	 
	 	By:  	
 	 
	 	Its:  	
 	 
	 

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EXHIBIT 4.1

PHOENIX RESIDENTIAL SECURITIES, LLC,

Depositor,

[__________________________],

Master Servicer,

and

[          ]

Trustee

FORM OF POOLING AND SERVICING AGREEMENT

Dated as of [________] 1, 20[_]

Mortgage-Backed Pass-Through Certificates

Series 20[__]-[ABC][_]

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE I DEFINITIONS
	 	 	3	 
	 
	Section 1.01. Definitions
	 	 	3	 
	Section 1.02. Determination of LIBOR
	 	 	50	 
	 
	ARTICLE II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES
	 	 	52	 
	 
	Section 2.01. Conveyance of Mortgage Loans
	 	 	52	 
	Section 2.02. Acceptance by Trustee
	 	 	56	 
	Section 2.03. Representations, Warranties and Covenants of the Master Servicer and the Depositor
	 	 	57	 
	Section 2.04. Representations and Warranties of [                    ]
	 	 	59	 
	Section 2.05. Execution and Authentication of Certificates; Conveyance of REMIC I Regular Interests
	 	 	62	 
	Section 2.06. Purposes and Powers of the Trust
	 	 	62	 
	Section 2.07. Agreement Regarding Ability to Disclose
	 	 	63	 
	 
	ARTICLE III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
	 	 	64	 
	 
	Section 3.01. Master Servicer to Act as Servicer
	 	 	64	 
	Section 3.02. Subservicing Agreements Between Master Servicer and Subservicers; Enforcement of Subservicers’ Obligations; Special Servicing
	 	 	65	 
	Section 3.03. Successor Subservicers
	 	 	67	 
	Section 3.04. Liability of the Master Servicer
	 	 	67	 
	Section 3.05. No Contractual Relationship Between Subservicer and Trustee or Certificateholders
	 	 	67	 
	Section 3.06. Assumption or Termination of Subservicing Agreements by Trustee
	 	 	67	 
	Section 3.07. Collection of Certain Mortgage Loan Payments; Deposits to Custodial Account
	 	 	68	 
	Section 3.08. Subservicing Accounts; Servicing Accounts
	 	 	70	 
	Section 3.09. Access to Certain Documentation and Information Regarding the Mortgage Loans
	 	 	72	 
	Section 3.10. Permitted Withdrawals from the Custodial Account
	 	 	72	 
	Section 3.11. Maintenance of Primary Insurance Coverage
	 	 	74	 
	Section 3.12. Maintenance of Fire Insurance and Omissions and Fidelity Coverage
	 	 	75	 
	Section 3.13. Enforcement of Due-on-Sale Clauses; Assumption and Modification Agreements; Certain Assignments
	 	 	76	 
	 	 	 	 	 
	 

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TABLE OF CONTENTS
(continued)

	 	 	 	 	 

	Section 3.14. Realization Upon Defaulted Mortgage Loans
	 	 	78	 
	Section 3.15. Trustee to Cooperate; Release of Custodial Files
	 	 	81	 
	Section 3.16. Servicing and Other Compensation; Compensating Interest
	 	 	82	 
	Section 3.17. Reports to the Trustee and the Depositor
	 	 	83	 
	Section 3.18. Annual Statement as to Compliance and Servicing Assessment
	 	 	83	 
	Section 3.19. Annual Independent Public Accountants’ Servicing Report
	 	 	84	 
	Section 3.20. Right of the Depositor in Respect of the Master Servicer
	 	 	84	 
	Section 3.21. Advance Facility
	 	 	84	 
	 
	ARTICLE IV PAYMENTS TO CERTIFICATEHOLDERS
	 	 	89	 
	 
	Section 4.01. Certificate Account
	 	 	89	 
	Section 4.02. Distributions
	 	 	89	 
	Section 4.03. Statements to Certificateholders; Statements to Rating Agencies; Exchange Act Reporting
	 	 	93	 
	Section 4.04. Distribution of Reports to the Trustee and the Depositor; P&I Advances by the Master Servicer
	 	 	98	 
	Section 4.05. Allocation of Realized Losses
	 	 	99	 
	Section 4.06. Reports of Foreclosures and Abandonment of Mortgaged Property
	 	 	101	 
	Section 4.07. Optional Purchase of Defaulted Mortgage Loans
	 	 	101	 
	Section 4.08. [Reserved]
	 	 	102	 
	Section 4.09. [Reserved]
	 	 	102	 
	 
	ARTICLE V THE CERTIFICATES
	 	 	103	 
	 
	Section 5.01. The Certificates
	 	 	103	 
	Section 5.02. Registration of Transfer and Exchange of Certificates
	 	 	105	 
	Section 5.03. Mutilated, Destroyed, Lost or Stolen Certificates
	 	 	110	 
	Section 5.04. Persons Deemed Owners
	 	 	111	 
	Section 5.05. Appointment of Paying Agent
	 	 	111	 
	Section 5.06. U.S.A. Patriot Act Compliance
	 	 	111	 
	 
	ARTICLE VI THE DEPOSITOR AND THE MASTER SERVICER
	 	 	112	 
	 
	Section 6.01. Respective Liabilities of the Depositor and the Master Servicer
	 	 	112	 
	Section 6.02. Merger or Consolidation of the Depositor or the Master Servicer; Assignment of Rights and Delegation of Duties by Master Servicer
	 	 	112	 
	 	 	 	 	 
	 

ii

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 

	Section 6.03. Limitation on Liability of the Depositor, the Master Servicer and Others
	 	 	113	 
	Section 6.04. Depositor and Master Servicer Not to Resign
	 	 	114	 
	 
	ARTICLE VII DEFAULT
	 	 	115	 
	 
	Section 7.01. Events of Default
	 	 	115	 
	Section 7.02. Trustee or Depositor to Act; Appointment of Successor
	 	 	117	 
	Section 7.03. Notification to Certificateholders
	 	 	118	 
	Section 7.04. Waiver of Events of Default
	 	 	118	 
	 
	ARTICLE VIII CONCERNING THE TRUSTEE
	 	 	119	 
	 
	Section 8.01. Duties of Trustee
	 	 	119	 
	Section 8.02. Certain Matters Affecting the Trustee
	 	 	120	 
	Section 8.03. Trustee Not Liable for Certificates or Mortgage Loans
	 	 	122	 
	Section 8.04. Trustee May Own Certificates
	 	 	122	 
	Section 8.05. Master Servicer to Pay Trustee’s Fees and Expenses; Indemnification
	 	 	122	 
	Section 8.06. Eligibility Requirements for Trustee
	 	 	123	 
	Section 8.07. Resignation and Removal of the Trustee
	 	 	124	 
	Section 8.08. Successor Trustee
	 	 	125	 
	Section 8.09. Merger or Consolidation of Trustee
	 	 	125	 
	Section 8.10. Appointment of Co-Trustee or Separate Trustee
	 	 	125	 
	Section 8.11. Appointment of Custodians
	 	 	126	 
	Section 8.12. Appointment of Office or Agency
	 	 	127	 
	Section 8.13. DTC Letter of Representations
	 	 	127	 
	Section 8.14. [Reserved]
	 	 	127	 
	 
	ARTICLE IX TERMINATION
	 	 	128	 
	 
	Section 9.01. Termination Upon Purchase or Liquidation of All Mortgage Loans
	 	 	128	 
	Section 9.02. Additional Termination Requirements
	 	 	133	 
	 
	ARTICLE X REMIC PROVISIONS
	 	 	134	 
	 
	Section 10.01. REMIC Administration
	 	 	134	 
	Section 10.02. Master Servicer, REMIC Administrator and Trustee Indemnification
	 	 	137	 
	Section 10.03. Compliance with Withholding Requirements
	 	 	138	 
	 	 	 	 	 
	 

iii

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 

	ARTICLE XI MISCELLANEOUS PROVISIONS
	 	 	139	 
	 
	Section 11.01. Amendment
	 	 	139	 
	Section 11.02. Recordation of Agreement; Counterparts
	 	 	141	 
	Section 11.03. Limitation on Rights of Certificateholders
	 	 	142	 
	Section 11.04. Governing Law
	 	 	142	 
	Section 11.05. Notices
	 	 	143	 
	Section 11.06. Notices to Rating Agencies
	 	 	143	 
	Section 11.07. Severability of Provisions
	 	 	144	 
	Section 11.08. Supplemental Provisions for Resecuritization
	 	 	144	 
	Section 11.09. Intended Third Party Beneficiary
	 	 	145	 
	Section 11.10. Exchange Act Rule 17g-5 Procedures
	 	 	145	 
	Section 11.11. Tax Treatment
	 	 	145	 
	 
	ARTICLE XII COMPLIANCE WITH REGULATION AB
	 	 	147	 
	 
	Section 12.01. Intent of the Parties; Reasonableness
	 	 	147	 
	Section 12.02. Additional Representations and Warranties of the Trustee
	 	 	147	 
	Section 12.03. Information to Be Provided by the Trustee
	 	 	148	 
	Section 12.04. Report on Assessment of Compliance and Attestation
	 	 	148	 
	Section 12.05. Indemnification; Remedies
	 	 	149	 

	 	 	 

	EXHIBITS
	 	 
	Exhibit A

	 	Form of Class A Certificate
	Exhibit B-1

	 	Form of Class M Certificate
	Exhibit B-2

	 	Form of Class B Certificate
	Exhibit C

	 	Form of Class SB Certificate
	Exhibit D

	 	Form of Class R Certificate
	Exhibit E

	 	Form of Custodial Agreement
	Exhibit F

	 	Mortgage Loan Schedule
	Exhibit G

	 	Form of Request for Release
	Exhibit H-1

	 	Form of Transfer Affidavit and Agreement
	Exhibit H-2

	 	Form of Transferor Certificate
	Exhibit I

	 	Form of Investor Representation Letter
	Exhibit J

	 	Form of Transferor Representation Letter
	Exhibit K

	 	Form of Form 10-K Certification
	Exhibit L

	 	Form of Back-Up Certification to Form 10-K Certification
	Exhibit M

	 	Form of Lender Certification for Assignment of Mortgage Loan
	Exhibit N

	 	Form of Rule 144A Investment Representation
	Exhibit O

	 	[Reserved]
	Exhibit P

	 	Form of ERISA Representation Letter for Class M Certificates

iv

 

TABLE OF CONTENTS
(continued)

	 	 	 

	Exhibit Q

	 	Information to be Provided by the Master Servicer to the
Rating Agencies Relating to Reportable Modified Mortgage Loans
	Exhibit R

	 	Servicing Criteria to be Addressed in Assessment of Compliance

v

 

     This Pooling and Servicing Agreement, effective as of [________] 1, 20[_], among PHOENIX
RESIDENTIAL SECURITIES, LLC, as the depositor (together with its permitted successors and assigns,
the “Depositor”), [__________________________], as master servicer (together with its permitted
successors and assigns, the “Master Servicer”), and [_____________], a banking association
organized under the laws of the United States, as trustee (together with its permitted successors
and assigns, the “Trustee”).

PRELIMINARY STATEMENT:

     The Depositor intends to sell mortgage-backed pass-through certificates (collectively, the
“Certificates”), to be issued hereunder in seventeen Classes, which in the aggregate will evidence
the entire beneficial ownership interest in the Mortgage Loans (as defined herein) and certain
other related assets.

REMIC I

     As provided herein, the REMIC Administrator will make an election to treat the segregated pool
of assets consisting of the Mortgage Loans and certain other related assets subject to this
Agreement as a real estate mortgage investment conduit (a “REMIC”) for federal income tax purposes,
and such segregated pool of assets will be designated as “REMIC I.” The Class R-I Certificates will
represent the sole Class of “residual interests” in REMIC I for purposes of the REMIC Provisions
(as defined herein) under federal income tax law. The following table irrevocably sets forth the
designation, remittance rate (the “Uncertificated REMIC I Pass-Through Rate”) and initial
Uncertificated Principal Balance for each of the “regular interests” in REMIC I (the “REMIC I
Regular Interests”). The “latest possible maturity date” (determined solely for purposes of
satisfying Treasury Regulation Section 1.860G-1(a)(4)(iii)) for each REMIC I Regular Interest shall
be the Maturity Date. None of the REMIC I Regular Interests will be certificated.

	 	 	 	 	 	 	 
	 	 	 	 	Initial	 	 
	 	 	 	 	Uncertificated	 	 
	 	 	Uncertificated REMIC I	 	REMIC I	 	Latest Possible
	Designation	 	Pass-Through Rate	 	Principal Balance	 	Maturity Date
	LT1
	 	Variable(1)
	 	[_______]
	 	[________] 20[_]
	LT2
	 	Variable(1)
	 	[_______]
	 	[________] 20[_]
	LT3
	 	0.00%(1)
	 	[_______]
	 	[________] 20[_]
	LT4
	 	Variable(1)
	 	[_______]
	 	[________] 20[_]

 

			
	(1)	 	Calculated as provided in the definition of Uncertificated REMIC I Pass-Through
Rate.

1

 

REMIC II

     As provided herein, the REMIC Administrator will make an election to treat the segregated pool
of assets consisting of the REMIC I Regular Interests as a REMIC for federal income tax purposes,
and such segregated pool of assets will be designated as “REMIC II”. The Class R-II Certificates
will represent the sole Class of “residual interests” in REMIC II for purposes of the REMIC
Provisions under federal income tax law. The following table irrevocably sets forth the
designation, Pass-Through Rate, aggregate Initial Certificate Principal Balance, certain features,
month of Final Scheduled Distribution Date and initial ratings for each Class of Certificates
comprising the interests representing “regular interests” in REMIC II (the “REMIC II Regular
Interests”). The “latest possible maturity date” (determined solely for purposes of satisfying
Treasury Regulation Section 1.860G-1(a)(4)(iii)) for each Class of REMIC II Regular Interests shall
be the Maturity Date.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Aggregate	 	 	 	Month of	 	 
	 	 	 	 	Pass-Through	 	Initial Certificate	 	 	 	Final Scheduled	 	 
	Designation	 	Type	 	Rate	 	Principal Balance	 	Features	 	Distribution Date	 	Initial Ratings
	 
	 	 	 	 	 	 	 	 	 	 	 	[S&P]
	 	[Moody’s]
	Class A-1
	 	Regular
	 	Adjustable(1)(2)
	 	$[_______]
	 	[Senior/Adjustable Rate]
	 	[___] 20[_]
	 	[AAA]
	 	[Aaa]
	Class A-2
	 	Regular
	 	Adjustable(1)(2)
	 	$[_______]
	 	[Senior/Adjustable Rate]
	 	[___] 20[_]
	 	[AAA]
	 	[Aaa]
	Class A-3
	 	Regular
	 	Adjustable(1)(2)
	 	$[_______]
	 	[Senior/Adjustable Rate]
	 	[___] 20[_]
	 	[AAA]
	 	[Aaa]
	Class M-1
	 	Regular
	 	Adjustable(1)(2)
	 	$[_______]
	 	[Mezzanine/Adjustable
Rate]
	 	[___] 20[_]
	 	[AA+]
	 	[Aa1]
	Class M-2
	 	Regular
	 	Adjustable(1)(2)
	 	$[_______]
	 	[Mezzanine/Adjustable
Rate]
	 	[___] 20[_]
	 	[AA]
	 	[Aa2]
	Class M-3
	 	Regular
	 	Adjustable(1)(2)
	 	$[_______]
	 	[Mezzanine/Adjustable
Rate]
	 	[___] 20[_]
	 	[AA-]
	 	[Aa3]
	Class M-4
	 	Regular
	 	Adjustable(1)(2)
	 	$[_______]
	 	[Mezzanine/Adjustable
Rate]
	 	[___] 20[_]
	 	[A+]
	 	[A2]
	Class M-5
	 	Regular
	 	Adjustable(1)(2)
	 	$[_______]
	 	[Mezzanine/Adjustable
Rate]
	 	[___] 20[_]
	 	[A]
	 	[A3]
	Class M-6
	 	Regular
	 	Adjustable(1)(2)
	 	$[_______]
	 	[Mezzanine/Adjustable
Rate]
	 	[___] 20[_]
	 	[A-]
	 	[Baa1]
	Class M-7
	 	Regular
	 	Adjustable(1)
	 	$[_______]
	 	[Mezzanine/Adjustable
Rate]
	 	[___] 20[_]
	 	[BBB+]
	 	[Baa2]
	Class M-8
	 	Regular
	 	Adjustable(1)(2)
	 	$[_______]
	 	[Mezzanine/Adjustable
Rate]
	 	[___] 20[_]
	 	[BBB]
	 	[Baa3]
	Class M-9
	 	Regular
	 	Adjustable(1)(2)
	 	$[_______]
	 	[Subordinate/Adjustable
Rate]
	 	[___] 20[_]
	 	[BBB-]
	 	[Ba1]
	Class SB
	 	Regular
	 	(3)
	 	$[_______]
	 	[Subordinate]
	 	[N/A]
	 	[N/A]
	 	[N/A]

 

			
	(1)	 	The REMIC II Regular Interests ownership of which is represented by the
Class A, Class M and Class B Certificates, will accrue interest at a per annum rate equal to
LIBOR plus the applicable Margin, each subject to a payment cap as described in the definition
of “Pass-Through Rate”.
	 
	(2)	 	The Class A, Class M and Class B Certificates will also entitle their holders to
certain payments from the Holder of the Class SB Certificates from amounts to which the REMIC
II Regular Interest represented by the Class SB Certificates is entitled.
	 
	(3)	 	The Class SB Certificates will accrue interest as described in the
definition of Accrued Certificate Interest. The Class SB Certificates will not accrue
interest on their Certificate Principal Balance. The Class SB Certificates will represent
ownership of two REMIC II Regular Interests, a principal only regular interest designated
REMIC II Regular Interest SB-PO and an interest only regular interest designated REMIC II
Regular Interest SB-IO, which will be entitled to distributions as set forth herein.

2

 

     In consideration of the mutual agreements herein contained, the Depositor, the Master
Servicer and the Trustee agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.01. Definitions

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

     Accrued Certificate Interest: With respect to each Distribution Date and each Class
of [Class R, Class A Certificates, Class M Certificates and Class B Certificates], an amount equal
to interest accrued during the related Interest Accrual Period on the Certificate Principal Balance
thereof immediately prior to such Distribution Date at the related Pass-Through Rate for that
Distribution Date.

     With respect to each Distribution Date and the Class SB Certificates, interest accrued during
the preceding Interest Accrual Period on the Notional Amount at the related Pass-Through Rate for
that Distribution Date, reduced by any interest shortfalls with respect to the Mortgage Loans,
including Prepayment Interest Shortfalls to the extent not covered by Compensating Interest
pursuant to Section 3.16 or by Excess Cash Flow pursuant to Section 4.02(c)(v) and (vi).

     The amount of Accrued Certificate Interest on each Class of Class R, Class A, Class M and
Class B Certificates shall be reduced by the amount of (a) Prepayment Interest Shortfalls on the
Mortgage Loans during the prior calendar month (to the extent not covered by Compensating Interest
pursuant to Section 3.16) and Relief Act Shortfalls on Mortgage Loans during the related Due
Period, in each case allocated to each Class of Certificates pro rata, on the basis of Accrued
Certificate Interest payable on such Distribution Date absent such reductions and (b) the interest
portion of Realized Losses allocated to such Class through Subordination as described in Section
4.05.

     Accrued Certificate Interest shall accrue on the basis of a 360-day year and the actual number
of days in the related Interest Accrual Period.

     Adjusted Mortgage Rate: With respect to any Mortgage Loan and any date of
determination, the Mortgage Rate borne by the related Mortgage Note, less the rate at which the
related Subservicing Fee accrues.

     Adjustment Date: With respect to each adjustable-rate Mortgage Loan, each date set
forth in the related Mortgage Note on which an adjustment to the interest rate on such Mortgage
Loan becomes effective.

     Advances: The P&I Advances and the Servicing Advances.

3

 

     Affiliate: With respect to any Person, any other Person controlling, controlled by or
under common control with such first Person. For the purposes of this definition, “control” means
the power to direct the management and policies of such Person, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

     Agreement: This Pooling and Servicing Agreement and all amendments hereof and
supplements hereto.

     Amount Held for Future Distribution: With respect to any Distribution Date, the total
of the amounts held in the Custodial Account at the close of business on the preceding
Determination Date on account of (i) Liquidation Proceeds, Insurance Proceeds, Principal
Prepayments, Subsequent Recoveries, REO Proceeds, Mortgage Loan purchases made pursuant to Section
2.02, 2.03, 2.04 or 4.07 and Mortgage Loan substitutions made pursuant to Section 2.03 or 2.04
received or made in the month of such Distribution Date (other than such Liquidation Proceeds,
Subsequent Recoveries, Insurance Proceeds, REO Proceeds and purchases of Mortgage Loans that the
Master Servicer has deemed to have been received in the preceding month in accordance with Section
3.07(b)) and (ii) payments which represent early receipt of scheduled payments of principal and
interest due on a date or dates subsequent to the Due Date in the related Due Period.

     Appraised Value: With respect to any Mortgaged Property, one of the following: (i)
the lesser of (a) the appraised value of such Mortgaged Property based upon the appraisal or
appraisals (or field review) made at the time of the origination of the related Mortgage Loan, and
(b) the sales price of the Mortgaged Property at such time of origination, or (ii) in the case of a
Mortgaged Property securing a refinanced or modified Mortgage Loan, one of (1) the appraised value
based upon the appraisal made at the time of origination of the loan which was refinanced or
modified, (2) the appraised value determined in an appraisal made at the time of refinancing or
modification or (3) the sales price of the Mortgaged Property.

     Assignment: 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 of record the sale of the Mortgage Loan to the Trustee for
the benefit of Certificateholders, which assignment, notice of transfer or equivalent instrument
may be in the form of one or more blanket assignments covering Mortgages secured by Mortgaged
Properties located in the same county, if permitted by law and accompanied by an Opinion of Counsel
to that effect.

     Assignment Agreement: The Assignment and Assumption Agreement, dated the Closing
Date, between [_________________] and the Depositor relating to the transfer and assignment of the
Mortgage Loans.

     Available Distribution Amount: With respect to any Distribution Date, an amount equal
to (a) the sum of (i) the amount on deposit in the Custodial Account as of the close of business on
the immediately preceding Determination Date, including any Subsequent Recoveries, and amounts
deposited in the Custodial Account in connection with the substitution of Qualified Substitute
Mortgage Loans, (ii) the amount of any P&I Advance made on the immediately

4

 

preceding Certificate Account Deposit Date, (iii) any amount deposited in the Certificate
Account on the related Certificate Account Deposit Date pursuant to the second paragraph of Section
3.12(a), (iv) any amount that the Master Servicer is not permitted to withdraw from the Custodial
Account pursuant to Section 3.16(e) in respect of the Mortgage Loans and (v) any amount deposited
in the Certificate Account pursuant to Section 4.07 or 9.01, reduced by (b) the sum as of the close
of business on the immediately preceding Determination Date of (i) any payments or collections
consisting of prepayment charges on the Mortgage Loans that were received during the related
Prepayment Period, (ii) the Amount Held for Future Distribution and (iii) amounts permitted to be
withdrawn by the Master Servicer from the Custodial Account pursuant to clauses (ii)-(x),
inclusive, of Section 3.10(a).

     Bankruptcy Code: The Bankruptcy Code of 1978, as amended.

     Basis Risk Shortfall: Any [Class A Basis Risk Shortfall], [Class B Basis Risk
Shortfall] [or] [Class M Basis Risk Shortfall].

     Basis Risk Shortfall Carry-Forward Amount: Any [Class A Basic Risk Shortfall
Carry-Forward Amount], [Class B Basis Risk Shortfall Carry-Forward Amount] [or] [Class M Basis Risk
Shortfall Carry-Forward Amount].

     Book-Entry Certificate: Any Certificate registered in the name of the Depository or
its nominee.

     Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a day on which
banking institutions in the State of New York, the State of California, the State of Texas, the
State of Minnesota or the State of Illinois (and such other state or states in which the Custodial
Account or the Certificate Account are at the time located) are required or authorized by law or
executive order to be closed.

     Calendar Quarter: A Calendar Quarter shall consist of one of the following time
periods in any given year: January 1 through March 31, April 1 through June 30, July 1 through
September 30, and October 1 through December 31.

     Capitalization Reimbursement Amount: With respect to any Distribution Date, the
amount of unreimbursed Advances or Servicing Advances that were added to the Stated Principal
Balance of the Mortgage Loans during the preceding calendar month and reimbursed to the Master
Servicer or Subservicer pursuant to Section 3.10(a)(vii) on or prior to such Distribution Date.

     Cash Liquidation: With respect to any defaulted Mortgage Loan other than a Mortgage
Loan as to which an REO Acquisition occurred, a determination by the Master Servicer that it has
received all Insurance Proceeds, Liquidation Proceeds and other payments or cash recoveries which
the Master Servicer reasonably and in good faith expects to be finally recoverable with respect to
such Mortgage Loan.

     Certificate: Any [Class A] Certificate, [Class M] Certificate, [Class B] Certificate,
Class SB Certificate or Class R Certificate.

5

 

     Certificate Account: The account or accounts created and maintained pursuant to
Section 4.01, which shall be entitled “[_______________], as trustee, in trust for the registered
holders of Phoenix Residential Securities, LLC, Mortgage-Backed Pass-Through Certificates, Series
20[_]-[ABC][_]” and which account shall be held for the benefit of the Certificateholders and which
must be an Eligible Account.

     Certificate Account Deposit Date: With respect to any Distribution Date, the Business
Day prior thereto.

     Certificateholder or Holder: The Person in whose name a Certificate is registered in
the Certificate Register, except that neither a Disqualified Organization nor a Non-United States
Person shall be a holder of a Class R Certificate for any purpose hereof. Solely for the purpose of
giving any consent or direction pursuant to this Agreement (i) any Certificate, other than a Class
R Certificate, registered in the name of the Depositor, the Master Servicer or any Subservicer or
any Affiliate thereof and (ii) any Certificate (other than a Class R Certificate or Class SB
Certificate) that has been paid-in-full, shall be deemed not to be outstanding and the Percentage
Interest or Voting Rights evidenced thereby shall not be taken into account in determining whether
the requisite amount of Percentage Interests or Voting Rights necessary to effect any such consent
or direction has been obtained. All references herein to “Holders” or “Certificateholders” shall
reflect the rights of Certificate Owners as they may indirectly exercise such rights through the
Depository and participating members thereof, except as otherwise specified herein; provided,
however, that the Trustee shall be required to recognize as a “Holder” or “Certificateholder” only
the Person in whose name a Certificate is registered in the Certificate Register.

     Certificate Owner: With respect to a Book-Entry Certificate, the Person who is the
beneficial owner of such Certificate, as reflected on the books of an indirect participating
brokerage firm for which a Depository Participant acts as agent, if any, and otherwise on the books
of a Depository Participant, if any, and otherwise on the books of the Depository.

     Certificate Principal Balance: With respect to any [Class A Certificate, Class M
Certificate or Class B Certificate], on any date of determination, an amount equal to:

	 	(i)	 	the Initial Certificate Principal Balance of such Certificate as specified on
the face thereof, minus

	 	(ii)	 	the sum of (x) the aggregate of all amounts previously distributed with respect
to such Certificate (or any predecessor Certificate) and applied to reduce the
Certificate Principal Balance thereof pursuant to Section 4.02(c) and (y) the aggregate
of all reductions in Certificate Principal Balance of such Certificates deemed to have
occurred in connection with Realized Losses which were previously allocated to such
Certificate (or any predecessor Certificate) pursuant to Section 4.05;

provided, that with respect to any Distribution Date, the Certificate Principal Balances of the
[Class A Certificates, Class M Certificates and Class B Certificates] will be increased, in each
case to the extent of Realized Losses previously allocated thereto and remaining unreimbursed,

6

 

to the extent of Subsequent Recoveries in the following order of priority: first to the
[Class A Certificates, pro rata, and then to the Class M-1 Certificates, Class M-2 Certificates,
Class M-3 Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6 Certificates,
Class M-7 Certificates, Class M-8 Certificates, Class M-9 Certificates and Class B Certificates],
in that order.

     With respect to any Class SB Certificate, on any date of determination, an amount equal to the
Percentage Interest evidenced by such Certificate multiplied by an amount equal to (i) the excess,
if any, of (A) the then aggregate Stated Principal Balance of the Mortgage Loans over (B) the then
aggregate Certificate Principal Balance of the Class A Certificates, Class M Certificates and Class
B Certificates then outstanding, which represents the sum of (i) the Initial Principal Balance of
the REMIC II Regular Interest SB-PO, as reduced by Realized Losses allocated thereto and payments
deemed made thereon, and (ii) accrued and unpaid interest on the REMIC II Regular Interest SB-IO,
as reduced by Realized Losses allocated thereto.

     The Class R Certificates will not have a Certificate Principal Balance.

     Certificate Register and Certificate Registrar: The register maintained and the
registrar appointed pursuant to Section 5.02.

     Class: Collectively, all of the Certificates or uncertificated interests bearing the
same designation, as set forth in the table on page [__].

     Class A Basis Risk Shortfall: With respect to each Class of Class A Certificates and
any Distribution Date for which the Pass-Through Rate for any such Class of Certificates is equal
to the Net WAC Cap Rate, the excess, if any, of (x) the lesser of (a) Accrued Certificate Interest
on that Class of Certificates on such Distribution Date, calculated at a rate equal to One-Month
LIBOR plus the related Margin, as calculated for such Distribution Date, and (b) [__]% per annum,
over (y) Accrued Certificate Interest on such Class of Class A Certificates for such Distribution
Date calculated at the Net WAC Cap Rate.

     Class A Basis Risk Shortfall Carry-Forward Amount: With respect to each Class of
Class A Certificates and any Distribution Date, the sum of (a) the aggregate amount of Class A
Basis Risk Shortfall for such Class on such Distribution Date plus (b) any Class A Basis Risk
Shortfall Carry-Forward Amount for such Class remaining unpaid from the preceding Distribution
Date, together with interest thereon at a per annum rate equal to One-Month LIBOR plus the related
Margin for such Distribution Date.

     Class A Certificates: Collectively, the Class A-1 Certificates, Class A-2
Certificates and Class A-3 Certificates.

     [Class A Principal Distribution Amount: With respect to any Distribution Date (a)
prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for
that Distribution Date, the Principal Distribution Amount for that Distribution Date or (b) on or
after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the lesser
of:

	 	(i)	 	the Principal Distribution Amount for that Distribution Date; and

7

 

	 	(ii)	 	the excess, if any, of (A) the aggregate Certificate Principal Balance of the
Class A Certificates immediately prior to that Distribution Date over (B) the lesser of
(x) the product of (1) the applicable Subordination Percentage and (2) the aggregate
Stated Principal Balance of the Mortgage Loans after giving effect to distributions to
be made on that Distribution Date and (y) the excess, if any, of the aggregate Stated
Principal Balance of the Mortgage Loans after giving effect to distributions to be made
on that Distribution Date, over the Overcollateralization Floor.]

     [Class A-1 Certificate: Any one of the Class A-1 Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
A, senior to [the Class M Certificates, the Class B Certificates], the Class SB Certificates and
the Class R Certificates with respect to distributions and the allocation of Realized Losses in
respect of the Mortgage Loans as set forth in Section 4.05, and evidencing (i) an interest
designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive Basis Risk Shortfall Carry-Forward Amounts.]

     [Class A-1 Margin: Initially, [__]% per annum, and on any Distribution Date on or
after the second Distribution Date after the first possible Optional Termination Date, [__]% per
annum.]

     [Class A-2 Certificate: Any one of the Class A-2 Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
A, senior to [the Class M Certificates, the Class B Certificates], the Class SB Certificates and
the Class R Certificates with respect to distributions and the allocation of Realized Losses in
respect of the Mortgage Loans as set forth in Section 4.05, and evidencing (i) an interest
designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive Basis Risk Shortfall Carry-Forward Amounts.]

     [Class A-2 Margin: Initially, [__]% per annum, and on any Distribution Date on or
after the second Distribution Date after the first possible Optional Termination Date, [__]% per
annum.]

     [Class A-3 Certificate: Any one of the Class A-3 Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
A, senior to [the Class M Certificates, the Class B Certificates], the Class SB Certificates and
the Class R Certificates with respect to distributions and the allocation of Realized Losses in
respect of the Mortgage Loans as set forth in Section 4.05, and evidencing (i) an interest
designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive Basis Risk Shortfall Carry-Forward Amounts.]

     [Class A-3 Margin: Initially, [__]% per annum, and on any Distribution Date on or
after the second Distribution Date after the first possible Optional Termination Date, [__]% per
annum.]

     [Class B Basis Risk Shortfalls: With respect to the Class B Certificates and any
Distribution Date for which the Pass-Through Rate for such Class of Certificates is equal to the

8

 

Net WAC Cap Rate, the excess, if any, of (x) Accrued Certificate Interest on that Class of
Certificates on such Distribution Date, calculated at a rate equal to LIBOR plus the related
Margin, as calculated for such Distribution Date, over (y) Accrued Certificate Interest on such
Class of Class B Certificates for such Distribution Date calculated at the Net WAC Cap Rate.]

     [Class B Basis Risk Shortfall Carry-Forward Amounts: With respect to the Class B
Certificates and any Distribution Date, the sum of (a) the aggregate amount of Class B Basis Risk
Shortfall on such Distribution Date plus (b) any Class B Basis Risk Shortfall Carry-Forward Amount
remaining unpaid from the preceding Distribution Date, together with interest thereon at a per
annum rate equal to One-Month LIBOR plus the related Margin for such Distribution Date.

     [Class B-1 Certificate: Any one of the Class B-1 Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
B-2, senior to the Class SB Certificates and the Class R Certificates with respect to distributions
and the allocation of Realized Losses in as set forth in Section 4.05, and evidencing (i) an
interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and
(ii) the right to receive Basis Risk Shortfall Carry-Forward Amounts.]

     [Class B-1 Margin: Initially, [__]% per annum, and on any Distribution Date on or
after the second Distribution Date after the first possible Optional Termination Date, [__]% per
annum.]

     [Class B-2 Certificate: Any one of the Class B-2 Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
B-2, senior to the Class SB Certificates and the Class R Certificates with respect to distributions
and the allocation of Realized Losses in as set forth in Section 4.05, and evidencing (i) an
interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and
(ii) the right to receive Basis Risk Shortfall Carry-Forward Amounts.]

     [Class B-2 Margin: Initially, [__]% per annum, and on any Distribution Date on or
after the second Distribution Date after the first possible Optional Termination Date, [__]% per
annum.]

     [Class B-3 Certificate: Any one of the Class B-3 Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
B-2, senior to the Class SB Certificates and the Class R Certificates with respect to distributions
and the allocation of Realized Losses in as set forth in Section 4.05, and evidencing (i) an
interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and
(ii) the right to receive Basis Risk Shortfall Carry-Forward Amounts.]

     [Class B-3 Margin: Initially, [__]% per annum, and on any Distribution Date on or
after the second Distribution Date after the first possible Optional Termination Date, [__]% per
annum.]

     [Class B Principal Distribution Amount: With respect to any Distribution Date (a)
prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for
that Distribution Date, the remaining Principal Distribution Amount for that Distribution Date
after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal
Distribution

9

 

Amount, the Class M-2 Principal Distribution Amount, Class M-3 Principal Distribution Amount,
Class M-4 Principal Distribution Amount, Class M-5 Principal Distribution Amount, Class M-6
Principal Distribution Amount, the Class M-7 Principal Distribution Amount, the Class M-8 Principal
Distribution Amount and the Class M-9 Principal Distribution Amount] or (b) on or after the
Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the lesser of:

	 	(i)	 	the remaining Principal Distribution Amount for that Distribution Date after
distribution of the Class A Principal Distribution Amount, the Class M-1 Principal
Distribution Amount, the Class M-2 Principal Distribution Amount, Class M-3 Principal
Distribution Amount, Class M-4 Principal Distribution Amount, Class M-5 Principal
Distribution Amount, Class M-6 Principal Distribution Amount, the Class M-7 Principal
Distribution Amount, the Class M-8 Principal Distribution Amount and the Class M-9
Principal Distribution Amount; and
	 
	 	(ii)	 	the excess, if any, of (A) the sum of (1) the aggregate Certificate Principal
Balance of the Class A Certificates, Class M-1 Certificates, Class M-2 Certificates,
Class M-3 Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6
Certificates, Class M-7 Certificates, the Class M-8 Principal Distribution Amount and
the Class M-9 Certificates (after taking into account the payment of the Class A
Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the Class
M-2 Principal Distribution Amount, Class M-3 Principal Distribution Amount, Class M-4
Principal Distribution Amount, Class M-5 Principal Distribution Amount, Class M-6
Principal Distribution Amount, the Class M-7 Principal Distribution Amount, the Class
M-8 Principal Distribution Amount and the Class M-9 Principal Distribution Amount for
that Distribution Date) and (2) the Certificate Principal Balance of the Class B
Certificates immediately prior to that Distribution Date over (B) the lesser of (x) the
product of (1) the applicable Subordination Percentage and (2) the aggregate Stated
Principal Balance of the Mortgage Loans after giving effect to distributions to be made
on that Distribution Date and (y) the excess, if any, of the aggregate Stated Principal
Balance of the Mortgage Loans after giving effect to distributions to be made on that
Distribution Date, over the Overcollateralization Floor.]

     [Class M Basis Risk Shortfall: With respect to each Class of Class M Certificates and
any Distribution Date for which the Pass-Through Rate for any such Class of Certificates is equal
to the Net WAC Cap Rate, the excess, if any, of (x) the lesser of (a) Accrued Certificate Interest
on that Class of Certificates on such Distribution Date, calculated at a rate equal to One-Month
LIBOR plus the related Margin, as calculated for such Distribution Date, and (b) [__]% per annum,
over (y) Accrued Certificate Interest on such Class of Class M Certificates for such Distribution
Date calculated at the Net WAC Cap Rate.]

     [Class M Basis Risk Shortfall Carry-Forward Amount: With respect to each Class of
Class M Certificates and any Distribution Date, the sum of (a) the aggregate amount of Class M
Basis Risk Shortfall for such Class on such Distribution Date plus (b) any Class M Basis Risk
Shortfall Carry-Forward Amount for such Class remaining unpaid from the preceding

10

 

Distribution Date, together with interest thereon at a per annum rate equal to One-Month LIBOR
plus the related Margin for such Distribution Date.]

     Class M Certificates: Collectively, the Class M-1 Certificates, Class M-2
Certificates, Class M-3 Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6
Certificates, Class M-7 Certificates, Class M-8 Certificates and Class M-9 Certificates.

     [Class M-1 Certificate: Any one of the Class M-1 Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
B-1, senior to the Class M-2 Certificates, the Class M-3 Certificates, the Class M-4 Certificates,
the Class M-5 Certificates, the Class M-6 Certificates, the Class M-7 Certificates, the Class M-8
Certificates, the Class M-9 Certificates, the Class B Certificates, the Class SB Certificates and
the Class R Certificates with respect to distributions and the allocation of Realized Losses as set
forth in Section 4.05, and evidencing (i) an interest designated as a “regular interest” in REMIC
II for purposes of the REMIC Provisions and (ii) the right to receive Basis Risk Shortfall
Carry-Forward Amounts.]

     [Class M-1 Margin: Initially, [__]% per annum, and on any Distribution Date on or
after the second Distribution Date after the first possible Optional Termination Date, [__]% per
annum.]

     [Class M-1 Principal Distribution Amount: With respect to any Distribution Date (a)
prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for
that Distribution Date, the remaining Principal Distribution Amount for that Distribution Date
after distribution of the Class A Principal Distribution Amount or (b) on or after the Stepdown
Date if a Trigger Event is not in effect for that Distribution Date, the lesser of:

	 	(i)	 	the remaining Principal Distribution Amount for that Distribution Date after
distribution of the Class A Principal Distribution Amount; and
	 
	 	(ii)	 	the excess, if any, of (A) the sum of (1) the aggregate Certificate Principal
Balance of the Class A Certificates (after taking into account the payment of the Class
A Principal Distribution Amount for that Distribution Date) and (2) the Certificate
Principal Balance of the Class M-1 Certificates immediately prior to that Distribution
Date over (B) the lesser of (x) the product of (1) the applicable Subordination
Percentage and (2) the aggregate Stated Principal Balance of the Mortgage Loans after
giving effect to distributions to be made on that Distribution Date and (y) the excess,
if any, of the aggregate Stated Principal Balance of the Mortgage Loans after giving
effect to distributions to be made on that Distribution Date, over the
Overcollateralization Floor.]

     [Class M-2 Certificate: Any one of the Class M-2 Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
B-1, senior to the Class M-3 Certificates, the Class M-4 Certificates, the Class M-5 Certificates,
the Class M-6 Certificates, the Class M-7 Certificates, the Class M-8 Certificates, the Class M-9
Certificates, the Class B Certificates, the Class SB Certificates and the Class R Certificates with
respect to distributions and the allocation of Realized Losses as set forth in

11

 

Section 4.05, and evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the
REMIC Provisions and (ii) the right to receive Basis Risk Shortfall Carry-Forward Amounts.]

     [Class M-2 Margin: Initially, [__]% per annum, and on any Distribution Date on or
after the second Distribution Date after the first possible Optional Termination Date, [__]% per
annum.]

     [Class M-2 Principal Distribution Amount: With respect to any Distribution Date (a)
prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for
that Distribution Date, the remaining Principal Distribution Amount for that Distribution Date
after distribution of the Class A Principal Distribution Amount and the Class M-1 Principal
Distribution Amount or (b) on or after the Stepdown Date if a Trigger Event is not in effect for
that Distribution Date, the lesser of:

	 	(i)	 	the remaining Principal Distribution Amount for that Distribution Date after
distribution of the Class A Principal Distribution Amount and the Class M-1 Principal
Distribution Amount; and
	 
	 	(ii)	 	the excess, if any, of (A) the sum of (1) the aggregate Certificate Principal
Balance of the Class A Certificates and Class M-1 Certificates (after taking into
account the payment of the Class A Principal Distribution Amount and the Class M-1
Principal Distribution Amount for that Distribution Date) and (2) the Certificate
Principal Balance of the Class M-2 Certificates immediately prior to that Distribution
Date over (B) the lesser of (x) the product of (1) the applicable Subordination
Percentage and (2) the aggregate Stated Principal Balance of the Mortgage Loans after
giving effect to distributions to be made on that Distribution Date and (y) the excess,
if any, of the aggregate Stated Principal Balance of the Mortgage Loans after giving
effect to distributions to be made on that Distribution Date, over the
Overcollateralization Floor.]

     [Class M-3 Certificate: Any one of the Class M-3 Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
B-1, senior to the Class M-4 Certificates, the Class M-5 Certificates, the Class M-6 Certificates,
the Class M-7 Certificates, the Class M-8 Certificates, the Class M-9 Certificates, the Class B
Certificates, the Class SB Certificates and the Class R Certificates with respect to distributions
and the allocation of Realized Losses as set forth in Section 4.05, and evidencing (i) an interest
designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive Basis Risk Shortfall Carry-Forward Amounts.]

     [Class M-3 Margin: Initially, [__]% per annum, and on any Distribution Date on or
after the second Distribution Date after the first possible Optional Termination Date, [__]% per
annum.]

     [Class M-3 Principal Distribution Amount: With respect to any Distribution Date (a)
prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for
that Distribution Date, the remaining Principal Distribution Amount for that Distribution Date

12

 

after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal
Distribution Amount and the Class M-2 Principal Distribution Amount or (b) on or after the
Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the lesser of:

	 	(i)	 	the remaining Principal Distribution Amount for that Distribution Date after
distribution of the Class A Principal Distribution Amount, the Class M-1 Principal
Distribution Amount and the Class M-2 Principal Distribution Amount; and
	 
	 	(ii)	 	the excess, if any, of (A) the sum of (1) the aggregate Certificate Principal
Balance of the Class A Certificates, Class M-1 Certificates and Class M-2 Certificates
(after taking into account the payment of the Class A Principal Distribution Amount,
the Class M-1 Principal Distribution Amount and the Class M-2 Principal Distribution
Amount for that Distribution Date) and (2) the Certificate Principal Balance of the
Class M-3 Certificates immediately prior to that Distribution Date over (B) the lesser
of (x) the product of (1) the applicable Subordination Percentage and (2) the aggregate
Stated Principal Balance of the Mortgage Loans after giving effect to distributions to
be made on that Distribution Date and (y) the excess, if any, of the aggregate Stated
Principal Balance of the Mortgage Loans after giving effect to distributions to be made
on that Distribution Date, over the Overcollateralization Floor.]

     [Class M-4 Certificate: Any one of the Class M-4 Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
B-1, senior to the Class M-5 Certificates, the Class M-6 Certificates, the Class M-7 Certificates,
the Class M-8 Certificates, the Class M-9 Certificates, the Class B Certificates, the Class SB
Certificates and the Class R Certificates with respect to distributions and the allocation of
Realized Losses as set forth in Section 4.05, and evidencing (i) an interest designated as a
“regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the right to receive
Basis Risk Shortfall Carry-Forward Amounts.]

     [Class M-4 Margin: Initially, [__]% per annum, and on any Distribution Date on or
after the second Distribution Date after the first possible Optional Termination Date, [__]% per
annum.]

     [Class M-4 Principal Distribution Amount: With respect to any Distribution Date (a)
prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for
that Distribution Date, the remaining Principal Distribution Amount for that Distribution Date
after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal
Distribution Amount, the Class M-2 Principal Distribution Amount and the Class M-3 Principal
Distribution Amount or (b) on or after the Stepdown Date if a Trigger Event is not in effect for
that Distribution Date, the lesser of:

	 	(i)	 	the remaining Principal Distribution Amount for that Distribution Date after
distribution of the Class A Principal Distribution Amount, the Class M-1 Principal
Distribution Amount, the Class M-2 Principal Distribution Amount and the Class M-3
Principal Distribution Amount ; and

13

 

	 	(ii)	 	the excess, if any, of (A) the sum of (1) the aggregate Certificate Principal
Balance of the Class A Certificates, Class M-1 Certificates, Class M-2 Certificates and
Class M-3 Certificates (after taking into account the payment of the Class A Principal
Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2
Principal Distribution Amount and the Class M-3 Principal Distribution Amount for that
Distribution Date) and (2) the Certificate Principal Balance of the Class M-4
Certificates immediately prior to that Distribution Date over (B) the lesser of (x) the
product of (1) the applicable Subordination Percentage and (2) the aggregate Stated
Principal Balance of the Mortgage Loans after giving effect to distributions to be made
on that Distribution Date and (y) the excess, if any, of the aggregate Stated Principal
Balance of the Mortgage Loans after giving effect to distributions to be made on that
Distribution Date, over the Overcollateralization Floor.]

     [Class M-5 Certificate: Any one of the Class M-5 Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
B-1, senior to the Class M-6 Certificates, the Class M-7 Certificates, the Class M-8 Certificates,
the Class M-9 Certificates, the Class B Certificates, the Class SB Certificates and the Class R
Certificates with respect to distributions and the allocation of Realized Losses as set forth in
Section 4.05, and evidencing (i) an interest designated as a “regular interest” in REMIC II for
purposes of the REMIC Provisions and (ii) the right to receive Basis Risk Shortfall Carry-Forward
Amounts.]

     [Class M-5 Margin: Initially, [__]% per annum, and on any Distribution Date on or
after the second Distribution Date after the first possible Optional Termination Date, [__]% per
annum.]

     [Class M-5 Principal Distribution Amount: With respect to any Distribution Date (a)
prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for
that Distribution Date, the remaining Principal Distribution Amount for that Distribution Date
after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal
Distribution Amount, the Class M-2 Principal Distribution Amount, Class M-3 Principal Distribution
Amount and the Class M-4 Principal Distribution Amount or (b) on or after the Stepdown Date if a
Trigger Event is not in effect for that Distribution Date, the lesser of:

	 	(i)	 	the remaining Principal Distribution Amount for that Distribution Date after
distribution of the Class A Principal Distribution Amount, the Class M-1 Principal
Distribution Amount, the Class M-2 Principal Distribution Amount, Class M-3 Principal
Distribution Amount and the Class M-4 Principal Distribution Amount; and
	 
	 	(ii)	 	the excess, if any, of (A) the sum of (1) the aggregate Certificate Principal
Balance of the Class A Certificates, Class M-1 Certificates, Class M-2 Certificates,
Class M-3 Certificates and Class M-4 Certificates (after taking into account the
payment of the Class A Principal Distribution Amount, the Class M-1 Principal
Distribution Amount, the Class M-2 Principal Distribution Amount,

14

 

	 	 	 	Class M-3 Principal Distribution Amount and the Class M-4 Principal Distribution
Amount for that Distribution Date) and (2) the Certificate Principal Balance of the
Class M-5 Certificates immediately prior to that Distribution Date over (B) the
lesser of (x) the product of (1) the applicable Subordination Percentage and (2) the
aggregate Stated Principal Balance of the Mortgage Loans after giving effect to
distributions to be made on that Distribution Date and (y) the excess, if any, of
the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to
distributions to be made on that Distribution Date, over the Overcollateralization
Floor.]

     [Class M-6 Certificate: Any one of the Class M-6 Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
B-1, senior to the Class M-7 Certificates, the Class M-8 Certificates, the Class M-9 Certificates,
the Class B Certificates, the Class SB Certificates and the Class R Certificates with respect to
distributions and the allocation of Realized Losses as set forth in Section 4.05, and evidencing
(i) an interest designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions
and (ii) the right to receive Basis Risk Shortfall Carry-Forward Amounts.]

     [Class M-6 Margin: Initially, [__]% per annum, and on any Distribution Date on or
after the second Distribution Date after the first possible Optional Termination Date, [__]% per
annum.]

     [Class M-6 Principal Distribution Amount: With respect to any Distribution Date (a)
prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for
that Distribution Date, the remaining Principal Distribution Amount for that Distribution Date
after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal
Distribution Amount, the Class M-2 Principal Distribution Amount, Class M-3 Principal Distribution
Amount, Class M-4 Principal Distribution Amount and the Class M-5 Principal Distribution Amount or
(b) on or after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date,
the lesser of:

	 	(i)	 	the remaining Principal Distribution Amount for that Distribution Date after
distribution of the Class A Principal Distribution Amount, the Class M-1 Principal
Distribution Amount, the Class M-2 Principal Distribution Amount, Class M-3 Principal
Distribution Amount, Class M-4 Principal Distribution Amount and the Class M-5
Principal Distribution Amount; and
	 
	 	(ii)	 	the excess, if any, of (A) the sum of (1) the aggregate Certificate Principal
Balance of the Class A Certificates, Class M-1 Certificates, Class M-2 Certificates,
Class M-3 Certificates, Class M-4 Certificates and Class M-5 Certificates (after taking
into account the payment of the Class A Principal Distribution Amount, the Class M-1
Principal Distribution Amount, the Class M-2 Principal Distribution Amount, Class M-3
Principal Distribution Amount, Class M-4 Principal Distribution Amount and the Class
M-5 Principal Distribution Amount for that Distribution Date) and (2) the Certificate
Principal Balance of the Class M-6 Certificates immediately prior to that Distribution
Date over (B) the lesser of (x) the product of (1) the applicable Subordination

15

 

	 	 	 	Percentage and (2) the aggregate Stated Principal Balance of the Mortgage Loans
after giving effect to distributions to be made on that Distribution Date and (y)
the excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans
after giving effect to distributions to be made on that Distribution Date, over the
Overcollateralization Floor.]

     [Class M-7 Certificate: Any one of the Class M-7 Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
B-1, senior to the Class M-8 Certificates, the Class M-9 Certificates, the Class B Certificates,
the Class SB Certificates and the Class R Certificates with respect to distributions and the
allocation of Realized Losses as set forth in Section 4.05, and evidencing (i) an interest
designated as a “regular interest” in REMIC II for purposes of the REMIC Provisions and (ii) the
right to receive Basis Risk Shortfall Carry-Forward Amounts.]

     [Class M-7 Margin: Initially, [__]% per annum, and on any Distribution Date on or
after the second Distribution Date after the first possible Optional Termination Date, [__]% per
annum.]

     [Class M-7 Principal Distribution Amount: With respect to any Distribution Date (a)
prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for
that Distribution Date, the remaining Principal Distribution Amount for that Distribution Date
after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal
Distribution Amount, the Class M-2 Principal Distribution Amount, Class M-3 Principal Distribution
Amount, Class M-4 Principal Distribution Amount, Class M-5 Principal Distribution Amount and the
Class M-6 Principal Distribution Amount or (b) on or after the Stepdown Date if a Trigger Event is
not in effect for that Distribution Date, the lesser of:

	 	(i)	 	the remaining Principal Distribution Amount for that Distribution Date after
distribution of the Class A Principal Distribution Amount, the Class M-1 Principal
Distribution Amount, the Class M-2 Principal Distribution Amount, Class M-3 Principal
Distribution Amount, Class M-4 Principal Distribution Amount, Class M-5 Principal
Distribution Amount and the Class M-6 Principal Distribution Amount; and
	 
	 	(ii)	 	the excess, if any, of (A) the sum of (1) the aggregate Certificate Principal
Balance of the Class A Certificates, Class M-1 Certificates, Class M-2 Certificates,
Class M-3 Certificates, Class M-4 Certificates, Class M-5 Certificates and Class M-6
Certificates (after taking into account the payment of the Class A Principal
Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2
Principal Distribution Amount, Class M-3 Principal Distribution Amount, Class M-4
Principal Distribution Amount, Class M-5 Principal Distribution Amount and the Class
M-6 Principal Distribution Amount for that Distribution Date) and (2) the Certificate
Principal Balance of the Class M-7 Certificates immediately prior to that Distribution
Date over (B) the lesser of (x) the product of (1) the applicable Subordination
Percentage and (2) the aggregate Stated Principal Balance of the Mortgage Loans after
giving effect to distributions to be made on that Distribution Date and (y) the excess,
if 

16

 

	 	 	 	any, of the aggregate Stated Principal Balance of the Mortgage Loans after giving effect to
distributions to be made on that Distribution Date, over the Overcollateralization
Floor.]

     [Class M-8 Certificate: Any one of the Class M-8 Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
B-1, senior to the Class M-9 Certificates, the Class B Certificates, the Class SB Certificates and
the Class R Certificates with respect to distributions and the allocation of Realized Losses as set
forth in Section 4.05, and evidencing (i) an interest designated as a “regular interest” in REMIC
II for purposes of the REMIC Provisions and (ii) the right to receive Basis Risk Shortfall
Carry-Forward Amounts.]

     [Class M-8 Margin: Initially, [__]% per annum, and on any Distribution Date on or
after the second Distribution Date after the first possible Optional Termination Date, [__]% per
annum.]

     [Class M-8 Principal Distribution Amount: With respect to any Distribution Date (a)
prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for
that Distribution Date, the remaining Principal Distribution Amount for that Distribution Date
after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal
Distribution Amount, the Class M-2 Principal Distribution Amount, Class M-3 Principal Distribution
Amount, Class M-4 Principal Distribution Amount, Class M-5 Principal Distribution Amount, the Class
M-6 Principal Distribution Amount and the Class M-7 Principal Distribution Amount or (b) on or
after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the lesser
of:

	 	(i)	 	the remaining Principal Distribution Amount for that Distribution Date after
distribution of the Class A Principal Distribution Amount, the Class M-1 Principal
Distribution Amount, the Class M-2 Principal Distribution Amount, Class M-3 Principal
Distribution Amount, Class M-4 Principal Distribution Amount, Class M-5 Principal
Distribution Amount, the Class M-6 Principal Distribution Amount and the Class M-7
Principal Distribution Amount; and
	 
	 	(ii)	 	the excess, if any, of (A) the sum of (1) the aggregate Certificate Principal
Balance of the Class A Certificates, Class M-1 Certificates, Class M-2 Certificates,
Class M-3 Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6
Certificates and Class M-7 Certificates (after taking into account the payment of the
Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the
Class M-2 Principal Distribution Amount, Class M-3 Principal Distribution Amount, Class
M-4 Principal Distribution Amount, Class M-5 Principal Distribution Amount, the Class
M-6 Principal Distribution Amount and the Class M-7 Principal Distribution Amount for
that Distribution Date) and (2) the Certificate Principal Balance of the Class M-8
Certificates immediately prior to that Distribution Date over (B) the lesser of (x) the
product of (1) the applicable Subordination Percentage and (2) the aggregate Stated
Principal Balance of the Mortgage Loans after giving effect to distributions to be made
on that Distribution Date and (y) the excess, if any, of the 

17

 

	 	 	 	aggregate Stated Principal Balance of the Mortgage Loans after giving effect to distributions
to be made on that Distribution Date, over the Overcollateralization Floor.]

     [Class M-9 Certificate: Any one of the Class M-9 Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
B-1, senior to the Class B Certificates, the Class SB Certificates and the Class R Certificates
with respect to distributions and the allocation of Realized Losses as set forth in Section 4.05,
and evidencing (i) an interest designated as a “regular interest” in REMIC II for purposes of the
REMIC Provisions and (ii) the right to receive Basis Risk Shortfall Carry-Forward Amounts.]

     [Class M-9 Margin: Initially, [__]% per annum, and on any Distribution Date on or
after the second Distribution Date after the first possible Optional Termination Date, [__]% per
annum.]

     [Class M-9 Principal Distribution Amount: With respect to any Distribution Date (a)
prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for
that Distribution Date, the remaining Principal Distribution Amount for that Distribution Date
after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal
Distribution Amount, the Class M-2 Principal Distribution Amount, Class M-3 Principal Distribution
Amount, Class M-4 Principal Distribution Amount, Class M-5 Principal Distribution Amount, the Class
M-6 Principal Distribution Amount, the Class M-7 Principal Distribution Amount and the Class M-8
Principal Distribution Amount or (b) on or after the Stepdown Date if a Trigger Event is not in
effect for that Distribution Date, the lesser of:

     (i) the remaining Principal Distribution Amount for that Distribution Date after distribution
of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the
Class M-2 Principal Distribution Amount, Class M-3 Principal Distribution Amount, Class M-4
Principal Distribution Amount, Class M-5 Principal Distribution Amount, the Class M-6 Principal
Distribution Amount, the Class M-7 Principal Distribution Amount and the Class M-8 Principal
Distribution Amount; and

     (ii) the excess, if any, of (A) the sum of (1) the aggregate Certificate Principal Balance of
the Class A Certificates, Class M-1 Certificates, Class M-2 Certificates, Class M-3 Certificates,
Class M-4 Certificates, Class M-5 Certificates, Class M-6 Certificates, Class M-7 Certificates and
Class M-8 Certificates (after taking into account the payment of the Class A Principal Distribution
Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount,
Class M-3 Principal Distribution Amount, Class M-4 Principal Distribution Amount, Class M-5
Principal Distribution Amount, the Class M-6 Principal Distribution Amount, the Class M-7 Principal
Distribution Amount and the Class M-8 Principal Distribution Amount for that Distribution Date) and
(2) the Certificate Principal Balance of the Class M-9 Certificates immediately prior to that
Distribution Date over (B) the lesser of (x) the product of (1) the applicable Subordination
Percentage and (2) the aggregate Stated Principal Balance of the Mortgage Loans after giving effect
to distributions to be made on that Distribution Date and (y) the excess, if any, of the aggregate
Stated Principal Balance of the

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Mortgage Loans after giving effect to distributions to be made on
that Distribution Date, over the Overcollateralization Floor.]

     Class R Certificate: Any one of the Class R-I Certificates or Class R-II
Certificates.

     Class R-I Certificate: Any one of the Class R-I Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
D and evidencing an interest designated as a “residual interest” in REMIC I for purposes of the
REMIC Provisions.

     Class R-II Certificate: Any one of the Class R-II Certificates executed by the
Trustee and authenticated by the Certificate Registrar substantially in the form annexed hereto as
Exhibit D and evidencing an interest designated as a “residual interest” in REMIC II for purposes
of the REMIC Provisions.

     [Class R Principal Distribution Amount: With respect to any Distribution Date (a)
prior to the Stepdown Date or on or after the Stepdown Date if a Trigger Event is in effect for
that Distribution Date, the Principal Distribution Amount for that Distribution Date or (b) on or
after the Stepdown Date if a Trigger Event is not in effect for that Distribution Date, the lesser
of:

     (i) the Principal Distribution Amount for that Distribution Date; and

     (ii) the excess, if any, of (A) the aggregate Certificate Principal Balance of the Class R
Certificates immediately prior to that Distribution Date over (B) the lesser of (x) the product of
(1) the applicable Subordination Percentage and (2) the aggregate Stated Principal Balance of the
Mortgage Loans after giving effect to distributions to be made on that Distribution Date and (y)
the excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans after giving
effect to distributions to be made on that Distribution Date, over the Overcollateralization
Floor.]

     Class SB Certificate: Any one of the Class SB Certificates executed by the Trustee
and authenticated by the Certificate Registrar substantially in the form annexed hereto as Exhibit
C, subordinate to the Class A Certificates, Class M Certificates and Class B Certificates with
respect to distributions and the allocation of Realized Losses as set forth in Section 4.05, and
evidencing an interest comprised of “regular interests” in REMIC II for purposes of the REMIC
Provisions together with certain obligations with respect to payments of Basis Risk Shortfall
Carry-Forward Amounts.

     Closing Date: [__________], 20[_].

     Code: The Internal Revenue Code of 1986.

     Commission: The Securities and Exchange Commission.

     Compensating Interest: With respect to any Distribution Date, any amount paid by the
Master Servicer in accordance with Section 3.16(f).

19

 

     Corporate Trust Office: The principal office of the Trustee at which at any
particular time its corporate trust business with respect to this Agreement shall be administered,
which office at the date of the execution of this instrument is located at [Address of Trustee]
Attention: Phoenix Residential Securities, LLC, Series 20[_]-[ABC][_].

     Credit Repository: Equifax, Transunion and Experian, or their successors in interest.

     Curtailment: Any Principal Prepayment made by a Mortgagor which is not a Principal
Prepayment in Full.

     Custodial Account: The custodial account or accounts created and maintained pursuant
to Section 3.07 in the name of a depository institution, as custodian for the holders of the
Certificates, for the holders of certain other interests in mortgage loans serviced or sold by the
Master Servicer and for the Master Servicer, into which the amounts set forth in Section 3.07 shall
be deposited directly. Any such account or accounts shall be an Eligible Account.

     Custodial Agreement: An agreement that may be entered into among the Depositor, the
Master Servicer, the Trustee and a Custodian in substantially the form of Exhibit E hereto.

     Custodial File: Any mortgage loan document in the Mortgage File that is required to
be delivered to the Trustee or the Custodian pursuant to Section 2.01(b) of this Agreement.

     Custodian: A custodian appointed pursuant to a Custodial Agreement.

     Cut-off Date Balance: $[__________].

     Cut-off Date: [____________], 20[_].

     Cut-off Date Principal Balance: With respect to any Mortgage Loan, the unpaid
principal balance thereof at the Cut-off Date after giving effect to all installments of principal
due on or prior thereto (or due during the month of the Cut-off Date), whether or not received.

     DBRS: DBRS, Inc., or its successor in interest.

     Debt Service Reduction: With respect to any Mortgage Loan, a reduction in the
scheduled Monthly Payment for such Mortgage Loan by a court of competent jurisdiction in a
proceeding under the Bankruptcy Code, except such a reduction constituting a Deficient Valuation or
any reduction that results in a permanent forgiveness of principal.

     Deficient Valuation: With respect to any Mortgage Loan, a valuation by a court of
competent jurisdiction of the Mortgaged Property in an amount less than the then outstanding
indebtedness under the Mortgage Loan, or any reduction in the amount of principal to be paid in
connection with any scheduled Monthly Payment that constitutes a permanent forgiveness of
principal, which valuation or reduction results from a proceeding under the Bankruptcy Code.

     Definitive Certificate: Any definitive, fully-registered Certificate.

20

 

     Deleted Mortgage Loan: A Mortgage Loan replaced or to be replaced with a Qualified
Substitute Mortgage Loan.

     Delinquent: As used herein, a Mortgage Loan is considered to be: “30 to 59 days” or
“30 or more days” delinquent when a payment due on any scheduled due date remains unpaid as of the
close of business on the next following monthly scheduled due date;
“60 to 89 days” or “60
or more days” delinquent when a payment due on any scheduled due date remains unpaid as of the
close of business on the second following monthly scheduled due date; and so on. The determination
as to whether a Mortgage Loan falls into these categories is made as of the close of business on
the last business day of each month. For example, a Mortgage Loan with a payment due on May 1 that
remained unpaid as of the close of business on June 30 would then be considered to be 30 to 59 days
delinquent. Delinquency information as of the Cut-off Date is determined and prepared as of the
close of business on the last business day immediately prior to the Cut-off Date.

     Depositor: As defined in the preamble hereto.

     Depository: The Depository Trust Company, or any successor Depository hereafter
named. The nominee of the initial Depository for purposes of registering those Certificates that
are to be Book-Entry Certificates is Cede & Co. The Depository shall at all times be a “clearing
corporation” as defined in Section 8-102(a)(5) of the Uniform Commercial Code of the State of New
York and a “clearing agency” registered pursuant to the provisions of Section 17A of the Exchange
Act.

     Depository Participant: A broker, dealer, bank or other financial institution or
other Person for whom from time to time a Depository effects book-entry transfers and pledges of
securities deposited with the Depository.

     Destroyed Mortgage Note: A Mortgage Note the original of which was permanently lost
or destroyed and has not been replaced.

     Determination Date: With respect to any Distribution Date, the [20th] day
(or if such [20th] day is not a Business Day, the Business Day immediately following
such [20th] day) of the month of the related Distribution Date.

     Disqualified Organization: Any organization defined as a “disqualified organization”
under Section 860E(e)(5) of the Code, including, if not otherwise included, any of the following:
(i) the United States, any State or political subdivision thereof, any possession of the United
States, or any agency or instrumentality of any of the foregoing (other than an instrumentality
which is a corporation if all of its activities are subject to tax and, except for Freddie Mac, a
majority of its board of directors is not selected by such governmental unit), (ii) a foreign
government, any international organization, or any agency or instrumentality of any of the
foregoing, (iii) any organization (other than certain farmers’ cooperatives described in Section
521 of the Code) which is exempt from the tax imposed by Chapter 1 of the Code (including the tax
imposed by Section 511 of the Code on unrelated business taxable income) and (iv) rural electric
and telephone cooperatives described in Section 1381(a)(2)(C) of the Code. A Disqualified
Organization also includes any “electing large partnership,” as defined in

21

 

Section 775(a) of the
Code and any other Person so designated by the Trustee based upon an Opinion of Counsel that the
holding of an Ownership Interest in a Class R Certificate by such Person may cause any REMIC or any
Person having an Ownership Interest in any Class of Certificates (other than such Person) to incur
a liability for any federal tax imposed under the Code that would not otherwise be imposed but for
the Transfer of an Ownership Interest in a Class R Certificate to
such Person. The terms “United States,” “State” and “international organization” shall have
the meanings set forth in Section 7701 of the Code or successor provisions.

     Distribution Date: The 25th day of any month beginning in [__________],
20[_] or, if such 25th day is not a Business Day, the Business Day immediately following
such 25th day.

     DTC Letter: The Letter of Representations, dated [__________], 20[_], among the
Trustee on behalf of the Trust Fund, [_________________], in its individual capacity as agent
thereunder and the Depository.

     Due Date: With respect to any Distribution Date and any Mortgage Loan, the day during
the related Due Period on which the Monthly Payment is due.

     Due Period: With respect to any Distribution Date, the calendar month of such
Distribution Date.

     Eligible Account: An account that is any of the following: (i) maintained with a
depository institution the debt obligations of which have been rated by each Rating Agency in its
highest rating available, or (ii) an account or accounts in a depository institution in which such
accounts are fully insured to the limits established by the FDIC, provided that any deposits not so
insured shall, to the extent acceptable to each Rating Agency, as evidenced in writing, be
maintained such that (as evidenced by an Opinion of Counsel delivered to the Trustee and each
Rating Agency) the registered Holders of Certificates have a claim with respect to the funds in
such account or a perfected first security interest against any collateral (which shall be limited
to Permitted Investments) securing such funds that is superior to claims of any other depositors or
creditors of the depository institution with which such account is maintained, or (iii) in the case
of the Custodial Account, a trust account or accounts maintained in the corporate trust department
of [______________], or (iv) in the case of the Certificate Account, a trust account or accounts
maintained in the corporate trust division of [______________], or (v) an account or accounts of a
depository institution acceptable each Rating Agency (as evidenced in writing by each Rating Agency
that use of any such account as the Custodial Account or the Certificate Account will not reduce
the rating assigned to any Class of Certificates by such Rating Agency below the lower of the
then-current rating or the rating assigned to such Certificates as of the Closing Date by such
Rating Agency.

