Document:

EXHIBIT 4.1
                                   -----------

                                                               EXECUTION COPY

                          ===========================

                                  CWMBS, INC.,

                                    Depositor

                            EMC MORTGAGE CORPORATION,

                                     Seller

                      COUNTRYWIDE HOME LOANS SERVICING LP,

                                 Master Servicer

                                       and

                              THE BANK OF NEW YORK,

                                     Trustee

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

                         POOLING AND SERVICING AGREEMENT
                            Dated as of July 1, 2005

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

                     CHL MORTGAGE PASS-THROUGH TRUST 2005-19

               MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2005-19

<PAGE>

                                Table of Contents
<TABLE>
<CAPTION>

                                                                                                         Page

                                    ARTICLE I
                                   DEFINITIONS

                                   ARTICLE II
          CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES

<S>             <C>                                                                                        <C>
SECTION 2.01.   Conveyance of Mortgage Loans...............................................................44
SECTION 2.02.   Acceptance by Trustee of the Mortgage Loans................................................47
SECTION 2.03.   Representations, Warranties and Covenants of the Seller and the Master Servicer............49
SECTION 2.04.   Representations and Warranties of the Depositor as to the Mortgage Loans...................51
SECTION 2.05.   Delivery of Opinion of Counsel in Connection with Substitutions............................52
SECTION 2.06.   Execution and Delivery of Certificates.....................................................52
SECTION 2.07.   REMIC Matters..............................................................................52
SECTION 2.08.   Covenants of the Master Servicer...........................................................52

                                   ARTICLE III
                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

SECTION 3.01.   Master Servicer to Service Mortgage Loans..................................................54
SECTION 3.02.   Subservicing; Enforcement of the Obligations of Subservicers...............................55
SECTION 3.03.   Rights of the Depositor and the Trustee in Respect of the Master Servicer..................55
SECTION 3.04.   Trustee to Act as Master Servicer..........................................................56
SECTION 3.05.   Collection of Mortgage Loan Payments; Certificate Account;
                Distribution Account; Class C Distribution Account.........................................56
SECTION 3.06.   Collection of Taxes, Assessments and Similar Items; Escrow Accounts........................60
SECTION 3.07.   Access to Certain Documentation and Information Regarding the Mortgage Loans...............60
SECTION 3.08.   Permitted Withdrawals from the Certificate Account and the Distribution Account............61
SECTION 3.09.   Maintenance of Hazard Insurance; Maintenance of Primary Insurance Policies.................63
SECTION 3.10.   Enforcement of Due-on-Sale Clauses; Assumption Agreements..................................64
SECTION 3.11.   Realization Upon Defaulted Mortgage Loans; Repurchase of Certain Mortgage Loans............65
SECTION 3.12.   Trustee to Cooperate; Release of Mortgage Files............................................68
SECTION 3.13.   Documents, Records and Funds in Possession of Master Servicer to be Held for the Trustee...69
SECTION 3.14.   Servicing Compensation.....................................................................70

                                       i
<PAGE>

SECTION 3.15.   Access to Certain Documentation............................................................70
SECTION 3.16.   Annual Statement as to Compliance..........................................................71
SECTION 3.17.   Annual Independent Public Accountants' Servicing Statement; Financial Statements...........71
SECTION 3.18.   Errors and Omissions Insurance; Fidelity Bonds.............................................71

                                   ARTICLE IV
                DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER

SECTION 4.01.   Advances...................................................................................73
SECTION 4.02.   Priorities of Distribution.................................................................74
SECTION 4.03.   [Reserved].................................................................................79
SECTION 4.04.   Allocation of Realized Losses..............................................................79
SECTION 4.05.   Cross-Collateralization....................................................................80
SECTION 4.06.   Monthly Statements to Certificateholders...................................................81
SECTION 4.07.   Determination of Pass-Through Rates for COFI Certificates..................................82
SECTION 4.08.   Determination of Pass-Through Rates for LIBOR Certificates.................................84

                                    ARTICLE V
                                THE CERTIFICATES

SECTION 5.01.   The Certificates...........................................................................86
SECTION 5.02.   Certificate Register; Registration of Transfer and Exchange of Certificates................86
SECTION 5.03.   Mutilated, Destroyed, Lost or Stolen Certificates..........................................91
SECTION 5.04.   Persons Deemed Owners......................................................................91
SECTION 5.05.   Access to List of Certificateholders' Names and Addresses..................................91
SECTION 5.06.   Maintenance of Office or Agency............................................................92

                                   ARTICLE VI
                      THE DEPOSITOR AND THE MASTER SERVICER

SECTION 6.01.   Respective Liabilities of the Depositor and the Master Servicer............................93
SECTION 6.02.   Merger or Consolidation of the Depositor or the Master Servicer............................93
SECTION 6.03.   Limitation on Liability of the Depositor, the Seller, the Master Servicer and Others.......93
SECTION 6.04.   Limitation on Resignation of Master Servicer...............................................94

                                   ARTICLE VII
                                     DEFAULT

SECTION 7.01.   Events of Default..........................................................................95
SECTION 7.02.   Trustee to Act; Appointment of Successor...................................................96
SECTION 7.03.   Notification to Certificateholders.........................................................98

                                       ii
<PAGE>

                                  ARTICLE VIII
                             CONCERNING THE TRUSTEE

SECTION 8.01.   Duties of Trustee..........................................................................99
SECTION 8.02.   Certain Matters Affecting the Trustee.....................................................100
SECTION 8.03.   Trustee Not Liable for Certificates or Mortgage Loans.....................................101
SECTION 8.04.   Trustee May Own Certificates..............................................................101
SECTION 8.05.   Trustee's Fees and Expenses...............................................................101
SECTION 8.06.   Eligibility Requirements for Trustee......................................................102
SECTION 8.07.   Resignation and Removal of Trustee........................................................102
SECTION 8.08.   Successor Trustee.........................................................................103
SECTION 8.09.   Merger or Consolidation of Trustee........................................................103
SECTION 8.10.   Appointment of Co-Trustee or Separate Trustee.............................................104
SECTION 8.11.   Tax Matters...............................................................................105

                                   ARTICLE IX
                                   TERMINATION

SECTION 9.01.   Termination upon Liquidation or Purchase of all Mortgage Loans............................108
SECTION 9.02.   Final Distribution on the Certificates....................................................108
SECTION 9.03.   Additional Termination Requirements.......................................................110
SECTION 9.04.   Auction of the Mortgage Loans and REO Properties..........................................111

                                    ARTICLE X
                            MISCELLANEOUS PROVISIONS

SECTION 10.01.  Amendment.................................................................................X-1
SECTION 10.02.  Recordation of Agreement; Counterparts....................................................X-2
SECTION 10.03.  Governing Law.............................................................................X-3
SECTION 10.04.  Intention of Parties......................................................................X-3
SECTION 10.05.  Notices...................................................................................X-3
SECTION 10.06.  Severability of Provisions................................................................X-4
SECTION 10.07.  Assignment................................................................................X-4
SECTION 10.08.  Limitation on Rights of Certificateholders................................................X-5
SECTION 10.09.  Inspection and Audit Rights...............................................................X-5
SECTION 10.10.  Certificates Nonassessable and Fully Paid.................................................X-6
SECTION 10.11.  [Reserved]................................................................................X-6
SECTION 10.12.  Protection of Assets......................................................................X-6

                                      iii
<PAGE>

                                    SCHEDULES

Schedule I:     Mortgage Loan Schedule..................................................................S-I-1
Schedule II:    Representations and Warranties of the Seller...........................................S-II-1
Schedule III:   Representations and Warranties of the Seller as to the Mortgage Loans.................S-III-1
Schedule IV:    Representations and Warranties of the Master Servicer..................................S-IV-1
Schedule V:     Principal Balance Schedules (if applicable).............................................S-V-1
Schedule VI:    Form of Monthly Master Servicer Report.................................................S-VI-1

                                    EXHIBITS

Exhibit A:      Form of Senior Certificate (excluding Notional Amount Certificates).......................A-1
Exhibit B:      Form of Subordinated Certificate..........................................................B-1
Exhibit C:      Form of Class A-R Certificate.............................................................C-1
Exhibit D:      Form of Notional Amount Certificate.......................................................D-1
Exhibit E:      Form of Reverse of Certificates...........................................................E-1
Exhibit F:      Form of Initial Certification of Trustee..................................................F-1
Exhibit G:      [Reserved]................................................................................G-1
Exhibit H:      Form of Final Certification of Trustee....................................................H-1
Exhibit I:      Form of Transfer Affidavit................................................................I-1
Exhibit J-1:    Form of Transferor Certificate (Residual).................................................J-1
Exhibit J-2:    Form of Transferor Certificate (Private)..................................................J-2
Exhibit K:      Form of Investment Letter [Non-Rule 144A].................................................K-1
Exhibit L:      Form of Rule 144A Letter..................................................................L-1
Exhibit M:      Form of Request for Release (for Trustee).................................................M-1
Exhibit N:      Form of Request for Release of Documents (Mortgage Loan - Paid in Full,
                Repurchased and Replaced).................................................................N-1
Exhibit O:      [Reserved]................................................................................O-1
Exhibit P:      [Reserved]................................................................................P-1
Exhibit Q:      [Reserved]................................................................................Q-1

</TABLE>

                                       iv
<PAGE>

         THIS POOLING AND SERVICING AGREEMENT, dated as of July 1, 2005, among
CWMBS, INC., a Delaware corporation, as depositor (the "Depositor"), EMC
MORTGAGE CORPORATION, a Delaware corporation, as seller (the "Seller"),
COUNTRYWIDE HOME LOANS SERVICING LP, a Texas limited partnership, as master
servicer (the "Master Servicer"), and THE BANK OF NEW YORK, a banking
corporation organized under the laws of the State of New York, as trustee (the
"Trustee").

                                 WITNESSETH THAT

         In consideration of the mutual agreements herein contained, the parties
hereto agree as follows:

                              PRELIMINARY STATEMENT

         The Depositor is the owner of the Trust Fund that is hereby conveyed to
the Trustee in return for the Certificates. For federal income tax purposes, the
Trust Fund will consist of four real estate mortgage investment conduits (each a
"REMIC" or, in the alternative, the "Ratio Strip REMIC," the "Subordinate WAC
REMIC," the "IO REMIC" and the "Master REMIC," respectively). Each Certificate,
other than the Class A-R Certificate, will represent ownership of one or more
regular interests in the Master REMIC for purposes of the REMIC Provisions. The
Class A-R Certificate will represent ownership of the sole class of residual
interest in each of the Ratio Strip REMIC, the Subordinate WAC REMIC, the IO
REMIC and the Master REMIC. The Master REMIC will hold as assets the several
classes of uncertificated IO REMIC Interests (other than the Class IO-A-R
Interest). The IO REMIC will hold as assets the several classes of
uncertificated Subordinate WAC REMIC Interests (other than the Class SW-A-R
Interest). The Subordinate WAC REMIC will hold as assets the several classes of
uncertificated Ratio Strip REMIC Interests (other than the Class RS-A-R
Interest). The Ratio Strip REMIC will hold as assets all property of the Trust
Fund. Each IO REMIC Interest (other than the Class IO-A-R Interest) is hereby
designated as a regular interest in the IO REMIC. Each Subordinate WAC REMIC
Interest (other than the Class SW-A-R Interest) is hereby designated as a
regular interest in the Subordinate WAC REMIC and each Ratio Strip REMIC
Interest (other than the Class RS-A-R Interest) is hereby designated as a
regular interest in the Ratio Strip REMIC,. The latest possible maturity date of
all REMIC regular interests created herein shall be the Latest Possible Maturity
Date.

                                       1
<PAGE>

         The following table sets forth characteristics of the Master REMIC
Certificates, together with the minimum denominations and integral multiples in
excess thereof in which such Classes shall be issuable (except that one
Certificate of each Class of Certificates may be issued in a different amount
and, in addition, one Residual Certificate representing the Tax Matters Person
Certificate may be issued in a different amount):

<TABLE>
<CAPTION>

======================================================================================================================

                               Initial Class        Pass-Through Rate                            Integral Multiples
   Class Designation        Certificate Balance        (per annum)      Minimum Denomination    in Excess of Minimum
---------------------------------------------------------------------------------------------------------------------
<S>                     <C>                              <C>                <C>                      <C>
Class 1-A-1              $  180,562,000.00                5.50%              $25,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class 1-A-2              $    3,840,000.00                5.50%               $1,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class 1-A-3              $    5,136,000.00                5.50%               $1,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class 1-A-4              $    2,232,000.00                5.25%               $1,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class 1-A-5              $    2,232,000.00                5.75%               $1,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class 1-A-6              $   75,000,000.00                5.50%              $25,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class 1-A-7              $   12,680,542.00                5.50%              $25,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class 1-A-8              $   24,494,134.00                5.50%              $25,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class 1-A-9              $   32,319,630.00                5.50%              $25,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class 1-A-10             $    1,700,000.00                5.50%              $25,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class 2-A-1              $   42,800,000.00                 (1)              $25,0000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class 2-A-2              $    1,369,552.00                 (2)              $25,0000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class 2-A-3                       (3)                      (4)             $25,000.00(5)              $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class 2-A-4                       (6)                     0.50%            $25,000.00(5)              $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class PO                 $      337,211.00                 (7)               $25,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class A-R(8)             $          100.00                5.50%              $100.00(9)                 $100.00(9)
---------------------------------------------------------------------------------------------------------------------
Class M                  $   10,213,358.00                (10)               $25,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class B-1                $    2,403,143.00                (10)               $25,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class B-2                $    1,201,571.00                (10)               $25,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class B-3                $      801,047.00                (10)              $100,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class B-4                $      600,785.00                (10)              $100,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class B-5                $      600,790.38                (10)              $100,000.00               $1,000.00
---------------------------------------------------------------------------------------------------------------------
Class C                  $          100.00                (11)                  $100.00                   N/A
======================================================================================================================

</TABLE>

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

(1)      The Class 2-A-1 Certificates will bear interest during each Interest
         Accrual Period at a per annum rate of LIBOR plus 0.35%, subject to a
         maximum and minimum Pass-Through Rate of 7.50% and 0.35% per annum,
         respectively. The Pass-Through Rate for the Class 2-A-1 Certificates
         during the initial Interest Accrual Period is 3.69% per annum.

(2)      The Class 2-A-2 Certificates will bear interest during each Interest
         Accrual Period at a per annum rate of LIBOR plus 0.35%, subject to a
         maximum and minimum Pass-Through Rate of 7.50% and 0.35% per annum,
         respectively. The Pass-Through Rate for

                                       2
<PAGE>

         the Class 2-A-1 Certificates during the initial Interest Accrual
         Period is 3.69% per annum.

(3)      The Class 2-A-3 Certificates will be Notional Amount Certificates, will
         have no Class Certificate Balance and will bear interest on its
         Notional Amount (initially, $44,169,552).

(4)      The Class 2-A-3 Certificates will bear interest during each Interest
         Accrual Period at a per annum rate of 7.15% minus LIBOR, subject to a
         maximum and minimum Pass-Through Rate of 7.15% and 0.00% per annum,
         respectively. The Pass-Through Rate for the Class 2-A-2 Certificates
         during the initial Interest Accrual Period is 3.81% per annum.

(5)      Minimum denomination is based on the Notional Amount of such Class.

(6)      The Class 2-A-4 Certificates will be Notional Amount Certificates, will
         have no Class Certificate Balance and will bear interest on its
         Notional Amount (initially, $44,169,552).

(7)      This Class of Certificates will be Principal Only Certificates and
         will not receive any distributions of interest.

(8)      The Class A-R Certificates represent the sole Class of residual
         interest in each REMIC.

(9)      The Class A-R Certificates shall be issued as two separate
         certificates, one with an initial Certificate Balance of $99.99 and
         the Tax Matters Person Certificate with an initial Certificate
         Balance of $0.01.

(10)     The Pass-Through Rate for each Class of Subordinated Certificates (the
         "Subordinate Pass-Through Rate") for the Interest Accrual Period
         related to any Distribution Date will be a per annum rate equal to (a)
         the sum of the following for each Collateral Allocation Group: the
         related Required Coupon multiplied by the excess of the Collateral
         Allocation Group Principal Balance of that Collateral Allocation Group
         as of the Due Date in the month preceding the month of that
         Distribution Date (after giving effect to Principal Prepayments
         received in the Prepayment Period related to that prior Due Date) over
         the aggregate Class Certificate Balance of the related Senior
         Certificate Group immediately prior to that Distribution Date, divided
         by (b) the aggregate of the Class Certificate Balances of the
         Subordinated Certificates immediately prior to that Distribution Date.
         The Pass-Through Rate for each Class of Subordinated Certificates for
         the Interest Accrual Period related to the first Distribution Date will
         be 5.78732% per annum.

(11)     The Class C Certificates will not be entitled to payments of interest
         but will be entitled to receive any Auction Excess Proceeds in
         connection with any Successful Auction conducted pursuant to the terms
         hereof. The Class C Certificates will be issued as a single certificate
         with an initial Certificate Balance of $100.00.

                                      3
<PAGE>

<TABLE>
<CAPTION>

The following table specifies the class designation, interest rate, and
principal amount for each class of IO REMIC Interests:

--------------------------------------------------------------------------------------------------------------------
IO REMIC Interest               Initial Principal Balance         Interest Rate         Corresponding Master REMIC
                                                                                                Certificate

--------------------------------------------------------------------------------------------------------------------
<S>                                      <C>                          <C>                <C>
IO-1-A-1                                  $180,562,000.00              5.50%             Class 1-A-1
--------------------------------------------------------------------------------------------------------------------
IO-1-A-2                                    $3,840,000.00              5.50%             Class 1-A-2
--------------------------------------------------------------------------------------------------------------------
IO-1-A-3                                    $5,136,000.00              5.50%             Class 1-A-3
--------------------------------------------------------------------------------------------------------------------
IO-1-A-4                                    $2,232,000.00              5.25%             Class 1-A-4
--------------------------------------------------------------------------------------------------------------------
IO-1-A-5                                    $2,232,000.00              5.75%             Class 1-A-5
--------------------------------------------------------------------------------------------------------------------
IO-1-A-6                                   $75,000,000.00              5.50%             Class 1-A-6
--------------------------------------------------------------------------------------------------------------------
IO-1-A-7                                   $12,680,542.00              5.50%             Class 1-A-7
--------------------------------------------------------------------------------------------------------------------
IO-1-A-8                                   $24,494,134.00              5.50%             Class 1-A-8
--------------------------------------------------------------------------------------------------------------------
IO-1-A-9                                   $32,319,630.00              5.50%             Class 1-A-9
--------------------------------------------------------------------------------------------------------------------
IO-1-A-10                                   $1,700,000.00              5.50%             Class 1-A-10
--------------------------------------------------------------------------------------------------------------------
IO-2-A-1                                   $42,800,000.00              8.00%             Class 2-A-1,
                                                                                         Class 2-A-3(1) and
                                                                                         Class 2-A-4(2)
--------------------------------------------------------------------------------------------------------------------
IO-2-A-2                                    $1,369,552.00              8.00%             Class 2-A-2,
                                                                                         Class 2-A-3(3) and
                                                                                         Class 2-A-4(4)
--------------------------------------------------------------------------------------------------------------------
IO-1-$100                                         $100.00              5.50%             Class A-R
--------------------------------------------------------------------------------------------------------------------
IO-PO                                         $337,211.00               (5)              Class PO
--------------------------------------------------------------------------------------------------------------------
IO-M                                       $10,213,358.00               (6)              Class M
--------------------------------------------------------------------------------------------------------------------
IO-B-1                                      $2,403,143.00               (6)              Class B-1
--------------------------------------------------------------------------------------------------------------------
IO-B-2                                      $1,201,571.00               (6)              Class B-2
--------------------------------------------------------------------------------------------------------------------
IO-B-3                                        $801,047.00               (6)              Class B-3
--------------------------------------------------------------------------------------------------------------------
IO-B-4                                        $600,785.00               (6)              Class B-4
--------------------------------------------------------------------------------------------------------------------
IO-B-5                                        $600,790.38               (6)              Class B-5
--------------------------------------------------------------------------------------------------------------------
IO-A-R                                         (7)                      (7)              N/A
--------------------------------------------------------------------------------------------------------------------

</TABLE>

(1) For each Distribution Date, the Class 2-A-3 Certificates are entitled to a
portion of the interest payable on the Class IO-2-A-1 Interest. Specifically,
for each such Distribution Date, the Class 2-A-3 Certificates are entitled to
the interest payable on the Class IO-2-A-1 Interest at a per annum rate equal to
7.15% minus LIBOR, but not less than 0.00%.

(2) For each Distribution Date, the Class 2-A-4 Certificates are entitled to a
portion of the interest payable on the Class IO-2-A-1 Interest. Specifically,
for each such Distribution Date, the Class 2-A-4 Certificates are entitled to
the interest payable on the Class IO-2-A-1 Interest at a per annum rate equal to
0.50%.

(3) For each Distribution Date, the Class 2-A-3 Certificates are entitled to a
portion of the interest payable on the Class IO-2-A-2 Interest. Specifically,
for each such Distribution Date,

                                      4
<PAGE>

the Class 2-A-3 Certificates are entitled to the interest payable on the Class
IO-2-A-2 Interest at a per annum rate equal to 7.15% minus LIBOR, but not less
than 0.00%.

(4) For each Distribution Date, the Class 2-A-4 Certificates are entitled to a
portion of the interest payable on the Class IO-2-A-2 Interest. Specifically,
for each such Distribution Date, the Class 2-A-4 Certificates are entitled to
the interest payable on the Class IO-2-A-2 Interest at a per annum rate equal to
0.50%.

(5) The Class IO-PO Interest makes no interest payments. For each Distribution
Date it is entitled to the principal distributions made with respect to the
Class SW-PO Subordinate WAC REMIC Interest.

(6) The Subordinate Pass-Through Rate.

(7) The IO-A-R is the sole class of residual interest in the IO REMIC. It pays
no interest or principal.

         On each Distribution Date, interest shall be payable on the IO REMIC
Interests according the formulas described above, and principal, Realized Losses
and Subsequent Recoveries shall be allocated among the IO REMIC Interests in the
same manner that such items are allocated among their corresponding Certificate
Classes.

                                      5
<PAGE>

         The following table specifies the class designation, interest rate, and
principal amount for each class of Subordinate WAC REMIC Interests:

         Subordinate WAC REMIC Interests

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------------------------------
       Subordinate WAC            Initial Class Principal               Class              Corresponding
         REMIC Class                      Balance                   Interest Rate      Collateral Allocation
         Designation                                                                          Group
----------------------------------------------------------------------------------------------------------------------
<S>                                      <C>                           <C>                            <C>
SW-A-1                                      (1)                         5.50%                          1
----------------------------------------------------------------------------------------------------------------------
SW-B-1                                      (1)                         5.50%                          1
----------------------------------------------------------------------------------------------------------------------
SW-C-1                                      (1)                         5.50%                          1
----------------------------------------------------------------------------------------------------------------------
SW-PO                                    $337,211                        (2)                           1
----------------------------------------------------------------------------------------------------------------------
SW-A-2                                      (1)                         8.00%                          2
----------------------------------------------------------------------------------------------------------------------
SW-B-2                                      (1)                         8.00%                          2
----------------------------------------------------------------------------------------------------------------------
SW-C-2                                      (1)                         8.00%                          2
----------------------------------------------------------------------------------------------------------------------
SW-A-R                                      (3)                          (3)                          N/A
----------------------------------------------------------------------------------------------------------------------

</TABLE>

(1)      Each Class A Subordinate WAC REMIC Interest will have an Initial
         Principal Balance equal to 0.9% of the Subordinated Portion of its
         Corresponding Collateral Allocation Group. Each Class B Subordinate WAC
         REMIC Interest will have an Initial Principal Balance equal to 0.1% of
         the Subordinated Portion of its Corresponding Collateral Allocation
         Group. Each Class C Subordinate WAC REMIC Interest will have an Initial
         Principal Balance in an amount equal to the excess of its Corresponding
         Collateral Allocation Group principal balance over the initial
         aggregate principal balances of the Class A and Class B Subordinate WAC
         REMIC Interests corresponding to such Collateral Allocation Group.
         Hereafter, the Class A, Class B and Class C Subordinate WAC REMIC
         Interests are referred to as "Tracking Interests."