     Eligible Master Servicing Compensation: With respect to any Distribution Date, the
lesser of (a) one-twelfth of [__]% of the Stated Principal Balance of the Mortgage Loans
immediately preceding such Distribution Date and (b) the sum of the Servicing Fee and all income
and gain on amounts held in the Custodial Account and the Certificate Account and payable to the
Certificateholders with respect to such Distribution Date; provided that for

22

 

purposes of this
definition the amount of the Servicing Fee will not be reduced pursuant to Section 7.02(a) except
as may be required pursuant to the last sentence of such Section.

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

     Event of Default: As defined in Section 7.01.

     [Excess Cash Flow: With respect to any Distribution Date, an amount equal to the sum
of (A) the excess of (i) the Available Distribution Amount for that Distribution Date over (ii) the
sum of (a) the Interest Distribution Amount for that Distribution Date and (b) the lesser of (1)
the aggregate Certificate Principal Balance of Class A Certificates, Class M Certificates and Class
B Certificates immediately prior to such Distribution Date and (2) the Principal Remittance Amount
for that Distribution Date to the extent not applied to pay interest on the Class A Certificates,
Class M Certificates and Class B Certificates on such Distribution Date and (B) the
Overcollateralization Reduction Amount, if any, for that Distribution Date.]

     Excess Overcollateralization Amount: With respect to any Distribution Date, the
excess, if any, of (a) the Overcollateralization Amount on such Distribution Date over (b) the
Required Overcollateralization Amount for such Distribution Date.

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

     Exchange Date: As defined in Section 5.02(e)(iii).

     Expense Fee Rate: With respect to any Mortgage Loan as of any date of determination,
the sum of the applicable Servicing Fee Rate and the per annum rate at which the applicable
Subservicing Fee accrues.

     Fannie Mae: Fannie Mae, a federally chartered and privately owned corporation
organized and existing under the Federal National Mortgage Association Charter Act, or any
successor thereto.

     Fitch: Fitch Ratings, or its successors in interest.

     FDIC: Federal Deposit Insurance Corporation or any successor thereto.

     Final Distribution Date: The Distribution Date on which the final distribution in
respect of the Certificates will be made pursuant to Section 9.01, which Final Distribution Date
shall in no event be later than the end of the 90-day liquidation period described in Section 9.02.

     Final Scheduled Distribution Date: [Solely for purposes of the face of the
Certificates, as follows: with respect to the Class [__] Certificates, the Distribution Date
occurring in [________] 20[_]; with respect to the Class [__] Certificates, Class [__] Certificates
and each Class of Class M Certificates and Class B Certificates, the Distribution Date occurring in
[________] 20[_]. No event of default under this Agreement will arise or become applicable solely
by reason of the failure to retire the entire Certificate Principal Balance of any Class of Class A
Certificates, Class M Certificates or Class B Certificates on or before its Final Scheduled
Distribution Date.]

23

 

     Foreclosure Profits: With respect to any Distribution Date or related Determination
Date and any Mortgage Loan, the excess, if any, of Liquidation Proceeds, Insurance Proceeds and REO
Proceeds (net of all amounts reimbursable therefrom pursuant to Section 3.10(a)(ii)) in respect of
each Mortgage Loan or REO Property for which a Cash Liquidation or REO Disposition occurred in the
related Prepayment Period over the sum of the unpaid principal balance of such Mortgage Loan or REO
Property (determined, in the case of an REO
Disposition, in accordance with Section 3.14) plus accrued and unpaid interest at the Mortgage
Rate on such unpaid principal balance from the Due Date to which interest was last paid by the
Mortgagor to the first day of the month following the month in which such Cash Liquidation or REO
Disposition occurred.

     Form 10-K Certification: As defined in Section 4.03(e).

     Freddie Mac: Freddie Mac, a corporate instrumentality of the United States created
and existing under Title III of the Emergency Home Finance Act of 1970, as amended, or any
successor thereto.

     HUD: The United States Department of Housing and Urban Development.

     Independent: When used with respect to any specified Person, means such a Person who
(i) is in fact independent of the Depositor, the Master Servicer and the Trustee, or any Affiliate
thereof, (ii) does not have any direct financial interest or any material indirect financial
interest in the Depositor, the Master Servicer or the Trustee or in an Affiliate thereof, and (iii)
is not connected with the Depositor, the Master Servicer or the Trustee as an officer, employee,
promoter, underwriter, trustee, partner, director or person performing similar functions.

     Index: With respect to each adjustable-rate Mortgage Loan and as to any Adjustment
Date therefor, the related index as stated in the related Mortgage Note.

     Initial Certificate Principal Balance: With respect to each Class of Certificates
(other than the Class R Certificates), the Certificate Principal Balance of such Class of
Certificates as of the Cut-off Date as set forth in the Preliminary Statement hereto.

     Insurance Proceeds: Proceeds paid in respect of the Mortgage Loans pursuant to any
Primary Insurance Policy or any other related insurance policy covering a Mortgage Loan, to the
extent such proceeds are payable to the mortgagee under the Mortgage, any Subservicer, the Master
Servicer or the Trustee and are not applied to the restoration of the related Mortgaged Property or
released to the Mortgagor in accordance with the procedures that the Master Servicer would follow
in servicing mortgage loans held for its own account.

     [Interest Accrual Period: With respect to the Class [_] Certificates, Class [_]
Certificates, Class [_] Certificates and Class [_] Certificates (i) with respect to the
Distribution Date in [_______] 20[_], the period commencing the Closing Date and ending on the day
preceding the Distribution Date in [_______] 20[_], and (ii) with respect to any Distribution Date
after the Distribution Date in [_______] 20[_], the period commencing on the Distribution Date in
the month immediately preceding the month in which such Distribution Date occurs and ending on the
day preceding such Distribution Date.

24

 

     Interest Distribution Amount: For any Distribution Date, the amounts payable pursuant
to Section 4.02(c)[(i)-(iii)].

     Interim Certification: As defined in Section 2.02.

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

     LIBOR: With respect to any Distribution Date, the arithmetic mean of the London
interbank offered rate quotations for one-month United States dollar deposits, determined on the
preceding LIBOR Rate Adjustment Date as set forth in Section 1.02 hereof.

     LIBOR Business Day: Any day other than (i) a Saturday or Sunday or (ii) a day on
which banking institutions in London, England are required or authorized to by law to be closed.

     LIBOR Certificates: [The Class A Certificates, Class M Certificates and Class B
Certificates.]

     LIBOR Rate Adjustment Date: With respect to each Distribution Date, the second LIBOR
Business Day immediately preceding the commencement of the related Interest Accrual Period.

     Liquidation Proceeds: Amounts (other than Insurance Proceeds) received by the Master
Servicer in connection with the taking of an entire Mortgaged Property by exercise of the power of
eminent domain or condemnation or in connection with the liquidation of a defaulted Mortgage Loan
through trustee’s sale, foreclosure sale or otherwise, other than REO Proceeds and Subsequent
Recoveries.

     Loan-to-Value Ratio: As of any date, the fraction, expressed as a percentage, the
numerator of which is the current principal balance of the related Mortgage Loan at the date of
determination and the denominator of which is the Appraised Value of the related Mortgaged
Property.

     Margin: The [Class A-1 Margin, Class A-2 Margin, Class A-3 Margin, Class M-1 Margin,
Class M-2 Margin, Class M-3 Margin, Class M-4 Margin, Class M-5 Margin, Class M-6 Margin, Class M-7
Margin, Class M-8 Margin, Class M-9 Margin and Class B Margin, as applicable.]

     Marker Rate: With respect to the Class SB Certificates or the REMIC II Regular
Interest SB-IO and any Distribution Date, a per annum rate equal to two (2) times the weighted
average of the Uncertificated REMIC I Pass-Through Rates for REMIC I Regular Interest LT2 and REMIC
I Regular Interest LT3.

     Master Servicer: As defined in the preamble hereto.

25

 

     Maturity Date: With respect to each REMIC II Regular Interest and REMIC I Regular
Interest, the latest possible maturity date, solely for purposes of Section 1.860G-1(a)(4)(iii) of
the Treasury Regulations, by which the Certificate Principal Balance of each Class of Certificates
would be reduced to zero, which is [_________], 20[__], which is the Distribution Date occurring in
the month following the last scheduled monthly payment of the Mortgage Loans.

     Maximum Mortgage Rate: As to any adjustable-rate Mortgage Loan, the per annum rate
indicated in Exhibit F hereto as the “NOTE CEILING,” which rate is the maximum interest rate that
may be applicable to such Mortgage Loan at any time during the life of such Mortgage Loan.

     Maximum Net Mortgage Rate: As to any adjustable-rate Mortgage Loan and any date of
determination, the Maximum Mortgage Rate minus the sum of the per annum rate at which the
Subservicing Fee accrues and the Servicing Fee Rate. With respect to any fixed-rate Mortgage Loan
and any date of determination, the Net Mortgage Rate.

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

     MERS® System: The system of recording transfers of Mortgages electronically
maintained by MERS.

     MIN: The Mortgage Identification Number for Mortgage Loans registered with MERS on
the MERS® System.

     Minimum Mortgage Rate: As to any adjustable-rate Mortgage Loan, a per annum rate
equal to the greater of (i) the Note Margin and (ii) the rate indicated in Exhibit F hereto as the
“NOTE FLOOR,” which rate may be applicable to such Mortgage Loan at any time during the life of
such adjustable-rate Mortgage Loan.

     Modified Mortgage Loan: Any Mortgage Loan that has been the subject of a Servicing
Modification.

     Modified Net Mortgage Rate: With respect to any Mortgage Loan that is the subject of
a Servicing Modification, the Net Mortgage Rate minus the rate per annum by which the Mortgage Rate
on such Mortgage Loan was reduced.

     MOM Loan: With respect to any Mortgage Loan, MERS acting as the mortgagee of such
Mortgage Loan, solely as nominee for the originator of such Mortgage Loan and its successors and
assigns, at the origination thereof.

     Monthly Payment: With respect to any Mortgage Loan (including any REO Property) and
the Due Date in any Due Period, the payment of principal and interest due thereon in accordance
with the amortization schedule at the time applicable thereto (after adjustment, if any, for
Curtailments and for Deficient Valuations occurring prior to such Due Date but before any
adjustment to such amortization schedule by reason of any bankruptcy, other than a Deficient
Valuation, or similar proceeding or any moratorium or similar waiver or grace period

26

 

and before any
Servicing Modification that constitutes a reduction of the interest rate on such Mortgage Loan).

     Moody’s: Moody’s Investors Service, Inc., or its successor in interest.

     Mortgage: With respect to each Mortgage Note related to a Mortgage Loan, the
mortgage, deed of trust or other comparable instrument creating a first or junior lien on an estate
in fee simple or leasehold interest in real property securing a Mortgage Note.

     Mortgage File: The mortgage documents listed in Section 2.01 pertaining to a
particular Mortgage Loan and any additional documents required to be added to the Mortgage File
pursuant to this Agreement.

     Mortgage Loans: Such of the mortgage loans transferred and assigned to the Trustee
pursuant to Section 2.01 as from time to time are held or deemed to be held as a part of the Trust
Fund, the Mortgage Loans originally so held being identified in the initial Mortgage Loan Schedule
attached hereto as Exhibit F, and Qualified Substitute Mortgage Loans held or deemed held as part
of the Trust Fund including, without limitation, each related Mortgage Note, Mortgage and Mortgage
File and all rights appertaining thereto.

     Mortgage Loan Schedule: The lists of the Mortgage Loans attached hereto as Exhibit F
(as amended from time to time to reflect the addition of Qualified Substitute Mortgage Loans),
which lists shall set forth at a minimum the following information as to each Mortgage Loan:

	 	(i)	 	the Mortgage Loan identifying number (“[___] LOAN #”);
	 
	 	(ii)	 	the state, city and zip code of the Mortgaged Property;
	 
	 	(iii)	 	the maturity of the Mortgage Note (“MATURITY DATE,” or “MATURITY DT” for
Mortgage Loans;
	 
	 	(iv)	 	(for the adjustable-rate Mortgage Loans, the Mortgage Rate as of origination
(“ORIG RATE”);
	 
	 	(v)	 	the Mortgage Rate as of the Cut-off Date (“CURR RATE”)
	 
	 	(vi)	 	the Net Mortgage Rate as of the Cut-off Date (“CURR NET”);
	 
	 	(vii)	 	the scheduled monthly payment of principal, if any, and interest as of the
Cut-off Date (“ORIGINAL P & I”);
	 
	 	(viii)	 	the Cut-off Date Principal Balance (“PRINCIPAL BAL”);
	 
	 	(ix)	 	the Loan-to-Value Ratio at origination (“LTV”);
	 
	 	(x)	 	a code “T,” “BT” or “CT” under the column “LN FEATURE,” indicating that the
Mortgage Loan is secured by a second or vacation residence (the absence of any such
code means the Mortgage Loan is secured by a primary residence); and

27

 

	 	(xi)	 	a code “N” under the column “OCCP CODE,” indicating that the Mortgage Loan is
secured by a non-owner occupied residence (the absence of any such code means the
Mortgage Loan is secured by an owner occupied residence).
	 
	 	(xii)	 	for the adjustable-rate Mortgage Loans, the Maximum Mortgage Rate (“NOTE
CEILING”);
	 
	 	(xiii)	 	for the adjustable-rate Mortgage Loans, the maximum Net Mortgage Rate (“NET
CEILING”);
	 
	 	(xiv)	 	for the adjustable-rate Mortgage Loans, the Note Margin (“NOTE MARGIN”);
	 
	 	(xv)	 	for the adjustable-rate Mortgage Loans, the first Adjustment Date after the
Cut-off Date (“NXT INT CHG DT”);
	 
	 	(xvi)	 	for the adjustable-rate Mortgage Loans, the Periodic Cap (“PERIODIC DECR” or
“PERIODIC INCR”);

     Such schedule may consist of multiple reports that collectively set forth all of the
information required.

     Mortgage Note: The originally executed note or other evidence of indebtedness
evidencing the indebtedness of a Mortgagor under a Mortgage Loan, together with any modification
thereto.

     Mortgage Rate: With respect to any Mortgage Loan, the interest rate borne by the
related Mortgage Note, or any modification thereto other than a Servicing Modification. The
Mortgage Rate on the adjustable-rate Mortgage Loans will adjust on each Adjustment Date to equal
the sum (rounded to the nearest multiple of one eighth of one percent (0.125%) or up to the nearest
one-eighth of one percent, which are indicated by a “U” on the Mortgage Loan Schedule, except in
the case of the adjustable-rate Mortgage Loans indicated by an “X” on the Mortgage Loan Schedule
under the heading “NOTE METHOD”), of the related Index plus the Note Margin, in each case subject
to the applicable Periodic Cap, Maximum Mortgage Rate and Minimum Mortgage Rate.

     Mortgaged Property: The underlying real property securing a Mortgage Loan.

     Mortgagor: The obligor on a Mortgage Note.

     Net Mortgage Rate: With respect to any Mortgage Loan as of any date of determination,
a per annum rate equal to the Adjusted Mortgage Rate for such Mortgage Loan as of such date minus
the Servicing Fee Rate.

     Net WAC Cap Rate: With respect to any Distribution Date and the Class A Certificates,
Class M Certificates and Class B Certificates, a per annum rate (which will not be less than zero)
equal to the product of (a) weighted average of the Net Mortgage Rates (or, if applicable, the
Modified Net Mortgage Rates) on the Mortgage Loans using the Net Mortgage Rates or Modified Net
Mortgage Rates in effect for the Monthly Payments due on such Mortgage Loans

28

 

during the related Due
Period, weighted on the basis of the respective Stated Principal Balances thereof for such
Distribution Date and (b) a fraction, the numerator of which is 30 and the denominator of which is
the actual number of days in the related Interest Accrual Period.

     Non-Primary Residence Loans: [The Mortgage Loans designated as secured by second or
vacation residences, or by non-owner occupied residences, on the Mortgage Loan Schedule.]

     Non-United States Person: Any Person other than a United States Person.

     Nonrecoverable Advance: Any Advance or Subservicer Advance previously made or
proposed to be made by the Master Servicer or Subservicer (as applicable) in respect of a Mortgage
Loan (other than a Deleted Mortgage Loan) which, in the good faith judgment of the Master Servicer,
will not, or, in the case of a proposed Advance, would not, be ultimately recoverable by the Master
Servicer from related Late Collections, Insurance Proceeds, Liquidation Proceeds or REO Proceeds.
To the extent that any Mortgagor is not obligated under the related Mortgage documents to pay or
reimburse any portion of any Servicing Advances that are outstanding with respect to the related
Mortgage Loan as a result of a modification of such Mortgage Loan by the Master Servicer, which
forgives amounts which the Master Servicer or Subservicer had previously advanced, and the Master
Servicer determines that no other source of payment or reimbursement for such Advances is available
to it, such Servicing Advances shall be deemed to be Nonrecoverable Advances. The determination by
the Master Servicer that it has made a Nonrecoverable Advance shall be evidenced by an Officers’
Certificate delivered to the Depositor, the Trustee and the Master Servicer. Notwithstanding the
above, the Trustee shall be entitled to rely upon any determination by the Master Servicer that any
Advance previously made is a Nonrecoverable Advance or that any proposed Advance, if made, would
constitute a Nonrecoverable Advance. The determination by the Master Servicer that it has made a
Nonrecoverable Advance or that any proposed Advance, if made, would constitute a Nonrecoverable
Advance, shall be evidenced by a certificate of a Servicing Officer delivered to the Depositor.

     Nonsubserviced Mortgage Loan: Any Mortgage Loan that, at the time of reference
thereto, is not subject to a Subservicing Agreement.

     Note Margin: With respect to each adjustable-rate Mortgage Loan, the fixed percentage
set forth in the related Mortgage Note and indicated on the Mortgage Loan Schedule as the “NOTE
MARGIN,” which percentage is added to the Index on each Adjustment Date to determine (subject to
rounding in accordance with the related Mortgage Note, the Periodic Cap, the Maximum Mortgage Rate
and the Minimum Mortgage Rate) the interest rate to be borne by such adjustable-rate Mortgage Loan
until the next Adjustment Date.

     Notional Amount: With respect to the Class SB Certificates or the REMIC II Regular
Interest SB-IO, immediately prior to any Distribution Date, the aggregate of the Uncertificated
Principal Balances of the REMIC I Regular Interests.

     Officers’ Certificate: A certificate signed by the Chairman of the Board, the
President, a Vice President, Assistant Vice President, Director, Managing Director, the Treasurer,
the

29

 

Secretary, an Assistant Treasurer or an Assistant Secretary of the Depositor or the Master
Servicer, as the case may be, and delivered to the Trustee, as required by this Agreement.

     Opinion of Counsel: A written opinion of counsel acceptable to the Trustee and the
Master Servicer and which counsel may be counsel for the Depositor or the Master Servicer,
provided that any Opinion of Counsel (i) referred to in the definition of “Disqualified
Organization” or (ii) relating to the qualification of any REMIC hereunder as a REMIC or compliance
with the REMIC Provisions must, unless otherwise specified, be an opinion of Independent counsel.

     Optional Termination Date: Any Distribution Date on or after which the Stated
Principal Balance (after giving effect to distributions to be made on such Distribution Date) of
the Mortgage Loans is less than [10.00]% of the Cut-off Date Balance.

     Outstanding Mortgage Loan: With respect to the Due Date in any Due Period, a Mortgage
Loan (including an REO Property) that was not the subject of a Principal Prepayment in Full, Cash
Liquidation or REO Disposition and that was not purchased, deleted or substituted for prior to such
Due Date pursuant to Section 2.02, 2.03, 2.04 or 4.07.

     Overcollateralization Amount: With respect to any Distribution Date, the excess, if
any, of (a) the aggregate Stated Principal Balance of the Mortgage Loans before giving effect to
distributions of principal to be made on such Distribution Date over (b) the aggregate Certificate
Principal Balance of the [Class A, Class M and Class B Certificates] immediately prior to such
date.

     Overcollateralization Floor: With respect to the Mortgage Loans, an amount equal to
the product of (a) [ ]% and (b) the Cut-off Date Balance.

     Overcollateralization Increase Amount: With respect to any Distribution Date, the
lesser of (a) Excess Cash Flow for that Distribution Date (to the extent not used to cover the
amounts described in clauses (iv) and (v) of the definition of Principal Distribution Amount as of
such Distribution Date), and (b) the excess of (1) the Required Overcollateralization Amount for
such Distribution Date over (2) the Overcollateralization Amount for such Distribution Date.

     Overcollateralization Reduction Amount: With respect to any Distribution Date, to the
extent the Excess Overcollateralization Amount is, after taking into account all other
distributions to be made on such Distribution Date, greater than zero, the Overcollateralization
Reduction Amount shall be equal to the lesser of (i) the Excess Overcollateralization Amount for
that Distribution Date and (ii) the Principal Remittance Amount for such Distribution Date.

     Ownership Interest: With respect to any Certificate, any ownership or security
interest in such Certificate, including any interest in such Certificate as the Holder thereof and
any other interest therein, whether direct or indirect, legal or beneficial, as owner or as
pledgee.

     Pass-Through Rate: With respect to each Class of Class A, Class M and Class B
Certificates and any Distribution Date, the least of (i) One-Month LIBOR plus the related Margin,
(ii) the Net WAC Cap Rate and (iii) [ ]% per annum.

30

 

     With respect to the Class SB Certificates or REMIC II Regular Interest SB-IO and any
Distribution Date, a per annum rate equal to the percentage equivalent of a fraction, the numerator
of which is the sum of the amounts calculated pursuant to clauses (i) through (iii) below, and the
denominator of which is the aggregate principal balance of the REMIC I Regular Interests. For
purposes of calculating the Pass-Through Rate for the Class SB Certificates or
REMIC II Regular Interest SB-IO, the numerator is equal to the sum of the following
components:

	 	(i)	 	the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT1
minus the related Marker Rate, applied to a notional amount equal to the Uncertificated
Principal Balance of REMIC I Regular Interest LT1;
	 
	 	(ii)	 	the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT2
minus the related Marker Rate, applied to a notional amount equal to the Uncertificated
Principal Balance of REMIC I Regular Interest LT2; and
	 
	 	(iii)	 	the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT4
minus twice the related Marker Rate, applied to a notional amount equal to the
Uncertificated Principal Balance of REMIC I Regular Interest LT4.

     Paying Agent: [________________] or any successor Paying Agent appointed by the
Trustee.

     Percentage Interest: With respect to any [Class A Certificate, Class M Certificate or
Class B Certificate,] the undivided percentage ownership interest in the related Class evidenced by
such Certificate, which percentage ownership interest shall be equal to the Initial Certificate
Principal Balance thereof divided by the aggregate Initial Certificate Principal Balance of all of
the Certificates of the same Class. The Percentage Interest with respect to a [Class SB Certificate
or Class R Certificate] shall be stated on the face thereof.

     Periodic Cap: With respect to each adjustable-rate Mortgage Loan, the periodic rate
cap that limits the increase or the decrease of the related Mortgage Rate on any Adjustment Date
pursuant to the terms of the related Mortgage Note.

     Permitted Investments: One or more of the following:

	 	(i)	 	obligations of or guaranteed as to principal and interest by the United States
or any agency or instrumentality thereof when such obligations are backed by the full
faith and credit of the United States;
	 
	 	(ii)	 	repurchase agreements on obligations specified in clause (i) maturing not more
than one month from the date of acquisition thereof, provided that the unsecured
obligations of the party agreeing to repurchase such obligations are at the time rated
by each Rating Agency in its highest short-term rating available;
	 
	 	(iii)	 	federal funds, certificates of deposit, demand deposits, time deposits and
bankers’ acceptances (which shall each have an original maturity of not more than 90
days and, in the case of bankers’ acceptances, shall in no event have an original

31

 

	 	 	 	maturity of more than 365 days or a remaining maturity of more than 30 days)
denominated in United States dollars of any U.S. depository institution or trust
company incorporated under the laws of the United States or any state thereof or of any
domestic branch of a foreign depository institution or trust company; provided that the
debt obligations of such depository institution or trust company
at the date of acquisition thereof have been rated by each Rating Agency in its
highest short-term rating available; and, provided further that, if the original
maturity of such short-term obligations of a domestic branch of a foreign depository
institution or trust company shall exceed 30 days, the short-term rating of such
institution shall be A-1+ in the case of Standard & Poor’s if Standard & Poor’s is a
Rating Agency;
	 
	 	(iv)	 	commercial paper and demand notes (having original maturities of not more than
365 days) of any corporation incorporated under the laws of the United States or any
state thereof which on the date of acquisition has been rated by each Rating Agency in
its highest short term rating available; provided that such commercial paper and demand
notes shall have a remaining maturity of not more than 30 days;
	 
	 	(v)	 	a money market fund or a qualified investment fund rated by each Rating Agency
in its highest long-term rating available (which may be managed by the Trustee or one
of its Affiliates); and
	 
	 	(vi)	 	other obligations or securities that are acceptable to each Rating Agency as a
Permitted Investment hereunder and will not reduce the rating assigned to any Class of
Certificates by such Rating Agency below the then-current rating assigned to such
Certificates by such Rating Agency, as evidenced in writing;

provided, however, that no instrument shall be a Permitted Investment if it represents, either (1)
the right to receive only interest payments with respect to the underlying debt instrument or (2)
the right to receive both principal and interest payments derived from obligations underlying such
instrument and the principal and interest payments with respect to such instrument provide a yield
to maturity greater than 120% of the yield to maturity at par of such underlying obligations.
References herein to the highest rating available on unsecured long-term debt shall mean AAA in the
case of Standard & Poor’s, AAA in the case of Fitch, AAA in the case of DBRS and Aaa in the case of
Moody’s, and for purposes of this Agreement, any references herein to the highest rating available
on unsecured commercial paper and short-term debt obligations shall mean the following: A-1 in the
case of Standard & Poor’s and P-1 in the case of Moody’s; provided, however, that any Permitted
Investment that is a short-term debt obligation rated A-1 by Standard & Poor’s must satisfy the
following additional conditions: (i) the total amount of debt from A-1 issuers must be limited to
the investment of monthly principal and interest payments (assuming fully amortizing collateral);
(ii) the total amount of A-1 investments must not represent more than 20% of the aggregate
outstanding Certificate Principal Balance of the Certificates and each investment must not mature
beyond 30 days; (iii) the terms of the debt must have a predetermined fixed dollar amount of
principal due at maturity that cannot vary; and (iv) if the investments may be liquidated prior to
their maturity or are being relied on to meet a certain yield, interest must be tied to a single
interest rate index plus

32

 

a single fixed spread (if any) and must move proportionately with that
index. Any Permitted Investment may be purchased by or through the Trustee or its Affiliates.

     Permitted Transferee: Any Transferee of a Class R Certificate, other than a
Disqualified Organization or Non-United States Person.

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

     P&I Advance: Any advance made by the Master Servicer of a principal or interest
payment with respect to a Mortgage Loan.

     Prepayment Assumption: With respect to the [Class A, Class M, Class B and Class SB]
Certificates, the prepayment assumption to be used for determining the accrual of original issue
discount and premium and market discount on such Certificates for federal income tax purposes,
which (a) with respect to the fixed rate Mortgage Loans, assumes a constant prepayment rate of 4%
per annum of the then outstanding principal balance of the Mortgage Loans in the first month of the
life of the fixed-rate Mortgage Loans, and an additional approximate 1.9091% per annum in each
month thereafter until the twelfth month, and then beginning in the twelfth month and in each month
thereafter during the life of the fixed-rate Mortgage Loans, a constant prepayment rate of 25.0%
per annum each month and (b) with respect to the adjustable-rate Mortgage Loans, assumes a constant
prepayment rate of 4% per annum of the then outstanding principal balance of the adjustable-rate
Mortgage Loans in the first month of the life of the adjustable-rate Mortgage Loans, and an
additional approximate 2.8182% per annum in each month thereafter until the twelfth month, and then
beginning in the twelfth month and in each month thereafter during the life of the adjustable-rate
Mortgage Loans, a constant prepayment rate of 35% per annum each month.

     Prepayment Interest Shortfall: With respect to any Distribution Date and any Mortgage
Loan (other than a Mortgage Loan relating to an REO Property) that was the subject of (a) a
Principal Prepayment in Full during the related Prepayment Period, an amount equal to the excess of
one month’s interest at the related Net Mortgage Rate (or Modified Net Mortgage Rate in the case of
a Modified Mortgage Loan) on the Stated Principal Balance of such Mortgage Loan over the amount of
interest (adjusted to the related Net Mortgage Rate (or Modified Net Mortgage Rate in the case of a
Modified Mortgage Loan)) paid by the Mortgagor for such Prepayment Period to the date of such
Principal Prepayment in Full or (b) a Curtailment during the prior calendar month, an amount equal
to one month’s interest at the related Net Mortgage Rate (or Modified Net Mortgage Rate in the case
of a Modified Mortgage Loan) on the amount of such Curtailment.

     Prepayment Period: With respect to any Distribution Date, the calendar month
preceding the month of distribution.

     Primary Insurance Policy: With respect to any Mortgage Loan, each primary policy of
mortgage guaranty insurance or replacement policy therefor. Each Mortgage Loan with a

33

 

 Primary
Insurance Policy is identified on Exhibit F with the exception of either code “23” or “96” under
the column “MI CO CODE.”

     Principal Distribution Amount: With respect to any Distribution Date, the lesser of
(a) the excess of (x) the sum of the Available Distribution Amount over (y) the Interest
Distribution Amount and (b) the sum of:

	 	(i)	 	the principal portion of each Monthly Payment received or advanced with respect
to the related Due Period on each Outstanding Mortgage Loan;
	 
	 	(ii)	 	the Stated Principal Balance of any Mortgage Loan repurchased during the
related Prepayment Period (or deemed to have been so repurchased in accordance with
Section 3.07(b)) pursuant to Section 2.02, 2.03, 2.04 or 4.07 and the amount of any
shortfall deposited in the Custodial Account in connection with the substitution of a
Deleted Mortgage Loan pursuant to Section 2.03 or 2.04 during the related Prepayment
Period;
	 
	 	(iii)	 	the principal portion of all other unscheduled collections, other than
Subsequent Recoveries, on the Mortgage Loans (including, without limitation, Principal
Prepayments in Full, Curtailments, Insurance Proceeds, Liquidation Proceeds and REO
Proceeds) received during the related Prepayment Period (or deemed to have been so
received) to the extent applied by the Master Servicer as recoveries of principal of
the Mortgage Loans pursuant to Section 3.14;
	 
	 	(iv)	 	the lesser of (1) Subsequent Recoveries for such Distribution Date and (2) the
principal portion of any Realized Losses allocated to any Class of Certificates on a
prior Distribution Date and remaining unpaid;
	 
	 	(v)	 	the lesser of (1) the Excess Cash Flow for such Distribution Date (to the
extent not used pursuant to clause (iv) of this definition on such Distribution Date)
and (2) the principal portion of any Realized Losses incurred (or deemed to have been
incurred) on any Mortgage Loans in the calendar month preceding such Distribution Date;
and
	 
	 	(vi)	 	the lesser of (1) the Excess Cash Flow for that Distribution Date (to the
extent not used pursuant to clauses (iv) and (v) of this definition on such
Distribution Date) and (2) the Overcollateralization Increase Amount for such
Distribution Date;

     minus

	 	(vii)	 	(A) the amount of any Overcollateralization Reduction Amount for such
Distribution Date and (B) the amount of any Capitalization Reimbursement Amount for
such Distribution Date.

     Principal Prepayment: Any payment of principal or other recovery on a Mortgage Loan,
including a recovery that takes the form of Liquidation Proceeds or Insurance Proceeds, which is
received in advance of its scheduled Due Date and is not accompanied by an amount as to

34

 

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

Primary Insurance Policy is identified on Exhibit F with the exception of either code “23” or “96” under the column “MI CO CODE.”

     Principal Prepayment in Full: Any Principal Prepayment made by a Mortgagor of the
entire principal balance of a Mortgage Loan.

     Principal Remittance Amount: With respect to any Distribution Date, all amounts
described in clauses (b)(i) through (iii) of the definition of Principal Distribution Amount for
that Distribution Date.

     Program Guide: The GMAC Bank Correspondent Funding Client Guide, as in effect from
time to time.

     Purchase Price: With respect to any Mortgage Loan (or REO Property) required to be or
otherwise purchased on any date pursuant to Section 2.02, 2.03, 2.04 or 4.07, an amount equal to
the sum of (i) if such Mortgage Loan (or REO Property) is being purchased pursuant to Sections
2.02, 2.03, 2.04 or 4.07 of this Agreement, 100% of the Stated Principal Balance thereof plus the
principal portion of any related unreimbursed P&I Advances and (ii) unpaid accrued interest at the
Adjusted Mortgage Rate (or Modified Net Mortgage Rate plus the rate per annum at which the
Servicing Fee is calculated in the case of a Modified Mortgage Loan) (or at the Net Mortgage Rate
(or Modified Net Mortgage Rate in the case of a Modified Mortgage Loan)) on the Stated Principal
Balance thereof to the first day of the month following the month of purchase from the Due Date to
which interest was last paid by the Mortgagor.

     Qualified Substitute Mortgage Loan: A Mortgage Loan substituted by
[_________________] or the Depositor for a Deleted Mortgage Loan which must, on the date of such
substitution, as confirmed in an Officers’ Certificate delivered to the Trustee,

	 	(i)	 	have an outstanding principal balance, after deduction of the principal portion
of the monthly payment due in the month of substitution (or in the case of a
substitution of more than one Mortgage Loan for a Deleted Mortgage Loan, an aggregate
outstanding principal balance, after such deduction), not in excess of the Stated
Principal Balance of the Deleted Mortgage Loan (the amount of any shortfall to be
deposited by [_________________], in the Custodial Account in the month of
substitution);
	 
	 	(ii)	 	have a Mortgage Rate and a Net Mortgage Rate no lower than and not more than 1%
per annum higher than the Mortgage Rate and Net Mortgage Rate, respectively, of the
Deleted Mortgage Loan as of the date of substitution;
	 
	 	(iii)	 	have a Loan-to-Value Ratio at the time of substitution no higher than that of
the Deleted Mortgage Loan at the time of substitution;
	 
	 	(iv)	 	have a Note Margin not less than that of the Deleted Mortgage Loan;
	 
	 	(v)	 	have a Periodic Rate Cap that is equal to that of the Deleted Mortgage Loan;
	 
	 	(vi)	 	have a next Adjustment Date no later than that of the Deleted Mortgage Loan;

35

 

	 	(vii)	 	have a remaining term to stated maturity not greater than (and not more than
one year less than) that of the Deleted Mortgage Loan; and
	 
	 	(viii)	 	comply with each representation and warranty set forth in Sections 2.03 and 2.04
hereof and Section 4 of the Assignment Agreement.

     Rating Agency: [Each of Fitch, Standard & Poor’s, Moody’s and DBRS.] If any agency or
a successor is no longer in existence, “Rating Agency” shall be such statistical credit rating
agency, or other comparable Person, designated by the Depositor, notice of which designation shall
be given to the Trustee and the Master Servicer.

     Realized Loss: With respect to each Mortgage Loan (or REO Property) as to which a
Cash Liquidation or REO Disposition has occurred, an amount (not less than zero) equal to (i) the
Stated Principal Balance of the Mortgage Loan (or REO Property) as of the date of Cash Liquidation
or REO Disposition, plus (ii) interest (and REO Imputed Interest, if any) at the Net Mortgage Rate
from the Due Date as to which interest was last paid or advanced to Certificateholders up to the
last day of the month in which the Cash Liquidation (or REO Disposition) occurred on the Stated
Principal Balance of such Mortgage Loan (or REO Property) outstanding during each Due Period that
such interest was not paid or advanced, minus (iii) the proceeds, if any, received during the month
in which such Cash Liquidation (or REO Disposition) occurred, to the extent applied as recoveries
of interest at the Net Mortgage Rate and to principal of the Mortgage Loan, net of the portion
thereof reimbursable to the Master Servicer or any Subservicer with respect to related Advances,
Subservicer Advances or other expenses as to which the Master Servicer or Subservicer is entitled
to reimbursement thereunder but which have not been previously reimbursed. With respect to each
Mortgage Loan which is the subject of a Servicing Modification, (a) (1) the amount by which the
interest portion of a Monthly Payment or the principal balance of such Mortgage Loan was reduced or
(2) the sum of any other amounts owing under the Mortgage Loan that were forgiven and that
constitute Servicing Advances that are reimbursable to the Master Servicer or a Subservicer, and
(b) any such amount with respect to a Monthly Payment that was or would have been due in the month
immediately following the month in which a Principal Prepayment or the Purchase Price of such
Mortgage Loan is received or is deemed to have been received. With respect to each Mortgage Loan
which has become the subject of a Deficient Valuation, the difference between the principal balance
of the Mortgage Loan outstanding immediately prior to such Deficient Valuation and the principal
balance of the Mortgage Loan as reduced by the Deficient Valuation. With respect to each Mortgage
Loan which has become the object of a Debt Service Reduction, the amount of such Debt Service
Reduction.

     Notwithstanding the above, neither a Deficient Valuation nor a Debt Service Reduction shall be
deemed a Realized Loss hereunder so long as the Master Servicer has notified the Trustee in writing
that the Master Servicer is diligently pursuing any remedies that may exist in connection with the
representations and warranties made regarding the related Mortgage Loan and either (A) the related
Mortgage Loan is not in default with regard to payments due thereunder or (B) delinquent payments
of principal and interest under the related Mortgage Loan and any premiums on any applicable
primary hazard insurance policy and any related escrow payments in respect of such Mortgage Loan
are being advanced on a current basis by the Master Servicer or a Subservicer, in either case
without giving effect to any Debt Service Reduction.

36

 

     Realized Losses allocated to the Class SB Certificates shall be allocated first to the REMIC
II Regular Interest SB-IO in reduction of the accrued but unpaid interest thereon until such
accrued and unpaid interest shall have been reduced to zero and then to the REMIC II Regular
Interest SB-PO in reduction of the Principal Balance thereof.

     To the extent the Master Servicer receives Subsequent Recoveries with respect to any Mortgage
Loan, the amount of the Realized Loss with respect to that Mortgage Loan will be reduced to the
extent such recoveries are applied to reduce the Certificate Principal Balance of any Class of
Certificates on any Distribution Date.

     Record Date: With respect to [the Class A Certificates, Class M Certificates and
Class B Certificates] and each Distribution Date, the close of business on the Business Day
immediately preceding such Distribution Date. With respect to [the Class SB and Class R
Certificates,] and each Distribution Date, the close of business on the last Business Day of the
month next preceding the month in which the related Distribution Date occurs or, with respect to
the first Distribution Date, the Closing Date.

     Reference Bank Rate: As defined in Section 1.02.

     Regular Certificates: The Class A Certificates, Class M Certificates, Class B
Certificates and Class SB Certificates.

     Regular Interest: Any one of the REMIC regular interests in the Trust Fund.

     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 (January 7, 2005)) or by
the staff of the Commission, or as may be provided by the Commission or its staff from time to
time.

     Relief Act: The Servicemembers Civil Relief Act, formerly known as the Soldiers’ and
Sailors’ Civil Relief Act of 1940.

     Relief Act Shortfalls: Interest shortfalls on the Mortgage Loans resulting from the
Relief Act or similar legislation or regulations.

     REMIC: A “real estate mortgage investment conduit” within the meaning of Section 860D
of the Code. As used herein, the term “REMIC” shall mean REMIC I or REMIC II.

     REMIC Administrator: [__________________________]. If [__________________________] is
found by a court of competent jurisdiction to no longer be able to fulfill its obligations as REMIC
Administrator under this Agreement the Master Servicer or Trustee acting as successor Master
Servicer shall appoint a successor REMIC Administrator, subject to assumption of the REMIC
Administrator obligations under this Agreement.

37

 

     REMIC I: The segregated pool of assets subject hereto, constituting a portion of the
primary trust created hereby and to be administered hereunder, with respect to which a separate
REMIC election is to be made, consisting of: (i) the Mortgage Loans and the related Mortgage
Files; (ii) all payments on and collections in respect of the Mortgage Loans due after the Cut-off
Date (other than Monthly Payments due in the month of the Cut-off Date) as shall be on deposit in
the Custodial Account or in the Certificate Account and identified as belonging to the Trust Fund;
(iii) property which secured a Mortgage Loan and which has been acquired for the benefit
of the Certificateholders by foreclosure or deed in lieu of foreclosure; (iv) the hazard
insurance policies and Primary Insurance Policies pertaining to the Mortgage Loans, if any; and (v)
all proceeds of clauses (i) through (iv) above.

     REMIC I Distribution Amount: For any Distribution Date, the Available Distribution
Amount shall be distributed to the REMIC I Regular Interests and the Class R-I Certificates in the
following amounts and priority:

     (a) to the extent of the Available Distribution Amount, to REMIC II as the holder of REMIC I
Regular Interests LT1, LT2, LT3 and LT4, pro rata, in an amount equal to (A) their Uncertificated
Accrued Interest for such Distribution Date, plus (B) any amounts in respect thereof remaining
unpaid from previous Distribution Dates; and

     (b) to the extent of the Available Distribution Amount remaining after the distributions made
pursuant to clause (a) above, to REMIC II as the holder of the REMIC I Regular Interests, in an
amount equal to (A) in respect of the REMIC I Regular Interests LT2, LT3 and LT4, their respective
Principal Distribution Amounts; (B) in respect of the REMIC I Regular Interest LT1 any remainder
until the Uncertificated Principal Balance thereof is reduced to zero and (C) in any remainder in
respect of the REMIC I Regular Interests LT2, LT3 and LT4, pro rata according to their respective
Uncertificated Principal Balances as reduced by the distributions deemed made pursuant to (A)
above, until their respective Uncertificated Principal Balances are reduced to zero; and

     (c) any remaining amounts to the Holders of the Class R-I Certificates.

     REMIC I Principal Reduction Amounts: For any Distribution Date, the amounts by which
the principal balances of the REMIC I Regular Interests LT1, LT2, LT3 and LT4, respectively will be
reduced on such Distribution Date by the allocation of Realized Losses and the distribution of
principal, determined as follows:

     For purposes of the succeeding formulas the following symbols shall have the meanings set
forth below:

	 	Y1 =	 	 the principal balance of the REMIC I Regular Interest LT1 after distributions
on the prior Distribution Date.
	 
	 	Y2 =	 	 the principal balance of the REMIC I Regular Interest LT2 after distributions
on the prior Distribution Date.
	 
	 	Y3 =	 	 the principal balance of the REMIC I Regular Interest LT3 after distributions
on the prior Distribution Date.

38

 

	 	Y4 =	 	 the principal balance of the REMIC I Regular Interest LT4 after distributions
on the prior Distribution Date (note: Y3 = Y4).
	 
	 	ΔY1 =	 	 the REMIC I Regular Interest LT1
Principal Reduction Amount.
	 
	 	ΔY2 = 	 	 the REMIC I Regular Interest LT2
Principal Reduction Amount.
	 
	 	ΔY3 =	 	  the REMIC I Regular Interest LT3
Principal Reduction Amount.
	 
	 	ΔY4 = 	 	 the REMIC I Regular Interest LT4
Principal Reduction Amount.
	 
	 	P0 = 	 	 the aggregate principal balance of REMIC I Regular Interests LT1, LT2, LT3 and LT4 after distributions and the allocation
of Realized Losses on the prior Distribution Date.
	 
	 	P1 =	 	 the aggregate principal balance of the REMIC I Regular Interest LT1, LT2, LT3 and LT4 after distributions and the
allocation of Realized Losses to be made on such Distribution Date.
	 
	 	 ΔP =	 	 P0 — P1 = the aggregate of the REMIC I Regular Interest LT1, LT2, LT3 and LT4 Principal Reduction
Amounts.
	 
	 	=	 	the aggregate of the principal portions of Realized Losses to be allocated to, and the principal distributions to be made
on, the Certificates on such Distribution Date (including distributions of accrued and unpaid interest on the Class SB
Certificates for prior Distribution Dates).
	 
	 	 R0 = 	 	 the Net WAC Cap Rate (stated as a monthly rate) after giving effect to amounts distributed and Realized Losses allocated
on the prior Distribution Date.
	 
	 	R1 = 	 	 the Net WAC Cap Rate (stated as a monthly rate) after giving effect to amounts to be distributed and Realized Losses to be
allocated on such Distribution Date.
	 
	 	a = 	 	 (Y2 + Y3)/P0. The initial value of a on the Closing Date for use on the first
Distribution Date shall be 0.0001.
	 
	 	g0 =	 	 the lesser of (A) the sum for all Classes of Certificates other than the Class SB Certificates of the product for each
Class of (i) the monthly interest rate (as limited by the Net WAC Cap Rate, if applicable) for such Class applicable for
distributions to be made on such Distribution Date

39

 

	 	 	 	and (ii) the aggregate Certificate Principal Balance for such Class
after distributions and the allocation of Realized Losses on the prior Distribution Date and (B)
R0*P0.
	 
	 	g1 =	 	the lesser of (A) the sum for all Classes of Certificates other than the Class SB Certificates of the product for each
Class of (i) the monthly interest rate (as limited by the Net WAC Cap Rate, if applicable) for such Class applicable for
distributions to be made on the next succeeding Distribution Date and (ii) the aggregate Certificate Principal Balance for
such Class after distributions and the allocation of Realized Losses to be made on such Distribution Date and (B)
R1*P1.

     Then, based on the foregoing definitions:

     ΔY1
= ΔP -
ΔY2
- ΔY3 - ΔY4;

     ΔY2 = (aΔ2){( g0R1 - g1
R0)/R0R1};

     ΔY3
= aΔP - ΔY2; and

     ΔY4 = ΔY3.

if both ΔY2 and ΔY3, as so determined, are non-negative numbers. Otherwise:

     (1) If ΔY2, as so determined, is negative, then

     ΔY2 = 0;

     ΔY3 = a{g1R0P0 - g0R1P1} g1R0};

     ΔY4 = ΔY3; and

     ΔY1
= ΔP -
ΔY2 - ΔY3 - ΔY4.

     (2) If ΔY3, as so determined, is negative, then

     ΔY3 = 0;

     ΔY2
=
a{g1R0P0
 - g0R1P1}/{2R1R0P1 -
g1R0};

     ΔY4 = ΔY3; and

     ΔY1
= ΔP -
ΔY2 - ΔY3 - ΔY4.

     REMIC I Realized Losses: Realized Losses on the Mortgage Loans shall be allocated to
the REMIC I Regular Interests as follows: The interest portion of Realized Losses on the

40

 

Mortgage
Loans, if any, shall be allocated among the REMIC I Regular Interests LT1, LT2 and LT4 pro rata
according to the amount of interest accrued but unpaid thereon, in reduction thereof. Any interest
portion of such Realized Losses in excess of the amount allocated pursuant to the preceding
sentence shall be treated as a principal portion of Realized Losses not attributable to any
specific Mortgage Loan and allocated pursuant to the succeeding sentences. The principal portion of
Realized Losses on the Mortgage Loans, if any, shall be allocated first, to the REMIC I Regular
Interests LT2, LT3 and LT4 pro rata according to their respective Principal Reduction Amounts to
the extent thereof in reduction of the Uncertificated Principal Balance of such REMIC I Regular
Interests and, second, the remainder, if any, of such principal portion of such Realized Losses
shall be allocated to the REMIC I Regular Interest LT1 in reduction of the Uncertificated Principal
Balance thereof.

     REMIC I Regular Interests: REMIC I Regular Interest LT1, REMIC II Regular Interest
LT2, REMIC II Regular Interest LT3 and REMIC II Regular Interest LT4.

     REMIC I Regular Interest LT1: A regular interest in REMIC I that is held as an asset
of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal
Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has
such other terms as are described herein.

     REMIC I Regular Interest LT1 Principal Distribution Amount: For any Distribution Date,
the excess, if any, of the REMIC I Regular Interest LT1 Principal Reduction Amount for such
Distribution Date over the Realized Losses allocated to the REMIC I Regular Interest LT1 on such
Distribution Date.

     REMIC I Regular Interest LT2: A regular interest in REMIC I that is held as an asset
of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal
Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has
such other terms as are described herein.

     REMIC I Regular Interest LT2 Principal Distribution Amount: For any Distribution Date,
the excess, if any, of the REMIC I Regular Interest LT2 Principal Reduction Amount for such
Distribution Date over the Realized Losses allocated to the REMIC I Regular Interest LT2 on such
Distribution Date.

     REMIC I Regular Interest LT3: A regular interest in REMIC II that is held as an asset
of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal
Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has
such other terms as are described herein.

     REMIC I Regular Interest LT3 Principal Distribution Amount: For any Distribution Date,
the excess, if any, of the REMIC I Regular Interest LT3 Principal Reduction Amount for such
Distribution Date over the Realized Losses allocated to the REMIC I Regular Interest LT3 on such
Distribution Date.

     REMIC I Regular Interest LT4: A regular interest in REMIC II that is held as an asset
of REMIC II, that has an initial principal
balance equal to the related Uncertificated Principal

41

 

Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has
such other terms as are described herein.

     REMIC I Regular Interest LT4 Principal Distribution Amount: For any Distribution Date,
the excess, if any, of the REMIC I Regular Interest LT4 Principal Reduction Amount for such
Distribution Date over the Realized Losses allocated to the REMIC I Regular Interest LT4 on such
Distribution Date.

     REMIC II: The segregated pool of assets subject hereto, constituting a portion of the
primary trust created hereby and to be administered hereunder, with respect to which a separate
REMIC election is to be made, consisting of the REMIC I Regular Interests.

     REMIC II Regular Interest SB-PO: A separate non-certificated beneficial ownership
interest in REMIC II issued hereunder and designated as a REMIC II Regular Interest. REMIC II
Regular Interest SB-PO shall have no entitlement to interest, and shall be entitled to
distributions of principal subject to the terms and conditions hereof, in aggregate amount equal to
the initial Certificate Principal Balance of the Class SB Certificates as set forth in the
Preliminary Statement hereto.

     REMIC II Regular Interest SB-IO: A separate non-certificated beneficial ownership
interest in REMIC II issued hereunder and designated as a REMIC II Regular Interest. REMIC II
Regular Interest SB-IO shall have no entitlement to principal, and shall be entitled to
distributions of interest subject to the terms and conditions hereof, in aggregate amount equal to
the interest distributable with respect to the Class SB Certificates pursuant to the terms and
conditions hereof.

     REMIC II Regular Interests: REMIC II Regular Interests SB-IO and SB-PO, together with
the regular interests in REMIC II represented by the Class A Certificates and Class M Certificates
exclusive of the rights of such Certificates to payments of Basis Risk Shortfall Carry-Forward
Amounts.

     REMIC Administrator: [__________________________]. If [__________________________]
is found by a court of competent jurisdiction to no longer be able to fulfill its obligations as
REMIC Administrator under this Agreement, the Master Servicer or Trustee acting as successor Master
Servicer shall appoint a successor REMIC Administrator, subject to assumption of the REMIC
Administrator obligations under this Agreement.

     REMIC Provisions: Provisions of the federal income tax law relating to real estate
mortgage investment conduits, which appear at Sections 860A through 860G of Subchapter M of Chapter
1 of the Code, and related provisions, and temporary and final regulations (or, to the extent not
inconsistent with such temporary or final regulations, proposed regulations) and published rulings,
notices and announcements promulgated thereunder, as the foregoing may be in effect from time to
time.

     REO Acquisition: The acquisition by the Master Servicer on behalf of the Trustee for
the benefit of the Certificateholders of any REO Property pursuant to Section 3.14.

42

 

     REO Disposition: With respect to any REO Property, a determination by the Master
Servicer that it has received substantially all Insurance Proceeds, Liquidation Proceeds, REO
Proceeds and other payments and recoveries (including proceeds of a final sale) which the Master
Servicer expects to be finally recoverable from the sale or other disposition of the REO Property.

     REO Imputed Interest: With respect to any REO Property, for any period, an amount
equivalent to interest (at a rate equal to the Net Mortgage Rate that would have been applicable to
the related Mortgage Loan had it been outstanding) on the unpaid principal balance of the Mortgage
Loan as of the date of acquisition thereof for such period.

     REO Proceeds: Proceeds, net of expenses, received in respect of any REO Property
(including, without limitation, proceeds from the rental of the related Mortgaged Property) which
proceeds are required to be deposited into the Custodial Account only upon the related REO
Disposition.

     REO Property: A Mortgaged Property acquired by the Master Servicer on behalf of the
Trust Fund for the benefit of the Certificateholders through foreclosure or deed in lieu of
foreclosure in connection with a defaulted Mortgage Loan.

     Reportable Modified Mortgage Loan: Any Mortgage Loan that (i) has been subject to an
interest rate reduction, (ii) has been subject to a term extension or (iii) has had amounts owing
on such Mortgage Loan capitalized by adding such amount to the Stated Principal Balance of such
Mortgage Loan; provided, however, that a Mortgage Loan modified in accordance with clause
(i) above for a temporary period shall not be a Reportable Modified Mortgage Loan if such Mortgage
Loan has not been delinquent in payments of principal and interest for six months since the date of
such modification if that interest rate reduction is not made permanent thereafter.

     Repurchase Event: As defined in the Assignment Agreement.

     Request for Release: A request for release, the form of which is attached as Exhibit
G hereto, or an electronic request in a form acceptable to the Custodian.

     Required Insurance Policy: With respect to any Mortgage Loan, any insurance policy
which is required to be maintained from time to time under this Agreement, the Program Guide or the
related Subservicing Agreement in respect of such Mortgage Loan.

     [Required Overcollateralization Amount: With respect to any Distribution Date, (a)
prior to the Stepdown Date, an amount equal to [__]% of the aggregate Stated Principal Balance of
the Mortgage Loans as of the Cut-off Date, (b) on or after the Stepdown Date if a Trigger Event is
not in effect, the greater of (i) an amount equal to [__]% of the aggregate outstanding Stated
Principal Balance of the Mortgage Loans after giving effect to distributions made on that
Distribution Date and (ii) the Overcollateralization Floor or (c) on or after the Stepdown Date if
a Trigger Event is in effect, an amount equal to the Required Overcollateralization Amount from the
immediately preceding Distribution Date. The Required Overcollateralization Amount may be reduced
so long as written confirmation is obtained from each Rating Agency that such reduction shall not
reduce the ratings assigned to any Class of Certificates by such Rating

43

 

Agency below the lower of
the then-current rating or the rating assigned to such Certificates as of the Closing Date by such
Rating Agency.]

     Responsible Officer: When used with respect to the Trustee, any officer of the
Corporate Trust Department of the Trustee, including any Senior Vice President, any Vice President,
any Assistant Vice President, any Assistant Secretary, any Trust Officer or Assistant Trust
Officer, or any other officer of the Trustee with direct responsibility for the administration of
this Agreement.

     Restricted Class A Certificate: As defined in Section 5.02(e).

     Rule 144A: Rule 144A under the Securities Act of 1933, as in effect from time to
time.

     Rule 17g-5: As defined in Section 11.10.

     Rule 17g-5 Website: As defined in Section 11.10.

     Securitization Transaction: Any transaction involving a sale or other transfer of
mortgage loans directly or indirectly to an issuing in connection with an issuance of publicly
offered or privately placed, rated or unrated mortgage-backed securities.

     Seller: With respect to any Mortgage Loan, a Person, including any Subservicer, that
executed a Seller’s Agreement applicable to such Mortgage Loan.

     Seller’s Agreement: An agreement for the origination and sale of Mortgage Loans
generally in the form of the seller contract referred to or contained in the Program Guide, or in
such other form as has been approved by the Master Servicer and the Depositor.

     Senior Enhancement Percentage: [For any Distribution Date, the fraction, expressed as
a percentage, the numerator of which is the sum of (i) the aggregate Certificate Principal Balance
of the [Class M Certificates and Class B Certificates] and (ii) the Overcollateralization Amount,
in each case prior to the distribution of the Principal Distribution Amount on such Distribution
Date and the denominator of which is the aggregate Stated Principal Balance of the Mortgage Loans
after giving effect to distributions to be made on that Distribution Date.]

     Servicing Accounts: The account or accounts created and maintained pursuant to
Section 3.08.

     Servicing Advances: All customary, reasonable and necessary “out of pocket” costs and
expenses incurred in connection with a default, delinquency or other unanticipated event by the
Master Servicer or a Subservicer in the performance of its servicing obligations, including, but
not limited to, the cost of (i) the preservation, restoration and protection of a Mortgaged
Property or, with respect to a cooperative loan, the related cooperative apartment, (ii) any
enforcement or judicial proceedings, including foreclosures, including any expenses incurred in
relation to any such proceedings that result from the Mortgage Loan being registered on the MERS®
System, (iii) the management and liquidation of any REO Property, (iv) any mitigation procedures
implemented in accordance with Section 3.07, and (v) compliance with the obligations under Sections
3.01, 3.08, 3.12(a) and 3.14, including, if the Master Servicer or any Affiliate of the

44

 

Master
Servicer provides services such as appraisals and brokerage services that are customarily provided
by Persons other than servicers of mortgage loans, reasonable compensation for such services.

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

     Servicing Fee: With respect to any Mortgage Loan and Distribution Date, the fee
payable monthly to the Master Servicer in respect of master servicing compensation that accrues at
an annual rate equal to the Servicing Fee Rate multiplied by the Stated Principal Balance of such
Mortgage Loan as of the related Due Date in the related Due Period, as may be adjusted pursuant to
Section 3.16(e).

     Servicing Fee Rate: With respect to any Mortgage Loan, the per annum rate designated
on the Mortgage Loan Schedule as the “MSTR SERV FEE,” as may be adjusted with respect to successor
Master Servicers as provided in Section 7.02, which rate shall never be greater than the Mortgage
Rate of such Mortgage Loan.

     Servicing Modification: Any reduction of the interest rate on or the outstanding
principal balance of a Mortgage Loan, any extension of the final maturity date of a Mortgage Loan,
and any increase to the Stated Principal Balance of a Mortgage Loan by adding to the Stated
Principal Balance unpaid principal and interest and other amounts owing under the Mortgage Loan, in
each case pursuant to a modification of a Mortgage Loan that is in default or, in the judgment of
the Master Servicer, default is reasonably foreseeable in accordance with Section 3.07(a).

     Servicing Officer: Any officer of the Master Servicer involved in, or responsible
for, the administration and servicing of the Mortgage Loans whose name and specimen signature
appear on a list of servicing officers furnished to the Trustee by the Master Servicer on the
Closing Date, as such list may from time to time be amended.

     [Sixty][Ninety]-Plus Delinquency Percentage: With respect to any Distribution Date on
or after the Stepdown Date, the arithmetic average, for each of the three Distribution Dates ending
with such Distribution Date, of the fraction, expressed as a percentage, equal to (x) the sum of
(i) the aggregate Stated Principal Balance of the Mortgage Loans that are [60][90] or more days
delinquent in payment of principal and interest for that Distribution Date, including Mortgage
Loans in foreclosure and REO, (ii) the aggregate Stated Principal Balance of the
Mortgage Loans (to the extent not included in clause (i) above) that have been modified within
180 days of such Distribution Date and (iii) the aggregate Stated Principal Balance of the any
additional modified Mortgage Loans that are required to be included at the direction of a Rating
Agency from time to time as may be necessary for the Master Servicer to receive from each Rating
Agency a written confirmation that the related modification will not reduce the rating assigned to
any Class of Certificates by such Rating Agency below the lower of the then-current rating or the
rating assigned to such Certificates as of the Closing Date by such Rating Agency over (y) the
aggregate Stated Principal Balance of all of the Mortgage Loans immediately preceding that
Distribution Date.

45

 

     Standard & Poor’s: Standard & Poor’s Ratings Services, a Division of The McGraw-Hill
Companies, Inc. or its successors in interest.

     Startup Date: The day designated as such pursuant to Article X hereof.

     Stated Principal Balance: With respect to any Mortgage Loan or related REO Property,
as of any date of determination, (i) the sum of (a) the Cut-off Date Principal Balance of the
Mortgage Loan and (b) any amount by which the Stated Principal Balance of the Mortgage Loan has
been increased pursuant to a Servicing Modification, minus (ii) the sum of (a) the principal
portion of the Monthly Payments due with respect to such Mortgage Loan or REO Property during each
Due Period ending with the Due Period relating to the most recent Distribution Date which were
received or with respect to which a P&I Advance was made, (b) all Principal Prepayments with
respect to such Mortgage Loan or REO Property, and all Insurance Proceeds, Liquidation Proceeds and
REO Proceeds, to the extent applied by the Master Servicer as recoveries of principal in accordance
with Section 3.14 with respect to such Mortgage Loan or REO Property, in each case which were
distributed pursuant to Section 4.02 on any previous Distribution Date, and (c) any Realized Loss
incurred with respect to such Mortgage Loan allocated to Certificateholders with respect thereto
for any previous Distribution Date.

     Stepdown Date: [That Distribution Date which is the later to occur of (i) the
Distribution Date in [_______] 20[_] and (ii) the first Distribution Date on which the Senior
Enhancement Percentage is equal to or greater than [__]%.

     Subordination: The provisions described in Section 4.05 relating to the allocation of
Realized Losses other than on a pro rata basis.

     Subordination Percentage: With respect to any Class of [Class A Certificates, Class M
Certificates or Class B Certificates], the respective percentage set forth below.

	 	 	 	 	 	 	 
	Class	 	Percentage	 	Class	 	Percentage
	[__]

	 	[__]%
	 	[__]
	 	[__]%

     Subsequent Recoveries: As of any Distribution Date, amounts received by the Master
Servicer (net of any related expenses permitted to be reimbursed pursuant to Section 3.10) or
surplus amounts held by the Master Servicer to cover estimated expenses (including, but not limited
to, recoveries in respect of the representations and warranties made by the related Seller pursuant
to the applicable Seller’s Agreement and assigned to the Trustee pursuant to Section
2.04) specifically related to a Mortgage Loan that was the subject of a Cash Liquidation or an
REO Disposition prior to the related Prepayment Period and that resulted in a Realized Loss.

     Subserviced Mortgage Loan: Any Mortgage Loan that, at the time of reference thereto,
is subject to a Subservicing Agreement.

     Subservicer: Any Person with whom the Master Servicer has entered into a Subservicing
Agreement and who generally satisfied the requirements set forth in the Program Guide in

46

 

respect of
the qualification of a Subservicer as of the date of its approval as a Subservicer by the Master
Servicer.

     Subservicer Advance: Any delinquent installment of principal and interest on a
Mortgage Loan which is advanced by the related Subservicer (net of its Subservicing Fee) pursuant
to the Subservicing Agreement.

     Subservicing Account: An account established by a Subservicer in accordance with
Section 3.08.

     Subservicing Agreement: The written contract between the Master Servicer and any
Subservicer relating to servicing and administration of certain Mortgage Loans as provided in
Section 3.02, generally in the form of the servicer contract referred to or contained in the
Program Guide or in such other form as has been approved by the Master Servicer and the Depositor.

     Subservicing Fee: With respect to any Mortgage Loan, the fee payable monthly to the
related Subservicer (or, in the case of a Nonsubserviced Mortgage Loan, to the Master Servicer) in
respect of subservicing and other compensation that accrues with respect to each Distribution Date
at an annual rate designated as “SUBSERV FEE” on the Mortgage Loan Schedule.

     Tax Returns: The federal income tax return on Internal Revenue Service Form 1066,
U.S. Real Estate Mortgage Investment Conduit Income Tax Return, including Schedule Q thereto,
Quarterly Notice to Residual Interest Holders of REMIC Taxable Income or Net Loss Allocation, or
any successor forms, to be filed on behalf of any REMIC hereunder due to its classification as a
REMIC under the REMIC Provisions, together with any and all other information, reports or returns
that may be required to be furnished to the Certificateholders or filed with the Internal Revenue
Service or any other governmental taxing authority under any applicable provisions of federal,
state or local tax laws.

     Telerate Screen Page 3750: As defined in Section 1.02.

     Transaction Party: As defined in Section 12.02(a).

     Transfer: Any direct or indirect transfer, sale, pledge, hypothecation or other form
of assignment of any Ownership Interest in a Certificate.

     Transfer Affidavit and Agreement: As defined in Section 5.02(e).

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

     Transferor: Any Person who is disposing by Transfer of any Ownership Interest in a
Certificate.

     Trigger Event: [A Trigger Event is in effect with respect to any Distribution Date if
either (a) on or after the Stepdown Date the [Sixty][Ninety]-Plus Delinquency Percentage for that
Distribution Date exceeds [__]% of the current Senior Enhancement Percentage or (b) on or

47

 

	 	 	after the
Distribution Date in [________] 20[_], the aggregate amount of Realized Losses on the Mortgage
Loans as a percentage of the Cut-off Date Balance exceeds the applicable amount set forth below:

	 	 	 	 	 

	 

	 	[________]20[_] to [________] 20[_]:
	 	[__]% with respect to [________]
20[_], plus an additional 1/12th of
[__]% for each month thereafter;
	 
	 	 	 	 
	 

	 	[________]20[_] to [________] 20[_]:
	 	[__]% with respect to [________]
20[_], plus an additional 1/12th of
[__]% for each month thereafter;
	 
	 	 	 	 
	 

	 	[________]20[_] to [________] 20[_]:
	 	[__]% with respect to [________]
20[_], plus an additional 1/12th of
[__]% for each month thereafter; and
	 
	 	 	 	 
	 

	 	[________]20[_] and thereafter:
	 	[__]%.

     Trustee: As defined in the preamble hereto.

     Trustee Information: As specified in Section 12.05(a)(i)(A).

     Trust Fund: Collectively, the assets of each REMIC hereunder.

     [Uncertificated Accrued Interest: With respect to any REMIC I Regular Interest for
any Distribution Date, one month’s interest at the related Uncertificated REMIC I Pass-Through Rate
for such Distribution Date, accrued on its Uncertificated Principal Balance immediately prior to
such Distribution Date. Uncertificated Accrued Interest for the REMIC I Regular Interests shall
accrue on the basis of a 360-day year consisting of twelve 30-day months. For purposes of
calculating the amount of Uncertificated Accrued Interest for the REMIC I Regular Interests for any
Distribution Date, any Prepayment Interest Shortfalls and Relief Act Shortfalls (to the extent not
covered by Compensating Interest) relating to the Mortgage Loans for any Distribution Date shall be
allocated among REMIC I Regular Interests LT1, LT2, LT3 and LT4 pro rata, based on, and to the
extent of, Uncertificated Accrued Interest, as calculated without application of this sentence.
Uncertificated Accrued Interest on REMIC II Regular Interest SB-PO shall be zero. Uncertificated
Accrued Interest on REMIC II Regular Interest SB IO for each Distribution Date shall equal Accrued
Certificate Interest for the Class SB Certificates.]

     [Uncertificated Principal Balance: The principal amount of any REMIC I Regular
Interest outstanding as of any date of determination. The Uncertificated Principal Balance of each
REMIC I Regular Interest shall never be less than zero. With respect to the REMIC II Regular
Interest SB-PO the initial amount set forth with respect thereto in the Preliminary
Statement as reduced by distributions deemed made in respect thereof pursuant to Section 4.02
and Realized Losses allocated thereto pursuant to Section 4.05.]

     Uncertificated REMIC I Pass-Through Rate: With respect to any Distribution Date and
(i) REMIC I Regular Interests LT1 and LT2, the weighted average of the Net Mortgage Rates of the
Mortgage Loans, (ii) REMIC I Regular Interest LT3, zero (0.00%), and (iii) REMIC I

48

 

Regular Interest
LT4, twice the weighted average of the Net Mortgage Rates of the Mortgage Loans.

     Uniform Single Attestation Program for Mortgage Bankers: The Uniform Single
Attestation Program for Mortgage Bankers, as published by the Mortgage Bankers Association of
America and effective with respect to fiscal periods ending on or after March 15, 1995.

     Uninsured Cause: Any cause of damage to property subject to a Mortgage such that the
complete restoration of such property is not fully reimbursable by the hazard insurance policies.

     United States Person: Either (i) a citizen or resident of the United States, a
corporation, partnership or other entity (treated as a corporation or partnership for United States
federal income tax purposes) created or organized in, or under the laws of, the United States, any
state thereof, or the District of Columbia (except in the case of a partnership, to the extent
provided in Treasury regulations) provided that, for purposes solely of the restrictions on the
transfer of Class R Certificates, no partnership or other entity treated as a partnership for
United States federal income tax purposes shall be treated as a United States Person unless all
persons that own an interest in such partnership either directly or through any entity that is not
a corporation for United States federal income tax purposes are required by the applicable
operative agreement to be United States Persons, or an estate that is described in Section
7701(a)(30)(D) of the Code, or a trust that is described in Section 7701(a)(30)(E) of the Code, or
(ii) as defined in Regulation S, as the context may require.

     Voting Rights: The portion of the voting rights of all of the Certificates which is
allocated to any Certificate. [___]% of all of the Voting Rights shall be allocated among Holders
of the Class A Certificates, the Class M Certificates and the Class B Certificates in proportion to
the outstanding Certificate Principal Balances of their respective Certificates; [___]% of all of
the Voting Rights shall be allocated to the Holders of the Class SB Certificates, and [___]% ,
[___]% and [___]% of all of the Voting Rights shall be allocated to the Holders of the Class R-I
Certificates, the Class R-II Certificates and the Class R-III Certificates, respectively; in each
case to be allocated among the Certificates of such Class in accordance with their respective
Percentage Interests; provided, however, that once the Class A, Class M and Class B
Certificates have been paid in full, [__]% of all of the Voting Rights shall be allocated to the
Class SB Certificates and [__]% of all of the Voting Rights shall be allocated to the Class R-I,
Class R-II and Class R-III Certificates, respectively, in each case to be allocated among the
Certificates of such Class in accordance ith their respective Percentage Interests. .

49

 

     Section 1.02. Determination of LIBOR

     LIBOR applicable to the calculation of the Pass-Through Rate on the LIBOR Certificates for any
Interest Accrual Period will be determined as of each LIBOR Rate Adjustment Date.

     On each LIBOR Rate Adjustment Date, or if such LIBOR Rate Adjustment Date is not a Business
Day, then on the next succeeding Business Day, LIBOR shall be established by the Trustee and, as to
any Interest Accrual Period, will equal the rate for one month United States dollar deposits that
appears on the Telerate Screen Page 3750 as of 11:00 a.m., London time, on such LIBOR Rate
Adjustment Date. “Telerate Screen Page 3750” means the display designated as page 3750 on the
Bridge Telerate Service (or such other page as may replace page 3750 on that service for the
purpose of displaying London interbank offered rates of major banks). If such rate does not appear
on such page (or such other page as may replace that page on that service, or if such service is no
longer offered, LIBOR shall be so established by use of such other service for displaying LIBOR or
comparable rates as may be selected by the Trustee after consultation with the Master Servicer),
the rate will be the Reference Bank Rate.

     The “Reference Bank Rate” will be determined on the basis of the rates at which deposits in
U.S. Dollars are offered by the reference banks (which shall be any three major banks that are
engaged in transactions in the London interbank market, selected by the Trustee after consultation
with the Master Servicer) as of 11:00 a.m., London time, on the LIBOR Rate Adjustment Date to prime
banks in the London interbank market for a period of one month in amounts approximately equal to
the aggregate Certificate Principal Balance of the LIBOR Certificates then outstanding. The
Trustee shall request the principal London office of each of the reference banks to provide a
quotation of its rate. If at least two such quotations are provided, the rate will be the
arithmetic mean of the quotations rounded up to the next multiple of 1/16%. If on such date fewer
than two quotations are provided as requested, the rate will be the arithmetic mean of the rates
quoted by one or more major banks in New York City, selected by the Trustee after consultation with
the Master Servicer, as of 11:00 a.m., New York City time, on such date for loans in U.S. Dollars
to leading European banks for a period of one month in amounts approximately equal to the aggregate
Certificate Principal Balance of the LIBOR Certificates then outstanding. If no such quotations
can be obtained, the rate will be LIBOR for the prior Distribution Date; provided, however, if,
under the priorities described above, LIBOR for a Distribution Date would be based on LIBOR for the
previous Distribution Date for the third consecutive Distribution Date, the Trustee shall select an
alternative comparable index (over which the Trustee has no control), used for determining
one-month Eurodollar lending rates that is calculated and published (or otherwise made available)
by an independent party.

     The establishment of LIBOR by the Trustee on any LIBOR Rate Adjustment Date and the Trustee’s
subsequent calculation of the Pass-Through Rates applicable to the LIBOR Certificates for the
relevant Interest Accrual Period, in the absence of manifest error, will be final and binding.

     Promptly following each LIBOR Rate Adjustment Date the Trustee shall supply the Master
Servicer with the results of its determination of LIBOR on such date. Furthermore, the Trustee
shall supply to any Certificateholder so requesting by calling the Bondholder Inquiry

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Line at 1-800-[___]-[____], the Pass-Through Rate on the LIBOR Certificates for the current
and the immediately preceding Interest Accrual Period.

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ARTICLE II

CONVEYANCE OF MORTGAGE LOANS;

ORIGINAL ISSUANCE OF CERTIFICATES

     Section 2.01. Conveyance of Mortgage Loans

          (a) The Depositor, concurrently with the execution and delivery hereof, does hereby assign to
the Trustee in respect of the Trust Fund without recourse all the right, title and interest of the
Depositor in and to (i) the Mortgage Loans, including all interest and principal received on or
with respect to the Mortgage Loans after the Cut-off Date (other than payments of principal and
interest due on the Mortgage Loans in the month of the Cut-off Date) and (ii) all proceeds of the
foregoing.

          (b) In connection with such assignment, and contemporaneously with the delivery of this
Agreement, except as set forth in Section 2.01(c) below and subject to Section 2.01(d) below, the
Depositor does hereby (1) with respect to each Mortgage Loan, deliver to the Master Servicer (or an
Affiliate of the Master Servicer) each of the documents or instruments described in clause (ii)
below (and the Master Servicer shall hold (or cause such Affiliate to hold) such documents or
instruments in trust for the use and benefit of all present and future Certificateholders), (2)
with respect to each MOM Loan, deliver to, and deposit with, the Trustee, or the Custodian, as the
duly appointed agent of the Trustee for such purpose, the documents or instruments described in
clauses (i) and (v) below, (3) with respect to each Mortgage Loan that is not a MOM Loan but is
registered on the MERS® System, deliver to, and deposit with, the Trustee, or the Custodian, as the
duly appointed agent of the Trustee for such purpose, the documents or instruments described in
clauses (i), (iv) and (v) below and (4) with respect to each Mortgage Loan that is not a MOM Loan
and is not registered on the MERS® System, deliver to, and deposit with, the Trustee, or the
Custodian, as the duly appointed agent of the Trustee for such purpose, the documents or
instruments described in clauses (i), (iii), (iv) and (v) below:

               (i) The original Mortgage Note, endorsed without recourse to the order of the Trustee and
showing an unbroken chain of endorsements from the originator thereof to the Person endorsing it to
the Trustee, or with respect to any Destroyed Mortgage Note, an original lost note affidavit from
the related Seller or [_________________] stating that the original Mortgage Note was lost,
misplaced or destroyed, together with a copy of the related Mortgage Note;

               (ii) The original Mortgage, noting the presence of the MIN of the Mortgage Loan and language
indicating that the Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM Loan, with evidence
of recording indicated thereon or, if the original Mortgage has not yet been returned from the
public recording office, a copy of the original Mortgage with evidence of recording indicated
thereon;

               (iii) The assignment (which may be included in one or more blanket assignments if permitted by
applicable law) of the Mortgage to the Trustee with evidence of

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recording indicated thereon or a copy of such assignment with evidence of recording indicated
thereon;

               (iv) The original recorded assignment or assignments of the Mortgage showing an unbroken chain
of title from the originator to the Person assigning it to the Trustee (or to MERS, if the Mortgage
Loan is registered on the MERS® System and noting the presence of a MIN) with evidence of
recordation noted thereon or attached thereto, or a copy of such assignment or assignments of the
Mortgage with evidence of recording indicated thereon; and

               (v) The original of each modification, assumption agreement or preferred loan agreement, if
any, relating to such Mortgage Loan, or a copy of each modification, assumption agreement or
preferred loan agreement.

     The Depositor may, in lieu of delivering the original of the documents set forth in Section
2.01(b)(ii), (iii), (iv) and (v) (or copies thereof as permitted by Section 2.01(b)) to the Trustee
or the Custodian, deliver such documents to the Master Servicer, and the Master Servicer shall hold
such documents in trust for the use and benefit of all present and future Certificateholders until
such time as is set forth in the next sentence. Within thirty Business Days following the earlier
of (i) the receipt of the original of all of the documents or instruments set forth in Section
2.01(b)(ii), (iii), (iv) and (v) (or copies thereof as permitted by such Section) for any Mortgage
Loan and (ii) a written request by the Trustee to deliver those documents with respect to any or
all of the Mortgage Loans then being held by the Master Servicer, the Master Servicer shall deliver
a complete set of such documents to the Trustee or the Custodian that are the duly appointed agent
or agents of the Trustee.

     On the Closing Date, the Master Servicer shall certify that it has in its possession an
original or copy of each of the documents referred to in Section 2.01(b)(ii), (iii), (iv) and (v)
which has been delivered to it by the Depositor.

     The Depositor, the Master Servicer and the Trustee agree that it is not intended that any
mortgage loan be included in the Trust Fund that is (i) a “High-Cost Home Loan” as defined in the
New Jersey Home Ownership Act effective November 27, 2003, (ii) a “High-Cost Home Loan” as defined
in the New Mexico Home Loan Protection Act effective January 1, 2004, (iii) a “High Cost Home
Mortgage Loan” as defined in the Massachusetts Predatory Home Practices Act effective November 7,
2004 or (iv) a “High-Cost Home Loan” as defined in the Indiana High Cost Home Loan Law effective
January 1, 2005.

          (c) Notwithstanding the provisions of Section 2.01(b), in the event that in connection with
any Mortgage Loan, if the Depositor cannot deliver the original of the Mortgage, any assignment,
modification, assumption agreement or preferred loan agreement (or copy thereof as permitted by
Section 2.01(b)) with evidence of recording thereon concurrently with the execution and delivery of
this Agreement because of (i) a delay caused by the public recording office where such Mortgage,
assignment, modification, assumption agreement or preferred loan agreement as the case may be, has
been delivered for recordation, or (ii) a delay in the receipt of certain information necessary to
prepare the related assignments, the Depositor shall deliver or cause to be delivered to the
Trustee or the respective Custodian a copy of such Mortgage, assignment, modification, assumption
agreement or preferred loan agreement.

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     The Depositor shall promptly cause to be recorded in the appropriate public office for real
property records the Assignment referred to in clause (iii) of Section 2.01(b), except (a) in
states where, in an Opinion of Counsel acceptable to the Trustee and the Master Servicer, such
recording is not required to protect the Trustee’s interests in the Mortgage Loan or (b) if MERS is
identified on the Mortgage or on a properly recorded assignment of the Mortgage, as applicable, as
the mortgagee of record solely as nominee for [_________________] and its successors and assigns.
If any Assignment is lost or returned unrecorded to the Depositor because of any defect therein,
the Depositor shall prepare a substitute Assignment or cure such defect, as the case may be, and
cause such Assignment to be recorded in accordance with this paragraph. The Depositor shall
promptly deliver or cause to be delivered to the Trustee or the respective Custodian such Mortgage
or Assignment, as applicable (or copy thereof as permitted by Section 2.01(b)), with evidence of
recording indicated thereon upon receipt thereof from the public recording office or from the
related Subservicer or Seller.

     If the Depositor delivers to the Trustee or Custodian any Mortgage Note or Assignment of
Mortgage in blank, the Depositor shall, or shall cause the Custodian to, complete the endorsement
of the Mortgage Note and the Assignment of Mortgage in the name of the Trustee in conjunction with
the Interim Certification issued by the Custodian, as contemplated by Section 2.02.

     Any of the items set forth in Sections 2.01(b)(ii), (iii), (iv) and (v) and that may be
delivered as a copy rather than the original may be delivered to the Trustee or the Custodian.

     In connection with the assignment of any Mortgage Loan registered on the MERS® System, the
Depositor further agrees that it will cause, at the Depositor’s own expense, within 30 Business
Days after the Closing Date, the MERS® System to indicate that such Mortgage Loans have been
assigned by the Depositor to the Trustee in accordance with this Agreement for the benefit of the
Certificateholders by including (or deleting, in the case of Mortgage Loans which are repurchased
in accordance with this Agreement) in such computer files (a) the code in the field which
identifies the specific Trustee and (b) the code in the field “Pool Field” which identifies the
series of the Certificates issued in connection with such Mortgage Loans. The Depositor further
agrees that it will not, and will not permit the Master Servicer to, and the Master Servicer agrees
that it will not, alter the codes referenced in this paragraph with respect to any Mortgage Loan
during the term of this Agreement unless and until such Mortgage Loan is repurchased in accordance
with the terms of this Agreement.

          (d) It is intended that the conveyances by the Depositor to the Trustee of the Mortgage Loans
as provided for in this Section 2.01 and the Uncertificated Regular Interests be construed as a
sale by the Depositor to the Trustee of the Mortgage Loans and the Uncertificated Regular Interests
for the benefit of the Certificateholders. Further, it is not intended that any such conveyance be
deemed to be a pledge of the Mortgage Loans and the Uncertificated Regular Interests by the
Depositor to the Trustee to secure a debt or other obligation of the Depositor. Nonetheless, (a)
this Agreement is intended to be and hereby is a security agreement within the meaning of Articles
8 and 9 of the New York Uniform Commercial Code and the Uniform Commercial Code of any other
applicable jurisdiction; (b) the conveyances provided for in this Section 2.01 shall be deemed to
be (1) a grant by the Depositor to the Trustee of a security interest in all of the Depositor’s
right (including the power to convey title thereto), title and

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interest, whether now owned or hereafter acquired, in and to (A) the Mortgage Loans, including
the related Mortgage Note, the Mortgage, any insurance policies and all other documents in the
related Mortgage File, (B) any Uncertificated Regular Interests and any and all general
intangibles, payment intangibles, accounts, chattel paper, instruments, documents, money, deposit
accounts, certificates of deposit, goods, letters of credit, advices of credit and investment
property and other property of whatever kind or description now existing or hereafter acquired
consisting of, arising from or relating to any of the foregoing, and (C) all proceeds of the
conversion, voluntary or involuntary, of the foregoing into cash, instruments, securities or other
property, including without limitation all amounts from time to time held or invested in the
Certificate Account or the Custodial Account, whether in the form of cash, instruments, securities
or other property and (2) an assignment by the Depositor to the Trustee of any security interest in
any and all of [_________________]’s right (including the power to convey title thereto), title and
interest, whether now owned or hereafter acquired, in and to the property described in the
foregoing clauses (1)(A), (B) and (C) granted by [_________________] to the Depositor pursuant to
the Assignment Agreement; (c) the possession by the Trustee, the Custodian or any other agent of
the Trustee of Mortgage Notes or such other items of property as constitute instruments, money,
payment intangibles, negotiable documents, goods, deposit accounts, letters of credit, advices of
credit, investment property, certificated securities or chattel paper shall be deemed to be
“possession by the secured party,” or possession by a purchaser or a person designated by such
secured party, for purposes of perfecting the security interest pursuant to the Minnesota Uniform
Commercial Code and the Uniform Commercial Code of any other applicable jurisdiction as in effect
(including, without limitation, Sections 8-106, 9-313 and 9-106 thereof); and (d) notifications to
persons holding such property, and acknowledgments, receipts or confirmations from persons holding
such property, shall be deemed notifications to, or acknowledgments, receipts or confirmations
from, securities intermediaries, bailees or agents of, or persons holding for, (as applicable) the
Trustee for the purpose of perfecting such security interest under applicable law.

     The Depositor and, at the Depositor’s direction, [_________________] and the Trustee shall, to
the extent consistent with this Agreement, take such reasonable actions as may be necessary to
ensure that, if this Agreement were deemed to create a security interest in the Mortgage Loans and
the Uncertificated Regular Interests and the other property described above, such security interest
would be deemed to be a perfected security interest of first priority under applicable law and will
be maintained as such throughout the term of this Agreement. Without limiting the generality of the
foregoing, the Depositor shall prepare and deliver to the Trustee not less than 15 days prior to
any filing date and, the Trustee shall forward for filing, or shall cause to be forwarded for
filing, at the expense of the Depositor, all filings necessary to maintain the effectiveness of any
original filings necessary under the Uniform Commercial Code as in effect in any jurisdiction to
perfect the Trustee’s security interest in or lien on the Mortgage Loans and the Uncertificated
Regular Interests, as evidenced by an Officers’ Certificate of the Depositor, including without
limitation (x) continuation statements, and (y) such other statements as may be occasioned by (1)
any change of name of [_________________], the Depositor or the Trustee (such preparation and
filing shall be at the expense of the Trustee, if occasioned by a change in the Trustee’s name),
(2) any change of location of the place of business or the chief executive office of
[_________________] or the Depositor, (3) any transfer of any interest of [_________________] or
the Depositor in any Mortgage Loan or (4) any transfer of any interest of [_________________] or
the Depositor in any Uncertificated Regular Interests.

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     Section 2.02. Acceptance by Trustee

     The Trustee acknowledges receipt (or, with respect to Mortgage Loans subject to a Custodial
Agreement, and based solely upon a receipt or certification executed by the Custodian, receipt by
the respective Custodian as the duly appointed agent of the Trustee) of the documents referred to
in Section 2.01(b)(i) above (except that for purposes of such acknowledgement only, a Mortgage Note
may be endorsed in blank and an Assignment of Mortgage may be in blank) and declares that it, or a
Custodian as its agent, holds and will hold such documents and the other documents constituting a
part of the Custodial Files delivered to it, or a Custodian as its agent, in trust for the use and
benefit of all present and future Certificateholders. The Trustee or Custodian (such Custodian
being so obligated under a Custodial Agreement) agrees, for the benefit of Certificateholders, to
review each Custodial File delivered to it pursuant to Section 2.01(b) within 90 days after the
Closing Date to ascertain that all required documents (specifically as set forth in Section
2.01(b)), have been executed and received, and that such documents relate to the Mortgage Loans
identified on the Mortgage Loan Schedule, as supplemented, that have been conveyed to it, and to
deliver to the Trustee a certificate (the “Interim Certification”) to the effect that all documents
required to be delivered pursuant to Section 2.01(b) above have been executed and received and that
such documents relate to the Mortgage Loans identified on the Mortgage Loan Schedule, except for
any exceptions listed on Schedule A attached to such Interim Certification. Upon delivery of the
Custodial Files by the Depositor or the Master Servicer, the Trustee shall acknowledge receipt (or,
with respect to Mortgage Loans subject to a Custodial Agreement, and based solely upon a receipt or
certification executed by the Custodian, receipt by the respective Custodian as the duly appointed
agent of the Trustee) of the documents referred to in Section 2.01(b) above.

     If the Custodian, as the Trustee’s agent, finds any document or documents constituting a part
of a Custodial File to be missing or defective, upon receipt of notification from the Custodian as
specified in the succeeding sentence, the Trustee shall promptly so notify or cause the Custodian
to notify the Master Servicer and the Depositor. Pursuant to Section 2.3 of the Custodial
Agreement, the Custodian will notify the Master Servicer, the Depositor and the Trustee of any such
omission or defect found by it in respect of any Custodial File held by it in respect of the items
received by it pursuant to the Custodial Agreement. If such omission or defect materially and
adversely affects the interests in the related Mortgage Loan of the Certificateholders, the Master
Servicer shall promptly notify [_________________] of such omission or defect and request
[_________________] to correct or cure such omission or defect within 60 days from the date the
Master Servicer was notified of such omission or defect and, if [_________________] does not
correct or cure such omission or defect within such period, [_________________] to purchase such
Mortgage Loan from the Trust Fund at its Purchase Price, within 90 days from the date the Master
Servicer was notified of such omission or defect; provided that if the omission or defect would
cause the Mortgage Loan to be other than a “qualified mortgage” as defined in Section 860G(a)(3) of
the Code, any such cure or repurchase must occur within 90 days from the date such breach was
discovered. The Purchase Price for any such Mortgage Loan shall be deposited or caused to be
deposited by the Master Servicer in the Custodial Account maintained by it pursuant to Section 3.07
and, upon receipt by the Trustee of written notification of such deposit signed by a Servicing
Officer, the Trustee or any Custodian, as the case may be, shall release to [_________________] the
related Mortgage File and the Trustee shall execute and deliver such instruments of transfer or
assignment prepared by the

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Master Servicer, in each case without recourse, as shall be necessary to vest in
[_________________] or its designee, any Mortgage Loan released pursuant hereto and thereafter such
Mortgage Loan shall not be part of the Trust Fund. In furtherance of the foregoing and Section
2.04, if the Subservicer or Seller or [_________________] that repurchases the Mortgage Loan is not
a member of MERS and the Mortgage is registered on the MERS® System, the Master Servicer, at its
own expense and without any right of reimbursement, shall cause MERS to execute and deliver an
assignment of the Mortgage in recordable form to transfer the Mortgage from MERS to such
Subservicer or Seller or [_________________] and shall cause such Mortgage to be removed from
registration on the MERS® System in accordance with MERS’ rules and regulations. It is understood
and agreed that the obligation of [_________________], to so cure or purchase any Mortgage Loan as
to which a material and adverse defect in or omission of a constituent document exists shall
constitute the sole remedy respecting such defect or omission available to Certificateholders or
the Trustee on behalf of Certificateholders.

     Section 2.03. Representations, Warranties and Covenants of the Master Servicer and
the Depositor

          (a) The Master Servicer hereby represents and warrants to the Trustee for the benefit of the
Certificateholders that:

               (i) The Master Servicer is a [corporation][limited liability company] duly
[organized][formed], validly existing and in good standing under the laws governing its creation
and existence and is or will be in compliance with the laws of each state in which any Mortgaged
Property is located to the extent necessary to ensure the enforceability of each Mortgage Loan in
accordance with the terms of this Agreement;

               (ii) The execution and delivery of this Agreement by the Master Servicer and its performance
and compliance with the terms of this Agreement will not violate the Master Servicer’s [Certificate
of Incorporation or Bylaws][Operating Agreement] or constitute a material default (or an event
which, with notice or lapse of time, or both, would constitute a material default) under, or result
in the material breach of, any material contract, agreement or other instrument to which the Master
Servicer is a party or which may be applicable to the Master Servicer or any of its assets;

               (iii) This Agreement, assuming due authorization, execution and delivery by the Trustee and
the Depositor, constitutes a valid, legal and binding obligation of the Master Servicer,
enforceable against it in accordance with the terms hereof subject to applicable bankruptcy,
insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’
rights generally and to general principles of equity, regardless of whether such enforcement is
considered in a proceeding in equity or at law;

               (iv) The Master Servicer is not in default with respect to any order or decree of any court or
any order, regulation or demand of any federal, state, municipal or governmental agency, which
default might have consequences that would materially and adversely affect the condition (financial
or other) or operations of the Master Servicer or its

57

 

properties or might have consequences that would materially adversely affect its performance
hereunder;

               (v) No litigation is pending or, to the best of the Master Servicer’s knowledge, threatened
against the Master Servicer which would prohibit its entering into this Agreement or performing its
obligations under this Agreement;

               (vi) The Master Servicer shall comply in all material respects in the performance of this
Agreement with all reasonable rules and requirements of each insurer under each Required Insurance
Policy;

               (vii) No information, certificate of an officer, statement furnished in writing or report
delivered to the Depositor, any Affiliate of the Depositor or the Trustee by the Master Servicer
will, to the knowledge of the Master Servicer, contain any untrue statement of a material fact or
omit a material fact necessary to make the information, certificate, statement or report not
misleading;

               (viii) The Master Servicer has examined each existing, and will examine each new, Subservicing
Agreement and is or will be familiar with the terms thereof. The terms of each existing
Subservicing Agreement and each designated Subservicer are acceptable to the Master Servicer and
any new Subservicing Agreements will comply with the provisions of Section 3.02;

               (ix) The Master Servicer is a member of MERS in good standing, and will comply in all material
respects with the rules and procedures of MERS in connection with the servicing of the Mortgage
Loans that are registered with MERS; and

               (x) The Servicing Guide of the Master Servicer requires that the Subservicer for each Mortgage
Loan accurately and fully reports its borrower credit files to each of the Credit Repositories in a
timely manner.

     It is understood and agreed that the representations and warranties set forth in this Section
2.03(a) shall survive delivery of the respective Custodial Files to the Trustee or any Custodian.

     Upon discovery by either the Depositor, the Master Servicer, the Trustee or any Custodian of a
breach of any representation or warranty set forth in this Section 2.03(a) which materially and
adversely affects the interests of the Certificateholders in any Mortgage Loan, the party
discovering such breach shall give prompt written notice to the other parties (any Custodian being
so obligated under a Custodial Agreement). Within 90 days of its discovery or its receipt of notice
of such breach, the Master Servicer shall either (i) cure such breach in all material respects or
(ii) to the extent that such breach is with respect to a Mortgage Loan or a related document,
purchase such Mortgage Loan from the Trust Fund at the Purchase Price and in the manner set forth
in Section 2.02; provided that if the breach would cause the Mortgage Loan to be other than a
“qualified mortgage” as defined in Section 860G(a)(3) of the Code, any such cure or repurchase must
occur within 90 days from the date such breach was discovered. The obligation of the Master
Servicer to cure such breach or to so purchase such Mortgage Loan shall constitute the sole remedy
in respect of a breach of a representation and warranty set forth

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in this Section 2.03(a) available to the Certificateholders or the Trustee on behalf of the
Certificateholders.

          (b) The Depositor hereby represents and warrants to the Trustee for the benefit of the
Certificateholders that as of the Closing Date (or, if otherwise specified below, as of the date so
specified): (i) the information set forth in Exhibit F hereto with respect to each Mortgage Loan
or the Mortgage Loans, as the case may be, is true and correct in all material respects at the
respective date or dates which such information is furnished; (ii) immediately prior to the
conveyance of the Mortgage Loans to the Trustee, the Depositor had good title to, and was the sole
owner of, each Mortgage Loan free and clear of any pledge, lien, encumbrance or security interest
(other than rights to servicing and related compensation) and such conveyance validly transfers
ownership of the Mortgage Loans to the Trustee free and clear of any pledge, lien, encumbrance or
security interest; and (iii) each Mortgage Loan constitutes a qualified mortgage under Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1).

     It is understood and agreed that the representations and warranties set forth in this Section
2.03(b) shall survive delivery of the respective Custodial Files to the Trustee or any Custodian.

     Upon discovery by any of the Depositor, the Master Servicer, the Trustee or any Custodian of a
breach of any of the representations and warranties set forth in this Section 2.03(b) which
materially and adversely affects the interests of the Certificateholders in any Mortgage Loan, the
party discovering such breach shall give prompt written notice to the other parties (any Custodian
being so obligated under a Custodial Agreement); provided, however, that in the event of a breach
of the representation and warranty set forth in Section 2.03(b)(iii), the party discovering such
breach shall give such notice within five days of discovery. Within 90 days of its discovery or its
receipt of notice of breach, the Depositor shall either (i) cure such breach in all material
respects or (ii) purchase such Mortgage Loan from the Trust Fund at the Purchase Price and in the
manner set forth in Section 2.02; provided that the Depositor shall have the option to substitute a
Qualified Substitute Mortgage Loan or Loans for such Mortgage Loan if such substitution occurs
within two years following the Closing Date; provided that if the omission or defect would cause
the Mortgage Loan to be other than a “qualified mortgage” as defined in Section 860G(a)(3) of the
Code, any such cure, substitution or repurchase must occur within 90 days from the date such breach
was discovered. Any such substitution shall be effected by the Depositor under the same terms and
conditions as provided in Section 2.04 for substitutions by [_________________]. It is understood
and agreed that the obligation of the Depositor to cure such breach or to so purchase or substitute
for any Mortgage Loan as to which such a breach has occurred and is continuing shall constitute the
sole remedy respecting such breach available to the Certificateholders or the Trustee on behalf of
the Certificateholders. Notwithstanding the foregoing, the Depositor shall not be required to cure
breaches or purchase or substitute for Mortgage Loans as provided in this Section 2.03(b) if the
substance of the breach of a representation set forth above also constitutes fraud in the
origination of the Mortgage Loan.

     Section 2.04. Representations and Warranties of [_________________]

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     The Depositor, as assignee of [_________________] under the Assignment Agreement, hereby
assigns to the Trustee for the benefit of the Certificateholders all of its right, title and
interest in respect of the Assignment Agreement applicable to a Mortgage Loan as and to the extent
set forth in the Assignment Agreement. Insofar as the Assignment Agreement relates to the
representations and warranties made by [_________________] or the related Seller in respect of such
Mortgage Loan and any remedies provided thereunder for any breach of such representations and
warranties, such right, title and interest may be enforced by the Master Servicer on behalf of the
Trustee and the Certificateholders. Upon the discovery by the Depositor, the Master Servicer, the
Trustee or any Custodian of a breach of any of the representations and warranties made in the
Assignment Agreement in respect of any Mortgage Loan or of any Repurchase Event which materially
and adversely affects the interests of the Certificateholders in such Mortgage Loan, the party
discovering such breach shall give prompt written notice to the other parties (any Custodian being
so obligated under a Custodial Agreement). The Master Servicer shall promptly notify
[_________________] of such breach or Repurchase Event and request that [_________________] either
(i) cure such breach or Repurchase Event in all material respects within 90 days from the date the
Master Servicer was notified of such breach or Repurchase Event or (ii) purchase such Mortgage Loan
from the Trust Fund at the Purchase Price and in the manner set forth in Section 2.02.

     Upon the discovery by the Depositor, the Master Servicer, the Trustee or the Custodian of a
breach of any of such representations and warranties set forth in the Assignment Agreement in
respect of any Mortgage Loan which materially and adversely affects the interests of the
Certificateholders in such Mortgage Loan, the party discovering such breach shall give prompt
written notice to the other parties (the Custodian being so obligated under a Custodial Agreement).
The Master Servicer shall promptly notify [_________________] of such breach of a representation
or warranty set forth in the Assignment Agreement and request that [_________________] either (i)
cure such breach in all material respects within 90 days from the date the Master Servicer was
notified of such breach or (ii) purchase such Mortgage Loan from the Trust Fund within 90 days of
the date of such written notice of such breach at the Purchase Price and in the manner set forth in
Section 2.02; provided that, in the case of a breach or Repurchase Event under the Assignment
Agreement [_________________] shall have the option to substitute a Qualified Substitute Mortgage
Loan or Loans for such Mortgage Loan if such substitution occurs within two years following the
Closing Date; provided that if the breach would cause the Mortgage Loan to be other than a
“qualified mortgage” as defined in Section 860G(a)(3) of the Code, any such cure or substitution
must occur within 90 days from the date the breach was discovered. If the breach of representation
and warranty that gave rise to the obligation to repurchase or substitute a Mortgage Loan pursuant
to Section 4 of the Assignment Agreement was the representation and warranty set forth in clause
(w) of Section 4 thereof, then the Master Servicer shall request that [_________________] pay to
the Trust Fund, concurrently with and in addition to the remedies provided in the preceding
sentence, an amount equal to any liability, penalty or expense that was actually incurred and paid
out of or on behalf of the Trust Fund, and that directly resulted from such breach, or if incurred
and paid by the Trust Fund thereafter, concurrently with such payment. In the event that
[_________________] elects to substitute a Qualified Substitute Mortgage Loan or Loans for a
Deleted Mortgage Loan pursuant
to this Section 2.04, [_________________] shall deliver to the Trustee for the benefit of the
Certificateholders with respect to such Qualified Substitute Mortgage Loan or Loans, the
original Mortgage Note, the Mortgage, an Assignment of the Mortgage in recordable form, and

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such other documents and agreements as are required by Section 2.01, with the Mortgage Note
endorsed as required by Section 2.01. No substitution will be made in any calendar month after the
Determination Date for such month. Monthly Payments due with respect to Qualified Substitute
Mortgage Loans in the month of substitution shall not be part of the Trust Fund and will be
retained by the Master Servicer and remitted by the Master Servicer to [_________________] on the
next succeeding Distribution Date. For the month of substitution, distributions to the
Certificateholders will include the Monthly Payment due on a Deleted Mortgage Loan for such month
and thereafter [_________________] shall be entitled to retain all amounts received in respect of
such Deleted Mortgage Loan. The Master Servicer shall amend or cause to be amended the Mortgage
Loan Schedule for the benefit of the Certificateholders to reflect the removal of such Deleted
Mortgage Loan and the substitution of the Qualified Substitute Mortgage Loan or Loans and the
Master Servicer shall deliver the amended Mortgage Loan Schedule to the Trustee. Upon such
substitution, the Qualified Substitute Mortgage Loan or Loans shall be subject to the terms of this
Agreement and the related Subservicing Agreement in all respects, [_________________] shall be
deemed to have made the representations and warranties with respect to the Qualified Substitute
Mortgage Loan (other than those of a statistical nature) contained in Section 4 of the Assignment
Agreement as of the date of substitution, and the covenants, representations and warranties set
forth in this Section 2.04, and in Section 2.03(a) hereof and in Section 4 of the Assignment
Agreement, and the Master Servicer shall be obligated to repurchase or substitute for any Qualified
Substitute Mortgage Loan as to which a Repurchase Event (as defined in the Assignment Agreement)
has occurred pursuant to Section 4 of the Assignment Agreement.

     In connection with the substitution of one or more Qualified Substitute Mortgage Loans for one
or more Deleted Mortgage Loans, the Master Servicer shall determine the amount (if any) by which
the aggregate principal balance of all such Qualified Substitute Mortgage Loans as of the date of
substitution is less than the aggregate Stated Principal Balance of all such Deleted Mortgage Loans
(in each case after application of the principal portion of the Monthly Payments due in the month
of substitution that are to be distributed to the Certificateholders in the month of substitution).
[_________________] shall deposit the amount of such shortfall into the Custodial Account on the
day of substitution, without any reimbursement therefor. [_________________] shall give notice in
writing to the Trustee of such event, which notice shall be accompanied by an Officers’ Certificate
as to the calculation of such shortfall and (subject to Section 10.01(f)) by an Opinion of Counsel
to the effect that such substitution will not cause (a) any federal tax to be imposed on the Trust
Fund, including without limitation, any federal tax imposed on “prohibited transactions” under
Section 860F(a)(1) of the Code or on “contributions after the startup date” under Section
860G(d)(1) of the Code or (b) any portion of any REMIC created hereunder to fail to qualify as a
REMIC at any time that any Certificate is outstanding.

     It is understood and agreed that the obligation of [_________________] to cure such breach or
purchase or substitute for a such Mortgage Loan as to which such a breach has occurred and is
continuing and to make any additional payments required under the Assignment Agreement in
connection with a breach of the representation and warranty in clause (w) of Section 4 thereof
shall constitute the sole remedy respecting such breach available to the
Certificateholders or the Trustee on behalf of the Certificateholders. If the Master Servicer
is [_________________], then the Trustee shall also have the right to give the notification and

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require the purchase or substitution provided for in the second preceding paragraph in the event of
such a breach of a representation or warranty made by [_________________] in the Assignment
Agreement. In connection with the purchase of or substitution for any such Mortgage Loan by
[_________________], the Trustee shall assign to [_________________] all of the right, title and
interest in respect of the Seller’s Agreement and the Assignment Agreement applicable to such
Mortgage Loan.

     Section 2.05. Execution and Authentication of Certificates; Conveyance of REMIC I
Regular Interests

          (a) The Trustee acknowledges the assignment to it of the Mortgage Loans and the delivery of
the Custodial Files to it, or any Custodian on its behalf, subject to any exceptions noted,
together with the assignment to it of all other assets included in the Trust Fund, receipt of which
is hereby acknowledged. Concurrently with such delivery and in exchange therefor, the Trustee,
pursuant to the written request of the Depositor executed by an officer of the Depositor, has
executed and caused to be authenticated and delivered to or upon the order of the Depositor the
[Certificates in authorized denominations which evidence ownership of the entire Trust Fund].

          (b) The Depositor, concurrently with the execution and delivery hereof, does hereby transfer,
assign, set over and otherwise convey in trust to the Trustee without recourse all the right, title
and interest of the Depositor in and to the REMIC I Regular Interests for the benefit of the
holders of the Regular Certificates and the Class R-II certificates. The Trustee acknowledges
receipt of the REMIC I Regular Interests (each of which are uncertificated) and declares that it
holds and will hold the same in trust for the exclusive use and benefit of the holders of the
Regular Certificates and the Class R-II Certificates. The interests evidenced by the Class R-II
Certificate, together with the Regular Certificates, constitute the entire beneficial ownership
interest in REMIC II.

     Section 2.06. Purposes and Powers of the Trust

     The purpose of the trust, as created hereunder, is to engage in the following activities:

          (a) to sell the Certificates to the Depositor in exchange for the Mortgage Loans;

          (b) to enter into and perform its obligations under this Agreement;

          (c) to engage in those activities that are necessary, suitable or convenient to accomplish the
foregoing or are incidental thereto or connected therewith; and

          (d) subject to compliance with this Agreement, to engage in such other activities as may be
required in connection with conservation of the Trust Fund and the making of distributions to the
Certificateholders.

     The trust is hereby authorized to engage in the foregoing activities. Notwithstanding the
provisions of Section 11.01, the trust shall not engage in any activity other than in connection
with the foregoing or other than as required or authorized by the terms of this Agreement while

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any Certificate is outstanding, and this Section 2.06 may not be amended, without the consent of
the Certificateholders evidencing a majority of the aggregate Voting Rights of the Certificates.

     Section 2.07. Agreement Regarding Ability to Disclose

     The Depositor, the Master Servicer and the Trustee hereby agree that, notwithstanding any
other express or implied agreement to the contrary, any and all Persons, and any of their
respective employees, representatives, and other agents may disclose, immediately upon commencement
of discussions, to any and all Persons, without limitation of any kind, the tax treatment and tax
structure of the transaction and all materials of any kind (including opinions or other tax
analyses) that are provided to any of them relating to such tax treatment and tax structure. For
purposes of this paragraph, the terms “tax,” “tax treatment,” “tax structure,” and “tax benefit”
are defined under Treasury Regulation § 1.6011-4(c).

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ARTICLE III

ADMINISTRATION AND SERVICING

OF MORTGAGE LOANS

     Section 3.01. Master Servicer to Act as Servicer

          (a) The Master Servicer shall service and administer the Mortgage Loans in accordance with the
terms of this Agreement and the respective Mortgage Loans, following such procedures as it would
employ in its good faith business judgment and which are normal and usual in its general mortgage
servicing activities, and shall have full power and authority, acting alone or through Subservicers
as provided in Section 3.02, to do any and all things which it may deem necessary or desirable in
connection with such servicing and administration. Without limiting the generality of the
foregoing, the Master Servicer in its own name or in the name of a Subservicer is hereby authorized
and empowered by the Trustee when the Master Servicer or the Subservicer, as the case may be,
believes it appropriate in its best judgment, to execute and deliver, on behalf of the
Certificateholders and the Trustee or any of them, any and all instruments of satisfaction or
cancellation, or of partial or full release or discharge, or of consent to assumption or
modification in connection with a proposed conveyance, or of assignment of any Mortgage and
Mortgage Note in connection with the repurchase of a Mortgage Loan and all other comparable
instruments, or with respect to the modification or re-recording of a Mortgage for the purpose of
correcting the Mortgage, the subordination of the lien of the Mortgage in favor of a public utility
company or government agency or unit with powers of eminent domain, the taking of a deed in lieu of
foreclosure, the commencement, prosecution or completion of judicial or non-judicial foreclosure,
the conveyance of a Mortgaged Property to the related insurer, the acquisition of any property
acquired by foreclosure or deed in lieu of foreclosure, or the management, marketing and conveyance
of any property acquired by foreclosure or deed in lieu of foreclosure with respect to the Mortgage
Loans and with respect to the Mortgaged Properties. The Master Servicer further is authorized and
empowered by the Trustee, on behalf of the Certificateholders and the Trustee, in its own name or
in the name of the Subservicer, when the Master Servicer or the Subservicer, as the case may be,
believes it is appropriate in its best judgment to register any Mortgage Loan on the MERS® System,
or cause the removal from the registration of any Mortgage Loan on the MERS® System, to execute and
deliver, on behalf of the Trustee and the Certificateholders or any of them, any and all
instruments of assignment and other comparable instruments with respect to such assignment or
re-recording of a Mortgage in the name of MERS, solely as nominee for the Trustee and its
successors and assigns. Any expenses incurred in connection with the actions described in the
preceding sentence shall be borne by the Master Servicer in accordance with Section 3.16(c), with
no right of reimbursement; provided, that if, as a result of MERS discontinuing or becoming unable
to continue operations in connection with the MERS® System, it becomes necessary to remove any
Mortgage Loan from registration on the MERS® System and to arrange for the assignment of the
related Mortgages to the Trustee, then any related expenses shall be reimbursable to the Master
Servicer as set forth in Section 3.10(a)(ii). Notwithstanding the foregoing, subject to Section
3.07(a), the Master Servicer shall not permit any modification with respect to any Mortgage Loan
that would both constitute a sale or exchange of such Mortgage Loan within the
meaning of Section 1001 of the Code and any proposed, temporary or final regulations
promulgated thereunder (other than in connection with a proposed conveyance or assumption of

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such Mortgage Loan that is treated as a Principal Prepayment in Full pursuant to Section 3.13(d)
hereof) and cause any REMIC created hereunder to fail to qualify as a REMIC under the Code. The
Trustee shall furnish the Master Servicer with any powers of attorney and other documents necessary
or appropriate to enable the Master Servicer to service and administer the Mortgage Loans. The
Trustee shall not be liable for any action taken by the Master Servicer or any Subservicer pursuant
to such powers of attorney or other documents. In servicing and administering any Nonsubserviced
Mortgage Loan, the Master Servicer shall, to the extent not inconsistent with this Agreement,
comply with the Program Guide as if it were the originator of such Mortgage Loan and had retained
the servicing rights and obligations in respect thereof.

          (b) In connection with servicing and administering the Mortgage Loans, the Master Servicer and
any Affiliate of the Master Servicer (i) may perform services such as appraisals and brokerage
services that are customarily provided by Persons other than servicers of mortgage loans, and shall
be entitled to reasonable compensation therefor in accordance with Section 3.10 and (ii) may, at
its own discretion and on behalf of the Trustee, obtain credit information in the form of a “credit
score” from a credit repository.

          (c) All costs incurred by the Master Servicer or by Subservicers in effecting the timely
payment of taxes and assessments on the properties subject to the Mortgage Loans shall not, for the
purpose of calculating monthly distributions to the Certificateholders, be added to the amount
owing under the related Mortgage Loans, notwithstanding that the terms of such Mortgage Loan so
permit, and such costs shall be recoverable to the extent permitted by Section 3.10(a)(ii).

          (d) The Master Servicer may enter into one or more agreements in connection with the offering
of pass-through certificates evidencing interests in one or more of the Certificates providing for
the payment by the Master Servicer of amounts received by the Master Servicer as servicing
compensation hereunder and required to cover certain Prepayment Interest Shortfalls on the Mortgage
Loans, which payment obligation will thereafter be an obligation of the Master Servicer hereunder.

          (e) The relationship of the Master Servicer (and of any successor to the Master Servicer) to
the Depositor under this Agreement is intended by the parties to be that of an independent
contractor and not that of a joint venturer, partner or agent.

          (f) The Master Servicer shall comply with the terms of Section 8 of the Assignment Agreement.

     Section 3.02. Subservicing Agreements Between Master Servicer and Subservicers;
Enforcement of Subservicers’ Obligations; Special Servicing

          (a) The Master Servicer may continue in effect Subservicing Agreements entered into by
[_________________] and Subservicers prior to the execution and delivery of this Agreement, and may
enter into new Subservicing Agreements with Subservicers, for the servicing and administration of
all or some of the Mortgage Loans. Each Subservicer shall be either (i) an institution the accounts
of which are insured by the FDIC or (ii) another entity that engages in the business of originating
or servicing mortgage loans, and in either case shall be

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authorized to transact business in the state or states in which the related Mortgaged Properties it
is to service are situated, if and to the extent required by applicable law to enable the
Subservicer to perform its obligations hereunder and under the Subservicing Agreement, and in
either case shall be a Freddie Mac, Fannie Mae or HUD approved mortgage servicer. Each Subservicer
of a Mortgage Loan shall be entitled to receive and retain, as provided in the related Subservicing
Agreement and in Section 3.07, the related Subservicing Fee from payments of interest received on
such Mortgage Loan after payment of all amounts required to be remitted to the Master Servicer in
respect of such Mortgage Loan. For any Mortgage Loan that is a Nonsubserviced Mortgage Loan, the
Master Servicer shall be entitled to receive and retain an amount equal to the Subservicing Fee
from payments of interest. Unless the context otherwise requires, references in this Agreement to
actions taken or to be taken by the Master Servicer in servicing the Mortgage Loans include actions
taken or to be taken by a Subservicer on behalf of the Master Servicer. Each Subservicing Agreement
will be upon such terms and conditions as are generally required by, permitted by or consistent
with the Program Guide and are not inconsistent with this Agreement and as the Master Servicer and
the Subservicer have agreed. With the approval of the Master Servicer, a Subservicer may delegate
its servicing obligations to third-party servicers, but such Subservicer will remain obligated
under the related Subservicing Agreement. The Master Servicer and a Subservicer may enter into
amendments thereto or a different form of Subservicing Agreement, and the form referred to or
included in the Program Guide is merely provided for information and shall not be deemed to limit
in any respect the discretion of the Master Servicer to modify or enter into different Subservicing
Agreements; provided, however, that any such amendments or different forms shall be consistent with
and not violate the provisions of either this Agreement or the Program Guide in a manner which
would materially and adversely affect the interests of the Certificateholders. The Program Guide
and any other Subservicing Agreement entered into between the Master Servicer and any Subservicer
shall require the Subservicer to accurately and fully report its borrower credit files to each of
the Credit Repositories in a timely manner.

          (b) As part of its servicing activities hereunder, the Master Servicer, for the benefit of the
Trustee and the Certificateholders, shall use its best reasonable efforts to enforce the
obligations of each Subservicer under the related Subservicing Agreement and of each Seller under
the related Seller’s Agreement, to the extent that the non-performance of any such obligation would
have a material and adverse effect on a Mortgage Loan, including, without limitation, the
obligation to purchase a Mortgage Loan on account of defective documentation, as described in
Section 2.02, or on account of a breach of a representation or warranty, as described in Section
2.04. Such enforcement, including, without limitation, the legal prosecution of claims,
termination of Subservicing Agreements or Seller’s Agreements, as appropriate, and the pursuit of
other appropriate remedies, shall be in such form and carried out to such an extent and at such
time as the Master Servicer would employ in its good faith business judgment and which are normal
and usual in its general mortgage servicing activities. The Master Servicer shall pay the costs of
such enforcement at its own expense, and shall be reimbursed therefor only (i) from a general
recovery resulting from such enforcement to the extent, if any, that such recovery exceeds all
amounts due in respect of the related Mortgage Loan or (ii) from a specific recovery of costs,
expenses or attorneys fees against the party against whom such enforcement is directed. For
purposes of clarification only, the parties agree that the foregoing is not intended to, and does
not, limit the ability of the Master Servicer to be reimbursed for expenses that are

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incurred in connection with the enforcement of a Seller’s obligations and are reimbursable pursuant
to Section 3.10(a)(vii).

     Section 3.03. Successor Subservicers

     The Master Servicer shall be entitled to terminate any Subservicing Agreement that may exist
in accordance with the terms and conditions of such Subservicing Agreement and without any
limitation by virtue of this Agreement; provided, however, that in the event of termination of any
Subservicing Agreement by the Master Servicer or the Subservicer, the Master Servicer shall either
act as servicer of the related Mortgage Loan or enter into a Subservicing Agreement with a
successor Subservicer which will be bound by the terms of the related Subservicing Agreement. If
the Master Servicer or any Affiliate of [_________________] acts as servicer, it will not assume
liability for the representations and warranties of the Subservicer which it replaces. If the
Master Servicer enters into a Subservicing Agreement with a successor Subservicer, the Master
Servicer shall use reasonable efforts to have the successor Subservicer assume liability for the
representations and warranties made by the terminated Subservicer in respect of the related
Mortgage Loans and, in the event of any such assumption by the successor Subservicer, the Master
Servicer may, in the exercise of its business judgment, release the terminated Subservicer from
liability for such representations and warranties.

     Section 3.04. Liability of the Master Servicer

     Notwithstanding any Subservicing Agreement, any of the provisions of this Agreement relating
to agreements or arrangements between the Master Servicer or a Subservicer or reference to actions
taken through a Subservicer or otherwise, the Master Servicer shall remain obligated and liable to
the Trustee and Certificateholders for the servicing and administering of the Mortgage Loans in
accordance with the provisions of Section 3.01 without diminution of such obligation or liability
by virtue of such Subservicing Agreements or arrangements or by virtue of indemnification from the
Subservicer or the Depositor and to the same extent and under the same terms and conditions as if
the Master Servicer alone were servicing and administering the Mortgage Loans. The Master Servicer
shall be entitled to enter into any agreement with a Subservicer or Seller for indemnification of
the Master Servicer and nothing contained in this Agreement shall be deemed to limit or modify such
indemnification.

     Section 3.05. No Contractual Relationship Between Subservicer and Trustee or
Certificateholders

     Any Subservicing Agreement that may be entered into and any other transactions or services
relating to the Mortgage Loans involving a Subservicer in its capacity as such and not as an
originator shall be deemed to be between the Subservicer and the Master Servicer alone and the
Trustee and Certificateholders shall not be deemed parties thereto and shall have no claims,
rights, obligations, duties or liabilities with respect to the Subservicer in its capacity as such
except as set forth in Section 3.06. The foregoing provision shall not in any way limit a
Subservicer’s obligation to cure an omission or defect or to repurchase a Mortgage Loan as referred
to in Section 2.02 hereof.

     Section 3.06. Assumption or Termination of Subservicing Agreements by Trustee

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          (a) In the event the Master Servicer shall for any reason no longer be the master servicer
(including by reason of an Event of Default), the Trustee, its designee or its successor shall
thereupon assume all of the rights and obligations of the Master Servicer under each Subservicing
Agreement that may have been entered into. The Trustee, its designee or the successor servicer for
the Trustee shall be deemed to have assumed all of the Master Servicer’s interest therein and to
have replaced the Master Servicer as a party to the Subservicing Agreement to the same extent as if
the Subservicing Agreement had been assigned to the assuming party except that the Master Servicer
shall not thereby be relieved of any liability or obligations under the Subservicing Agreement.

          (b) The Master Servicer shall, upon request of the Trustee but at the expense of the Master
Servicer, deliver to the assuming party all documents and records relating to each Subservicing
Agreement and the Mortgage Loans then being serviced and an accounting of amounts collected and
held by it and otherwise use its best efforts to effect the orderly and efficient transfer of each
Subservicing Agreement to the assuming party.

     Section 3.07. Collection of Certain Mortgage Loan Payments; Deposits to Custodial
Account

          (a) The Master Servicer shall make reasonable efforts to collect all payments called for under
the terms and provisions of the Mortgage Loans, and shall, to the extent such procedures shall be
consistent with this Agreement and the terms and provisions of any related Primary Insurance
Policy, follow such collection procedures as it would employ in its good faith business judgment
and which are normal and usual in its general mortgage servicing activities. Consistent with the
foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any
prepayment charge or penalty interest in connection with the prepayment of a Mortgage Loan and (ii)
extend the Due Date for payments due on a Mortgage Loan in accordance with the Program Guide,
provided, however, that the Master Servicer shall first determine that any such waiver or extension
will not impair the coverage of any related Primary Insurance Policy or materially adversely affect
the lien of the related Mortgage. Notwithstanding anything in this Section to the contrary, the
Master Servicer or any Subservicer shall not enforce any prepayment charge to the extent that such
enforcement would violate any applicable law. In the event of any such arrangement, the Master
Servicer shall make timely P&I Advances on the related Mortgage Loan during the scheduled period in
accordance with the amortization schedule of such Mortgage Loan without modification thereof by
reason of such arrangements unless otherwise agreed to by the Holders of the Classes of
Certificates affected thereby; provided, however, that no such extension shall be made if any P&I
Advance would be a Nonrecoverable Advance. Consistent with the terms of this Agreement, the Master
Servicer may also 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 the Master Servicer’s determination such waiver, modification, postponement or
indulgence is not materially adverse to the interests of the Certificateholders (taking into
account any estimated Realized Loss that might result absent such action), provided, however, that
the Master Servicer
may not modify materially or permit any Subservicer to modify any Mortgage Loan, including
without limitation any modification that would change the Mortgage Rate, forgive the payment of any
principal or interest (unless in connection with the liquidation of the related Mortgage Loan or
except in connection with prepayments to the extent that such reamortization is not

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inconsistent with the terms of the Mortgage Loan), capitalize any amounts owing on the Mortgage
Loan by adding such amount to the outstanding principal balance of the Mortgage Loan, or extend the
final maturity date of such Mortgage Loan, unless such Mortgage Loan is in default or, in the
judgment of the Master Servicer, such default is reasonably foreseeable. No such modification
shall reduce the Mortgage Rate on a Mortgage Loan below the sum of the rates at which the Servicing
Fee and the Subservicing Fee accrue. Also, the addition of any amount owing on a Mortgage Loan to
the outstanding principal balance of such Mortgage Loan shall be implemented in accordance with the
Program Guide and may be implemented only by Subservicers that have been approved by the Master
Servicer for such purposes. Any modification made pursuant to any of the four preceding sentences
that is not made pursuant to the Home Affordable Modification Program established pursuant to the
Emergency Economic Stabilization Act of 2008, as amended, as determined by the [Depositor][Company]
or the Master Servicer, shall only be permitted if the [Depositor][Company] or the Master Servicer
obtains and delivers to the Trustee an Opinion of Counsel, addressed to the Trustee and the Master
Servicer, to the effect that such modification will not result in the imposition of taxes on
“prohibited transactions” as defined in Section 860F of the Code or cause any REMIC formed under
the Pooling and Servicing Agreement to fail to qualify as a REMIC (for federal (or any applicable
State or local) income tax purposes) at any time that any Certificates are outstanding. The
Trustee shall have no obligation to determine whether any such Opinion of Counsel is required with
respect to the modification of any Mortgage Loans. In connection with any Curtailment of a
Mortgage Loan, the Master Servicer, to the extent not inconsistent with the terms of the Mortgage
Note and local law and practice, may permit the Mortgage Loan to be re-amortized such that the
Monthly Payment is recalculated as an amount that will fully amortize the remaining principal
balance thereof by the original maturity date based on the original Mortgage Rate; provided, that
such reamortization shall not be permitted if it would constitute a reissuance of the Mortgage Loan
for federal income tax purposes.

          (b) The Master Servicer shall establish and maintain a Custodial Account in which the Master
Servicer shall deposit or cause to be deposited on a daily basis, except as otherwise specifically
provided herein, the following payments and collections remitted by Subservicers or received by it
in respect of the Mortgage Loans subsequent to the Cut-off Date (other than in respect of principal
and interest on the Mortgage Loans due on or before the Cut-off Date):

               (i) All payments on account of principal, including Principal Prepayments made by Mortgagors
on the Mortgage Loans and the principal component of any Subservicer Advance or of any REO Proceeds
received in connection with an REO Property for which an REO Disposition has occurred;

               (ii) All payments on account of interest at the Adjusted Mortgage Rate on the Mortgage Loans,
including the interest component of any Subservicer Advance or of any REO Proceeds received in
connection with an REO Property for which an REO Disposition has occurred;

               (iii) Insurance Proceeds, Subsequent Recoveries and Liquidation Proceeds (net of any related
expenses of the Subservicer);

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               (iv) All proceeds of any Mortgage Loans purchased pursuant to Section 2.02, 2.03, 2.04 or 4.07
(including amounts received from [_________________] pursuant to the last paragraph of Section 4 of
the Assignment Agreement in respect of any liability, penalty or expense that resulted from a
breach of the representation and warranty set forth in clause 4(w) of the Assignment Agreement) and
all amounts required to be deposited in connection with the substitution of a Qualified Substitute
Mortgage Loan pursuant to Section 2.03 or 2.04; and

               (v) Any amounts required to be deposited pursuant to Section 3.07(c) and any payments or
collections received in the nature of prepayment charges.

     The foregoing requirements for deposit in the Custodial Account shall be exclusive, it being
understood and agreed that, without limiting the generality of the foregoing, payments on the
Mortgage Loans which are not part of the Trust Fund (consisting of payments in respect of principal
and interest on the Mortgage Loans received prior to the Cut-off Date) and payments or collections
consisting of late payment charges or assumption fees may but need not be deposited by the Master
Servicer in the Custodial Account. In the event any amount not required to be deposited in the
Custodial Account is so deposited, the Master Servicer may at any time withdraw such amount from
the Custodial Account, any provision herein to the contrary notwithstanding. Further, the Master
Servicer shall, not less frequently than every two Business Days, remove from the Custodial Account
any funds relating to Mortgage Loans that are owned by the Master Servicer.

     With respect to Insurance Proceeds, Liquidation Proceeds, REO Proceeds, Subsequent Recoveries
and the proceeds of the purchase of any Mortgage Loan pursuant to Sections 2.02, 2.03, 2.04 and
4.07 received in any calendar month, the Master Servicer may elect to treat such amounts as
included in the Available Distribution Amount for the Distribution Date in the month of receipt,
but is not obligated to do so. If the Master Servicer so elects, such amounts will be deemed to
have been received (and any related Realized Loss shall be deemed to have occurred) on the last day
of the month prior to the receipt thereof.

          (c) The Master Servicer shall use its best efforts to cause the institution maintaining the
Custodial Account to invest the funds in the Custodial Account attributable to the Mortgage Loans
in Permitted Investments which shall mature not later than the Certificate Account Deposit Date
next following the date of such investment (with the exception of the Amount Held for Future
Distribution) and which shall not be sold or disposed of prior to their maturities. All income and
gain realized from any such investment shall be for the benefit of the Master Servicer as
additional servicing compensation and shall be subject to its withdrawal or order from time to
time. The amount of any losses incurred in respect of any such investments attributable to the
investment of amounts in respect of the Mortgage Loans shall be deposited in the Custodial Account
by the Master Servicer out of its own funds immediately as realized.

          (d) The Master Servicer shall give notice to the Trustee and the Depositor of any change in
the location of the Custodial Account and the location of the Certificate Account prior to the use
thereof.

     Section 3.08. Subservicing Accounts; Servicing Accounts

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          (a) In those cases where a Subservicer is servicing a Mortgage Loan pursuant to a Subservicing
Agreement, the Master Servicer shall cause the Subservicer, pursuant to the Subservicing Agreement,
to establish and maintain one or more Subservicing Accounts which shall be an Eligible Account or,
if such account is not an Eligible Account, shall generally satisfy the requirements of the Program
Guide and be otherwise acceptable to the Master Servicer and each Rating Agency. The Subservicer
will be required thereby to deposit into the Subservicing Account on a daily basis all proceeds of
Mortgage Loans received by the Subservicer, less its Subservicing Fees and unreimbursed Subservicer
Advances, Servicing Advances and expenses, to the extent permitted by the Subservicing Agreement.
If the Subservicing Account is not an Eligible Account, the Master Servicer shall be deemed to have
received such monies upon receipt thereof by the Subservicer. The Subservicer shall not be required
to deposit in the Subservicing Account payments or collections in the nature of late charges or
assumption fees, or payments or collections received in the nature of prepayment charges to the
extent that the Subservicer is entitled to retain such amounts pursuant to the Subservicing
Agreement. On or before the date specified in the Program Guide, but in no event later than the
Determination Date, the Master Servicer shall cause the Subservicer, pursuant to the Subservicing
Agreement, to remit to the Master Servicer for deposit in the Custodial Account all funds held in
the Subservicing Account with respect to each Mortgage Loan serviced by such Subservicer that are
required to be remitted to the Master Servicer. The Subservicer will also be required, pursuant to
the Subservicing Agreement, to make Subservicer Advances on such scheduled date of remittance
amounts equal to any scheduled monthly installments of principal and interest less its Subservicing
Fees on any Mortgage Loans for which payment was not received by the Subservicer. This obligation
to advance with respect to each Mortgage Loan will continue up to and including the first of the
month following the date on which the related Mortgaged Property is sold at a foreclosure sale or
is acquired by the Trust Fund by deed in lieu of foreclosure or otherwise. All such advances
received by the Master Servicer shall be deposited promptly by it in the Custodial Account.

          (b) The Subservicer may also be required, pursuant to the Subservicing Agreement, to remit to
the Master Servicer for deposit in the Custodial Account interest at the Adjusted Mortgage Rate (or
Modified Net Mortgage Rate plus the rate per annum at which the Servicing Fee, if any, accrues in
the case of a Modified Mortgage Loan) on any Curtailment received by such Subservicer in respect of
a Mortgage Loan from the related Mortgagor during any month that is to be applied by the
Subservicer to reduce the unpaid principal balance of the related Mortgage Loan as of the first day
of such month, from the date of application of such Curtailment to the first day of the following
month. Any amounts paid by a Subservicer pursuant to the preceding sentence shall be for the
benefit of the Master Servicer as additional servicing compensation and shall be subject to its
withdrawal or order from time to time pursuant to Sections 3.10(a)(iv) and (v).

          (c) In addition to the Custodial Account and the Certificate Account, the Master Servicer
shall for any Nonsubserviced Mortgage Loan, and shall cause the Subservicers for Subserviced
Mortgage Loans to, establish and maintain one or more Servicing Accounts and
deposit and retain therein all collections from the Mortgagors (or advances from Subservicers)
for the payment of taxes, assessments, hazard insurance premiums, Primary Insurance Policy
premiums, if applicable, or comparable items for the account of the Mortgagors. Each Servicing
Account shall satisfy the requirements for a Subservicing Account and, to the extent permitted

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by the Program Guide or as is otherwise acceptable to the Master Servicer, may also function as a
Subservicing Account. Withdrawals of amounts related to the Mortgage Loans from the Servicing
Accounts may be made only to effect timely payment of taxes, assessments, hazard insurance
premiums, Primary Insurance Policy premiums, if applicable, or comparable items, to reimburse the
Master Servicer or Subservicer out of related collections for any payments made pursuant to
Sections 3.11 (with respect to the Primary Insurance Policy) and 3.12(a) (with respect to hazard
insurance), to refund to any Mortgagors any sums as may be determined to be overages, to pay
interest, if required, to Mortgagors on balances in the Servicing Account or to clear and terminate
the Servicing Account at the termination of this Agreement in accordance with Section 9.01 or in
accordance with the Program Guide. As part of its servicing duties, the Master Servicer shall, and
the Subservicers will, pursuant to the Subservicing Agreements, be required to pay to the
Mortgagors interest on funds in this account to the extent required by law.

          (d) The Master Servicer shall make Servicing Advances to pay taxes, assessments, hazard
insurance premiums, Primary Insurance Policy premiums, if applicable, or comparable items on all
Mortgage Loans that are not timely paid by the Mortgagors or advanced by the Subservicers on the
date when the tax, premium or other cost for which such payment is intended is due, but the Master
Servicer shall be required so to advance only to the extent that such Servicing Advances, in the
good faith judgment of the Master Servicer, would not be Nonrecoverable Advances.

     Section 3.09. Access to Certain Documentation and Information Regarding the
Mortgage Loans

          In the event that compliance with this Section 3.09 shall make any Class of Certificates legal
for investment by federally insured savings and loan associations, the Master Servicer shall
provide, or cause the Subservicers to provide, to the Trustee, the Office of Thrift Supervision or
the FDIC and the supervisory agents and examiners thereof access to the documentation regarding the
Mortgage Loans required by applicable regulations of the Office of Thrift Supervision, such access
being afforded without charge but only upon reasonable request and during normal business hours at
the offices designated by the Master Servicer. The Master Servicer shall permit such
representatives to photocopy any such documentation and shall provide equipment for that purpose at
a charge reasonably approximating the cost of such photocopying to the Master Servicer.

     Section 3.10. Permitted Withdrawals from the Custodial Account

          (a) The Master Servicer may, from time to time as provided herein, make withdrawals from the
Custodial Account of amounts on deposit therein pursuant to Section 3.07 that are attributable to
the Mortgage Loans for the following purposes:

               (i) to make deposits into the Certificate Account in the amounts and in the manner provided
for in Section 4.01;

               (ii) to reimburse itself or the related Subservicer for previously unreimbursed Advances,
Subservicer Advances or other expenses made pursuant to Sections 3.01, 3.07(a), 3.08, 3.11,
3.12(a), 3.14 and 4.04 or otherwise reimbursable pursuant to the terms

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of this Agreement, such withdrawal right being limited to amounts received on the related Mortgage
Loans (including, for this purpose, REO Proceeds, Insurance Proceeds, Liquidation Proceeds and
proceeds from the purchase of a Mortgage Loan pursuant to Section 2.02, 2.03, 2.04 or 4.07) which
represent (A) Late Collections of Monthly Payments for which any such advance was made in the case
of Subservicer Advances or Advances pursuant to Section 4.04 and (B) recoveries of amounts in
respect of which such advances were made in the case of Servicing Advances;

               (iii) to pay to itself or the related Subservicer (if not previously retained by such
Subservicer) out of each payment received by the Master Servicer on account of interest on a
Mortgage Loan as contemplated by Sections 3.14 and 3.16, an amount equal to that remaining portion
of any such payment as to interest (but not in excess of the Servicing Fee and the Subservicing
Fee, if not previously retained) which, when deducted, will result in the remaining amount of such
interest being interest at a rate per annum equal to the Net Mortgage Rate (or Modified Net
Mortgage Rate in the case of a Modified Mortgage Loan) on the amount specified in the amortization
schedule of the related Mortgage Loan as the principal balance thereof at the beginning of the
period respecting which such interest was paid after giving effect to any previous Curtailments;

               (iv) to pay to itself as additional servicing compensation any interest or investment income
earned on funds and other property deposited in or credited to the Custodial Account that it is
entitled to withdraw pursuant to Section 3.07(c);

               (v) to pay to itself as additional servicing compensation any Foreclosure Profits, and any
amounts remitted by Subservicers as interest in respect of Curtailments pursuant to Section
3.08(b);

               (vi) to pay to itself, a Subservicer, a Seller, [_________________], the Depositor or any
other appropriate Person, as the case may be, with respect to each Mortgage Loan or property
acquired in respect thereof that has been purchased or otherwise transferred pursuant to Section
2.02, 2.03, 2.04, 4.07 or 9.01, all amounts received thereon and not required to be distributed to
Certificateholders as of the date on which the related Stated Principal Balance or Purchase Price
is determined;

               (vii) to reimburse itself or the related Subservicer for (1) any Nonrecoverable Advance, (2)
any P&I Advance made with respect to a Mortgage Loan that is 90 or more days Delinquent or (3) any
made in connection with a modified Mortgage Loan that is in default or, in the judgment of the
Master Servicer, default is reasonably foreseeable pursuant to Section 3.07(a), to the extent the
amount of the Advance was added to the Stated Principal Balance of the Mortgage Loan in a prior
calendar month;

               (viii) to reimburse itself or the Depositor for any advance made and expenses incurred by it
or the Depositor, to the extent such advances or expenses are reimburseable to it or the Depositor
pursuant to this Agreement (including, but not limited to, amounts reimburseable (A) pursuant to
Section 3.01(a), 3.01(b), 3.11, 3.13, 3.14(c), 6.03 or 10.01 and (B) in connection with enforcing
any repurchase, substitution or indemnification

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obligation of any Seller (other than the Depositor or an Affiliate of the Depositor) pursuant to
the related Seller’s Agreement);

               (ix) to reimburse itself for amounts expended by it (a) pursuant to Section 3.14 in good faith
in connection with the restoration of property damaged by an Uninsured Cause, and (b) in connection
with the liquidation of a Mortgage Loan or disposition of an REO Property to the extent not
otherwise reimbursed pursuant to clause (ii) or (viii) above; and

               (x) to withdraw any amount deposited in the Custodial Account that was not required to be
deposited therein pursuant to Section 3.07, including any payoff fees or penalties or any other
additional amounts payable to the Master Servicer or Subservicer pursuant to the terms of the
Mortgage Note.