(2)      The Class SW-PO Interest does not pay any interest. On each
         Distribution Date it is entitled to all amounts payable and allocable
         with respect to the Class RS-PO Ratio Strip REMIC Interest.

(3)      The Class SW-A-R Interest is the sole class of residual interest in
         the Subordinate WAC REMIC. It does not pay any interest or principal.

         On each Distribution Date, the Available Funds with respect to the
Ratio Strip REMIC Interests shall be distributed with respect to the the
Subordinate WAC REMIC Interests in the following manner:

         (1) Interest. Interest is to be distributed with respect to each
Subordinate WAC REMIC Interest at the rate, or according to the formulas,
described above.

         (2) Initial Allocations of Realized Losses and Principal with Respect
to Collateral Allocation Groups.

                                      6
<PAGE>

         a. The Trustee shall first allocate the Realized Losses (including any
         reductions in previously allocated Realized Losses attributable to any
         related Subsequent Recoveries), and distribute the principal on the
         Class RS-PO Ratio Strip REMIC Interest to the Class SW-PO Interest.

         b. The Trustee shall first allocate the Realized Losses (including any
         reductions in previously allocated Realized Losses attributable to any
         related Subsequent Recoveries), and distribute the principal on the
         Class RS-A and Class RS-B Ratio Strip REMIC Interests to the Class SW-1
         Tracking Interests.

         c. The Trustee shall first allocate the Realized Losses (including any
         reductions in previously allocated Realized Losses attributable to any
         related Subsequent Recoveries), and distribute the principal on the
         Class RS-C Ratio Strip REMIC Interests to the Class SW-2 Tracking
         Interests.

         (3) Subsequent Allocations. Amounts allocated to the Tracking
Interests of each Collateral Allocation Group in accordance with Paragraph 2,
above, shall be further allocated as described below.

         (4) Principal, if no Cross-Over Situation Exists. If no Cross-Over
Situation exists with respect to any Class of Tracking Interests, Principal
Amounts allocated with respect to each Collateral Allocation Group in
accordance with Paragraph 2, shall be further allocated: first to cause the
Collateral Allocation Group's corresponding Class A and Class B Tracking
Interests to equal, respectively, 0.9% of the Subordinated Portion and 0.1% of
the Subordinated Portion; and second to the Collateral Allocation Group's
corresponding Class C Tracking Interest;

         (5) Principal, if a Cross-Over Situation Exists. If a Cross-Over
Situation exists with respect to the Class A and Class B Tracking Interests:

                  (a) If the Calculation Rate in respect of the outstanding
                  Class A and Class B Tracking Interests is less than the
                  Subordinate Pass-Through Rate, Principal Relocation Payments
                  will be made proportionately to the outstanding Class A
                  Tracking Interests prior to any other Principal Distributions
                  from each such Collateral Allocation Group.

                  (b) If the Calculation Rate in respect of the outstanding
                  Class A and Class B Tracking Interests is greater than the
                  Subordinate Pass-Through Rate, Principal Relocation Payments
                  will be made proportionately to the outstanding Class B
                  Tracking Interests prior to any other Principal Distributions
                  from each such Collateral Allocation Group.

         In each case, Principal Relocation Payments will be made so as to cause
the Calculation Rate in respect of the outstanding Class A and Class B Tracking
Interests to equal the Subordinate Pass-Through Rate. With respect to each
Collateral Allocation Group, if (and to the extent that) the sum of (a) the
principal payments comprising the Principal Remittance Amount received during
the Due Period (as adjusted for amounts allocated to the Collateral Allocation
Group's PO component) and (b) the Realized Losses (as adjusted for amounts
allocated to the Collateral Allocation Group's PO component), are insufficient
to make the necessary reductions

                                      7
<PAGE>

of principal on the Class A and Class B Tracking Interests, then interest will
be added to the Collateral Allocation Group's Class C Tracking Interest.

                  (c) The outstanding aggregate Class A and Class B Tracking
                  Interests for all Collateral Allocation Groups will not be
                  reduced below 1 percent of the excess of (i) the aggregate
                  outstanding Principal Balances of all Collateral Allocation
                  Groups as of the end of any Due Period over (ii) the aggregate
                  Class Certificate Balance of the Senior Certificates for all
                  Collateral Allocation Groups as of the related Distribution
                  Date (after taking into account distributions of principal on
                  such Distribution Date).

         If (and to the extent that) the limitation in paragraph (c) prevents
the distribution of principal to the Class A and Class B Tracking Interests of a
Collateral Allocation Group, and if the Collateral Allocation Group's Class C
Tracking Interest has already been reduced to zero, then the excess principal
from that Collateral Allocation Group (as adjusted for amounts allocated to the
Collateral Allocation Groups' PO components) will be paid to the Class C
Tracking Interests of the other Collateral Allocation Groups, the aggregate
Class A and Class B Tracking Interests of which are less than one percent of the
Subordinated Portion. If the Collateral Allocation Group corresponding to the
Class C Tracking Interest that receives such payment has a weighted average
Adjusted Net Mortgage Rate below the weighted average Adjusted Net Mortgage Rate
of the Collateral Allocation Group making the payment, then the payment will be
treated by the Tracking as a Realized Loss. Conversely, if the Collateral
Allocation Group corresponding to the Class C Tracking Interest that receives
such payment has a weighted average Adjusted Net Mortgage Rate above the
weighted average Adjusted Net Mortgage Rate of the Collateral Allocation Group
making the payment, then the payment will be treated by the Subordinate WAC
REMIC as a reimbursement for prior Realized Losses.

<TABLE>
<CAPTION>

         Ratio Strip REMIC Interests

----------------------------------------------------------------------------------------------------------------------
         Ratio Strip              Initial Class Principal               Class                   Corresponding
         REMIC Class                      Balance                  Interest Rate             Collateral Allocation
         Designation                                                                                  Group
----------------------------------------------------------------------------------------------------------------------
<S>                                     <C>                             <C>                           <C>
RS-A-1 through X (1)                        (1)                         5.50%                          1
----------------------------------------------------------------------------------------------------------------------
RS-B-1 through Y (2)                        (2)                         5.50%                          1
----------------------------------------------------------------------------------------------------------------------
RS-C-1 through Z (3)                        (3)                         8.00%                          2
----------------------------------------------------------------------------------------------------------------------
RS-PO                                  $337,211 (1)                      (4)                           1
----------------------------------------------------------------------------------------------------------------------
RS-A-R                                      (5)                          (5)                          N/A
----------------------------------------------------------------------------------------------------------------------
</TABLE>

(1) The Ratio Strip REMIC will issue a single Class A regular interest for each
Mortgage Loan having a Net Mortgage Rate of less than or equal to 5.50%. The
principal balance of each such Class A regular interest will equal the principal
balance of the corresponding Mortgage Loan times a fraction the numerator of
which is the Net Mortgage Rate of the loan and the denominator of which is
5.50%. The remaining principal balance of each such Mortgage Loan will be
allocated to the RS-PO Interest.

                                      8
<PAGE>

(2) The Ratio Strip REMIC will issue a single Class B regular interest for each
mortgage Loan having a Net Mortgage Rate greater than 5.50%. The principal
balance of each such Class B regular interest will equal the principal balance
of the corresponding Mortgage Loan times a fraction the numerator of which is
the Net Mortgage Rate of the Mortgage Loan minus 5.50% and the denominator of
which is 2.50%.

(3) The Ratio Strip REMIC will also issue a single Class C regular interest for
each mortgage Loan having a Net Mortgage Rate greater than 5.50%. The principal
balance of each such Class C regular interest will equal the principal balance
of the corresponding Mortgage Loan times a fraction the numerator of which is
8.00% minus the Net Mortgage Rate of the Mortgage Loan and the denominator of
which is 2.50%.

(4) This Ratio Strip REMIC interest pays no interest.

(5) The Class RS-A-R Interest is the sole class of residual interest in the
Ratio Strip REMIC. It pays no interest of principal.

         On each Distribution Date, the Available Funds shall be distributed
with respect to the the Ratio Strip REMIC Interests in the following manner:

         (1) Interest. Interest is to be distributed with respect to each Ratio
Strip REMIC Interest at the rate, or according to the formulas, described above.

         (2) Principal and Realized Losses. Realized Losses (including any
reductions in previously allocated Realized Losses attributable to any related
Subsequent Recoveries), and principal shall be allocated among the Ratio Strip
REMIC Interests so as to maintain the proportions of the Interests as described
above.

                                      9
<PAGE>

<TABLE>
<CAPTION>

         Set forth below are designations of Classes or Components of
Certificates and other defined terms to the categories used herein:

<S>                                         <C>
Accretion Directed Certificates.............Class 1-A-1 and Class 1-A-6 Certificates.

Accretion Directed Components...............None.

Accrual Certificates........................Class 1-A-7 Certificates.

Accrual Components..........................None.

Book-Entry Certificates.....................All Classes of Certificates other than the Physical Certificates.

COFI Certificates...........................None.

Component Certificates......................Class 1-A-10 Certificates.

Components..................................For purposes of calculating distributions of principal and/or
                                            interest, the Component Certificates, if any, will be
                                            comprised of multiple payment components having the designations,
                                            Initial Component Balances or Notional Amounts, as applicable, and
                                            Pass-Through Rates set forth below:

                                                                           Initial
                                               Designation            Component Balance     Pass-Through Rate
                                               -----------            -----------------     -----------------
                                         Class 1-A-10-1 Component              $732,921         5.50%
                                         Class 1-A-10-2 Component              $967,079         5.50%

Delay Certificates..........................All interest-bearing Classes of Certificates other than the Non-Delay Certificates,
                                            if any.

ERISA-Restricted Certificates...............The Residual Certificates and Private Certificates; and any Certificate of a Class that
                                            ceases to satisfy the applicable rating requirement under an Underwriter's Exemption.

Floating Rate Certificates..................Class 2-A-1, Class 2-A-2 and Class 2-A-3 Certificates.

Group 1 Senior Certificates.................Class 1-A-1, Class 1-A-2, Class 1-A-3, Class 1-A-4, Class 1-A-5, Class
                                            1-A-6, Class 1-A-7, Class 1-A-8, Class 1-A-9, Class 1-A-10, Class A-R
                                            and Class PO Certificates.

Group 1 Certificates........................Group 1 Senior Certificates and the portions of the Subordinated Certificates
                                            related to Collateral Allocation Group 1.

Group 2 Senior Certificates.................Class 2-A-1, Class 2-A-2, Class 2-A-3 and Class 2-A-4 Certificates.

                                      10
<PAGE>

Group 2 Certificates........................Group 2 Senior Certificates and the portions of the Subordinated Certificates
                                            related to Collateral Allocation Group 2.

Inverse Floating Rate Certificates..........Class 2-A-3 Certificates.

LIBOR Certificates..........................Floating Rate Certificates and Inverse Floating Rate Certificates.

Non-Delay Certificates......................LIBOR Certificates.

Notional Amount Certificates................Class 2-A-3 and Class 2-A-4 Certificates.

Notional Amount Components..................None.

Offered Certificates........................All Classes of Certificates other than the Private Certificates.

Physical Certificates.......................Private Certificates and the Residual Certificates.

Planned Principal Classes...................None.

Principal Only Certificates.................Class PO Certificates.

Private Certificates........................Class B-3, Class B-4 and Class B-5 Certificates.

Rating Agencies.............................Fitch and Moody's.

Regular Certificates........................All Classes of Certificates, other than the Residual Certificates.

Residual Certificates.......................Class A-R Certificates.

Senior Certificate Group....................The Group 1 Senior Certificates or the Group 2 Senior Certificates, as applicable.

Senior Certificates.........................Class 1-A-1, Class 1-A-2, Class 1-A-3, Class 1-A-4, Class 1-A-5, Class 1-A-6, Class
                                            1-A-7, Class 1-A-8, Class 1-A-9, Class 1-A-10, Class 2-A-1, Class 2-A-2, Class
                                            2-A-3, Class 2-A-4, Class PO and Class A-R Certificates.

Subordinated Certificates.................. Class M, Class B-1, Class B-2, Class B-3, Class B-4 and Class B-5 Certificates.

Targeted Principal Classes .................None.

Underwriter ................................Bear, Stearns & Co. Inc.

</TABLE>

                                      11
<PAGE>

         With respect to any of the foregoing designations as to which the
corresponding reference is "None," all defined terms and provisions herein
relating solely to such designations shall be of no force or effect, and any
calculations herein incorporating references to such designations shall be
interpreted without reference to such designations and amounts. Defined terms
and provisions herein relating to statistical rating agencies not designated
above as Rating Agencies shall be of no force or effect.

                                      12
<PAGE>

                                   ARTICLE I
                                  DEFINITIONS

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

         Accretion Directed Certificates: As specified in the Preliminary
Statement.

         Accretion Direction Rule:  The Class 1-A-7 Accretion Direction Rule.

         Accrual Amount:  The Class 1-A-7 Accrual Amount.

         Accrual Certificates:  As specified in the Preliminary Statement.

         Accrual Components:  As specified in the Preliminary Statement.

         Accrual Termination Date:  The Class 1-A-7 Accrual Termination Date.

         Adjusted Mortgage Rate: As to each Mortgage Loan, and at any time, the
per annum rate equal to the Mortgage Rate less the Master Servicing Fee Rate.

         Adjusted Net Mortgage Rate: As to each Mortgage Loan, and at any time,
the per annum rate equal to the Mortgage Rate less the Master Servicing Fee
Rate. For purposes of determining whether any Substitute Mortgage Loan is a
Discount Mortgage Loan or a Non-Discount Mortgage Loan and for purposes of
calculating the applicable PO Percentage, the applicable Non-PO Percentage and
the Applicable Fraction with respect to each Mortgage Loan, each Substitute
Mortgage Loan shall be deemed to have an Adjusted Net Mortgage Rate equal to the
Adjusted Net Mortgage Rate of the Deleted Mortgage Loan for which it is
substituted.

         Advance: The payment required to be made by the Master Servicer with
respect to any Distribution Date pursuant to Section 4.01, the amount of any
such payment being equal to the aggregate of payments of principal and interest
(net of the Master Servicing Fee) on the Mortgage Loans that were due on the
related Due Date and not received by the Master Servicer as of the close of
business on the related Determination Date, together with an amount equivalent
to interest on each Mortgage Loan as to which the related Mortgaged Property is
a REO Property net of any net income from such REO Property, less the aggregate
amount of any such delinquent payments that the Master Servicer has determined
would constitute a Nonrecoverable Advance, if advanced.

         Aggregate Planned Balance: With respect to any group of Planned
Principal Classes or Components and any Distribution Date, the amount set forth
for such group for such Distribution Date in Schedule V hereto.

         Aggregate Targeted Balance: With respect to any group of Targeted
Principal Classes or Components and any Distribution Date, the amount set forth
for such group for such Distribution Date in Schedule V hereto.

                                      13
<PAGE>

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

         Allocable Share: As to any Distribution Date and any Mortgage Loan (i)
with respect to the Class PO Certificates, zero and (ii) with respect to each
other Class of Certificates, the product of (a) the lesser of (I) the ratio that
the related Required Coupon bears to the Adjusted Net Mortgage Rate of such
Mortgage Loan and (II) one, multiplied by (b) the ratio that the amount
calculated with respect to such Distribution Date (A) with respect to the Senior
Certificates of the related Senior Certificate Group (other than the Class PO
Certificates, if applicable), pursuant to clause (i) of the definition of Class
Optimal Interest Distribution Amount (without giving effect to any reduction of
such amount pursuant to Section 4.02(e)) and (B) with respect to the
Subordinated Certificates, pursuant to the definition of Assumed Interest Amount
or after the Senior Termination Date pursuant to clause (i) of the definition of
Class Optimal Interest Distribution Amount (without giving effect to any
reduction of such amount pursuant to Section 4.02(e)) bears to the amount
calculated with respect to such Distribution Date for each Class of Certificates
pursuant to clause (i) of the definition of Class Optimal Interest Distribution
Amount (without giving effect to any reduction of such amount pursuant to
Section 4.02(e)) or the definition of Assumed Interest Amount, as applicable.

         Amount Available for Senior Principal: As to any Distribution Date and
any Collateral Allocation Group, Available Funds for such Distribution Date and
Collateral Allocation Group, reduced by the aggregate amount distributable (or
allocable to a related Accrual Amount, if applicable) on such Distribution Date
in respect of interest on the related Senior Certificates pursuant to Section
4.02(a).

         Amount Held for Future Distribution: As to any Distribution Date and
the Mortgage Loans, the aggregate amount held in the Certificate Account at the
close of business on the related Determination Date on account of (i) Principal
Prepayments received after the related Prepayment Period and Liquidation
Proceeds and Subsequent Recoveries received in the month of such Distribution
Date and (ii) all Scheduled Payments due after the related Due Date.

         Applicable Credit Support Percentage:  As defined in Section 4.02(f).

         Applicable Fraction: With respect to any Mortgage Loan and a Collateral
Allocation Group, the percentage for such Mortgage Loan and Collateral
Allocation Group set forth on the Mortgage Loan Schedule and calculated as
follows:

<TABLE>
<CAPTION>

                                            Collateral Allocation                  Collateral Allocation
Net Mortgage Rate of the Mortgage Loan             Group 1                                Group 2
------------------------------------------  ----------------------------  --------------------------------------

<S>                                                <C>                                     <C>
less than or equal to 5.50%..........              100.00%                                 0.00%

                                                8.00% - Net                                        8.00% - Net
greater than 5.50%...................          Mortgage Rate                       100.00% -      Mortgage Rate
                                               -----------------                                ----------------
                                                    2.50%                                             2.50%

</TABLE>

                                      14
<PAGE>

         Appraised Value: With respect to any Mortgage Loan, the Appraised Value
of the related Mortgaged Property shall be: (i) with respect to a Mortgage Loan
other than a Refinancing Mortgage Loan, the lesser of (a) the value of the
Mortgaged Property based upon the appraisal made at the time of the origination
of such Mortgage Loan and (b) the sale price of the Mortgaged Property at the
time of the origination of such Mortgage Loan; (ii) with respect to a
Refinancing Mortgage Loan other than a Streamlined Documentation Mortgage Loan,
the value of the Mortgaged Property based upon the appraisal made-at the time of
the origination of such Refinancing Mortgage Loan; and (iii) with respect to a
Streamlined Documentation Mortgage Loan, (a) if the loan-to-value ratio with
respect to the Original Mortgage Loan at the time of the origination thereof was
80% or less and the loan amount of the new mortgage loan is $650,000 or less,
the value of the Mortgaged Property based upon the appraisal made at the time of
the origination of the Original Mortgage Loan and (b) if the loan-to-value ratio
with respect to the Original Mortgage Loan at the time of the origination
thereof was greater than 80% or the loan amount of the new loan being originated
is greater than $650,000, the value of the Mortgaged Property based upon the
appraisal (which may be a drive-by appraisal) made at the time of the
origination of such Streamlined Documentation Mortgage Loan.

         Assumed Balance: With respect to any Distribution Date, Class of
Subordinated Certificates and Collateral Allocation Group, each such Class' pro
rata interest (based on their respective Class Certificate Balances) in such
Collateral Allocation Group equal to the product of the Subordinated Percentage
for such Collateral Allocation Group as of such Distribution Date and the
aggregate of the applicable Non-PO Percentage of the Applicable Fraction of the
Stated Principal Balance of each Mortgage Loan related to that Collateral
Allocation Group as of the Due Date occurring in the month preceding the month
of such Distribution Date (after giving effect to Principal Prepayments received
in the Prepayment Period related to that Due Date).

         Assumed Interest Amount: With respect to any Distribution Date and
Class of Subordinated Certificates, one month's interest accrued during the
related Interest Accrual Period at the Pass-Through Rate for such Class on the
applicable Assumed Balance immediately prior to that Distribution Date.

         Auction Excess Proceeds: With respect to a Successful Auction, the
excess of the purchase price paid by the Winning Bidder over the Minimum Bid
Price.

         Available Funds: As to any Distribution Date and the Mortgage Loans
related to a Collateral Allocation Group, the sum of the related Applicable
Fractions of each of the following amounts: (a) the aggregate amount held in the
Certificate Account at the close of business on the related Determination Date,
including any Subsequent Recoveries, in respect of such Mortgage Loans, net of
the related Amount Held for Future Distribution and net of amounts permitted to
be withdrawn from the Certificate Account pursuant to clauses (i) - (viii),
inclusive, of Section 3.08(a) in respect of such Mortgage Loans and amounts
permitted to be withdrawn from the Distribution Account pursuant to clauses (i)
- (v), inclusive, of Section 3.08(b) in respect of such Mortgage Loans, (b) the
amount of the related Advance, and (c) in connection with Defective Mortgage
Loans, the aggregate of the Purchase Prices and Substitution Adjustment Amounts
deposited on the related Distribution Account Deposit Date; provided, however,
that following the Senior Termination Date, Available Funds with respect to the
Collateral Allocation Group relating to the remaining Senior Certificate Group
shall include the Available Funds from the

                                      15
<PAGE>

other Collateral Allocation Group after all distributions are made on the
Senior Certificates of the other Senior Certificate Group and on any
Distribution Date thereafter, Available Funds shall be calculated based upon
all the Mortgage Loans in the Mortgage Pool, as opposed to the Mortgage Loans
in the related Collateral Allocation Group.

         Bankruptcy Code: The United States Bankruptcy Reform Act of 1978, as
amended.

         Bid Date:  As specified in Section 9.04(b).

         Blanket Mortgage: The mortgage or mortgages encumbering the
Cooperative Property.

         Book-Entry Certificates:  As specified in the Preliminary Statement.

         Business Day: Any day other than (i) a Saturday or a Sunday, or (ii) a
day on which banking institutions in the City of New York, New York, or the
State of California or the city in which the Corporate Trust Office of the
Trustee is located are authorized or obligated by law or executive order to be
closed.

         Calculation Rate: For each Distribution Date, the product of (i) 10 and
(ii) the weighted average rate of the outstanding Class A and Class B Interests,
treating each Class A Interest as capped at zero or reduced by a fixed
percentage of 100% of the interest accruing on such Class A Interest.

         Certificate: Any one of the Certificates executed by the Trustee in
substantially the forms attached hereto as exhibits.

         Certificate Account: The separate Eligible Account or Accounts created
and maintained by the Master Servicer pursuant to Section 3.05 with a depository
institution in the name of the Master Servicer for the benefit of the Trustee on
behalf of Certificateholders and designated "Countrywide Home Loans Servicing
LP, in trust for the registered holders of CHL Mortgage Pass-Through Trust
2005-19, Mortgage Pass-Through Certificates Series 2005-19."

         Certificate Balance: With respect to any Certificate, other than a
Notional Amount Certificates, at any date, the maximum dollar amount of
principal to which the Holder thereof is then entitled hereunder, such amount
being equal to the Denomination thereof (A) plus any increase in the Certificate
Balance of such Certificate pursuant to Section 4.02 due to the receipt of
Subsequent Recoveries, (B) minus the sum of (i) all distributions of principal
previously made with respect thereto and (ii) all Realized Losses allocated
thereto and, in the case of any Subordinated Certificates, all other reductions
in Certificate Balance previously allocated thereto pursuant to Section 4.04 and
(C) in the case of any Class of Accrual Certificates, increased by the Accrual
Amount added to the Class Certificate Balance of such Class prior to such date.
The Notional Amount Certificates have no Certificate Balances.

         Certificate Group: The Group 1 Certificates or Group 2 Certificates,
as the context requires.

         Certificate Owner: With respect to a Book-Entry Certificate, the Person
who is the beneficial owner of such Book-Entry Certificate. For the purposes of
this Agreement, in order for

                                      16
<PAGE>

a Certificate Owner to enforce any of its rights hereunder, it shall
first have to provide evidence of its beneficial ownership interest in a
Certificate that is reasonably satisfactory to the Trustee, the Depositor,
and/or the Master Servicer, as applicable.

         Certificate Register: The register maintained pursuant to Section
5.02 hereof.