          (b) Since, in connection with withdrawals pursuant to clauses (ii), (iii), (v) and (vi), the
Master Servicer’s entitlement thereto is limited to collections or other recoveries on the related
Mortgage Loan, the Master Servicer shall keep and maintain separate accounting, on a Mortgage Loan
by Mortgage Loan basis, for the purpose of justifying any withdrawal from the Custodial Account
pursuant to such clauses.

     Section 3.11. Maintenance of Primary Insurance Coverage

          (a) The Master Servicer shall not take, or permit any Subservicer to take, any action which
would result in noncoverage under any applicable Primary Insurance Policy of any loss which, but
for the actions of the Master Servicer or Subservicer, would have been covered thereunder. To the
extent coverage is available, the Master Servicer shall keep or cause to be kept in full force and
effect each such Primary Insurance Policy until the principal balance of the related Mortgage Loan
secured by a Mortgaged Property is reduced to 80% or less of the Appraised Value at origination in
the case of such a Mortgage Loan having a Loan-to-Value Ratio at origination in excess of 80%,
provided that such Primary Insurance Policy was in place as of the Cut-off Date and the Master
Servicer had knowledge of such Primary Insurance Policy. The Master Servicer shall not cancel or
refuse to renew any such Primary Insurance Policy applicable to a Nonsubserviced Mortgage Loan, or
consent to any Subservicer canceling or refusing to renew any such Primary Insurance Policy
applicable to a Mortgage Loan subserviced by it, that is in effect at the date of the initial
issuance of the Certificates and is required to be kept in force hereunder unless the replacement
Primary Insurance Policy for such canceled or non-renewed policy is maintained with an insurer
whose claims-paying ability is acceptable to each Rating Agency for mortgage pass-through
certificates having a rating equal to or better than the lower of the then-current rating or the
rating assigned to the Certificates as of the Closing Date by such Rating Agency.

          (b) In connection with its activities as administrator and servicer of the Mortgage Loans, the
Master Servicer agrees to present or to cause the related Subservicer to present, on behalf of the
Master Servicer, the Subservicer, if any, the Trustee and Certificateholders, claims to the insurer
under any Primary Insurance Policies, in a timely manner in accordance with such policies, and, in
this regard, to take or cause to be taken such reasonable action as shall be necessary to permit
recovery under any Primary Insurance Policies

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respecting defaulted Mortgage Loans. Pursuant to Section 3.07, any Insurance Proceeds collected by
or remitted to the Master Servicer under any Primary Insurance Policies shall be deposited in the
Custodial Account, subject to withdrawal pursuant to Section 3.10.

     Section 3.12. Maintenance of Fire Insurance and Omissions and Fidelity
Coverage

          (a) The Master Servicer shall cause to be maintained for each Mortgage Loan fire insurance
with extended coverage in an amount which is equal to the lesser of the principal balance owing on
such Mortgage Loan or 100% of the insurable value of the improvements; provided, however, that such
coverage may not be less than the minimum amount required to fully compensate for any loss or
damage on a replacement cost basis. To the extent it may do so without breaching the related
Subservicing Agreement, the Master Servicer shall replace any Subservicer that does not cause such
insurance, to the extent it is available, to be maintained. The Master Servicer shall also cause to
be maintained on property acquired upon foreclosure, or deed in lieu of foreclosure, of any
Mortgage Loan, fire insurance with extended coverage in an amount which is at least equal to the
amount necessary to avoid the application of any co-insurance clause contained in the related
hazard insurance policy. Pursuant to Section 3.07, any amounts collected by the Master Servicer
under any such policies (other than amounts to be applied to the restoration or repair of the
related Mortgaged Property or property thus acquired or amounts released to the Mortgagor in
accordance with the Master Servicer’s normal servicing procedures) shall be deposited in the
Custodial Account, subject to withdrawal pursuant to Section 3.10. Any cost incurred by the Master
Servicer in maintaining any such insurance shall not, for the purpose of calculating monthly
distributions to Certificateholders, be added to the amount owing under the Mortgage Loan,
notwithstanding that the terms of the Mortgage Loan so permit. Such costs shall be recoverable by
the Master Servicer out of related late payments by the Mortgagor or out of Insurance Proceeds and
Liquidation Proceeds to the extent permitted by Section 3.10. It is understood and agreed that no
earthquake or other additional insurance is to be required of any Mortgagor or maintained on
property acquired in respect of a Mortgage Loan other than pursuant to such applicable laws and
regulations as shall at any time be in force and as shall require such additional insurance.
Whenever the improvements securing a Mortgage Loan are located at the time of origination of such
Mortgage Loan in a federally designated special flood hazard area, the Master Servicer shall cause
flood insurance (to the extent available) to be maintained in respect thereof. Such flood insurance
shall be in an amount equal to the lesser of (i) the amount required to compensate for any loss or
damage to the Mortgaged Property on a replacement cost basis and (ii) the maximum amount of such
insurance available for the related Mortgaged Property under the national flood insurance program
(assuming that the area in which such Mortgaged Property is located is participating in such
program).

     In the event that the Master Servicer shall obtain and maintain a blanket fire insurance
policy with extended coverage insuring against hazard losses on all of the Mortgage Loans, it shall
conclusively be deemed to have satisfied its obligations as set forth in the first sentence of this
Section 3.12(a), it being understood and agreed that such policy may contain a deductible clause,
in which case the Master Servicer shall, in the event that there shall not have been maintained on
the related Mortgaged Property a policy complying with the first sentence of this Section 3.12(a)
and there shall have been a loss which would have been covered by such policy,
deposit in the Certificate Account the amount not otherwise payable under the blanket policy
because of such deductible clause. Any such deposit by the Master Servicer shall be made on the

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Certificate Account Deposit Date next preceding the Distribution Date which occurs in the month
following the month in which payments under any such policy would have been deposited in the
Custodial Account. In connection with its activities as administrator and servicer of the Mortgage
Loans, the Master Servicer agrees to present, on behalf of itself, the Trustee and
Certificateholders, claims under any such blanket policy.

          (b) The Master Servicer shall obtain and maintain at its own expense and keep in full force
and effect throughout the term of this Agreement a blanket fidelity bond and an errors and
omissions insurance policy covering the Master Servicer’s officers and employees and other persons
acting on behalf of the Master Servicer in connection with its activities under this Agreement. The
amount of coverage shall be at least equal to the coverage that would be required by Fannie Mae or
Freddie Mac, whichever is greater, with respect to the Master Servicer if the Master Servicer were
servicing and administering the Mortgage Loans for Fannie Mae or Freddie Mac. In the event that any
such bond or policy ceases to be in effect, the Master Servicer shall obtain a comparable
replacement bond or policy from an issuer or insurer, as the case may be, meeting the requirements,
if any, of the Program Guide and acceptable to the Depositor. Coverage of the Master Servicer under
a policy or bond obtained by an Affiliate of the Master Servicer and providing the coverage
required by this Section 3.12(b) shall satisfy the requirements of this Section 3.12(b).

     Section 3.13. Enforcement of Due-on-Sale Clauses; Assumption and Modification
Agreements; Certain Assignments

          (a) When any Mortgaged Property is conveyed by the Mortgagor, the Master Servicer or
Subservicer, to the extent it has knowledge of such conveyance, shall enforce any due-on-sale
clause contained in any Mortgage Note or Mortgage, to the extent permitted under applicable law and
governmental regulations, but only to the extent that such enforcement will not adversely affect or
jeopardize coverage under any Required Insurance Policy or otherwise adversely affect the interests
of the Certificateholders. Notwithstanding the foregoing:

               (i) the Master Servicer shall not be deemed to be in default under this Section 3.13(a) by
reason of any transfer or assumption which the Master Servicer is restricted by law from
preventing; and

               (ii) if the Master Servicer determines that it is reasonably likely that any Mortgagor will
bring, or if any Mortgagor does bring, legal action to declare invalid or otherwise avoid
enforcement of a due-on-sale clause contained in any Mortgage Note or Mortgage, the Master Servicer
shall not be required to enforce the due-on-sale clause or to contest such action.

          (b) Subject to the Master Servicer’s duty to enforce any due-on-sale clause to the extent set
forth in Section 3.13(a), in any case in which a Mortgaged Property is to be conveyed to a Person
by a Mortgagor, and such Person is to enter into an assumption or modification agreement or
supplement to the Mortgage Note or Mortgage which requires the signature of the Trustee, or if an
instrument of release signed by the Trustee is required releasing the Mortgagor from liability on
the Mortgage Loan, the Master Servicer is authorized, subject to the requirements of the sentence
next following, to execute and deliver, on behalf of the Trustee,

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the assumption agreement with the Person to whom the Mortgaged Property is to be conveyed and such
modification agreement or supplement to the Mortgage Note or Mortgage or other instruments as are
reasonable or necessary to carry out the terms of the Mortgage Note or Mortgage or otherwise to
comply with any applicable laws regarding assumptions or the transfer of the Mortgaged Property to
such Person; provided, however, none of such terms and requirements shall both constitute a
“significant modification” effecting an exchange or reissuance of such Mortgage Loan under the Code
(or final, temporary or proposed Treasury regulations promulgated thereunder) and cause any REMIC
created hereunder to fail to qualify as a REMIC under the Code or the imposition of any tax on
“prohibited transactions” or “contributions” after the Startup Date under the REMIC Provisions. The
Master Servicer shall execute and deliver such documents only if it reasonably determines that (i)
its execution and delivery thereof will not conflict with or violate any terms of this Agreement or
cause the unpaid balance and interest on the Mortgage Loan to be uncollectible in whole or in part,
(ii) any required consents of insurers under any Required Insurance Policies have been obtained and
(iii) subsequent to the closing of the transaction involving the assumption or transfer (A) the
Mortgage Loan will continue to be secured by a first mortgage lien pursuant to the terms of the
Mortgage (or, with respect to any junior lien, a junior lien of the same priority in relation to
any senior lien on such Mortgage Loan), (B) such transaction will not adversely affect the coverage
under any Required Insurance Policies, (C) the Mortgage Loan will fully amortize over the remaining
term thereof, (D) no material term of the Mortgage Loan (including the interest rate on the
Mortgage Loan) will be altered nor will the term of the Mortgage Loan be changed and (E) if the
seller/transferor of the Mortgaged Property is to be released from liability on the Mortgage Loan,
the buyer/transferee of the Mortgaged Property would be qualified to assume the Mortgage Loan based
on generally comparable credit quality and such release will not (based on the Master Servicer’s or
Subservicer’s good faith determination) adversely affect the collectability of the Mortgage Loan.
Upon receipt of appropriate instructions from the Master Servicer in accordance with the foregoing,
the Trustee shall execute any necessary instruments for such assumption or substitution of
liability as directed by the Master Servicer. Upon the closing of the transactions contemplated by
such documents, the Master Servicer shall cause the originals or true and correct copies of the
assumption agreement, the release (if any), or the modification or supplement to the Mortgage Note
or Mortgage to be delivered to the Trustee or the Custodian and deposited with the Mortgage File
for such Mortgage Loan. Any fee collected by the Master Servicer or such related Subservicer for
entering into an assumption or substitution of liability agreement will be retained by the Master
Servicer or such Subservicer as additional servicing compensation.

          (c) The Master Servicer or the related Subservicer, as the case may be, shall be entitled to
approve a request from a Mortgagor for a partial release of the related Mortgaged Property, the
granting of an easement thereon in favor of another Person, any alteration or demolition of the
related Mortgaged Property or other similar matters if it has determined, exercising its good faith
business judgment in the same manner as it would if it were the owner of the related Mortgage Loan,
that the security for, and the timely and full collectability of, such Mortgage Loan would not be
adversely affected thereby and that any REMIC created hereunder would not fail to continue to
qualify as a REMIC under the Code as a result thereof and (subject to Section 10.01(f)) that no tax
on “prohibited transactions” or “contributions” after the Startup Date would be imposed on any
REMIC created hereunder as a result thereof. Any fee collected

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by the Master Servicer or the related Subservicer for processing such a request will be retained by
the Master Servicer or such Subservicer as additional servicing compensation.

          (d) Subject to any other applicable terms and conditions of this Agreement, the Trustee and
Master Servicer shall be entitled to approve an assignment in lieu of satisfaction with respect to
any Mortgage Loan, provided the obligee with respect to such Mortgage Loan following such proposed
assignment provides the Trustee and Master Servicer with a “Lender Certification for Assignment of
Mortgage Loan” in the form attached hereto as Exhibit M, in form and substance satisfactory to the
Trustee and Master Servicer, providing the following: (i) that the Mortgage Loan is secured by
Mortgaged Property located in a jurisdiction in which an assignment in lieu of satisfaction is
required to preserve lien priority, minimize or avoid mortgage recording taxes or otherwise comply
with, or facilitate a refinancing under, the laws of such jurisdiction; (ii) that the substance of
the assignment is, and is intended to be, a refinancing of such Mortgage Loan and that the form of
the transaction is solely to comply with, or facilitate the transaction under, such local laws;
(iii) that the Mortgage Loan following the proposed assignment will have a rate of interest at
least 0.25% below or above the rate of interest on such Mortgage Loan prior to such proposed
assignment; and (iv) that such assignment is at the request of the borrower under the related
Mortgage Loan. Upon approval of an assignment in lieu of satisfaction with respect to any Mortgage
Loan, the Master Servicer shall receive cash in an amount equal to the unpaid principal balance of
and accrued interest on such Mortgage Loan and the Master Servicer shall treat such amount as a
Principal Prepayment in Full with respect to such Mortgage Loan for all purposes hereof.

     Section 3.14. Realization Upon Defaulted Mortgage Loans

          (a) The Master Servicer shall foreclose upon or otherwise comparably convert (which may
include an REO Acquisition) 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 pursuant to Section 3.07. Alternatively, the Master Servicer may
take other actions in respect of a defaulted Mortgage Loan, which may include (i) accepting a short
sale (a payoff of the Mortgage Loan for an amount less than the total amount contractually owed in
order to facilitate a sale of the Mortgaged Property by the Mortgagor) or permitting a short
refinancing (a payoff of the Mortgage Loan for an amount less than the total amount contractually
owed in order to facilitate refinancing transactions by the Mortgagor not involving a sale of the
Mortgaged Property), (ii) arranging for a repayment plan or (iii) agreeing to a modification in
accordance with Section 3.07. In connection with such foreclosure or other conversion or action,
the Master Servicer shall, consistent with Section 3.11, follow such practices and procedures as it
shall deem necessary or advisable, as shall be normal and usual in its general mortgage servicing
activities and as shall be required or permitted by the Program Guide; provided that the Master
Servicer shall not be liable in any respect hereunder if the Master Servicer is acting in
connection with any such foreclosure or other conversion or action in a manner that is consistent
with the provisions of this Agreement. The Master Servicer, however, shall not be required to
expend its own funds or incur other reimbursable charges in connection with any foreclosure, or
attempted foreclosure which is not completed, or towards the correction of any default on a related
senior mortgage loan, or
towards the restoration of any property unless it shall determine (i) that such restoration
and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Holders of

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Certificates of one or more Classes after reimbursement to itself for such expenses or charges and
(ii) that such expenses and charges will be recoverable to it through Liquidation Proceeds,
Insurance Proceeds, or REO Proceeds (respecting which it shall have priority for purposes of
withdrawals from the Custodial Account pursuant to Section 3.10, whether or not such expenses and
charges are actually recoverable from related Liquidation Proceeds, Insurance Proceeds or REO
Proceeds). In the event of such a determination by the Master Servicer pursuant to this Section
3.14(a), the Master Servicer shall be entitled to reimbursement of its funds so expended pursuant
to Section 3.10.

     In addition, the Master Servicer may pursue any remedies that may be available in connection
with a breach of a representation and warranty with respect to any such Mortgage Loan in accordance
with Sections 2.03 and 2.04. However, the Master Servicer is not required to continue to pursue
both foreclosure (or similar remedies) with respect to the Mortgage Loans and remedies in
connection with a breach of a representation and warranty if the Master Servicer determines in its
reasonable discretion that one such remedy is more likely to result in a greater recovery as to the
Mortgage Loan. Upon the occurrence of a Cash Liquidation or REO Disposition, following the deposit
in the Custodial Account of all Insurance Proceeds, Liquidation Proceeds and other payments and
recoveries referred to in the definition of “Cash Liquidation” or “REO Disposition,” as applicable,
upon receipt by the Trustee of written notification of such deposit signed by a Servicing Officer,
the Trustee or any Custodian, as the case may be, shall release to the Master Servicer the related
Custodial File and the Trustee shall execute and deliver such instruments of transfer or assignment
prepared by the Master Servicer, in each case without recourse, as shall be necessary to vest in
the Master Servicer or its designee, as the case may be, the related Mortgage Loan, and thereafter
such Mortgage Loan shall not be part of the Trust Fund. Notwithstanding the foregoing or any other
provision of this Agreement, in the Master Servicer’s sole discretion with respect to any defaulted
Mortgage Loan or REO Property as to either of the following provisions, (i) a Cash Liquidation or
REO Disposition may be deemed to have occurred if substantially all amounts expected by the Master
Servicer to be received in connection with the related defaulted Mortgage Loan or REO Property have
been received, and (ii) for purposes of determining the amount of any Liquidation Proceeds,
Insurance Proceeds, REO Proceeds or other unscheduled collections or the amount of any Realized
Loss, the Master Servicer may take into account minimal amounts of additional receipts expected to
be received or any estimated additional liquidation expenses expected to be incurred in connection
with the related defaulted Mortgage Loan or REO Property.

          (b) In the event that title to any Mortgaged Property is acquired by the Trust Fund as an REO
Property by foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale shall be
issued to the Trustee or to its nominee on behalf of Certificateholders. Notwithstanding any such
acquisition of title and cancellation of the related Mortgage Loan, such REO Property shall (except
as otherwise expressly provided herein) be considered to be an Outstanding Mortgage Loan held in
the Trust Fund until such time as the REO Property shall be sold. Consistent with the foregoing for
purposes of all calculations hereunder so long as such REO Property shall be considered to be an
Outstanding Mortgage Loan it shall be assumed that, notwithstanding that the indebtedness evidenced
by the related Mortgage Note shall have been discharged, such Mortgage Note and the related
amortization schedule in effect at the time of any such acquisition of title (after giving effect
to any previous Curtailments and before any

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adjustment thereto by reason of any bankruptcy or similar proceeding or any moratorium or similar
waiver or grace period) remain in effect.

          (c) In the event that the Trust Fund acquires any REO Property as aforesaid or otherwise in
connection with a default or imminent default on a Mortgage Loan, the Master Servicer on behalf of
the Trust Fund shall dispose of such REO Property as soon as practicable, giving due consideration
to the interests of the Certificateholders, but in all cases, within three full years after the
taxable year of its acquisition by the Trust Fund for purposes of Section 860G(a)(8) of the Code
(or such shorter period as may be necessary under applicable state (including any state in which
such property is located) law to maintain the status of each REMIC created hereunder as a REMIC
under applicable state law and avoid taxes resulting from such property failing to be foreclosure
property under applicable state law) or, at the expense of the Trust Fund, request, more than 60
days before the day on which such grace period would otherwise expire, an extension of such grace
period unless the Master Servicer (subject to Section 10.01(f)) obtains for the Trustee an Opinion
of Counsel, addressed to the Trustee and the Master Servicer, to the effect that the holding by the
Trust Fund of such REO Property subsequent to such period will not result in the imposition of
taxes on “prohibited transactions” as defined in Section 860F of the Code or cause any REMIC
created hereunder to fail to qualify as a REMIC (for federal (or any applicable State or local)
income tax purposes) at any time that any Certificates are outstanding, in which case the Trust
Fund may continue to hold such REO Property (subject to any conditions contained in such Opinion of
Counsel). The Master Servicer shall be entitled to be reimbursed from the Custodial Account for any
costs incurred in obtaining such Opinion of Counsel, as provided in Section 3.10. Notwithstanding
any other provision of this Agreement, no REO Property acquired by the Trust Fund shall be rented
(or allowed to continue to be rented) or otherwise used by or on behalf of the Trust Fund in such a
manner or pursuant to any terms that would (i) cause such REO Property to fail to qualify as
“foreclosure property” within the meaning of Section 860G(a)(8) of the Code or (ii) subject any
REMIC created hereunder to the imposition of any federal income taxes on the income earned from
such REO Property, including any taxes imposed by reason of Section 860G(c) of the Code, unless the
Master Servicer has agreed to indemnify and hold harmless the Trust Fund with respect to the
imposition of any such taxes.

          (d) The proceeds of any Cash Liquidation, REO Disposition or purchase or repurchase of any
Mortgage Loan pursuant to the terms of this Agreement, as well as any recovery (other than
Subsequent Recoveries) resulting from a collection of Liquidation Proceeds, Insurance Proceeds or
REO Proceeds, will be applied in the following order of priority: first, to reimburse the Master
Servicer or the related Subservicer in accordance with Section 3.10(a)(ii); second, to all
Servicing Fees and Subservicing Fees payable therefrom (and the Master Servicer and the Subservicer
shall have no claims for any deficiencies with respect to such fees which result from the foregoing
allocation); third, to the Certificateholders to the extent of accrued and unpaid interest on the
Mortgage Loan, and any related REO Imputed Interest, at the Net Mortgage Rate (or the Modified Net
Mortgage Rate in the case of a Modified Mortgage Loan), to the Due Date in the related Due Period
prior to the Distribution Date on which such amounts are to be distributed; fourth, to the
Certificateholders as a recovery of principal on the Mortgage Loan (or REO Property); and fifth, to
Foreclosure Profits.

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          (e) In the event of a default on a Mortgage Loan one or more of whose obligors is not a United
States Person, in connection with any foreclosure or acquisition of a deed in lieu of foreclosure
(together, “foreclosure”) in respect of such Mortgage Loan, the Master Servicer shall cause
compliance with the provisions of Treasury Regulation Section 1.1445-2(d)(3) (or any successor
thereto) necessary to assure that no withholding tax obligation arises with respect to the proceeds
of such foreclosure except to the extent, if any, that proceeds of such foreclosure are required to
be remitted to the obligors on such Mortgage Loan.

     Section 3.15. Trustee to Cooperate; Release of Custodial Files

          (a) Upon becoming aware of the payment in full of any Mortgage Loan, or upon the receipt by
the Master Servicer of a notification that payment in full will be escrowed in a manner customary
for such purposes, the Master Servicer shall immediately notify the Trustee (if it holds the
related Custodial File) or the Custodian by a certification of a Servicing Officer (which
certification 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 3.07 have been or will be so deposited), substantially in the form attached
hereto as Exhibit G, or, in the case of the Custodian, an electronic request in a form acceptable
to the Custodian, requesting delivery to it of the Custodial File. Upon receipt of such
certification and request, the Trustee shall promptly release, or cause the Custodian to release,
the related Custodial File to the Master Servicer. The Master Servicer is authorized to execute and
deliver to the Mortgagor the request for reconveyance, deed of reconveyance or release or
satisfaction of mortgage or such instrument releasing the lien of the Mortgage, together with the
Mortgage Note with, as appropriate, written evidence of cancellation thereon and to cause the
removal from the registration on the MERS® System of such Mortgage and to execute and deliver, on
behalf of the Trustee and the Certificateholders or any of them, any and all instruments of
satisfaction or cancellation or of partial or full release, including any applicable UCC
termination statements. No expenses incurred in connection with any instrument of satisfaction or
deed of reconveyance shall be chargeable to the Custodial Account or the Certificate Account.

          (b) From time to time as is appropriate for the servicing or foreclosure of any Mortgage Loan,
the Master Servicer shall deliver to the Custodian, with a copy to the Trustee, a certificate of a
Servicing Officer substantially in the form attached as Exhibit G hereto, or, in the case of the
Custodian, an electronic request in a form acceptable to the Custodian, requesting that possession
of all, or any document constituting part of, the Custodial File be released to the Master Servicer
and certifying as to the reason for such release and that such release will not invalidate any
insurance coverage provided in respect of the Mortgage Loan under any Required Insurance Policy.
Upon receipt of the foregoing, the Trustee shall deliver, or cause the Custodian to deliver, the
Custodial File or any document therein to the Master Servicer. The Master Servicer shall cause
each Custodial File or any document therein so released to be returned to the Trustee, or the
Custodian as agent for the Trustee when the need therefor by the Master Servicer no longer exists,
unless (i) the Mortgage Loan has been liquidated and the Liquidation Proceeds relating to the
Mortgage Loan have been deposited in the Custodial Account or (ii) the Custodial File or such
document has been delivered directly or through a
Subservicer 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

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Mortgaged Property either judicially or non-judicially, and the Master Servicer has delivered
directly or through a Subservicer to the Trustee a certificate of a Servicing Officer certifying as
to the name and address of the Person to which such Custodial File or such document was delivered
and the purpose or purposes of such delivery. In the event of the liquidation of a Mortgage Loan,
the Trustee shall deliver the Request for Release with respect thereto to the Master Servicer upon
the Trustee’s receipt of notification from the Master Servicer of the deposit of the related
Liquidation Proceeds in the Custodial Account.

          (c) The Trustee or the Master Servicer on the Trustee’s behalf shall execute and deliver to
the Master Servicer, if necessary, any court pleadings, requests for trustee’s sale or other
documents necessary to the foreclosure or trustee’s sale in respect of a Mortgaged Property or to
any legal action brought to obtain judgment against any Mortgagor on the Mortgage Note or Mortgage
or to obtain a deficiency judgment, or to enforce any other remedies or rights provided by the
Mortgage Note or Mortgage or otherwise available at law or in equity. Together with such documents
or pleadings (if signed by the Trustee), the Master Servicer shall deliver to the Trustee a
certificate of a Servicing Officer requesting that such pleadings or documents be executed by the
Trustee and certifying as to the reason such documents or pleadings are required and that the
execution and delivery thereof by the Trustee shall not invalidate any insurance coverage under any
Required Insurance Policy or invalidate or otherwise affect the lien of the Mortgage, except for
the termination of such a lien upon completion of the foreclosure or trustee’s sale.

     Section 3.16. Servicing and Other Compensation; Compensating Interest

          (a) The Master Servicer, as compensation for its activities hereunder, shall be entitled to
receive on each Distribution Date the amounts provided for by clauses (iii), (iv), (v) and (vi) of
Section 3.10(a), subject to clause (e) below. The amount of servicing compensation provided for in
such clauses shall be accounted for on a Mortgage Loan-by-Mortgage Loan basis. In the event that
Liquidation Proceeds, Insurance Proceeds and REO Proceeds (net of amounts reimbursable therefrom
pursuant to Section 3.10(a)(ii)) in respect of a Cash Liquidation or REO Disposition exceed the
unpaid principal balance of such Mortgage Loan plus unpaid interest accrued thereon (including REO
Imputed Interest) at a per annum rate equal to the related Net Mortgage Rate (or the Modified Net
Mortgage Rate in the case of a Modified Mortgage Loan), the Master Servicer shall be entitled to
retain therefrom and to pay to itself and/or the related Subservicer, any Foreclosure Profits and
any Servicing Fee or Subservicing Fee considered to be accrued but unpaid.

          (b) Additional servicing compensation in the form of late payment charges, assumption fees,
investment income on amounts in the Custodial Account or the Certificate Account or otherwise shall
be retained by the Master Servicer or the Subservicer to the extent provided herein, subject to
clause (e) below. Prepayment charges shall be deposited into the Certificate Account and shall be
paid on each Distribution Date to the holders of the Class SB Certificates.

          (c) The Master Servicer shall be required to pay, or cause to be paid, all expenses incurred
by it in connection with its servicing activities hereunder (including payment of premiums for the
Primary Insurance Policies, if any, to the extent such premiums are not

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required to be paid by the related Mortgagors, and the fees and expenses of the Trustee and any
Custodian) and shall not be entitled to reimbursement therefor except as specifically provided in
Sections 3.10 and 3.14.

          (d) [Reserved].

          (e) Notwithstanding clauses (a) and (b) above, the amount of servicing compensation that the
Master Servicer shall be entitled to receive for its activities hereunder for the period ending on
each Distribution Date shall be reduced (but not below zero) by the amount of Compensating Interest
(if any) for such Distribution Date used to cover Prepayment Interest Shortfalls as provided in
Section 3.16(f) below. Such reduction shall be applied during such period as follows: first, to
any Servicing Fee or Subservicing Fee to which the Master Servicer is entitled pursuant to Section
3.10(a)(iii); and second, to any income or gain realized from any investment of funds held in the
Custodial Account or the Certificate Account to which the Master Servicer is entitled pursuant to
Sections 3.07(c) or 4.01(b), respectively. In making such reduction, the Master Servicer shall not
withdraw from the Custodial Account any such amount representing all or a portion of the Servicing
Fee to which it is entitled pursuant to Section 3.10(a)(iii) and shall not withdraw from the
Custodial Account or Certificate Account any such amount to which it is entitled pursuant to
Section 3.07(c) or 4.01(b).

          (f) With respect to any Distribution Date, Prepayment Interest Shortfalls on the Mortgage
Loans will be covered first, by the Master Servicer, but only to the extent such Prepayment
Interest Shortfalls do not exceed Eligible Master Servicing Compensation.

     Section 3.17. Reports to the Trustee and the Depositor

     Not later than fifteen days after each Distribution Date, the Master Servicer shall forward to
the Trustee and the Depositor a statement, certified by a Servicing Officer, setting forth the
status of the Custodial Account as of the close of business on such Distribution Date as it relates
to the Mortgage Loans and showing, for the period covered by such statement, the aggregate of
deposits in or withdrawals from the Custodial Account in respect of the Mortgage Loans for each
category of deposit specified in Section 3.07 and each category of withdrawal specified in Section
3.10.

     Section 3.18. Annual Statement as to Compliance and Servicing Assessment

     The Master Servicer shall deliver to the Depositor and the Trustee on or before the earlier of
(a) March 31 of each year or (b) with respect to any calendar year during which the Depositor’s
annual report on Form 10-K is required to be filed in accordance with the Exchange Act and the
rules and regulations of the Commission, the date on which the annual report on Form 10-K is
required to be filed in accordance with the Exchange Act and the rules and regulations of the
Commission, (i) a servicing assessment as described in Section 4.03(f)(ii) and (ii) a servicer
compliance statement, signed by an authorized officer of the Master Servicer, as described in Items
1122(a), 1122(b) and 1123 of Regulation AB, to the effect that:

          (i) A review of the Master Servicer’s activities during the reporting period and of its
performance under this Agreement has been made under such officer’s supervision.

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          (ii) To the best of such officer’s knowledge, based on such review, the Master Servicer
has fulfilled all of its obligations under this Agreement in all material respects throughout the
reporting period or, if there has been a failure to fulfill any such obligation in any material
respect, specifying each such failure known to such officer and the nature and status thereof.

     The Master Servicer shall use commercially reasonable efforts to obtain from all other
parties participating in the servicing function any additional certifications required under Item
1123 of Regulation AB to the extent required to be included in a Report on Form 10-K; provided,
however, that a failure to obtain such certifications shall not be a breach of the Master
Servicer’s duties hereunder if any such party fails to deliver such a certification.

     Section 3.19. Annual Independent Public Accountants’ Servicing Report

     On or before the earlier of (a) March 31 of each year or (b) with respect to any calendar year
during which the Depositor’s annual report on Form 10-K is required to be filed in accordance with
the Exchange Act and the rules and regulations of the Commission, the date on which the annual
report on Form 10-K is required to be filed in accordance with the Exchange Act and the rules and
regulations of the Commission, the Master Servicer at its expense shall cause a firm of independent
public accountants which shall be members of the American Institute of Certified Public Accountants
to furnish a report to the Depositor and the Trustee the attestation required under Item 1122(b) of
Regulation AB. In rendering such statement, such firm may rely, as to matters relating to the
direct servicing of mortgage loans by Subservicers, upon comparable statements for examinations
conducted by independent public accountants substantially in accordance with standards established
by the American Institute of Certified Public Accountants (rendered within one year of such
statement) with respect to such Subservicers.

     Section 3.20. Right of the Depositor in Respect of the Master Servicer

     The Master Servicer shall afford the Depositor and the Trustee, upon reasonable notice, during
normal business hours access to all records maintained by the Master Servicer in respect of its
rights and obligations hereunder and access to officers of the Master Servicer responsible for such
obligations. Upon request, the Master Servicer shall furnish the Depositor with its most recent
financial statements and such other information as the Master Servicer possesses regarding its
business, affairs, property and condition, financial or otherwise. The Master Servicer shall also
cooperate with all reasonable requests for information including, but not limited to, notices,
tapes and copies of files, regarding itself, the Mortgage Loans or the Certificates from any Person
or Persons identified by the Depositor or [_________________]. The Depositor may enforce the
obligation of the Master Servicer hereunder and may, but it is not obligated to, perform or cause a
designee to perform, any defaulted obligation of the Master Servicer hereunder or exercise the
rights of the Master Servicer hereunder; provided that the Master Servicer shall not be relieved of
any of its obligations hereunder by virtue of such performance by the Depositor or its designee.
Neither the Depositor nor the Trustee shall have the responsibility or liability for any action or
failure to act by the Master Servicer and the
Depositor is not obligated to supervise the performance of the Master Servicer under this
Agreement or otherwise.

     Section 3.21. Advance Facility

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          (a) The Master Servicer is hereby authorized to enter into a financing or other facility (any
such arrangement, an “Advance Facility”) under which (1) the Master Servicer sells, assigns or
pledges to another Person (an “Advancing Person”) the Master Servicer’s rights under this Agreement
to be reimbursed for any Advances or Servicing Advances and/or (2) an Advancing Person agrees to
fund some or all Advances and/or Servicing Advances required to be made by the Master Servicer
pursuant to this Agreement. No consent of the Depositor, the Trustee, the Certificateholders or
any other party shall be required before the Master Servicer may enter into an Advance Facility.
Notwithstanding the existence of any Advance Facility under which an Advancing Person agrees to
fund Advances and/or Servicing Advances on the Master Servicer’s behalf, the Master Servicer shall
remain obligated pursuant to this Agreement to make Advances and Servicing Advances pursuant to and
as required by this Agreement. If the Master Servicer enters into an Advance Facility, and for so
long as an Advancing Person remains entitled to receive reimbursement for any Advances including
Nonrecoverable Advances (“Advance Reimbursement Amounts”) and/or Servicing Advances including
Nonrecoverable Advances (“Servicing Advance Reimbursement Amounts” and together with Advance
Reimbursement Amounts, “Reimbursement Amounts”) (in each case to the extent such type of
Reimbursement Amount is included in the Advance Facility), as applicable, pursuant to this
Agreement, then the Master Servicer shall identify such Reimbursement Amounts consistent with the
reimbursement rights set forth in Section 3.10(a)(ii) and (vii) and remit such Reimbursement
Amounts in accordance with this Section 3.21 or otherwise in accordance with the documentation
establishing the Advance Facility to such Advancing Person or to a trustee, agent or custodian (an
“Advance Facility Trustee”) designated by such Advancing Person in an Advance Facility Notice
described below in Section 3.21(b). Notwithstanding the foregoing, if so required pursuant to the
terms of the Advance Facility, the Master Servicer may direct, and if so directed in writing the
Trustee is hereby authorized to and shall pay to the Advance Facility Trustee the Reimbursement
Amounts identified pursuant to the preceding sentence. An Advancing Person whose obligations
hereunder are limited to the funding of Advances and/or Servicing Advances shall not be required to
meet the qualifications of a Master Servicer or a Subservicer pursuant to Section 3.02(a) or
6.02(c) hereof and shall not be deemed to be a Subservicer under this Agreement. Notwithstanding
anything to the contrary herein, in no event shall Advance Reimbursement Amounts or Servicing
Advance Reimbursement Amounts be included in the Available Distribution Amount or distributed to
Certificateholders.

          (b) If the Master Servicer enters into an Advance Facility and makes the election set forth in
Section 3.21(a), the Master Servicer and the related Advancing Person shall deliver to the Trustee
a written notice and payment instruction (an “Advance Facility Notice”), providing the Trustee with
written payment instructions as to where to remit Advance Reimbursement Amounts and/or Servicing
Advance Reimbursement Amounts (each to the extent such type of Reimbursement Amount is included
within the Advance Facility) on subsequent Distribution Dates. The payment instruction shall
require the applicable Reimbursement Amounts to be distributed to the Advancing Person or to an
Advance Facility Trustee designated in the Advance Facility Notice. An Advance Facility Notice may
only be terminated by the joint written direction of the Master Servicer and the related Advancing
Person (and any related Advance Facility Trustee).

          (c) Reimbursement Amounts shall consist solely of amounts in respect of Advances and/or
Servicing Advances made with respect to the Mortgage Loans for which the

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Master Servicer would be permitted to reimburse itself in accordance with Section 3.10(a)(ii) and
(vii) hereof, assuming the Master Servicer or the Advancing Person had made the related Advance(s)
and/or Servicing Advance(s). Notwithstanding the foregoing, except with respect to reimbursement
of Nonrecoverable Advances as set forth in Section 3.10(c) of this Agreement, no Person shall be
entitled to reimbursement from funds held in the Certificate Account for future distribution to
Certificateholders pursuant to this Agreement. Neither the Depositor nor the Trustee shall have
any duty or liability with respect to the calculation of any Reimbursement Amount, nor shall the
Depositor or the Trustee have any responsibility to track or monitor the administration of the
Advance Facility and the Depositor shall not have any responsibility to track, monitor or verify
the payment of Reimbursement Amounts to the related Advancing Person or Advance Facility Trustee.
The Master Servicer shall maintain and provide to any successor master servicer a detailed
accounting on a loan-by-loan basis as to amounts advanced by, sold, pledged or assigned to, and
reimbursed to any Advancing Person. The successor master servicer shall be entitled to rely on any
such information provided by the Master Servicer and the successor master servicer shall not be
liable for any errors in such information.

          (d) Upon the direction of and at the expense of the Master Servicer, the Trustee agrees to
execute such acknowledgments, certificates, and other documents reasonably satisfactory to the
Trustee provided by the Master Servicer recognizing the interests of any Advancing Person or
Advance Facility Trustee in such Reimbursement Amounts as the Master Servicer may cause to be made
subject to Advance Facilities pursuant to this Section 3.21, and such other documents in connection
with such Advance Facility as may be reasonably requested from time to time by any Advancing Person
or Advance Facility Trustee and reasonably satisfactory to the Trustee.

          (e) Reimbursement Amounts collected with respect to each Mortgage Loan shall be allocated to
outstanding unreimbursed Advances or Servicing Advances (as the case may be) made with respect to
that Mortgage Loan on a “first-in, first out” (“FIFO”) basis, subject to the qualifications set
forth below:

                     (i) Any successor Master Servicer to [_________________] (a “Successor Master Servicer”) and
the Advancing Person or Advance Facility Trustee shall be required to apply all amounts available
in accordance with this Section 3.21(e) to the reimbursement of Advances and Servicing Advances in
the manner provided for herein; provided, however, that after the succession of a Successor Master
Servicer, (A) to the extent that any Advances or Servicing Advances with respect to any particular
Mortgage Loan are reimbursed from payments or recoveries, if any, from the related Mortgagor, and
Liquidation Proceeds or Insurance Proceeds, if any, with respect to that Mortgage Loan,
reimbursement shall be made, first, to the Advancing Person or Advance Facility Trustee in respect
of Advances and/or Servicing Advances related to that Mortgage Loan to the extent of the interest
of the Advancing Person or Advance Facility Trustee in such Advances and/or Servicing Advances,
second to the Master Servicer in respect of Advances and/or Servicing Advances related to that
Mortgage Loan in excess of those in which the Advancing Person or Advance Facility Trustee Person
has an interest, and third, to the Successor Master Servicer in respect of any other Advances
and/or Servicing Advances related to that Mortgage Loan, from such sources as and
when collected, and (B) reimbursements of Advances and Servicing Advances that are
Nonrecoverable Advances shall be made pro rata to the Advancing Person or Advance Facility

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Trustee, on the one hand, and any such Successor Master Servicer, on the other hand, on the basis
of the respective aggregate outstanding unreimbursed Advances and Servicing Advances that are
Nonrecoverable Advances owed to the Advancing Person, Advance Facility Trustee or Master Servicer
pursuant to this Agreement, on the one hand, and any such Successor Master Servicer, on the other
hand, and without regard to the date on which any such Advances or Servicing Advances shall have
been made. In the event that, as a result of the FIFO allocation made pursuant to this Section
3.21(e), some or all of a Reimbursement Amount paid to the Advancing Person or Advance Facility
Trustee relates to Advances or Servicing Advances that were made by a Person other than
[_________________] or the Advancing Person or Advance Facility Trustee, then the Advancing Person
or Advance Facility Trustee shall be required to remit any portion of such Reimbursement Amount to
the Person entitled to such portion of such Reimbursement Amount. Without limiting the generality
of the foregoing, [_________________] shall remain entitled to be reimbursed by the Advancing
Person or Advance Facility Trustee for all Advances and Servicing Advances funded by
[_________________] to the extent the related Reimbursement Amount(s) have not been assigned or
pledged to an Advancing Person or Advance Facility Trustee. The documentation establishing any
Advance Facility shall require [_________________] to provide to the related Advancing Person or
Advance Facility Trustee loan by loan information with respect to each Reimbursement Amount
distributed to such Advancing Person or Advance Facility Trustee on each date of remittance thereof
to such Advancing Person or Advance Facility Trustee, to enable the Advancing Person or Advance
Facility Trustee to make the FIFO allocation of each Reimbursement Amount with respect to each
Mortgage Loan.

               (ii) By way of illustration, and not by way of limiting the generality of the foregoing, if
the Master Servicer resigns or is terminated at a time when the Master Servicer is a party to an
Advance Facility, and is replaced by a Successor Master Servicer, and the Successor Master Servicer
directly funds Advances or Servicing Advances with respect to a Mortgage Loan and does not assign
or pledge the related Reimbursement Amounts to the related Advancing Person or Advance Facility
Trustee, then all payments and recoveries received from the related Mortgagor or received in the
form of Liquidation Proceeds with respect to such Mortgage Loan (including Insurance Proceeds
collected in connection with a liquidation of such Mortgage Loan) will be allocated first to the
Advancing Person or Advance Facility Trustee until the related Reimbursement Amounts attributable
to such Mortgage Loan that are owed to the Master Servicer and the Advancing Person, which were
made prior to any Advances or Servicing Advances made by the Successor Master Servicer, have been
reimbursed in full, at which point the Successor Master Servicer shall be entitled to retain all
related Reimbursement Amounts subsequently collected with respect to that Mortgage Loan pursuant to
Section 3.10 of this Agreement. To the extent that the Advances or Servicing Advances are
Nonrecoverable Advances to be reimbursed on an aggregate basis pursuant to Section 3.10 of this
Agreement, the reimbursement paid in this manner will be made pro rata to the Advancing Person or
Advance Facility Trustee, on the one hand, and the Successor Master Servicer, on the other hand, as
described in clause (i)(B) above.

          (f) The Master Servicer shall remain entitled to be reimbursed for all Advances and Servicing
Advances funded by the Master Servicer to the extent the related rights to be reimbursed therefor
have not been sold, assigned or pledged to an Advancing Person.

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          (g) Any amendment to this Section 3.21 or to any other provision of this Agreement that may be
necessary or appropriate to effect the terms of an Advance Facility as described generally in this
Section 3.21, including amendments to add provisions relating to a successor master servicer, may
be entered into by the Trustee, Depositor and the Master Servicer without the consent of any
Certificateholder, with written confirmation from each Rating Agency that the amendment will not
result in the reduction of the ratings on any class of the Certificates below the lesser of the
then current or original ratings on such Certificates and delivery of an Opinion of Counsel as
required under Section 11.01(c), notwithstanding anything to the contrary in Section 11.01 of or
elsewhere in this Agreement.

          (h) Any rights of set-off that the Trust Fund, the Trustee, the Depositor, any Successor
Master Servicer or any other Person might otherwise have against the Master Servicer under this
Agreement shall not attach to any rights to be reimbursed for Advances or Servicing Advances that
have been sold, transferred, pledged, conveyed or assigned to any Advancing Person.

          (i) At any time when an Advancing Person shall have ceased funding Advances and/or Servicing
Advances (as the case may be) and the Advancing Person or related Advance Facility Trustee shall
have received Reimbursement Amounts sufficient in the aggregate to reimburse all Advances and/or
Servicing Advances (as the case may be) the right to reimbursement for which were assigned to the
Advancing Person, then upon the delivery of a written notice signed by the Advancing Person and the
Master Servicer or its successor or assign) to the Trustee terminating the Advance Facility Notice
(the “Notice of Facility Termination”), the Master Servicer or its Successor Master Servicer shall
again be entitled to withdraw and retain the related Reimbursement Amounts from the Custodial
Account pursuant to Section 3.10.

          (j) After delivery of any Advance Facility Notice, and until any such Advance Facility Notice
has been terminated by a Notice of Facility Termination, this Section 3.21 may not be amended or
otherwise modified without the prior written consent of the related Advancing Person.

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ARTICLE IV

PAYMENTS TO CERTIFICATEHOLDERS

     Section 4.01. Certificate Account

          (a) The Master Servicer acting as agent of the Trustee shall establish and maintain a
Certificate Account in which the Master Servicer shall cause to be deposited on behalf of the
Trustee on or before 2:00 P.M. New York time on each Certificate Account Deposit Date by wire
transfer of immediately available funds an amount equal to the sum of (i) any P&I Advance for the
immediately succeeding Distribution Date, (ii) any amount required to be deposited in the
Certificate Account pursuant to Section 3.12(a), (iii) any amount required to be deposited in the
Certificate Account pursuant to Section 3.16(e) or Section 4.07, (iv) any amount required to be
paid pursuant to Section 9.01, (v) all other amounts constituting the Available Distribution Amount
for the immediately succeeding Distribution Date and (vi) any payments or collections in the nature
of prepayment charges received by the Master Servicer in respect of the Mortgage Loans and the
related Prepayment Period.

          (b) [Reserved].

          (c) The Trustee shall, upon written request from the Master Servicer, invest or cause the
institution maintaining the Certificate Account to invest the funds in the Certificate Account in
Permitted Investments designated in the name of the Trustee for the benefit of the
Certificateholders, which shall mature not later than the Business Day next preceding the
Distribution Date next following the date of such investment (except that (i) if such Permitted
Investment is an obligation of the institution that maintains such account or a fund for which such
institution serves as custodian, then such Permitted Investment may mature on such Distribution
Date and (ii) any other investment may mature on such Distribution Date if the Trustee shall
advance funds on such Distribution Date to the Certificate Account in the amount payable on such
investment on such Distribution Date, pending receipt thereof to the extent necessary to make
distributions on the Certificates) and shall not be sold or disposed of prior to maturity. All
income and gain realized from any such investment shall be for the benefit of the Master Servicer
and shall be subject to its withdrawal or order from time to time. The amount of any losses
incurred in respect of any such investments shall be deposited in the Certificate Account by the
Master Servicer out of its own funds immediately as realized.

     Section 4.02. Distributions

          (a) On each Distribution Date, the Trustee (or the Paying Agent on behalf of the Trustee)
shall allocate and distribute the Available Distribution Amount, if any, for such date to the
interests issued in respect of REMIC I and REMIC II as specified in this Section.

          (b) (1) On each Distribution Date, the REMIC I Distribution Amount shall be distributed by
REMIC I to REMIC II on account of the REMIC I Regular Interests and to the Holders of the Class R-I
Certificates, in the amounts and with the priorities set forth in the definition thereof.

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               (2) Notwithstanding the distributions described in this Section 4.02(b), distribution of funds
from the Certificate Account shall be made only in accordance with Section 4.02(c).

          (c) [On each Distribution Date (x) the Master Servicer on behalf of the Trustee or (y) the
Paying Agent appointed by the Trustee, shall distribute to each Certificateholder of record on the
next preceding Record Date (other than as provided in Section 9.01 respecting the final
distribution) either in immediately available funds (by wire transfer or otherwise) to the account
of such Certificateholder at a bank or other entity having appropriate facilities therefor, if such
Certificateholder has so notified the Master Servicer or the Paying Agent, as the case may be, or,
if such Certificateholder has not so notified the Master Servicer or the Paying Agent by the Record
Date, by check mailed to such Certificateholder at the address of such Holder appearing in the
Certificate Register such Certificateholder’s share (which share with respect to each Class of
Certificates, shall be based on the aggregate of the Percentage Interests represented by
Certificates of the applicable Class held by such Holder of the following amounts), in the
following order of priority, in each case to the extent of the Available Distribution Amount on
deposit in the Certificate Account [(or, with respect to clause (xi)(B) below, to the extent of
prepayment charges on deposit in the Certificate Account)]:

               (i) (1) to the Class A Certificateholders, the Accrued Certificate Interest payable on the
Class A Certificates with respect to such Distribution Date, plus any related amounts accrued
pursuant to this clause (i) but remaining unpaid from any prior Distribution Date, being paid from
and in reduction of the Available Distribution Amount for such Distribution Date and (2) to the
Class R Certificateholders, the Accrued Certificate Interest payable on the Class R Certificates
with respect to such Distribution Date, plus any related amounts accrued pursuant to this clause
(i) but remaining unpaid from any prior Distribution Date, being paid from and in reduction of the
Available Distribution Amount for such Distribution Date;

               (ii) to the Class M Certificateholders and Class B Certificateholders from the amount, if any,
of the Available Distribution Amount remaining after the foregoing distributions, the Accrued
Certificate Interest payable on the Class M Certificates and Class B Certificates with respect to
such Distribution Date, plus any related amounts accrued pursuant to this clause (ii) but remaining
unpaid from any prior Distribution Date, sequentially, to the [Class M-1 Certificateholders, Class
M-2 Certificateholders, Class M-3 Certificateholders, Class M-4 Certificateholders, Class M-5
Certificateholders, Class M-6 Certificateholders, Class M-7 Certificateholders, Class M-8
Certificateholders, Class M-9 Certificateholders and Class B Certificateholders], in that order,
being paid from and in reduction of the Available Distribution Amount for such Distribution Date;

               (iii) [reserved]

               (iv) the Principal Distribution Amount shall be distributed as follows, in each case to the
extent of the remaining Principal Distribution Amount:

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     (A) first, the Class R Principal Distribution Amount, pro rata, to the Class
R-I Certificateholders and Class R-II Certificateholders, until the aggregate
Certificate Principal Balance of the Class R Certificates has been reduced to zero;

     (B) second, the Class A Principal Distribution Amount, pro rata, to the Class
A-1 Certificateholders, Class A-2 Certificateholders and Class A-3
Certificateholders, until the aggregate Certificate Principal Balance of the Class A
Certificates has been reduced to zero;

     (C) third, to the Class M-1 Certificateholders, the Class M-1 Principal
Distribution Amount, until the Certificate Principal Balance of the Class M-1
Certificates has been reduced to zero;

     (D) fourth, to the Class M-2 Certificateholders, the Class M-2 Principal
Distribution Amount, until the Certificate Principal Balance of the Class M-2
Certificates has been reduced to zero;

     (E) fifth, to the Class M-3 Certificateholders, the Class M-3 Principal
Distribution Amount, until the Certificate Principal Balance of the Class M-3
Certificates has been reduced to zero;

     (F) sixth, to the Class M-4 Certificateholders, the Class M-4 Principal
Distribution Amount, until the Certificate Principal Balance of the Class M-4
Certificates has been reduced to zero;

     (G) seventh, to the Class M-5 Certificateholders, the Class M-5 Principal
Distribution Amount, until the Certificate Principal Balance of the Class M-5
Certificates has been reduced to zero;

     (H) eighth, to the Class M-6 Certificateholders, the Class M-6 Principal
Distribution Amount, until the Certificate Principal Balance of the Class M-6
Certificates has been reduced to zero;

     (I) ninth, to the Class M-7 Certificateholders, the Class M-7 Principal
Distribution Amount, until the Certificate Principal Balance of the Class M-7
Certificates has been reduced to zero;

     (J) tenth, to the Class M-8 Certificateholders, the Class M-8 Principal
Distribution Amount, until the Certificate Principal Balance of the Class M-8
Certificates has been reduced to zero;

     (K) eleventh, to the Class M-9 Certificateholders, the Class M-9 Principal
Distribution Amount, until the Certificate Principal Balance of the Class M-8
Certificates has been reduced to zero;

     (L) twelfth, to the Class B Certificateholders, the Class B Principal
Distribution Amount, until the Certificate Principal Balance of the Class B
Certificates has been reduced to zero]; and

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               (v) to the Class A Certificateholders, Class M Certificateholders and Class B
Certificateholders, the amount of any Prepayment Interest Shortfalls allocated thereto for such
Distribution Date, on a pro rata basis based on Prepayment Interest Shortfalls allocated thereto to
the extent not offset by Eligible Master Servicing Compensation on such Distribution Date;

               (vi) to the Class A Certificateholders, Class M Certificateholders and Class B
Certificateholders, the amount of any Prepayment Interest Shortfalls previously allocated thereto
remaining unpaid from prior Distribution Dates together with interest thereon at the related
Pass-Through Rate, on a pro rata basis based on unpaid Prepayment Interest Shortfalls previously
allocated thereto;

               (vii) to the Class A Certificateholders, the amount of any unpaid Class A Basis Risk Shortfall
Carry-Forward Amounts allocated thereto, on a pro rata basis based on the amount of unpaid Class A
Basis Risk Shortfall Carry-Forward Amounts allocated thereto, and then sequentially, to the [Class
M-1 Certificateholders, the Class M-2 Certificateholders, the Class M-3 Certificateholders, the
Class M-4 Certificateholders, the Class M-5 Certificateholders, the Class M-6 Certificateholders,
the Class M-7 Certificateholders, the Class M-8 Certificateholders and Class B Certificateholders,]
in that order, the amount of any unpaid Basis Risk Shortfall Carry-Forward Amounts allocated
thereto;

               (viii) to the Class A Certificateholders, Class M Certificateholders and Class B
Certificateholders, Relief Act Shortfalls allocated thereto for such Distribution Date, on a pro
rata basis based on Relief Act Shortfalls allocated thereto for such Distribution Date,

               (ix) first, to the Class A Certificateholders, the principal portion of any Realized Losses
previously allocated to those Certificates and remaining unreimbursed, on a pro rata basis based on
their respective principal portion of any Realized Losses previously allocated to those
Certificates and remaining unreimbursed, and then, sequentially, to the Class M-1
Certificateholders, the Class M-2 Certificateholders, the Class M-3 Certificateholders, the Class
M-4 Certificateholders, the Class M-5 Certificateholders, the Class M-6 Certificateholders, the
Class M-7 Certificateholders, the Class M-8 Certificateholders, the Class M-9 Certificateholders
and the Class B Certificateholders, in that order, the principal portion of any Realized Losses
previously allocated to such Class and remaining unreimbursed;

               (x) [Reserved].

               (xi) to the Class SB Certificates, (A) from the amount, if any, of the Excess Cash Flow
remaining after the foregoing distributions, the sum of (I) Accrued Certificate Interest thereon,
(II) the amount of any Overcollateralization Reduction Amount for such Distribution Date and (III)
for any Distribution Date after the Certificate Principal Balance of each Class of Class A
Certificates, Class M Certificates and Class B Certificates has been reduced to zero, the
Overcollateralization Amount and (B) from prepayment charges on deposit in the Certificate Account,
any prepayment charges received on the Mortgage Loans during the related Prepayment Period; and

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               (xii) to the Class R-I Certificateholders, the balance, if any, of the Excess Cash Flow.

     All payments of amounts in respect of Basis Risk Shortfall Carry-Forward Amounts made pursuant
to Section 4.02(c)(vii) and any other amounts in respect of interest accrued at a Pass-Through Rate
in excess of the Net WAC Rate Cap shall, for federal income tax purposes, be deemed to have been
distributed by REMIC II to the Holder of the Class SB Certificates and then paid outside of any
REMIC to the recipients thereof pursuant to an interest rate cap contract. By accepting their
Certificates the Holders of the Certificates agree to treat such payments in the manner described
in the preceding sentence for purposes of filing their income tax returns.

          (d) Notwithstanding the foregoing clause (c), upon the reduction of the Certificate Principal
Balance of a Class of [Class A Certificates, Class M Certificates or Class B Certificates] to zero,
such Class of Certificates will not be entitled to further distributions pursuant to Section 4.02.

          (e) Each distribution with respect to a Book-Entry Certificate shall be paid to the
Depository, as Holder thereof, and the Depository shall be responsible for crediting the amount of
such distribution to the accounts of its Depository Participants in accordance with its normal
procedures. Each Depository Participant shall be responsible for disbursing such distribution to
the Certificate Owners that it represents and to each indirect participating brokerage firm (a
“brokerage firm” or “indirect participating firm”) for which it acts as agent. Each brokerage firm
shall be responsible for disbursing funds to the Certificate Owners that it represents. None of the
Trustee, the Certificate Registrar, the Depositor or the Master Servicer shall have any
responsibility therefor except as otherwise provided by this Agreement or applicable law.

          (f) Except as otherwise provided in Section 9.01, if the Master Servicer anticipates that a
final distribution with respect to any Class of Certificates will be made on the next Distribution
Date, the Master Servicer shall, no later than the Determination Date in the month of such final
distribution, notify the Trustee and the Trustee shall, no later than two (2) Business Days after
such Determination Date, mail on such date to each Holder of such Class of Certificates a notice to
the effect that: (i) the Trustee anticipates that the final distribution with respect to such
Class of Certificates will be made on such Distribution Date but only upon presentation and
surrender of such Certificates at the office of the Trustee or as otherwise specified therein, and
(ii) no interest shall accrue on such Certificates from and after the end of the prior calendar
month. In the event that Certificateholders required to surrender their Certificates pursuant to
Section 9.01(c) do not surrender their Certificates for final cancellation, the Trustee shall cause
funds distributable with respect to such Certificates to be withdrawn from the Certificate Account
and credited to a separate escrow account for the benefit of such Certificateholders as provided in
Section 9.01(d).

     Section 4.03. Statements to Certificateholders; Statements to Rating Agencies;
Exchange Act Reporting

          (a) Concurrently with each distribution charged to the Certificate Account and with respect to
each Distribution Date the Master Servicer shall forward to the Trustee and the Trustee shall
forward by mail or otherwise make available electronically on its website (which

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may be obtained by any Certificateholder by telephoning the Trustee at (8[__])
[__]-[____]) to each Holder and the Depositor a statement setting forth the following information
as to each Class of Certificates, in each case to the extent applicable:

               (i) the applicable Record Date, Determination Date and Distribution Date, and the date on
which the applicable Interest Accrual Period commenced;

               (ii) the aggregate amount of payments received with respect to the Mortgage Loans, including
prepayment amounts;

               (iii) the Servicing Fee and Subservicing Fee payable to the Master Servicer and the
Subservicer;

               (iv) the amount of any other fees or expenses paid, and the identity of the party receiving
such fees or expenses;

               (v) (A) the amount of such distribution to the Certificateholders of such Class applied to
reduce the Certificate Principal Balance thereof, and (B) the aggregate amount included therein
representing Principal Prepayments;

               (vi) the amount of such distribution to Holders of such Class of Certificates allocable to
interest (including amounts payable as a portion of the Excess Cash Flow);

               (vii) if the distribution to the Holders of such Class of Certificates is less than the full
amount that would be distributable to such Holders if there were sufficient funds available
therefor, the amount of the shortfall;

               (viii) the aggregate Certificate Principal Balance of each Class of the Certificates, after
giving effect to the amounts distributed on such Distribution Date, separately identifying any
reduction thereof due to Realized Losses other than pursuant to an actual distribution of
principal;

               (ix) the percentage of the outstanding principal balances of the [Class A Certificates and
Class M Certificates] after giving effect to the distributions on that Distribution Date;

               (x) the number and Stated Principal Balance of the Mortgage Loans after giving effect to the
distribution of principal on such Distribution Date and the number of Mortgage Loans at the
beginning and end of the preceding Due Period;

               (xi) on the basis of the most recent reports furnished to it by Sub-Subservicers, (A) the
number and Stated Principal Balances of Mortgage Loans that are Delinquent (1) 30-59 days, (2)
60-89 days and (3) 90 or more days and the number and Stated Principal Balances of Mortgage Loans
that are in foreclosure, (B) the number and Stated Principal Balances of the Mortgage Loans in the
aggregate that are Reportable Modified Mortgage Loans that are in foreclosure and are REO Property,
indicating in each case capitalized Mortgage Loans, other Servicing Modifications and totals, and
(C) for all Reportable Modified

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Mortgage Loans, the number and Stated Principal Balances of the Mortgage Loans in the
aggregate that have been liquidated, the subject of pay-offs and that have been repurchased by the
Master Servicer or Seller;

               (xii) the amount, terms and general purpose of any P&I Advance by the Master Servicer pursuant
to Section 4.04 and the amount of all P&I Advances that have been reimbursed during the preceding
Due Period;

               (xiii) any material modifications, extensions or waivers to the terms of the Mortgage Loans
during the Due Period or that have cumulatively become material over time;

               (xiv) any material breaches of Mortgage Loan representations or warranties or covenants in the
Agreement;

               (xv) the number, aggregate principal balance and book value of any REO Properties;

               (xvi) the aggregate Accrued Certificate Interest remaining unpaid, if any, for each Class of
Certificates, after giving effect to the distribution made on such Distribution Date;

               (xvii) the aggregate amount of Realized Losses with respect to the Mortgage Loans for such
Distribution Date and the aggregate amount of Realized Losses with respect to the Mortgage Loans
incurred since the Cut-off Date;

               (xviii) the Pass-Through Rate on each Class of Certificates, separately identifying LIBOR for
such Distribution Date and the Net WAC Cap Rate;

               (xix) the Basis Risk Shortfalls and Prepayment Interest Shortfalls;

               (xx) the Overcollateralization Amount and the Required Overcollateralization Amount following
such Distribution Date;

               (xxi) the number and aggregate principal balance of the Mortgage Loans repurchased under
Section 4.07;

               (xxii) the aggregate amount of any recoveries with respect to the Mortgage Loans on previously
foreclosed loans from [_________________] due to a breach of representation or warranty;

               (xxiii) the weighted average remaining term to maturity of the Mortgage Loans after giving
effect to the amounts distributed on such Distribution Date;

               (xxiv) the weighted average Mortgage Rates of the Mortgage Loans after giving effect to the
amounts distributed on such Distribution Date;

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               (xxv) [the Class A Basis Risk Shortfall, Class A Basis Risk Shortfall Carry-Forward Amount,
Class M Basis Risk Shortfall, Class M Basis Risk Shortfall, Class B Basis Risk Shortfall
Carry-Forward Amount and Prepayment Interest Shortfalls;]

               (xxvi) [Reserved]; and

               (xxvii) the occurrence of the Stepdown Date.

     In the case of information furnished pursuant to clauses (i) and (ii) above, the amounts shall
be expressed as a dollar amount per Certificate with a $1,000 denomination. In addition to the
statement provided to the Trustee as set forth in this Section 4.03(a), the Master Servicer shall
provide to any manager of a trust fund consisting of some or all of the Certificates, upon
reasonable request, such additional information as is reasonably obtainable by the Master Servicer
at no additional expense to the Master Servicer. Also, at the request of a Rating Agency, the
Master Servicer shall provide the information relating to the Reportable Modified Mortgage Loans
substantially in the form attached hereto as Exhibit P to such Rating Agency (in accordance with
Section 11.10) within a reasonable period of time; provided, however, that the Master
Servicer shall not be required to provide such information more than four times in a calendar year
to any Rating Agency.

          (b) Within a reasonable period of time after the end of each calendar year, the Master
Servicer shall prepare, or cause to be prepared, and the Trustee shall forward, or cause to be
forwarded, to each Person who at any time during the calendar year was the Holder of a Certificate,
other than a Class R Certificate, a statement containing the information set forth in clauses [(i)
and (ii)] referred to in of subsection (a) above aggregated for such calendar year or applicable
portion thereof during which such Person was a Certificateholder. Such obligation of the Master
Servicer shall be deemed to have been satisfied to the extent that substantially comparable
information shall be provided by the Master Servicer pursuant to any requirements of the Code.

          (c) Within a reasonable period of time after the end of each calendar year, the Master
Servicer shall prepare, or cause to be prepared, and shall forward, or cause to be forwarded, to
each Person who at any time during the calendar year was the Holder of a Class R Certificate, a
statement containing the applicable distribution information provided pursuant to this Section 4.03
aggregated for such calendar year or applicable portion thereof during which such Person was the
Holder of a Class R Certificate. Such obligation of the Master Servicer shall be deemed to have
been satisfied to the extent that substantially comparable information shall be provided by the
Master Servicer pursuant to any requirements of the Code.

          (d) Upon the written request of any Certificateholder, the Master Servicer, as soon as
reasonably practicable, shall provide the requesting Certificateholder with such information as is
necessary and appropriate, in the Master Servicer’s sole discretion, for purposes of satisfying
applicable reporting requirements under Rule 144A.

          (e) The Master Servicer shall, on behalf of the Depositor and in respect of the Trust Fund,
sign and cause to be filed with the Commission any periodic reports required to be filed under the
provisions of the Exchange Act, and the rules and regulations of the Commission

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thereunder, including, without limitation, reports on Form 10-K, Form 10-D and Form 8-K. In
connection with the preparation and filing of such periodic reports, the Trustee shall timely
provide to the Master Servicer (I) a list of Certificateholders as shown on the Certificate
Register as of the end of each calendar year, (II) copies of all pleadings, other legal process and
any other documents relating to any claims, charges or complaints involving the Trustee, as trustee
hereunder, or the Trust Fund that are received by the Trustee, (III) notice of all matters that, to
the actual knowledge of a Responsible Officer of the Trustee, have been submitted to a vote of the
Certificateholders, other than those matters that have been submitted to a vote of the
Certificateholders at the request of the Depositor or the Master Servicer, and (IV) notice of any
failure of the Trustee to make any distribution to the Certificateholders as required pursuant to
this Agreement. Neither the Master Servicer nor the Trustee shall have any liability with respect
to the Master Servicer’s failure to properly prepare or file such periodic reports resulting from
or relating to the Master Servicer’s inability or failure to obtain any information not resulting
from the Master Servicer’s own negligence or willful misconduct.

          (f) Any Form 10-K filed with the Commission in connection with this Section 4.03 shall
include, with respect to the Certificates relating to such 10-K:

               (i) A certification, signed by the senior officer in charge of the servicing functions of the
Master Servicer, in the form attached as Exhibit R-1 hereto or such other form as may be required
or permitted by the Commission (the “Form 10-K Certification”), in compliance with Rules 13a-14 and
15d-14 under the Exchange Act and any additional directives of the Commission.

               (ii) A report regarding its assessment of compliance during the preceding calendar year with
all applicable servicing criteria set forth in relevant Commission regulations with respect to
mortgage-backed securities transactions taken as a whole involving the Master Servicer that are
backed by the same types of assets as those backing the certificates, as well as similar reports on
assessment of compliance received from other parties participating in the servicing function as
required by relevant Commission regulations, as described in Item 1122(a) of Regulation AB. The
Master Servicer shall obtain from all other parties participating in the servicing function any
required assessments.

               (iii) With respect to each assessment report described immediately above, a report by a
registered public accounting firm that attests to, and reports on, the assessment made by the
asserting party, as set forth in relevant Commission regulations, as described in Regulation
1122(b) of Regulation AB and Section 3.19.

               (iv) The servicer compliance certificate required to be delivered pursuant Section 3.18.

          (g) In connection with the Form 10-K Certification, the Trustee shall provide the Master
Servicer with a back-up certification substantially in the form attached hereto as Exhibit R-2.

          (h) This Section 4.03 may be amended in accordance with this Agreement without the consent of
the Certificateholders.

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          (i) The Trustee shall make available on the Trustee’s internet website each of the reports
filed with the Commission by or on behalf of the Depositor under the Exchange Act, upon delivery of
such report to the Trustee.