         Certificateholder or Holder: The person in whose name a Certificate is
registered in the Certificate Register, except that, solely for the purpose of
giving any consent pursuant to this Agreement, any Certificate registered in the
name of the Depositor or any affiliate of the Depositor shall be deemed not to
be Outstanding and the Percentage Interest evidenced thereby shall not be taken
into account in determining whether the requisite amount of Percentage Interests
necessary to effect such consent has been obtained; provided, however, that if
any such Person (including the Depositor) owns 100% of the Percentage Interests
evidenced by a Class of Certificates, such Certificates shall be deemed to be
Outstanding for purposes of any provision hereof (other than the second sentence
of Section 10.01 hereof) that requires the consent of the Holders of
Certificates of a particular Class as a condition to the taking of any action
hereunder. The Trustee is entitled to rely conclusively on a certification of
the Depositor or any affiliate of the Depositor in determining which
Certificates are registered in the name of an affiliate of the Depositor.

         Class: All Certificates bearing the same Class designation as set
forth in the Preliminary Statement.

         Class 1-A-7 Accretion Direction Rule: On each Distribution Date up to
and including the Class 1-A-7 Accrual Termination Date, the Class 1-A-7 Accrual
Amount will be distributed as principal first concurrently, to the Class 1-A-1
and Class 1-A-6 Certificates, pro rata, until their respective Class Certificate
Balances are reduced to zero, and then to the Class 1-A-7 Certificates.

         Class 1-A-7 Accrual Amount: With respect to the Class 1-A-7
Certificates and any Distribution Date prior to the Class 1-A-7 Accrual
Termination Date, the amount allocable to interest on such Class of Certificates
with respect to such Distribution Date pursuant to Section 4.02(a)(1)(ii).

         Class 1-A-7 Accrual Termination Date: With respect to the Class 1-A-7
Certificates, the earlier of the Senior Credit Support Depletion Date and the
Distribution Date on which the Class Certificate Balances of the Class 1-A-1 and
Class 1-A-6 Certificates are reduced to zero.

         Class 1-A-8 Priority Amount: As to any Distribution Date, the amount
equal to the sum of (i) the product of (A) the Scheduled Principal Distribution
Amount for Collateral Allocation Group 1 and Collateral Allocation Group 2, (B)
the Shift Percentage and (C) the Class 1-A-8 Priority Percentage and (ii) the
product of (A) the Unscheduled Principal Distribution Amount for Collateral
Allocation Group 1 and Collateral Allocation Group 2, (B) the Shift Percentage
and (C) the Class 1-A-8 Priority Percentage.

         Class 1-A-8 Priority Percentage: As to any Distribution Date, the
percentage equivalent of a fraction, the numerator of which is the sum of (x)
the Class Certificate Balance of the Class 1-A-8 Certificates immediately prior
to such Distribution Date and (y) $20,000,000, and the denominator of which is
the Non-PO Pool Balance for Collateral Allocation Group 1 and

                                      17
<PAGE>

Collateral Allocation Group 2 as of the Due Date in the month preceding the
month of such Distribution Date (after giving effect to principal prepayments
on the Mortgage Loans received in the Prepayment Period related to the prior
Due Date).

         Class 1-A-9 and Class 1-A-10 Priority Amount: As to any Distribution
Date, the amount equal to the sum of (i) the product of (A) the Scheduled
Principal Distribution Amount for Collateral Allocation Group 1 and Collateral
Allocation Group 2, (B) the Shift Percentage and (C) the Class 1-A-9 and Class
1-A-10 Priority Percentage and (ii) the product of (A) the Unscheduled Principal
Distribution Amount for Collateral Allocation Group 1 and Collateral Allocation
Group 2, (B) the Shift Percentage and (C) the Class 1-A-9 and Class 1-A-10
Priority Percentage.

         Class 1-A-9 and Class 1-A-10 Priority Percentage: As to any
Distribution Date, the percentage equivalent of a fraction, the numerator of
which is the aggregate Class Certificate Balance of the Class 1-A-9 and Class
1-A-10 Certificates immediately prior to such Distribution Date, and the
denominator of which is the Non-PO Pool Balance for Collateral Allocation Group
1 and Collateral Allocation Group 2 as of the Due Date in the month preceding
the month of such Distribution Date (after giving effect to principal
prepayments on the Mortgage Loans received in the Prepayment Period related to
the prior Due Date).

         Class C Distribution Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.05 in the name of the Trustee
for the benefit of the Certificateholders and designated "The Bank of New York
in trust for registered holders of CHL Mortgage Pass-Through Trust 2005-19
Mortgage Pass-Through Certificates, Series 2005-19." Funds in the Class C
Distribution Account shall be held in trust for the Class C Certificateholders
for the uses and purposes set forth in this Agreement.

         Class Certificate Balance: With respect to any Class and as to any date
of determination, the aggregate of the Certificate Balances of all Certificates
of such Class as of such date.

         Class Interest Shortfall: As to any Distribution Date and Class, the
amount by which the amount described in clause (i) of the definition of Class
Optimal Interest Distribution Amount for such Class exceeds the amount of
interest actually distributed on such Class on such Distribution Date pursuant
to such clause (i).

         Class Optimal Interest Distribution Amount: With respect to any
Distribution Date and interest bearing Class or Component, the sum of (i) one
month's interest accrued during the related Interest Accrual Period at the
Pass-Through Rate for such Class on the related Class Certificate Balance,
Component Balance, Notional Amount or Component Notional Amount, as applicable,
subject to reduction as provided in Section 4.02(e) and (ii) any Class Unpaid
Interest Amounts for such Class or Component.

         Class PO Deferred Amount: As to any Distribution Date, the aggregate of
the applicable PO Percentage of each Realized Loss on a Discount Mortgage Loan
to be allocated to the Class PO Certificates on such Distribution Date on or
prior to the Senior Credit Support Depletion Date or previously allocated to the
Class PO Certificates and not yet paid to the Holders of the Class PO
Certificates.

                                      18
<PAGE>

         Class Subordination Percentage: With respect to any Distribution Date
and each Class of Subordinated Certificates, the quotient (expressed as a
percentage) of (a) the Class Certificate Balance of such Class of Certificates
immediately prior to such Distribution Date divided by (b) the aggregate of the
Class Certificate Balances immediately prior to such Distribution Date of all
Classes of Certificates.

         Class Unpaid Interest Amounts: As to any Distribution Date and Class of
interest bearing Certificates, the amount by which the aggregate Class Interest
Shortfalls for such Class on prior Distribution Dates exceeds the amount
distributed on such Class on prior Distribution Dates pursuant to clause (ii) of
the definition of Class Optimal Interest Distribution Amount.

         Closing Date:  July 28, 2005.

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

         COFI: The Monthly Weighted Average Cost of Funds Index for the
Eleventh District Savings Institutions published by the Federal Home Loan Bank
of San Francisco.

         COFI Certificates: As specified in the Preliminary Statement.

         Collateral Allocation Group: Either of Collateral Allocation Group 1
or Collateral Allocation Group 2, as applicable.

         Collateral Allocation Group 1: The respective Applicable Fractions of
the Mortgage Loans so identified on the Mortgage Loan Schedule.

         Collateral Allocation Group 1 Mortgage Loans: The Mortgage Loans or
Applicable Fractions thereof in Collateral Allocation Group 1.

         Collateral Allocation Group 2: The respective Applicable Fractions of
the Mortgage Loans so identified on the Mortgage Loan Schedule.

         Collateral Allocation Group 2 Mortgage Loans: The Mortgage Loans or
Applicable Fractions thereof in Collateral Allocation Group 2.

         Collateral Allocation Group Principal Balance: As to any Distribution
Date and Collateral Allocation Group, the aggregate of the Applicable Fractions
of the Stated Principal Balances of the Mortgage Loans related to that
Collateral Allocation Group as of the Due Date in the month preceding the month
of the Distribution Date, after giving effect to Principal Prepayments received
in the Prepayment Period related to such Due Date.

         Compensating Interest: As to any Distribution Date, an amount equal to
the product of one-twelfth of 0.125% and the aggregate Stated Principal Balance
of the Mortgage Loans as of the Due Date in the prior calendar month.

         Component:  As specified in the Preliminary Statement.

                                      19
<PAGE>

         Component Balance: With respect to any Component and any Distribution
Date, the Initial Component Balance thereof on the Closing Date, (A) plus any
increase in the Component Balance of such Component pursuant to Section 4.02 due
to the receipt of Subsequent Recoveries, (B) minus the sum of all amounts
applied in reduction of the principal balance of such Component and Realized
Losses allocated thereto on previous Distribution Dates.

         Component Certificates:  As specified in the Preliminary Statement.

         Component Notional Amount:  Not applicable.

         Coop Shares: Shares issued by a Cooperative Corporation.

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

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

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

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

         Corporate Trust Office: The designated office of the Trustee in the
State of New York 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 Agreement is located at 101 Barclay Street, 8W, New
York, New York 10286 (Attn: Mortgage-Backed Securities Group, CWMBS, Inc. Series
2005-19, facsimile no. (212) 815-3986), and which is the address to which
notices to and correspondence with the Trustee should be directed.

         Countrywide: Countrywide Home Loans, Inc., a New York corporation and
its successors and assigns.

         Countrywide Servicing: Countrywide Home Loans Servicing LP, a Texas
limited partnership, and its successors and assigns.

         Cross-Over Situation: For any Distribution Date and for each Collateral
Allocation Group (after taking into account principal distributions on such
Distribution Date) a situation in which the Class A and Class B Interests
corresponding to any Collateral Allocation Group are in the aggregate less than
1% of the Subordinate Portion of the Collateral Allocation Group to which they
correspond.

         Cut-off Date: With respect to any Mortgage Loan, the later of (i) the
date of origination of such Mortgage Loan and (ii) July 1, 2005.

         Cut-off Date Pool Principal Balance:  $400,523,864.34.

                                      20
<PAGE>

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

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

         Deceased Holder:  Not applicable.

         Defective Mortgage Loan: Any Mortgage Loan which is required to be
repurchased pursuant to Section 2.02 or 2.03.

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

         Definitive Certificates: Any Certificate evidenced by a Physical
Certificate and any Certificate issued in lieu of a Book-Entry Certificate
pursuant to Section 5.02(e).

         Delay Certificates: As specified in the Preliminary Statement.

         Deleted Mortgage Loan:  As defined in Section 2.03(c) hereof.

         Denomination: With respect to each Certificate, the amount set forth on
the face thereof as the "Initial Certificate Balance of this Certificate" or the
"Initial Notional Amount of this Certificate" or, if neither of the foregoing,
the Percentage Interest appearing on the face thereof.

         Depositor: CWMBS, Inc., a Delaware corporation, or its successor in
interest.

         Depository: The initial Depository shall be The Depository Trust
Company, the nominee of which is CEDE & Co., as the registered Holder of the
Book-Entry Certificates. 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.

         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.

         Determination Date: As to any Distribution Date, the 15th day of the
month in which such Distribution Date occurs or, if such 15th day is not a
Business Day, the immediately preceding Business Day.

         Discount Mortgage Loan: Any Mortgage Loan with an Adjusted Net Mortgage
Rate that is less than the Required Coupon for Collateral Allocation Group 1.

                                      21
<PAGE>

         Distribution Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.05 in the name of the Trustee
for the benefit of the Certificateholders and designated "The Bank of New York
in trust for registered holders of CHL Mortgage Pass-Through Trust 2005-19
Mortgage Pass-Through Certificates, Series 2005-19." Funds in the Distribution
Account shall be held in trust for the Certificateholders for the uses and
purposes set forth in this Agreement.

         Distribution Account Deposit Date: As to any Distribution Date, 12:30
p.m. Pacific time on the Business Day immediately preceding such Distribution
Date.

         Distribution Date: The 25th day of each calendar month after the
initial issuance of the Certificates, or if such 25th day is not a Business Day,
the next succeeding Business Day, commencing in August 2005.

         Due Date: With respect to any Distribution Date, the first day of the
calendar month in which that Distribution Date occurs.

         Due Period: With respect to a Mortgage Loan, the period beginning on
the second day of the calendar month preceding the month in which such
Distribution Date occurs and ending on the first day of the calendar month in
which such Distribution Date occurs.

         Eligible Account: Any of (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company, the
short-term unsecured debt obligations of which (or, in the case of a depository
institution or trust company that is the principal subsidiary of a holding
company, the debt obligations of such holding company) have the highest
short-term ratings of Moody's or Fitch and one of the two highest short-term
ratings of S&P, if S&P is a Rating Agency, at the time any amounts are held on
deposit therein, or (ii) an account or accounts in a depository institution or
trust company in which such accounts are insured by the FDIC (to the limits
established by the FDIC) and the uninsured deposits in which accounts are
otherwise secured such that, as evidenced by an Opinion of Counsel delivered to
the Trustee and to each Rating Agency, the Certificateholders have a claim with
respect to the funds in such account or a perfected first priority 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 or trust company in which
such account is maintained, or (iii) a trust account or accounts maintained with
(a) the trust department of a federal or state chartered depository institution
or (b) a trust company, acting in its fiduciary capacity or (iv) any other
account acceptable to each Rating Agency. Eligible Accounts may bear interest,
and may include, if otherwise qualified under this definition, accounts
maintained with the Trustee.

         Eligible Repurchase Month:  As defined in Section 3.11 hereof.

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

         ERISA-Qualifying Underwriting: A best efforts or firm commitment
underwriting or private placement that meets the requirements of an
Underwriter's Exemption.

         ERISA-Restricted Certificate: As specified in the Preliminary
Statement.

                                      22
<PAGE>

         Escrow Account: The Eligible Account or Accounts established and
maintained pursuant to Section 3.06(a) hereof.

         Event of Default:  As defined in Section 7.01 hereof.

         Excess Proceeds: With respect to any Liquidated Mortgage Loan, the
amount, if any, by which the sum of any Liquidation Proceeds received with
respect to such Mortgage Loan during the calendar month in which such Mortgage
Loan became a Liquidated Mortgage Loan plus any Subsequent Recoveries received
with respect to such Mortgage Loan, net of any amounts previously reimbursed to
the Master Servicer as Nonrecoverable Advance(s) with respect to such Mortgage
Loan pursuant to Section 3.08(a)(iii), exceeds (i) the unpaid principal balance
of such Liquidated Mortgage Loan as of the Due Date in the month in which such
Mortgage Loan became a Liquidated Mortgage Loan plus (ii) accrued interest at
the Mortgage Rate from the Due Date as to which interest was last paid or
advanced (and not reimbursed) to Certificateholders up to the Due Date
applicable to the Distribution Date immediately following the calendar month
during which such liquidation occurred.

         Expense Rate:  As to each Mortgage Loan, the Master Servicing Fee Rate.

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

         FHLMC: The Federal Home Loan Mortgage Corporation, 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.

         Final Certification:  As defined in Section 2.02(a) hereof.

         FIRREA: The Financial Institutions Reform, Recovery, and Enforcement
Act of 1989.

         Fitch: Fitch, Inc., or any successor thereto. If Fitch is designated
as a Rating Agency in the Preliminary Statement, for purposes of Section
10.05(b) the address for notices to Fitch shall be Fitch, Inc., One State
Street Plaza, New York, New York 10004, Attention: Residential Mortgage
Surveillance Group, or such other address as Fitch may hereafter furnish to
the Depositor and the Master Servicer.

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

         Group 1 Senior Certificates: As specified in the Preliminary
Statement.

         Group 2 Senior Certificates: As specified in the Preliminary
Statement.

         IO REMIC: As described in the Preliminary Statement.

         IO REMIC Interest: Any one of the IO REMIC Interests or the IO-A-R
Interest.

                                      23
<PAGE>

         IO REMIC Regular Interest: Any one of the "regular interests" in the
IO REMIC described in the Preliminary Statement.

         Index: With respect to any Interest Accrual Period for the COFI
Certificates, if any, the then-applicable index used by the Trustee pursuant to
Section 4.07 to determine the applicable Pass-Through Rate for such Interest
Accrual Period for the COFI Certificates.

         Indirect Participant: A broker, dealer, bank or other financial
institution or other Person that clears through or maintains a custodial
relationship with a Depository Participant.

         Initial Certification:  As defined in Section 2.02(a) hereof.

         Initial Component Balance:  As specified in the Preliminary Statement.

         Insurance Policy: With respect to any Mortgage Loan included in the
Trust Fund, any insurance policy, including all riders and endorsements thereto
in effect, including any replacement policy or policies for any Insurance
Policies.

         Insurance Proceeds: Proceeds paid by an insurer pursuant to any
Insurance Policy, in each case other than any amount included in such Insurance
Proceeds in respect of Insured Expenses.

         Insured Expenses: Expenses covered by an Insurance Policy or any other
insurance policy with respect to the Mortgage Loans.

         Interest Accrual Period: With respect to each Class of Delay
Certificates, its corresponding REMIC Regular Interest(s) and any Distribution
Date, the calendar month prior to the month of such Distribution Date. With
respect to any Class of Non-Delay Certificates, its corresponding REMIC Regular
Interest(s) and any Distribution Date, the one month period commencing on the
25th day of the month preceding the month in which such Distribution Date occurs
and ending on the 24th day of the month in which such Distribution Date occurs.

         Interest Determination Date: With respect to (a) any Interest Accrual
Period for any LIBOR Certificates and (b) any Interest Accrual Period for the
COFI Certificates for which the applicable Index is LIBOR, the second Business
Day prior to the first day of such Interest Accrual Period.

         Latest Possible Maturity Date: The Distribution Date following the
third anniversary of the scheduled maturity date of the Mortgage Loan having the
latest scheduled maturity date as of the Cut-off Date.

         Lender PMI Mortgage Loan: Certain Mortgage Loans as to which the lender
(rather than the borrower) acquires the Primary Insurance Policy and charges the
related borrower an interest premium.

         LIBOR: The London interbank offered rate for one-month United States
dollar deposits calculated in the manner described in Section 4.08.

                                      24
<PAGE>

         LIBOR Certificates:  As specified in the Preliminary Statement.

         Liquidated Mortgage Loan: With respect to any Distribution Date, a
defaulted Mortgage Loan (including any REO Property) which was liquidated in the
calendar month preceding the month of such Distribution Date and as to which the
Master Servicer has determined (in accordance with this Agreement) that it has
received all amounts it expects to receive in connection with the liquidation of
such Mortgage Loan, including the final disposition of an REO Property.

         Liquidation Proceeds: Amounts, including Insurance Proceeds, received
in connection with the partial or complete liquidation of defaulted Mortgage
Loans, whether through trustee's sale, foreclosure sale or otherwise or amounts
received in connection with any condemnation or partial release of a Mortgaged
Property and any other proceeds received in connection with an REO Property,
less the sum of related unreimbursed Master Servicing Fees, Servicing Advances
and Advances.

         Living Holders:  Not applicable.

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

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

         Maintenance: With respect to any Cooperative Unit, the rent paid by the
Mortgagor to the Cooperative Corporation pursuant to the Proprietary Lease.

         Majority in Interest: As to any Class of Regular Certificates, the
Holders of Certificates of such Class evidencing, in the aggregate, at least 51%
of the Percentage Interests evidenced by all Certificates of such Class.

         Master REMIC: As described in the Preliminary Statement.

         Master Servicer: Countrywide Home Loans Servicing LP, a Texas limited
partnership, and its successors and assigns, in its capacity as master
servicer hereunder.

         Master Servicer Advance Date: As to any Distribution Date, 12:30 p.m.
Pacific time on the Business Day immediately preceding such Distribution Date.

         Master Servicer Remittance Date: As to any Distribution Date, the 18th
day of the calendar month in which such Distribution Date occurs, or if such
18th day is not a Business Day, the next succeeding Business Day.

         Master Servicing Fee: As to each Mortgage Loan and any Distribution
Date, an amount payable out of each full payment of interest received on such
Mortgage Loan and equal to one-twelfth of the Master Servicing Fee Rate
multiplied by the Stated Principal Balance of such

                                      25
<PAGE>

Mortgage Loan as of the Due Date in the month preceding the month of
such Distribution Date, subject to reduction as provided in Section 3.14.

         Master Servicing Fee Rate: With respect to each Mortgage Loan, 0.20%
per annum.

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

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

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

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

         Minimum Bid Price: An amount equal to (1) the aggregate Class
Certificate Balance of the Certificates, (2) interest accrued and unpaid on the
Certificates and (3) any unreimbursed Advances, Servicing Advances, fees and
expenses of the Master Servicer and the Trustee (including any expenses related
to any auctions).

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

         Monthly Statement: The statement delivered to the Certificateholders
pursuant to Section 4.06.

         Moody's: Moody's Investors Service, Inc., or any successor thereto.
If Moody's is designated as a Rating Agency in the Preliminary Statement, for
purposes of Section 10.05(b) the address for notices to Moody's shall be
Moody's Investors Service, Inc., 99 Church Street, New York, New York 10007,
Attention: Residential Pass-Through Monitoring, or such other address as
Moody's may hereafter furnish to the Depositor or the Master Servicer.

         Mortgage: The mortgage, deed of trust or other instrument creating a
first 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 hereof
pertaining to a particular Mortgage Loan and any additional documents delivered
to the Trustee to be added to the Mortgage File pursuant to this Agreement.

         Mortgage Loan Schedule: The list of Mortgage Loans (as from time to
time amended by the Master Servicer to reflect the addition of Substitute
Mortgage Loans and the deletion of Deleted Mortgage Loans pursuant to the
provisions of this Agreement) transferred to the Trustee as part of the Trust
Fund and from time to time subject to this Agreement, attached hereto as
Schedule I, setting forth the following information with respect to each
Mortgage Loan:

              (i)     the loan number;

                                      26
<PAGE>

              (ii)    the Mortgagor's name and the street address of the
              Mortgaged Property, including the zip code;

              (iii)   the maturity date;

              (iv)    the original principal balance;

              (v)     the Cut-off Date Principal Balance;

              (vi)    the first payment date of the Mortgage Loan;

              (vii)   the Scheduled Payment in effect as of the Cut-off Date;

              (viii)  the Loan-to-Value Ratio at origination;

              (ix)    a code indicating whether the residential dwelling at
              the time of origination was represented to be
              owner-occupied;

              (x)     a code indicating whether the residential dwelling is
              either (a) a detached single family dwelling (b) a
              dwelling in a de minimis PUD, (c) a condominium unit or
              PUD (other than a de minimis PUD), (d) a two- to
              four-unit residential property or (e) a Cooperative
              Unit;

              (xi)    the Mortgage Rate;

              (xii)   a code indicating whether the Mortgage Loan is a Lender
              PMI Mortgage Loan and, in the case of any Lender PMI
              Mortgage Loan, a percentage representing the amount of
              the related interest premium charged to the borrower;

              (xiii)  the purpose for the Mortgage Loan;

              (xiv)   the type of documentation program pursuant to which the
              Mortgage Loan was originated;

              (xv)    a code indicating whether the Mortgage Loan is a MERS
              Mortgage Loan; and

              (xvi)   a code identifying the related Collateral Allocation
              Group or Collateral Allocation Groups for such Mortgage
              Loan and the Applicable Fraction(s) of such Mortgage
              Loan in the applicable Collateral Allocation Group(s).

         Mortgage Loans: Such of the mortgage loans as from time to time are
transferred and assigned to the Trustee pursuant to the provisions hereof and
that are held as a part of the Trust Fund (including any REO Property), the
mortgage loans so held being identified in the Mortgage Loan Schedule,
notwithstanding foreclosure or other acquisition of title of the related
Mortgaged Property.

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

                                      27
<PAGE>

         Mortgage Pool: The aggregate of the Mortgage Loans identified in the
Mortgage Loan Schedule.

         Mortgage Rate: The annual rate of interest borne by a Mortgage Note
from time to time, net of any interest premium charged by the mortgagee to
obtain or maintain any Primary Insurance Policy.

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

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

         National Cost of Funds Index: The National Monthly Median Cost of
Funds Ratio to SAIF-Insured Institutions published by the Office of Thrift
Supervision.

         Net Prepayment Interest Shortfalls: As to any Distribution Date, the
amount by which the aggregate of Prepayment Interest Shortfalls during the
related Prepayment Period exceeds an amount equal to the Compensating Interest
and Distribution Date.

         Non-Delay Certificates:  As specified in the Preliminary Statement.

         Non-Discount Mortgage Loan: Any Mortgage Loan with an Adjusted Net
Mortgage Rate that is greater than or equal to the Required Coupon for
Collateral Allocation Group 1.

         Non-PO Formula Principal Amount: As to any Distribution Date and
Collateral Allocation Group, the sum of (i) the applicable Non-PO Percentage of
the Applicable Fraction of (a) the principal portion of each Scheduled Payment
(without giving effect to any reductions thereof caused by any Debt Service
Reductions or Deficient Valuations) due on each Mortgage Loan on the related Due
Date, (b) the Stated Principal Balance of each Mortgage Loan that was
repurchased by the Seller or purchased by the Master Servicer pursuant to this
Agreement as of such Distribution Date, (c) the Substitution Adjustment Amount
in connection with any Deleted Mortgage Loan received with respect to such
Distribution Date, (d) any Insurance Proceeds or Liquidation Proceeds allocable
to recoveries of principal of Mortgage Loans that are not yet Liquidated
Mortgage Loans received during the calendar month preceding the month of such
Distribution Date, (e) with respect to each Mortgage Loan that became a
Liquidated Mortgage Loan during the calendar month preceding the month of such
Distribution Date, the amount of the Liquidation Proceeds allocable to principal
received during the calendar month preceding the month of such Distribution Date
with respect to such Mortgage Loan and (f) all Principal Prepayments received
during the related Prepayment Period, and (ii) (A) any Subsequent Recoveries
received on the Mortgage Loans during the calendar month preceding the month of
such Distribution Date, or (B) with respect to Subsequent Recoveries
attributable to a Discount Mortgage Loan which incurred a Realized Loss after
the Senior Credit Support Depletion Date, the Non-PO Percentage of any
Subsequent Recoveries received during the calendar month preceding the month of
such Distribution Date.

         Non-PO Percentage: As to any Discount Mortgage Loan, a fraction
(expressed as a percentage) the numerator of which is the Adjusted Net Mortgage
Rate of such Discount

                                      28
<PAGE>

Mortgage Loan and the denominator of which is the Required Coupon for
Collateral Allocation Group 1. As to any Non-Discount Mortgage Loan, 100%.

         Non-PO Pool Balance: As to any Collateral Allocation Group and Due
Date, the amount equal to the excess, if any, of (i) the aggregate of the
Applicable Fractions of the Stated Principal Balance of all Mortgage Loans
related to that Collateral Allocation Group over (ii) in the case of Collateral
Allocation Group 1, the sum of the PO Percentage of the Stated Principal Balance
of each Discount Mortgage Loan.

         Nonrecoverable Advance: Any portion of an Advance previously made or
proposed to be made by the Master Servicer that, in the good faith judgment of
the Master Servicer, will not be ultimately recoverable by the Master Servicer
from the related Mortgagor, related Liquidation Proceeds, Subsequent Recoveries
or otherwise.

         Notice of Final Distribution: The notice to be provided pursuant to
Section 9.02 to the effect that final distribution on any of the Certificates
shall be made only upon presentation and surrender thereof.

         Notional Amount: For Class 2-A-3 and Class 2-A-4 Certificates for any
Distribution Date, an amount equal to the aggregate Class Certificate Balance of
the Class 2-A-1 and Class 2-A-2 Certificates immediately prior to such
Distribution Date.

         Notional Amount Certificates: As specified in the Preliminary
Statement.

         Offered Certificates:  As specified in the Preliminary Statement.

         Officer's Certificate: A certificate (i) in the case of the Depositor,
signed by the Chairman of the Board, the Vice Chairman of the Board, the
President, a Managing Director, a Vice President (however denominated), an
Assistant Vice President, the Treasurer, the Secretary, or one of the Assistant
Treasurers or Assistant Secretaries of the Depositor, (ii) in the case of the
Master Servicer, signed by the President, an Executive Vice President, a Vice
President, an Assistant Vice President, the Treasurer, or one of the Assistant
Treasurers or Assistant Secretaries of Countrywide GP, Inc., its general partner
or (iii) if provided for in this Agreement, signed by a Servicing Officer, as
the case may be, and delivered to the Depositor and the Trustee, as the case may
be, as required by this Agreement.

         Opinion of Counsel: A written opinion of counsel, who may be counsel
for the Depositor or the Master Servicer, including, in-house counsel,
reasonably acceptable to the Trustee; provided, however, that with respect to
the interpretation or application of the REMIC Provisions, such counsel must (i)
in fact be independent of the Depositor and the Master Servicer, (ii) not have
any direct financial interest in the Depositor or the Master Servicer or in any
affiliate of either, and (iii) not be connected with the Depositor or the Master
Servicer as an officer, employee, promoter, underwriter, trustee, partner,
director or person performing similar functions.

         Optional Termination: The termination of the trust created hereunder in
connection with the purchase of the Mortgage Loans pursuant to Section 9.01(a)
hereof.

                                      29
<PAGE>

         Original Applicable Credit Support Percentage: With respect to each of
the following Classes of Subordinated Certificates, the corresponding percentage
described below, as of the Closing Date:

                  Class M...................3.95%
                  Class B-1.................1.40%
                  Class B-2.................0.80%
                  Class B-3.................0.50%
                  Class B-4.................0.30%
                  Class B-5.................0.15%

         Original Mortgage Loan: The mortgage loan refinanced in connection
with the origination of a Refinancing Mortgage Loan.

         Original Subordinate Principal Balance: On or prior to the Senior
Termination Date, the Subordinated Percentage for a Collateral Allocation Group
of the aggregate of the applicable Non-PO Percentage of the Applicable Fractions
of the Stated Principal Balances of the Mortgage Loans related to such
Collateral Allocation Group, in each case as of the Cut-off Date; or if such
date is after the Senior Termination Date, the aggregate of the Class
Certificate Balances of the Subordinated Certificates as of the Closing Date.

         OTS:  The Office of Thrift Supervision.

         Outside Reference Date: As to any Interest Accrual Period for the
COFI Certificates, the close of business on the tenth day thereof.

         Outstanding: With respect to the Certificates as of any date of
determination, all Certificates theretofore executed and authenticated under
this Agreement except:

                  (i) Certificates theretofore canceled by the Trustee or
                  delivered to the Trustee for cancellation; and

                  (ii) Certificates in exchange for which or in lieu of which
                  other Certificates have been executed and delivered by the
                  Trustee pursuant to this Agreement.

         Outstanding Mortgage Loan: As of any Due Date, a Mortgage Loan with a
Stated Principal Balance greater than zero, which was not the subject of a
Principal Prepayment in Full as of the last day of the Prepayment Period related
to such Due Date and which did not become a Liquidated Mortgage Loan prior to
such Due Date.

         Overcollateralized Group:  As defined in Section 4.05.

         Ownership Interest: As to any Residual Certificate, any ownership
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.

         Pass-Through Rate: For any interest bearing Class of Certificates or
Component, the per annum rate set forth or calculated in the manner described in
the Preliminary Statement.

                                      30
<PAGE>

         Percentage Interest: As to any Certificate, the percentage interest
evidenced thereby in distributions required to be made on the related Class,
such percentage interest being set forth on the face thereof or equal to the
percentage obtained by dividing the Denomination of such Certificate by the
aggregate of the Denominations of all Certificates of the same Class.

         Permitted Investments: At any time, any one or more of the following
obligations and securities:

                  (i) obligations of the United States or any agency thereof,
                  provided such obligations are backed by the full faith and
                  credit of the United States;

                  (ii) general obligations of or obligations guaranteed by any
                  state of the United States or the District of Columbia
                  receiving the highest long-term debt rating of each Rating
                  Agency, or such lower rating as will not result in the
                  downgrading or withdrawal of the ratings then assigned to the
                  Certificates by each Rating Agency;

                  (iii) commercial or finance company paper which is then
                  receiving the highest commercial or finance company paper
                  rating of each Rating Agency, or such lower rating as will not
                  result in the downgrading or withdrawal of the ratings then
                  assigned to the Certificates by each Rating Agency;

                  (iv) certificates of deposit, demand or time deposits, or
                  bankers' acceptances issued by any depository institution or
                  trust company incorporated under the laws of the United States
                  or of any state thereof and subject to supervision and
                  examination by federal and/or state banking authorities,
                  provided that the commercial paper and/or long term unsecured
                  debt obligations of such depository institution or trust
                  company (or in the case of the principal depository
                  institution in a holding company system, the commercial paper
                  or long-term unsecured debt obligations of such holding
                  company, but only if Moody's is not a Rating Agency) are then
                  rated one of the two highest long-term and the highest
                  short-term ratings of each Rating Agency for such securities,
                  or such lower ratings as will not result in the downgrading or
                  withdrawal of the rating then assigned to the Certificates by
                  either Rating Agency;

                  (v) repurchase obligations with respect to any security
                  described in clauses (i) and (ii) above, in either case
                  entered into with a depository institution or trust company
                  (acting as principal) described in clause (iv) above;

                  (vi) units of a taxable money-market portfolio having the
                  highest rating assigned by each Rating Agency (except if Fitch
                  is a Rating Agency and has not rated the portfolio, the
                  highest rating assigned by Moody's) and restricted to
                  obligations issued or guaranteed by the United States of
                  America or entities whose obligations are backed by the full
                  faith and credit of the United States of America and
                  repurchase agreements collateralized by such obligations; and

                  (vii) such other relatively risk free investments bearing
                  interest or sold at a discount acceptable to each Rating
                  Agency as will not result in the downgrading

                                      31
<PAGE>

                  or withdrawal of the rating then assigned to the
                  Certificates by either Rating Agency, as evidenced by a
                  signed writing delivered by each Rating Agency

provided, that no such instrument shall be a Permitted Investment if such
instrument evidences the right to receive interest only payments with respect to
the obligations underlying such instrument.

         Permitted Transferee: Any person other than (i) the United States, any
State or political subdivision thereof, or any agency or instrumentality of any
of the foregoing, (ii) a foreign government, International Organization or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in section 521 of the Code)
which is exempt from tax imposed by Chapter 1 of the Code (including the tax
imposed by section 511 of the Code on unrelated business taxable income) on any
excess inclusions (as defined in section 860E(c)(1) of the Code) with respect to
any Residual Certificate, (iv) rural electric and telephone cooperatives
described in section 1381(a)(2)(C) of the Code, (v) an "electing large
partnership" as defined in Section 775 of the Code, (vi) a Person that is not a
citizen or resident of the United States, a corporation, partnership, or other
entity created or organized in or under the laws of the United States, any state
thereof or the District of Columbia, or an estate or trust whose income from
sources without the United States is includible in gross income for United
States federal income tax purposes regardless of its connection with the conduct
of a trade or business within the United States or a trust if a court within the
United States is able to exercise primary supervision over the administration of
the trust and one or more United States persons have the authority to control
all substantial decisions of the trust unless such Person has furnished the
transferor and the Trustee with a duly completed Internal Revenue Service Form
W-8ECI or any applicable successor form, and (vii) any other Person so
designated by the Depositor based upon an Opinion of Counsel that the Transfer
of an Ownership Interest in a Residual Certificate to such Person may cause any
REMIC hereunder to fail to qualify as a REMIC at any time that the Certificates
are outstanding. The terms "United States," "State" and "International
Organization" shall have the meanings set forth in section 7701 of the Code or
successor provisions. A corporation will not be treated as an instrumentality of
the United States or of any State or political subdivision thereof for these
purposes if all of its activities are subject to tax and, with the exception of
the Federal Home Loan Mortgage Corporation, a majority of its board of directors
is not selected by such government unit.

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

         Physical Certificate:  As specified in the Preliminary Statement.

         Planned Balance: With respect to any group of Planned Principal Classes
or Components in the aggregate and any Distribution Date appearing in Schedule V
hereto, the Aggregate Planned Balance for such group and Distribution Date. With
respect to any other Planned Principal Class or Component and any Distribution
Date appearing in Schedule V hereto, the applicable amount appearing opposite
such Distribution Date for such Class or Component.

         Planned Principal Classes:  As specified in the Preliminary Statement.

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<PAGE>

         Planned Principal Components: As specified in the Preliminary
Statement.

         PO Formula Principal Amount: As to any Distribution Date and the Class
PO Certificates, the sum of (i) the applicable PO Percentage of the Applicable
Fraction with respect to Collateral Allocation Group 1 of each of the following:
(a) the principal portion of each Scheduled Payment (without giving effect to
any reductions thereof caused by any Debt Service Reductions or Deficient
Valuations) due on each Mortgage Loan on the related Due Date, (b) the Stated
Principal Balance of each Mortgage Loan that was repurchased by the Seller or
purchased by the Master Servicer pursuant to this Agreement as of such
Distribution Date, (c) the Substitution Adjustment Amount in connection with any
Deleted Mortgage Loan received with respect to such Distribution Date, (d) any
Insurance Proceeds or Liquidation Proceeds allocable to recoveries of principal
of Mortgage Loans that are not yet Liquidated Mortgage Loans received during the
calendar month preceding the month of such Distribution Date, (e) with respect
to each Mortgage Loan that became a Liquidated Mortgage Loan during the month
preceding the calendar month of such Distribution Date, the amount of
Liquidation Proceeds allocable to principal received with respect to such
Mortgage Loan during the month preceding the month of such Distribution Date
with respect to such Mortgage Loan, and (f) all Principal Prepayments with
respect to the Mortgage Loans received during the related Prepayment Period, and
(ii) with respect to Subsequent Recoveries attributable to a Discount Mortgage
Loan which incurred a Realized Loss after the Senior Credit Support Depletion
Date, the PO Percentage of any such Subsequent Recoveries received during the
calendar month preceding the month of such Distribution Date.

         PO Percentage: As to any Discount Mortgage Loan, a fraction (expressed
as a percentage) the numerator of which is the excess of the Required Coupon for
Collateral Allocation Group 1 over the Adjusted Net Mortgage Rate of such
Discount Mortgage Loan and the denominator of which is such Required Coupon. As
to any Non-Discount Mortgage Loan, 0%.

         Pool Stated Principal Balance: The aggregate of the Stated Principal
Balances of the Outstanding Mortgage Loans.

         Prepayment Interest Shortfall: As to any Distribution Date, any
Mortgage Loan and any Principal Prepayment received in the portion of the
Prepayment Period occurring in the calendar month prior to the month of such
Distribution Date, the amount, if any, by which one month's interest at the
related Mortgage Rate, net of the related Master Servicing Fee Rate, on such
Principal Prepayment exceeds the amount of interest paid in connection with such
Principal Prepayment.

         Prepayment Period: As to any Distribution Date, the period beginning on
the second day of the calendar month preceding the month in which such
Distribution Date occurs and ending on the first day of the calendar month in
which such Distribution Date occurs.

         Prepayment Shift Percentage:  Not applicable.

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

                                      33
<PAGE>

         Prime Rate: The prime commercial lending rate of The Bank of New York,
as publicly announced to be in effect from time to time. The Prime Rate shall be
adjusted automatically, without notice, on the effective date of any change in
such prime commercial lending rate. The Prime Rate is not necessarily The Bank
of New York's lowest rate of interest.

         Principal Prepayment: Any payment of principal by a Mortgagor on a
Mortgage Loan that is received in advance of its scheduled Due Date and is not
accompanied by an amount representing scheduled interest due on any date or
dates in any month or months subsequent to the month of prepayment. Partial
Principal Prepayments shall be applied by the Master Servicer in accordance with
the terms of the related Mortgage Note.

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

         Principal Relocation Payment: A payment from any Collateral Allocation
Group to a Subsidiary REMIC Regular Interest other than a Regular Interest
corresponding to that Collateral Allocation Group as provided in the Preliminary
Statement. Principal Relocation Payments from a Collateral Allocation Group
shall be made of the amounts in respect of principal from the Mortgage Loans of
the Collateral Allocation Group and shall include a proportionate allocation of
the Realized Losses from the Mortgage Loans of the Collateral Allocation Group.

         Private Certificate:  As specified in the Preliminary Statement.

         Pro Rata Share: As to any Distribution Date, the Subordinated Principal
Distribution Amount and any Class of Subordinated Certificates, the portion of
the Subordinated Principal Distribution Amount allocable to such Class, equal to
the product of the Subordinated Principal Distribution Amount on such
Distribution Date and a fraction, the numerator of which is the related Class
Certificate Balance thereof and the denominator of which is the aggregate of the
Class Certificate Balances of the Subordinated Certificates.

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

         Prospectus: The Prospectus dated July 25, 2005 generally relating to
mortgage pass-through certificates to be sold by the Depositor.

         Prospectus Supplement: The Prospectus Supplement dated July 26, 2005
relating to the Offered Certificates.

         PUD:  Planned Unit Development.

         Purchase Price: With respect to any Mortgage Loan required to be
purchased by the Seller pursuant to Section 2.02 or 2.03 hereof or purchased at
the option of the Master Servicer pursuant to Section 3.11, an amount equal to
the sum of (i) 100% of the unpaid principal balance of the Mortgage Loan on the
date of such purchase, (ii) accrued interest thereon at the applicable Mortgage
Rate (or at the applicable Adjusted Mortgage Rate if (x) the purchaser is the
Master Servicer or (y) if the purchaser is Countrywide and Countrywide is an
affiliate of the Master Servicer) from the date through which interest was last
paid by the Mortgagor to the Due Date in

                                      34
<PAGE>

the month in which the Purchase Price is to be distributed to
Certificateholders and (iii) costs and damages incurred by the Trust Fund in
connection with a repurchase pursuant to Section 2.03 hereof that arises out
of a violation of any predatory or abusive lending law with respect to the
related Mortgage Loan.

         Qualified Bidder: Any nationally-recognized broker dealer other than
the Seller, the Master Servicer and any of their respective Affiliates.

         Qualified Insurer: A mortgage guaranty insurance company duly qualified
as such under the laws of the state of its principal place of business and each
state having jurisdiction over such insurer in connection with the insurance
policy issued by such insurer, duly authorized and licensed in such states to
transact a mortgage guaranty insurance business in such states and to write the
insurance provided by the insurance policy issued by it, approved as a
FNMA-approved mortgage insurer and having a claims paying ability rating of at
least "AA" or equivalent rating by a nationally recognized statistical rating
organization. Any replacement insurer with respect to a Mortgage Loan must have
at least as high a claims paying ability rating as the insurer it replaces had
on the Closing Date.

         Rating Agency: Each of the Rating Agencies specified in the Preliminary
Statement. If any such organization or a successor is no longer in existence,
"Rating Agency" shall be such nationally recognized statistical rating
organization, or other comparable Person, as is designated by the Depositor,
notice of which designation shall be given to the Trustee. References herein to
a given rating category of a Rating Agency shall mean such rating category
without giving effect to any modifiers.

         Realized Loss: With respect to each Liquidated Mortgage Loan, an amount
(not less than zero or more than the Stated Principal Balance of the Mortgage
Loan) as of the date of such liquidation, equal to (i) the Stated Principal
Balance of the Liquidated Mortgage Loan as of the date of such liquidation, plus
(ii) interest at the Adjusted Net Mortgage Rate from the Due Date as to which
interest was last paid or advanced (and not reimbursed) to Certificateholders up
to the Due Date in the month in which Liquidation Proceeds are required to be
distributed on the Stated Principal Balance of such Liquidated Mortgage Loan
from time to time, minus (iii) the Liquidation Proceeds, if any, received during
the month in which such liquidation occurred, to the extent applied as
recoveries of interest at the Adjusted Net Mortgage Rate and to principal of the
Liquidated Mortgage Loan. With respect to each Mortgage Loan which has become
the subject of a Deficient Valuation, if the principal amount due under the
related Mortgage Note has been reduced, 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
subject of a Debt Service Reduction and any Distribution Date, the amount, if
any, by which the principal portion of the related Scheduled Payment has been
reduced.

         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 by such Subsequent Recoveries.

                                      35
<PAGE>

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

         Record Date: With respect to any Distribution Date, the close of
business on the last Business Day of the month preceding the month in which such
Distribution Date occurs.

         Reference Bank:  As defined in Section 4.08(b).

         Refinancing Mortgage Loan: Any Mortgage Loan originated in connection
with the refinancing of an existing mortgage loan.

         Regular Certificates:  As specified in the Preliminary Statement.

         Relief Act: The Servicemembers Civil Relief Act and similar state or
local laws.

         Relief Act Reductions: With respect to any Distribution Date and any
Mortgage Loan as to which there has been a reduction in the amount of interest
collectible thereon for the most recently ended calendar month as a result of
the application of the Relief Act, the amount, if any, by which (i) interest
collectible on such Mortgage Loan for the most recently ended calendar month is
less than (ii) interest accrued thereon for such month pursuant to the Mortgage
Note.

         REMIC: A "real estate mortgage investment conduit" within the meaning
of section 860D of the Code.

         REMIC Change of Law: Any proposed, temporary or final regulation,
revenue ruling, revenue procedure or other official announcement or
interpretation relating to REMICs and the REMIC Provisions issued after the
Closing Date.

         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
regulations promulgated thereunder, as the foregoing may be in effect from time
to time as well as provisions of applicable state laws.

         REO Property: A Mortgaged Property acquired by the Trust Fund through
foreclosure or deed-in-lieu of foreclosure in connection with a defaulted
Mortgage Loan.

         Request for Release: The Request for Release submitted by the Master
Servicer to the Trustee, substantially in the form of Exhibits M and N, as
appropriate.

         Required Coupon: With respect to Collateral Allocation Group 1, 5.50%
per annum, and with respect to Collateral Allocation Group 2, 8.00% per annum.

         Required Insurance Policy: With respect to any Mortgage Loan, any
insurance policy that is required to be maintained from time to time under this
Agreement.

         Residual Certificates:  As specified in the Preliminary Statement.

                                      36
<PAGE>

         Responsible Officer: When used with respect to the Trustee, any Vice
President, any Assistant Vice President, the Secretary, any Assistant Secretary,
any Trust Officer or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers and
also to whom, with respect to a particular matter, such matter is referred
because of such officer's knowledge of and familiarity with the particular
subject.

         Restricted Classes:  As defined in Section 4.02(f).

         Scheduled Balances: With respect to any Planned Principal Classes or
Components and Targeted Principal Classes or Components set forth in the
Preliminary Statement and any Distribution Date, the amount set forth on
Schedule V hereto for those Classes or Components and Distribution Date.

         Scheduled Classes:  As specified in the Preliminary Statement.

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

         Scheduled Principal Distribution Amount: As to any Distribution Date
and Collateral Allocation Group, an amount equal to the sum of the Non-PO
Percentage of the Applicable Fractions of all amounts described in subclauses
(a) through (d) of clause (i) of the definition of "Non-PO Formula Principal
Amount" for such Collateral Allocation Group and Distribution Date.

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

         Seller: EMC Mortgage Corporation, a Delaware corporation, and its
successors and assigns, in its capacity as the seller of the Mortgage Loans to
the Depositor.

         Senior Certificate Group:  As specified in the Preliminary Statement.

         Senior Certificates:  As specified in the Preliminary Statement.

         Senior Credit Support Depletion Date: The date on which the Class
Certificate Balance of each Class of Subordinated Certificates has been reduced
to zero.

         Senior Percentage: As to any Senior Certificate Group and Distribution
Date, the percentage equivalent of a fraction the numerator of which is the
aggregate Class Certificate Balance of such Senior Certificate Group (other than
the Class PO Certificates, if applicable) immediately prior to such Distribution
Date and the denominator of which is the aggregate of the applicable Non-PO
Percentage of the Applicable Fraction of the Stated Principal Balance of each
Mortgage Loan in the related Collateral Allocation Group as of the Due Date
occurring in the month prior to the month of such Distribution Date (after
giving effect to Principal Prepayments received in the Prepayment Period related
to that Due Date); provided, however, that on any Distribution Date after the
Senior Termination Date, the Senior Percentage for the remaining Senior
Certificate Group is the percentage equivalent of a fraction, the numerator of
which is the

                                      37
<PAGE>

aggregate Class Certificate Balance of such remaining Senior Certificate Group
immediately prior to such Distribution Date (other than the Class PO
Certificates, if applicable) and the denominator of which is the aggregate of
the Class Certificate Balances of all Classes of Certificates (other than the
Class PO Certificates), immediately prior to such Distribution Date.