     Section 4.04. Distribution of Reports to the Trustee and the Depositor; P&I
Advances by the Master Servicer

          (a) Prior to the close of business on the Business Day next succeeding each Determination
Date, the Master Servicer shall furnish a written statement (which may be in a mutually agreeable
electronic format) to the Trustee, any Paying Agent and the Depositor (the information in such
statement to be made available to Certificateholders by the Master Servicer on request) (provided
that the Master Servicer shall use its best efforts to deliver such written statement not later
than 12:00 p.m. New York time on the second Business Day prior to the Distribution Date) setting
forth (i) the Available Distribution Amount, (ii) the amounts required to be withdrawn from the
Custodial Account and deposited into the Certificate Account on the immediately succeeding
Certificate Account Deposit Date pursuant to clause (iii) of Section 4.01(a) and (iii) the amount
of Prepayment Interest Shortfalls and Basis Risk Shortfall Carry-Forward Amounts. The
determination by the Master Servicer of such amounts shall, in the absence of obvious error, be
presumptively deemed to be correct for all purposes hereunder and the Trustee shall be protected in
relying upon the same without any independent check or verification.

          (b) On or before 2:00 P.M. New York time on each Certificate Account Deposit Date, the Master
Servicer shall, subject to any limitations on P&I Advances set forth in this Section 4.04(b), remit
to the Trustee (for deposit in the Certificate Account) a P&I Advance in an amount equal to the
aggregate amount of Monthly Payments which were due during the related Due Period and not received
as of the close of business as of the related Determination Date (with each interest portion
thereof adjusted to a per annum rate equal to the Net Mortgage Rate), less the amount of any
related Servicing Modifications, Debt Service Reductions or Relief Act Shortfalls, on the
Outstanding Mortgage Loans as of the related Due Date in the related Due Period. Such P&I Advance
shall be made (i) from the Master Servicer’s own funds, or funds received therefor from the
Subservicers, (ii) from all or a portion of the Amount Held for Future Distribution in discharge of
any such Advance, or (iii) in the form of any combination of clauses (i) and (ii) aggregating the
required amount of such P&I Advance; provided that no such P&I Advance shall be made if it would be
a Nonrecoverable Advance; provided, further, that no P&I Advance shall be made with respect to any
Mortgage Loan that is 90 or more days Delinquent. Any portion of the Amount Held for Future
Distribution so used shall be replaced by the Master Servicer by deposit in the Certificate Account
on or before 11:00 A.M. New York time on any future Certificate Account Deposit Date to the extent
that funds attributable to the Mortgage Loans that are available in the Custodial Account for
deposit in the Certificate Account on such Certificate Account Deposit Date shall be less than
payments to Certificateholders required to be made on the following Distribution Date. The Master
Servicer shall be entitled to use any Subservicer Advance made by a Subservicer as described in
Section 3.07(b) that has been deposited in the Custodial Account on or before such Distribution
Date as part of the P&I Advance made by the Master Servicer pursuant to this Section 4.04.

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     In the event that the Master Servicer determines as of the Business Day preceding any
Certificate Account Deposit Date that it will be unable to deposit in the Certificate Account an
amount equal to the P&I Advance required to be made for the immediately succeeding Distribution
Date, it shall give notice to the Trustee of its inability to advance (such notice may be given by
telecopy), not later than 3:00 P.M., New York time, on such Business Day, specifying the portion of
such amount that it will be unable to deposit. Not later than 3:00 P.M., New York time, on the
Certificate Account Deposit Date the Trustee shall, unless by 12:00 Noon, New York time, on such
day the Trustee shall have been notified in writing (by telecopy) that the Master Servicer shall
have directly or indirectly deposited in the Certificate Account such portion of the amount of the
P&I Advance as to which the Master Servicer shall have given notice pursuant to the preceding
sentence, pursuant to Section 7.01, (a) terminate all of the rights and obligations of the Master
Servicer under this Agreement in accordance with Section 7.01 and (b) assume the rights and
obligations of the Master Servicer hereunder, including the obligation to deposit in the
Certificate Account an amount equal to the Advance for the immediately succeeding Distribution
Date.

     The Trustee shall deposit all funds it receives pursuant to this Section 4.04(b) into the
Certificate Account.

     Section 4.05. Allocation of Realized Losses

          (a) Prior to each Distribution Date, the Master Servicer shall determine the total amount of
Realized Losses, if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt
Service Reduction, Deficient Valuation or REO Disposition that occurred during the related
Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the
interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the
Monthly Payment due in the month in which such Distribution Date occurs. The amount of each
Realized Loss shall be evidenced by an Officers’ Certificate.

          (b) [All Realized Losses on the Mortgage Loans shall be allocated as follows:

	 	(i)	 	first, to Excess Cash Flow in the amounts and
priority as provided in Section 4.02;

	 	(ii)	 	second, in reduction of the
Overcollateralization Amount, until such amount has been reduced to
zero;

	 	(iii)	 	third, the Class B Certificates, until the
Certificate Principal Balance thereof has been reduced to zero;

	 	(iv)	 	fourth, to the Class M-9 Certificates, until
the Certificate Principal Balance thereof has been reduced to zero;

	 	(v)	 	fifth, to the Class M-8 Certificates, until the
Certificate Principal Balance thereof has been reduced to zero;

	 	(vi)	 	sixth, to the Class M-7 Certificates, until the
Certificate Principal Balance thereof has been reduced to zero;

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	 	(vii)	 	seventh, to the Class M-6 Certificates, until
the Certificate Principal Balance thereof has been reduced to zero;

	 	(viii)	 	eighth, to the Class M-5 Certificates, until the Certificate
Principal Balance thereof has been reduced to zero;

	 	(ix)	 	ninth, to the Class M-4 Certificates, until the
Certificate Principal Balance thereof has been reduced to zero;

	 	(x)	 	tenth, to the Class M-3 Certificates, until the
Certificate Principal Balance thereof has been reduced to zero;

	 	(xi)	 	eleventh, to the Class M-2 Certificates, until
the Certificate Principal Balance thereof has been reduced to zero;

	 	(xii)	 	twelfth, to the Class M-1 Certificates, until
the Certificate Principal Balance thereof has been reduced to zero; and

	 	(xiii)	 	thirteenth, to the Class A Certificates on a pro rata basis, based on
their then outstanding Certificate Principal Balances prior to giving
effect to distributions to be made on such Distribution Date, until the
aggregate Certificate Principal Balance thereof has been reduced to
zero.]

          (c) An allocation of a Realized Loss on a “pro rata basis” among two or more specified Classes
of Certificates means an allocation on a pro rata basis, among the various Classes so specified, to
each such Class of Certificates on the basis of their then outstanding Certificate Principal
Balances prior to giving effect to distributions to be made on such Distribution Date in the case
of the principal portion of a Realized Loss or based on the Accrued Certificate Interest thereon
payable on such Distribution Date in the case of an interest portion of a Realized Loss. Any
allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the
Class A Certificates, Class M Certificates or Class B Certificates shall be made by reducing the
Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed
to have occurred on such Distribution Date; provided, that no such reduction shall reduce the
aggregate Certificate Principal Balance of the Certificates below the aggregate Stated Principal
Balance of the Mortgage Loans. Allocations of the interest portions of Realized Losses (other than
any interest rate reduction resulting from a Servicing Modification) shall be made by operation of
the definition of “Accrued Certificate Interest” for each Class for such Distribution Date.
Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in
connection with a Servicing Modification shall be made by operation of the priority of payment
provisions of Section 4.02(c). Allocations of the principal portion of Debt Service Reductions
shall be made by operation of the priority of payment provisions of Section 4.02(c). All Realized
Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among
the Certificates of such Class in proportion to the Percentage Interests evidenced thereby.

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          (d) All Realized Losses on the Mortgage Loans shall be allocated on each Distribution Date to
the REMIC I Regular Interests as provided in the definition of REMIC I Realized Losses.

          (e) Realized Losses allocated to the Excess Cash Flow or the Overcollateralization Amount
pursuant to paragraphs (a), (b) or (c) of this Section, the definition of Accrued Certificate
Interest and the operation of Section 4.02(c) shall be deemed allocated to the Class SB
Certificates. Realized Losses allocated to the Class SB Certificates shall, to the extent such
Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC II
Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (b)
of this Section shall be deemed to reduce Accrued Certificate Interest on the REMIC II Regular
Interest SB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to
paragraph (b) of this Section shall be deemed first to reduce the principal balance of the REMIC II
Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter
to reduce accrued and unpaid interest on the REMIC II Regular Interest SB-IO.

     Section 4.06. Reports of Foreclosures and Abandonment of Mortgaged Property

     The Master Servicer or the Subservicers shall file information returns with respect to the
receipt of mortgage interest received in a trade or business, the reports of foreclosures and
abandonments of any Mortgaged Property and the informational returns relating to cancellation of
indebtedness income with respect to any Mortgaged Property required by Sections 6050H, 6050J and
6050P of the Code, respectively, and deliver to the Trustee an Officers’ Certificate on or before
March 31 of each year, beginning with the first March 31 that occurs at least six months after the
Cut off Date, stating that such reports have been filed. Such reports shall be in form and
substance sufficient to meet the reporting requirements imposed by such Sections 6050H, 6050J and
6050P of the Code.

     Section 4.07. Optional Purchase of Defaulted Mortgage Loans

          (a) As to any Mortgage Loan which is delinquent in payment by 90 days or more, the Master
Servicer may, at its option, purchase such Mortgage Loan from the Trustee at the Purchase Price
therefor; provided, that any such Mortgage Loan that becomes 90 days or more delinquent during any
given Calendar Quarter shall only be eligible for purchase pursuant to this Section 4.07 during the
period beginning on the first Business Day of the following Calendar Quarter, and ending at the
close of business on the second-to-last Business Day of such following Calendar Quarter; and
provided further, that such Mortgage Loan is 90 days or more delinquent at the time of repurchase.
Such option if not exercised shall not thereafter be reinstated as to any Mortgage Loan, unless the
delinquency is cured and the Mortgage Loan thereafter again becomes delinquent in payment by 90
days or more in a subsequent Calendar Quarter.

          (b) If at any time the Master Servicer makes a payment to the Certificate Account covering the
amount of the Purchase Price for such a Mortgage Loan, and the Master Servicer provides to the
Trustee a certification signed by a Servicing Officer stating that the amount of such payment has
been deposited in the Certificate Account, then the Trustee shall

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execute the assignment of such Mortgage Loan at the request of the Master Servicer without
recourse to the Master Servicer which shall succeed to all the Trustee’s right, title and interest
in and to such Mortgage Loan, and all security and documents relative thereto. Such assignment
shall be an assignment outright and not for security. The Master Servicer will thereupon own such
Mortgage, and all such security and documents, free of any further obligation to the Trustee or the
Certificateholders with respect thereto.

     Section 4.08. [Reserved].

     Section 4.09. [Reserved].

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ARTICLE V

THE CERTIFICATES

     Section 5.01. The Certificates

          (a) [The Class A Certificates, Class M Certificates, Class B Certificates, Class SB
Certificates and Class R Certificates shall be substantially in the forms set forth in Exhibits A,
B-1, B-2, C and D, respectively, and shall, on original issue, be executed and delivered by the
Trustee to the Certificate Registrar for authentication and delivery to or upon the order of the
Depositor upon receipt by the Trustee or one or more Custodians of the documents specified in
Section 2.01. The Class A and Class M-1 Certificates shall be issuable in minimum dollar
denominations of $[100,000] and integral multiples of $1 in excess thereof. The Class M-2
Certificates, Class M-3 Certificates, Class M-4 Certificates, Class M-5 Certificates, Class M-6
Certificates, Class M-7 Certificates, Class M-8 Certificates, Class M-9 Certificates and Class B
Certificates shall be issuable in minimum dollar denominations of $[250,000] and integral multiples
of $1 in excess thereof. The Class SB Certificates shall be issuable in registered, certificated
form in minimum percentage interests of [5.00]% and integral multiples of [0.01]% in excess
thereof. Each Class of Class R Certificates shall be issued minimum percentage interests of
[20.00]% and integral multiples of [0.01]% in excess thereof; provided, however, that one Class R
Certificate of each Class will be issuable to the REMIC Administrator as “tax matters person”
pursuant to Section 10.01(c) in a minimum denomination representing a Percentage Interest of not
less than 0.01%.

     The Certificates shall be executed by manual or facsimile signature on behalf of an authorized
officer of the Trustee. Certificates bearing the manual or facsimile signatures of individuals who
were at any time the proper officers of the Trustee shall bind the Trustee, notwithstanding that
such individuals or any of them have ceased to hold such offices prior to the authentication and
delivery of such Certificate or did not hold such offices at the date of such Certificates. No
Certificate shall be entitled to any benefit under this Agreement, or be valid for any purpose,
unless there appears on such Certificate a certificate of authentication substantially in the form
provided for herein executed by the Certificate Registrar by manual signature, and such certificate
upon any Certificate shall be conclusive evidence, and the only evidence, that such Certificate has
been duly authenticated and delivered hereunder. All Certificates shall be dated the date of their
authentication.]

          (b) The [Class A Certificates, Class R Certificates, Class M Certificates and Class B
Certificates] shall initially be issued as one or more Certificates registered in the name of the
Depository or its nominee and, except as provided below, registration of such Certificates may not
be transferred by the Trustee except to another Depository that agrees to hold such Certificates
for the respective Certificate Owners with Ownership Interests therein. The Certificate Owners
shall hold their respective Ownership Interests in and to each [Class A Certificate, Class R
Certificate, Class M Certificate and Class B Certificate], through the book-entry facilities of the
Depository and, except as provided below, shall not be entitled to Definitive Certificates in
respect of such Ownership Interests. All transfers by Certificate Owners of their respective
Ownership Interests in the Book-Entry Certificates shall be made in accordance with the procedures
established by the Depository Participant or brokerage firm

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representing such Certificate Owner. Each Depository Participant shall transfer the Ownership
Interests only in the Book-Entry Certificates of Certificate Owners it represents or of brokerage
firms for which it acts as agent in accordance with the Depository’s normal procedures.

     The Trustee, the Master Servicer and the Depositor may for all purposes (including the making
of payments due on the respective Classes of Book-Entry Certificates) deal with the Depository as
the authorized representative of the Certificate Owners with respect to the respective Classes of
Book-Entry Certificates for purposes of exercising the rights of Certificateholders hereunder. The
rights of Certificate Owners with respect to the respective Classes of Book-Entry Certificates
shall be limited to those established by law and agreements between such Certificate Owners and the
Depository Participants and brokerage firms representing such Certificate Owners. Multiple requests
and directions from, and votes of, the Depository as Holder of any Class of Book-Entry Certificates
with respect to any particular matter shall not be deemed inconsistent if they are made with
respect to different Certificate Owners. The Trustee may establish a reasonable record date in
connection with solicitations of consents from or voting by Certificateholders and shall give
notice to the Depository of such record date.

     If with respect to any Book-Entry Certificate (i)(A) the Depositor advises the Trustee in
writing that the Depository is no longer willing or able to properly discharge its responsibilities
as Depository with respect to such Book-Entry Certificate and (B) the Depositor is unable to locate
a qualified successor, or (ii)(A) the Depositor at its option advises the Trustee in writing that
it elects to terminate the book-entry system for such Book-Entry Certificate through the Depository
and (B) upon receipt of notice from the Depository of the Depositor’s election to terminate the
book-entry system for such Book-Entry Certificate, the Depository Participants holding beneficial
interests in such Book-Entry Certificates agree to initiate such termination, the Trustee shall
notify all Certificate Owners of such Book-Entry Certificate, through the Depository, of the
occurrence of any such event and of the availability of Definitive Certificates to Certificate
Owners requesting the same. Upon surrender to the Trustee of the Book-Entry Certificates by the
Depository, accompanied by registration instructions from the Depository for registration of
transfer, the Trustee shall issue the Definitive Certificates.

     In addition, if an Event of Default has occurred and is continuing, each Certificate Owner
materially adversely affected thereby may at its option request a Definitive Certificate evidencing
such Certificate Owner’s Percentage Interest in the related Class of Certificates. In order to make
such request, such Certificate Owner shall, subject to the rules and procedures of the Depository,
provide the Depository or the related Depository Participant with directions for the Certificate
Registrar to exchange or cause the exchange of the Certificate Owner’s interest in such Class of
Certificates for an equivalent Percentage Interest in fully registered definitive form. Upon
receipt by the Certificate Registrar of instructions from the Depository directing the Certificate
Registrar to effect such exchange (such instructions to contain information regarding the Class of
Certificates and the Certificate Principal Balance being exchanged, the Depository Participant
account to be debited with the decrease, the registered holder of and delivery instructions for the
Definitive Certificate, and any other information reasonably required by the Certificate
Registrar), (i) the Certificate Registrar shall instruct the Depository to reduce the related
Depository Participant’s account by the aggregate Certificate Principal Balance of the Definitive
Certificate, (ii) the Trustee shall execute and the Certificate Registrar shall

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authenticate and deliver, in accordance with the registration and delivery instructions
provided by the Depository, a Definitive Certificate evidencing such Certificate Owner’s Percentage
Interest in such Class of Certificates and (iii) the Trustee shall execute and the Certificate
Registrar shall authenticate a new Book-Entry Certificate reflecting the reduction in the aggregate
Certificate Principal Balance of such Class of Certificates by the amount of the Definitive
Certificates.

     None of the Depositor, the Master Servicer or the Trustee shall be liable for any actions
taken by the Depository or its nominee, including, without limitation, any delay in delivery of any
instructions required under this Section 5.01 and may conclusively rely on, and shall be protected
in relying on, such instructions. Upon the issuance of Definitive Certificates, all references
herein to obligations imposed upon or to be performed by the Depositor in connection with the
issuance of the Definitive Certificates pursuant to this Section 5.01 shall be deemed to be imposed
upon and performed by the Trustee, and the Trustee and the Master Servicer shall recognize the
Holders of the Definitive Certificates as Certificateholders hereunder.

          (c) Each of the Certificates is intended to be a “security” governed by Article 8 of the
Uniform Commercial Code as in effect in the State of New York and any other applicable
jurisdiction, to the extent that any of such laws may be applicable.

     Section 5.02. Registration of Transfer and Exchange of Certificates

          (a) The Trustee shall cause to be kept at one of the offices or agencies to be appointed by
the Trustee in accordance with the provisions of Section 8.12 a Certificate Register in which,
subject to such reasonable regulations as it may prescribe, the Trustee shall provide for the
registration of Certificates and of transfers and exchanges of Certificates as herein provided. The
Trustee is initially appointed Certificate Registrar for the purpose of registering Certificates
and transfers and exchanges of Certificates as herein provided. The Certificate Registrar, or the
Trustee, shall provide the Master Servicer with a certified list of Certificateholders as of each
Record Date prior to the related Determination Date.

          (b) Upon surrender for registration of transfer of any Certificate at any office or agency of
the Trustee maintained for such purpose pursuant to Section 8.12 and, in the case of any Class SB
Certificate, upon satisfaction of the conditions set forth below, the Trustee shall execute and the
Certificate Registrar shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Certificates of a like Class and aggregate Percentage Interest.

          (c) At the option of the Certificateholders, Certificates may be exchanged for other
Certificates of authorized denominations of a like Class and aggregate Percentage Interest, upon
surrender of the Certificates to be exchanged at any such office or agency. Whenever any
Certificates are so surrendered for exchange the Trustee shall execute and the Certificate
Registrar shall authenticate and deliver the Certificates of such Class which the Certificateholder
making the exchange is entitled to receive. Every Certificate presented or surrendered for transfer
or exchange shall (if so required by the Trustee or the Certificate Registrar) be duly endorsed by,
or be accompanied by a written instrument of transfer in form satisfactory to the

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Trustee and the Certificate Registrar duly executed by, the Holder thereof or his attorney
duly authorized in writing.

          (d) No transfer, sale, pledge or other disposition of a [Class B Certificate or Class SB
Certificate] shall be made unless such transfer, sale, pledge or other disposition is exempt from
the registration requirements of the Securities Act of 1933, as amended (the “1933 Act”), and any
applicable state securities laws or is made in accordance with said Act and laws. Except as
otherwise provided in this Section 5.02(d), in the event that a transfer of a Class B Certificate
or Class SB Certificate is to be made, (i) unless the Depositor directs the Trustee otherwise, the
Trustee shall require a written Opinion of Counsel acceptable to and in form and substance
satisfactory to the Trustee and the Depositor that such transfer may be made pursuant to an
exemption, describing the applicable exemption and the basis therefor, from said Act and laws or is
being made pursuant to said Act and laws, which Opinion of Counsel shall not be an expense of the
Trustee, the Trust Fund, the Depositor or the Master Servicer, and (ii) the Trustee shall require
the transferee to execute a representation letter, substantially in the form of Exhibit I hereto,
and the Trustee shall require the transferor to execute a representation letter, substantially in
the form of Exhibit J hereto, each acceptable to and in form and substance satisfactory to the
Depositor and the Trustee certifying to the Depositor and the Trustee the facts surrounding such
transfer, which representation letters shall not be an expense of the Trustee, the Trust Fund, the
Depositor or the Master Servicer. In lieu of the requirements set forth in the preceding sentence,
transfers of Class B Certificates or Class SB Certificates may be made in accordance with this
Section 5.02(d) if the prospective transferee of such a Certificate provides the Trustee and the
Master Servicer with an investment letter substantially in the form of Exhibit N attached hereto,
which investment letter shall not be an expense of the Trustee, the Depositor, or the Master
Servicer, and which investment letter states that, among other things, such transferee (i) is a
“qualified institutional buyer” as defined under Rule 144A, acting for its own account or the
accounts of other “qualified institutional buyers” as defined under Rule 144A, and (ii) is aware
that the proposed transferor intends to rely on the exemption from registration requirements under
the 1933 Act provided by Rule 144A. The Holder of a Class B Certificate or Class SB Certificate
desiring to effect any transfer, sale, pledge or other disposition shall, and does hereby agree to,
indemnify the Trustee, the Depositor, the Master Servicer and the Certificate Registrar against any
liability that may result if the transfer, sale, pledge or other disposition is not so exempt or is
not made in accordance with such federal and state laws and this Agreement. If any transfer of a
Class B Certificate held by a transferor and to be held by a transferee in book-entry form is to
made without registration under the 1933 Act, the transferor shall be deemed to have made each of
the certifications set forth in Exhibit J hereto as of the transfer date and the transferee shall
be deemed to have made each of the certifications set forth in Exhibit N hereto as of the transfer
date, in each case as if such Class B Certificate were in physical form.

          (e) (i) In the case of any Class SB Certificate presented for registration in the name of any
Person, either (A) the Trustee shall require an Opinion of Counsel acceptable to and in form and
substance satisfactory to the Trustee, the Depositor and the Master Servicer to the effect that the
purchase or holding of such Class SB Certificate is permissible under applicable law, will not
constitute or result in any non-exempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code (or comparable provisions of any subsequent enactments), and will not subject the
Trustee, the Depositor or the Master Servicer to any obligation or liability (including obligations
or liabilities under ERISA or Section 4975 of the Code) in

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addition to those undertaken in this Agreement, which Opinion of Counsel shall not be an
expense of the Trustee, the Depositor or the Master Servicer, or (B) the prospective transferee
shall be required to provide the Trustee, the Depositor and the Master Servicer with a
certification to the effect set forth in Exhibit P (with respect to a Class SB Certificate), which
the Trustee may rely upon without further inquiry or investigation, or such other certifications as
the Trustee may deem desirable or necessary in order to establish that such transferee or the
Person in whose name such registration is requested is not an employee benefit plan or other plan
or arrangement subject to the prohibited transaction provisions of ERISA or Section 4975 of the
Code, or any Person (including an insurance company investing its general accounts, an investment
manager, a named fiduciary or a trustee of any such plan) who is using “plan assets” of any such
plan to effect such acquisition (each of the foregoing, a “Plan Investor”).

               (ii) any transferee of a Class M Certificate or Class R Certificate shall be deemed to have
represented by virtue of its purchase or holding of such Class M Certificate or Class R Certificate
(or interest therein) that either (a) such transferee is not a Plan Investor, (b) it has acquired
and is holding such Certificate in reliance on U.S. Department of Labor Prohibited Transaction
Exemption (“PTE”) 94-29, as most recently amended by PTE 2002-41, 67 Fed. Reg. 54487 (Aug. 22,
2002) (the “Issuer Exemption”), and that it understands that there are certain conditions to the
availability of the Issuer Exemption, including that such Certificate must be rated, at the time of
purchase, not lower than “BBB-” (or its equivalent) by Fitch, Standard & Poor’s, Moody’s or DBRS or
(c) (x) such Transferee is an insurance company, (y) the source of funds used to purchase or hold
such Certificate (or interest therein) is an “insurance company general account” (as defined in
Prohibited Transaction Class Exemption (“PTCE”) 95-60), and (z) the conditions set forth in
Sections I and III of PTCE 95-60 have been satisfied (each entity that satisfies this clause (c), a
“Complying Insurance Company”).

               (iii) If any Class M Certificate or Class R Certificate (or any interest therein) is acquired
or held by any Person that does not satisfy the conditions described in paragraph (ii) above, then
the last preceding Transferee that either (x) is not a Plan Investor, (y) acquired such Certificate
in compliance with the Issuer Exemption or (z) is a Complying Insurance Company shall be restored,
to the extent permitted by law, to all rights and obligations as Certificate Owner thereof
retroactive to the date of such Transfer of such Class M Certificate or such Class R Certificate.
The Trustee shall be under no liability to any Person for making any payments due on such
Certificate to such preceding Transferee.

               (iv) Any purported Certificate Owner whose acquisition or holding of any Class SB
Certificate, Class R Certificate or Class M Certificate (or interest therein) was effected in
violation of the restrictions in this Section 5.02(e) shall indemnify and hold harmless the
Depositor, the Trustee, the Master Servicer, any Subservicer, any underwriter and the Trust Fund
from and against any and all liabilities, claims, costs or expenses incurred by such parties as a
result of such acquisition or holding.

          (f) (i) Each Person who has or who acquires any Ownership Interest in a Class R Certificate
shall be deemed by the acceptance or acquisition of such Ownership Interest to have agreed to be
bound by the following provisions and to have irrevocably authorized the Trustee or its designee
under clause (iii)(A) below to deliver payments to a Person other than

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such Person and to negotiate the terms of any mandatory sale under clause (iii)(B) below and
to execute all instruments of transfer and to do all other things necessary in connection with any
such sale. The rights of each Person acquiring any Ownership Interest in a Class R Certificate are
expressly subject to the following provisions:

     (A) Each Person holding or acquiring any Ownership Interest in a Class R
Certificate shall be a Permitted Transferee and shall promptly notify the Trustee of
any change or impending change in its status as a Permitted Transferee.

     (B) In connection with any proposed Transfer of any Ownership Interest in a
Class R Certificate, the Trustee shall require delivery to it, and shall not
register the Transfer of any Class R Certificate until its receipt of, (I) an
affidavit and agreement (a “Transfer Affidavit and Agreement,” in the form attached
hereto as Exhibit H-1) from the proposed Transferee, in form and substance
satisfactory to the Master Servicer, representing and warranting, among other
things, that it is a Permitted Transferee, that it is not acquiring its Ownership
Interest in the Class R Certificate that is the subject of the proposed Transfer as
a nominee, trustee or agent for any Person who is not a Permitted Transferee, that
for so long as it retains its Ownership Interest in a Class R Certificate, it will
endeavor to remain a Permitted Transferee, and that it has reviewed the provisions
of this Section 5.02(f) and agrees to be bound by them, and (II) a certificate, in
the form attached hereto as Exhibit H-2, from the Holder wishing to transfer the
Class R Certificate, in form and substance satisfactory to the Master Servicer,
representing and warranting, among other things, that no purpose of the proposed
Transfer is to impede the assessment or collection of tax.

     (C) Notwithstanding the delivery of a Transfer Affidavit and Agreement by a
proposed Transferee under clause (B) above, if a Responsible Officer of the Trustee
who is assigned to this Agreement has actual knowledge that the proposed Transferee
is not a Permitted Transferee, no Transfer of an Ownership Interest in a Class R
Certificate to such proposed Transferee shall be effected.

     (D) Each Person holding or acquiring any Ownership Interest in a Class R
Certificate shall agree (x) to require a Transfer Affidavit and Agreement from any
other Person to whom such Person attempts to transfer its Ownership Interest in a
Class R Certificate and (y) not to transfer its Ownership Interest unless it
provides a certificate to the Trustee in the form attached hereto as Exhibit H-2.

     (E) Each Person holding or acquiring an Ownership Interest in a Class R
Certificate, by purchasing an Ownership Interest in such Certificate, agrees to give
the Trustee written notice that it is a “pass-through interest holder” within the
meaning of Temporary Treasury Regulations Section 1.67-3T(a)(2)(i)(A) immediately
upon acquiring an Ownership Interest in a Class R Certificate, if it is, or is
holding an Ownership Interest in a Class R Certificate on behalf of, a “pass-through
interest holder.”

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               (ii) The Trustee shall register the Transfer of any Class R Certificate only if it shall have
received the Transfer Affidavit and Agreement, a certificate of the Holder requesting such transfer
in the form attached hereto as Exhibit H-2 and all of such other documents as shall have been
reasonably required by the Trustee as a condition to such registration. Transfers of the Class R
Certificates to Non-United States Persons and Disqualified Organizations (as defined in Section
860E(e)(5) of the Code) are prohibited.

     (A) If any Disqualified Organization shall become a holder of a Class R
Certificate, then the last preceding Permitted Transferee shall be restored, to the
extent permitted by law, to all rights and obligations as Holder thereof retroactive
to the date of registration of such Transfer of such Class R Certificate. If a
Non-United States Person shall become a holder of a Class R Certificate, then the
last preceding United States Person shall be restored, to the extent permitted by
law, to all rights and obligations as Holder thereof retroactive to the date of
registration of such Transfer of such Class R Certificate. If a transfer of a Class
R Certificate is disregarded pursuant to the provisions of Treasury Regulations
Section 1.860E-1 or Section 1.860G-3, then the last preceding Permitted Transferee
shall be restored, to the extent permitted by law, to all rights and obligations as
Holder thereof retroactive to the date of registration of such Transfer of such
Class R Certificate. The Trustee shall be under no liability to any Person for any
registration of Transfer of a Class R Certificate that is in fact not permitted by
this Section 5.02(f) or for making any payments due on such Certificate to the
holder thereof or for taking any other action with respect to such holder under the
provisions of this Agreement.

     (B) If any purported Transferee shall become a Holder of a Class R Certificate
in violation of the restrictions in this Section 5.02(f) and to the extent that the
retroactive restoration of the rights of the Holder of such Class R Certificate as
described in clause (iii)(A) above shall be invalid, illegal or unenforceable, then
the Master Servicer shall have the right, without notice to the holder or any prior
holder of such Class R Certificate, to sell such Class R Certificate to a purchaser
selected by the Master Servicer on such terms as the Master Servicer may choose.
Such purported Transferee shall promptly endorse and deliver each Class R
Certificate in accordance with the instructions of the Master Servicer. Such
purchaser may be the Master Servicer itself or any Affiliate of the Master Servicer.
The proceeds of such sale, net of the commissions (which may include commissions
payable to the Master Servicer or its Affiliates), expenses and taxes due, if any,
will be remitted by the Master Servicer to such purported Transferee. The terms and
conditions of any sale under this clause (iii)(B) shall be determined in the sole
discretion of the Master Servicer, and the Master Servicer shall not be liable to
any Person having an Ownership Interest in a Class R Certificate as a result of its
exercise of such discretion.

               (iii) The Master Servicer, on behalf of the Trustee, shall make available, upon written
request from the Trustee, all information necessary to compute any tax imposed (A) as a result of
the Transfer of an Ownership Interest in a Class R Certificate to any Person who is a Disqualified
Organization, including the information regarding “excess

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inclusions” of such Class R Certificates required to be provided to the Internal Revenue
Service and certain Persons as described in Treasury Regulations Sections 1.860D-1(b)(5) and
1.860E-2(a)(5), and (B) as a result of any regulated investment company, real estate investment
trust, common trust fund, partnership, trust, estate or organization described in Section 1381 of
the Code that holds an Ownership Interest in a Class R Certificate having as among its record
holders at any time any Person who is a Disqualified Organization. Reasonable compensation for
providing such information may be required by the Master Servicer from such Person.

               (iv) The provisions of this Section 5.02(f) set forth prior to this clause (v) may be
modified, added to or eliminated, provided that there shall have been delivered to the Trustee the
following:

     (A) Written notification from each Rating Agency to the effect that the
modification, addition to or elimination of such provisions will not cause such
Rating Agency to downgrade its then-current ratings, if any, of any Class of [Class
A Certificates, Class M Certificates or Class B Certificates] below the lower of the
then-current rating or the rating assigned to such Certificates as of the Closing
Date by such Rating Agency; and

     (B) A certificate of the Master Servicer stating that the Master Servicer has
received an Opinion of Counsel, in form and substance satisfactory to the Master
Servicer, to the effect that such modification, addition to or absence of such
provisions will not cause any REMIC created hereunder to cease to qualify as a REMIC
and will not cause (x) any REMIC created hereunder to be subject to an entity-level
tax caused by the Transfer of any Class R Certificate to a Person that is a
Disqualified Organization or (y) a Certificateholder or another Person to be subject
to a REMIC-related tax caused by the Transfer of a Class R Certificate to a Person
that is not a Permitted Transferee.

          (g) No service charge shall be made for any transfer or exchange of Certificates of any Class,
but the Trustee may require payment of a sum sufficient to cover any tax or governmental charge
that may be imposed in connection with any transfer or exchange of Certificates.

          (h) All Certificates surrendered for transfer and exchange shall be destroyed by the
Certificate Registrar.

     Section 5.03. Mutilated, Destroyed, Lost or Stolen Certificates

     If (i) any mutilated Certificate is surrendered to the Certificate Registrar, or the Trustee
and the Certificate Registrar receive evidence to their satisfaction of the destruction, loss or
theft of any Certificate, and (ii) there is delivered to the Trustee and the Certificate Registrar
such security or indemnity as may be required by them to save each of them harmless, then, in the
absence of notice to the Trustee or the Certificate Registrar that such Certificate has been
acquired by a bona fide purchaser, the Trustee shall execute and the Certificate Registrar shall
authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Certificate, a new Certificate of like tenor, Class and Percentage Interest but bearing a

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number not contemporaneously outstanding. Upon the issuance of any new Certificate under this
Section, the Trustee may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other expenses (including the
fees and expenses of the Trustee and the Certificate Registrar) connected therewith. Any duplicate
Certificate issued pursuant to this Section shall constitute complete and indefeasible evidence of
ownership in the Trust Fund, as if originally issued, whether or not the lost, stolen or destroyed
Certificate shall be found at any time.

     Section 5.04. Persons Deemed Owners

     Prior to due presentation of a Certificate for registration of transfer, the Depositor, the
Master Servicer, the Trustee, the Certificate Registrar and any agent of the Depositor, the Master
Servicer, the Trustee or the Certificate Registrar may treat the Person in whose name any
Certificate is registered as the owner of such Certificate for the purpose of receiving
distributions pursuant to Section 4.02 and for all other purposes whatsoever, except as and to the
extent provided in the definition of “Certificateholder” and in Section 4.09, and neither the
Depositor, the Master Servicer, the Trustee, the Certificate Registrar nor any agent of the
Depositor, the Master Servicer, the Trustee or the Certificate Registrar shall be affected by
notice to the contrary except as provided in Section 5.02(f).

     Section 5.05. Appointment of Paying Agent

     The Trustee may appoint a Paying Agent for the purpose of making distributions to
Certificateholders pursuant to Section 4.02. In the event of any such appointment, on or prior to
each Distribution Date the Master Servicer on behalf of the Trustee shall deposit or cause to be
deposited with the Paying Agent a sum sufficient to make the payments to Certificateholders in the
amounts and in the manner provided for in Section 4.02, such sum to be held in trust for the
benefit of Certificateholders.

     The Trustee shall cause each Paying Agent to execute and deliver to the Trustee an instrument
in which such Paying Agent shall agree with the Trustee that such Paying Agent will hold all sums
held by it for the payment to Certificateholders in trust for the benefit of the Certificateholders
entitled thereto until such sums shall be paid to such Certificateholders. Any sums so held by such
Paying Agent shall be held only in Eligible Accounts to the extent such sums are not distributed to
the Certificateholders on the date of receipt by such Paying Agent.

     Section 5.06. U.S.A. Patriot Act Compliance

     In order for it to comply with its duties under the U.S.A. Patriot Act, the Trustee may obtain
and verify certain information from the other parties hereto, including but not limited to such
parties’ name, address and other identifying information.

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ARTICLE VI

THE DEPOSITOR AND THE MASTER SERVICER

     Section 6.01. Respective Liabilities of the Depositor and the Master Servicer

     The Depositor and the Master Servicer shall each be liable in accordance herewith only to the
extent of the obligations specifically and respectively imposed upon and undertaken by the
Depositor and the Master Servicer herein. By way of illustration and not limitation, the Depositor
is not liable for the servicing and administration of the Mortgage Loans, nor is it obligated by
Section 7.01 or Section 10.01 to assume any obligations of the Master Servicer or to appoint a
designee to assume such obligations, nor is it liable for any other obligation hereunder that it
may, but is not obligated to, assume unless it elects to assume such obligation in accordance
herewith.

     Section 6.02. Merger or Consolidation of the Depositor or the Master Servicer;
Assignment of Rights and Delegation of Duties by Master Servicer

          (a) The Depositor and the Master Servicer shall each keep in full effect its existence, rights
and franchises as a limited liability company under the laws of the state of its formation, and
will each obtain and preserve its qualification to do business as a foreign limited liability
company in each jurisdiction in which such qualification is or shall be necessary to protect the
validity and enforceability of this Agreement, the Certificates or any of the Mortgage Loans and to
perform its respective duties under this Agreement.

          (b) Any Person into which the Depositor or the Master Servicer may be merged or converted or
with which it may be consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Depositor or the Master Servicer shall be a party, or any Person
succeeding to the business of the Depositor or the Master Servicer, shall be the successor of the
Depositor or the Master Servicer, as the case may be, hereunder, without the execution or filing of
any paper or any further act on the part of any of the parties hereto, anything in this Section
6.02(b) to the contrary notwithstanding; provided, however, that the successor or surviving Person
to the Master Servicer shall be qualified to service mortgage loans on behalf of Fannie Mae or
Freddie Mac; and provided further that the Master Servicer (or the Depositor, as applicable) shall
notify each Rating Agency (in accordance with Section 11.10) of any such merger, conversion or
consolidation at least 30 days prior to the effective date of such event.

          (c) Notwithstanding anything else in this Section 6.02 and Section 6.04 to the contrary, the
Master Servicer may assign its rights and delegate its duties and obligations under this Agreement;
provided that the Person accepting such assignment or delegation shall be a Person which is
qualified to service mortgage loans on behalf of Fannie Mae or Freddie Mac, is reasonably
satisfactory to the Trustee and the Depositor, is willing to service the Mortgage Loans and
executes and delivers to the Depositor and the Trustee an agreement, in form and substance
reasonably satisfactory to the Depositor and the Trustee, which contains an assumption by such
Person of the due and punctual performance and observance of each covenant and condition to be
performed or observed by the Master Servicer under this Agreement; provided, further, that

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each Rating Agency’s rating of the Classes of Certificates that have been rated in effect
immediately prior to such assignment and delegation will not be qualified, reduced or withdrawn as
a result of such assignment and delegation (as evidenced by a letter to such effect from each
Rating Agency). In the case of any such assignment and delegation, the Master Servicer shall be
released from its obligations under this Agreement, except that the Master Servicer shall remain
liable for all liabilities and obligations incurred by it as Master Servicer hereunder prior to the
satisfaction of the conditions to such assignment and delegation set forth in the next preceding
sentence. Notwithstanding the foregoing, in the event of a pledge or assignment by the Master
Servicer solely of its rights to purchase all assets of the Trust Fund under Section 9.01(a) (or,
if so specified in Section 9.01(a), its rights to purchase the Mortgage Loans and property acquired
related to such Mortgage Loans or its rights to purchase the Certificates related thereto), the
provisos of the first sentence of this paragraph will not apply.

     Section 6.03. Limitation on Liability of the Depositor, the Master Servicer and
Others

     None of the Depositor, the Master Servicer or any of the directors, officers, employees or
agents of the Depositor or the Master Servicer shall be under any liability to the Trust Fund or
the Certificateholders for any action taken or for refraining from the taking of any action in good
faith pursuant to this Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Depositor, the Master Servicer or any such Person against any breach of
warranties, representations or covenants made herein or any liability which would otherwise be
imposed by reason of willful misfeasance, bad faith or gross negligence in the performance of
duties or by reason of reckless disregard of obligations and duties hereunder. The Depositor, the
Master Servicer and any director, officer, employee or agent of the Depositor or the Master
Servicer may rely in good faith on any document of any kind prima facie properly executed and
submitted by any Person respecting any matters arising hereunder. The Depositor, the Master
Servicer and any director, officer, employee or agent of the Depositor or the Master Servicer shall
be indemnified by the Trust Fund and held harmless against any loss, liability or expense incurred
in connection with any legal action relating to this Agreement or the Certificates, other than any
loss, liability or expense related to any specific Mortgage Loan or Mortgage Loans (except as any
such loss, liability or expense shall be otherwise reimbursable pursuant to this Agreement) and any
loss, liability or expense incurred by reason of willful misfeasance, bad faith or gross negligence
in the performance of duties hereunder or by reason of reckless disregard of obligations and duties
hereunder.

     Neither the Depositor nor the Master Servicer shall be under any obligation to appear in,
prosecute or defend any legal or administrative action, proceeding, hearing or examination that is
not incidental to its respective duties under this Agreement and which in its opinion may involve
it in any expense or liability; provided, however, that the Depositor or the Master Servicer may in
its discretion undertake any such action, proceeding, hearing or examination that it may deem
necessary or desirable in respect to this Agreement and the rights and duties of the parties hereto
and the interests of the Certificateholders hereunder. In such event, the legal expenses and costs
of such action, proceeding, hearing or examination and any liability resulting therefrom shall be
expenses, costs and liabilities of the Trust Fund, and the Depositor and the Master Servicer shall
be entitled to be reimbursed therefor out of amounts attributable to the Mortgage Loans on deposit
in the Custodial Account as provided by Section 3.10 and, on the Distribution Date(s) following
such reimbursement, the aggregate of such expenses and costs shall be allocated in

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reduction of the Accrued Certificate Interest on each Class entitled thereto in the same
manner as if such expenses and costs constituted a Prepayment Interest Shortfall.

     Section 6.04. Depositor and Master Servicer Not to Resign

     Subject to the provisions of Section 6.02, neither the Depositor nor the Master Servicer shall
resign from its respective obligations and duties hereby imposed on it except upon determination
that its duties hereunder are no longer permissible under applicable law. Any such determination
permitting the resignation of the Depositor or the Master Servicer shall be evidenced by an Opinion
of Counsel (at the expense of the resigning party) to such effect delivered to the Trustee. No
such resignation by the Master Servicer shall become effective until the Trustee or a successor
servicer shall have assumed the Master Servicer’s responsibilities and obligations in accordance
with Section 7.02.

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ARTICLE VII

DEFAULT

     Section 7.01. Events of Default

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

	 	(i)	 	the Master Servicer shall fail to distribute or cause to be distributed to
Holders of Certificates of any Class any distribution required to be made under the
terms of the Certificates of such Class and this Agreement and, in either case, such
failure shall continue unremedied for a period of 5 days after the date upon which
written notice of such failure, requiring such failure to be remedied, shall have been
given to the Master Servicer by the Trustee or the Depositor or to the Master Servicer,
the Depositor and the Trustee by the Holders of Certificates of such Class evidencing
Percentage Interests aggregating not less than 25%; or

	 	(ii)	 	the Master Servicer shall fail to observe or perform in any material respect
any other of the covenants or agreements on the part of the Master Servicer contained
in the Certificates of any Class or in this Agreement and such failure shall continue
unremedied for a period of 30 days (except that such number of days shall be 15 in the
case of a failure to pay the premium for any Required Insurance Policy) after the date
on which written notice of such failure, requiring the same to be remedied, shall have
been given to the Master Servicer by the Trustee or the Depositor, or to the Master
Servicer, the Depositor and the Trustee by the Holders of Certificates of any Class
evidencing, as to such Class, Percentage Interests aggregating not less than 25%; or

	 	(iii)	 	a decree or order of a court or agency or supervisory authority having
jurisdiction in the premises in an involuntary case under any present or future federal
or state bankruptcy, insolvency or similar law or appointing a conservator or receiver
or liquidator in any insolvency, readjustment of debt, marshalling of assets and
liabilities or similar proceedings, or for the winding-up or liquidation of its
affairs, shall have been entered against the Master Servicer and such decree or order
shall have remained in force undischarged or unstayed for a period of 60 days; or

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

	 	(v)	 	the Master Servicer shall admit in writing its inability to pay its debts
generally as they become due, file a petition to take advantage of, or commence a
voluntary case under, any applicable insolvency or reorganization statute, make an

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	 	 	 	assignment for the benefit of its creditors, or voluntarily suspend payment of its
obligations; or

	 	(vi)	 	the Master Servicer shall notify the Trustee pursuant to Section 4.04(b) that
it is unable to deposit in the Certificate Account an amount equal to the required P&I
Advance for the applicable Distribution Date.

     If an Event of Default described in clauses (i)-(v) of this Section shall occur, then, and in
each and every such case, so long as such Event of Default shall not have been remedied, either the
Depositor or the Trustee shall at the direction of Holders of Certificates entitled to at least 51%
of the Voting Rights, by notice in writing to the Master Servicer (and to the Depositor if given by
the Trustee or to the Trustee if given by the Depositor), terminate all of the rights and
obligations of the Master Servicer under this Agreement and in and to the Mortgage Loans and the
proceeds thereof, other than its rights as a Certificateholder hereunder; provided, however, that a
successor to the Master Servicer is appointed pursuant to Section 7.02 and such successor Master
Servicer shall have accepted the duties of Master Servicer effective upon the resignation of the
Master Servicer. If an Event of Default described in clause (vi) hereof shall occur, the Trustee
shall, by notice to the Master Servicer and the Depositor, immediately terminate all of the rights
and obligations of the Master Servicer under this Agreement and in and to the Mortgage Loans and
the proceeds thereof, other than its rights as a Certificateholder hereunder as provided in Section
4.04(b). On or after the receipt by the Master Servicer of such written notice, all authority and
power of the Master Servicer under this Agreement, whether with respect to the Certificates (other
than as a Holder thereof) or the Mortgage Loans or otherwise, shall subject to Section 7.02 pass to
and be vested in the Trustee or the Trustee’s designee appointed pursuant to Section 7.02; and,
without limitation, the Trustee is hereby authorized and empowered to execute and deliver, on
behalf of the Master Servicer, as attorney-in-fact or otherwise, any and all documents and other
instruments, and to 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. The Master Servicer agrees to
cooperate with the Trustee as successor Master Servicer in effecting the termination of the Master
Servicer’s responsibilities and rights hereunder, including, without limitation, the transfer to
the Trustee or its designee for administration by it of all cash amounts which shall at the time be
credited to the Custodial Account or the Certificate Account or thereafter be received with respect
to the Mortgage Loans. No such termination shall release the Master Servicer for any liability that
it would otherwise have hereunder for any act or omission prior to the effective time of such
termination.

     Notwithstanding any termination of the activities of [_________________] in its capacity as
Master Servicer hereunder, [_________________] shall be entitled to receive, out of any late
collection of a Monthly Payment on a Mortgage Loan which was due prior to the notice terminating
[_________________]’s rights and obligations as Master Servicer hereunder and received after such
notice, that portion to which [_________________] would have been entitled pursuant to Sections
3.10(a)(ii), (vi) and (vii) as well as its Servicing Fee in respect thereof, and any other amounts
payable to [_________________] hereunder the entitlement to which arose prior to the termination of
its activities hereunder. Upon the termination of [_________________] as Master Servicer hereunder
the Depositor shall deliver to the Trustee, as successor Master Servicer, a copy of the Program
Guide.

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     Section 7.02. Trustee or Depositor to Act; Appointment of Successor

          (a) On and after the time the Master Servicer receives a notice of termination pursuant to
Section 7.01 or resigns in accordance with Section 6.04, the Trustee or, upon notice to the
Depositor and with the Depositor’s consent a designee (which meets the standards set forth below)
of the Trustee, shall be the successor in all respects to the Master Servicer in its capacity as
servicer under this Agreement and the transactions set forth or provided for herein and shall be
subject to all the responsibilities, duties and liabilities relating thereto placed on the Master
Servicer (except for the responsibilities, duties and liabilities contained in Sections 2.02 and
2.03(a), excluding the duty to notify related Subservicers as set forth in such Sections, and its
obligations to deposit amounts in respect of losses incurred prior to such notice or termination on
the investment of funds in the Custodial Account or the Certificate Account pursuant to Sections
3.07(c) and 4.01(b) by the terms and provisions hereof); provided, however, that any failure to
perform such duties or responsibilities caused by the preceding Master Servicer’s failure to
provide information required by Section 4.04 shall not be considered a default by the Trustee
hereunder, as successor Master Servicer. If the Trustee has become the successor to the Master
Servicer in accordance with Section 6.04 or Section 7.01, then notwithstanding the above, the
Trustee may, if it shall be unwilling to so act, or shall, if it is unable to so act, appoint, or
petition a court of competent jurisdiction to appoint, any established housing and home finance
institution, which is also a Fannie Mae or Freddie Mac-approved mortgage servicing institution,
having a net worth of not less than $10,000,000 as the successor to the Master Servicer hereunder
in the assumption of all or any part of the responsibilities, duties or liabilities of the Master
Servicer hereunder. Pending appointment of a successor to the Master Servicer hereunder, the
Trustee shall become successor to the Master Servicer and shall act in such capacity as hereinabove
provided. As compensation therefor, the Trustee, as successor Master Servicer, shall be entitled
to all funds relating to the Mortgage Loans which the Master Servicer would have been entitled to
charge to the Custodial Account or the Certificate Account if the Master Servicer had continued to
act hereunder and, in addition, shall be entitled to the income from any Permitted Investments made
with amounts attributable to the Mortgage Loans held in the Custodial Account or the Certificate
Account. In connection with such appointment and assumption, the Trustee may make such
arrangements for the compensation of such successor out of payments on Mortgage Loans as it and
such successor shall agree; provided, however, that no such compensation shall be in excess of that
permitted the initial Master Servicer hereunder. The Depositor, the Trustee, the Custodian and
such successor shall take such action, consistent with this Agreement, as shall be necessary to
effectuate any such succession. The Servicing Fee for any successor Master Servicer appointed
pursuant to this Section 7.02 will be lowered with respect to those Mortgage Loans, if any, where
the Subservicing Fee accrues at a rate of less than 0.200% per annum in the event that the
successor Master Servicer is not servicing such Mortgage Loans directly and it is necessary to
raise the related Subservicing Fee to a rate of 0.200% per annum in order to hire a Subservicer
with respect to such Mortgage Loans.

          (b) In connection with the termination or resignation of the Master Servicer hereunder, either
(i) the successor Master Servicer, including the Trustee if the Trustee is acting as successor
Master Servicer, shall represent and warrant that it is a member of MERS in good standing and shall
agree to comply in all material respects with the rules and procedures of MERS in connection with
the servicing of the Mortgage Loans that are registered with MERS, in which case the predecessor
Master Servicer shall cooperate with the successor Master Servicer in

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causing MERS to revise its records to reflect the transfer of servicing to the successor
Master Servicer as necessary under MERS’ rules and regulations, or (ii) the predecessor Master
Servicer shall cooperate with the successor Master Servicer in causing MERS to execute and deliver
an assignment of Mortgage in recordable form to transfer the Mortgage from MERS to the Trustee and
to execute and deliver such other notices, documents and other instruments as may be necessary or
desirable to effect a transfer of such Mortgage Loan or servicing of such Mortgage Loan on the
MERS® System to the successor Master Servicer. The predecessor Master Servicer shall file or cause
to be filed any such assignment in the appropriate recording office. The predecessor Master
Servicer shall bear any and all fees of MERS, costs of preparing any assignments of Mortgage, and
fees and costs of filing any assignments of Mortgage that may be required under this subsection
(b). The successor Master Servicer shall cause such assignment to be delivered to the Trustee or
the Custodian promptly upon receipt of the original with evidence of recording thereon or a copy
certified by the public recording office in which such assignment was recorded.

     Section 7.03. Notification to Certificateholders

          (a) Upon any such termination or appointment of a successor to the Master Servicer, the
Trustee shall give prompt written notice thereof to the Certificateholders at their respective
addresses appearing in the Certificate Register.

          (b) Within 60 days after the occurrence of any Event of Default, the Trustee shall transmit by
mail to all Holders of Certificates notice of each such Event of Default hereunder known to the
Trustee, unless such Event of Default shall have been cured or waived as provided in Section 7.04
hereof.

     Section 7.04. Waiver of Events of Default

     The Holders representing at least 66% of the Voting Rights of Certificates affected by a
default or Event of Default hereunder may waive any default or Event of Default; provided, however,
that (a) a default or Event of Default under clause (i) of Section 7.01 may be waived only by all
of the Holders of Certificates affected by such default or Event of Default and (b) no waiver
pursuant to this Section 7.04 shall affect the Holders of Certificates in the manner set forth in
Section 11.01(b)(i), (ii) or (iii). Upon any such waiver of a default or Event of Default by the
Holders representing the requisite percentage of Voting Rights of Certificates affected by such
default or Event of Default such default or Event of Default shall cease to exist and shall be
deemed to have been remedied for every purpose hereunder. No such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent thereon except to
the extent expressly so waived.

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ARTICLE VIII

CONCERNING THE TRUSTEE

     Section 8.01. Duties of Trustee

          (a) The Trustee, prior to the occurrence of an Event of Default and after the curing or waiver
of all Events of Default which may have occurred, undertakes to perform such duties and only such
duties as are specifically set forth in this Agreement. In case an Event of Default has occurred
(which has not been cured or waived), the Trustee shall exercise such of the rights and powers
vested in it by this Agreement, and use the same degree of care and skill in their exercise as a
prudent investor would exercise or use under the circumstances in the conduct of such investor’s
own affairs.

          (b) The Trustee, upon receipt of all resolutions, certificates, statements, opinions, reports,
documents, orders or other instruments furnished to the Trustee which are specifically required to
be furnished pursuant to any provision of this Agreement, shall examine them to determine whether
they conform to the requirements of this Agreement. The Trustee shall notify the Certificateholders
of any such documents which do not materially conform to the requirements of this Agreement in the
event that the Trustee, after so requesting, does not receive satisfactorily corrected documents.

     The Trustee shall forward or cause to be forwarded in a timely fashion the notices, reports
and statements required to be forwarded by the Trustee pursuant to Sections 4.03, 7.03, and 10.01.
The Trustee shall furnish in a timely fashion to the Master Servicer such information as the Master
Servicer may reasonably request from time to time for the Master Servicer to fulfill its duties as
set forth in this Agreement. The Trustee covenants and agrees that it shall perform its
obligations hereunder in a manner so as to maintain the status of each REMIC created hereunder as a
REMIC under the REMIC Provisions and (subject to Section 10.01(f)) to prevent the imposition of any
federal, state or local income, prohibited transaction, contribution or other tax on the Trust Fund
to the extent that maintaining such status and avoiding such taxes are reasonably within the
control of the Trustee and are reasonably within the scope of its duties under this Agreement.

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

               (i) Prior to the occurrence of an Event of Default, and after the curing or waiver of all such
Events of Default which may have occurred, the duties and obligations of the Trustee shall be
determined solely by the express provisions of this Agreement, the Trustee shall not be liable
except for the performance of such duties and obligations as are specifically set forth in this
Agreement, no implied covenants or obligations shall be read into this Agreement against the
Trustee and, in the absence of bad faith on the part of the Trustee, the Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon
any certificates or opinions furnished to the Trustee by the

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Depositor or the Master Servicer and which on their face, do not contradict the requirements
of this Agreement;

               (ii) The Trustee shall not be personally liable for an error of judgment made in good faith by
a Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that the
Trustee was negligent in ascertaining the pertinent facts;

               (iii) The Trustee shall not be personally liable with respect to any action taken, suffered or
omitted to be taken by it in good faith in accordance with the direction of the Certificateholders
holding Certificates which evidence, Percentage Interests aggregating not less than 25% of the
affected Classes as to the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this
Agreement;

               (iv) The Trustee shall not be charged with knowledge of any default (other than a default in
payment to the Trustee) specified in clauses (i) and (ii) of Section 7.01 or an Event of Default
under clauses (iii), (iv) and (v) of Section 7.01 unless a Responsible Officer of the Trustee
assigned to and working in the Corporate Trust Office obtains actual knowledge of such failure or
event or the Trustee receives written notice of such failure or event at its Corporate Trust Office
from the Master Servicer, the Depositor or any Certificateholder; and

               (v) Except to the extent provided in Section 7.02, no provision in this Agreement shall
require the Trustee to expend or risk its own funds (including, without limitation, the making of
any Advance) or otherwise incur any personal financial liability in the performance of any of its
duties as Trustee hereunder, or in the exercise of any of its rights or powers, if the Trustee
shall have reasonable grounds for believing that repayment of funds or adequate indemnity against
such risk or liability is not reasonably assured to it.

          (d) The Trustee shall timely pay, from its own funds, the amount of any and all federal, state
and local taxes imposed on the Trust Fund or its assets or transactions including, without
limitation, (A) “prohibited transaction” penalty taxes as defined in Section 860F of the Code, if,
when and as the same shall be due and payable, (B) any tax on contributions to a REMIC after the
Closing Date imposed by Section 860G(d) of the Code and (C) any tax on “net income from foreclosure
property” as defined in Section 860G(c) of the Code, but only if such taxes arise out of a breach
by the Trustee of its obligations hereunder, which breach constitutes negligence or willful
misconduct of the Trustee.

     Section 8.02. Certain Matters Affecting the Trustee

          (a) Except as otherwise provided in Section 8.01:

               (i) The Trustee may rely and shall be protected in acting or refraining from acting upon any
resolution, Officers’ Certificate, certificate of auditors or any other certificate, statement,
instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or
document believed by it to be genuine and to have been signed or presented by the proper party or
parties;

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               (ii) The Trustee may consult with counsel and any Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken or suffered or omitted by it
hereunder in good faith and in accordance with such Opinion of Counsel;

               (iii) The Trustee shall be under no obligation to exercise any of the trusts or powers vested
in it by this Agreement or to institute, conduct or defend any litigation hereunder or in relation
hereto at the request, order or direction of any of the Certificateholders pursuant to the
provisions of this Agreement, unless such Certificateholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities which may be incurred
therein or thereby; nothing contained herein shall, however, relieve the Trustee of the obligation,
upon the occurrence of an Event of Default (which has not been cured), to exercise such of the
rights and powers vested in it by this Agreement, and to use the same degree of care and skill in
their exercise as a prudent investor would exercise or use under the circumstances in the conduct
of such investor’s own affairs;

               (iv) The Trustee shall not be personally liable for any action taken, suffered or omitted by
it in good faith and believed by it to be authorized or within the discretion or rights or powers
conferred upon it by this Agreement;

               (v) Prior to the occurrence of an Event of Default hereunder and after the curing of all
Events of Default which may have occurred, the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval, bond or other paper or document, unless directed
in writing so to do by the Holders of Certificates evidencing not less than 50% of the Voting
Rights; provided, however, that if the payment within a reasonable time to the Trustee of the
costs, expenses or liabilities likely to be incurred by it in the making of such investigation is,
in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it
by the terms of this Agreement, the Trustee may require reasonable indemnity against such expense
or liability as a condition to so proceeding. The reasonable expense of every such examination
shall be paid by the Master Servicer, if an Event of Default shall have occurred and is continuing,
and otherwise by the Certificateholder requesting the investigation;

               (vi) The Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys provided that the Trustee shall
remain liable for any acts of such agents or attorneys; and

               (vii) To the extent authorized under the Code and the regulations promulgated thereunder, each
Holder of a Class R Certificate hereby irrevocably appoints and authorizes the Trustee to be its
attorney-in-fact for purposes of signing any Tax Returns required to be filed on behalf of the
Trust Fund. The Trustee shall sign on behalf of the Trust Fund and deliver to the Master Servicer
in a timely manner any Tax Returns prepared by or on behalf of the Master Servicer that the Trustee
is required to sign as determined by the Master Servicer pursuant to applicable federal, state or
local tax laws, provided that the Master Servicer shall indemnify the Trustee for signing any such
Tax Returns that contain errors or omissions.

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          (b) Following the issuance of the Certificates (and except as provided for in Section 2.04),
the Trustee shall not accept any contribution of assets to the Trust Fund unless (subject to
Section 10.01(f)) it shall have obtained or been furnished with an Opinion of Counsel to the effect
that such contribution will not (i) cause any REMIC created hereunder to fail to qualify as a REMIC
at any time that any Certificates are outstanding or (ii) cause the Trust Fund to be subject to any
federal tax as a result of such contribution (including the imposition of any federal tax on
“prohibited transactions” imposed under Section 860F(a) of the Code).

     Section 8.03. Trustee Not Liable for Certificates or Mortgage Loans

     The recitals contained herein and in the Certificates (other than the execution of the
Certificates and relating to the acceptance and receipt of the Mortgage Loans) shall be taken as
the statements of the Depositor or the Master Servicer as the case may be, and the Trustee assumes
no responsibility for their correctness. The Trustee makes no representations as to the validity or
sufficiency of this Agreement or of the Certificates (except that the Certificates shall be duly
and validly executed and authenticated by it as Certificate Registrar) or of any Mortgage Loan or
related document, or of MERS or the MERS® System. Except as otherwise provided herein, the Trustee
shall not be accountable for the use or application by the Depositor or the Master Servicer of any
of the Certificates or of the proceeds of such Certificates, or for the use or application of any
funds paid to the Depositor or the Master Servicer in respect of the Mortgage Loans or deposited in
or withdrawn from the Custodial Account or the Certificate Account by the Depositor or the Master
Servicer.

     Section 8.04. Trustee May Own Certificates

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

     Section 8.05. Master Servicer to Pay Trustee’s Fees and Expenses;
Indemnification

          (a) The Master Servicer covenants and agrees to pay to the Trustee and any co-trustee from
time to time, and the Trustee and any co-trustee shall be entitled to, reasonable compensation
(which shall not be limited by any provision of law in regard to the compensation of a trustee of
an express trust) for all services rendered by each of them in the execution of the trusts hereby
created and in the exercise and performance of any of the powers and duties hereunder of the
Trustee and any co-trustee, and the Master Servicer shall pay or reimburse the Trustee and any
co-trustee upon request for all reasonable expenses, disbursements and advances incurred or made by
the Trustee or any co-trustee in accordance with any of the provisions of this Agreement (including
the reasonable compensation and the expenses and disbursements of its counsel and of all persons
not regularly in its employ, and the expenses incurred by the Trustee or any co-trustee in
connection with the appointment of an office or agency pursuant to Section 8.12) except any such
expense, disbursement or advance as may arise from its negligence or bad faith.

          (b) The Master Servicer agrees to indemnify the Trustee for, and to hold the Trustee harmless
against, any loss, liability or expense incurred without negligence or willful misconduct on its
part, arising out of, or in connection with, the acceptance and administration of

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the Trust Fund, including its obligation to execute the DTC Letter in its individual capacity,
and including the costs and expenses (including reasonable legal fees and expenses) of defending
itself against any claim in connection with the exercise or performance of any of its powers or
duties under this Agreement, and the Master Servicer further agrees to indemnify the Trustee for,
and to hold the Trustee harmless against, any loss, liability or expense arising out of, or in
connection with, the provisions set forth in the last paragraph of Section 2.01(b) hereof,
including without limitation, all costs, liabilities and expenses (including reasonable legal fees
and expenses) of investigating and defending itself against any claim, action or proceeding,
pending or threatened, relating to the provisions of such paragraph, provided, that

               (i) with respect to any such claim, the Trustee shall have given the Master Servicer written
notice thereof promptly after the Trustee shall have actual knowledge thereof;

               (ii) while maintaining control over its own defense, the Trustee shall cooperate and consult
fully with the Master Servicer in preparing such defense; and

               (iii) notwithstanding anything in this Agreement to the contrary, the Master Servicer shall
not be liable for settlement of any claim by the Trustee entered into without the prior consent of
the Master Servicer which consent shall not be unreasonably withheld.

     No termination of this Agreement shall affect the obligations created by this Section 8.05(b)
of the Master Servicer to indemnify the Trustee under the conditions and to the extent set forth
herein.

     Notwithstanding the foregoing, the indemnification provided by the Master Servicer in this
Section 8.05(b) shall not pertain to any loss, liability or expense of the Trustee, including the
costs and expenses of defending itself against any claim, incurred in connection with any actions
taken by the Trustee at the direction of Certificateholders pursuant to the terms of this
Agreement.

     Section 8.06. Eligibility Requirements for Trustee

     The Trustee hereunder shall at all times be a national banking association or a New York
banking corporation having its principal office in a state and city acceptable to the Depositor and
organized and doing business under the laws of such state or the United States of America,
authorized under such laws to exercise corporate trust powers, having a combined capital and
surplus of at least $50,000,000 and subject to supervision or examination by federal or state
authority and having a sufficient rating so as to maintain the then current ratings of the
Certificates. If such corporation or national banking association publishes reports of condition at
least annually, pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for purposes of this Section the combined capital and surplus of such corporation
shall be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. In case at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section, the Trustee shall resign immediately in the manner and with
the effect specified in Section 8.07.

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     Section 8.07. Resignation and Removal of the Trustee

          (a) The Trustee may at any time resign and be discharged from the trusts hereby created by
giving written notice thereof to the Depositor and the Master Servicer. Upon receiving such notice
of resignation, the Depositor shall promptly appoint a successor trustee by written instrument, in
duplicate, one copy of which instrument shall be delivered to the resigning Trustee and one copy to
the successor trustee. If no successor trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation then the resigning
Trustee may petition any court of competent jurisdiction for the appointment of a successor
trustee.

          (b) If at any time the Trustee shall cease to be eligible in accordance with the provisions of
Section 8.06 and shall fail to resign after written request therefor by the Depositor, or if at any
time the Trustee shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or a
receiver of the Trustee or of its property shall be appointed, or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Depositor may remove the Trustee and appoint a successor
trustee by written instrument, in duplicate, one copy of which instrument shall be delivered to the
Trustee so removed and one copy to the successor trustee. In addition, in the event that the
Depositor determines that the Trustee has failed (i) to distribute or cause to be distributed to
Certificateholders any amount required to be distributed hereunder, if such amount is held by the
Trustee or its Paying Agent (other than the Master Servicer or the Depositor) for distribution or
(ii) to otherwise observe or perform in any material respect any of its covenants, agreements or
obligations hereunder, and such failure shall continue unremedied for a period of 5 days (in
respect of clause (i) above) or 30 days (in respect of clause (ii) above, other than any failure to
comply with the provisions of Article XII, in which case no grace period shall be applicable) after
the date on which written notice of such failure, requiring that the same be remedied, shall have
been given to the Trustee by the Depositor, then the Depositor, which consent shall not be
unreasonably withheld, may remove the Trustee and appoint a successor trustee by written instrument
delivered as provided in the preceding sentence. In connection with the appointment of a successor
trustee pursuant to the preceding sentence, the Depositor shall, on or before the date on which any
such appointment becomes effective, obtain from each Rating Agency written confirmation that the
appointment of any such successor trustee will not result in the reduction of the ratings on any
Class of the Certificates below the lesser of the then current or original ratings on such
Certificates.

          (c) The Holders of Certificates entitled to at least 51% of the Voting Rights may at any time
remove the Trustee and appoint a successor trustee by written instrument or instruments, in
triplicate, signed by such Holders or their attorneys-in-fact duly authorized, one complete set of
which instruments shall be delivered to the Depositor, one complete set to the Trustee so removed
and one complete set to the successor so appointed.

          (d) Any resignation or removal of the Trustee and appointment of a successor trustee pursuant
to any of the provisions of this Section shall become effective upon acceptance of appointment by
the successor trustee as provided in Section 8.08.