         Senior Prepayment Percentage: As to a Senior Certificate Group and any
Distribution Date during the five years beginning on the first Distribution
Date, 100%. The Senior Prepayment Percentage for any Distribution Date occurring
on or after the fifth anniversary of the first Distribution Date will, except as
provided herein, be as follows: for any Distribution Date in the first year
thereafter, the related Senior Percentage plus 70% of the related Subordinated
Percentage for such Distribution Date; for any Distribution Date in the second
year thereafter, the related Senior Percentage plus 60% of the related
Subordinated Percentage for such Distribution Date; for any Distribution Date in
the third year thereafter, the related Senior Percentage plus 40% of the related
Subordinated Percentage for such Distribution Date; for any Distribution Date in
the fourth year thereafter, the related Senior Percentage plus 20% of the
related Subordinated Percentage for such Distribution Date; and for any
Distribution Date thereafter, the related Senior Percentage for such
Distribution Date (unless on any Distribution Date the Senior Percentage exceeds
the initial Senior Percentage of such Senior Certificate Group, in which case
the Senior Prepayment Percentage for each Collateral Allocation Group for such
Distribution Date will once again equal 100%). Notwithstanding the foregoing, no
decrease in any Senior Prepayment Percentage will occur unless both of the
Senior Step Down Conditions are satisfied with respect to each of the Collateral
Allocation Groups.

         Senior Principal Distribution Amount: As to any Distribution Date and
Collateral Allocation Group, the sum of (i) the related Senior Percentage of the
applicable Non-PO Percentage of the Applicable Fraction of all amounts described
in subclauses (a) through (d) of clause (i) of the definition of "Non-PO Formula
Principal Amount" with respect to that Collateral Allocation Group for such
Distribution Date, (ii) with respect to any Mortgage Loan related to Collateral
Allocation Group that became a Liquidated Mortgage Loan during the calendar
month preceding the month of such Distribution Date, the portion (by Applicable
Fraction) allocable to that Collateral Allocation Group of the lesser of (x) the
related Senior Percentage of the applicable Non-PO Percentage of the Stated
Principal Balance of such Mortgage Loan and (y) the related Senior Prepayment
Percentage of the applicable Non-PO Percentage of the amount of the Liquidation
Proceeds allocable to principal received with respect to such Mortgage Loan, and
(iii) the related Senior Prepayment Percentage of the applicable Non-PO
Percentage of the Applicable Fractions of the amounts described in subclause (f)
of clause (i) of the definition of "Non-PO Formula Principal Amount" with
respect to that Collateral Allocation Group for such Distribution Date plus (y)
the Senior Prepayment Percentage for the related Senior Certificate Group of any
Subsequent Recoveries on the Mortgage Loans allocable (based on the Applicable
Fraction) to that Collateral Allocation Group described in clause (ii) of the
definition of "Non-PO Formula Principal Amount" for such Distribution Date;
provided, however, on any Distribution Date after the Senior Termination Date,
the Senior Principal Distribution Amount for the remaining Senior Certificate
Group will be calculated pursuant to the above formula based on all the Mortgage
Loans in the Mortgage Pool, as opposed to the Mortgage Loans in the related
Collateral Allocation Groups.

                                      38
<PAGE>

         Senior Step Down Conditions: With respect to each Collateral Group: (i)
the outstanding principal balance of the Applicable Fraction of all Mortgage
Loans related to a Collateral Allocation Group delinquent 60 days or more
(including Mortgage Loans in foreclosure, REO Property and Mortgage Loans the
mortgagors of which are in bankruptcy) (averaged over the preceding six month
period), as a percentage of (a) if such date is on or prior to the Senior
Termination Date, the Subordinated Percentage for such Collateral Allocation
Group of the aggregate of the applicable Non-PO Percentage of the aggregate
Applicable Fractions of the Stated Principal Balance of the Mortgage Loans
related to that Collateral Allocation Group, or (b) if such date is after the
Senior Termination Date, the aggregate Class Certificate Balance of the
Subordinated Certificates immediately prior to such Distribution Date, does not
equal or exceed 50%, and (ii) cumulative Realized Losses on the Applicable
Fractions of the Mortgage Loans related to each Collateral Allocation Group do
not exceed: (a) commencing with the Distribution Date on the fifth anniversary
of the first Distribution Date, 30% of the Original Subordinate Principal
Balance, (b) commencing with the Distribution Date on the sixth anniversary of
the first Distribution Date, 35% of the Original Subordinate Principal Balance,
(c) commencing with the Distribution Date on the seventh anniversary of the
first Distribution Date, 40% of the Original Subordinate Principal Balance, (d)
commencing with the Distribution Date on the eighth anniversary of the first
Distribution Date, 45% of the Original Subordinate Principal Balance, and (e)
commencing with the Distribution Date on the ninth anniversary of the first
Distribution Date, 50% of the Original Subordinate Principal Balance.

         Senior Termination Date: The Distribution Date on which the aggregate
Class Certificate Balance of either of the Senior Certificate Groups (other than
the Class PO Certificates, if applicable) has been reduced to zero.

         Servicing Advances: All customary, reasonable and necessary "out of
pocket" costs and expenses incurred in the performance by the Master Servicer of
its servicing obligations, including, but not limited to, the cost of (i) the
preservation, restoration and protection of a Mortgaged Property, (ii) any
expenses reimbursable to the Master Servicer pursuant to Section 3.11 and any
enforcement or judicial proceedings, including foreclosures, (iii) the
management and liquidation of any REO Property and (iv) compliance with the
obligations under Section 3.09.

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

         Shift Percentage: As to any Distribution Date occurring during the five
years beginning on the first Distribution Date, 0%. For any Distribution Date
occurring on or after the fifth anniversary of the first Distribution Date as
follows: for any Distribution Date in the first year thereafter, 30%; for any
Distribution Date in the second year thereafter, 40%; for any Distribution Date
in the third year thereafter, 60%; for any Distribution Date in the fourth year
thereafter, 80%; and for any Distribution Date thereafter, 100%.

         S&P: Standard & Poor's Ratings Services, a division of The McGraw-Hill
Companies, Inc. If S&P is designated as a Rating Agency in the Preliminary
Statement, for purposes of

                                      39
<PAGE>

Section 10.05(b) the address for notices to S&P shall be Standard & Poor's, 55
Water Street, New York, New York 10041, Attention: Mortgage Surveillance
Monitoring, or such other address as S&P may hereafter furnish to the
Depositor and the Master Servicer.

         Startup Day:  The Closing Date.

         Stated Principal Balance: As to any Mortgage Loan and Due Date, the
unpaid principal balance of such Mortgage Loan as of such Due Date, as specified
in its amortization schedule at that time relating thereto (before any
adjustment to the amortization schedule by reason of any moratorium or similar
waiver or grace period) after giving effect to the sum of: (i) any previous
partial Principal Prepayments and the payment of principal due on such Due Date,
irrespective of any delinquency in payment by the related Mortgagor and (ii)
Liquidation Proceeds allocable to principal (other than with respect to any
Liquidated Mortgage Loan) received in the prior calendar month and Principal
Prepayments received through the last day of the related Prepayment Period, in
each case, with respect to that Mortgage Loan.

         Streamlined Documentation Mortgage Loan: Any Mortgage Loan originated
pursuant to Countrywide's Streamlined Loan Documentation Program then in effect.
For the purposes of this Agreement, a Mortgagor is eligible for a mortgage
pursuant to Countrywide's Streamlined Loan Documentation Program if that
Mortgagor is refinancing an existing mortgage loan that was originated or
acquired by Countrywide where, among other things, the mortgage loan has not
been more than 30 days delinquent in payment during the previous twelve-month
period.

         Subordinate Pass-Through Rate: For the Interest Accrual Period for any
Distribution Date, a per annum rate equal to (x) the sum of: (i) 5.50%,
multiplied by the excess of the Collateral Allocation Group Principal Balance
for Collateral Allocation Group 1 as of the Due Date in the month preceding the
month of that Distribution Date (after giving effect to Principal Prepayments
received in the Prepayment Period related to that prior Due Date) over the
aggregate Class Certificate Balance of the Group 1 Senior Certificates
immediately prior to that Distribution Date, and (ii) 8.00%, multiplied by the
excess of the Collateral Allocation Group Principal Balance for Collateral
Allocation Group 2 as of the Due Date in the month preceding the month of that
Distribution Date (after giving effect to Principal Prepayments received in the
Prepayment Period related to that prior Due Date) over the aggregate Class
Certificate Balance of the Group 2 Senior Certificates immediately prior to that
Distribution Date, divided by (y) the aggregate of the Class Certificate
Balances of the Subordinated Certificates immediately prior to that Distribution
Date.

         Subordinated Certificates:  As specified in the Preliminary Statement.

         Subordinated Portion: For any Distribution Date and for each Collateral
Allocation Group, the excess of the Collateral Allocation Group Principal
Balance of such Collateral Allocation Group for such Distribution Date over the
aggregate Class Certificate Balance of the Senior Certificates in the related
Senior Certificate Group immediately prior to such Distribution Date.

         Subordinated Percentage: As to any Collateral Allocation Group and
Distribution Date on or prior to the Senior Termination Date, 100% minus the
Senior Percentage for the Senior

                                      40
<PAGE>

Certificate Group relating to such Collateral Allocation Group for such
Distribution Date. As to any Distribution Date after the Senior Termination
Date, 100% minus the Senior Percentage for such Distribution Date.

         Subordinated Prepayment Percentage: As to any Distribution Date and
Collateral Allocation Group, 100% minus the related Senior Prepayment Percentage
for such Distribution Date.

         Subordinated Principal Distribution Amount: With respect to any
Distribution Date and Collateral Allocation Group, an amount equal to the excess
of (A) the sum, not less than zero, of (i) the related Subordinated Percentage
of the applicable Non-PO Percentage of the Applicable Fractions of all amounts
described in subclauses (a) through (d) of clause (i) of the definition of
"Non-PO Formula Principal Amount" for such Collateral Allocation Group and
Distribution Date, (ii) with respect to each Mortgage Loan related to that
Collateral Allocation Group that became a Liquidated Mortgage Loan during the
calendar month preceding the month of such Distribution Date, the portion (by
Applicable Fraction) allocable to that Collateral Allocation Group of the
applicable Non-PO Percentage of the amount of the Liquidation Proceeds allocated
to principal received with respect thereto remaining after application thereof
pursuant to clause (ii) of the definition of Senior Principal Distribution
Amount, up to the related Subordinated Percentage for such Collateral Allocation
Group of the applicable Non-PO Percentage of the Stated Principal Balance of
such Mortgage Loan, (iii) the related Subordinated Prepayment Percentage for
that Collateral Allocation Group of the applicable Non-PO Percentage of the
Applicable Fractions of all amounts described in subclause (f) of clause (i) of
the definition of "Non-PO Formula Principal Amount" for such Collateral
Allocation Group and Distribution Date, and (iv) the related Subordinated
Prepayment Percentage for that Collateral Allocation Group of any Subsequent
Recoveries allocable (based upon the Applicable Fraction) to that Collateral
Allocation Group described in clause (ii) of the definition of "Non-PO Formula
Principal Amount" for such Collateral Allocation Group and Distribution Date,
over (B) the amount of any payments in respect of Class PO Deferred Amounts for
the Class PO Certificates, if applicable, on the related Distribution Date,
provided, however, that on any Distribution Date after the Senior Termination
Date, the Subordinated Principal Distribution Amount will not be calculated by
Collateral Allocation Group but will equal the amount calculated pursuant to the
formula set forth above based on the applicable Subordinated Percentage for the
Subordinated Certificates for such Distribution Date with respect to all of the
Mortgage Loans as opposed to the Applicable Fractions of the Mortgage Loans.

         Subordinate WAC REMIC: As described in the Preliminary Statement.

         Subordinate WAC REMIC Interest: Any one of the Subordinate WAC REMIC
Interests or the SW-A-R Interest.

         Subordinate WAC REMIC Regular Interest: Any one of the "regular
interests" in the Subordinate WAC REMIC described in the Preliminary Statement.

         Subsequent Recoveries: As to any Distribution Date, with respect to a
Liquidated Mortgage Loan that resulted in a Realized Loss in a prior calendar
month, unexpected amounts

                                      41
<PAGE>

received by the Master Servicer (net of any related expenses permitted to be
reimbursed pursuant to Section 3.08) specifically related to such Liquidated
Mortgage Loan.

         Subservicer: Any person to whom the Master Servicer has contracted for
the servicing of all or a portion of the Mortgage Loans pursuant to Section 3.02
hereof.

         Substitute Mortgage Loan: A Mortgage Loan substituted by the Seller for
a Deleted Mortgage Loan which must, on the date of such substitution, as
confirmed in a Request for Release, substantially in the form of Exhibit M, (i)
have a Stated Principal Balance, after deduction of the principal portion of the
Scheduled Payment due in the month of substitution, not in excess of, and not
more than 10% less than the Stated Principal Balance of the Deleted Mortgage
Loan; (ii) be accruing interest at a rate no lower than and not more than 1% per
annum higher than, that of the Deleted Mortgage Loan; (iii) have a Loan-to-Value
Ratio no higher than that of the Deleted Mortgage Loan; (iv) have a remaining
term to maturity no greater than (and not more than one year less than that of)
the Deleted Mortgage Loan; (v) not be a Cooperative Loan unless the Deleted
Mortgage Loan was a Cooperative Loan and (vi) comply with each representation
and warranty set forth in Section 2.03 hereof.

         Substitution Adjustment Amount: The meaning ascribed to such term
pursuant to Section 2.03.

         Successful Auction: An auction held pursuant to Section 9.04 hereof at
which at least three Qualified Bidders submitted bids and at least the Minimum
Bid Price was bid as the purchase price for the Mortgage Loans and any related
REO Properties by a Qualified Bidder.

         Targeted Balance: With respect to any group of Targeted Principal
Classes or Components in the aggregate and any Distribution Date appearing in
Schedule V hereto, the Aggregate Targeted Balance for such group and
Distribution Date. With respect to any other Targeted Principal Class or
Component and any Distribution Date appearing in Schedule V hereto, the
applicable amount appearing opposite such Distribution Date for such Class or
Component.

         Targeted Principal Classes:  As specified in the Preliminary Statement.

         Tax Matters Person: The person designated as "tax matters person" in
the manner provided under Treasury regulation ss. 1.860F-4(d) and temporary
Treasury regulation ss. 301.6231(a)(7)1T. Initially, the Tax Matters Person
shall be the Trustee.

         Tax Matters Person Certificate: The Class A-R Certificate with a
Denomination of $0.01.

         Transfer: Any direct or indirect transfer or sale of any Ownership
Interest in a Residual Certificate.

         Trust Fund: The corpus of the trust created hereunder consisting of (i)
the Mortgage Loans and all interest and principal received on or with respect
thereto after the Cut-off Date to the extent not applied in computing the
Cut-off Date Principal Balance thereof; (ii) the Certificate Account, the
Distribution Account and all amounts deposited therein pursuant to the

                                      42
<PAGE>

applicable provisions of this Agreement; (iii) property that secured a Mortgage
Loan and has been acquired by foreclosure, deed-in-lieu of foreclosure or
otherwise; and (iv) all proceeds of the conversion, voluntary or involuntary, of
any of the foregoing.

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

         Trustee Advance Rate: With respect to any Advance made by the Trustee
pursuant to Section 4.01(b), a per annum rate of interest determined as of the
date of such Advance equal to the Prime Rate in effect on such date plus 5.00%.

         Undercollateralized Group: As defined in Section 4.05.

         Underwriter's Exemption: Prohibited Transaction Exemption 2002-41, 67
Fed. Reg. 54487 (2002), as amended (or any successor thereto), or any
substantially similar administrative exemption granted by the U.S. Department
of Labor.

         Underwriters: As specified in the Preliminary Statement.

         Unscheduled Principal Distribution Amount: As to any Distribution Date
and Collateral Allocation Group, an amount equal to the sum of (i) with respect
to each Mortgage Loan related to that Collateral Allocation Group that became a
Liquidated Mortgage Loan during the calendar month preceding the month of such
Distribution Date, the applicable Non-PO Percentage of the Applicable Fraction
of the Liquidation Proceeds allocable to principal received with respect to such
Mortgage Loan, (ii) the applicable Non-PO Percentage of the Applicable Fraction
of the amount described in subclause (f) of clause (i) of the definition of
"Non-PO Formula Principal Amount" for such Collateral Allocation Group and
Distribution Date and (iii) any Subsequent Recoveries described in clause (ii)
of the definition of "Non-PO Formula Principal Amount" for such Collateral
Allocation Group and Distribution Date.

         Voting Rights: The portion of the voting rights of all of the
Certificates which is allocated to any Certificate. As of any date of
determination, (a) 1% of all Voting Rights shall be allocated to each Class of
Notional Amount Certificates, if any (such Voting Rights to be allocated among
the holders of Certificates of each such Class in accordance with their
respective Percentage Interests), and (b) the remaining Voting Rights (or 100%
of the Voting Rights if there is no Class of Notional Amount Certificates) shall
be allocated among Holders of the remaining Classes of Certificates in
proportion to the Certificate Balances of their respective Certificates on such
date.

         Winning Bidder: With respect to a Successful Auction, the Qualified
Bidder offering to pay the highest price (but in no event less than the Minimum
Bid Price) for the assets of the Trust Fund.

                                      43
<PAGE>

                                  ARTICLE II
                          CONVEYANCE OF MORTGAGE LOANS;
                         REPRESENTATIONS AND WARRANTIES

         SECTION 2.01.   Conveyance of Mortgage Loans

         (a) The Seller, concurrently with the execution and delivery hereof,
hereby sells, transfers, assigns, sets over and otherwise conveys to the
Depositor, without recourse, all its respective right, title and interest in
and to the Mortgage Loans, including all interest and principal received or
receivable by the Seller on or with respect to the Mortgage Loans after the
Cut-off Date and all interest and principal payments on the Mortgage Loans
received prior to the Cut-off Date in respect of installments of interest and
principal due thereafter, but not including payments of principal and interest
due and payable on such Mortgage Loans on or before the Cut-off Date. On or
prior to the Closing Date, the Seller shall deliver to the Depositor or, at
the Depositor's direction, to the Trustee or other designee of the Depositor,
the Mortgage File for each Mortgage Loan listed in the Mortgage Loan Schedule.
Such delivery of the Mortgage Files shall be made against payment by the
Depositor of the purchase price, previously agreed to by the Seller and
Depositor, for the Mortgage Loans. With respect to any Mortgage Loan that does
not have a first payment date on or before the Due Date in the month of the
first Distribution Date, the Seller shall deposit to the Distribution Account
on or before the Distribution Account Deposit Date relating to the first
applicable Distribution Date, an amount equal to one month's interest at the
related Adjusted Mortgage Rate on the Cut-off Date Principal Balance of such
Mortgage Loan. In addition, on the Closing Date, the Depositor shall cause
$100.00 to be deposited into the Class C Distribution Account.

         (b) Immediately upon the conveyance of the Mortgage Loans referred to
in clause (a), the Depositor sells, transfers, assigns, sets over and
otherwise conveys to the Trustee for the benefit of the Certificateholders,
without recourse, all the right, title and interest of the Depositor in and to
the Trust Fund together with the Depositor's right to require the Seller to
cure any breach of a representation or warranty made herein by the Seller or
to repurchase or substitute for any affected Mortgage Loan in accordance
herewith.

         (c) In connection with the transfer and assignment set forth in
clause (b) above, the Depositor has delivered or caused to be delivered to the
Trustee within thirty (30) days following the Closing Date for the benefit of
the Certificateholders the following documents or instruments with respect to
each Mortgage Loan so assigned:

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

                                      44
<PAGE>

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

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

               (iii) in the case of each Mortgage Loan that is not a MERS
         Mortgage Loan, a duly executed assignment of the Mortgage (which may
         be included in a blanket assignment or assignments), together with,
         except as provided below, all interim recorded assignments of such
         mortgage (each such assignment, when duly and validly completed, to
         be in recordable form and sufficient to effect the assignment of and
         transfer to the assignee thereof, under the Mortgage to which the
         assignment relates); provided that, if the related Mortgage has not
         been returned from the applicable public recording office, such
         assignment of the Mortgage may exclude the information to be provided
         by the recording office; provided, further, that such assignment of
         Mortgage need not be delivered in the case of a Mortgage for which
         the related Mortgaged Property is located in the Commonwealth of
         Puerto Rico;

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

               (v) except as provided below, the original or duplicate
         original lender's title policy or a printout of the electronic
         equivalent and all riders thereto; and

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

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

                    (B) The executed Security Agreement;

                    (C) The executed Proprietary Lease;

                    (D) The executed Recognition Agreement;

                                      45
<PAGE>

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

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

         In addition, in connection with the assignment of any MERS Mortgage
Loan, the Seller agrees that it will cause, at the Trustee's expense, the
MERS(R) System to indicate that the Mortgage Loans sold by the Seller to the
Depositor have been assigned by the Seller 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 the information required by the MERS(R)
System to identify the series of the Certificates issued in connection with such
Mortgage Loans. The Seller further agrees that it will not, and the Master
Servicer agrees that it will not, alter the information referenced in this
paragraph with respect to any Mortgage Loan sold by the Seller to the Depositor
during the term of this Agreement unless and until such Mortgage Loan is
repurchased in accordance with the terms of this Agreement.

         In the event that in connection with any Mortgage Loan that is not a
MERS Mortgage Loan the Depositor cannot deliver (a) the original recorded
Mortgage, (b) all interim recorded assignments or (c) the lender's title policy
(together with all riders thereto) satisfying the requirements of clause (ii),
(iii) or (v) above, respectively, concurrently with the execution and delivery
hereof because such document or documents have not been returned from the
applicable public recording office in the case of clause (ii) or (iii) above, or
because the title policy has not been delivered to either the Master Servicer or
the Depositor by the applicable title insurer in the case of clause (v) above,
the Depositor shall promptly deliver to the Trustee, in the case of clause (ii)
or (iii) above, such original Mortgage or such interim assignment, as the case
may be, with evidence of recording indicated thereon upon receipt thereof from
the public recording office, or a copy thereof, certified, if appropriate, by
the relevant recording office, but in no event shall any such delivery of the
original Mortgage and each such interim assignment or a copy thereof, certified,
if appropriate, by the relevant recording office, be made later than one year
following the Closing Date, or, in the case of clause (v) above, no later than
120 days following the Closing Date; provided, however, in the event the
Depositor is unable to deliver by such date each Mortgage and each such interim
assignment by reason of the fact that any such documents have not been returned
by the appropriate recording office, or, in the case of each such interim
assignment, because the related Mortgage has not been returned by the
appropriate recording office, the Depositor shall deliver such documents to the
Trustee as promptly as possible upon receipt thereof and, in any event, within
720 days following the Closing Date. The Depositor shall forward or cause to be
forwarded to the Trustee (a) from time to time additional original documents
evidencing an assumption or modification of a Mortgage Loan and (b) any other
documents required to be delivered by the Depositor or the Master Servicer to
the Trustee. In the event that the original Mortgage is not delivered and in
connection with the payment in full of the related Mortgage Loan and the public
recording office requires the presentation of a "lost instruments affidavit and
indemnity" or any equivalent document, because only a copy of the

                                      46
<PAGE>

Mortgage can be delivered with the instrument of satisfaction or reconveyance,
the Master Servicer shall execute and deliver or cause to be executed and
delivered such a document to the public recording office. In the case where a
public recording office retains the original recorded Mortgage or in the case
where a Mortgage is lost after recordation in a public recording office,
Countrywide shall deliver to the Trustee a copy of such Mortgage certified by
such public recording office to be a true and complete copy of the original
recorded Mortgage.

         As promptly as practicable subsequent to such transfer and assignment,
and in any event, within thirty (30) days thereafter, the Trustee shall (i) as
the assignee thereof, affix the following language to each assignment of
Mortgage: "CWMBS Series 2005-19, The Bank of New York, as trustee", (ii) cause
such assignment to be in proper form for recording in the appropriate public
office for real property records and (iii) cause to be delivered for recording
in the appropriate public office for real property records the assignments of
the Mortgages to the Trustee, except that, with respect to any assignments of
Mortgage as to which the Trustee has not received the information required to
prepare such assignment in recordable form, the Trustee's obligation to do so
and to deliver the same for such recording shall be as soon as practicable after
receipt of such information and in any event within thirty (30) days after
receipt thereof and that the Trustee need not cause to be recorded any
assignment which relates to a Mortgage Loan (a) the Mortgaged Property and
Mortgage File relating to which are located in California or (b) in any other
jurisdiction (including Puerto Rico) under the laws of which in the opinion of
counsel the recordation of such assignment is not necessary to protect the
Trustee's and the Certificateholders' interest in the related Mortgage Loan.

         In the case of Mortgage Loans that have been prepaid in full as of the
Closing Date, the Depositor, in lieu of delivering the above documents to the
Trustee, will deposit in the Certificate Account the portion of such payment
that is required to be deposited in the Certificate Account pursuant to Section
3.05 hereof.

         (d) Neither the Depositor nor the Trust will acquire or hold any
Mortgage Loan that would violate the representations made by the Seller set
forth in clause (47) of Schedule III hereto.

         SECTION 2.02. Acceptance by Trustee of the Mortgage Loans.

         (a) The Trustee acknowledges receipt of the documents identified in
the Initial Certification in the form annexed hereto as Exhibit F and declares
that it holds and will hold such documents and the other documents delivered
to it constituting the Mortgage Files, and that it holds or will hold such
other assets as are included in the Trust Fund, in trust for the exclusive use
and benefit of all present and future Certificateholders. The Trustee
acknowledges that it will maintain possession of the Mortgage Notes in the
State of California, unless otherwise permitted by the Rating Agencies.

         The Trustee agrees to execute and deliver on the Closing Date to the
Depositor, the Master Servicer and the Seller an Initial Certification in the
form annexed hereto as Exhibit F. Based on its review and examination, and only
as to the documents identified in such Initial Certification, the Trustee
acknowledges that such documents appear regular on their face and relate to such
Mortgage Loan. The Trustee shall be under no duty or obligation to inspect,

                                      47
<PAGE>

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 in the real estate
records or that they are other than what they purport to be on their face.

         Not later than 90 days after the Closing Date, the Trustee shall
deliver to the Depositor, the Master Servicer and the Seller a Final
Certification with respect to the Mortgage Loans in the form annexed hereto as
Exhibit H, with any applicable exceptions noted thereon.

         If, in the course of such review, the Trustee finds any document
constituting a part of a Mortgage File which does not meet the requirements of
Section 2.01, the Trustee shall list such as an exception in the Final
Certification; provided, however that the Trustee shall not make any
determination as to whether (i) any endorsement is sufficient to transfer all
right, title and interest of the party so endorsing, as noteholder or assignee
thereof, in and to that Mortgage Note or (ii) any assignment is in recordable
form or is sufficient to effect the assignment of and transfer to the assignee
thereof under the mortgage to which the assignment relates. The Seller shall
promptly correct or cure such defect within 90 days from the date it was so
notified of such defect and, if the Seller does not correct or cure such defect
within such period, the Seller shall either (a) substitute for the related
Mortgage Loan a Substitute Mortgage Loan, which substitution shall be
accomplished in the manner and subject to the conditions set forth in Section
2.03, or (b) purchase such Mortgage Loan from the Trustee within 90 days from
the date the Seller was notified of such defect in writing at the Purchase Price
of such Mortgage Loan; provided, however, that in no event shall such
substitution or purchase occur more than 540 days from the Closing Date, except
that if the substitution or purchase of a Mortgage Loan pursuant to this
provision is required by reason of a delay in delivery of any documents by the
appropriate recording office, and there is a dispute between either the Master
Servicer or the Seller and the Trustee over the location or status of the
recorded document, then such substitution or purchase shall occur within 720
days from the Closing Date. The Trustee shall deliver written notice to each
Rating Agency within 270 days from the Closing Date indicating each Mortgage
Loan (a) which has not been returned by the appropriate recording office or (b)
as to which there is a dispute as to location or status of such Mortgage Loan.
Such notice shall be delivered every 90 days thereafter until the related
Mortgage Loan is returned to the Trustee. Any such substitution pursuant to (a)
above or purchase pursuant to (b) above shall not be effected prior to the
delivery to the Trustee of the Opinion of Counsel required by Section 2.05
hereof, if any, and any substitution pursuant to (a) above shall not be effected
prior to the additional delivery to the Trustee of a Request for Release
substantially in the form of Exhibit N. No substitution is permitted to be made
in any calendar month after the Determination Date for such month. The Purchase
Price for any such Mortgage Loan shall be deposited by the Seller in the
Certificate Account on or prior to the Distribution Account Deposit Date for the
Distribution Date in the month following the month of repurchase and, upon
receipt of such deposit and certification with respect thereto in the form of
Exhibit N hereto, the Trustee shall release the related Mortgage File to the
Seller and shall execute and deliver at the Seller's request such instruments of
transfer or assignment prepared by the Seller, in each case without recourse, as
shall be necessary to vest in the Seller, or a designee, the Trustee's interest
in any Mortgage Loan released pursuant hereto. If pursuant to the foregoing
provisions the Seller repurchases an Mortgage Loan that is a MERS Mortgage Loan,
the Master Servicer shall either (i) cause MERS to execute and deliver an
assignment of the Mortgage in recordable form to transfer the Mortgage from MERS
to the

                                      48
<PAGE>

Seller or its designee and shall cause such Mortgage Loan to be removed
from registration on the MERS(R) System in accordance with MERS' rules and
regulations or (ii) cause MERS to designate on the MERS(R) System the Seller or
its designee as the beneficial holder of such Mortgage Loan.

         (b) [Reserved].

         (c) [Reserved].

         (d) The Trustee shall retain possession and custody of each Mortgage
File in accordance with and subject to the terms and conditions set forth
herein. The Master Servicer shall promptly deliver to the Trustee, upon the
execution or receipt thereof, the originals of such other documents or
instruments constituting the Mortgage File as come into the possession of the
Master Servicer from time to time.

         (e) It is understood and agreed that the obligation of the Seller to
substitute for or to purchase any Mortgage Loan sold to the Depositor that
does not meet the requirements of Section 2.01 above shall constitute the sole
remedy respecting such defect available to the Trustee, the Depositor and any
Certificateholder against the Seller.

         SECTION 2.03. Representations, Warranties and Covenants of the Seller
and the Master Servicer.

         (a) The Seller hereby makes the representations and warranties set
forth in (i) Schedule II hereto, and by this reference incorporated herein, to
the Depositor, the Master Servicer and the Trustee, as of the Closing Date,
and (ii) Schedule III hereto, and by this reference incorporated herein, to
the Depositor, the Master Servicer and the Trustee, as of the Closing Date, or
if so specified therein, and as of the Cut-off Date with respect to all of the
Mortgage Loans.

         (b) The Master Servicer hereby makes the representations and
warranties set forth in Schedule IV hereto, and by this reference incorporated
herein to the Depositor and the Trustee as of the Closing Date.

         (c) Upon discovery by any of the parties hereto of a breach of a
representation or warranty with respect to a Mortgage Loan made pursuant to
Section 2.03(a) that materially and adversely affects the interests of the
Certificateholders in that Mortgage Loan, the party discovering such breach
shall give prompt notice thereof to the other parties. The Seller hereby
covenants that within 90 days of the earlier of its discovery or its receipt
of written notice from any party of a breach of any representation or warranty
with respect to a Mortgage Loan sold by it pursuant to Section 2.03(a) which
materially and adversely affects the interests of the Certificateholders in
that Mortgage Loan, it shall cure such breach in all material respects, and if
such breach is not so cured, shall, (i) if such 90-day period expires prior to
the second anniversary of the Closing Date, remove such Mortgage Loan (a
"Deleted Mortgage Loan") from the Trust Fund and substitute in its place a
Substitute Mortgage Loan, in the manner and subject to the conditions set
forth in this Section; or (ii) repurchase the affected Mortgage Loan or
Mortgage Loans from the Trustee at the Purchase Price in the manner set forth
below; provided, however, that any such substitution pursuant to (i) above
shall not be effected prior to the

                                      49
<PAGE>

delivery to the Trustee of the Opinion of Counsel required by Section
2.05 hereof, if any, and any such substitution pursuant to (i) above shall not
be effected prior to the additional delivery to the Trustee of a Request for
Release substantially in the form of Exhibit N and the Mortgage File for any
such Substitute Mortgage Loan. The Seller repurchasing a Mortgage Loan
pursuant to this Section 2.03(c) shall promptly reimburse the Master Servicer
and the Trustee for any expenses reasonably incurred by the Master Servicer or
the Trustee in respect of enforcing the remedies for such breach. With respect
to the representations and warranties described in this Section which are made
to the best of the Seller's knowledge, if it is discovered by either the
Depositor, the Seller or the Trustee that the substance of such representation
and warranty is inaccurate and such inaccuracy materially and adversely
affects the value of the related Mortgage Loan or the interests of the
Certificateholders therein, notwithstanding the Seller's lack of knowledge
with respect to the substance of such representation or warranty, such
inaccuracy shall be deemed a breach of the applicable representation or
warranty.

         With respect to any Substitute Mortgage Loan or Loans, the Seller shall
deliver to the Trustee for the benefit of the Certificateholders the Mortgage
Note, the Mortgage, the related assignment of the Mortgage, and such other
documents and agreements as are required by Section 2.01, with the Mortgage Note
endorsed and the Mortgage assigned as required by Section 2.01. No substitution
is permitted to be made in any calendar month after the Determination Date for
such month. Scheduled Payments due with respect to Substitute Mortgage Loans in
the month of substitution shall not be part of the Trust Fund and will be
retained by the Seller on the next succeeding Distribution Date. For the month
of substitution, distributions to Certificateholders will include the monthly
payment due on any Deleted Mortgage Loan for such month and thereafter the
Seller shall be entitled to retain all amounts received in respect of such
Deleted Mortgage Loan. The Master Servicer shall amend the Mortgage Loan
Schedule for the benefit of the Certificateholders to reflect the removal of
such Deleted Mortgage Loan and the substitution of the Substitute Mortgage Loan
or Loans and the Master Servicer shall deliver the amended Mortgage Loan
Schedule to the Trustee. Upon such substitution, the Substitute Mortgage Loan or
Loans shall be subject to the terms of this Agreement in all respects, and the
Seller shall be deemed to have made with respect to such Substitute Mortgage
Loan or Loans, as of the date of substitution, the representations and
warranties made pursuant to Section 2.03(a) with respect to such Mortgage Loan.
Upon any such substitution and the deposit to the Certificate Account of the
amount required to be deposited therein in connection with such substitution as
described in the following paragraph, the Trustee shall release the Mortgage
File held for the benefit of the Certificateholders relating to such Deleted
Mortgage Loan to the Seller and shall execute and deliver at the Seller's
direction such instruments of transfer or assignment prepared by the Seller, in
each case without recourse, as shall be necessary to vest title in the Seller,
or its designee, the Trustee's interest in any Deleted Mortgage Loan substituted
for pursuant to this Section 2.03.

         For any month in which the Seller substitutes one or more Substitute
Mortgage Loans for one or more Deleted Mortgage Loans, the Master Servicer will
determine the amount (if any) by which the aggregate principal balance of all
Substitute Mortgage Loans sold to the Depositor by the Seller as of the date of
substitution is less than the aggregate Stated Principal Balance of all Deleted
Mortgage Loans repurchased by the Seller (after application of the scheduled
principal portion of the monthly payments due in the month of substitution). The
amount of such shortage (the "Substitution Adjustment Amount") plus an amount
equal to the aggregate of any

                                      50
<PAGE>

unreimbursed Advances with respect to such Deleted Mortgage Loans shall be
deposited in the Certificate Account by the Seller on or before the
Distribution Account Deposit Date for the Distribution Date in the month
succeeding the calendar month during which the related Mortgage Loan became
required to be purchased or replaced hereunder.

         In the event that the Seller shall have repurchased a Mortgage Loan,
the Purchase Price therefor shall be deposited in the Certificate Account
pursuant to Section 3.05 on or before the Distribution Account Deposit Date for
the Distribution Date in the month following the month during which the Seller
became obligated hereunder to repurchase or replace such Mortgage Loan and upon
such deposit of the Purchase Price, the delivery of the Opinion of Counsel
required by Section 2.05 and receipt of a Request for Release in the form of
Exhibit N hereto, the Trustee shall release the related Mortgage File held for
the benefit of the Certificateholders to such Person, and the Trustee shall
execute and deliver at such Person's direction such instruments of transfer or
assignment prepared by such Person, in each case without recourse, as shall be
necessary to transfer title from the Trustee. It is understood and agreed that
the obligation under this Agreement of any Person to cure, repurchase or replace
any Mortgage Loan as to which a breach has occurred and is continuing shall
constitute the sole remedy against such Persons respecting such breach available
to Certificateholders, the Depositor or the Trustee on their behalf.

         The representations and warranties made pursuant to this Section 2.03
shall survive delivery of the respective Mortgage Files to the Trustee for the
benefit of the Certificateholders.

         SECTION 2.04. Representations and Warranties of the Depositor as to
the Mortgage Loans.

         The Depositor hereby represents and warrants to the Trustee with
respect to each Mortgage Loan as of the date hereof or such other date set forth
herein that as of the Closing Date, and following the transfer of the Mortgage
Loans to it by the Seller, the Depositor had good title to the Mortgage Loans
and the Mortgage Notes were subject to no offsets, defenses or counterclaims.

         The Depositor hereby assigns, transfers and conveys to the Trustee all
of its rights with respect to the Mortgage Loans including, without limitation,
the representations and warranties of the Seller made pursuant to Section
2.03(a) hereof, together with all rights of the Depositor to require the Seller
to cure any breach thereof or to repurchase or substitute for any affected
Mortgage Loan in accordance with this Agreement.

         It is understood and agreed that the representations and warranties set
forth in this Section 2.04 shall survive delivery of the Mortgage Files to the
Trustee. Upon discovery by the Depositor or the Trustee of a breach of any of
the foregoing representations and warranties set forth in this Section 2.04
(referred to herein as a "breach"), which breach materially and adversely
affects the interest of the Certificateholders, the party discovering such
breach shall give prompt written notice to the others and to each Rating Agency.

                                      51
<PAGE>

         SECTION 2.05. Delivery of Opinion of Counsel in Connection with
Substitutions.

         (a) Notwithstanding any contrary provision of this Agreement, no
substitution pursuant to Section 2.02 or Section 2.03 shall be made more than
90 days after the Closing Date unless the Seller delivers to the Trustee an
Opinion of Counsel, which Opinion of Counsel shall not be at the expense of
either the Trustee or the Trust Fund, addressed to the Trustee, to the effect
that such substitution will not (i) result in the imposition of the tax on
"prohibited transactions" on the Trust Fund or contributions after the Startup
Date, as defined in Sections 860F(a)(2) and 860G(d) of the Code, respectively,
or (ii) cause each REMIC created hereunder to fail to qualify as a REMIC at
any time that any Certificates are outstanding.

         (b) Upon discovery by the Depositor, the Seller, the Master Servicer,
or the Trustee that any Mortgage Loan does not constitute a "qualified
mortgage" within the meaning of Section 860G(a)(3) of the Code, the party
discovering such fact shall promptly (and in any event within five (5)
Business Days of discovery) give written notice thereof to the other parties.
In connection therewith, the Trustee shall require the Seller at its option,
to either (i) substitute, if the conditions in Section 2.03(c) with respect to
substitutions are satisfied, a Substitute Mortgage Loan for the affected
Mortgage Loan, or (ii) repurchase the affected Mortgage Loan within 90 days of
such discovery in the same manner as it would a Mortgage Loan for a breach of
representation or warranty made pursuant to Section 2.03. The Trustee shall
reconvey to the Seller the Mortgage Loan to be released pursuant hereto in the
same manner, and on the same terms and conditions, as it would a Mortgage Loan
repurchased for breach of a representation or warranty contained in Section
2.03.

         SECTION 2.06. Execution and Delivery of Certificates.

         The Trustee acknowledges the transfer and assignment to it of the Trust
Fund and, concurrently with such transfer and assignment, has executed and
delivered to or upon the order of the Depositor, the Certificates in authorized
denominations evidencing directly or indirectly the entire ownership of the
Trust Fund. The Trustee agrees to hold the Trust Fund and exercise the rights
referred to above for the benefit of all present and future Holders of the
Certificates and to perform the duties set forth in this Agreement, to the end
that the interests of the Holders of the Certificates may be adequately and
effectively protected.

         SECTION 2.07. REMIC Matters.

         The Preliminary Statement sets forth the designations and "latest
possible maturity date" for federal income tax purposes of all interests
created hereby. The "Startup Day" for purposes of the REMIC Provisions shall
be the Closing Date. The "tax matters person" with respect to each REMIC
hereunder shall be the Trustee and the Trustee shall hold the Tax Matters
Person Certificate. Each REMIC's fiscal year shall be the calendar year.

         SECTION 2.08. Covenants of the Master Servicer.

         The Master Servicer hereby covenants to the Depositor and the Trustee
as follows:

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<PAGE>

                  (a) the Master Servicer shall comply in the performance of its
                  obligations under this Agreement with all reasonable rules and
                  requirements of the insurer under each Required Insurance
                  Policy; and

                  (b) no written information, certificate of an officer,
                  statement furnished in writing or written report delivered to
                  the Depositor, any affiliate of the Depositor or the Trustee
                  and prepared by the Master Servicer pursuant to this Agreement
                  will contain any untrue statement of a material fact or omit
                  to state a material fact necessary to make such information,
                  certificate, statement or report not misleading.

                                      53
<PAGE>

                                  ARTICLE III
                         ADMINISTRATION AND SERVICING
                               OF MORTGAGE LOANS

         SECTION 3.01. Master Servicer to Service Mortgage Loans.

         For and on behalf of the Certificateholders, the Master Servicer shall
service and administer the Mortgage Loans in accordance with the terms of this
Agreement and customary and usual standards of practice of prudent mortgage loan
servicers. In connection with such servicing and administration, the Master
Servicer shall have full power and authority, acting alone and/or through
Subservicers as provided in Section 3.02 hereof, subject to the terms hereof (i)
to execute and deliver, on behalf of the Certificateholders and the Trustee,
customary consents or waivers and other instruments and documents, (ii) to
consent to transfers of any Mortgaged Property and assumptions of the Mortgage
Notes and related Mortgages (but only in the manner provided in this Agreement),
(iii) to collect any Insurance Proceeds and other Liquidation Proceeds (which
for the purpose of this Section includes any Subsequent Recoveries), and (iv) to
effectuate foreclosure or other conversion of the ownership of the Mortgaged
Property securing any Mortgage Loan; provided that the Master Servicer shall not
take any action that is inconsistent with or prejudices the interests of the
Trust Fund or the Certificateholders in any Mortgage Loan or the rights and
interests of the Depositor, the Trustee and the Certificateholders under this
Agreement. The Master Servicer shall represent and protect the interests of the
Trust Fund in the same manner as it protects its own interests in mortgage loans
in its own portfolio in any claim, proceeding or litigation regarding a Mortgage
Loan, and shall not make or permit any modification, waiver or amendment of any
Mortgage Loan which would cause any REMIC created hereunder to fail to qualify
as a REMIC or result in the imposition of any tax under Section 860F(a) or
Section 860G(d) of the Code. Without limiting the generality of the foregoing,
the Master Servicer, in its own name or in the name of the Depositor and the
Trustee, is hereby authorized and empowered by the Depositor and the Trustee,
when the Master Servicer believes it appropriate in its reasonable judgment, to
execute and deliver, on behalf of the Trustee, the Depositor, the
Certificateholders or any of them, any and all instruments of satisfaction or
cancellation, or of partial or full release or discharge and all other
comparable instruments, with respect to the Mortgage Loans, and with respect to
the Mortgaged Properties held for the benefit of the Certificateholders. The
Master Servicer shall prepare and deliver to the Depositor and/or the Trustee
such documents requiring execution and delivery by either or both of them as are
necessary or appropriate to enable the Master Servicer to service and administer
the Mortgage Loans to the extent that the Master Servicer is not permitted to
execute and deliver such documents pursuant to the preceding sentence. Upon
receipt of such documents, the Depositor and/or the Trustee shall execute such
documents and deliver them to the Master Servicer. 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 appropriate
in its best judgment to register any Mortgage Loan on the MERS(R) System, or
cause the removal from the registration of any Mortgage Loan on the MERS(R)
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.

                                      54
<PAGE>

         In accordance with the standards of the preceding paragraph, the
Master Servicer shall advance or cause to be advanced funds as necessary for
the purpose of effecting the payment of taxes and assessments on the Mortgaged
Properties, which advances shall be reimbursable in the first instance from
related collections from the Mortgagors pursuant to Section 3.06, and further
as provided in Section 3.08. The costs incurred by the Master Servicer, if
any, in effecting the timely payments of taxes and assessments on the
Mortgaged Properties and related insurance premiums shall not, for the purpose
of calculating monthly distributions to the Certificateholders, be added to
the Stated Principal Balances of the related Mortgage Loans, notwithstanding
that the terms of such Mortgage Loans so permit.

         SECTION 3.02. Subservicing; Enforcement of the Obligations of
Subservicers.

         (a) The Master Servicer may arrange for the subservicing of any
Mortgage Loan by a Subservicer pursuant to a subservicing agreement; provided,
however, that such subservicing arrangement and the terms of the related
subservicing agreement must provide for the servicing of such Mortgage Loans
in a manner consistent with the servicing arrangements contemplated hereunder.
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. Notwithstanding the provisions of any subservicing agreement, any of
the provisions of this Agreement relating to agreements or arrangements
between the Master Servicer and a Subservicer or reference to actions taken
through a Subservicer or otherwise, the Master Servicer shall remain obligated
and liable to the Depositor, the Trustee and the Certificateholders for the
servicing and administration of the Mortgage Loans in accordance with the
provisions of this Agreement without diminution of such obligation or
liability by virtue of such subservicing agreements or arrangements or by
virtue of indemnification from the Subservicer 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. All actions of each
Subservicer performed pursuant to the related subservicing agreement shall be
performed as an agent of the Master Servicer with the same force and effect as
if performed directly by the Master Servicer.

         (b) For purposes of this Agreement, the Master Servicer shall be
deemed to have received any collections, recoveries or payments with respect
to the Mortgage Loans that are received by a Subservicer regardless of whether
such payments are remitted by the Subservicer to the Master Servicer.

         SECTION 3.03. Rights of the Depositor and the Trustee in Respect of
the Master Servicer.

         The Depositor may, but is not obligated to, enforce the obligations of
the Master Servicer hereunder and may, but is not obligated to, perform, or
cause a designee to perform, any defaulted obligation of the Master Servicer
hereunder and in connection with any such defaulted obligation to exercise the
related 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 Trustee nor the
Depositor shall have any responsibility or liability for any action or failure
to act by the Master Servicer nor shall the

                                      55
<PAGE>

Trustee or the Depositor be obligated to supervise the performance of the
Master Servicer hereunder or otherwise.

         SECTION 3.04. Trustee to Act as Master Servicer.

         In the event that the Master Servicer shall for any reason no longer be
the Master Servicer hereunder (including by reason of an Event of Default), the
Trustee or its successor shall thereupon assume all of the rights and
obligations of the Master Servicer hereunder arising thereafter (except that the
Trustee shall not be (i) liable for losses of the Master Servicer pursuant to
Section 3.09 hereof or any acts or omissions of the predecessor Master Servicer
hereunder), (ii) obligated to make Advances if it is prohibited from doing so by
applicable law, (iii) obligated to effectuate repurchases or substitutions of
Mortgage Loans hereunder including, but not limited to, repurchases or
substitutions of Mortgage Loans pursuant to Section 2.02 or 2.03 hereof, (iv)
responsible for expenses of the Master Servicer pursuant to Section 2.03 or (v)
deemed to have made any representations and warranties of the Master Servicer
hereunder). Any such assumption shall be subject to Section 7.02 hereof. If the
Master Servicer shall for any reason no longer be the Master Servicer (including
by reason of any Event of Default), the Trustee or its successor shall succeed
to any rights and obligations of the Master Servicer under each subservicing
agreement.

         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 or substitute subservicing
agreement and the Mortgage Loans then being serviced thereunder and an
accounting of amounts collected or held by it and otherwise use its best efforts
to effect the orderly and efficient transfer of the substitute subservicing
agreement to the assuming party.

         SECTION 3.05. Collection of Mortgage Loan Payments; Certificate
Account; Distribution Account; Class C Distribution Account.