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     Section 8.08. Successor Trustee

          (a) Any successor trustee appointed as provided in Section 8.07 shall execute, acknowledge and
deliver to the Depositor and to its predecessor trustee an instrument accepting such appointment
hereunder, and thereupon the resignation or removal of the predecessor trustee shall become
effective and such successor trustee shall become effective and such successor trustee, without any
further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with the like effect as if originally named as trustee
herein. The predecessor trustee shall deliver to the successor trustee all Custodial Files and
related documents and statements held by it hereunder (other than any Custodial Files at the time
held by a Custodian, which shall become the agent of any successor trustee hereunder), and the
Depositor, the Master Servicer and the predecessor trustee shall execute and deliver such
instruments and do such other things as may reasonably be required for more fully and certainly
vesting and confirming in the successor trustee all such rights, powers, duties and obligations.

          (b) No successor trustee shall accept appointment as provided in this Section unless at the
time of such acceptance such successor trustee shall be eligible under the provisions of Section
8.06.

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

     Section 8.09. Merger or Consolidation of Trustee

     Any corporation or national banking association into which the Trustee may be merged or
converted or with which it may be consolidated or any corporation or national banking association
resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation or national banking association succeeding to the business of the Trustee, shall be
the successor of the Trustee hereunder, provided such corporation or national banking association
shall be eligible under the provisions of Section 8.06, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything herein to the contrary
notwithstanding. The Trustee shall mail notice of any such merger or consolidation to the
Certificateholders at their address as shown in the Certificate Register.

     Section 8.10. Appointment of Co-Trustee or Separate Trustee

          (a) Notwithstanding any other provisions hereof, at any time, for the purpose of meeting any
legal requirements of any jurisdiction in which any part of the Trust Fund or property securing the
same may at the time be located, the Master Servicer and the Trustee acting jointly shall have the
power and shall execute and deliver all instruments to appoint one or more Persons approved by the
Trustee to act as co-trustee or co-trustees, jointly with the Trustee, or separate trustee or
separate trustees, of all or any part of the Trust Fund, and to vest in such Person or Persons, in
such capacity, such title to the Trust Fund, or any part thereof, and, subject

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to the other provisions of this Section 8.10, such powers, duties, obligations, rights and
trusts as the Master Servicer and the Trustee may consider necessary or desirable. If the Master
Servicer shall not have joined in such appointment within 15 days after the receipt by it of a
request so to do, or in case an Event of Default shall have occurred and be continuing, the Trustee
alone shall have the power to make such appointment. No co-trustee or separate trustee hereunder
shall be required to meet the terms of eligibility as a successor trustee under Section 8.06
hereunder and no notice to Holders of Certificates of the appointment of co-trustee(s) or separate
trustee(s) shall be required under Section 8.08 hereof.

          (b) In the case of any appointment of a co-trustee or separate trustee pursuant to this
Section 8.10 all rights, powers, duties and obligations conferred or imposed upon the Trustee shall
be conferred or imposed upon and exercised or performed by the Trustee, and such separate trustee
or co-trustee jointly, except to the extent that under any law of any jurisdiction in which any
particular act or acts are to be performed (whether as Trustee hereunder or as successor to the
Master Servicer hereunder), the Trustee shall be incompetent or unqualified to perform such act or
acts, in which event such rights, powers, duties and obligations (including the holding of title to
the Trust Fund or any portion thereof in any such jurisdiction) shall be exercised and performed by
such separate trustee or co-trustee at the direction of the Trustee.

          (c) Any notice, request or other writing given to the Trustee shall be deemed to have been
given to each of the then separate trustees and co-trustees, as effectively as if given to each of
them. Every instrument appointing any separate trustee or co-trustee shall refer to this Agreement
and the conditions of this Article VIII. Each separate trustee and co-trustee, upon its acceptance
of the trusts conferred, shall be vested with the estates or property specified in its instrument
of appointment, either jointly with the Trustee or separately, as may be provided therein, subject
to all the provisions of this Agreement, specifically including every provision of this Agreement
relating to the conduct of, affecting the liability of, or affording protection to, the Trustee.
Every such instrument shall be filed with the Trustee. (d) Any separate trustee or co-trustee may,
at any time, constitute the Trustee, its agent or attorney-in-fact, with full power and authority,
to the extent not prohibited by law, to do any lawful act under or in respect of this Agreement on
its behalf and in its name. If any separate trustee or co-trustee shall die, become incapable of
acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall
vest in and be exercised by the Trustee, to the extent permitted by law, without the appointment of
a new or successor trustee.

     Section 8.11. Appointment of Custodians

     The Trustee may, with the consent of the Master Servicer and the Depositor, appoint one or
more Custodians who are not Affiliates of the Depositor or the Master Servicer to hold all or a
portion of the Custodial Files as agent for the Trustee, by entering into a Custodial Agreement.
Subject to Article VIII, the Trustee agrees to comply with the terms of each Custodial Agreement
and to enforce the terms and provisions thereof against the Custodian for the benefit of the
Certificateholders. Each Custodian shall be a depository institution subject to supervision by
federal or state authority, shall have a combined capital and surplus of at least $15,000,000 and
shall be qualified to do business in the jurisdiction in which it holds any Custodial File. Each
Custodial Agreement with respect to the Custodial Files, may be amended only as provided in Section
11.01. The Trustee shall notify the Certificateholders of the appointment of any

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Custodian (other than the Custodian appointed as of the Closing Date) pursuant to this Section
8.11.

     Section 8.12. Appointment of Office or Agency

     The Trustee shall maintain an office or agency in the [______________] where Certificates may
be surrendered for registration of transfer or exchange. The Trustee initially designates its
offices located at the Corporate Trust Office for the purpose of keeping the Certificate Register.
The Trustee shall maintain an office at the address stated in Section 11.05(c) hereof where notices
and demands to or upon the Trustee in respect of this Agreement may be served.

     Section 8.13. DTC Letter of Representations.

     The Trustee is hereby authorized and directed to, and agrees that it shall, enter into the DTC
Letter on behalf of the Trust Fund and in its individual capacity as agent thereunder.

     Section 8.14. [Reserved].

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ARTICLE IX

TERMINATION

     Section 9.01. Termination Upon Purchase or Liquidation of All Mortgage Loans.

          (a) Subject to Section 9.02, the respective obligations and responsibilities of the Depositor,
the Master Servicer and the Trustee created hereby in respect of the Certificates (other than the
obligation of the Trustee to make certain payments after the Final Distribution Date to
Certificateholders and the obligation of the Depositor to send certain notices as hereinafter set
forth) shall terminate upon the last action required to be taken by the Trustee on the Final
Distribution Date pursuant to this Article IX following the earlier of:

               (i) the later of the final payment or other liquidation (or any P&I Advance with respect
thereto) of the last Mortgage Loan remaining in the Trust Fund or the disposition of all property
acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan, or

               (ii) at the option of the Master Servicer or the Holder of the Class SB Certificates, as
provided in Section 9.01(f), the purchase of all Mortgage Loans and all property acquired in
respect of any Mortgage Loan remaining in the Trust Fund, at a price equal to the sum of 100% of
the unpaid principal balance of each Mortgage Loan (or, if less than such unpaid principal balance,
the fair market value of the related underlying property of such Mortgage Loan with respect to
Mortgage Loans as to which title has been acquired if such fair market value is less than such
unpaid principal balance) (and if such purchase is made by the Master Servicer only, net of any
unreimbursed P&I Advances attributable to principal) on the day of repurchase, plus accrued
interest thereon at the Net Mortgage Rate (or Modified Net Mortgage Rate in the case of any
Modified Mortgage Loan), to, but not including, the first day of the month in which such repurchase
price is distributed;

provided, however, that in no event shall the trust created hereby continue beyond the expiration
of 21 years from the death of the last survivor of the descendants of Joseph P. Kennedy, the late
ambassador of the United States to the Court of St. James, living on the date hereof; and provided
further, that the purchase price set forth above shall be increased as is necessary, as determined
by the Master Servicer, to avoid disqualification of any REMIC created hereunder as a REMIC.

     The purchase price paid by the Master Servicer or the Holder of the Class SB Certificates, as
applicable, pursuant to Section 9.01(a)(ii) shall also include any amounts owed by
[_________________] pursuant to the last paragraph of Section 4 of the Assignment Agreement in
respect of any liability, penalty or expense that resulted from a breach of the representation and
warranty set forth in clause (w) of Section 4 of the Assignment Agreement that remain unpaid on the
date of such purchase.

     The right of the Master Servicer or the Holder of the Class SB Certificates, as applicable, to
purchase all of the Mortgage Loans pursuant to clause (ii) above is conditioned upon the date of
such purchase occurring on or after the Optional Termination Date. If such right is exercised

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by the Master Servicer, the Master Servicer shall be deemed to have been reimbursed for the
full amount of any unreimbursed P&I Advances theretofore made by it with respect to the Mortgage
Loans being purchased. In addition, the Master Servicer shall provide to the Trustee the
certification required by Section 3.15 and the Trustee and any Custodian shall, promptly following
payment of the purchase price, release to the Master Servicer or the Holder of the Class SB
Certificates, as applicable, the Custodial Files pertaining to the Mortgage Loans being purchased.

     In addition to the foregoing, on any Distribution Date on or after the Optional Termination
Date, the Master Servicer or the Holder of the Class SB Certificates, as provided in Section
9.01(f), shall have the right, at its option, to purchase the [Class A Certificates, Class M
Certificates, Class B Certificates] and Class SB Certificates in whole, but not in part, at a price
equal to the sum of the outstanding Certificate Principal Balance of such Certificates plus the sum
of one month’s Accrued Certificate Interest thereon, any previously unpaid Accrued Certificate
Interest, and any unpaid Prepayment Interest Shortfalls previously allocated thereto and, in the
case of Prepayment Interest Shortfalls, accrued interest thereon at the applicable Pass-Through
Rate, plus, with respect to any optional termination by the Holder of the Class SB Certificates, an
amount equal to all accrued and unpaid Servicing Fees and reimbursement for all unreimbursed
Advances and Servicing Advances, in each case through the date of such optional termination. If
the Master Servicer or the Holder of the Class SB Certificates, as applicable, exercises this right
to purchase the outstanding Class A Certificates, Class M Certificates, Class B Certificates and
Class SB Certificates, the Master Servicer or the Holder of the Class SB Certificates, as
applicable, will promptly terminate the respective obligations and responsibilities created hereby
in respect of these Certificates pursuant to this Article IX.

          (b) The Master Servicer or the Holder of the Class SB Certificates, as applicable, shall give
the Trustee (and the Master Servicer if the Holder of the Class SB Certificates is exercising its
option) not less than 40 days’ prior notice of the Distribution Date on which (1) the Master
Servicer or the Holder of the Class SB Certificates, as applicable, anticipates that the final
distribution will be made to Certificateholders as a result of the exercise by the Holder of the
Class SB Certificates or the Master Servicer, as applicable, of its right to purchase the Mortgage
Loans) or (2) on which the Master Servicer or the Holder of the Class SB Certificates, as
applicable, anticipates that the Certificates will be purchased as a result of the exercise by the
Master Servicer or the Holder of the Class SB Certificates, as applicable, to purchase the
outstanding Certificates. Notice of any termination, specifying the anticipated Final Distribution
Date (which shall be a date that would otherwise be a Distribution Date) upon which the
Certificateholders may surrender their Certificates to the Trustee (if so required by the terms
hereof) for payment of the final distribution and cancellation or notice of any purchase of the
outstanding Certificates, specifying the Distribution Date upon which the Holders may surrender
their Certificates to the Trustee for payment, shall be given promptly by the Master Servicer (if
it is exercising the right to purchase the Mortgage Loans or to purchase the outstanding
Certificates), or by the Trustee (in any other case) by letter to the Certificateholders (with a
copy to the Certificate Registrar) mailed not earlier than the 15th day and not later than the 25th
day of the month next preceding the month of such final distribution specifying:

               (i) the anticipated Final Distribution Date upon which final payment of the Certificates is
anticipated to be made upon presentation and surrender of Certificates at the

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office or agency of the Trustee therein designated where required pursuant to this Agreement
or, in the case of the purchase by the Master Servicer or the Holder of the Class SB Certificates,
as applicable, of the outstanding Certificates, the Distribution Date on which such purchase is
made,

               (ii) the amount of any such final payment or, in the case of the purchase of the outstanding
Certificates, the purchase price, in either case, if known, and

               (iii) that the Record Date otherwise applicable to such Distribution Date is not applicable,
and that payment will be made only upon presentation and surrender of the Certificates at the
office or agency of the Trustee therein specified.

     If the Master Servicer or the Trustee is obligated to give notice to Certificateholders as
required above, it shall give such notice to the Certificate Registrar at the time such notice is
given to Certificateholders. In the event of a purchase of the Mortgage Loans by the Master
Servicer or the Holder of the Class SB Certificates, as applicable, the Master Servicer or the
Holder of the Class SB Certificates, as applicable, shall deposit in the Certificate Account before
the Final Distribution Date in immediately available funds an amount equal to the purchase price
computed as provided above. As a result of the exercise by the Master Servicer or the Holder of
the Class SB Certificates, as applicable, of its right to purchase the outstanding Certificates,
the Master Servicer or the Holder of the Class SB Certificates, as applicable, shall deposit in an
Eligible Account, established by the Master Servicer on behalf of the Trustee and separate from the
Certificate Account, in the name of the Trustee in trust for the registered holders of the
Certificates, before the Distribution Date on which such purchase is to occur, in immediately
available funds, an amount equal to the purchase price for the Certificates computed as provided
above, and provide notice of such deposit to the Trustee. The Trustee shall withdraw from such
account the amount specified in subsection (c) below and distribute such amount to the
Certificateholders as specified in subsection (c) below. The Master Servicer or the Holder of the
Class SB Certificates, as applicable, shall provide to the Trustee written notification of any
change to the anticipated Final Distribution Date as soon as practicable. If the Trust Fund is not
terminated on the anticipated Final Distribution Date, for any reason, the Trustee shall promptly
mail notice thereof to each affected Certificateholder.

          (c) Upon presentation and surrender of the [Class A Certificates, Class M Certificates, Class
B Certificates] and Class SB Certificates by the Certificateholders thereof, the Trustee shall
distribute to such Certificateholders (i) the amount otherwise distributable on such Distribution
Date, if not in connection with the Holder’s of the Class SB Certificates or the Master Servicer’s,
as applicable, election to repurchase the Mortgage Loans or the outstanding [Class A Certificates,
Class M Certificates, Class B Certificates] and Class SB Certificates, or (ii) if the Master
Servicer or the Holder of the Class SB Certificates, as applicable, elected to so repurchase the
Mortgage Loans or the outstanding [Class A Certificates, Class M Certificates, Class B
Certificates] and Class SB Certificates, an amount equal to the price paid pursuant to Section
9.01(a) as follows: first, with respect to any optional termination by the Holder of the Class SB
Certificates, payment of any accrued and unpaid Servicing Fees and reimbursement for all
unreimbursed Advances, in each case through the date of such optional termination, to the Master
Servicer, second, with respect to the [Class A Certificates, pari passu, the outstanding
Certificate Principal Balance thereof, plus Accrued Certificate Interest thereon for the related

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Interest Accrual Period and any previously unpaid Accrued Certificate Interest, third, with
respect to the Class M-1 Certificates, the outstanding Certificate Principal Balance thereof, plus
Accrued Certificate Interest thereon for the related Interest Accrual Period and any previously
unpaid Accrued Certificate Interest, fourth, with respect to the Class M-2 Certificates, the
outstanding Certificate Principal Balance thereof, plus Accrued Certificate Interest thereon for
the related Interest Accrual Period and any previously unpaid Accrued Certificate Interest, fifth,
with respect to the Class M-3 Certificates, the outstanding Certificate Principal Balance thereof,
plus Accrued Certificate Interest thereon for the related Interest Accrual Period and any
previously unpaid Accrued Certificate Interest, sixth, with respect to the Class M-4 Certificates,
the outstanding Certificate Principal Balance thereof, plus Accrued Certificate Interest thereon
for the related Interest Accrual Period and any previously unpaid Accrued Certificate Interest,
seventh, with respect to the Class M-5 Certificates, the outstanding Certificate Principal Balance
thereof, plus Accrued Certificate Interest thereon for the related Interest Accrual Period and any
previously unpaid Accrued Certificate Interest, eighth, with respect to the Class M-6 Certificates,
the outstanding Certificate Principal Balance thereof, plus Accrued Certificate Interest thereon
for the related Interest Accrual Period and any previously unpaid Accrued Certificate Interest,
ninth, with respect to the Class M-7 Certificates, the outstanding Certificate Principal Balance
thereof, plus Accrued Certificate Interest thereon for the related Interest Accrual Period and any
previously unpaid Accrued Certificate Interest, tenth, with respect to the Class M-8 Certificates,
the outstanding Certificate Principal Balance thereof, plus Accrued Certificate Interest thereon
for the related Interest Accrual Period and any previously unpaid Accrued Certificate Interest,
eleventh, with respect to the Class M-9 Certificates, the outstanding Certificate Principal Balance
thereof, plus Accrued Certificate Interest thereon for the related Interest Accrual Period and any
previously unpaid Accrued Certificate Interest, twelfth, with respect to the Class B Certificates,
the outstanding Certificate Principal Balance thereof, plus Accrued Certificate Interest thereon
for the related Interest Accrual Period and any previously unpaid Accrued Certificate Interest,
thirteenth, to the Class A, Class M and Class B Certificates, the amount of any Prepayment Interest
Shortfalls allocated thereto for such Distribution Date or remaining unpaid from prior Distribution
Dates and accrued interest thereon at the applicable Pass-Through Rate, on a pro rata basis based
on Prepayment Interest Shortfalls allocated thereto for such Distribution Date or remaining unpaid
from prior Distribution Dates, and fourteenth, to the Class SB Certificates, all remaining
amounts.]

          (d) In the event that any Certificateholders shall not surrender their Certificates for final
payment and cancellation on or before the Final Distribution Date, the Master Servicer (if it
exercised its right to purchase the Mortgage Loans) or the Trustee (in any other case), shall give
a second written notice to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within six months after
the second notice any Certificate shall not have been surrendered for cancellation, the Trustee
shall take appropriate steps as directed by the Master Servicer to contact the remaining
Certificateholders concerning surrender of their Certificates. The costs and expenses of
maintaining the Certificate Account and of contacting Certificateholders shall be paid out of the
assets which remain in the Certificate Account. If within nine months after the second notice any
Certificates shall not have been surrendered for cancellation, the Trustee shall pay to the Master
Servicer all amounts distributable to the holders thereof and the Master Servicer shall thereafter
hold such amounts until distributed to such Holders. No interest shall accrue or be payable to any
Certificateholder on any amount held in the Certificate Account or

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by the Master Servicer as a result of such Certificateholder’s failure to surrender its
Certificate(s) for final payment thereof in accordance with this Section 9.01 and the
Certificateholders shall look only to the Master Servicer for such payment.

          (e) If any Certificateholders do not surrender their Certificates on or before the
Distribution Date on which a purchase of the outstanding Certificates is to be made, the Master
Servicer shall give a second written notice to such Certificateholders to surrender their
Certificates for payment of the purchase price therefor. If within six months after the second
notice any Certificate shall not have been surrendered for cancellation, the Trustee shall take
appropriate steps as directed by the Master Servicer to contact the Holders of such Certificates
concerning surrender of their Certificates. The costs and expenses of maintaining the Certificate
Account and of contacting Certificateholders shall be paid out of the assets which remain in the
Certificate Account. If within nine months after the second notice any Certificates shall not have
been surrendered for cancellation in accordance with this Section 9.01, the Trustee shall pay to
the Master Servicer all amounts distributable to the Holders thereof and shall have no further
obligation or liability therefor and the Master Servicer shall thereafter hold such amounts until
distributed to such Holders. No interest shall accrue or be payable to any Certificateholder on
any amount held in the Certificate Account or by the Master Servicer as a result of such
Certificateholder’s failure to surrender its Certificate(s) for payment in accordance with this
Section 9.01. Any Certificate that is not surrendered on the Distribution Date on which a purchase
pursuant to this Section 9.01 occurs as provided above will be deemed to have been purchased and
the Holder as of such date will have no rights with respect thereto except to receive the purchase
price therefor minus any costs and expenses associated with such Certificate Account and notices
allocated thereto. Any Certificates so purchased or deemed to have been purchased on such
Distribution Date shall remain outstanding hereunder. The Master Servicer shall be for all
purposes the Holder thereof as of such date.

          (f) With respect to the first possible Optional Termination Date, the Master Servicer shall
have the sole option to exercise the purchase options described in Section 9.01(a) and the Holder
of the Class SB Certificates shall have no claim thereto. If, however, the Master Servicer elects
not to exercise one of its options to purchase pursuant to Section 9.01(a) with respect to the
first possible Optional Termination Date, the Holder of the Class SB Certificates shall have the
sole option to exercise the purchase options described in Section 9.01(a) on the second possible
Optional Termination Date and the Master Servicer shall have no claim thereto. If the Holder of
the Class SB Certificates elects not to exercise one of its options to purchase pursuant to Section
9.01(a) with respect to the second possible Optional Termination Date, it shall lose such right and
have no claim to exercise any purchase options pursuant to this Section 9.01(a) thereafter.
Beginning with the third possible Optional Termination Date and thereafter, the Master Servicer
shall again have the sole option to exercise the purchase options described in Section 9.01(a).

          (g) The Holder of the Class SB Certificates, if it is not the Master Servicer or any
Subservicer, shall be deemed to represent that one of the following will be true and correct: (i)
the exercise of the optional termination right set forth in Section 9.01 shall not result in a
non-exempt prohibited transaction under ERISA or Section 4975 of the Code or (ii) the Holder of the
Class SB Certificates is (A) not a party in interest with respect to any Plan and (B) is not a
“benefit plan investor” (other than a plan sponsored or maintained by the Holder of the Class SB

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Certificates, as the case may be, provided that no assets of such plan are invested or deemed
to be invested in the Certificates). If the holder of the option is unable to exercise such option
by reason of the preceding sentence, then the Master Servicer may exercise such option.

     Section 9.02. Additional Termination Requirements

          (a) Each of REMIC I and REMIC II, as the case may be, shall be terminated in accordance with
the following additional requirements, unless the Trustee and the Master Servicer have received an
Opinion of Counsel (which Opinion of Counsel shall not be an expense of the Trustee) to the effect
that the failure of any REMIC created hereunder to comply with the requirements of this Section
9.02 will not (i) result in the imposition on the Trust Fund of taxes on “prohibited transactions,”
as described in Section 860F of the Code, or (ii) cause any REMIC created hereunder to fail to
qualify as a REMIC at any time that any Certificate is outstanding:

               (i) The Master Servicer shall establish a 90-day liquidation period for each of REMIC I and
REMIC II, and specify the first day of such period in a statement attached to the Trust Fund’s
final Tax Return pursuant to Treasury Regulations §1.860F-1. The Master Servicer also shall
satisfy all of the requirements of a qualified liquidation for each of REMIC I and REMIC II, under
Section 860F of the Code and the regulations thereunder;

               (ii) The Master Servicer shall notify the Trustee at the commencement of such 90-day
liquidation period and, at or prior to the time of making of the final payment on the Certificates,
the Trustee shall sell or otherwise dispose of all of the remaining assets of the Trust Fund in
accordance with the terms hereof; and

               (iii) If the Master Servicer or the Holder of the Class SB Certificates is exercising its
right to purchase the assets of the Trust Fund, the Master Servicer or the Holder of the Class SB
Certificates, as applicable, shall, during the 90-day liquidation period and at or prior to the
Final Distribution Date, purchase all of the assets of the Trust Fund for cash.

          (b) Each Holder of a Certificate and the Trustee hereby irrevocably approves and appoints the
Master Servicer as its attorney-in-fact to adopt a plan of complete liquidation for each of REMIC I
and REMIC II at the expense of the Trust Fund in accordance with the terms and conditions of this
Agreement.

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ARTICLE X

REMIC PROVISIONS

     Section 10.01. REMIC Administration

          (a) The REMIC Administrator shall make an election to treat each of REMIC I and REMIC II as a
REMIC under the Code and, if necessary, under applicable state law. Such election will be made on
Form 1066 or other appropriate federal tax or information return (including Form 8811) or any
appropriate state return for the taxable year ending on the last day of the calendar year in which
the Certificates are issued. The REMIC I Regular Interests shall be designated as the “regular
interests” and the Class R-I Certificates shall be designated as the sole Class of “residual
interests” in REMIC I. The REMIC II Regular Interests shall be designated as the “regular
interests” and the Class R-II Certificates shall be designated as the sole Class of “residual
interests” in REMIC II. The REMIC Administrator and the Trustee shall not permit the creation of
any “interests” (within the meaning of Section 860G of the Code) in the REMIC I or REMIC II other
than the REMIC I Regular Interests, the REMIC II Regular Interests, and the Certificates.

          (b) The Closing Date is hereby designated as the “startup day” of each of REMIC I and REMIC II
within the meaning of Section 860G(a)(9) of the Code (the “Startup Date”).

          (c) The REMIC Administrator shall hold a Class R Certificate in each REMIC representing a
0.01% Percentage Interest of the Class R Certificates in each REMIC and shall be designated as the
“tax matters person” with respect to each of REMIC I and REMIC II in the manner provided under
Treasury Regulations Section 1.860F-4(d) and Treasury Regulations Section 301.6231(a)(7)-1. The
REMIC Administrator, as tax matters person, shall (i) act on behalf of each of REMIC I and REMIC II
in relation to any tax matter or controversy involving the Trust Fund and (ii) represent the Trust
Fund in any administrative or judicial proceeding relating to an examination or audit by any
governmental taxing authority with respect thereto. The legal expenses, including without
limitation attorneys’ or accountants’ fees, and costs of any such proceeding and any liability
resulting therefrom shall be expenses of the Trust Fund and the REMIC Administrator shall be
entitled to reimbursement therefor out of amounts attributable to the Mortgage Loans on deposit in
the Custodial Account as provided by Section 3.10 unless such legal expenses and costs are incurred
by reason of the REMIC Administrator’s willful misfeasance, bad faith or gross negligence. If the
REMIC Administrator is no longer the Master Servicer hereunder, at its option the REMIC
Administrator may continue its duties as REMIC Administrator and shall be paid reasonable
compensation not to exceed $3,000 per year by any successor Master Servicer hereunder for so acting
as the REMIC Administrator.

          (d) The REMIC Administrator shall prepare or cause to be prepared all of the Tax Returns that
it determines are required with respect to the REMICs created hereunder and deliver such Tax
Returns in a timely manner to the Trustee and the Trustee shall sign and file such Tax Returns in a
timely manner. The expenses of preparing such returns shall be borne by the REMIC Administrator
without any right of reimbursement therefor. The REMIC Administrator agrees to indemnify and hold
harmless the Trustee with respect to any tax or

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liability arising from the Trustee’s signing of Tax Returns that contain errors or omissions.
The Trustee and Master Servicer shall promptly provide the REMIC Administrator with such
information as the REMIC Administrator may from time to time request for the purpose of enabling
the REMIC Administrator to prepare Tax Returns.

          (e) The REMIC Administrator shall provide (i) to any Transferor of a Class R Certificate such
information as is necessary for the application of any tax relating to the transfer of a Class R
Certificate to any Person who is not a Permitted Transferee, (ii) to the Trustee and the Trustee
shall forward to the Certificateholders such information or reports as are required by the Code or
the REMIC Provisions including reports relating to interest, original issue discount, if any, and
market discount or premium (using the Prepayment Assumption) and (iii) to the Internal Revenue
Service the name, title, address and telephone number of the person who will serve as the
representative of each REMIC created hereunder.

          (f) The Master Servicer and the REMIC Administrator shall take such actions and shall cause
each REMIC created hereunder to take such actions as are reasonably within the Master Servicer’s or
the REMIC Administrator’s control and the scope of its duties more specifically set forth herein as
shall be necessary or desirable to maintain the status thereof as a REMIC under the REMIC
Provisions (and the Trustee shall assist the Master Servicer and the REMIC Administrator, to the
extent reasonably requested by the Master Servicer and the REMIC Administrator to do so). In
performing their duties as more specifically set forth herein, the Master Servicer and the REMIC
Administrator shall not knowingly or intentionally take any action, cause the Trust Fund to take
any action or fail to take (or fail to cause to be taken) any action reasonably within their
respective control and the scope of duties more specifically set forth herein, that, under the
REMIC Provisions, if taken or not taken, as the case may be, could (i) endanger the status of any
REMIC created hereunder as a REMIC or (ii) result in the imposition of a tax upon any REMIC created
hereunder (including but not limited to the tax on prohibited transactions as defined in Section
860F(a)(2) of the Code (except as provided in Section 2.04) and the tax on contributions to a REMIC
set forth in Section 860G(d) of the Code) (either such event, in the absence of an Opinion of
Counsel or the indemnification referred to in this sentence, an “Adverse REMIC Event”) unless the
Master Servicer or the REMIC Administrator, as applicable, has received an Opinion of Counsel (at
the expense of the party seeking to take such action or, if such party fails to pay such expense,
and the Master Servicer or the REMIC Administrator, as applicable, determines that taking such
action is in the best interest of the Trust Fund and the Certificateholders, at the expense of the
Trust Fund, but in no event at the expense of the Master Servicer, the REMIC Administrator or the
Trustee) to the effect that the contemplated action will not, with respect to the Trust Fund
created hereunder, endanger such status or, unless the Master Servicer or the REMIC Administrator
or both, as applicable, determine in its or their sole discretion to indemnify the Trust Fund
against the imposition of such a tax, result in the imposition of such a tax. Wherever in this
Agreement a contemplated action may not be taken because the timing of such action might result in
the imposition of a tax on the Trust Fund, or may only be taken pursuant to an Opinion of Counsel
that such action would not impose a tax on the Trust Fund, such action may nonetheless be taken
provided that the indemnity given in the preceding sentence with respect to any taxes that might be
imposed on the Trust Fund has been given and that all other preconditions to the taking of such
action have been satisfied. The Trustee shall not take or fail to take any action (whether or not
authorized hereunder) as to which the Master Servicer or the REMIC Administrator, as applicable,
has

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advised it in writing that it has received an Opinion of Counsel to the effect that an Adverse
REMIC Event could occur with respect to such action or inaction, as the case may be. In addition,
prior to taking any action with respect to the Trust Fund or its assets, or causing the Trust Fund
to take any action, which is not expressly permitted under the terms of this Agreement, the Trustee
shall consult with the Master Servicer or the REMIC Administrator, as applicable, or its designee,
in writing, with respect to whether such action could cause an Adverse REMIC Event to occur with
respect to the Trust Fund and the Trustee shall not take any such action or cause the Trust Fund to
take any such action as to which the Master Servicer or the REMIC Administrator, as applicable, has
advised it in writing that an Adverse REMIC Event could occur. The Master Servicer or the REMIC
Administrator, as applicable, may consult with counsel to make such written advice, and the cost of
same shall be borne by the party seeking to take the action not expressly permitted by this
Agreement, but in no event at the expense of the Master Servicer or the REMIC Administrator. At all
times as may be required by the Code, the Master Servicer or the REMIC Administrator, as
applicable, will to the extent within its control and the scope of its duties more specifically set
forth herein, maintain substantially all of the assets of the REMIC as “qualified mortgages” as
defined in Section 860G(a)(3) of the Code and “permitted investments” as defined in Section
860G(a)(5) of the Code.

          (g) In the event that any tax is imposed on “prohibited transactions” of any REMIC created
hereunder as defined in Section 860F(a)(2) of the Code, on “net income from foreclosure property”
of any REMIC as defined in Section 860G(c) of the Code, on any contributions to any REMIC after the
Startup Date therefor pursuant to Section 860G(d) of the Code, or any other tax imposed by the Code
or any applicable provisions of state or local tax laws, such tax shall be charged (i) to the
Master Servicer, if such tax arises out of or results from a breach by the Master Servicer in its
role as Master Servicer or REMIC Administrator of any of its obligations under this Agreement or
the Master Servicer has in its sole discretion determined to indemnify the Trust Fund against such
tax, (ii) to the Trustee, if such tax arises out of or results from a breach by the Trustee of any
of its obligations under this Article X, or (iii) otherwise against amounts on deposit in the
Custodial Account as provided by Section 3.10 and on the Distribution Date(s) following such
reimbursement the aggregate of such taxes shall be allocated in reduction of the Accrued
Certificate Interest on each Class entitled thereto in the same manner as if such taxes constituted
a Prepayment Interest Shortfall.

          (h) The Trustee and the Master Servicer shall, for federal income tax purposes, maintain books
and records with respect to each REMIC on a calendar year and on an accrual basis or as otherwise
may be required by the REMIC Provisions.

          (i) Following the Startup Date, neither the Master Servicer nor the Trustee shall accept any
contributions of assets to any REMIC unless (subject to Section 10.01(f)) the Master Servicer and
the Trustee shall have received an Opinion of Counsel (at the expense of the party seeking to make
such contribution) to the effect that the inclusion of such assets in any REMIC will not cause any
REMIC created hereunder to fail to qualify as a REMIC at any time that any Certificates are
outstanding or subject any such REMIC to any tax under the REMIC Provisions or other applicable
provisions of federal, state and local law or ordinances.

          (j) Neither the Master Servicer nor the Trustee shall (subject to Section 10.01(f)) enter into
any arrangement by which any REMIC created hereunder will

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receive a fee or other compensation for services nor permit any REMIC created hereunder to receive any
income from assets other than “qualified mortgages” as defined in Section 860G(a)(3) of the Code or
“permitted investments” as defined in Section 860G(a)(5) of the Code.

          (k) Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury Regulations, the
“latest possible maturity date” by which the principal balance of each regular interest in each
REMIC would be reduced to zero is [________], 20[_], which is the Distribution Date in the month
following the last scheduled payment on any Mortgage Loan.

          (l) Within 30 days after the Closing Date, the REMIC Administrator shall prepare and file with
the Internal Revenue Service Form 8811, “Information Return for Real Estate Mortgage Investment
Conduits (REMIC) and Issuers of Collateralized Debt Obligations” for the Trust Fund.

          (m) Neither the Trustee nor the Master Servicer shall sell, dispose of or substitute for any
of the Mortgage Loans (except in connection with (i) the default, imminent default or foreclosure
of a Mortgage Loan, including but not limited to, the acquisition or sale of a Mortgaged Property
acquired by deed in lieu of foreclosure, (ii) the bankruptcy of the Trust Fund, (iii) the
termination of any REMIC pursuant to Article IX of this Agreement or (iv) a purchase of Mortgage
Loans pursuant to Article II or III of this Agreement) or acquire any assets for any REMIC or sell
or dispose of any investments in the Custodial Account or the Certificate Account for gain, or
accept any contributions to any REMIC after the Closing Date unless it has received an Opinion of
Counsel that such sale, disposition, substitution or acquisition will not (a) affect adversely the
status of any REMIC created hereunder as a REMIC or (b) unless the Master Servicer has determined
in its sole discretion to indemnify the Trust Fund against such tax, cause any REMIC to be subject
to a tax on “prohibited transactions” or “contributions” pursuant to the REMIC Provisions.

     Section 10.02. Master Servicer, REMIC Administrator and Trustee
Indemnification

          (a) The Trustee agrees to indemnify the Trust Fund, the Depositor, the REMIC Administrator and
the Master Servicer for any taxes and costs including, without limitation, any reasonable attorneys
fees imposed on or incurred by the Trust Fund, the Depositor or the Master Servicer, as a result of
a breach of the Trustee’s covenants set forth in Article VIII or this Article X. In the event that
[_________________] is no longer the Master Servicer, the Trustee shall indemnify
[_________________] for any taxes and costs including, without limitation, any reasonable attorneys
fees imposed on or incurred by [_________________] as a result of a breach of the Trustee’s
covenants set forth in Article VIII or this Article X.

          (b) The REMIC Administrator agrees to indemnify the Trust Fund, the Depositor, the Master
Servicer and the Trustee for any taxes and costs (including, without limitation, any reasonable
attorneys’ fees) imposed on or incurred by the Trust Fund, the Depositor, the Master Servicer or
the Trustee, as a result of a breach of the REMIC Administrator’s covenants set forth in this
Article X with respect to compliance with the REMIC Provisions, including without limitation, any
penalties arising from the Trustee’s execution of Tax Returns prepared by the REMIC Administrator
that contain errors or omissions; provided,

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however, that such liability will not be imposed to the
extent such breach is a result of an error or omission in information provided to the REMIC Administrator by the Master Servicer in which
case Section 10.02(c) will apply.

          (c) The Master Servicer agrees to indemnify the Trust Fund, the Depositor, the REMIC
Administrator and the Trustee for any taxes and costs (including, without limitation, any
reasonable attorneys’ fees) imposed on or incurred by the Trust Fund, the Depositor, the REMIC
Administrator or the Trustee, as a result of a breach of the Master Servicer’s covenants set forth
in this Article X or in Article III with respect to compliance with the REMIC Provisions, including
without limitation, any penalties arising from the Trustee’s execution of Tax Returns prepared by
the Master Servicer that contain errors or omissions.

     Section 10.03. Compliance with Withholding Requirements

     Notwithstanding any other provision of this Agreement, the Trustee or any Paying Agent, as
applicable, shall comply with all federal withholding requirements respecting payments to
Certificateholders, including interest or original issue discount payments or advances thereof that
the Trustee or any Paying Agent, as applicable, reasonably believes are applicable under the Code.
The consent of Certificateholders shall not be required for such withholding. In the event the
Trustee or any Paying Agent, as applicable, does withhold any amount from interest or original
issue discount payments or advances thereof to any Certificateholder pursuant to federal
withholding requirements, the Trustee or any Paying Agent, as applicable, shall indicate the amount
withheld to such Certificateholder pursuant to the terms of such requirements.

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ARTICLE XI

MISCELLANEOUS PROVISIONS

     Section 11.01. Amendment

          (a) This Agreement or any Custodial Agreement may be amended from time to time by the
Depositor, the Master Servicer and the Trustee, without the consent of any of the
Certificateholders:

               (i) to cure any ambiguity,

               (ii) to correct or supplement any provisions herein or therein, which may be inconsistent with
any other provisions herein or therein or to correct any error,

               (iii) to modify, eliminate or add to any of its provisions to such extent as shall be
necessary or desirable to maintain the qualification of any REMIC created hereunder as a REMIC at
all times that any Certificate is outstanding or to avoid or minimize the risk of the imposition of
any tax on the Trust Fund pursuant to the Code that would be a claim against the Trust Fund,
provided that the Trustee has received an Opinion of Counsel to the effect that (A) such action is
necessary or desirable to maintain such qualification or to avoid or minimize the risk of the
imposition of any such tax and (B) such action will not adversely affect in any material respect
the interests of any Certificateholder,

               (iv) to change the timing and/or nature of deposits into the Custodial Account or the
Certificate Account or to change the name in which the Custodial Account is maintained, provided
that (A) the Certificate Account Deposit Date shall in no event be later than the related
Distribution Date, (B) such change shall not, as evidenced by an Opinion of Counsel, adversely
affect in any material respect the interests of any Certificateholder and (C) such change shall not
result in a reduction of the rating assigned to any Class of Certificates below the lower of the
then-current rating or the rating assigned to such Certificates as of the Closing Date, as
evidenced by a letter from each Rating Agency to such effect,

               (v) to modify, eliminate or add to the provisions of Section 5.02(f) or any other provision
hereof restricting transfer of the Class R Certificates by virtue of their being the “residual
interests” in the Trust Fund provided that (A) such change shall not result in reduction of the
rating assigned to any such Class of Certificates below the lower of the then-current rating or the
rating assigned to such Certificates as of the Closing Date, as evidenced by a letter from each
Rating Agency to such effect, and (B) such change shall not (subject to Section 10.01(f)), as
evidenced by an Opinion of Counsel (at the expense of the party seeking so to modify, eliminate or
add such provisions), cause the Trust Fund or any of the Certificateholders (other than the
transferor) to be subject to a federal tax caused by a transfer to a Person that is not a Permitted
Transferee, or

               (vi) to make any other provisions with respect to matters or questions arising under this
Agreement or such Custodial Agreement which shall not be materially inconsistent with the
provisions of this Agreement, provided that such action shall not, as

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evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of
any Certificateholder and is authorized or permitted under Section 11.01.

          (b) This Agreement or any Custodial Agreement may also be amended from time to time by the
Depositor, the Master Servicer, the Trustee and the Holders of Certificates evidencing in the
aggregate not less than 66% of the Percentage Interests of each Class of Certificates with a
Certificate Principal Balance greater than zero affected thereby for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Agreement or
such Custodial Agreement or of modifying in any manner the rights of the Holders of Certificates of
such Class; provided, however, that no such amendment shall:

               (i) reduce in any manner the amount of, or delay the timing of, payments which are required to
be distributed on any Certificate without the consent of the Holder of such Certificate,

               (ii) adversely affect in any material respect the interest of the Holders of Certificates of
any Class in a manner other than as described in clause (i) hereof without the consent of Holders
of Certificates of such Class evidencing, as to such Class, Percentage Interests aggregating not
less than 66%, or

               (iii) reduce the aforesaid percentage of Certificates of any Class the Holders of which are
required to consent to any such amendment, in any such case without the consent of the Holders of
all Certificates of such Class then outstanding.

          (c) Notwithstanding any contrary provision of this Agreement, the Trustee shall not consent to
any amendment to this Agreement unless it shall have first received an Opinion of Counsel (at the
expense of the party seeking such amendment) to the effect that such amendment or the exercise of
any power granted to the Master Servicer, the Depositor or the Trustee in accordance with such
amendment will not result in the imposition of a federal tax on the Trust Fund or cause any REMIC
created hereunder to fail to qualify as a REMIC at any time that any Certificate is outstanding;
provided, that if the indemnity described in Section 10.01(f) with respect to any taxes that might
be imposed on the Trust Fund has been given, the Trustee shall not require the delivery to it of
the Opinion of Counsel described in this Section 11.01(c). The Trustee may but shall not be
obligated to enter into any amendment pursuant to this Section that affects its rights, duties and
immunities and this Agreement or otherwise; provided, however, such consent shall not be
unreasonably withheld.

          (d) Promptly after the execution of any such amendment the Trustee shall furnish written
notification of the substance of such amendment to each Certificateholder. It shall not be
necessary for the consent of Certificateholders under this Section 11.01 to approve the particular
form of any proposed amendment, but it shall be sufficient if such consent shall approve the
substance thereof. The manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable regulations as the
Trustee may prescribe.

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          (e) The Depositor shall have the option, in its sole discretion, to obtain and deliver to the
Trustee any corporate guaranty, payment obligation, irrevocable letter of credit, surety bond,
insurance policy or similar instrument or a reserve fund, or any combination of the foregoing, for
the purpose of protecting the Holders of the Class SB Certificates against any or all Realized
Losses or other shortfalls. Any such instrument or fund shall be held by the Trustee for the
benefit of the Class SB Certificateholders, but shall not be and shall not be deemed to be under
any circumstances included in any REMIC. To the extent that any such instrument or fund constitutes
a reserve fund for federal income tax purposes, (i) any reserve fund so established shall be an
outside reserve fund and not an asset of such REMIC, (ii) any such reserve fund shall be owned by
the Depositor, and (iii) amounts transferred by such REMIC to any such reserve fund shall be
treated as amounts distributed by such REMIC to the Depositor or any successor, all within the
meaning of Treasury Regulations Section 1.860G-2(h) in effect as of the Cut-off Date. In connection
with the provision of any such instrument or fund, this Agreement and any provision hereof may be
modified, added to, deleted or otherwise amended in any manner that is related or incidental to
such instrument or fund or the establishment or administration thereof, such amendment to be made
by written instrument executed or consented to by the Depositor and such related insurer but
without the consent of any Certificateholder and without the consent of the Master Servicer or the
Trustee being required unless any such amendment would impose any additional obligation on, or
otherwise adversely affect the interests of the Certificateholders, the Master Servicer or the
Trustee, as applicable; provided that the Depositor obtains an Opinion of Counsel (which need not
be an opinion of Independent counsel) to the effect that any such amendment will not cause (a) any
federal tax to be imposed on the Trust Fund, including without limitation, any federal tax imposed
on “prohibited transactions” under Section 860F(a)(1) of the Code or on “contributions after the
startup date” under Section 860G(d)(1) of the Code and (b) any REMIC created hereunder to fail to
qualify as a REMIC at any time that any Certificate is outstanding.

          (f) [Reserved].

          (g) Notwithstanding anything to the contrary set forth in Sections 11.01(b), (c), (d), and
(e), any amendment of Section 4.09 of this Agreement shall require the consent of the Limited
Repurchase Right Holder as a third-party beneficiary of Section 4.09 of this Agreement.

     Section 11.02. Recordation of Agreement; Counterparts

          (a) To the extent permitted by applicable law, this Agreement is subject to recordation in all
appropriate public offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are situated, and in
any other appropriate public recording office or elsewhere, such recordation to be effected by the
Master Servicer and at its expense on direction by the Trustee (pursuant to the request of the
Holders of Certificates entitled to at least 25% of the Voting Rights), but only upon direction
accompanied by an Opinion of Counsel to the effect that such recordation materially and
beneficially affects the interests of the Certificateholders.

          (b) For the purpose of facilitating the recordation of this Agreement as herein provided and
for other purposes, this Agreement may be executed simultaneously in any number

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of counterparts, each of which counterparts shall be deemed to be an original, and such
counterparts shall constitute but one and the same instrument.

     Section 11.03. Limitation on Rights of Certificateholders

          (a) The death or incapacity of any Certificateholder shall not operate to terminate this
Agreement or the Trust Fund, nor entitle such Certificateholder’s legal representatives or heirs to
claim an accounting or to take any action or proceeding in any court for a partition or winding up
of the Trust Fund, nor otherwise affect the rights, obligations and liabilities of any of the
parties hereto.

          (b) No Certificateholder shall have any right to vote (except as expressly provided herein) or
in any manner otherwise control the operation and management of the Trust Fund, or the obligations
of the parties hereto, nor shall anything herein set forth, or contained in the terms of the
Certificates, be construed so as to constitute the Certificateholders from time to time as partners
or members of an association; nor shall any Certificateholder be under any liability to any third
person by reason of any action taken by the parties to this Agreement pursuant to any provision
hereof.

          (c) No Certificateholder shall have any right by virtue of any provision of this Agreement to
institute any suit, action or proceeding in equity or at law upon or under or with respect to this
Agreement, unless such Holder previously shall have given to the Trustee a written notice of
default and of the continuance thereof, as hereinbefore provided, and unless also the Holders of
Certificates of any Class evidencing in the aggregate not less than 25% of the related Percentage
Interests of such Class, shall have made written request upon the Trustee to institute such action,
suit or proceeding in its own name as Trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred
therein or thereby, and the Trustee shall have given its written consent and the Trustee, for 60
days after its receipt of such notice, request and offer of indemnity, shall have neglected or
refused to institute any such action, suit or proceeding it being understood and intended, and
being expressly covenanted by each Certificateholder with every other Certificateholder and the
Trustee, that no one or more Holders of Certificates of any Class shall have any right in any
manner whatever by virtue of any provision of this Agreement to affect, disturb or prejudice the
rights of the Holders of any other of such Certificates of such Class or any other Class, or to
obtain or seek to obtain priority over or preference to any other such Holder, or to enforce any
right under this Agreement, except in the manner herein provided and for the common benefit of
Certificateholders of such Class or all Classes, as the case may be. For the protection and
enforcement of the provisions of this Section 11.03, each and every Certificateholder and the
Trustee shall be entitled to such relief as can be given either at law or in equity.

     Section 11.04. Governing Law

     This agreement and the Certificates shall be governed by and construed in accordance with the
laws of the State of New York, without regard to the conflict of law principles thereof, other than
Sections 5-1401 and 5-1402 of the New York General Obligations Law, and the

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obligations, rights and remedies of the parties hereunder shall be determined in accordance
with such laws.

     Section 11.05. Notices

     All demands and notices hereunder shall be in writing and shall be deemed to have been duly
given if personally delivered at or mailed by registered mail, postage prepaid (except for notices
to the Trustee which shall be deemed to have been duly given only when received), to (a) in the
case of the Depositor, 1100 Virginia Drive, Fort Washington, Pennsylvania 19034, Attention:
President (PRS), or such other address as may hereafter be furnished to the Master Servicer and the
Trustee in writing by the Depositor; (b) in the case of the Master Servicer, [_________________],
[_________________], [_________________] [_____], Attention: [_________________] or such other
address as may be hereafter furnished to the Depositor and the Trustee by the Master Servicer in
writing; (c) in the case of the Trustee, the Corporate Trust Office or such other address as may
hereafter be furnished to the Depositor and the Master Servicer in writing by the Trustee; (d) in
the case of [Standard & Poor’s, 55 Water Street, 41st Floor, New York, New York 10041
Attention: Mortgage Surveillance or such other address as may be hereafter furnished to the
Depositor, Trustee and Master Servicer by Standard & Poor’s]; and (e) in the case of [Moody’s, 99
Church Street, New York, New York 10007, Attention: ABS Monitoring Department, or such other
address as may be hereafter furnished to the Depositor, the Trustee and the Master Servicer in
writing by Moody’s]. Any notice required or permitted to be mailed to a Certificateholder shall be
given by first class mail, postage prepaid, at the address of such holder as shown in the
Certificate Register. Any notice so mailed within the time prescribed in this Agreement shall be
conclusively presumed to have been duly given, whether or not the Certificateholder receives such
notice.

     Section 11.06. Notices to Rating Agencies

     The Depositor, the Master Servicer or the Trustee, as applicable, (a) shall notify each Rating
Agency at such time as it is otherwise required pursuant to this Agreement to give notice of the
occurrence of any of the events described in clause (i), (ii), (iii), (iv), (vii), (viii), (ix) or
(x) below, (b) shall notify the Subservicer at such time as it is otherwise required pursuant to
this Agreement to give notice of the occurrence of any of the events described in clause (i), (ii),
(iii)(1), (vii)(1) or (ix) below, or (c) provide a copy to each Rating Agency at such time as
otherwise required to be delivered pursuant to this Agreement of any of the statements described in
clauses (v) and (vi) below:

               (i) a material change or amendment to this Agreement,

               (ii) the occurrence of an Event of Default,

               (iii) (1) the termination or appointment of a successor Master Servicer or (2) the termination
or appointment of a successor Trustee or a change in the majority ownership of the Trustee,

               (iv) the filing of any claim under the Master Servicer’s blanket fidelity bond and the errors
and omissions insurance policy required by Section 3.12 or the cancellation or modification of
coverage under any such instrument,

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               (v) the statement required to be delivered to the Holders of each Class of Certificates
pursuant to Section 4.03,

               (vi) the statements required to be delivered pursuant to Sections 3.18 and 3.19,

               (vii) (1) a change in the location of the Custodial Account or (2) a change in the location of
the Certificate Account,

               (viii) the occurrence of any monthly cash flow shortfall to the Holders of any Class of
Certificates resulting from the failure by the Master Servicer to make a P&I Advance pursuant to
Section 4.04,

               (ix) the occurrence of the Final Distribution Date, and

               (x) the repurchase of or substitution for any Mortgage Loan,

provided, however, that with respect to notice of the occurrence of the events described in clauses
(iv), (vii) or (viii) above, the Master Servicer shall provide prompt written notice to each Rating
Agency and the Subservicer, if applicable, of any such event known to the Master Servicer.

     All notices to be delivered to the Rating Agencies pursuant to this Section 11.06 or otherwise
required by this Agreement shall be in accordance with Section 11.10 hereof.

     Section 11.07. Severability of Provisions

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

     Section 11.08. Supplemental Provisions for Resecuritization

          (a) This Agreement may be supplemented by means of the addition of a separate Article hereto
(a “Supplemental Article”) for the purpose of resecuritizing any of the Certificates issued
hereunder, under the following circumstances. With respect to any Class or Classes of Certificates
issued hereunder, or any portion of any such Class, as to which the Depositor or any of its
Affiliates (or any designee thereof) is the registered Holder (the “Resecuritized Certificates”),
the Depositor may deposit such Resecuritized Certificates into a new REMIC, grantor trust or
custodial arrangement (a “Restructuring Vehicle”) to be held by the Trustee pursuant to a
Supplemental Article. The instrument adopting such Supplemental Article shall be executed by the
Depositor, the Master Servicer and the Trustee; provided, that neither the Master Servicer nor the
Trustee shall withhold their consent thereto if their respective interests would not be materially
adversely affected thereby. To the extent that the terms of the Supplemental Article do not in any
way affect any provisions of this Agreement as to any of the

144

 

Certificates initially issued hereunder, the adoption of the Supplemental Article shall not
constitute an “amendment” of this Agreement.

          (b) Each Supplemental Article shall set forth all necessary provisions relating to the holding
of the Resecuritized Certificates by the Trustee, the establishment of the Restructuring Vehicle,
the issuing of various classes of new certificates by the Restructuring Vehicle and the
distributions to be made thereon, and any other provisions necessary to the purposes thereof. In
connection with each Supplemental Article, the Depositor shall deliver to the Trustee an Opinion of
Counsel to the effect that (i) the Restructuring Vehicle will qualify as a REMIC, grantor trust or
other entity not subject to taxation for federal income tax purposes and (ii) the adoption of the
Supplemental Article will not endanger the status of any REMIC created hereunder as a REMIC or
result in the imposition of a tax upon the Trust Fund (including but not limited to the tax on
prohibited transaction as defined in Section 860F(a)(2) of the Code and the tax on contributions to
a REMIC as set forth in Section 860G(d) of the Code.

     Section 11.09. Intended Third Party Beneficiary

     The Limited Repurchase Right Holder is an express third-party beneficiary of Section 4.09 of
this Agreement, and shall have the right to enforce the related provisions of Section 4.09 of this
Agreement as if it were a party hereto.

     Section 11.10. Exchange Act Rule 17g-5 Procedures

     The Trustee shall not communicate with (including verbal communication) or provide information
to any Rating Agency regarding anything related to this Agreement without prior consultation with
the [_________________] to ensure compliance with Rule 17g-5 under the Exchange Act (“Rule 17g-5”).
With respect to any document, notice or other information required pursuant to this Agreement to
be sent by the Trustee to any Rating Agency, the Trustee agrees to provide any such document,
notice or other information to [_________________] for posting on its Rule 17g-5 compliant website
related to this transaction (the “Rule 17g-5 Website”). [_________________] shall promptly confirm
to the Trustee any such document, notice or other information has been posted to the Rule 17g-5
Website as a condition to the Trustee providing such document, notice or other information to any
Rating Agency. Notwithstanding anything to the contrary in this Agreement, the Trustee shall have
no obligation to deliver such document, notice or other information to any Rating Agency until such
applicable party has received written confirmation from [_________________] of the posting of such
document, notice or other information by [_________________] to the Rule 17g-5 Website, and the
Trustee shall not be liable for any failure to deliver such document, notice or other information
to any Rating Agency prior to any applicable deadline in this Agreement where such failure is
caused by any failure or inability of [_________________] timely to provide such written
confirmation. The Trustee, pursuant to procedures mutually agreed upon with [_________________],
shall require that any person attempting to access the Trustee website related to this transaction
represent that they are not an employee or representative of a rating agency, provided that the
Trustee shall bear no expense or liability relating to any representation made by any person
attempting to access the Trustee website.

     Section 11.11. Tax Treatment

145

 

     Each party to this Agreement and each holder of a Certificate by the acceptance of its
ownership in such Certificate, hereby agrees to treat the payment made and received hereunder and
any payments received with respect to any Certificate for federal income tax purposes consistently
with the REMIC structure as set forth herein or incorporated herein and with the deemed payments
made with respect thereto as set forth herein.

146

 

ARTICLE XII

COMPLIANCE WITH REGULATION AB

     Section 12.01. Intent of the Parties; Reasonableness.

     The Depositor, the Trustee and the Master Servicer acknowledge and agree that the purpose of
this Article XII is to facilitate compliance by the Depositor with the provisions of Regulation AB
and related rules and regulations of the Commission. The Depositor shall not 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 under the Securities Act and the Exchange Act. Each of the
Master Servicer and the Trustee acknowledges that interpretations of the requirements of Regulation
AB may change over time, whether due to interpretive guidance provided by the Commission or its
staff, consensus among participants in the mortgage-backed securities markets, advice of counsel,
or otherwise, and agrees to comply with requests made by the Depositor in good faith for delivery
of information under these provisions on the basis of evolving interpretations of Regulation AB.
Each of the Master Servicer and the Trustee shall cooperate fully with the Depositor to deliver to
the Depositor (including any of its assignees or designees), any and all disclosure, statements,
reports, certifications, records and any other information necessary in the reasonable, good faith
determination of the Depositor to permit the Depositor or such Depositor to comply with the
provisions of Regulation AB, together with such disclosures relating to the Master Servicer, the
Trustee and the Mortgage Loans, or the servicing of the Mortgage Loans, reasonably believed by the
Depositor to be necessary in order to effect such compliance.

     Section 12.02. Additional Representations and Warranties of the Trustee.

     (a) The Trustee shall be deemed to represent to the Depositor as of the date hereof
and on each date on which information is provided to the Depositor under Sections 12.01, 12.02(b)
or 12.03 that, except as disclosed in writing to the Depositor prior to such date: (i) it is not
aware and has not received notice that any default, early amortization or other performance
triggering event has occurred as to any other Securitization Transaction due to any default of the
Trustee; (ii) there are no aspects of its financial condition that could have a material adverse
effect on the performance by it of its trustee obligations under this Agreement or any other
Securitization Transaction as to which it is the trustee; (iii) there are no material legal or
governmental proceedings pending (or known to be contemplated) against it that would be material to
Certificateholders; (iv) there are no relationships or transactions relating to the Trustee with
respect to the Depositor or any sponsor, issuing entity, servicer, trustee, originator, significant
obligor, enhancement or support provider or other material transaction party (as such terms are
used in Regulation AB) relating to the Securitization Transaction contemplated by the Agreement, as
identified by the Depositor to the Trustee in writing as of the Closing Date (each, a “Transaction
Party”) that are outside the ordinary course of business or on terms other than would be obtained
in an arm’s length transaction with an unrelated third party, apart from the Securitization
Transaction, and that are material to the investors’ understanding of the Certificates; and (v) the
Trustee is not an affiliate of any Transaction Party. The Depositor shall notify the Trustee of
any change in the identity of a Transaction Party after the Closing Date.

147

 

     (b) If so requested by the Depositor on any date following the Closing Date, the
Trustee shall, within five 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 or such confirmation,
provide reasonably adequate disclosure of the pertinent facts, in writing, to the requesting party.

     Section 12.03. Information to Be Provided by the Trustee.

     For so long as the Certificates are outstanding, for the purpose of satisfying the Depositor’s
reporting obligation under the Exchange Act with respect to any class of Certificates, the Trustee
shall provide to the Depositor a written description of (a) any litigation or governmental
proceedings pending against the Trustee as of the last day of each calendar month that would be
material to Certificateholders, and (b) any affiliations or relationships (as described in Item
1119 of Regulation AB) that develop following the Closing Date between the Trustee and any
Transaction Party of the type described in Section 12.02(a)(iv) or 12.02(a)(v) as of the last day
of each calendar year. Any descriptions required with respect to legal proceedings, as well as
updates to previously provided descriptions, under this Section 12.03 shall be given no later than
five Business Days prior to the Determination Date following the month in which the relevant event
occurs, and any notices and descriptions required with respect to affiliations, as well as updates
to previously provided descriptions, under this Section 12.03 shall be given no later than January
31 of the calendar year following the year in which the relevant event occurs. As of the date the
Depositor or Master Servicer files each Report on Form 10 D and Report on Form 10 K with respect to
the Certificates, the Trustee will be deemed to represent that any information previously provided
under this Article XII is materially correct and does not have any material omissions unless the
Trustee has provided an update to such information. The Depositor will allow the Trustee to review
any disclosure relating to material litigation against the Trustee prior to filing such disclosure
with the Commission to the extent the Depositor changes the information provided by the Trustee.

     Section 12.04. Report on Assessment of Compliance and Attestation.

     On or before March 15 of each calendar year, the Trustee shall:

     (a) deliver to the Depositor a report (in form and substance reasonably satisfactory
to the Depositor) regarding the Trustee’s assessment of compliance with the applicable 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
Depositor and signed by an authorized officer of the Trustee, and shall address each of the
Servicing Criteria specified on Exhibit R hereto; and

     (b) deliver to the Depositor a report of a registered public accounting firm
reasonably acceptable to the Depositor that attests to, and reports on, the assessment of
compliance made by the Trustee and delivered pursuant to the preceding 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.

148

 

     Section 12.05. Indemnification; Remedies.

     (a) The Trustee shall indemnify the Depositor, each affiliate of the Depositor, the
Master Servicer and each broker dealer acting as underwriter, placement agent or initial purchaser
of the Certificates or 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, employees and agents of each of the foregoing, 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 information, report, certification, accountants’ attestation or other material provided
under this Article XII by or on behalf of the Trustee (collectively, the “Trustee
Information”), or (B) the omission or alleged omission to state in the Trustee Information a
material fact required to be stated in the Trustee 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 Trustee Information and not to any other information communicated in connection
with a sale or purchase of securities, without regard to whether the Trustee Information or any
portion thereof is presented together with or separately from such other information;

          (ii) any failure by the Trustee to deliver any information, report, certification,
accountants’ attestation or other material when and as required under this Article XII; or

          (iii) any breach by the Trustee of a representation or warranty set forth in Section
12.02(a) or in a writing furnished pursuant to Section 12.02(b).

     (b) In the case of any failure of performance described in clause (ii) of Section
12.05(a), the Trustee shall (i) promptly reimburse the Depositor for all costs reasonably incurred
by the Depositor in order to obtain the information, report, certification, accountants’
attestation or other material not delivered as required by the Trustee and (ii) cooperate with the
Depositor to mitigate any damages that may result from such failure.

     (c) The Depositor and the Master Servicer shall indemnify the Trustee, each
affiliate of the Trustee or each Person who controls the Trustee (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, employees and agents of the Trustee, 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) any untrue statement of a material fact contained or alleged to be contained
in any information provided under this Agreement by or on behalf of the Depositor or [_________]
for inclusion in any report filed with Commission under the Exchange Act (collectively, the
“[_________] Information”), or (ii) the omission or alleged omission to state in the [_________]
Information a material fact required to be stated in the [_________] Information or necessary in
order to make the statements therein, in the light of the circumstances under

149

 

which they were made, not misleading; provided, by way of clarification, that clause (ii) of
this paragraph shall be construed solely by reference to the [_________] Information and not to any
other information communicated in connection with a sale or purchase of securities, without regard
to whether the [_________] Information or any portion thereof is presented together with or
separately from such other information.

[Signature Page Follows]

150

 

     IN WITNESS WHEREOF, the Depositor, the Master Servicer and the Trustee have caused their names
to be signed hereto by their respective officers thereunto duly authorized and their respective
seals, duly attested, to be hereunto affixed, all as of the date and year first above written.

	 	 	 	 	 
	 	PHOENIX RESIDENTIAL SECURITIES, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	Vice President 	 
	 
	 	[__________________________]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[_______________________],

as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

151

 

STATE OF PENNSYLVANIA           )

) ss.:

COUNTY OF _______________     )

     On the ___ day of [___________], 20[_], before me, a notary public in and for said State,
personally appeared _______________, known to me to be a [Vice President] of Phoenix Residential
Securities, LLC, one of the limited liability companies that executed the within instrument, and
also known to me to be the person who executed it on behalf of said limited liability company, and
acknowledged to me that such limited liability company executed the within instrument.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year
in this certificate first above written.

	 	 	 	 	 
	 	 	 
	 	  	 	 
	 	 	Notary Public 	 
	 	 	 	 
	 

[Notarial Seal]

 

 

	 	 	 	 	 	 	 

	STATE OF MINNESOTA

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF HENNEPIN

	 	 	)	 	 	 

     On the ___ day of [___________], 20[_], before me, a notary public in and for said State,
personally appeared ____________, known to me to be a [Managing Director] of
[__________________________], one of the limited liability companies that executed the within
instrument, and also known to me to be the person who executed it on behalf of said limited
liability company, and acknowledged to me that such limited liability company executed the within
instrument.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year
in this certificate first above written.

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Notary Public 	 
	 	 	 	 
	 

[Notarial Seal]

 

 

	 	 	 	 	 	 	 

	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF NEW YORK

	 	 	)	 	 	 

     On the ___ day of December, 2005, before me, a notary public in and for said State, personally
appeared ______________, known to me to be a Assistant Vice President of [_________________], a
[______________] that executed the within instrument, and also known to me to be the person who
executed it on behalf of said banking corporation, and acknowledged to me that such banking
corporation executed the within instrument.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year
in this certificate first above written.

	 	 	 	 	 
	 	 	 
	 	  	

 	 
	 	 	Notary Public 	 
	 	 	 	 
	 

[Notarial Seal]

 

 

EXHIBIT A

FORM OF CLASS A-[ ] CERTIFICATE

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST” IN A
“REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS
860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986 COUPLED WITH THE RIGHT TO RECEIVE BASIS RISK
SHORTFALL CARRY-FORWARD AMOUNTS.

     THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE PRINCIPAL
PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE
OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM
THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE
PRINCIPAL BALANCE BY INQUIRY OF THE TRUSTEE NAMED HEREIN.

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

A-1

 

	 	 	 

	CUSIP: [______]

	 	Certificate No. [_]
	 
	 	 
	Date of Pooling and Servicing

	 	[Adjustable Pass-Through Rate]
	Agreement and Cut-off Date:
	 	 
	[________] 1, 20[_]
	 	 
	 
	 	 
	First Distribution Date:
	 	 
	[_________], 20[_]

	 	Percentage Interest: [_]%
	Master Servicer:

	 	Aggregate Initial Certificate
	[_________________]

	 	Principal Balance of the Class
A-[_] Certificates:
	 

	 	$_________
	 
	 	 
	Final Scheduled Distribution Date:

	 	Initial Certificate Principal
Balance of this Class A-[_]
Certificate:
	[___________], 20[_]

	 	$_________

MORTGAGE-BACKED PASS-THROUGH CERTIFICATES

SERIES 20[_]-[ABC][_]

evidencing a percentage interest in the distributions allocable to
the Class A-[_] Certificates with respect to a Trust Fund consisting
primarily of a pool of one- to four-family fixed and adjustable
interest rate, first lien mortgage loans sold by PHOENIX RESIDENTIAL
SECURITIES, LLC

     This Certificate is payable solely from the assets of the Trust Fund, and does not represent
an obligation of or interest in Phoenix Residential Securities, LLC, the Master Servicer, the
Trustee referred to below or [_______________] or any of their affiliates. Neither this Certificate
nor the underlying Mortgage Loans are guaranteed or insured by any governmental agency or
instrumentality or by Phoenix Residential Securities, LLC, the Master Servicer, the Trustee or
[_______________] or any of their affiliates. None of the Depositor, the Master Servicer,
[_______________] or any of their affiliates will have any obligation with respect to any
certificate or other obligation secured by or payable from payments on the Certificates.

     This certifies that [____________] is the registered owner of the Percentage Interest
evidenced by this Certificate (obtained by dividing the Initial Certificate Principal Balance of
this Certificate by the aggregate Initial Certificate Principal Balance of all Class A-[_]
Certificates, both as specified above) in certain distributions with respect to the Trust Fund
consisting primarily of an interest in a pool of one- to four-family fixed and adjustable interest
rate, first lien mortgage loans (the “Mortgage Loans”), sold by Phoenix Residential Securities, LLC
(hereinafter called the “Depositor,” which term includes any successor entity under the Agreement
referred to below). The Trust Fund was created pursuant to a Pooling and Servicing Agreement dated
as specified above (the “Agreement”) among the Depositor, the Master Servicer and
[_______________], as trustee (the “Trustee”), a summary of certain of the

A-2

 

pertinent provisions of which is set forth hereafter. To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Agreement. This Certificate is
issued under and is subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof assents and by which
such Holder is bound.

     Pursuant to the terms of the Agreement, a distribution will be made on the 25th day of each
month or, if such 25th day is not a Business Day, the Business Day immediately following (the
“Distribution Date”), commencing as described in the Agreement, to the Person in whose name this
Certificate is registered at the close of business on the day prior (or if such last day is not a
Business Day, the Business Day immediately preceding such day) to such Distribution Date (the
“Record Date”), from the Available Distribution Amount in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount of interest and principal, if any,
required to be distributed to Holders of Class A-[_] Certificates on such Distribution Date.