         (a) The Master Servicer shall make reasonable efforts in accordance
with the customary and usual standards of practice of prudent mortgage
servicers to collect all payments called for under the terms and provisions of
the Mortgage Loans to the extent such procedures shall be consistent with this
Agreement and the terms and provisions of any related Required Insurance
Policy. 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 dates for payments due on a Mortgage Note for a period not
greater than 180 days; provided, however, that the Master Servicer cannot
extend the maturity of any such Mortgage Loan past the date on which the final
payment is due on the latest maturing Mortgage Loan as of the Cut-off Date. In
the event of any such arrangement, the Master Servicer shall make Advances on
the related Mortgage Loan in accordance with the provisions of Section 4.01
during the scheduled period in accordance with the amortization schedule of
such Mortgage Loan without modification thereof by reason of such
arrangements. The Master Servicer shall not be required to institute or join
in litigation with respect to collection of any payment (whether under a
Mortgage, Mortgage Note or otherwise or against any public or governmental
authority with respect to a taking or condemnation) if it

                                      56
<PAGE>

reasonably believes that enforcing the provision of the Mortgage or other
instrument pursuant to which such payment is required is prohibited by
applicable law.

         (b) The Master Servicer shall establish and maintain a Certificate
Account into which the Master Servicer shall deposit or cause to be deposited
no later than two Business Days after receipt (or, if the current long-term
credit rating of Countrywide is reduced below "A-" by S&P or "A3" by Moody's,
the Master Servicer shall deposit or cause to be deposited on a daily basis
within one Business Day of receipt), except as otherwise specifically provided
herein, the following payments and collections remitted by Subservicers or
received by it in respect of Mortgage Loans subsequent to the Cut-off Date
(other than in respect of principal and interest due on the Mortgage Loans on
or before the Cut-off Date) and the following amounts required to be deposited
hereunder:

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

               (ii) all payments on account of interest on the Mortgage Loans,
          net of the Master Servicing Fee and any lender-paid mortgage
          insurance premiums;

              (iii) all Insurance Proceeds, Subsequent Recoveries and
          Liquidation Proceeds, other than proceeds to be applied to the
          restoration or repair of the Mortgaged Property or released to the
          Mortgagor in accordance with the Master Servicer's normal servicing
          procedures;

               (iv) any amount required to be deposited by the Master Servicer
          or the Depositor pursuant to Section 3.05(e) in connection with any
          losses on Permitted Investments for which it is responsible;

               (v)  any amounts required to be deposited by the Master Servicer
          pursuant to Section 3.09(c) and in respect of net monthly rental
          income from REO Property pursuant to Section 3.11 hereof;

               (vi) all Substitution Adjustment Amounts;

              (vii) all Advances made by the Master Servicer pursuant to
          Section 4.01; and

             (viii) any other amounts required to be deposited hereunder.

         In addition, with respect to any Mortgage Loan that is subject to a
buydown agreement, on each Due Date for such Mortgage Loan, in addition to the
monthly payment remitted by the Mortgagor, the Master Servicer shall cause funds
to be deposited into the Certificate Account in an amount required to cause an
amount of interest to be paid with respect to such Mortgage Loan equal to the
amount of interest that has accrued on such Mortgage Loan from the preceding Due
Date at the Mortgage Rate net of the Master Servicing Fee.

         The foregoing requirements for remittance by the Master Servicer shall
be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, payments in the nature of prepayment penalties,
late payment charges or assumption fees, if collected, need

                                      57
<PAGE>

not be remitted by the Master Servicer. In the event that the Master Servicer
shall remit any amount not required to be remitted, it may at any time
withdraw or direct the institution maintaining the Certificate Account to
withdraw such amount from the Certificate Account, any provision herein to the
contrary notwithstanding. Such withdrawal or direction may be accomplished by
delivering written notice thereof to the Trustee or such other institution
maintaining the Certificate Account which describes the amounts deposited in
error in the Certificate Account. The Master Servicer shall maintain adequate
records with respect to all withdrawals made pursuant to this Section. All
funds deposited in the Certificate Account shall be held in trust for the
Certificateholders until withdrawn in accordance with Section 3.08.

         (c) [Reserved].

         (d) The Trustee shall establish and maintain, on behalf of the
Certificateholders, the Distribution Account. The Trustee shall, promptly upon
receipt, deposit in the Distribution Account and retain therein the following:

               (i)  the aggregate amount remitted by the Master Servicer to the
         Trustee pursuant to Section 3.08(a)(ix);

               (ii) any amount deposited by the Master Servicer pursuant to
         Section 3.05(e) in connection with any losses on Permitted
         Investments for which it is responsible; and

              (iii) any other amounts deposited hereunder which are required
         to be deposited in the Distribution Account.

         In the event that the Master Servicer shall remit any amount not
required to be remitted, it may at any time direct the Trustee to withdraw such
amount from the Distribution Account, any provision herein to the contrary
notwithstanding. Such direction may be accomplished by delivering an Officer's
Certificate to the Trustee which describes the amounts deposited in error in the
Distribution Account. All funds deposited in the Distribution Account shall be
held by the Trustee in trust for the Certificateholders until disbursed in
accordance with this Agreement or withdrawn in accordance with Section 3.08. In
no event shall the Trustee incur liability for withdrawals from the Distribution
Account at the direction of the Master Servicer.

         (e) Each institution at which the Certificate Account or the
Distribution Account is maintained shall invest the funds therein as directed
in writing by the Master Servicer, in the case of the Certificate Account, or
by the Trustee, in the case of the Distribution Account, in Permitted
Investments, which shall mature not later than (i) in the case of the
Certificate Account, the second Business Day next preceding the related Master
Servicer Remittance Date (except that if such Permitted Investment is an
obligation of the institution that maintains such account, then such Permitted
Investment shall mature not later than the Business Day next preceding such
Master Servicer Remittance Date) and (ii) in the case of the Distribution
Account, the Business Day next preceding the Distribution Date (except that if
such Permitted Investment is an obligation of the institution that maintains
such fund or account, then such Permitted Investment shall mature not later
than such Distribution Date) and, in each case, shall not be sold or disposed
of prior to its maturity. All such Permitted Investments shall be made in the
name of the Trustee, for the benefit of the Certificateholders. All income and
gain net of any

                                      58
<PAGE>

losses realized from any such investment of funds on deposit in the
Certificate Account shall be for the benefit of the Master Servicer as
servicing compensation and shall be remitted to it monthly as provided herein.
All income and gain net of any losses realized from any such investment of
funds on deposit in the Distribution Account shall be distributed in
accordance with the following paragraph for the benefit of the Trustee, as
compensation for its duties hereunder, or the Master Servicer, as servicing
compensation, and the respective portions to which each shall be entitled
shall be remitted to them monthly as provided herein. The amount of any
realized losses in the Certificate Account incurred in any such account in
respect of any such investments shall promptly be deposited by the Master
Servicer in the Certificate Account. The Trustee in its fiduciary capacity
shall not be liable for the amount of any loss incurred in respect of any
investment or lack of investment of funds held in the Certificate Account and
made in accordance with this Section 3.05.

         With respect to each Distribution Date, (1) all income and gain net of
the Trustee's portion of any losses realized from any such investment of funds
on deposit in the Distribution Account during the seven (7) calendar days
immediately following the related Master Servicer Remittance Date and (2) the
excess of (x) all investment income and gain net of the Master Servicer's
portion of any losses realized from any such investment of funds on deposit in
the Distribution Account over (y) the amount paid to the Trustee pursuant to
clause (1) of this sentence shall be for the benefit of the Master Servicer as
compensation and such amounts shall be remitted to the Trustee and Master
Servicer, respectively, monthly as provided herein. In the event that there are
any realized losses from the investment of funds on deposit in the Distribution
Account, the proportion of such realized loss payable by the Trustee and the
Master Servicer shall be allocated pursuant to the following formula: (i) with
respect to the Trustee, the product of (x) the amount of the realized loss and
(y) a fraction, the numerator of which is 5 and the denominator of which is the
actual number of days from the Master Servicer Remittance Date to and including
the Distribution Date and (ii) with respect to the Master Servicer, the product
of (x) the amount of the realized loss and (y) a fraction, not less than zero,
the numerator of which is the excess, if any, of (a) the actual number of days
from the Master Servicer Remittance Date to and including the Distribution Date
minus (b) 7, and the denominator of which is the actual number of days from the
Master Servicer Remittance Date to and including the Distribution Date. Each of
the Trustee and the Master Servicer shall promptly deposit in the Distribution
Account their respective portion of any realized loss calculated pursuant to the
preceding sentence.

         (f) The Master Servicer shall give notice to the Trustee, the Seller,
each Rating Agency and the Depositor of any proposed change of the location of
the Certificate Account prior to any change thereof. The Trustee shall give
notice to the Master Servicer, the Seller, each Rating Agency and the
Depositor of any proposed change of the location of the Distribution Account
prior to any change thereof.

         (g) The Trustee shall establish and maintain the Class C Distribution
Account and shall administer it in accordance with this Agreement. On the
Closing Date, the Trustee shall deposit $100 into the Class C Distribution
Account. The institution at which the Class C Distribution Account is
maintained shall hold such funds on deposit uninvested.

                                      59
<PAGE>

         All funds deposited in the Class C Distribution Account shall be held
by the Trustee in trust for the Holder of the Class C Certificates until
disbursed in accordance with Section 4.02(b) hereof.

         SECTION 3.06. Collection of Taxes, Assessments and Similar Items;
Escrow Accounts.

         (a) To the extent required by the related Mortgage Note and not
violative of current law, the Master Servicer shall establish and maintain one
or more accounts (each, an "Escrow Account") and deposit and retain therein
all collections from the Mortgagors (or advances by the Master Servicer) for
the payment of taxes, assessments, hazard insurance premiums or comparable
items for the account of the Mortgagors. Nothing herein shall require the
Master Servicer to compel a Mortgagor to establish an Escrow Account in
violation of applicable law.

         (b) Withdrawals of amounts so collected from the Escrow Accounts may
be made only to effect timely payment of taxes, assessments, hazard insurance
premiums, condominium or PUD association dues, or comparable items, to
reimburse the Master Servicer out of related collections for any payments made
pursuant to Sections 3.01 hereof (with respect to taxes and assessments and
insurance premiums) and 3.09 hereof (with respect to hazard insurance), to
refund to any Mortgagors any sums determined to be overages, to pay interest,
if required by law or the terms of the related Mortgage or Mortgage Note, to
Mortgagors on balances in the Escrow Account or to clear and terminate the
Escrow Account at the termination of this Agreement in accordance with Section
9.01 hereof. The Escrow Accounts shall not be a part of the Trust Fund.

         (c) The Master Servicer shall advance any payments referred to in
Section 3.06(a) that are not timely paid by the Mortgagors 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 advances, in the good faith judgment of the Master Servicer, will be
recoverable by the Master Servicer out of Insurance Proceeds, Liquidation
Proceeds or otherwise.

         SECTION 3.07. Access to Certain Documentation and Information
Regarding the Mortgage Loans.

         The Master Servicer shall afford the Seller, the Depositor and the
Trustee reasonable access to all records and documentation regarding the
Mortgage Loans and all accounts, insurance information and other matters
relating to this Agreement, such access being afforded without charge, but only
upon reasonable request and during normal business hours at the office
designated by the Master Servicer.

         Upon reasonable advance notice in writing, the Master Servicer will
provide to each Certificateholder and/or Certificate Owner which is a savings
and loan association, bank or insurance company certain reports and reasonable
access to information and documentation regarding the Mortgage Loans sufficient
to permit such Certificateholder and/or Certificate Owner to comply with
applicable regulations of the OTS or other regulatory authorities with respect
to investment in the Certificates; provided that the Master Servicer shall be
entitled to be

                                      60
<PAGE>

reimbursed by each such Certificateholder and/or Certificate Owner for actual
expenses incurred by the Master Servicer in providing such reports and access.

         SECTION 3.08. Permitted Withdrawals from the Certificate Account and
the Distribution Account.

         (a) The Master Servicer may from time to time make withdrawals from
the Certificate Account for the following purposes:

               (i)  to pay to the Master Servicer (to the extent not previously
         retained by the Master Servicer) the servicing compensation to which
         it is entitled pursuant to Section 3.14, and to pay to the Master
         Servicer, as additional servicing compensation, earnings on or
         investment income with respect to funds in or credited to the
         Certificate Account;

               (ii) to reimburse each of the Master Servicer and the Trustee
         for unreimbursed Advances made by it, such right of reimbursement
         pursuant to this subclause (ii) being limited to amounts received on
         the Mortgage Loan(s) in respect of which any such Advance was made;

              (iii) to reimburse each of the Master Servicer and the Trustee
         for any Nonrecoverable Advance previously made by it;

               (iv) to reimburse the Master Servicer for Insured Expenses from
         the related Insurance Proceeds;

               (v)  to reimburse the Master Servicer for (a) unreimbursed
         Servicing Advances, the Master Servicer's right to reimbursement
         pursuant to this clause (a) with respect to any Mortgage Loan being
         limited to amounts received on such Mortgage Loan(s) which represent
         late recoveries of the payments for which such advances were made
         pursuant to Section 3.01 or Section 3.06 and (b) for unpaid Master
         Servicing Fees as provided in Section 3.11 hereof;

               (vi) to pay to the purchaser, with respect to each Mortgage
         Loan or property acquired in respect thereof that has been purchased
         pursuant to Section 2.02, 2.03 or 3.11, all amounts received thereon
         after the date of such purchase;

              (vii) to reimburse the Seller, the Master Servicer or the
         Depositor for expenses incurred by any of them and reimbursable
         pursuant to Section 6.03 hereof;

             (viii) to withdraw any amount deposited in the Certificate
         Account and not required to be deposited therein;

               (ix) on or prior to the Master Servicer Remittance Date, to
         withdraw an amount equal to the related Available Funds for such
         Distribution Date and remit such amount to the Trustee for deposit in
         the Distribution Account; and

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<PAGE>

               (x)  to clear and terminate the Certificate Account upon
         termination of this Agreement pursuant to Section 9.01 hereof.

         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 Certificate Account pursuant to such subclauses (i), (ii),
(iv), (v) and (vi). Prior to making any withdrawal from the Certificate Account
pursuant to subclause (iii), the Master Servicer shall deliver to the Trustee an
Officer's Certificate of a Servicing Officer indicating the amount of any
previous Advance determined by the Master Servicer to be a Nonrecoverable
Advance and identifying the related Mortgage Loans(s), and their respective
portions of such Nonrecoverable Advance.

               (b) The Trustee shall withdraw funds from the Distribution
Account for distributions to Certificateholders, in the manner specified in
this Agreement (and to withhold from the amounts so withdrawn, the amount of
any taxes that it is authorized to withhold pursuant to the second to last
paragraph of Section 8.11). In addition, the Trustee may from time to time make
withdrawals from the Distribution Account for the following purposes:

               (i)  with respect to each Distribution Date, to pay to itself as
         compensation for its services hereunder any investment income earned
         on amounts on deposit in the Distribution Account during the seven
         (7) calendar days immediately following the related Master Servicer
         Remittance Date;

               (ii) with respect to each Distribution Date, to pay to the
         Master Servicer as additional servicing compensation the excess, if
         any, of the investment income earned on amounts on deposit in the
         Distribution Account over the amount paid to the Trustee pursuant to
         clause (i) above;

              (iii) to withdraw and return to the Master Servicer any amount
         deposited in the Distribution Account and not required to be
         deposited therein;

               (iv) to reimburse the Trustee for any unreimbursed Advances
         made by it pursuant to Section 4.01(b) hereof, such right of
         reimbursement pursuant to this subclause (iv) being limited to (x)
         amounts received on the related Mortgage Loan(s) in respect of which
         any such Advance was made and (y) amounts not otherwise reimbursed to
         the Trustee pursuant to Section 3.08(a)(ii) hereof;

               (v)  to reimburse the Trustee for any Nonrecoverable Advance
         previously made by the Trustee pursuant to Section 4.01(b) hereof,
         such right of reimbursement pursuant to this subclause (v) being
         limited to amounts not otherwise reimbursed to the Trustee pursuant
         to Section 3.08(a)(iii) hereof; and

               (vi) to clear and terminate the Distribution Account upon
         termination of the Agreement pursuant to Section 9.01 hereof.

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<PAGE>

         SECTION 3.09. Maintenance of Hazard Insurance; Maintenance of Primary
Insurance Policies.

         (a) The Master Servicer shall cause to be maintained, for each
Mortgage Loan, hazard insurance with extended coverage in an amount that is at
least equal to the lesser of (i) the maximum insurable value of the
improvements securing such Mortgage Loan or (ii) the greater of (y) the
outstanding principal balance of the Mortgage Loan and (z) an amount such that
the proceeds of such policy shall be sufficient to prevent the Mortgagor
and/or the mortgagee from becoming a co-insurer. Each such policy of standard
hazard insurance shall contain, or have an accompanying endorsement that
contains, a standard mortgagee clause. Any amounts collected by the Master
Servicer under any such policies (other than the amounts to be applied to the
restoration or repair of the related Mortgaged Property or amounts released to
the Mortgagor in accordance with the Master Servicer's normal servicing
procedures) shall be deposited in the Certificate Account. Any cost incurred
by the Master Servicer in maintaining any such insurance shall not, for the
purpose of calculating monthly distributions to the Certificateholders or
remittances to the Trustee for their benefit, be added to the principal
balance of the Mortgage Loan, notwithstanding that the terms of the Mortgage
Loan so permit. Such costs shall be recoverable by the Master Servicer out of
late payments by the related Mortgagor or out of Liquidation Proceeds or
Subsequent Recoveries to the extent permitted by Section 3.08 hereof. 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 other than pursuant to such applicable laws and regulations as
shall at any time be in force and as shall require such additional insurance.
If the Mortgaged Property is located at the time of origination of the
Mortgage Loan in a federally designated special flood hazard area and such
area is participating in the national flood insurance program, the Master
Servicer shall cause flood insurance to be maintained with respect to such
Mortgage Loan. Such flood insurance shall be in an amount equal to the least
of (i) the outstanding principal balance of the related Mortgage Loan, (ii)
the replacement value of the improvements which are part of such Mortgaged
Property, and (iii) the maximum amount of such insurance available for the
related Mortgaged Property under the national flood insurance program.

         (b) The Master Servicer shall not take any action which would result
in non-coverage under any applicable Primary Insurance Policy of any loss
which, but for the actions of the Master Servicer, would have been covered
thereunder. The Master Servicer shall not cancel or refuse to renew any such
Primary Insurance Policy 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 a Qualified Insurer.

         Except with respect to any Lender PMI Mortgage Loans, the Master
Servicer shall not be required to maintain any Primary Insurance Policy (i) with
respect to any Mortgage Loan with a Loan-to-Value Ratio less than or equal to
80% as of any date of determination or, based on a new appraisal, the principal
balance of such Mortgage Loan represents 80% or less of the new appraised value
or (ii) if maintaining such Primary Insurance Policy is prohibited by applicable
law. With respect to the Lender PMI Mortgage Loans, the Master Servicer shall
maintain the Primary Insurance Policy for the life of such Mortgage Loans,
unless otherwise provided for in the related Mortgage Note or prohibited by law.

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         The Master Servicer agrees to effect the timely payment of the
premiums on each Primary Insurance Policy, and such costs not otherwise
recoverable shall be recoverable by the Master Servicer from the related
liquidation proceeds and Subsequent Recoveries.

         (c) In connection with its activities as Master Servicer of the
Mortgage Loans, the Master Servicer agrees to present on behalf of itself, the
Trustee and Certificateholders, claims to the insurer under any Primary
Insurance Policies and, in this regard, to take such reasonable action as
shall be necessary to permit recovery under any Primary Insurance Policies
respecting defaulted Mortgage Loans. Any amounts collected by the Master
Servicer under any Primary Insurance Policies shall be deposited in the
Certificate Account.

         SECTION 3.10. Enforcement of Due-on-Sale Clauses; Assumption
Agreements.

         (a) Except as otherwise provided in this Section, when any property
subject to a Mortgage has been conveyed by the Mortgagor, the Master Servicer
shall to the extent that it has knowledge of such conveyance, 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. Notwithstanding the foregoing, the Master
Servicer is not required to exercise such rights with respect to a Mortgage
Loan if the Person to whom the related Mortgaged Property has been conveyed or
is proposed to be conveyed satisfies the terms and conditions contained in the
Mortgage Note and Mortgage related thereto and the consent of the mortgagee
under such Mortgage Note or Mortgage is not otherwise so required under such
Mortgage Note or Mortgage as a condition to such transfer. In the event that
the Master Servicer is prohibited by law from enforcing any such due-on-sale
clause, or if coverage under any Required Insurance Policy would be adversely
affected, or if nonenforcement is otherwise permitted hereunder, the Master
Servicer is authorized, subject to Section 3.10(b), to take or enter into an
assumption and modification agreement from or with the person to whom such
property has been or is about to be conveyed, pursuant to which such person
becomes liable under the Mortgage Note and, unless prohibited by applicable
state law, the Mortgagor remains liable thereon, provided that the Mortgage
Loan shall continue to be covered (if so covered before the Master Servicer
enters such agreement) by the applicable Required Insurance Policies. The
Master Servicer, subject to Section 3.10(b), is also authorized with the prior
approval of the insurers under any Required Insurance Policies to enter into a
substitution of liability agreement with such Person, pursuant to which the
original Mortgagor is released from liability and such Person is substituted
as Mortgagor and becomes liable under the Mortgage Note. Notwithstanding the
foregoing, the Master Servicer shall not be deemed to be in default under this
Section by reason of any transfer or assumption which the Master Servicer
reasonably believes it is restricted by law from preventing, for any reason
whatsoever.

         (b) Subject to the Master Servicer's duty to enforce any due-on-sale
clause to the extent set forth in Section 3.10(a) hereof, in any case in which
a Mortgaged Property has been conveyed to a Person by a Mortgagor, and such
Person is to enter into an assumption agreement or modification agreement or
supplement to the Mortgage Note or Mortgage that 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 shall prepare and deliver or cause to be prepared and delivered to
the Trustee for signature and shall direct, in writing, the

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Trustee to execute 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. In connection with
any such assumption, no material term of the Mortgage Note may be changed. In
addition, the substitute Mortgagor and the Mortgaged Property must be
acceptable to the Master Servicer in accordance with its underwriting
standards as then in effect. Together with each such substitution, assumption
or other agreement or instrument delivered to the Trustee for execution by it,
the Master Servicer shall deliver an Officer's Certificate signed by a
Servicing Officer stating that the requirements of this subsection have been
met in connection therewith. The Master Servicer shall notify the Trustee that
any such substitution or assumption agreement has been completed by forwarding
to the Trustee the original of such substitution or assumption agreement,
which in the case of the original shall be added to the related Mortgage File
and shall, for all purposes, be considered a part of such Mortgage File to the
same extent as all other documents and instruments constituting a part
thereof. Any fee collected by the Master Servicer for entering into an
assumption or substitution of liability agreement will be retained by the
Master Servicer as additional servicing compensation.

         SECTION 3.11. Realization Upon Defaulted Mortgage Loans; Repurchase
of Certain Mortgage Loans.

         (a) The Master Servicer shall use reasonable efforts to foreclose
upon or otherwise comparably convert the ownership of properties securing such
of the Mortgage Loans as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments.
In connection with such foreclosure or other conversion, the Master Servicer
shall follow such practices and procedures as it shall deem necessary or
advisable and as shall be normal and usual in its general mortgage servicing
activities and meet the requirements of the insurer under any Required
Insurance Policy; provided, however, that the Master Servicer shall not be
required to expend its own funds in connection with any foreclosure 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 after reimbursement to itself of such expenses and (ii) that
such expenses will be recoverable to it through Liquidation Proceeds
(respecting which it shall have priority for purposes of withdrawals from the
Certificate Account). The Master Servicer shall be responsible for all other
costs and expenses incurred by it in any such proceedings; provided, however,
that it shall be entitled to reimbursement thereof from the liquidation
proceeds and Subsequent Recoveries with respect to the related Mortgaged
Property, as provided in the definition of Liquidation Proceeds. If the Master
Servicer has knowledge that a Mortgaged Property which the Master Servicer is
contemplating acquiring in foreclosure or by deed in lieu of foreclosure is
located within a 1 mile radius of any site listed in the Expenditure Plan for
the Hazardous Substance Clean Up Bond Act of 1984 or other site with
environmental or hazardous waste risks known to the Master Servicer, the
Master Servicer will, prior to acquiring the Mortgaged Property, consider such
risks and only take action in accordance with its established environmental
review procedures.