     Distributions on this Certificate will be made either by the Master Servicer acting on behalf
of the Trustee or by a Paying Agent appointed by the Trustee in immediately available funds (by
wire transfer or otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Master Servicer or such Paying Agent, or by check mailed to the address of the
Person entitled thereto, as such name and address shall appear on the Certificate Register.

     Notwithstanding the above, the final distribution on this Certificate will be made after due
notice of the pendency of such distribution and only upon presentation and surrender of, this
Certificate at the office or agency appointed by the Trustee for that purpose in [_______________].
The Initial Certificate Principal Balance of this Certificate is set forth above. The Certificate
Principal Balance hereof will be reduced from time to time pursuant to the Agreement.

     This Certificate is one of a duly authorized issue of Certificates issued in several Classes
designated as Mortgage-Backed Pass-Through Certificates of the Series specified hereon (herein
collectively called the “Certificates”).

     The Certificates are limited in right of payment to certain collections and recoveries
respecting the Mortgage Loans, all as more specifically set forth herein and in the Agreement. In
the event Master Servicer funds are advanced with respect to any Mortgage Loan, such advance is
reimbursable to the Master Servicer, to the extent provided in the Agreement, from related
recoveries on such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

     As provided in the Agreement, withdrawals from the Custodial Account and/or the Certificate
Account created for the benefit of Certificateholders may be made by the Master Servicer from time
to time for purposes other than distributions to Certificateholders, such purposes including
without limitation reimbursement to the Depositor and the Master Servicer of advances made, or
certain expenses incurred, by either of them.

A-3

 

     The Agreement permits, with certain exceptions therein provided, the amendment of the
Agreement and the modification of the rights and obligations of the Depositor, the Master Servicer
and the Trustee and the rights of the Certificateholders under the Agreement from time to time by
the Depositor, the Master Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66% of the Percentage Interests of each Class of
Certificates affected thereby. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent is made upon the Certificate. The Agreement also permits the amendment
thereof in certain circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of certain Classes of
Certificates.

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

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

     No service charge will be made for any such registration of transfer or exchange, but the
Trustee may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     The Depositor, the Master Servicer, the Trustee and the Certificate Registrar and any agent of
the Depositor, the Master Servicer, the Trustee or the Certificate Registrar may treat the Person
in whose name this Certificate is registered as the owner hereof for all purposes, and neither the
Depositor, the Master Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

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

     The obligations created by the Agreement in respect of the Certificates and the Trust Fund
created thereby shall terminate upon the payment to Certificateholders of all amounts held by or on
behalf of the Trustee and required to be paid to them pursuant to the Agreement following the
earlier of (i) the maturity or other liquidation of the last Mortgage Loan subject thereto or the
disposition of all property acquired upon foreclosure or deed in lieu of foreclosure

A-4

 

of any Mortgage Loan, and (ii) the purchase by the Master Servicer or Holder of the Class SB
Certificates, as described in the Agreement, thereby effecting early retirement of the related
Certificates. The Agreement permits, but does not require, the purchase by the Master Servicer or
Holder of the Class SB Certificates, as described in the Agreement, (i) from the Trust Fund of all
remaining Mortgage Loans and all property acquired in respect of such Mortgage Loans, at a price
determined as provided in the Agreement, or (ii) in whole, but not in part, of all of the Class A
Certificates, [Class M Certificates] and Class SB Certificates from the Holders thereof; provided,
that any such options may only be exercised if the Stated Principal Balance of the Mortgage Loans
(before giving effect to the distributions to be made on such Distribution Date), as of the
Distribution Date upon which the proceeds of any such purchase are distributed is less than ten
percent of the Cut-off Date Principal Balance of the Mortgage Loans.

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

A-5

 

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

	 	 	 	 	 
	 	[_______________],

         as Trustee

 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Dated: [_______], 20[_]

CERTIFICATE OF AUTHENTICATION

     This is one of the Class A-[_] Certificates referred to in the within-mentioned Agreement.

	 	 	 	 	 
	 	[_______________], as Certificate Registrar

 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

A-6

 

	 	 	 	 	 

ASSIGNMENT

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

 

 

 

(Please print or typewrite name and address including postal zip code of
assignee) a Percentage Interest evidenced by the within Mortgage-Backed Pass-Through Certificate
and hereby authorizes the transfer of registration of such interest to assignee on the Certificate
Register of the Trust Fund.

     I (We) further direct the Certificate Registrar to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate to the following
address:

 

	 	 	 	 	 	 	 

	Dated:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Signature by or on behalf of assignor
	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Signature Guaranteed

DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

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

 
for the account of _____________________________________________________________ account number or, if
mailed by check, to 

 

     Applicable
statements should be mailed to:
 

 

 

.

     This information is provided by _________________________, the assignee named above, or
__________________________, as its agent.

A-7

 

EXHIBIT B-1

FORM OF CLASS M-[_] CERTIFICATE

     THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A AND CLASS M-[_]
CERTIFICATES AS DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN).

     THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE PRINCIPAL
PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE
OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM
THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE
PRINCIPAL BALANCE BY INQUIRY OF THE TRUSTEE NAMED HEREIN.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST” IN A
“REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS
860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986 (THE “CODE”) COUPLED WITH THE RIGHT TO RECEIVE
BASIS RISK SHORTFALL CARRY-FORWARD AMOUNTS.

     ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE REPRESENTED BY VIRTUE OF ITS
PURCHASE OR HOLDING OF THIS CERTIFICATE (OR INTEREST THEREIN) THAT EITHER (A) SUCH TRANSFEREE IS
NOT AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN OR ARRANGEMENT SUBJECT TO THE PROHIBITED TRANSACTION
PROVISIONS OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION
4975 OF THE CODE OR A PERSON (INCLUDING AN INSURANCE COMPANY INVESTING ITS GENERAL ACCOUNT, AN
INVESTMENT MANAGER, A NAMED FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN) WHO IS USING “PLAN ASSETS” OF
ANY SUCH PLAN TO EFFECT SUCH ACQUISITION (EACH OF THE FOREGOING, A “PLAN INVESTOR”), (B) IT HAS
ACQUIRED AND

B-1-1

 

IS HOLDING THIS CERTIFICATE IN RELIANCE ON U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION
EXEMPTION (“PTE”) 94-29, 59 FED. REG. 14674 (MARCH 29, 1994), AS MOST RECENTLY AMENDED BY PTE
2002-41, 67 FED. REG. 54487 (AUGUST 22, 2002) (THE “ISSUER EXEMPTION”), AND THAT IT UNDERSTANDS
THAT THERE ARE CERTAIN CONDITIONS TO THE AVAILABILITY OF THE ISSUER EXEMPTION INCLUDING THAT THIS
CERTIFICATE MUST BE RATED, AT THE TIME OF PURCHASE, NOT LOWER THAN “BBB-” (OR ITS EQUIVALENT) BY
STANDARD & POOR’S, FITCH OR MOODY’S OR (C) (I) THE TRANSFEREE IS AN INSURANCE COMPANY, (II) THE
SOURCE OF FUNDS USED TO PURCHASE OR HOLD THIS CERTIFICATE IS AN “INSURANCE COMPANY GENERAL ACCOUNT”
(AS DEFINED IN U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 95-60), AND
(III) THE CONDITIONS SET FORTH IN SECTIONS I AND III OF PTCE 95-60 HAVE BEEN SATISFIED (EACH ENTITY
THAT SATISFIES THIS CLAUSE (C), A “COMPLYING INSURANCE COMPANY”).

     IF THIS CERTIFICATE (OR ANY INTEREST THEREIN) IS ACQUIRED OR HELD BY ANY PERSON THAT DOES NOT
SATISFY THE CONDITIONS DESCRIBED IN THE PRECEDING PARAGRAPH, THEN THE LAST PRECEDING TRANSFEREE
THAT EITHER (I) IS NOT A PLAN INVESTOR, (II) ACQUIRED SUCH CERTIFICATE IN COMPLIANCE WITH THE
ISSUER EXEMPTION, OR (III) IS A COMPLYING INSURANCE COMPANY SHALL BE RESTORED, TO THE EXTENT
PERMITTED BY LAW, TO ALL RIGHTS AND OBLIGATIONS AS CERTIFICATE OWNER THEREOF RETROACTIVE TO THE
DATE OF SUCH TRANSFER OF THIS CERTIFICATE. THE TRUSTEE SHALL BE UNDER NO LIABILITY TO ANY PERSON
FOR MAKING ANY PAYMENTS DUE ON THIS CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

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

B-1-2

 

	 	 	 

	CUSIP: [______]

	 	Certificate No. M-[_]
	 
	 	 
	Date of Pooling and Servicing
Agreement and Cut-off Date:[________] 1, 20[_]

	 	[Adjustable Pass-Through Rate]
	
	 	 
	First Distribution Date:
[________], 20[_]

	 	Aggregate Initial Certificate
Principal Balance of the Class 

M-[_] Certificates: $______
	 
	 	 
	Master Servicer:
[_________________]

	 	 
	 
	 	 
	Final Scheduled Distribution Date:
_________ __, 20[_]

	 	Initial Certificate Principal
Balance of the Class M-[_]

Certificates: $_________

MORTGAGE-BACKED PASS-THROUGH CERTIFICATES

SERIES 20[_]-[ABC][_]

evidencing a percentage interest in the distributions allocable to
the Class M-[_] Certificates with respect to a Trust Fund consisting
primarily of a pool of one- to four-family fixed and adjustable
interest rate, first lien mortgage loans sold by PHOENIX RESIDENTIAL
SECURITIES, LLC

     This Certificate is payable solely from the assets of the Trust Fund, and does not represent
an obligation of or interest in Phoenix Residential Securities, LLC, the Master Servicer, the
Trustee referred to below or [___________] or any of their affiliates. Neither this Certificate nor
the underlying Mortgage Loans are guaranteed or insured by any governmental agency or
instrumentality or by Phoenix Residential Securities, LLC, the Master Servicer, the Trustee or
[___________] or any of their affiliates. None of the Depositor, the Master Servicer, [___________]
or any of their affiliates will have any obligation with respect to any certificate or other
obligation secured by or payable from payments on the Certificates.

     This certifies that [___________] is the registered owner of the Percentage Interest evidenced
by this Certificate (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the aggregate Initial Certificate Principal Balance of all Class M-[_] Certificates,
both as specified above) in certain distributions with respect to the Trust Fund consisting
primarily of an interest in a pool of one- to four-family fixed and adjustable rate, first lien
mortgage loans (the “Mortgage Loans”), sold by Phoenix Residential Securities, LLC (hereinafter
called the “Depositor,” which term includes any successor entity under the Agreement referred to
below). The Trust Fund was created pursuant to a Pooling and Servicing Agreement dated as specified
above (the “Agreement”) among the Depositor, the Master Servicer and [___________], as trustee (the
“Trustee”), a summary of certain of the pertinent provisions of which is set forth hereafter. To
the extent not defined herein, the capitalized terms used herein have the meanings assigned in the
Agreement. This Certificate is issued under and is

B-1-3

 

subject to the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by which such Holder is
bound.

     Pursuant to the terms of the Agreement, a distribution will be made on the 25th day of each
month or, if such 25th day is not a Business Day, the Business Day immediately following (the
“Distribution Date”), commencing as described in the Agreement, to the Person in whose name this
Certificate is registered at the close of business on the day prior (or if such last day is not a
Business Day, the Business Day immediately preceding such day) to such Distribution Date (the
“Record Date”), from the Available Distribution Amount in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount of interest and principal, if any,
required to be distributed to Holders of Class M-[_] Certificates on such Distribution Date.

     Distributions on this Certificate will be made either by the Master Servicer acting on behalf
of the Trustee or by a Paying Agent appointed by the Trustee in immediately available funds (by
wire transfer or otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Master Servicer or such Paying Agent, or by check mailed to the address of the
Person entitled thereto, as such name and address shall appear on the Certificate Register.

     Notwithstanding the above, the final distribution on this Certificate will be made after due
notice of the pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee for that purpose in [___________]. The
Initial Certificate Principal Balance of this Certificate is set forth above. The Certificate
Principal Balance hereof will be reduced to the extent of the distributions allocable to principal
and any Realized Losses allocable hereto.

     Any Transferee of this Certificate will be deemed to have made representations relating to the
permissibility of such transfer under ERISA and Section 4975 of the Code, as described in Section
5.02(e)(ii) of the Agreement. In addition, any purported Certificate Owner whose acquisition or
holding of this Certificate (or interest therein) was effected in violation of the restrictions in
Section 5.02(e)(ii) of the Agreement shall indemnify and hold harmless the Depositor, the Trustee,
the Master Servicer, any Subservicer, any underwriter and the Trust Fund from and against any and
all liabilities, claims, costs or expenses incurred by such parties as a result of such acquisition
or holding.

     This Certificate is one of a duly authorized issue of Certificates issued in several Classes
designated as Mortgage-Backed Pass-Through Certificates of the Series specified hereon (herein
collectively called the “Certificates”). The Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more specifically set
forth herein and in the Agreement. In the event Master Servicer funds are advanced with respect to
any Mortgage Loan, such advance is reimbursable to the Master Servicer, to the extent provided in
the Agreement, from related recoveries on such Mortgage Loan or from other cash that would have
been distributable to Certificateholders. As provided in the Agreement, withdrawals from the
Custodial Account and/or the Certificate Account created for the benefit of Certificateholders may
be made by the Master Servicer from time to time for purposes other than distributions to

B-1-4

 

Certificateholders, such purposes including without limitation reimbursement to the Depositor
and the Master Servicer of advances made, or certain expenses incurred, by either of them.

     The Agreement permits, with certain exceptions therein provided, the amendment of the
Agreement and the modification of the rights and obligations of the Depositor, the Master Servicer
and the Trustee and the rights of the Certificateholders under the Agreement at any time by the
Depositor, the Master Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66% of the Percentage Interests of each Class of
Certificates affected thereby. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent is made upon the Certificate. The Agreement also permits the amendment
thereof in certain circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of certain Classes of
Certificates.

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

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

     No service charge will be made for any such registration of transfer or exchange, but the
Trustee may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     The Depositor, the Master Servicer, the Trustee and the Certificate Registrar and any agent of
the Depositor, the Master Servicer, the Trustee or the Certificate Registrar may treat the Person
in whose name this Certificate is registered as the owner hereof for all purposes, and neither the
Depositor, the Master Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

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

     The obligations created by the Agreement in respect of the Certificates and the Trust Fund
created thereby shall terminate upon the payment to Certificateholders of all amounts held

B-1-5

 

by or on behalf of the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the maturity or other liquidation of the last Mortgage Loan subject
thereto or the disposition of all property acquired upon foreclosure or deed in lieu of foreclosure
of any Mortgage Loan, and (ii) the purchase by the Master Servicer or Holder of the Class SB
Certificates, as described in the Agreement, thereby effecting early retirement of the related
Certificates. The Agreement permits, but does not require, the purchase by the Master Servicer or
Holder of the Class SB Certificates, as described in the Agreement, (i) from the Trust Fund of all
remaining Mortgage Loans and all property acquired in respect of such Mortgage Loans, at a price
determined as provided in the Agreement, or (ii) in whole, but not in part, of all of the Class A
Certificates, Class M Certificates and Class SB Certificates from the Holders thereof; provided,
that any such options may only be exercised if the Stated Principal Balance of the Mortgage Loans
(before giving effect to the distributions to be made on such Distribution Date), as of the
Distribution Date upon which the proceeds of any such purchase are distributed is less than ten
percent of the Cut-off Date Principal Balance of the Mortgage Loans.

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

B-1-6

 

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

	 	 	 	 	 
	 	 

[__________________],

            as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 

Dated: [_________], 20[_]

CERTIFICATE OF AUTHENTICATION

     This is one of the Class M-[_] Certificates referred to in the within-mentioned Agreement.

	 	 	 	 	 
	 	[__________________],

          as Certificate Registrar

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

B-1-7

 

ASSIGNMENT

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

 

 

(Please print or typewrite name and address including postal zip code of
assignee) a Percentage Interest evidenced by the within Mortgage-Backed Pass-Through Certificate
and hereby authorizes the transfer of registration of such interest to assignee on the Certificate
Register of the Trust Fund.

     I (We) further direct the Certificate Registrar to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate to the following
address:  

 

	 	 	 	 	 	 	 
	 	 	 	 	 
	Dated: 	 	 	 
	 	 	 	Signature by or on behalf of assignor 
	 
	 	 	 	
 
	 	 	 	Signature Guaranteed 	 
	 	 	 	 	 
	 

DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

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

 

 for the account of _________________ account number or, if
mailed by check, to
 

     Applicable
statements should be mailed to:  

     ________________________.

     This information is provided by _________________________, the assignee named above, or
__________________________, as its agent.

 

 

EXHIBIT B-2

FORM OF CLASS B-[_] CERTIFICATE

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A CERTIFICATES AND CLASS M
CERTIFICATES AS DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN).

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

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE PROVIDES EITHER A
CERTIFICATION PURSUANT TO SECTION 5.02(e) OF THE AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO
THE TRUSTEE THAT THE PURCHASE OF THIS CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT
PROHIBITED TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED (“ERISA”), OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE MASTER SERVICER, THE
COMPANY OR THE TRUSTEE TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE
AGREEMENT.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST” IN A “REAL
ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND
860D OF THE CODE COUPLED WITH THE RIGHT TO RECEIVE BASIS RISK SHORTFALL CARRY-FORWARD AMOUNTS.

B-2-1

 

	 	 	 

	 

	 	Certificate No. B-[_]
	 
	 	 
	Date
of Pooling and Servicing

Agreement and Cut-off Date:

	 	[Adjustable Pass-Through Rate]
	[________] 1, 20[_]
	 	 
	First
Distribution Date:

[________], 20[_]

	 	Aggregate Initial Certificate
Principal Balance of the Class
B-[_]Certificates: $______
	 
	 	 
	Master Servicer:
[_________________]

	 	 
	Final
Scheduled Distribution Date:

_________ __, 20[_]

	 	Initial Certificate Principal
Balance of
 the Class B-[_]

Certificates: $_________

MORTGAGE-BACKED PASS-THROUGH CERTIFICATES

SERIES 20[_]-[ABC][_]

evidencing a percentage interest in the distributions allocable to the Class
B-[_] Certificates with respect to a Trust Fund consisting primarily of a
pool of one- to four-family fixed and adjustable interest rate, first lien
mortgage loans sold by PHOENIX RESIDENTIAL SECURITIES, LLC

     This Certificate is payable solely from the assets of the Trust Fund, and does not represent
an obligation of or interest in Phoenix Residential Securities, LLC, the Master Servicer, the
Trustee referred to below or [___________] or any of their affiliates. Neither this Certificate nor
the underlying Mortgage Loans are guaranteed or insured by any governmental agency or
instrumentality or by Phoenix Residential Securities, LLC, the Master Servicer, the Trustee or
[___________] or any of their affiliates. None of the Depositor, the Master Servicer, [___________]
or any of their affiliates will have any obligation with respect to any certificate or other
obligation secured by or payable from payments on the Certificates.

B-2-2

 

     This certifies that Phoenix Residential Securities, LLC is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the Initial Certificate
Principal Balance of this Certificate by the aggregate Initial Certificate Principal Balance of all
Class B-[_] Certificates, both as specified above) in certain distributions with respect to the
Trust Fund consisting primarily of an interest in a pool of one- to four-family fixed and
adjustable rate, first lien mortgage loans (the “Mortgage Loans”), sold by Phoenix Residential
Securities, LLC (hereinafter called the “Depositor,” which term includes any successor entity under
the Agreement referred to below). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as specified above (the “Agreement”) among the Depositor, the Master Servicer and
[___________], as trustee (the “Trustee”), a summary of certain of the pertinent provisions of
which is set forth hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under and is subject to the
terms, provisions and conditions of the Agreement, to which Agreement the Holder of this
Certificate by virtue of the acceptance hereof assents and by which such Holder is bound.

     Pursuant to the terms of the Agreement, a distribution will be made on the 25th day of each
month or, if such 25th day is not a Business Day, the Business Day immediately following (the
“Distribution Date”), commencing as described in the Agreement, to the Person in whose name this
Certificate is registered at the close of business on the day prior (or if such last day is not a
Business Day, the Business Day next preceding such day) to such Distribution Date (the “Record
Date”), from the Available Distribution Amount in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount of interest and principal, if any, required
to be distributed to Holders of Class B-[_] Certificates on such Distribution Date.

     Distributions on this Certificate will be made either by the Master Servicer acting on behalf
of the Trustee or by a Paying Agent appointed by the Trustee in immediately available funds (by
wire transfer or otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Master Servicer or such Paying Agent, or by check mailed to the address of the
Person entitled thereto, as such name and address shall appear on the Certificate Register.

     Notwithstanding the above, the final distribution on this Certificate will be made after due
notice of the pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee for that purpose in [___________]. The
Initial Certificate Principal Balance of this Certificate is set forth above. The Certificate
Principal Balance hereof will be reduced to the extent of the distributions allocable to principal
and any Realized Losses allocable hereto.

B-2-3

 

     No transfer of this Class B Certificate will be made unless such transfer is exempt from the
registration requirements of the Securities Act of 1933, as amended, and any applicable state
securities laws or is made in accordance with said Act and laws. In the event that such a transfer
is to be made, (i) the Trustee or the Company may require an opinion of counsel acceptable to and
in form and substance satisfactory to the Trustee and the Company that such transfer is exempt
(describing the applicable exemption and the basis therefor) from or is being made pursuant to the
registration requirements of the Securities Act of 1933, as amended, and of any applicable statute
of any state and (ii) the transferee shall execute an investment letter in the form described by
the Agreement. The Holder hereof desiring to effect such transfer shall, and does hereby agree to,
indemnify the Trustee, the Company, the Master Servicer and the Certificate Registrar acting on
behalf of the Trustee against any liability that may result if the transfer is not so exempt or is
not made in accordance with such Federal and state laws. In connection with any such transfer, the
Trustee will also require either (i) an opinion of counsel addressed to the Trustee, the Company
and the Master Servicer, acceptable to and in form and substance satisfactory to the Trustee with
respect to the permissibility of such transfer under the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), and Section 4975 of the Internal Revenue Code (the “Code”) and stating,
among other things, that the transferee’s acquisition of a Class B Certificate will not constitute
or result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the
Code or (ii) a representation letter, in the form as described by Section 5.02(e) of the Agreement,
either stating that the transferee is not an employee benefit or other plan subject to the
prohibited transaction provisions of ERISA or Section 4975 of the Code (a “Plan”), or any other
person (including an investment manager, a named fiduciary or a trustee of any Plan) acting,
directly or indirectly, on behalf of or purchasing any Certificate with “plan assets” of any Plan,
or stating that the transferee is an insurance company, the source of funds to be used by it to
purchase the Certificate is an “insurance company general account” (within the meaning of
Department of Labor Prohibited Transaction Class Exemption (“PTCE”) 95-60), and the purchase is
being made in reliance upon the availability of the exemptive relief afforded under Sections I and
III of PTCE 95-60.

     This Certificate is one of a duly authorized issue of Certificates issued in several Classes
designated as Mortgage-Backed Pass-Through Certificates of the Series specified hereon (herein
collectively called the “Certificates”). The Certificates are limited in right of payment to
certain collections and recoveries respecting the Mortgage Loans, all as more specifically set
forth herein and in the Agreement. In the event Master Servicer funds are advanced with respect to
any Mortgage Loan, such advance is reimbursable to the Master Servicer, to the extent provided in
the Agreement, from related recoveries on such Mortgage Loan or from other cash that would have
been distributable to Certificateholders. As provided in the Agreement, withdrawals from the
Custodial Account and/or the Certificate Account created for the benefit of Certificateholders may
be made by the Master Servicer from time to time for purposes other than distributions to
Certificateholders, such purposes including without limitation reimbursement to the Depositor and
the Master Servicer of advances made, or certain expenses incurred, by either of them.

B-2-4

 

     The Agreement permits, with certain exceptions therein provided, the amendment of the
Agreement and the modification of the rights and obligations of the Depositor, the Master Servicer
and the Trustee and the rights of the Certificateholders under the Agreement at any time by the
Depositor, the Master Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66% of the Percentage Interests of each Class of
Certificates affected thereby. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent is made upon the Certificate. The Agreement also permits the amendment
thereof in certain circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of certain Classes of
Certificates.

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

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

     No service charge will be made for any such registration of transfer or exchange, but the
Trustee may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     The Depositor, the Master Servicer, the Trustee and the Certificate Registrar and any agent of
the Depositor, the Master Servicer, the Trustee or the Certificate Registrar may treat the Person
in whose name this Certificate is registered as the owner hereof for all purposes, and neither the
Depositor, the Master Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

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

B-2-5

 

     The obligations created by the Agreement in respect of the Certificates and the Trust Fund
created thereby shall terminate upon the payment to Certificateholders of all amounts held by or on
behalf of the Trustee and required to be paid to them pursuant to the Agreement following the
earlier of (i) the maturity or other liquidation of the last Mortgage Loan subject thereto or the
disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any
Mortgage Loan, and (ii) the purchase by the Master Servicer or Holder of the Class SB Certificates,
as described in the Agreement, thereby effecting early retirement of the related Certificates. The
Agreement permits, but does not require, the purchase by the Master Servicer or Holder of the Class
SB Certificates, as described in the Agreement, (i) from the Trust Fund of all remaining Mortgage
Loans and all property acquired in respect of such Mortgage Loans, at a price determined as
provided in the Agreement, or (ii) in whole, but not in part, of all of the Class A Certificates,
Class M Certificates and Class SB Certificates from the Holders thereof; provided, that any such
options may only be exercised if the Stated Principal Balance of the Mortgage Loans (before giving
effect to the distributions to be made on such Distribution Date), as of the Distribution Date upon
which the proceeds of any such purchase are distributed is less than ten percent of the Cut-off
Date Principal Balance of the Mortgage Loans.

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

B-2-6

 

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

	 	 	 	 	 
	 	[__________________],

         as Trustee 	 
	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Dated: [_________], 20[_]

CERTIFICATE OF AUTHENTICATION

This is one of the Class B-[_] Certificates referred to in the within-mentioned Agreement.

	 	 	 	 	 
	 	[__________________],

as Certificate Registrar 	 
	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

B-2-7

 

	 	 	 	 	 

ASSIGNMENT

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

 

 

(Please print or typewrite name and address including postal zip code of
assignee) a Percentage Interest evidenced by the within Mortgage-Backed Pass-Through Certificate
and hereby authorizes the transfer of registration of such interest to assignee on the Certificate
Register of the Trust Fund.

I (We) further direct the Certificate Registrar to issue a new Certificate of a like denomination
and Class, to the above named assignee and deliver such Certificate to the following address:

Dated:_________________ _______________________

     Signature by or on behalf of assignor

     _______________________

     Signature Guaranteed

DISTRIBUTION INSTRUCTIONS

The assignee should include the following for purposes of distribution:

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

 

for the account of _____________________________________________________________ account number or, if mailed by check, to

Applicable statements should be mailed to: 

 

.

This information is provided by _________________________, the assignee named above, or
__________________________, as its agent.

 

 

EXHIBIT C

FORM OF CLASS SB CERTIFICATE

     THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A CERTIFICATES AND CLASS M
CERTIFICATES AS DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN).

     SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST” IN A
“REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS
860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986 (THE “CODE”) COUPLED WITH AN OBLIGATION TO MAKE
BASIS RISK SHORTFALL CARRY-FORWARD AMOUNTS.

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

     NO TRANSFER OF THIS CERTIFICATE OR ANY INTEREST THEREIN SHALL BE MADE TO ANY EMPLOYEE BENEFIT
PLAN OR OTHER PLAN OR ARRANGEMENT SUBJECT TO THE PROHIBITED TRANSACTION PROVISIONS OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE CODE, OR ANY
PERSON (INCLUDING AN INSURANCE COMPANY INVESTING ITS GENERAL ACCOUNT, AN INVESTMENT MANAGER, A
NAMED FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN) WHO IS USING “PLAN ASSETS” OF ANY SUCH PLAN TO
EFFECT SUCH ACQUISITION (EACH OF THE FOREGOING, A “PLAN INVESTOR”) UNLESS THE TRUSTEE, THE
DEPOSITOR AND THE MASTER SERVICER ARE PROVIDED WITH EITHER (I) A CERTIFICATION PURSUANT TO SECTION
5.02(e)(i)(B) OF THE AGREEMENT OR (II) AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND
SUBSTANCE SATISFACTORY TO THE TRUSTEE, THE DEPOSITOR AND THE MASTER SERVICER TO THE EFFECT THAT THE
PURCHASE OR HOLDING OF THIS CERTIFICATE IS PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR
RESULT IN ANY NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
CODE (OR COMPARABLE PROVISIONS OF ANY SUBSEQUENT ENACTMENTS), AND WILL NOT SUBJECT THE TRUSTEE, THE
DEPOSITOR OR THE MASTER SERVICER TO ANY OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR
LIABILITIES UNDER ERISA OR SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE
AGREEMENT, WHICH OPINION OF COUNSEL
SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE DEPOSITOR OR THE MASTER SERVICER.

C-1

 

	 	 	 

	CUSIP:__________
	 	Certificate No. [_]
	 
	 	 
	Date of Pooling and Servicing

	 	Percentage Interest:  [__]%
	Agreement and Cut-off Date:
	 	 
	[_____________], 20[_]
	 	 
	 
	 	 
	First Distribution Date:
	 	Aggregate Certificate Principal Balance
	[_____________], 20[_]
	 	of the Class SB Certificates:  $______
	 
	Master Servicer:
	 	 
	[_________________]
	 	 
	Final Scheduled Distribution Date:
	 	Initial Certificate Principal
	[_____________], 20[_]
	 	Balance of this Certificate:  $_________

MORTGAGE-BACKED PASS-THROUGH CERTIFICATES

SERIES 20[_]-[ABC][_]

evidencing a percentage interest in the distributions allocable to
the Class SB Certificates with respect to a Trust Fund consisting
primarily of a pool of one- to four-family fixed and adjustable
interest rate, first lien mortgage loans sold by PHOENIX RESIDENTIAL
SECURITIES, LLC

     This Certificate is payable solely from the assets of the Trust Fund, and does not represent
an obligation of or interest in Phoenix Residential Securities, LLC, the Master Servicer, the
Trustee referred to below or any of their affiliates. Neither this Certificate nor the underlying
Mortgage Loans are guaranteed or insured by any governmental agency or instrumentality or by
Phoenix Residential Securities, LLC, the Master Servicer, the Trustee or any of their affiliates.
None of the Depositor, the Master Servicer or any of their affiliates will have any obligation with
respect to any certificate or other obligation secured by or payable from payments on the
Certificates.

     This certifies that [_____________] is the registered owner of the Percentage Interest
evidenced by this Certificate (obtained by dividing the Certificate Principal Balance of this
Certificate by the aggregate Certificate Principal Balance of all Class SB Certificates, both as
specified above) in certain distributions with respect to the Trust Fund consisting primarily of an
interest in a pool of one- to four-family fixed and adjustable interest rate, first lien mortgage
loans (the “Mortgage Loans”), sold by Phoenix Residential Securities, LLC (hereinafter called the
“Depositor,” which term includes any successor entity under the Agreement referred to below). The
Trust Fund was created pursuant to a Pooling and Servicing Agreement dated as specified above (the
“Agreement”) among the Depositor, the Master Servicer and [_____________], as trustee (the
“Trustee”), a summary of certain of the pertinent provisions of which is set forth hereafter. To
the extent not defined herein, the capitalized terms used herein have the meanings assigned in the
Agreement. This Certificate is issued under and is subject to

C-2

 

the terms, provisions and conditions of the Agreement, to which Agreement the Holder of this
Certificate by virtue of the acceptance hereof, assents and by which such Holder is bound.

     Pursuant to the terms of the Agreement, a distribution will be made on the 25th day of each
month or, if such 25th day is not a Business Day, the Business Day immediately following (the
“Distribution Date”), commencing as described in the Agreement, to the Person in whose name this
Certificate is registered at the close of business on the last day (or if such last day is not a
Business Day, the Business Day immediately preceding such last day) of the month immediately
preceding the month in which the related Distribution Date occurs (the “Record Date”), from the
Available Distribution Amount in an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount of interest and principal, if any, required to be
distributed to Holders of Class SB Certificates on such Distribution Date.

     Distributions on this Certificate will be made either by the Master Servicer acting on behalf
of the Trustee or by a Paying Agent appointed by the Trustee in immediately available funds (by
wire transfer or otherwise) for the account of the Person entitled thereto if such Person shall
have so notified the Master Servicer or such Paying Agent, or by check mailed to the address of the
Person entitled thereto, as such name and address shall appear on the Certificate Register.

     Notwithstanding the above, the final distribution on this Certificate will be made after due
notice of the pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee for that purpose in [_____________].

     The Notional Amount of this Class SB Certificate as of any date of determination will be
calculated as described in the Agreement. This Class SB Certificate will not accrue interest on
its Certificate Principal Balance.

     No transfer of this Class SB Certificate will be made unless such transfer is exempt from the
registration requirements of the Securities Act of 1933, as amended, and any applicable state
securities laws or is made in accordance with said Act and laws. In the event that such a transfer
is to be made, (i) the Trustee or the Depositor may require an opinion of counsel acceptable to and
in form and substance satisfactory to the Trustee and the Depositor that such transfer is exempt
(describing the applicable exemption and the basis therefor) from or is being made pursuant to the
registration requirements of the Securities Act of 1933, as amended, and of any applicable statute
of any state and (ii) the transferee shall execute an investment letter in the form described by
the Agreement. The Holder hereof desiring to effect such transfer shall, and does hereby agree to,
indemnify the Trustee, the Depositor, the Master Servicer and the Certificate Registrar acting on
behalf of the Trustee against any liability that may result if the transfer is not so exempt or is
not made in accordance with such Federal and state laws.

     No transfer of this Certificate or any interest therein shall be made to any employee benefit
plan or other plan or arrangement subject to the prohibited transaction provisions of ERISA or
Section 4975 of the Code, or any person (including an insurance company investing its general
account, an investment manager, a named fiduciary or a trustee of any such plan) who is using “plan
assets” of any such plan to effect such acquisition (each of the foregoing, a “Plan Investor”)
unless the Trustee, the Depositor and the Master Servicer are provided with either (i) a

C-3

 

certification pursuant to Section 5.02(e)(i)(B) of the Agreement or (ii) an Opinion of Counsel
acceptable to and in form and substance satisfactory to the Trustee, the Depositor and the Master
Servicer to the effect that the purchase or holding of this Certificate is permissible under
applicable law, will not constitute or result in any non-exempt prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code (or comparable provisions of any subsequent
enactments), and will not subject the Trustee, the Depositor or the Master Servicer to any
obligation or liability (including obligations or liabilities under ERISA or Section 4975 of the
Code) in addition to those undertaken in the Agreement, which Opinion of Counsel shall not be an
expense of the Trustee, the Depositor or the Master Servicer.

     This Certificate is one of a duly authorized issue of Certificates issued in several Classes
designated as Mortgage-Backed Pass-Through Certificates of the Series specified hereon (herein
collectively called the “Certificates”).

     The Certificates are limited in right of payment to certain collections and recoveries
respecting the Mortgage Loans, all as more specifically set forth herein and in the Agreement. In
the event Master Servicer funds are advanced with respect to any Mortgage Loan, such advance is
reimbursable to the Master Servicer, to the extent provided in the Agreement, from related
recoveries on such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

     As provided in the Agreement, withdrawals from the Custodial Account and/or the Certificate
Account created for the benefit of Certificateholders may be made by the Master Servicer from time
to time for purposes other than distributions to Certificateholders, such purposes including
without limitation reimbursement to the Depositor and the Master Servicer of advances made, or
certain expenses incurred, by either of them.

     The Agreement permits, with certain exceptions therein provided, the amendment of the
Agreement and the modification of the rights and obligations of the Depositor, the Master Servicer
and the Trustee and the rights of the Certificateholders under the Agreement from time to time by
the Depositor, the Master Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66% of the Percentage Interests of each Class of
Certificates affected thereby. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent is made upon the Certificate. The Agreement also permits the amendment
thereof in certain circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the. Holders of certain Classes of
Certificates.

     As provided in the Agreement and subject to certain limitations therein set forth, the
transfer of this Certificate is registrable in the Certificate Register upon surrender of this
Certificate for registration of transfer at the offices or agencies appointed by the Trustee in
[_____________], duly endorsed by, or accompanied by an assignment in the form below or other
written instrument of transfer in form satisfactory to the Trustee and the Certificate Registrar
duly executed by the Holder hereof or such Holder’s attorney duly authorized in writing, and
thereupon one or more new Certificates of authorized denominations evidencing the

C-4

 

same Class and aggregate Percentage Interest will be issued to the designated transferee or
transferees.

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

     No service charge will be made for any such registration of transfer or exchange, but the
Trustee may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     The Depositor, the Master Servicer, the Trustee, the Certificate Registrar and any agent of
the Depositor, the Master Servicer, the Trustee or the Certificate Registrar may treat the Person
in whose name this Certificate is registered as the owner hereof for all purposes, and neither the
Depositor, the Master Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

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

     The obligations created by the Agreement in respect of the Certificates and the Trust Fund
created thereby shall terminate upon the payment to Certificateholders of all amounts held by or on
behalf of the Trustee and required to be paid to them pursuant to the Agreement following the
earlier of (i) the maturity or other liquidation of the last Mortgage Loan subject thereto or the
disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any
Mortgage Loan, and (ii) the purchase by the Master Servicer or Holder of the Class SB Certificates,
as described in the Agreement, thereby effecting early retirement of the related Certificates. The
Agreement permits, but does not require, the purchase by the Master Servicer or Holder of the Class
SB Certificates, as described in the Agreement, (i) from the Trust Fund of all remaining Mortgage
Loans and all property acquired in respect of such Mortgage Loans, at a price determined as
provided in the Agreement, or (ii) in whole, but not in part, of all of the [Class A Certificates,
Class M Certificates] and Class SB Certificates from the Holders thereof; provided, that any such
options may only be exercised if the Stated Principal Balance of the Mortgage Loans (before giving
effect to the distributions to be made on such Distribution Date), as of the Distribution Date upon
which the proceeds of any such purchase are distributed is less than ten percent of the Cut-off
Date Principal Balance of the Mortgage Loans.

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

C-5

 

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

	 	 	 	 	 
	 	[________________________],

                  as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Dated: [_____________], 20[_]

CERTIFICATE OF AUTHENTICATION

     This is one of the Class SB Certificates referred to in the within-mentioned Agreement.

	 	 	 	 	 
	 	[________________________],

        as Certificate Registrar

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

C-6

 

	 	 	 	 	 

ASSIGNMENT

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

 

 

 

(Please print or typewrite name and address including postal zip code of assignee) a Percentage Interest evidenced by the within Mortgage-Backed Pass-Through Certificate
and hereby authorizes the transfer of registration of such interest to assignee on the Certificate
Register of the Trust Fund.

     I (We) further direct the Certificate Registrar to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate to the following
address:

 

	 	 	 

	Dated:                                        

	 	 
	 

	 	
Signature by or on behalf of assignor
	 
	 	 
	 
	 

	 	 
	 

	 	Signature Guaranteed

DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

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

 

for the account of _____________________________________________________________  account number or, if
mailed by check, to

     Applicable statements should be mailed to:

 

    

.

     This information is provided by ____________________________________________________, the assignee named above, or
__________________________, as its agent.

 

 

EXHIBIT D

FORM OF CLASS R-[__] CERTIFICATE

     THE CLASS R-[_] CERTIFICATE WILL NOT BE ENTITLED TO PAYMENTS CONSTITUTING THE AVAILABLE
DISTRIBUTION AMOUNT UNTIL SUCH TIME AS DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO
HEREIN (THE “AGREEMENT”).

     THIS CLASS R-[_] CERTIFICATE IS SUBORDINATE TO THE CLASS A, CLASS M AND CLASS SB CERTIFICATES,
TO THE EXTENT DESCRIBED HEREIN AND IN THE AGREEMENT.

     THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON OR A
DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

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

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

     NO TRANSFER OF THIS CERTIFICATE OR ANY INTEREST THEREIN SHALL BE MADE TO ANY EMPLOYEE BENEFIT
PLAN OR OTHER PLAN OR ARRANGEMENT SUBJECT TO THE PROHIBITED TRANSACTION PROVISIONS OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE CODE, OR ANY
PERSON (INCLUDING AN INSURANCE COMPANY INVESTING ITS GENERAL ACCOUNT, AN INVESTMENT MANAGER, A
NAMED FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN) WHO IS USING “PLAN ASSETS” OF ANY SUCH PLAN TO
EFFECT SUCH ACQUISITION (EACH OF THE FOREGOING, A “PLAN INVESTOR”) UNLESS THE TRUSTEE, THE
DEPOSITOR AND THE MASTER SERVICER ARE PROVIDED WITH EITHER (I) A CERTIFICATION PURSUANT TO SECTION
5.02(e)(i)(B) OF THE AGREEMENT OR (II) AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND
SUBSTANCE SATISFACTORY TO THE TRUSTEE, THE DEPOSITOR AND THE MASTER SERVICER TO THE EFFECT THAT THE
PURCHASE OR HOLDING OF THIS CERTIFICATE IS PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR
RESULT IN ANY NON-EXEMPT PROHIBITED

D-1

 

TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE (OR COMPARABLE PROVISIONS
OF ANY SUBSEQUENT ENACTMENTS), AND WILL NOT SUBJECT THE TRUSTEE, THE DEPOSITOR OR THE MASTER
SERVICER TO ANY OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES UNDER ERISA OR
SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT, WHICH OPINION OF
COUNSEL SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE DEPOSITOR OR THE MASTER SERVICER.

     ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED
TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE MASTER SERVICER AND THE TRUSTEE THAT (1) SUCH
TRANSFEREE IS NOT (A) THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY POSSESSION
OF THE UNITED STATES, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING (OTHER THAN AN
INSTRUMENTALITY WHICH IS A CORPORATION IF ALL OF ITS ACTIVITIES ARE SUBJECT TO TAX AND EXCEPT FOR
FREDDIE MAC, A MAJORITY OF ITS BOARD OF DIRECTORS IS NOT SELECTED BY SUCH GOVERNMENTAL UNIT), (B) A
FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF EITHER OF
THE FOREGOING, (C) ANY ORGANIZATION (OTHER THAN CERTAIN FARMERS’ COOPERATIVES DESCRIBED IN SECTION
521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH
ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE (INCLUDING THE TAX IMPOSED BY
SECTION 511 OF THE CODE ON UNRELATED BUSINESS TAXABLE INCOME), (D) RURAL ELECTRIC AND TELEPHONE
COOPERATIVES DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE, (E) AN ELECTING LARGE PARTNERSHIP
UNDER SECTION 775(a) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), (C),
(D) OR (E) BEING HEREIN REFERRED TO AS A “DISQUALIFIED ORGANIZATION”), OR (F) AN AGENT OF A
DISQUALIFIED ORGANIZATION, (2) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT OR
COLLECTION OF TAX AND (3) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO THE
FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE
CERTIFICATE REGISTER OR ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A
DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE
DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A
CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE OF THIS
CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.

D-2

 

	 	 	 

	Class R-[_] [Subordinate]

	 	Certificate No. [_]
	 
	 	 
	Date of Pooling and Servicing 

Agreement
and Cut-off Date:

	 	Percentage Interest: [100]%
	[_________]1, 20[_]
	 	 
	 
	 	 
	First Distribution Date:

	 	Final Scheduled Distribution Date:
	[_________], 20[_]

	 	[_________], 20[_]
	 
	 	 
	Master Servicer:
	 	 
	[_________________]
	 	 

MORTGAGE-BACKED PASS-THROUGH CERTIFICATES

SERIES 20[_]-[ABC][_]

evidencing a percentage interest in the distributions allocable to
the Class R-[_] Certificates with respect to a Trust Fund consisting
primarily of a pool of one- to four-family fixed and adjustable
interest rate, first lien mortgage loans sold by PHOENIX RESIDENTIAL
SECURITIES, LLC

     This Certificate is payable solely from the assets of the Trust Fund and does not represent an
obligation of or interest in Phoenix Residential Securities, LLC, the Master Servicer, the Trustee
referred to below or [____________]or any of their affiliates. Neither this Certificate nor the
underlying Mortgage Loans are guaranteed or insured by any governmental agency or instrumentality
or by Phoenix Residential Securities, LLC, the Master Servicer, the Trustee or [____________] or
any of their affiliates. None of the Depositor, the Master Servicer or [____________] or any of
their affiliates will have any obligation with respect to any certificate or other obligation
secured by or payable from payments on the Certificates.

     This certifies that [____________] is the registered owner of the Percentage Interest
evidenced by this Certificate specified above in certain distributions with respect to the Trust
Fund consisting primarily of a pool of one- to four-family fixed and adjustable interest rate,
first lien mortgage loans (the “Mortgage Loans”), sold by Phoenix Residential Securities, LLC
(hereinafter called the “Depositor,” which term includes any successor entity under the Agreement
referred to below). The Trust Fund was created pursuant to a Pooling and Servicing Agreement dated
as specified above (the “Agreement) among the Depositor, the Master Servicer and [____________], as
trustee (the “Trustee”), a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to the terms, provisions
and conditions of the Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

D-3

 

     Pursuant to the terms of the Agreement, a distribution will be made on the 25th day of each
month or, if such 25th day is not a Business Day, the Business Day immediately following (the
“Distribution Date”), commencing as described in the Agreement, to the Person in whose name this
Certificate is registered at the close of business on the last day (or if such last day is not a
Business Day, the Business Day immediately preceding such last day) of the month immediately
preceding the month of such distribution (the “Record Date”), from the Available Distribution
Amount in an amount equal to the product of the Percentage Interest evidenced by this Certificate
and the amount of interest and principal, if any, required to be distributed to Holders of Class
R-[_] Certificates on such Distribution Date.

     Each Holder of this Certificate will be deemed to have agreed to be bound by the restrictions
set forth in the Agreement to the effect that (i) each person holding or acquiring any Ownership
Interest in this Certificate must be a United States Person and a Permitted Transferee, (ii) the
transfer of any Ownership Interest in this Certificate will be conditioned upon the delivery to the
Trustee of, among other things, an affidavit to the effect that it is a United States Person and
Permitted Transferee, (iii) any attempted or purported transfer of any Ownership Interest in this
Certificate in violation of such restrictions will be absolutely null and void and will vest no
rights in the purported transferee, and (iv) if any person other than a United States Person and a
Permitted Transferee acquires any Ownership Interest in this Certificate in violation of such
restrictions, then the Master Servicer will have the right, in its sole discretion and without
notice to the Holder of this Certificate, to sell this Certificate to a purchaser selected by the
Master Servicer, which purchaser may be the Master Servicer, or any affiliate of the Master
Servicer, on such terms and conditions as the Master Servicer may choose.

     Notwithstanding the above, the final distribution on this Certificate will be made after due
notice of the pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee for that purpose in [____________].
The Holder of this Certificate may have additional obligations with respect to this Certificate,
including tax liabilities.

     No transfer of this Class R-[_] Certificate will be made unless such transfer is exempt from
the registration requirements of the Securities Act of 1933, as amended, and any applicable state
securities laws or is made in accordance with said Act and laws. In the event that such a transfer
is to be made, (i) the Trustee or the Depositor may require an opinion of counsel acceptable to and
in form and substance satisfactory to the Trustee and the Depositor that such transfer is exempt
(describing the applicable exemption and the basis therefor) from or is being made pursuant to the
registration requirements of the Securities Act of 1933, as amended, and of any applicable statute
of any state and (ii) the transferee shall execute an investment letter in the form described by
the Agreement. The Holder hereof desiring to effect such transfer shall, and does hereby agree to,
indemnify the Trustee, the Depositor, the Master Servicer and the Certificate Registrar acting on
behalf of the Trustee against any liability that may result if the transfer is not so exempt or is
not made in accordance with such Federal and state laws.

     No transfer of this Certificate or any interest therein shall be made to any employee benefit
plan or other plan or arrangement subject to the prohibited transaction provisions of ERISA or
Section 4975 of the Code, or any person (including an insurance company investing its general
account, an investment manager, a named fiduciary or a trustee of any such plan) who is

D-4

 

using “plan assets” of any such plan to effect such acquisition (each of the foregoing, a
“Plan Investor”) unless the Trustee, the Depositor and the Master Servicer are provided with either
(i) a certification pursuant to Section 5.02(e)(i)(B) of the Agreement or (ii) an Opinion of
Counsel acceptable to and in form and substance satisfactory to the Trustee, the Depositor and the
Master Servicer to the effect that the purchase or holding of this Certificate is permissible under
applicable law, will not constitute or result in any non-exempt prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code (or comparable provisions of any subsequent
enactments), and will not subject the Trustee, the Depositor or the Master Servicer to any
obligation or liability (including obligations or liabilities under ERISA or Section 4975 of the
Code) in addition to those undertaken in the Agreement, which Opinion of Counsel shall not be an
expense of the Trustee, the Depositor or the Master Servicer.

     This Certificate is one of a duly authorized issue of Certificates issued in several Classes
designated as Mortgage-Backed Pass-Through Certificates of the Series specified hereon (herein
collectively called the “Certificates”).

     The Certificates are limited in right of payment to certain collections and recoveries
respecting the Mortgage Loans, all as more specifically set forth herein and in the Agreement. In
the event Master Servicer funds are advanced with respect to any Mortgage Loan, such advance is
reimbursable to the Master Servicer, to the extent provided in the Agreement, from related
recoveries on such Mortgage Loan or from other cash that would have been distributable to
Certificateholders.

     As provided in the Agreement, withdrawals from the Custodial Account and/or the Certificate
Account created for the benefit of Certificateholders may be made by the Master Servicer from time
to time for purposes other than distributions to Certificateholders, such purposes including
without limitation reimbursement to the Depositor and the Master Servicer of advances made, or
certain expenses incurred, by either of them.

     The Agreement permits, with certain exceptions therein provided, the amendment of the
Agreement and the modification of the rights and obligations of the Depositor, the Master Servicer
and the Trustee and the rights of the Certificateholders under the Agreement from time to time by
the Depositor, the Master Servicer and the Trustee with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66% of the Percentage Interests of each Class of
Certificates affected thereby. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent is made upon the Certificate. The Agreement also permits the amendment
thereof in certain circumstances without the consent of the Holders of any of the Certificates and,
in certain additional circumstances, without the consent of the Holders of certain Classes of
Certificates.

     As provided in the Agreement and subject to certain limitations therein set forth, the
transfer of this Certificate is registrable in the Certificate Register upon surrender of this
Certificate for registration of transfer at the offices or agencies appointed by the Trustee in
[____________], duly endorsed by, or accompanied by an assignment in the form below or other
written instrument of transfer in form satisfactory to the Trustee and the Certificate Registrar

D-5

 

duly executed by the Holder hereof or such Holder’s attorney duly authorized in writing, and
thereupon one or more new Certificates of authorized denominations evidencing the same Class and
aggregate Percentage Interest will be issued to the designated transferee or transferees.

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

     No service charge will be made for any such registration of transfer or exchange, but the
Trustee may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     The Depositor, the Master Servicer, the Trustee, the Certificate Registrar and any agent of
the Depositor, the Master Servicer, the Trustee or the Certificate Registrar may treat the Person
in whose name this Certificate is registered as the owner hereof for all purposes, and neither the
Depositor, the Master Servicer, the Trustee nor any such agent shall be affected by notice to the
contrary.

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

     The obligations created by the Agreement in respect of the Certificates and the Trust Fund
created thereby shall terminate upon the payment to Certificateholders of all amounts held by or on
behalf of the Trustee and required to be paid to them pursuant to the Agreement.

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

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

	 	 	 	 	 
	 	[________________________],

           as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Dated: [__________], 20[_]

CERTIFICATE OF AUTHENTICATION

     This is one of the Class R-[_] Certificates referred to in the within-mentioned Agreement.

	 	 	 	 	 
	 	[________________________],

          as Certificate Registrar

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

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ASSIGNMENT

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

 

 

 

(Please print or typewrite name and address including postal zip code of
assignee) a Percentage Interest evidenced by the within Mortgage-Backed Pass-Through Certificate
and hereby authorizes the transfer of registration of such interest to assignee on the Certificate
Register of the Trust Fund.

     I (We) further direct the Certificate Registrar to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate to the following
address:

 

	 	 	 

	Dated:                                         

	 	 
	 

	 	 
	 

	 	Signature by or on behalf of assignor
	 
	 	 
	 
	 

	 	 
	 

	 	Signature Guaranteed

DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

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

 

for the account of _____________________________________________________________ account
number or, if mailed by check, to

     Applicable statements should be mailed to:

 

 

.

     This information is provided by _________________________, the assignee named above, or
__________________________, as its agent.

 

 

EXHIBIT E

FORM OF CUSTODIAL AGREEMENT

     THIS CUSTODIAL AGREEMENT (as amended and supplemented from time to time, the “Agreement”),
dated as of [___________] 1, 20[_], by and among [________________________]., as trustee (including
its successors under the Pooling Agreement defined below, the “Trustee”), PHOENIX RESIDENTIAL
SECURITIES, LLC, as company (together with any successor in interest, the “Company”),
[_________________], as master servicer (together with any successor in interest or successor under
the Pooling Agreement referred to below, the “Master Servicer”) and [________________________], as
custodian (together with any successor in interest or any successor appointed hereunder, the
“Custodian”).

W I T N E S S E T H T H A T:

     WHEREAS, the Company, the Master Servicer, and the Trustee have entered into a Pooling and
Servicing Agreement, dated as of [___________] 1, 20[_], relating to the issuance of Phoenix
Residential Securities, LLC, Mortgage-Backed Pass-Through Certificates, Series 20[_]-[ABC][_] (as
in effect on the date of this Agreement, the “Original Pooling Agreement,” and as amended and
supplemented from time to time, the “Pooling Agreement”); and

     WHEREAS, the Custodian has agreed to act as agent for the Trustee for the purposes of
receiving and holding certain documents and other instruments delivered by the Company and the
Master Servicer under the Pooling Agreement, all upon the terms and conditions and subject to the
limitations hereinafter set forth;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
hereinafter set forth, the Trustee, the Company, the Master Servicer and the Custodian hereby agree
as follows:

ARTICLE I

Definitions

     Capitalized terms used in this Agreement and not defined herein shall have the meanings
assigned in the Original Pooling Agreement, unless otherwise required by the context herein.

ARTICLE II

Custody of Mortgage Documents

     Section 2.1 Custodian to Act as Agent: Acceptance of Custodial Files. The Custodian,
as the duly appointed agent of the Trustee for these purposes, acknowledges receipt of the
Custodial Files relating to the Mortgage Loans identified on the schedule attached hereto (the
“Custodial Files”) and declares that it holds and will hold the Custodial Files as agent for the
Trustee, in trust, for the use and benefit of all present and future Certificateholders.

 

 

     Section 2.2 Recordation of Assignments. If any Custodial File includes one or more
assignments of the related Mortgage Loans to the Trustee that have not been recorded, each such
assignment shall be delivered by the Custodian to the Company for the purpose of recording it in
the appropriate public office for real property records, and the Company, at no expense to the
Custodian, shall promptly cause to be recorded in the appropriate public office for real property
records each such assignment and, upon receipt thereof from such public office, shall return each
such assignment to the Custodian.

     Section 2.3 Review of Custodial Files.

          (a) On or prior to the Closing Date, the Custodian shall deliver to the Trustee an Initial
Certification in the form annexed hereto as Exhibit One evidencing receipt of a Custodial File for
each Mortgage Loan listed on the Schedule attached hereto (the “Mortgage Loan Schedule”). The
parties hereto acknowledge that certain documents referred to in Subsection 2.01(b)(i) of the
Pooling Agreement may be missing on or prior to the Closing Date and such missing documents shall
be listed as a Schedule to Exhibit One.

          (b) Within [45] days after the Closing Date, the Custodian agrees, for the benefit of
Certificateholders, to review in accordance with the provisions of Section 2.02 of the Pooling
Agreement each Custodial File and to deliver to the Trustee an Interim Certification in the form
annexed hereto as Exhibit Two to the effect that all documents required to be delivered pursuant to
Section 2.01 (b) of the Pooling Agreement have been executed and received and that such documents
relate to the Mortgage Loans identified on the Mortgage Loan Schedule, except for any exceptions
listed on Schedule A attached to such Interim Certification. For purposes of such review, the
Custodian shall compare the following information in each Custodial File to the corresponding
information in the Mortgage Loan Schedule: (i) the loan number, (ii) the borrower name and (iii)
the original principal balance. In the event that any Mortgage Note or Assignment of Mortgage has
been delivered to the Custodian by the Company in blank, the Custodian, upon the direction of the
Company, shall cause each such Mortgage Note to be endorsed to the Trustee and each such Assignment
of Mortgage to be completed in the name of the Trustee prior to the date on which such Interim
Certification is delivered to the Trustee. Within [45] days of receipt of the documents required
to be delivered pursuant to Section 2.01(c) of the Pooling Agreement, the Custodian agrees, for the
benefit of the Certificateholders, to review each such document, and upon the written request of
the Trustee to deliver to the Trustee and an updated Schedule A to the Interim Certification. The
Custodian shall be under no duty or obligation to inspect, review or examine said documents,
instruments, certificates or other papers to determine that the same are genuine, enforceable, or
appropriate for the represented purpose or that they have actually been recorded or that they are
other than what they purport to be on their face, or that the MIN is accurate. If in performing the
review required by this Section 2.3 the Custodian finds any document or documents constituting a
part of a Custodial File to be missing or defective in respect of the items reviewed as described
in this Section 2.3(b), the Custodian shall promptly so notify the Company, the Master Servicer and
the Trustee.

          (c) Upon receipt of all documents required to be in the Custodial Files the Custodian shall
deliver to the Trustee a Final Certification in the form annexed hereto as Exhibit Three evidencing
the completeness of the Custodial Files.

     Upon receipt of written request from the Trustee, the Company or the Master Servicer, the
Custodian shall as soon as practicable supply the Trustee with a list of all of the documents

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relating to the Mortgage Loans required to be delivered pursuant to Section 2.01 (b) of the
Pooling Agreement not then contained in the Custodial Files.

     Section 2.4 Notification of Breaches of Representations and Warranties. If the
Custodian discovers, in the course of performing its custodial functions, a breach of a
representation or warranty made by the Master Servicer or the Company as set forth in the Pooling
Agreement with respect to a Mortgage Loan relating to a Custodial File, the Custodian shall give
prompt written notice to the Company, the Master Servicer and the Trustee.

     Section 2.5 Custodian to Cooperate: Release of Custodial Files. Upon the repurchase
or substitution of any Mortgage Loan pursuant to Article II of the Pooling Agreement or payment in
full of any Mortgage Loan, or the receipt by the Master Servicer of a notification that payment in
full will be escrowed in a manner customary for such purposes, the Master Servicer shall
immediately notify the Custodian by delivering to the Custodian a Request for Release (in the form
of Exhibit Four attached hereto or a mutually acceptable electronic form) and shall request
delivery to it of the Custodial File. The Custodian agrees, upon receipt of such Request for
Release, promptly to release to the Master Servicer the related Custodial File.

     Upon receipt of a Request for Release from the Master Servicer, signed by a Servicing Officer,
that (i) the Master Servicer or a Subservicer, as the case may be, has made a deposit into the
Certificate Account in payment for the purchase of the related Mortgage Loan in an amount equal to
the Purchase Price for such Mortgage Loan or (ii) the Company has chosen to substitute a Qualified
Substitute Mortgage Loan for such Mortgage Loan, the Custodian shall release to the Master Servicer
the related Custodial File.

     Upon written notification of a substitution, the Master Servicer shall deliver to the
Custodian and the Custodian agrees to accept the Mortgage Note and other documents constituting the
Custodial File with respect to any Qualified Substitute Mortgage Loan, upon receiving written
notification from the Master Servicer of such substitution.

     From time to time as is appropriate for the servicing or foreclosures of any Mortgage Loan,
including, for this purpose, collection under any Primary Insurance Policy or any Mortgage Pool
Insurance Policy, the Master Servicer shall deliver to the Custodian a Request for Release
certifying as to the reason for such release. Upon receipt of the foregoing, the Custodian shall
deliver the Custodial File or such document to the Master Servicer. The Master Servicer shall cause
each Custodial File or any document therein so released to be returned to the Custodian when the
need therefor by the Master Servicer no longer exists, unless (i) the Mortgage Loan has been
liquidated and the Liquidation Proceeds relating to the Mortgage Loan have been deposited in the
Custodial Account or (ii) the Custodial 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, and the Master Servicer has delivered to the Custodian an updated
Request for Release signed by a Servicing Officer certifying as to the name and address of the
Person to which such Custodial File or such document was delivered and the purpose or purposes of
such delivery. Immediately upon receipt of any Custodial File returned to the Custodian by the
Master Servicer, the Custodian shall deliver a signed acknowledgement to the Master Servicer,
confirming receipt of such Custodial File.

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     Upon the written request of the Master Servicer, the Custodian will send to the Master
Servicer copies of any documents contained in the Custodial File.

     Section 2.6 Assumption Agreements. In the event that any assumption agreement or
substitution of liability agreement is entered into with respect to any Mortgage Loan subject to
this Agreement in accordance with the terms and provisions of the Pooling Agreement, the Master
Servicer shall notify the Custodian that such assumption or substitution agreement has been
completed by forwarding to the Custodian the original of such assumption or substitution agreement,
which shall be added to the related Custodial File and, for all purposes, shall be considered a
part of such Custodial File to the same extent as all other documents and instruments constituting
parts thereof.

ARTICLE III

Concerning the Custodian

     Section 3.1 Custodian a Bailee and Agent of the Trustee. With respect to each Mortgage
Note, Mortgage and other documents constituting each Custodial File which are delivered to the
Custodian, the Custodian is exclusively the bailee and agent of the Trustee and has no instructions
to hold any Mortgage Note or Mortgage for the benefit of any person other than the Trustee and the
Certificateholders and undertakes to perform such duties and only such duties as are specifically
set forth in this Agreement. Except upon compliance with the provisions of Section 2.5 of this
Agreement, no Mortgage Note, Mortgage or other document constituting a part of a Custodial File
shall be delivered by the Custodian to the Company or the Master Servicer or otherwise released
from the possession of the Custodian.

     The Master Servicer shall promptly notify the Custodian in writing if it shall no longer be a
member of MERS, or if it otherwise shall no longer be capable of registering and recording Mortgage
Loans using MERS. In addition, the Master Servicer shall (i) promptly notify the Custodian in
writing when a MERS Mortgage Loan is no longer registered with and recorded under MERS and (ii)
concurrently with any such deregistration of a MERS Mortgage Loan, prepare, execute and record an
original assignment from MERS to the Trustee and deliver such assignment to the Custodian.

     Section 3.2 Indemnification. The Company hereby agrees to indemnify and hold the
Custodian harmless from and against all claims, liabilities, losses, actions, suits or proceedings
at law or in equity, or any other expenses, fees or charges of any character or nature, which the
Custodian may incur or with which the Custodian may be threatened by reason of its acting as
custodian under this Agreement, including indemnification of the Custodian against any and all
expenses, including attorney’s fees if counsel for the Custodian has been approved by the Company,
and the cost of defending any action, suit or proceedings or resisting any claim. Notwithstanding
the foregoing, it is specifically understood and agreed that in the event any such claim,
liability, loss, action, suit or proceeding or other expense, fee or charge shall have been caused
by reason of any negligent act, negligent failure to act or willful misconduct on the part of the
Custodian, or which shall constitute a willful breach of its duties hereunder, the indemnification
provisions of this Agreement shall not apply.

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     Section 3.3 Custodian May Own Certificates. The Custodian in its individual or any
other capacity may become the owner or pledgee of Certificates with the same rights it would have
if it were not Custodian.

     Section 3.4 Master Servicer to Pay Custodian’s Fees and Expenses. The Master Servicer
covenants and agrees to pay to the Custodian from time to time, and the Custodian shall be entitled
to, reasonable compensation for all services rendered by it in the exercise and performance of any
of the powers and duties hereunder of the Custodian, and the Master Servicer will pay or reimburse
the Custodian upon its request for all reasonable expenses, disbursements and advances incurred or
made by the Custodian in accordance with any of the provisions of this Agreement (including the
reasonable compensation and the expenses and disbursements of its counsel and of all persons not
regularly in its employ), except any such expense, disbursement or advance as may arise from its
negligence or bad faith.

     Section 3.5 Custodian May Resign; Trustee May Remove Custodian. The Custodian may
resign from the obligations and duties hereby imposed upon it as such obligations and duties relate
to its acting as Custodian of the Mortgage Loans. Upon receiving such notice of resignation, the
Trustee shall either take custody of the Custodial Files itself and give prompt notice thereof to
the Company, the Master Servicer and the Custodian, or promptly appoint a successor Custodian by
written instrument, in duplicate, one copy of which instrument shall be delivered to the resigning
Custodian and one copy to the successor Custodian. If the Trustee shall not have taken custody of
the Custodial Files and no successor Custodian shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the resigning Custodian
may petition any court of competent jurisdiction for the appointment of a successor Custodian.

     The Trustee may remove the Custodian at any time. In such event, the Trustee shall appoint, or
petition a court of competent jurisdiction to appoint, a successor Custodian hereunder. Any
successor Custodian shall be a depository institution subject to supervision or examination by
federal or state authority and shall be able to satisfy the other requirements contained in Section
3.7 and shall be unaffiliated with the Master Servicer or the Company.

     Any resignation or removal of the Custodian and appointment of a successor Custodian pursuant
to any of the provisions of this Section 3.5 shall become effective upon acceptance of appointment
by the successor Custodian. The Trustee shall give prompt notice to the Company and the Master
Servicer of the appointment of any successor Custodian. No successor Custodian shall be appointed
by the Trustee without the prior approval of the Company and the Master Servicer.

     Section 3.6 Merger or Consolidation of Custodian. Any Person into which the Custodian
may be merged or converted or with which it may be consolidated, or any Person resulting from any
merger, conversion or consolidation to which the Custodian shall be a party, or any Person
succeeding to the business of the Custodian, shall be the successor of the Custodian hereunder,
without the execution or filing of any paper or any further act on the part of any of the parties
hereto, anything herein to the contrary notwithstanding.

     Section 3.7 Representations of the Custodian. The Custodian hereby represents that it
is a depository institution subject to supervision or examination by a federal or state authority,

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has a combined capital and surplus of at least $15,000,000 and is qualified to do business in
the jurisdictions in which it will hold any Custodial File.

ARTICLE IV

Compliance with Regulation AB

     Section 4.1 Intent of the Parties; Reasonableness. The parties hereto acknowledge and
agree that the purpose of this Article IV is to facilitate compliance by the Company with the
provisions of Regulation AB and related rules and regulations of the Commission. The Company shall
not 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 under the Securities Act and the
Exchange Act. Each of the parties hereto acknowledges that interpretations of the requirements of
Regulation AB may change over time, whether due to interpretive guidance provided by the Commission
or its staff, consensus among participants in the mortgage-backed securities markets, advice of
counsel, or otherwise, and agrees to comply with requests made by the Company in good faith for
delivery of information under these provisions on the basis of evolving interpretations of
Regulation AB. The Custodian shall cooperate reasonably with the Company to deliver to the Company
(including any of its assignees or designees), any and all disclosure, statements, reports,
certifications, records and any other information necessary in the reasonable, good faith
determination of the Company to permit the Company to comply with the provisions of Regulation AB.

     Section 4.2 Additional Representations and Warranties of the Custodian.

     (a) The Custodian hereby represents and warrants that the information set forth under the
caption “Pooling and Servicing Agreement — Custodial Arrangements” (the “Custodian Disclosure”) in
(i) the preliminary prospectus supplement dated [____________] relating to the Certificates and
(ii) the prospectus supplement dated [_____________] relating to the Certificates do not contain
any untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

     (b) The Custodian shall be deemed to represent to the Company as of the date hereof and on
each date on which information is provided to the Company under Section 4.3 that, except as
disclosed in writing to the Company prior to such date: (i) there are no aspects of its financial
condition that could have a material adverse effect on the performance by it of its Custodian
obligations under this Agreement or any other Securitization Transaction as to which it is the
custodian; (ii) there are no material legal or governmental proceedings pending (or known to be
contemplated) against it; and (iii) there are no affiliations, relationships or transactions
relating to the Custodian with respect to the Company or any sponsor, issuing entity, servicer,
trustee, originator, significant obligor, enhancement or support provider or other material
transaction party (as such terms are used in Regulation AB) relating to the Securitization
Transaction contemplated by the Agreement, as identified by the Company to the Custodian in writing
as of the Closing Date (each, a “Transaction Party”).

     (c) If so requested by the Company on any date following the Closing Date, the Custodian
shall, within five Business Days following such request, confirm in writing the

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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 confirmation,
provide reasonably adequate disclosure of the pertinent facts, in writing, to the requesting party.
Any such request from the Company shall not be given more than once each calendar quarter, unless
the Company shall have a reasonable basis for a determination that any of the representations and
warranties may not be accurate.

     Section 4.3 Additional Information to Be Provided by the Custodian. For so long as the
Certificates are outstanding, for the purpose of satisfying the Company’s reporting obligation
under the Exchange Act with respect to any class of Certificates, the Custodian shall (a) notify
the Company in writing of any material litigation or governmental proceedings pending against the
Custodian that would be material to Certificateholders, and (b) provide to the Company a written
description of such proceedings. Any notices and descriptions required under this Section 4.3
shall be given no later than five Business Days prior to the Determination Date following the month
in which the Custodian has knowledge of the occurrence of the relevant event. As of the date the
Company or Master Servicer files each Report on Form 10-D or Form 10-K with respect to the
Certificates, the Custodian will be deemed to represent that any information previously provided
under this Section 4.3, if any, is materially correct and does not have any material omissions
unless the Custodian has provided an update to such information. For purposes of this Section 4.3,
the term “Determination Date” shall mean, with respect to any Distribution Date, the second
Business Day prior to each Distribution Date, and the term “Distribution Date” shall mean the 25th
day of any month beginning in the month immediately following the month of the initial issuance of
the Certificates or, if such 25th day is not a Business Day, the Business Day immediately following
such 25th day.

     Section 4.4 Report on Assessment of Compliance and Attestation. On or before March 15
of each calendar year, the Custodian shall:

     (a) deliver to the Company a report (in form and substance reasonably satisfactory to the
Company) regarding the Custodian’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 Company and signed by an
authorized officer of the Custodian, and shall address each of the Servicing Criteria specified on
a certification substantially in the form of Exhibit Five hereto; and

     (b) deliver to the Company a report of a registered public accounting firm reasonably
acceptable to the Company that attests to, and reports on, the assessment of compliance made by the
Custodian 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.

     Section 4.5 Indemnification; Remedies.

     (a) The Custodian shall indemnify the Company, each affiliate of the Company, the Master
Servicer and each broker dealer acting as underwriter, placement agent or initial purchaser of the
Certificates or 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, employees and agents of each of the foregoing, and shall

E-7

 

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 the
Custodian Disclosure and any information, report, certification, accountants’ attestation or other
material provided under this Article IV by or on behalf of the Custodian (collectively, the
“Custodian Information”), or (B) the omission or alleged omission to state in the Custodian
Information a material fact required to be stated in the Custodian Information or necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading; or

          (ii) any failure by the Custodian to deliver any information, report, certification,
accountants’ attestation or other material when and as required under this Article IV.

     (b) In the case of any failure of performance described in clause (ii) of Section 4.5(a), the
Custodian shall promptly reimburse the Company for all costs reasonably incurred by the Company in
order to obtain the information, report, certification, accountants’ letter or other material not
delivered as required by the Custodian.

ARTICLE V

Miscellaneous Provisions

     Section 5.1 Notices. All notices, requests, consents and demands and other
communications required under this Agreement or pursuant to any other instrument or document
delivered hereunder shall be in writing and, unless otherwise specifically provided, may be
delivered personally, by telegram or telex, or by registered or certified mail, postage prepaid,
return receipt requested, at the addresses specified on the signature page hereof (unless changed
by the particular party whose address is stated herein by similar notice in writing).

     Section 5.2 Amendments. No modification or amendment of or supplement to this
Agreement shall be valid or effective unless the same is in writing and signed by all parties
hereto, and neither the Company, the Master Servicer nor the Trustee shall enter into any amendment
hereof except as permitted by the Pooling Agreement. The Trustee shall give prompt notice to the
Custodian of any amendment or supplement to the Pooling Agreement and furnish the Custodian with
written copies thereof.

     Section 5.3 GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED A CONTRACT MADE UNDER THE
LAWS OF THE STATE OF NEW YORK AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICT OF LAW PRINCIPLES THEREOF,
OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

     Section 5.4 Recordation of Agreement. To the extent permitted by applicable law, this
Agreement is subject to recordation in all appropriate public offices for real property records in
all the counties or other comparable jurisdictions in which any or all of the properties subject to
the Mortgages are situated, and in any other appropriate public recording office or elsewhere,

E-8

 

such recordation to be effected by the Master Servicer and at its expense on direction by the
Trustee (pursuant to the request of holders of Certificates evidencing undivided interests in the
aggregate of not less than 25% of the Trust Fund), but only upon direction accompanied by an
Opinion of Counsel reasonably satisfactory to the Master Servicer to the effect that the failure to
effect such recordation is likely to materially and adversely affect the interests of the
Certificateholders.

     For the purpose of facilitating the recordation of this Agreement as herein provided and for
other purposes, this Agreement may be executed simultaneously in any number of counterparts, each
of which counterparts shall be deemed to be an original, and such counterparts shall constitute but
one and the same instrument.

     Section 5.5 Severability of Provisions. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid,
then such covenants, agreements, provisions or terms shall be deemed severable from the remaining
covenants, agreements, provisions or terms of this Agreement and shall in no way affect the
validity or enforceability of the other provisions of this Agreement or of the Certificates or the
rights of the holders thereof.

[Signature Page Follows]

E-9

 

     IN WITNESS WHEREOF, this Agreement is executed as of the date first above written.

	 	 	 
	Address:

	 	[________________]
	 

	 	as Trustee
	 
	 	 
	[________________]
	 	 
	[________________]
	 	 
	Attention: Phoenix Residential Securities,

	 	By:
 
	LLC,

	 	       Name:

	                     Series 20[_]-[ABC][_]

	 	       Title: 

	 
	 	 
	Address:

	 	PHOENIX RESIDENTIAL SECURITIES,
	 

	 	LLC
	1100 Virginia Drive
	 	 
	Fort Washington, Pennsylvania 19034
	 	 
	 
	 	 
	 

	 	By:
 
	 

	 	       Name:

	 

	 	       Title: 

	 
	 	 
	Address:

	 	[_________________], as Master Servicer.
	[________________]
	 	 
	[________________]
	 	 
	[________________]
	 	 
	 

	 	By:
 
	 

	 	       Name:

	 

	 	       Title: 

	 
	 	 
	Address:

	 	[CUSTODIAN]
	[________________]
	 	 
	[________________]
	 	 
	[________________]
	 	 
	 

	 	By:
 
	 

	 	       Name:

	 

	 	       Title: 

E-10

 

	 	 	 	 	 

	STATE OF NEW YORK

	 	)	 
	 

	 	)ss.:

	COUNTY OF NEW YORK

	 	)	 

     On the _____ day of _______________, 20[_], before me, a notary public in and for said State,
personally appeared _____________, known to me to be a ___________ of [________________], a
[__________] banking corporation that executed the within instrument, and also known to me to be
the person who executed it on behalf of said banking corporation and acknowledged to me that such
banking corporation executed the within instrument.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year
in this certificate first above written.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Notary Public 	 
	 	 	 
	 

[SEAL]

E-11

 

STATE OF PENNSYLVANIA )

                                         )ss.:

COUNTY OF _____________, )

     On the _____ day of _______________, 20[_], before me, a notary public in and for said State,
personally appeared ___________________, known to me to be a _________________ of Phoenix
Residential Securities, LLC, one of the corporations that executed the within instrument, and also
known to me to be the person who executed it on behalf of said corporation, and acknowledged to me
that such corporation executed the within instrument.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year
in this certificate first above written.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Notary Public 	 
	 	 	 
	 

[Notorial Seal]

E-12

 

STATE OF ________________, )

                   
                                         ) ss.:

COUNTY OF _______________, )

     On the _____ day of _______________, 20[_], before me, a notary public in and for said State,
personally appeared ___________________, known to me to be a _________________ of
[_________________], one of the corporations that executed the within instrument, and also known to
me to be the person who executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year
in this certificate first above written.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Notary Public 	 
	 	 	 
	 

[Notorial Seal]

E-13

 

STATE OF ________________, )

                   
                                         )ss.:

COUNTY OF _______________, )

     On the _____ day of _______________, 20[_], before me, a notary public in and for said State,
personally appeared ___________________, known to me to be a _________________ of
[________________], one of the corporations that executed the within instrument, and also known to
me to be the person who executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year
in this certificate first above written.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Notary Public 	 
	 	 	 

E-14

 

	 	 	 	 	 

ANNEX I TO EXHIBIT E

FORM OF CUSTODIAN

INITIAL CERTIFICATION

[__________], 20[_]

[________________]

[________________]

[________________]

	 	Re: 	 	Custodial Agreement, dated as of [__________], 20[_], by and among
[________________], Phoenix Residential Securities, LLC, [_________________] and
[________________], relating to Mortgage-Backed Pass-Through Certificates,
Series 20[_]-[ABC][_]

Ladies and Gentlemen:

          In accordance with Section 2.3 of the above-captioned Custodial Agreement, and subject to
Section 2.02 of the Pooling Agreement, the undersigned, as Custodian, hereby certifies that it has
received a Custodial File (which contains an original Mortgage Note or an original lost note
affidavit with a copy of the related Mortgage Note) to the extent required in Section 2.01(b) of
the Pooling Agreement with respect to each Mortgage Loan listed in the Mortgage Loan Schedule, with
any exceptions listed on Schedule A attached hereto.

          Capitalized words and phrases used herein shall have the respective meanings assigned to them
in the above-captioned Custodial Agreement.

	 	 	 	 	 
	 	[________________]

 	 
	 	By:  	 	 
	 	 	Name: 	 	 
	 	 	Title: 	 	 

E-15

 

	 	 	 	 	 

ANNEX II TO EXHIBIT E

FORM OF CUSTODIAN INTERIM CERTIFICATION

____________ __, 20__

[__________________]

[__________________]

[__________________]

	 	Re: 	 	Custodial Agreement, dated as of [___________] 1,
20[_], by and among [__________________], Phoenix Residential
Securities, LLC, [_________________] and [__________________], relating
to Mortgage-Backed Pass-
Through Certificates, Series 20[_]-[ABC][_]

Ladies and Gentlemen:

          In accordance with Section 2.3 of the above-captioned Custodial Agreement, the undersigned, as
Custodian, hereby certifies that it has received a Custodial File to the extent required pursuant
to Section 2.01(b) of the Pooling Agreement with respect to each Mortgage Loan listed in the
Mortgage Loan Schedule, and it has reviewed the Custodial File and the Mortgage Loan Schedule and
has determined that: all required documents have been executed and received and that such documents
relate to the Mortgage Loans identified on the Mortgage Loan Schedule, with any exceptions listed
on Schedule A attached hereto.

          Capitalized words and phrases used herein shall have the respective meanings assigned to them
in the above-captioned Custodial Agreement.

	 	 	 	 	 
	 	[__________________]

 	 
	 	By:  	 	 
	 	 	Name: 	 	 
	 	 	Title: 	 	 

E-16

 

	 	 	 	 	 

ANNEX III TO EXHIBIT E

FORM OF CUSTODIAN FINAL CERTIFICATION

____________ __, 20__

[__________________]

[__________________]

[__________________]

Attention: Phoenix Residential Securities, LLC, Series 20[_]-[ABC][_]

	 	Re: 	 	Custodial Agreement, dated as of [____________], 20[_],
by and among [__________________], Phoenix Residential Securities, LLC,
[_________________] and [__________________], relating to
Mortgage-Backed Pass-
Through Certificates, Series 20[_]-[ABC][_]

Ladies and Gentlemen:

          In accordance with Section 2.3 of the above-captioned Custodial Agreement, the undersigned, as
Custodian, hereby certifies that it has received a Custodial File with respect to each Mortgage
Loan listed in the Mortgage Loan Schedule and it has reviewed the Custodial File and the Mortgage
Loan Schedule and has determined that: all required documents referred to in Section 2.01(b) of the
Pooling Agreement have been executed and received and that such documents relate to the Mortgage
Loans identified on the Mortgage Loan Schedule.

          Capitalized words and phrases used herein shall have the respective meanings assigned to them
in the above-captioned Custodial Agreement.

	 	 	 	 	 
	 	[__________________]

 	 
	 	By:  	 	 
	 	 	Name: 	 	 
	 	 	Title: 	 	 
	 

E-17

 

ANNEX IV TO EXHIBIT E

FORM OF REQUEST FOR RELEASE

	 	 	 

	DATE:
	 	 
	TO:
	 	 
	RE: REQUEST FOR RELEASE OF DOCUMENTS

In connection with the administration of the pool of Mortgage Loans held by you for the referenced
pool, we request the release of the Mortgage Loan File described below.

Pooling and Servicing Agreement Dated:

Series#:

Account#:

Pool#:

Loan#:

MIN#:

Borrower Name(s):

Reason for Document Request: (circle one)      Mortgage Loan Prepaid in Full

                                                                            Mortgage Loan Repurchased

“We hereby certify that all amounts received or to be received in connection with such payments
which are required to be deposited have been or will be so deposited as provided in the Pooling and
Servicing Agreement.”

____________________

[_________________]

Authorized Signature

****************************************************************

TO CUSTODIAN/TRUSTEE: Please acknowledge this request, and check off documents being enclosed with
a copy of this form. You should retain this form for your files in accordance with the terms of the
Pooling and Servicing Agreement.

	 	 	 	 	 

	 

	 	Enclosed Documents:
	 	[ ] Promissory Note
	 

	 	 	 	[ ] Primary Insurance Policy
	 

	 	 	 	[ ] Mortgage or Deed of Trust
	 

	 	 	 	[ ] Assignment(s) of Mortgage or Deed of Trust
	 

	 	 	 	[ ] Title Insurance Policy
	 

	 	 	 	[ ] Other: ________________________

___________________________

Name

___________________________

Title

___________________________

Date

E-18

 

 

EXHIBIT F

MORTGAGE LOAN SCHEDULE

[ON FILE WITH TRUSTEE AND CUSTODIAN]

 

 

EXHIBIT G

FORMS OF REQUEST FOR RELEASE

	 	 	 

	DATE:
	 	 
	TO:
	 	 
	RE: REQUEST FOR RELEASE OF DOCUMENTS

In connection with the administration of the pool of Mortgage Loans held by you for the referenced
pool, we request the release of the Mortgage Loan File described below.

Pooling and Servicing Agreement Dated:

Series#:

Account#:

Pool#:

Loan#:

MIN#:

Borrower Name(s):

Reason for Document Request: (circle one)       Mortgage Loan Prepaid in Full

                                                                            Mortgage Loan Repurchased

“We hereby certify that all amounts received or to be received in connection with such payments
which are required to be deposited have been or will be so deposited as provided in the Pooling and
Servicing Agreement.”

____________________

[_________________]

Authorized Signature

****************************************************************

TO CUSTODIAN/TRUSTEE: Please acknowledge this request, and check off documents being enclosed with
a copy of this form. You should retain this form for your files in accordance with the terms of the
Pooling and Servicing Agreement.

	 	 	 	 	 

	 

	 	Enclosed Documents:
	 	[ ] Promissory Note
	 

	 	 	 	[ ] Primary Insurance Policy
	 

	 	 	 	[ ] Mortgage or Deed of Trust
	 

	 	 	 	[ ] Assignment(s) of Mortgage or Deed of Trust
	 

	 	 	 	[ ] Title Insurance Policy
	 

	 	 	 	[ ] Other: ________________________

___________________________

Name

___________________________

Title

___________________________

Date

G-2

 

 

EXHIBIT H-1

FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

	 	 	 	 

	STATE OF

	 	)	 
	 

	 	)	 ss.:
	COUNTY OF

	 	)	 

     [NAME OF OFFICER], being first duly sworn, deposes and says:

     1. That he is [Title of Officer] of [Name of Owner] (record or beneficial owner of the
Mortgage-Backed Pass-Through Certificates, Series 20[_]-[ABC][_], Class R-__ (the “Owner”)), a
[savings institution] [corporation] duly organized and existing under the laws of [the State of
________________] [the United States], on behalf of which he makes this affidavit and agreement.

     2. That the Owner (i) is not and will not be a “disqualified organization” or an electing
large partnership as of [date of transfer] within the meaning of Section 860E(e)(5) and 775,
respectively, of the Internal Revenue Code of 1986, as amended (the “Code”) or an electing large
partnership under Section 775(a) of the Code, (ii) will endeavor to remain other than a
disqualified organization for so long as it retains its ownership interest in the Class R-__
Certificates, and (iii) is acquiring the Class R-__ Certificates for its own account or for the
account of another Owner from which it has received an affidavit and agreement in substantially the
same form as this affidavit and agreement. (For this purpose, a “disqualified organization” means
an electing large partnership under Section 775 of the Code, the United States, any state or
political subdivision thereof, any agency or instrumentality of any of the foregoing (other than an
instrumentality all of the activities of which are subject to tax and, except for the Federal Home
Loan Mortgage Corporation, a majority of whose board of directors is not selected by any such
governmental entity) or any foreign government, international organization or any agency or
instrumentality of such foreign government or organization, any rural electric or telephone
cooperative, or any organization (other than certain farmers’ cooperatives) that is generally
exempt from federal income tax unless such organization is subject to the tax on unrelated business
taxable income).

     3. That the Owner is aware (i) of the tax that would be imposed on transfers of Class R-__
Certificates to disqualified organizations or an electing large partnership under the Code, that
applies to all transfers of Class R-__ Certificates after March 31, 1988; (ii) that such tax would
be on the transferor (or, with respect to transfers to electing large partnerships, on each such
partnership), or, if such transfer is through an agent (which person includes a broker, nominee or
middleman) for a disqualified organization, on the agent; (iii) that the person (other than with
respect to transfers to electing large partnerships) otherwise liable for the tax shall be relieved
of liability for the tax if the transferee furnishes to such person an affidavit that the
transferee is not a disqualified organization and, at the time of transfer, such person does not
have actual knowledge that the affidavit is false; and (iv) that the Class R-__ Certificates may be
“noneconomic residual interests” within the meaning of Treasury regulations promulgated
pursuant to the Code and that the transferor of a noneconomic residual interest will remain
liable

H-1-1

 

 

for any taxes due with respect to the income on such residual interest, unless no
significant purpose of the transfer was to impede the assessment or collection of tax.

     4. That the Owner is aware of the tax imposed on a “pass-through entity” holding Class R-__
Certificates if either the pass-through entity is an electing large partnership under Section 775
of the Code or if at any time during the taxable year of the pass-through entity a disqualified
organization is the record holder of an interest in such entity. (For this purpose, a “pass through
entity” includes a regulated investment company, a real estate investment trust or common trust
fund, a partnership, trust or estate, and certain cooperatives.)

     5. That the Owner is aware that the Trustee will not register the transfer of any Class R-__
Certificates unless the transferee, or the transferee’s agent, delivers to it an affidavit and
agreement, among other things, in substantially the same form as this affidavit and agreement. The
Owner expressly agrees that it will not consummate any such transfer if it knows or believes that
any of the representations contained in such affidavit and agreement are false.

     6. That the Owner has reviewed the restrictions set forth on the face of the Class R -__
Certificates and the provisions of Section 5.02(f) of the Pooling and Servicing Agreement under
which the Class R-__ Certificates were issued (in particular, clause (iii)(A) and (iii)(B) of
Section 5.02(f) which authorize the Trustee to deliver payments to a person other than the Owner
and negotiate a mandatory sale by the Trustee in the event the Owner holds such Certificates in
violation of Section 5.02(f)). The Owner expressly agrees to be bound by and to comply with such
restrictions and provisions.

     7. That the Owner consents to any additional restrictions or arrangements that shall be deemed
necessary upon advice of counsel to constitute a reasonable arrangement to ensure that the Class
R-__ Certificates will only be owned, directly or indirectly, by an Owner that is not a
disqualified organization.

     8. The Owner’s Taxpayer Identification Number is _________________.

     9. This affidavit and agreement relates only to the Class R-__ Certificates held by the Owner
and not to any other holder of the Class R-__ Certificates. The Owner understands that the
liabilities described herein relate only to the Class R-__ Certificates.

     10. That no purpose of the Owner relating to the transfer of any of the Class R-__
Certificates by the Owner is or will be to impede the assessment or collection of any tax; in
making this representation, the Owner warrants that the Owner is familiar with (i) Treasury
Regulation 1.860E-1(c) and recent amendments thereto, effective as of July 19, 2002, and (ii) the
preamble describing the adoption of the amendments to such regulation, which is attached hereto as
Annex I.

     11. That the Owner has no present knowledge or expectation that it will be unable to pay any
United States taxes owed by it so long as any of the Certificates remain outstanding. In this
regard, the Owner hereby represents to and for the benefit of the person from whom it acquired the
Class R-__ Certificate that the Owner intends to pay taxes associated with holding such Class R-__
Certificate as they become due, fully understanding that it may incur tax liabilities in excess of
any cash flows generated by the Class R-__ Certificate.

H-1-2

 

 

     12. That the Owner has no present knowledge or expectation that it will become insolvent or
subject to a bankruptcy proceeding for so long as any of the Class R-__ Certificates remain
outstanding.

     13. The Owner is either (i) a citizen or resident of the United States, (ii) a corporation,
partnership or other entity treated as a corporation or a partnership for U.S. federal income tax
purposes and created or organized in, or under the laws of, the United States, any state thereof or
the District of Columbia (other than a partnership that is not treated as a United States person
under any applicable Treasury regulations), (iii) an estate that is described in Section
7701(a)(30)(D) of the Code, or (iv) a trust that is described in Section 7701(a)(30)(E) of the
Code.

     14. The Owner hereby agrees that it will not cause income from the Class R-__ Certificates to
be attributable to a foreign permanent establishment or fixed base (within the meaning of an
applicable income tax treaty) of the Owner or another United States taxpayer.

     15. The Owner hereby certifies, represents and warrants to, and covenants with the Company,
the Trustee and the Master Servicer that the following statements in (a) or (b) are accurate:

          (a) The Owner is not an employee benefit or other plan subject to the prohibited transaction
provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or Section
4975 of the Code (a “Plan”), or any other person (including an investment manager, a named
fiduciary or a trustee of any Plan) acting, directly or indirectly, on behalf of or purchasing any
Certificate with “plan assets” of any Plan within the meaning of the Department of Labor (“DOL”)
regulation at 29 C.F.R. §2510.3-101; or

          (b) The Owner has provided the Trustee, the Company and the Master Servicer with an opinion of
counsel acceptable to and in form and substance satisfactory to the Trustee, the Company and the
Master Servicer to the effect that the purchase or holding of Certificates is permissible under
applicable law, will not constitute or result in any non-exempt prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code (or comparable provisions of any subsequent
enactments) and will not subject the Trustee, the Company, the Master Servicer or the Trust Fund to
any obligation or liability (including obligations or liabilities under ERISA or Section 4975 of
the Code) in addition to those undertaken in the Pooling and Servicing Agreement.

     In addition, the Owner hereby certifies, represents and warrants to, and covenants with, the
Depositor, the Trustee and the Master Servicer that the Owner will not transfer such Certificates
to any Plan Investor or person unless either such Plan Investor or person meets the requirements
set forth in either (a) or (b) above.

     Capitalized terms used but not defined herein shall have the meanings assigned in the Pooling
and Servicing Agreement.

H-1-3

 

 

     IN WITNESS WHEREOF, the Owner has caused this instrument to be executed on its behalf,
pursuant to the authority of its Board of Directors, by its [Title of Officer] and its corporate
seal to be hereunto attached, attested by its [Assistant] Secretary, this ____ day of
______________ 20___.

	 	 	 	 	 
	 	[NAME OF OWNER]

 	 
	 	By:  	 	 
	 	 	[Name of Officer] 	 
	 	 	[Title of Officer] 	 
	 

[Corporate Seal]

ATTEST:

	 	 	 	 
	 	 
	[Assistant] Secretary 	 
	 	 

          Personally appeared before me the above-named [Name of Officer], known or proved to me to be
the same person who executed the foregoing instrument and to be the [Title of Officer] of the
Owner, and acknowledged to me that he executed the same as his free act and deed and the free act
and deed of the Owner.

          Subscribed and sworn before me this      day of , 200___.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	NOTARY PUBLIC 	 
	 	 	 
	 
	 	COUNTY OF

STATE OF

My Commission expires the __ day of

___________, 20__

 	 
	 	 	 
	 	 	 
	 	 	 
	 

H-1-4

 

 

ANNEX I TO EXHIBIT H-1

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 9004]

RIN 1545-AW98

Real Estate Mortgage Investment Conduits

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

 

SUMMARY: This document contains final regulations relating to safe harbor transfers of noneconomic
residual interests in real estate mortgage investment conduits (REMICs). The final regulations
provide additional limitations on the circumstances under which transferors may claim safe harbor
treatment.

DATES: Effective Date: These regulations are effective July 19, 2002.

Applicability Date: For dates of applicability, see Sec. 1.860E-(1)(c)(10).

FOR FURTHER INFORMATION CONTACT: Courtney Shepardson at (202) 622-3940 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

     The collection of information in this final rule has been reviewed and, pending receipt and
evaluation of public comments, approved by the Office of Management and Budget (OMB) under 44
U.S.C. 3507 and assigned control number 1545-1675.

     The collection of information in this regulation is in Sec. 1.860E-1(c)(5)(ii). This
information is required to enable the IRS to verify that a taxpayer is complying with the
conditions of this regulation. The collection of information is mandatory and is required.
Otherwise, the taxpayer will not receive the benefit of safe harbor treatment as provided in the
regulation. The likely respondents are businesses and other for-profit institutions.

     Comments on the collection of information should be sent to the Office of Management and
Budget, Attn: Desk Officer for the Department of the Treasury, Office of Information and Regulatory
Affairs, Washington, DC, 20503, with copies to the Internal Revenue Service, Attn:

H-1-5

 

 

IRS Reports Clearance Officer, W:CAR:MP:FP:S, Washington, DC 20224. Comments on the collection
of information should be received by September 17, 2002. Comments are specifically requested
concerning:

Whether the collection of information is necessary for the proper performance of the
functions of the Internal Revenue Service, including whether the information will have
practical utility;

The accuracy of the estimated burden associated with the collection of information (see
below);

How the quality, utility, and clarity of the information to be collected may be
enhanced;

How the burden of complying with the collection of information may be minimized,
including through the application of automated collection techniques or other forms of
information technology; and

Estimates of capital or start-up costs and costs of operation, maintenance, and purchase
of service to provide information.

     An agency may not conduct or sponsor, and a person is not required to respond to, a collection
of information unless it displays a valid control number assigned by the Office of Management and
Budget.

     The estimated total annual reporting burden is 470 hours, based on an estimated number of
respondents of 470 and an estimated average annual burden hours per respondent of one hour.

     Books or records relating to a collection of information must be retained as long as their
contents may become material in the administration of any internal revenue law. Generally, tax
returns and tax return information are confidential, as required by 26 U.S.C. 6103.

Background

     This document contains final regulations regarding the proposed amendments to 26 CFR part 1
under section 860E of the Internal Revenue Code (Code). The regulations provide the circumstances
under which a transferor of a noneconomic REMIC residual interest meeting the investigation and
representation requirements may avail itself of the safe harbor by satisfying either the formula
test or the asset test.

     Final regulations governing REMICs, issued in 1992, contain rules governing the transfer of
noneconomic REMIC residual interests. In general, a transfer of a noneconomic residual interest is
disregarded for all tax purposes if a significant purpose of the transfer is to enable the
transferor to impede the assessment or collection of tax. A purpose to impede the assessment or
collection of tax (a wrongful purpose) exists if the transferor, at the time of the transfer,
either knew or should have known that the transferee would be unwilling or unable to pay taxes due
on its share of the REMIC’s taxable income. Under a safe harbor, the transferor of a REMIC
noneconomic residual interest is presumed not to have a wrongful purpose if two requirements are
satisfied: (1) the transferor conducts a reasonable investigation of the transferee’s financial
condition (the investigation requirement); and (2) the transferor secures a representation from the
transferee to the effect that the transferee understands the tax obligations associated with
holding a residual interest and intends to pay those taxes (the representation requirement).

H-1-6

 

 

     The IRS and Treasury have been concerned that some transferors of noneconomic residual
interests claim they satisfy the safe harbor even in situations where the economics of the transfer
clearly indicate the transferee is unwilling or unable to pay the tax associated with holding the
interest. For this reason, on February 7, 2000, the IRS published in the Federal Register (65 FR
5807) a notice of proposed rulemaking (REG-100276-97; REG-122450-98) designed to clarify the safe
harbor by adding the “formula test,” an economic test. The proposed regulation provides that the
safe harbor is unavailable unless the present value of the anticipated tax liabilities associated
with holding the residual interest does not exceed the sum of: (1) The present value of any
consideration given to the transferee to acquire the interest; (2) the present value of the
expected future distributions on the interest; and (3) the present value of the anticipated tax
savings associated with holding the interest as the REMIC generates losses.

     The notice of proposed rulemaking also contained rules for FASITs. Section 1.860H-6(g) of the
proposed regulations provides requirements for transfers of FASIT ownership interests and adopts a
safe harbor by reference to the safe harbor provisions of the REMIC regulations. In January 2001,
the IRS published Rev. Proc. 2001-12 (2001-3 I.R.B. 335) to set forth an alternative safe harbor
that taxpayers could use while the IRS and the Treasury considered comments on the proposed
regulations. Under the alternative safe harbor, if a transferor meets the investigation requirement
and the representation requirement but the transfer fails to meet the formula test, the transferor
may invoke the safe harbor if the transferee meets a two-prong test (the asset test). A transferee
generally meets the first prong of this test if, at the time of the transfer, and in each of the
two years preceding the year of transfer, the transferee’s gross assets exceed $100 million and its
net assets exceed $10 million. A transferee generally meets the second prong of this test if it is
a domestic, taxable corporation and agrees in writing not to transfer the interest to any person
other than another domestic, taxable corporation that also satisfies the requirements of the asset
test. A transferor cannot rely on the asset test if the transferor knows, or has reason to know,
that the transferee will not comply with its written agreement to limit the restrictions on
subsequent transfers of the residual interest.

     Rev. Proc. 2001-12 provides that the asset test fails to be satisfied in the case of a
transfer or assignment of a noneconomic residual interest to a foreign branch of an otherwise
eligible transferee. If such a transfer or assignment were permitted, a corporate taxpayer might
seek to claim that the provisions of an applicable income tax treaty would resource excess
inclusion income as foreign source income, and that, as a consequence, any U.S. tax liability
attributable to the excess inclusion income could be offset by foreign tax credits. Such a claim
would impede the assessment or collection of U.S. tax on excess inclusion income, contrary to the
congressional purpose of assuring that such income will be taxable in all events. See, e.g.,
sections 860E(a)(1), (b), (e) and 860G(b) of the Code.

     The Treasury and the IRS have learned that certain taxpayers transferring noneconomic residual
interests to foreign branches have attempted to rely on the formula test to obtain safe harbor
treatment in an effort to impede the assessment or collection of U.S. tax on excess inclusion
income. Accordingly, the final regulations provide that if a noneconomic residual interest is
transferred to a foreign permanent establishment or fixed base of a U.S. taxpayer, the transfer is
not eligible for safe harbor treatment under either the asset test or the formula test. The final
regulations also require a transferee to represent that it will not cause income from the
noneconomic residual interest to be attributable to a foreign permanent establishment or fixed
base.

H-1-7

 

 

     Section 1.860E-1(c)(8) provides computational rules that a taxpayer may use to qualify for
safe harbor status under the formula test. Section 1.860E-1(c)(8)(i) provides that the transferee
is presumed to pay tax at a rate equal to the highest rate of tax specified in section 11(b). Some
commentators were concerned that this presumed rate of taxation was too high because it does not
take into consideration taxpayers subject to the alternative minimum tax rate. In light of the
comments received, this provision has been amended in the final regulations to allow certain
transferees that compute their taxable income using the alternative minimum tax rate to use the
alternative minimum tax rate applicable to corporations.

     Additionally, Sec. 1.860E-1(c)(8)(iii) provides that the present values in the formula test
are to be computed using a discount rate equal to the applicable Federal short-term rate prescribed
by section 1274(d). This is a change from the proposed regulation and Rev. Proc. 2001-12. In those
publications the provision stated that ``present values are computed using a discount rate equal to
the applicable Federal rate prescribed in section 1274(d) compounded semiannually” and that “[a]
lower discount rate may be used if the transferee can demonstrate that it regularly borrows, in the
course of its trade or business, substantial funds at such lower rate from an unrelated third
party.” The IRS and the Treasury Department have learned that, based on this provision, certain
taxpayers have been attempting to use unrealistically low or zero interest rates to satisfy the
formula test, frustrating the intent of the test. Furthermore, the Treasury Department and the IRS
believe that a rule allowing for a rate other than a rate based on an objective index would add
unnecessary complexity to the safe harbor. As a result, the rule in the proposed regulations that
permits a transferee to use a lower discount rate, if the transferee can demonstrate that it
regularly borrows substantial funds at such lower rate, is not included in the final regulations;
and the Federal short-term rate has been substituted for the applicable Federal rate. To simplify
taxpayers’ computations, the final regulations allow use of any of the published short-term rates,
provided that the present values are computed with a corresponding period of compounding. With the
exception of the provisions relating to transfers to foreign branches, these changes generally have
the proposed applicability date of February 4, 2000, but taxpayers may choose to apply the interest
rate formula set forth in the proposed regulation and Rev. Proc. 2001-12 for transfers occurring
before August 19, 2002.

     It is anticipated that when final regulations are adopted with respect to FASITs, Sec.
1.860H-6(g) of the proposed regulations will be adopted in substantially its present form, with the
result that the final regulations contained in this document will also govern transfers of FASIT
ownership interests with substantially the same applicability date as is contained in this
document.

Effect on Other Documents

     Rev. Proc. 2001-12 (2001-3 I.R.B. 335) is obsolete for transfers of noneconomic residual
interests in REMICs occurring on or after August 19, 2002.

Special Analyses

     It is hereby certified that these regulations will not have a significant economic impact on a
substantial number of small entities. This certification is based on the fact that it is unlikely
that a substantial number of small entities will hold REMIC residual interests. Therefore, a
Regulatory Flexibility Analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is not
required. It has been determined that this Treasury decision is not a significant regulatory action

H-1-8

 

 

as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. It
also has been determined that sections 553(b) and 553(d) of the Administrative Procedure Act (5
U.S.C. chapter 5) do not apply to these regulations.

Drafting Information

     The principal author of these regulations is Courtney Shepardson. However, other personnel
from the IRS and Treasury Department participated in their development.

List of Subjects

26 CFR Part 1

     Income taxes, Reporting and record keeping requirements.

26 CFR Part 602

     Reporting and record keeping requirements.

     Adoption of Amendments to the Regulations

     Accordingly, 26 CFR parts 1 and 602 are amended as follows:

PART 1—INCOME TAXES

     Paragraph 1. The authority citation for part 1 continues to read in

part as follows:

     Authority: 26 U.S.C. 7805 * * *

H-1-9

 

 

EXHIBIT H-2

FORM OF TRANSFEROR CERTIFICATE

                    , 200__

[                                        ]

[                                        ]

[                                        ]

[                                        ]

[                                        ]

[                                        ]

Attention: [                                        ] Series 20[_]-[ABC][_]

			
		 	

			
		Re:	   Mortgage-Backed Pass-Through Certificates,

  Series 20[_]-[ABC][_], Class R-

Ladies and Gentlemen:

     This letter is delivered to you in connection with the transfer by ________________________
(the “Seller”) to ______________________ (the “Purchaser”) of $___________ Initial Certificate
Principal Balance of Mortgage-Backed Pass-Through Certificates, Series 20[_]-[ABC][_], Class R-__
(the “Certificates”), pursuant to Section 5.02 of the Pooling and Servicing Agreement (the “Pooling
and Servicing Agreement”), dated as of [________]1, 20[_] among Phoenix Residential Securities,
LLC, as seller (the “Company”), [_________________], as master servicer (the “Master Servicer”),
and [______________], as trustee (the “Trustee”). All terms used herein and not otherwise defined
shall have the meanings set forth in the Pooling and Servicing Agreement. The Seller hereby
certifies, represents and warrants to, and covenants with, the Company and the Trustee that:

     1. No purpose of the Seller relating to the transfer of the Certificate by the Seller to the
Purchaser is or will be to impede the assessment or collection of any tax.

     2. The Seller understands that the Purchaser has delivered to the Trustee and the Master
Servicer a transfer affidavit and agreement in the form attached to the Pooling and Servicing
Agreement as Exhibit H-1. The Seller does not know or believe that any representation contained
therein is false.

     3. The Seller has at the time of the transfer conducted a reasonable investigation of the
financial condition of the Purchaser as contemplated by Treasury Regulations Section
1.860E-1(c)(4)(i) and, as a result of that investigation, the Seller has determined that the
Purchaser has historically paid its debts as they become due and has found no significant evidence
to indicate that the Purchaser will not continue to pay its debts as they become due in the future.
The Seller understands that the transfer of a Class R-__ Certificate may not be respected for
United States income tax purposes (and the Seller may continue to be liable for

H-2-1

 

United States income taxes associated therewith) unless the Seller has conducted such an
investigation.

     4. The Seller has no actual knowledge that the proposed Transferee is not both a United States
Person and a Permitted Transferee.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	 	 
	 	(Seller) 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

H-2-2

 

EXHIBIT I

FORM OF INVESTOR REPRESENTATION LETTER

                            , 20_

Phoenix Residential Securities, LLC

1100 Virginia Drive

Fort Washington, Pennsylvania 19034

[                                        ]

[                                        ]

[                                        ]

[                                        ]

[                                        ]

[                                        ]

[                                        ]

Attention: [                                        ] Series 20[_]-[ABC][_]

			
		Re:	   Mortgage-Backed Pass-Through Certificates,

   Series 20[_]-[ABC][_], Class [B] [SB] [R-[
]]

Ladies and Gentlemen:

     __________________________ (the “Purchaser”) intends to purchase from (the “Seller”)
$___________ Initial Certificate Principal Balance of Mortgage-Backed Pass-Through Certificates,
Series 20[_]-[ABC][_], Class [B] [SB] [R-[ ]](the “Certificates”), issued pursuant to the Pooling
and Servicing Agreement (the “Pooling and Servicing Agreement”), dated as of [_________] 1, 20[_]
among Phoenix Residential Securities, LLC, as seller (the “Company”), [_________________], as
master servicer (the “Master Servicer”), and [__________________], as trustee (the “Trustee”). All
terms used herein and not otherwise defined shall have the meanings set forth in the Pooling and
Servicing Agreement. The Purchaser hereby certifies, represents and warrants to, and covenants
with, the Company, the Trustee and the Master Servicer that:

     1. The Purchaser understands that (a) the Certificates have not been and will not be
registered or qualified under the Securities Act of 1933, as amended (the “Act”) or any state
securities law, (b) the Company is not required to so register or qualify the Certificates, (c) the
Certificates may be resold only if registered and qualified pursuant to the provisions of the Act
or any state securities law, or if an exemption from such registration and qualification is
available, (d) the Pooling and Servicing Agreement contains restrictions regarding the transfer of
the Certificates and (e) the Certificates will bear a legend to the foregoing effect.

     2. The Purchaser is acquiring the Certificates for its own account for investment only and not
with a view to or for sale in connection with any distribution thereof in any manner that would
violate the Act or any applicable state securities laws.

I-1

 

     3. The Purchaser is (a) a substantial, sophisticated institutional investor having such
knowledge and experience in financial and business matters, and, in particular, in such matters
related to securities similar to the Certificates, such that it is capable of evaluating the merits
and risks of investment in the Certificates, (b) able to bear the economic risks of such an
investment and (c) an “accredited investor” within the meaning of Rule 501(a) promulgated pursuant
to the Act.

     4. The Purchaser has been furnished with, and has had an opportunity to review (a) [a copy of
the Private Placement Memorandum, dated ________________, 20__, relating to the Certificates (b)] a
copy of the Pooling and Servicing Agreement and [b] [c] such other information concerning the
Certificates, the Mortgage Loans and the Company as has been requested by the Purchaser from the
Company or the Seller and is relevant to the Purchaser’s decision to purchase the Certificates. The
Purchaser has had any questions arising from such review answered by the Company or the Seller to
the satisfaction of the Purchaser. [If the Purchaser did not purchase the Certificates from the
Seller in connection with the initial distribution of the Certificates and was provided with a copy
of the Private Placement Memorandum (the “Memorandum”) relating to the original sale (the “Original
Sale”) of the Certificates by the Company, the Purchaser acknowledges that such Memorandum was
provided to it by the Seller, that the Memorandum was prepared by the Company solely for use in
connection with the Original Sale and the Company did not participate in or facilitate in any way
the purchase of the Certificates by the Purchaser from the Seller, and the Purchaser agrees that it
will look solely to the Seller and not to the Company with respect to any damage, liability, claim
or expense arising out of, resulting from or in connection with (a) error or omission, or alleged
error or omission, contained in the Memorandum, or (b) any information, development or event
arising after the date of the Memorandum.]

     5. The Purchaser has not and will not nor has it authorized or will it authorize any person to
(a) offer, pledge, sell, dispose of or otherwise transfer any Certificate, any interest in any
Certificate or any other similar security to any person in any manner, (b) solicit any offer to buy
or to accept a pledge, disposition of other transfer of any Certificate, any interest in any
Certificate or any other similar security from any person in any manner, (c) otherwise approach or
negotiate with respect to any Certificate, any interest in any Certificate or any other similar
security with any person in any manner, (d) make any general solicitation by means of general
advertising or in any other manner or (e) take any other action, that (as to any of (a) through (e)
above) would constitute a distribution of any Certificate under the Act, that would render the
disposition of any Certificate a violation of Section 5 of the Act or any state securities law, or
that would require registration or qualification pursuant thereto. The Purchaser will not sell or
otherwise transfer any of the Certificates, except in compliance with the provisions of the Pooling
and Servicing Agreement.

     6. The Purchaser hereby certifies, represents and warrants to, and covenants with the
Depositor, the Trustee and the Master Servicer that the following statements in (a) or (b) are
correct:

          (a) The Purchaser is not an employee benefit or other plan subject to the prohibited
transaction provisions of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), or Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”) (a
“Plan”), or any other person (including an investment manager, a named fiduciary or a trustee of
any Plan) acting, directly or indirectly, on behalf of or purchasing any Certificate

I-2

 

with “plan assets” of any Plan within the meaning of the Department of Labor (“DOL”)
regulation at 29 C.F.R. §2510.3-101; or

          (b) The Purchaser has provided the Trustee, the Company and the Master Servicer with an
opinion of counsel acceptable to and in form and substance satisfactory to the Trustee, the Company
and the Master Servicer to the effect that the purchase or holding of Certificates is permissible
under applicable law, will not constitute or result in any non-exempt prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code (or comparable provisions of any subsequent
enactments) and will not subject the Trustee, the Company or the Master Servicer or the Trust Fund
to any obligation or liability (including obligations or liabilities under ERISA or Section 4975 of
the Code) in addition to those undertaken in the Pooling and Servicing Agreement.

     In addition, the Purchaser hereby certifies, represents and warrants to, and covenants with,
the Depositor, the Trustee and the Master Servicer that the Purchaser will not transfer such
Certificates to any Plan Investor or person unless either such Plan Investor or person meets the
requirements set forth in either (a) or (b) above.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	 	 
	 	(Purchaser) 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

I-3

 

	 	 	 	 	 

EXHIBIT J

FORM OF TRANSFEROR REPRESENTATION LETTER

                         , 20__

Phoenix Residential Securities, LLC

1100 Virginia Drive

Fort Washington, Pennsylvania 19034

[                                        ]

[                                        ]

[                                        ]

Attention: [                                        ] Series 20[_]-[ABC][_]

			
		 	

			
		Re:	    Mortgage-Backed Pass-Through Certificates,

  Series 20[_]-[ABC][_], Class [B] [SB] [R-[
]]

Ladies and Gentlemen:

     In connection with the sale by ____________ (the “Seller”) to _______________ (the
“Purchaser”) of $_______ Initial Certificate Principal Balance of Mortgage-Backed Pass-Through
Certificates, Series 20[_]-[ABC][_], Class SB (the “Certificates”), issued pursuant to the Pooling
and Servicing Agreement (the “Pooling and Servicing Agreement”), dated as of [___________] 1, 20[_]
among Phoenix Residential Securities, LLC, as seller (the “Company”), [_________________], as
master servicer, and [______________], as trustee (the “Trustee”). The Seller hereby certifies,
represents and warrants to, and covenants with, the Company and the Trustee that:

     Neither the Seller nor anyone acting on its behalf has (a) offered, pledged, sold, disposed of
or otherwise transferred any Certificate, any interest in any Certificate or any other similar
security to any person in any manner, (b) has solicited any offer to buy or to accept a pledge,
disposition or other transfer of any Certificate, any interest in any Certificate or any other
similar security from any person in any manner, (c) has otherwise approached or negotiated with
respect to any Certificate, any interest in any Certificate or any other similar security with any
person in any manner, (d) has made any general solicitation by means of general advertising or in
any other manner, or (e) has taken any other action, that (as to any of (a) through (e) above)
would constitute a distribution of the Certificates under the Securities Act of 1933 (the “Act”),
that would render the disposition of any Certificate a violation of Section 5 of the Act or any
state securities law, or that would require registration or qualification pursuant thereto. The
Seller will

J-1

 

not act, in any manner set forth in the foregoing sentence with respect to any Certificate. The
Seller has not and will not sell or otherwise transfer any of the Certificates, except in
compliance with the provisions of the Pooling and Servicing Agreement.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	
 	 
	 	(Seller) 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

J-2

 

	 	 	 	 	 

EXHIBIT K

FORM OF FORM 10-K CERTIFICATION

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

     1. I have reviewed the annual report on Form 10-K for the fiscal year [____], and all reports
on Form 8-K containing distribution or servicing reports filed in respect of periods included in
the year covered by that annual report, of the trust (the “Trust”) created pursuant to the Pooling
and Servicing Agreement dated as of [__________] 1, 20[_] (the “P&S Agreement”) among Phoenix
Residential Securities, LLC (the “Company”), [_________________] (the “Master Servicer”) and
[__________] (the “Trustee”);

     2. Based on my knowledge, the information in these reports, taken as a whole, does not contain
any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not
misleading as of the last day of the period covered by this annual report;

     3. Based on my knowledge, the servicing information required to be provided to the Trustee by
the Master Servicer under the P&S Agreement for inclusion in these reports is included in these
reports;

     4. I am responsible for reviewing the activities performed by the Master Servicer under the
P&S Agreement and based upon my knowledge and the annual compliance review required under the P&S
Agreement, and, except as disclosed in the reports, the Master Servicer has fulfilled its
obligations under the P&S Agreement; and

     5. The reports disclose all significant deficiencies relating to the Master Servicer’s
compliance with the minimum servicing standards based upon the report provided by an independent
public accountant, after conducting a review in compliance with the Uniform Single Attestation
Program for Mortgage Bankers as set forth in the P&S Agreement, that is included in these reports.

     In giving the certifications above, I have reasonably relied on the information provided to me
by the following unaffiliated parties: [the Trustee].

     IN WITNESS WHEREOF, I have duly executed this certificate as of _________, 20_.

	 	 	 	 	 
	 	 	 
	 		
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

* to be signed by the senior officer in charge of the servicing functions of the Master Servicer

K-1

 

EXHIBIT L

FORM OF BACK-UP CERTIFICATE TO FORM 10-K CERTIFICATION

     The undersigned, a Responsible Officer of [                                        ] (the “Trustee”) certifies that:

     1. The Trustee has performed all of the duties specifically required to be performed by it
pursuant to the provisions of the Pooling and Servicing Agreement dated as of [__________] 1, 20[_]
(the “Agreement”) by and among Phoenix Residential Securities, LLC as depositor,
[_________________], as master servicer, and the Trustee in accordance with the standards set forth
therein.

     2. Based on my knowledge, the list of Certificateholders as shown on the Certificate Register
as of the end of each calendar year that is provided by the Trustee pursuant to the Agreement is
accurate as of the last day of the 20[_] calendar year.

     Capitalized terms used and not defined herein shall have the meanings given such terms in the
Agreement.

     IN WITNESS WHEREOF, I have duly executed this certificate as of _________, 20_.

	 	 	 	 	 
	 	 	 
	 		
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

L-1

 

	 	 	 	 	 

EXHIBIT M

FORM OF LENDER CERTIFICATION FOR ASSIGNMENT OF MORTGAGE LOAN

                         , 20_

Phoenix Residential Securities, LLC

1100 Virginia Drive

Fort Washington, Pennsylvania 19034

[                                        ]

[                                        ]

[                                        ]

Attention: [                                        ] Series 20[_]-[ABC][_]

			
		 Re:	  Mortgage-Backed Pass-Through Certificates,

  Series 20[_]-[ABC][_] Assignment of Mortgage
Loan

Ladies and Gentlemen:

          This letter is delivered to you in connection with the assignment by ________________ (the
“Trustee”) to ______________________ (the “Lender”) of _______________ (the “Mortgage Loan”)
pursuant to Section 3.13(d) of the Pooling and Servicing Agreement (the “Pooling and Servicing
Agreement”), dated as of [__________] 1, 20[_] among Phoenix Residential Securities, LLC, as seller
(the “Company”), [_________________], as master servicer, and the Trustee. All terms used herein
and not otherwise defined shall have the meanings set forth in the Pooling and Servicing Agreement.
The Lender hereby certifies, represents and warrants to, and covenants with, the Master Servicer
and the Trustee that:

     (i) the Mortgage Loan is secured by Mortgaged Property located in a jurisdiction in which an
assignment in lieu of satisfaction is required to preserve lien priority, minimize or avoid
mortgage recording taxes or otherwise comply with, or facilitate a refinancing under, the laws of
such jurisdiction;

     (ii) the substance of the assignment is, and is intended to be, a refinancing of such Mortgage
Loan and the form of the transaction is solely to comply with, or facilitate the transaction under,
such local laws;

     (iii) the Mortgage Loan following the proposed assignment will be modified to have a rate of
interest at least [0.25] percent below or above the rate of interest on such Mortgage Loan prior to
such proposed assignment; and

M-1

 

     (iv) such assignment is at the request of the borrower under the related Mortgage Loan.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	 	 
	 	(Lender) 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

M-2

 

EXHIBIT N

FORM OF RULE 144A INVESTMENT REPRESENTATION

Description of Rule 144A Securities, including numbers:

 

 

 

 

          The undersigned seller, as registered holder (the “Seller”), intends to transfer the Rule 144A
Securities described above to the undersigned buyer (the “Buyer”).

          1. In connection with such transfer and in accordance with the agreements pursuant to which
the Rule 144A Securities were issued, the Seller hereby certifies the following facts: Neither the
Seller nor anyone acting on its behalf has offered, transferred, pledged, sold or otherwise
disposed of the Rule 144A Securities, any interest in the Rule 144A Securities or any other similar
security to, or solicited any offer to buy or accept a transfer, pledge or other disposition of the
Rule 144A Securities, any interest in the Rule 144A Securities or any other similar security from,
or otherwise approached or negotiated with respect to the Rule 144A Securities, any interest in the
Rule 144A Securities or any other similar security with, any person in any manner, or made any
general solicitation by means of general advertising or in any other manner, or taken any other
action, that would constitute a distribution of the Rule 144A Securities under the Securities Act
of 1933, as amended (the “1933 Act”), or that would render the disposition of the Rule 144A
Securities a violation of Section 5 of the 1933 Act or require registration pursuant thereto, and
that the Seller has not offered the Rule 144A Securities to any person other than the Buyer or
another “qualified institutional buyer” as defined in Rule 144A under the 1933 Act.

          2. The Buyer warrants and represents to, and covenants with, the Seller, the Trustee and the
Master Servicer (as defined in the Pooling and Servicing Agreement (the “Agreement”), dated as of
[__________] 1, 20[_] among [_________________] as Master Servicer, Phoenix Residential Securities,
LLC as depositor pursuant to Section 5.02 of the Agreement and [______________], as trustee, as
follows:

          a. The Buyer understands that the Rule 144A Securities have not been registered under
the 1933 Act or the securities laws of any state.

          b. The Buyer considers itself a substantial, sophisticated institutional investor
having such knowledge and experience in financial and business matters that it is capable of
evaluating the merits and risks of investment in the Rule 144A Securities.

          c. The Buyer has been furnished with all information regarding the Rule 144A Securities
that it has requested from the Seller, the Trustee or the Servicer.

          d. Neither the Buyer nor anyone acting on its behalf has offered, transferred, pledged,
sold or otherwise disposed of the Rule 144A Securities, any interest in the Rule 144A
Securities or any other similar security to, or solicited any offer to buy or accept a
transfer, pledge or other disposition of the Rule 144A Securities, any interest in the Rule
144A Securities or any other similar security from, or otherwise approached

 

 

or negotiated with respect to the Rule 144A Securities, any interest in the Rule 144A
Securities or any other similar security with, any person in any manner, or made any general
solicitation by means of general advertising or in any other manner, or taken any other
action, that would constitute a distribution of the Rule 144A Securities under the 1933 Act
or that would render the disposition of the Rule 144A Securities a violation of Section 5 of
the 1933 Act or require registration pursuant thereto, nor will it act, nor has it
authorized or will it authorize any person to act, in such manner with respect to the Rule
144A Securities.

          e. The Buyer is a “qualified institutional buyer” as that term is defined in Rule 144A
under the 1933 Act and has completed either of the forms of certification to that effect
attached hereto as Annex 1 or Annex 2. The Buyer is aware that the sale to it is being made
in reliance on Rule 144A. The Buyer is acquiring the Rule 144A Securities for its own
account or the accounts of other qualified institutional buyers, understands that such Rule
144A Securities may be resold, pledged or transferred only (i) to a person reasonably
believed to be a qualified institutional buyer that purchases for its own account or for the
account of a qualified institutional buyer to whom notice is given that the resale, pledge
or transfer is being made in reliance on Rule 144A, or (ii) pursuant to another exemption
from registration under the 1933 Act.

          3. The Buyer of the Class SB Certificate or Class R Certificate hereby certifies, represents
and warrants to, and covenants with the Company, the Trustee and the Master Servicer that the
following statements in (a) or (b) are correct:

          a. The Buyer is not an employee benefit or other plan subject to the prohibited transaction
provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or Section
4975 of the Internal Revenue Code of 1986, as amended (the “Code”) (a “Plan”), or any other person
(including an investment manager, a named fiduciary or a trustee of any Plan) acting, directly or
indirectly, on behalf of or purchasing any Certificate with “plan assets” of any Plan within the
meaning of the Department of Labor (“DOL”) regulation at 29 C.F.R. §2510.3-101; or

          b. The Buyer has provided the Trustee, the Company and the Master Servicer with an opinion of
counsel acceptable to and in form and substance satisfactory to the Trustee, the Company and the
Master Servicer to the effect that the purchase the purchase or holding of Certificates is
permissible under applicable law, will not constitute or result in any non-exempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code (or comparable provisions of any
subsequent enactments) and will not subject the Trustee, the Company, the Master Servicer or the
Trust Fund to any obligation or liability (including obligations or liabilities under ERISA or
Section 4975 of the Code) in addition to those undertaken in the Pooling and Servicing Agreement.

          In addition, the Buyer hereby certifies, represents and warrants to, and covenants with, the
Company, the Trustee and the Master Servicer that the Buyer will not transfer such Certificates to
any Plan or person unless either such Plan or person meets the requirements set forth in either (a)
or (b) above.

          4. This document may be executed in one or more counterparts and by the different parties
hereto on separate counterparts, each of which, when so executed, shall be

N-2

 

deemed to be an original; such counterparts, together, shall constitute one and the same
document.

[Signature Page Follows]

N-3

 

     
IN WITNESS WHEREOF, each of the parties has executed this document as of the date set forth below.

	 	 	 	 	 	 	 	 	 	 	 
	Print Name of Seller _____________________	 	Print Name of Buyer __________________
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	Name:	 	 	 	 
	 

	 	Title:
	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Taxpayer Identification:	 	Taxpayer Identification:
	 
	 	 	 	 	 	 	 	 	 	 
	No.

	 	 	 	No.	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	Date:	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

N-4

 

ANNEX I TO EXHIBIT N

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Buyers Other Than Registered Investment Companies]

     The undersigned hereby certifies as follows in connection with the Rule 144A Investment
Representation to which this Certification is attached:

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

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

	 	 	 

	____

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

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

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

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

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

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

N-5

 

	 	 	 

	____

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

	 	Investment Adviser. The Buyer is an investment adviser registered
under the Investment Advisers Act of 1940.
	 
	 	 
	____

	 	SBIC. The Buyer is a Small Business Investment Company licensed by
the U.S. Small Business Administration under Section 301(c) or (d) of
the Small Business Investment Act of 1958.
	 
	 	 
	____

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

	 	Trust Fund. The Buyer is a trust fund whose trustee is a bank or
trust company and whose participants are exclusively (a) plans
established and maintained by a State, its political subdivisions, or
any agency or instrumentality of the State or its political
subdivisions, for the benefit of its employees, or (b) employee
benefit plans within the meaning of Title I of the Employee
Retirement Income Security Act of 1974, but is not a trust fund that
includes as participants individual retirement accounts or H.R. 10
plans.

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

     4. For purposes of determining the aggregate amount of securities owned and/or invested on a
discretionary basis by the Buyer, the Buyer used the cost of such securities to the Buyer and did
not include any of the securities referred to in the preceding paragraph. Further, in determining
such aggregate amount, the Buyer may have included securities owned by subsidiaries of the Buyer,
but only if such subsidiaries are consolidated with the Buyer in its financial statements prepared
in accordance with generally accepted accounting principles and if the investments of such
subsidiaries are managed under the Buyer’s direction. However, such securities were not included if
the Buyer is a majority-owned, consolidated subsidiary of another enterprise and the Buyer is not
itself a reporting company under the Securities Exchange Act of 1934.

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

	 	 	 	 	 

	___

	 	___
	 	Will the Buyer be purchasing the Rule 144A
	Yes

	 	No
	 	Securities only for the Buyer’s own account?

     6. If the answer to the foregoing question is “no”, the Buyer agrees that, in connection with
any purchase of securities sold to the Buyer for the account of a third party (including any
separate account) in reliance on Rule 144A, the Buyer will only purchase for the account of a third
party that at the time is a “qualified institutional buyer” within the meaning of Rule 144A. In
addition, the Buyer agrees that the Buyer will not purchase securities for a third party unless the
Buyer has obtained a current representation letter from such third party or taken other

N-6

 

appropriate steps contemplated by Rule 144A to conclude that such third party independently
meets the definition of “qualified institutional buyer” set forth in Rule 144A.

     7. The Buyer will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given, the Buyer’s purchase
of Rule 144A Securities will constitute a reaffirmation of this certification as of the date of
such purchase.

	 	 	 	 	 
	 	Print Name of Buyer

 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Date:  	 	 
	 	 	 

N-7

 

ANNEX II TO EXHIBIT N

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Buyers That Are Registered Investment Companies]

          The undersigned hereby certifies as follows in connection with the Rule 144A Investment
Representation to which this Certification is attached:

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

          2. In connection with purchases by Buyer, the Buyer is a “qualified institutional buyer” as
defined in SEC Rule 144A because (i) the Buyer is an investment company registered under the
Investment Company Act of 1940, and (ii) as marked below, the Buyer alone, or the Buyer’s Family of
Investment Companies, owned at least $100,000,000 in securities (other than the excluded securities
referred to below) as of the end of the Buyer’s most recent fiscal year. For purposes of
determining the amount of securities owned by the Buyer or the Buyer’s Family of Investment
Companies, the cost of such securities was used.

	 	 	 

	____

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

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

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

          4. The term “securities” as used herein does not include (i) securities of issuers
that are affiliated with the Buyer or are part of the Buyer’s Family of Investment Companies, (ii)
bank deposit notes and certificates of deposit, (iii) loan participations, (iv) repurchase
agreements, (v) securities owned but subject to a repurchase agreement and (vi) currency, interest
rate and commodity swaps.

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

          6. The undersigned will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice, the Buyer’s

N-8

 

purchase of Rule 144A Securities will constitute a reaffirmation of this certification by the
undersigned as of the date of such purchase.

	 	 	 	 	 
	 
	 	Print Name of Buyer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	IF AN ADVISER:

Print Name of Buyer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	Date:  	 	 
	 

N-9

 

EXHIBIT O

[RESERVED]

O-1

 

EXHIBIT P

FORM OF ERISA REPRESENTATION LETTER

___________, 20__

Phoenix Residential Securities, LLC

1100 Virginia Drive

Fort Washington, Pennsylvania 19034

[ ____________________ ]

[ ____________________ ]

[ ____________________ ]

[ _________________ ]

[ ____________________ ]

[ ____________________ ]

Attention: [_________________] Series 20[_]-[ABC][_]

	 	Re:	 	Phoenix Residential Securities, LLC
Mortgage-Backed Pass-Through Certificates, Series
20[_]-[ABC][_], Class [SB]

Ladies and Gentlemen:

          [__________________________] (the “Purchaser”) intends to purchase from [____________________]
(the “Seller”) $[____________] Initial Certificate Principal Balance of Mortgage-Backed
Pass-Through, Series 20[_]-[ABC][_] (the “Certificates”), issued pursuant to the Pooling and
Servicing Agreement (the “Pooling and Servicing Agreement”), dated as of [_________] 1, 20[_],
among Phoenix Residential Securities, LLC, as depositor (the “Depositor”), [_________________], as
master servicer (the “Master Servicer”), and [____________], as trustee (the “Trustee”). All terms
used herein and not otherwise defined shall have the meanings set forth in the Pooling and
Servicing Agreement.

          The Purchaser hereby certifies, represents and warrants to, and covenants with the Depositor,
the Trustee and the Master Servicer that, either:

     (a) The Purchaser is not an employee benefit plan or other plan or arrangement subject
to the prohibited transaction provisions of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of 1986, as amended
(the “Code”), or any person (including an insurance company investing its general account,
an investment manager, a named fiduciary or a trustee of any such plan) who is using “plan
assets” of any such plan to effect such acquisition (each of the foregoing, a “Plan
Investor”); or

     (b) The Purchaser has provided the Trustee, the Depositor and the Master Servicer with
the Opinion of Counsel described in Section 5.02(e)(i) of the Agreement, which shall be
acceptable to and in form and substance satisfactory to the Trustee, the

P-1

 

Depositor and the Master Servicer to the effect that the purchase or holding of
Certificates is permissible under applicable law, will not constitute or result in any non
exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code (or
comparable provisions of any subsequent enactments), and will not subject the Trustee, the
Depositor or the Master Servicer to any obligation or liability (including obligations or
liabilities under ERISA or Section 4975 of the Code) in addition to those undertaken in the
Pooling and Servicing Agreement, which Opinion of Counsel shall not be at the expense of the
Trustee, the Depositor or the Master Servicer.

          In addition, the Purchaser hereby certifies, represents and warrants to, and covenants with,
the Seller, the Trustee and the Master Servicer that the Purchaser will not transfer such
Certificates to any Plan or person unless that Plan or person meets the requirements in either (a)
or (b) above.

          The Purchaser hereby agrees to indemnify and hold harmless the Company, the Trustee, the
Master Servicer, any Subservicer and the Trust Fund from and against all liabilities, claims, costs
or expenses incurred by such parties as a result of a breach of any representation, warranty or
covenant made by the Purchaser herein.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

P-2

 

	 	 	 	 	 

EXHIBIT Q

INFORMATION TO BE PROVIDED BY THE MASTER SERVICER TO THE RATING

AGENCIES RELATING TO REPORTABLE MODIFIED MORTGAGE LOANS

Account number

Transaction Identifier

Unpaid Principal Balance prior to Modification

Next Due Date

Monthly Principal and Interest Payment

Total Servicing Advances

Current Interest Rate

Original Maturity Date

Original Term to Maturity (Months)

Remaining Term to Maturity (Months)

Trial Modification Indicator

Mortgagor Equity Contribution

Total Servicer Advances

Trial Modification Term (Months)

Trial Modification Start Date

Trial Modification End Date

Trial Modification Period Principal and Interest Payment

Trial Modification Interest Rate

Trial Modification Term

Rate Reduction Indicator

Interest Rate Post Modification

Rate Reduction Start Date

Rate Reduction End Date

Rate Reduction Term

Term Modified Indicator

Modified Amortization Period

Modified Final Maturity Date

Total Advances Written Off

Unpaid Principal Balance Written Off

Other Past Due Amounts Written Off

Write Off Date

Unpaid Principal Balance Post Write Off

Capitalization Indicator

Mortgagor Contribution

Total Capitalized Amount

Modification Close Date

Unpaid Principal Balance Post Capitalization Modification

Next Payment Due Date per Modification Plan

Principal and Interest Payment Post Modification

Interest Rate Post Modification

Payment Made Post Capitalization

Delinquency Status to Modification Plan

Q-1

 

EXHIBIT R

     SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

     The assessment of compliance to be delivered by the Trustee shall address, at a minimum, the
criteria identified as below as “Applicable Servicing Criteria”:

	 	 	 	 	 
	Servicing Criteria	 	Applicable

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.	 	 
	 
	 	 	 	 
	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.	 	 
	 
	 	 	 	 
	1122(d)(1)(iii)

	 	     Any requirements in the transaction
agreements to maintain a back-up servicer for
the pool assets 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.	 	 
	 
	 	 	 	 
	 

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

	 	     Payments on pool assets 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.
	 	ü
	 
	 	 	 	 
	1122(d)(2)(ii)

	 	     Disbursements made via wire transfer on
behalf of an obligor or to an investor are
made only by authorized personnel.
	 	ü
	 
	 	 	 	 
	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,	 	 

R-1

 

	 	 	 	 	 
	Servicing Criteria	 	Applicable

Servicing Criteria
	Reference	 	Criteria	 	 
	 

	 	reviewed and approved as
specified in the transaction agreements.	 	 
	 
	 	 	 	 
	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.	 	 
	 
	 	 	 	 
	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.	 	 
	 
	 	 	 	 
	1122(d)(2)(vi)

	 	     Unissued checks are safeguarded so as to
prevent unauthorized access.	 	 
	 
	 	 	 	 
	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.	 	 
	 
	 	 	 	 
	 

	 	     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	 	 

R-2

 

	 	 	 	 	 
	Servicing Criteria	 	Applicable

Servicing Criteria
	Reference	 	Criteria	 	 
	 

	 	Commission
as required by its rules and regulations; and
(D) agree with investors’ or the trustee’s
records as to the total unpaid principal
balance and number of pool assets serviced by the servicer.	 	 
	 
	 	 	 	 
	1122(d)(3)(ii)

	 	     Amounts due to investors are allocated and
remitted in accordance with timeframes,
distribution priority and other terms set
forth in the transaction agreements.
	 	ü
	 
	 	 	 	 
	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.
	 	ü
	 
	 	 	 	 
	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.
	 	ü
	 
	 	 	 	 
	 

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

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

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

	 	     Payments on pool assets, including any
payoffs, made in accordance with the related
pool asset documents are posted to the
servicer’s obligor records maintained no more
than two business days after receipt, or such
other number of days specified in the
transaction agreements, and allocated to
principal, interest or other items (e.g.,
escrow) in accordance with the related pool
asset documents.	 	 

R-3

 

	 	 	 	 	 
	Servicing Criteria	 	Applicable

Servicing Criteria
	Reference	 	Criteria	 	 
	1122(d)(4)(v)

	 	     The servicer’s records regarding the pool
assets agree with the servicer’s records with
respect to an obligor’s unpaid principal
balance.	 	 
	 
	 	 	 	 
	1122(d)(4)(vi)

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

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

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

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

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

R-4

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