         With respect to any REO Property, the deed or certificate of sale shall
be taken in the name of the Trustee for the benefit of the Certificateholders,
or its nominee, on behalf of the

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Certificateholders. The Trustee's name shall be placed on the title to
such REO Property solely as the Trustee hereunder and not in its individual
capacity. The Master Servicer shall ensure that the title to such REO Property
references the Pooling and Servicing Agreement and the Trustee's capacity
thereunder. Pursuant to its efforts to sell such REO Property, the Master
Servicer shall either itself or through an agent selected by the Master
Servicer protect and conserve such REO Property in the same manner and to such
extent as is customary in the locality where such REO Property is located and
may, incident to its conservation and protection of the interests of the
Certificateholders, rent the same, or any part thereof, as the Master Servicer
deems to be in the best interest of the Certificateholders for the period
prior to the sale of such REO Property. The Master Servicer shall prepare for
and deliver to the Trustee a statement with respect to each REO Property that
has been rented showing the aggregate rental income received and all expenses
incurred in connection with the maintenance of such REO Property at such times
as is necessary to enable the Trustee to comply with the reporting
requirements of the REMIC Provisions. The net monthly rental income, if any,
from such REO Property shall be deposited in the Certificate Account no later
than the close of business on each Determination Date. The Master Servicer
shall perform the tax reporting and withholding required by Sections 1445 and
6050J of the Code with respect to foreclosures and abandonments, the tax
reporting required by Section 6050H of the Code with respect to the receipt of
mortgage interest from individuals and any tax reporting required by Section
6050P of the Code with respect to the cancellation of indebtedness by certain
financial entities, by preparing such tax and information returns as may be
required, in the form required, and delivering the same to the Trustee for
filing.

         In the event that the Trust Fund acquires any Mortgaged Property as
aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Master Servicer shall dispose of such Mortgaged Property as
soon as practicable in a manner that maximizes the Liquidation Proceeds thereof,
but in no event later than three years after its acquisition by the Trust Fund.
In that event, the Trustee shall have been supplied with an Opinion of Counsel
to the effect that the holding by the Trust Fund of such Mortgaged Property
subsequent to a three-year period, if applicable, will not result in the
imposition of taxes on "prohibited transactions" of any REMIC hereunder as
defined in section 860F of the Code or cause any REMIC hereunder to fail to
qualify as a REMIC at any time that any Certificates are outstanding, the Trust
Fund may continue to hold such Mortgaged Property (subject to any conditions
contained in such Opinion of Counsel) after the expiration of such three-year
period. Notwithstanding any other provision of this Agreement, no Mortgaged
Property acquired by the Trust Fund shall be rented (or allowed to continue to
be rented) or otherwise used for the production of income by or on behalf of the
Trust Fund in such a manner or pursuant to any terms that would (i) cause such
Mortgaged Property to fail to qualify as "foreclosure property" within the
meaning of section 860G(a)(8) of the Code or (ii) subject any REMIC hereunder to
the imposition of any federal, state or local income taxes on the income earned
from such Mortgaged Property under Section 860G(c) of the Code or otherwise,
unless the Master Servicer has agreed to indemnify and hold harmless the Trust
Fund with respect to the imposition of any such taxes.

         In the event of a default on a Mortgage Loan one or more of whose
obligor is not a United States Person, as that term is defined in Section
7701(a)(30) of the Code, 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 will cause compliance with the provisions of

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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.

         The decision of the Master Servicer to foreclose on a defaulted
Mortgage Loan shall be subject to a determination by the Master Servicer that
the proceeds of such foreclosure would exceed the costs and expenses of bringing
such a proceeding. The income earned from the management of any REO Properties,
net of reimbursement to the Master Servicer for expenses incurred (including any
property or other taxes) in connection with such management and net of
unreimbursed Master Servicing Fees, Advances and Servicing Advances, shall be
applied to the payment of principal of and interest on the related defaulted
Mortgage Loans (with interest accruing as though such Mortgage Loans were still
current) and all such income shall be deemed, for all purposes in this
Agreement, to be payments on account of principal and interest on the related
Mortgage Notes and shall be deposited into the Certificate Account. To the
extent the net income received during any calendar month is in excess of the
amount attributable to amortizing principal and accrued interest at the related
Mortgage Rate on the related Mortgage Loan for such calendar month, such excess
shall be considered to be a partial prepayment of principal of the related
Mortgage Loan.

         The proceeds from any liquidation of a Mortgage Loan, as well as any
income from an REO Property, will be applied in the following order of priority:
first, to reimburse the Master Servicer for any related unreimbursed Servicing
Advances and Master Servicing Fees; second, to reimburse the Master Servicer for
any unreimbursed Advances; third, to reimburse the Certificate Account for any
Nonrecoverable Advances (or portions thereof) that were previously withdrawn by
the Master Servicer pursuant to Section 3.08(a)(iii) that related to such
Mortgage Loan; fourth, to accrued and unpaid interest (to the extent no Advance
has been made for such amount or any such Advance has been reimbursed) on the
Mortgage Loan or related REO Property, at the Adjusted Net Mortgage Rate to the
Due Date occurring in the month in which such amounts are required to be
distributed; and fifth, as a recovery of principal of the Mortgage Loan. Excess
Proceeds, if any, from the liquidation of a Liquidated Mortgage Loan will be
retained by the Master Servicer as additional servicing compensation pursuant to
Section 3.14.

         The Master Servicer, in its sole discretion, shall have the right to
purchase for its own account from the Trust Fund any Mortgage Loan which is 151
days or more delinquent at a price equal to the Purchase Price; provided,
however, that the Master Servicer may only exercise this right on or before the
next to the last day of the calendar month in which such Mortgage Loan became
151 days delinquent (such month, the "Eligible Repurchase Month"); provided
further, that any such Mortgage Loan which becomes current but thereafter
becomes delinquent may be purchased by the Master Servicer pursuant to this
Section in any ensuing Eligible Repurchase Month. The Purchase Price for any
Mortgage Loan purchased hereunder shall be deposited in the Certificate Account
and the Trustee, upon receipt of a certificate from the Master Servicer in the
form of Exhibit N hereto, shall release or cause to be released to the purchaser
of such Mortgage Loan the related Mortgage File and shall execute and deliver
such instruments of transfer or assignment prepared by the purchaser of such
Mortgage Loan, in each case without recourse, as shall be necessary to vest in
the purchaser of such Mortgage Loan any Mortgage Loan released pursuant hereto
and the purchaser of such Mortgage Loan shall succeed to all the

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<PAGE>

Trustee's right, title and interest in and to such Mortgage Loan and
all security and documents related thereto. Such assignment shall be an
assignment outright and not for security. The purchaser of such Mortgage Loan
shall thereupon own such Mortgage Loan, and all security and documents, free
of any further obligation to the Trustee or the Certificateholders with
respect thereto.

         (b) The Master Servicer may agree to a modification of any Mortgage
Loan (the "Modified Mortgage Loan") if (i) the modification is in lieu of a
refinancing and (ii) the Mortgage Rate on the Modified Mortgage Loan is
approximately a prevailing market rate for newly-originated mortgage loans
having similar terms and (iii) the Master Servicer purchases the Modified
Mortgage Loan from the Trust Fund as described below. Effective immediately
after the modification, and, in any event, on the same Business Day on which
the modification occurs, all interest of the Trustee in the Modified Mortgage
Loan shall automatically be deemed transferred and assigned to the Master
Servicer and all benefits and burdens of ownership thereof, including the
right to accrued interest thereon from the date of modification and the risk
of default thereon, shall pass to the Master Servicer. The Master Servicer
shall promptly deliver to the Trustee a certification of a Servicing Officer
to the effect that all requirements of this paragraph have been satisfied with
respect to the Modified Mortgage Loan. For federal income tax purposes, the
Trustee shall account for such purchase as a prepayment in full of the
Modified Mortgage Loan.

         The Master Servicer shall deposit the Purchase Price for any Modified
Mortgage Loan in the Certificate Account pursuant to Section 3.05 within one
Business Day after the purchase of the Modified Mortgage Loan. Upon receipt by
the Trustee of written notification of any such deposit signed by a Servicing
Officer, the Trustee shall release to the Master Servicer the related Mortgage
File and shall execute and deliver such instruments of transfer or assignment,
in each case without recourse, as shall be necessary to vest in the Master
Servicer any Modified Mortgage Loan previously transferred and assigned pursuant
hereto. The Master Servicer covenants and agrees to indemnify the Trust Fund
against any liability for any "prohibited transaction" taxes and any related
interest, additions, and penalties imposed on the Trust Fund established
hereunder as a result of any modification of a Mortgage Loan effected pursuant
to this subsection (b), any holding of a Modified Mortgage Loan by the Trust
Fund or any purchase of a Modified Mortgage Loan by the Master Servicer (but
such obligation shall not prevent the Master Servicer or any other appropriate
Person from in good faith contesting any such tax in appropriate proceedings and
shall not prevent the Master Servicer from withholding payment of such tax, if
permitted by law, pending the outcome of such proceedings). The Master Servicer
shall have no right of reimbursement for any amount paid pursuant to the
foregoing indemnification, except to the extent that the amount of any tax,
interest, and penalties, together with interest thereon, is refunded to the
Trust Fund or the Master Servicer.

         SECTION 3.12. Trustee to Cooperate; Release of Mortgage Files.

         Upon the 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 will immediately notify
the Trustee by delivering, or causing to be delivered a "Request for Release"
substantially in the form of Exhibit N. Upon receipt of such request, the
Trustee shall promptly release the related Mortgage File to the Master Servicer,
and the Trustee

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shall at the Master Servicer's direction execute and deliver to the Master
Servicer the request for reconveyance, deed of reconveyance or release or
satisfaction of mortgage or such instrument releasing the lien of the Mortgage
in each case provided by the Master Servicer, together with the Mortgage Note
with written evidence of cancellation thereon. The Master Servicer is
authorized 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. Expenses incurred in connection
with any instrument of satisfaction or deed of reconveyance shall be
chargeable to the related Mortgagor. From time to time and as shall be
appropriate for the servicing or foreclosure of any Mortgage Loan, including
for such purpose, collection under any policy of flood insurance, any fidelity
bond or errors or omissions policy, or for the purposes of effecting a partial
release of any Mortgaged Property from the lien of the Mortgage or the making
of any corrections to the Mortgage Note or the Mortgage or any of the other
documents included in the Mortgage File, the Trustee shall, upon delivery to
the Trustee of a Request for Release in the form of Exhibit M signed by a
Servicing Officer, release the Mortgage File to the Master Servicer. Subject
to the further limitations set forth below, the Master Servicer shall cause
the Mortgage File or documents so released to be returned to the Trustee when
the need therefor by the Master Servicer no longer exists, unless the Mortgage
Loan is liquidated and the proceeds thereof are deposited in the Certificate
Account, in which case the Master Servicer shall deliver to the Trustee a
Request for Release in the form of Exhibit N, signed by a Servicing Officer.

         If the Master Servicer at any time seeks to initiate a foreclosure
proceeding in respect of any Mortgaged Property as authorized by this Agreement,
the Master Servicer shall deliver or cause to be delivered to the Trustee, for
signature, as appropriate, any court pleadings, requests for trustee's sale or
other documents necessary to effectuate such foreclosure or any legal action
brought to obtain judgment against the Mortgagor on the Mortgage Note or the
Mortgage or to obtain a deficiency judgment or to enforce any other remedies or
rights provided by the Mortgage Note or the Mortgage or otherwise available at
law or in equity.

         SECTION 3.13. Documents, Records and Funds in Possession of Master
Servicer to be Held for the Trustee.

         Notwithstanding any other provisions of this Agreement, the Master
Servicer shall transmit to the Trustee as required by this Agreement all
documents and instruments in respect of a Mortgage Loan coming into the
possession of the Master Servicer from time to time and shall account fully to
the Trustee for any funds received by the Master Servicer or which otherwise are
collected by the Master Servicer as Liquidation Proceeds, Insurance Proceeds or
Subsequent Recoveries in respect of any Mortgage Loan. All Mortgage Files and
funds collected or held by, or under the control of, the Master Servicer in
respect of any Mortgage Loans, whether from the collection of principal and
interest payments or from Liquidation Proceeds and any Subsequent Recoveries,
including but not limited to, any funds on deposit in the Certificate Account,
shall be held by the Master Servicer for and on behalf of the Trustee and shall
be and remain the sole and exclusive property of the Trustee, subject to the
applicable provisions of this Agreement. The Master Servicer also agrees that it
shall not create, incur or subject any Mortgage File or any funds that are
deposited in the Certificate Account, Distribution Account or any Escrow
Account, or any funds that otherwise are or may become due or payable to the
Trustee for the

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<PAGE>

benefit of the Certificateholders, to any claim, lien, security interest,
judgment, levy, writ of attachment or other encumbrance, or assert by
legal action or otherwise any claim or right of setoff against any Mortgage
File or any funds collected on, or in connection with, a Mortgage Loan,
except, however, that the Master Servicer shall be entitled to set off against
and deduct from any such funds any amounts that are properly due and payable
to the Master Servicer under this Agreement.

         SECTION 3.14. Servicing Compensation.

         As compensation for its activities hereunder, the Master Servicer shall
be entitled to retain or withdraw from the Certificate Account an amount equal
to the Master Servicing Fee; provided, that the aggregate Master Servicing Fee
with respect to any Distribution Date shall be reduced (i) by an amount equal to
the aggregate of the Prepayment Interest Shortfalls on all of the Mortgage
Loans, if any, with respect to such Distribution Date, but not to exceed the
Compensating Interest for such Distribution Date, and (ii) with respect to the
first Distribution Date, an amount equal to any amount to be deposited into the
Distribution Account by the Depositor pursuant to Section 2.01(a) and not so
deposited.

         Additional servicing compensation in the form of Excess Proceeds,
prepayment penalties, assumption fees, late payment charges and all income and
gain net of any losses realized from Permitted Investments shall be retained by
the Master Servicer to the extent not required to be deposited in the
Certificate Account pursuant to Section 3.05 hereof. The Master Servicer shall
be required to pay all expenses incurred by it in connection with its master
servicing activities hereunder (including payment of any premiums for hazard
insurance and any Primary Insurance Policy and maintenance of the other forms of
insurance coverage required by this Agreement) and shall not be entitled to
reimbursement therefor except as specifically provided in this Agreement.

         SECTION 3.15. Access to Certain Documentation.

         The Master Servicer shall provide to the OTS and the FDIC and to
comparable regulatory authorities supervising Holders and/or Certificate Owners
and the examiners and supervisory agents of the OTS, the FDIC and such other
authorities, access to the documentation regarding the Mortgage Loans required
by applicable regulations of the OTS and the FDIC. Such access shall be afforded
without charge, but only upon reasonable and prior written request and during
normal business hours at the offices designated by the Master Servicer. Nothing
in this Section shall limit the obligation of the Master Servicer to observe any
applicable law prohibiting disclosure of information regarding the Mortgagors
and the failure of the Master Servicer to provide access as provided in this
Section as a result of such obligation shall not constitute a breach of this
Section.

         As part of its servicing activities, the Master Servicer shall furnish
in accordance with the Fair Credit Reporting Act and its implementing
regulations, accurate and complete information (i.e., favorable or unfavorable)
on its borrower credit files related to the Mortgage Loans to the nationally
recognized credit bureaus on a monthly basis.

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         SECTION 3.16. Annual Statement as to Compliance.

         The Master Servicer shall deliver to the Depositor and the Trustee on
or before 80 days after the end of the Master Servicer's fiscal year, commencing
with its 2005 fiscal year, an Officer's Certificate stating, as to the signer
thereof, that (i) a review of the activities of the Master Servicer during the
preceding calendar year and of the performance of the Master Servicer under this
Agreement has been made under such officer's supervision and (ii) to the best of
such officer's knowledge, based on such review, the Master Servicer has
fulfilled all its obligations under this Agreement throughout such year, or, if
there has been a default in the fulfillment of any such obligation, specifying
each such default known to such officer and the nature and status thereof. The
Trustee shall forward a copy of each such statement to each Rating Agency.

         SECTION 3.17. Annual Independent Public Accountants' Servicing
Statement; Financial Statements.

         On or before 80 days after the end of the Master Servicer's fiscal
year, commencing with its 2005 fiscal year, the Master Servicer at its expense
shall cause a nationally or regionally recognized firm of independent public
accountants (who may also render other services to the Master Servicer, the
Seller or any affiliate thereof) which is a member of the American Institute of
Certified Public Accountants to furnish a statement to the Trustee and the
Depositor to the effect that such firm has examined certain documents and
records relating to the servicing of the Mortgage Loans under this Agreement or
of mortgage loans under pooling and servicing agreements substantially similar
to this Agreement (such statement to have attached thereto a schedule setting
forth the pooling and servicing agreements covered thereby) and that, on the
basis of such examination, conducted substantially in compliance with the
Uniform Single Attestation Program for Mortgage Bankers or the Audit Program for
Mortgages serviced for FNMA and FHLMC, such servicing has been conducted in
compliance with such pooling and servicing agreements except for such
significant exceptions or errors in records that, in the opinion of such firm,
the Uniform Single Attestation Program for Mortgage Bankers or the Audit Program
for Mortgages serviced for FNMA and FHLMC requires it to report. In rendering
such statement, such firm may rely, as to matters relating to direct servicing
of mortgage loans by Subservicers, upon comparable statements for examinations
conducted substantially in compliance with the Uniform Single Attestation
Program for Mortgage Bankers or the Audit Program for Mortgages serviced for
FNMA and FHLMC (rendered within one year of such statement) of independent
public accountants with respect to the related Subservicer. Copies of such
statement shall be provided by the Trustee to any Certificateholder or
Certificate Owner upon request at the Master Servicer's expense, provided that
such statement is delivered by the Master Servicer to the Trustee.

         SECTION 3.18. Errors and Omissions Insurance; Fidelity Bonds.

         The Master Servicer shall for so long as it acts as master servicer
under this Agreement, obtain and maintain in force (a) a policy or policies of
insurance covering errors and omissions in the performance of its obligations as
Master Servicer hereunder and (b) a fidelity bond in respect of its officers,
employees and agents. Each such policy or policies and bond shall, together,
comply with the requirements from time to time of FNMA or FHLMC for persons
performing

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<PAGE>

servicing for mortgage loans purchased by FNMA or FHLMC. In the event
that any such policy or bond ceases to be in effect, the Master Servicer shall
obtain a comparable replacement policy or bond from an insurer or issuer,
meeting the requirements set forth above as of the date of such replacement.

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                                  ARTICLE IV
                               DISTRIBUTIONS AND
                        ADVANCES BY THE MASTER SERVICER

         SECTION 4.01. Advances.

         (a) The Master Servicer shall determine on or before each Master
Servicer Advance Date whether it is required to make an Advance pursuant to
the definition thereof. If the Master Servicer determines it is required to
make an Advance, it shall, on or before the Master Servicer Advance Date,
either (i) deposit into the Certificate Account an amount equal to the Advance
or (ii) make an appropriate entry in its records relating to the Certificate
Account that any Amount Held for Future Distribution has been used by the
Master Servicer in discharge of its obligation to make any such Advance. Any
funds so applied shall be replaced by the Master Servicer by deposit in the
Certificate Account no later than the close of business on the next Master
Servicer Advance Date. The Master Servicer shall be entitled to be reimbursed
from the Certificate Account for all Advances of its own funds made pursuant
to this Section as provided in Section 3.08. The obligation to make Advances
with respect to any Mortgage Loan shall continue if such Mortgage Loan has
been foreclosed or otherwise terminated and the related Mortgaged Property has
not been liquidated.

         (b) If the Master Servicer determines that it will be unable to
comply with its obligation to make the Advances as and when described in the
second sentence of Section 4.01(a), it shall use its best efforts to give
written notice thereof to the Trustee (each such notice a "Trustee Advance
Notice"; and such notice may be given by telecopy), not later than 3:00 P.M.,
New York time, on the Business Day immediately preceding the related Master
Servicer Advance Date, specifying the amount that it will be unable to deposit
(each such amount an "Advance Deficiency") and certifying that such Advance
Deficiency constitutes an Advance hereunder and is not a Nonrecoverable
Advance. If the Trustee receives a Trustee Advance Notice on or before 3:30
P.M., New York time on a Master Servicer Advance Date, the Trustee shall, not
later than 3:00 P.M., New York time, on the related Distribution Date, deposit
in the Distribution Account an amount equal to the Advance Deficiency
identified in such Trustee Advance Notice unless it is prohibited from so
doing by applicable law. Notwithstanding the foregoing, the Trustee shall not
be required to make such deposit if the Trustee shall have received written
notification from the Master Servicer that the Master Servicer has deposited
or caused to be deposited in the Certificate Account an amount equal to such
Advance Deficiency. All Advances made by the Trustee pursuant to this Section
4.01(b) shall accrue interest on behalf of the Trustee at the Trustee Advance
Rate from and including the date such Advances are made to but excluding the
date of repayment, with such interest being an obligation of the Master
Servicer and not the Trust Fund. The Master Servicer shall reimburse the
Trustee for the amount of any Advance made by the Trustee pursuant to this
Section 4.01(b) together with accrued interest, not later than the fifth day
following the related Master Servicer Advance Date. In the event that the
Master Servicer does not reimburse the Trustee in accordance with the
requirements of the preceding sentence, the Trustee shall have the right, but
not the obligation, to immediately (a) terminate all of the rights and
obligations of the Master Servicer under this Agreement in accordance with
Section 7.01 and (b) subject to the limitations set forth in Section 3.04,
assume all of the rights and obligations of the Master Servicer hereunder.

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         (c) The Master Servicer shall, not later than the close of business
on the second Business Day immediately preceding each Distribution Date,
deliver to the Trustee a report (in form and substance reasonably satisfactory
to the Trustee) that indicates (i) the Mortgage Loans with respect to which
the Master Servicer has determined that the related Scheduled Payments should
be advanced and (ii) the amount of the related Scheduled Payments. The Master
Servicer shall deliver to the Trustee on the related Master Servicer Advance
Date an Officer's Certificate of a Servicing Officer indicating the amount of
any proposed Advance determined by the Master Servicer to be a Nonrecoverable
Advance.

         SECTION 4.02. Priorities of Distribution.

         (a) (1) With respect to the Available Funds for Collateral Allocation
Group 1, on each Distribution Date, the Trustee shall withdraw such Available
Funds from the Distribution Account and apply such funds to distributions on
the specified Classes of Group 1 Senior Certificates in the following order
and priority and, in each case, to the extent of Available Funds for such
Collateral Allocation Group remaining:

               (i) [Reserved];

               (ii) concurrently, to each interest-bearing Class of Group 1
          Senior Certificates, an amount allocable to interest equal to the
          related Class Optimal Interest Distribution Amount, any shortfall
          being allocated among such Classes in proportion to the amount of
          the Class Optimal Interest Distribution Amount with respect to the
          Group 1 Certificates that would have been distributed in the absence
          of such shortfall, provided that prior to an Accrual Termination
          Date, the related Accrual Amount shall be distributed as provided in
          Section 4.02(a)(1)(iii);

               (iii) the Class 1-A-7 Accrual Amount shall be distributed as
          principal of the related Classes of Accretion Directed Certificates
          in accordance with the Class 1-A-7 Accretion Direction Rule;

               (iv) to each Class of Group 1 Senior Certificates,
          concurrently, as follows:

                    (x) to the Class PO Certificates an amount allocable to
               the related PO Formula Principal Amount, up to the outstanding
               Class Certificate Balance thereof; and

                    (y) on each Distribution Date, the related Non-PO Formula
               Principal Amount up to the amount of the Senior Principal
               Distribution Amount for Collateral Allocation Group 1 for such
               Distribution Date, will be distributed sequentially, in the
               following order of priority:

                         1. to the Class A-R Certificates, until its Class
                    Certificate Balance is reduced to zero;

                         2. concurrently, to the Class 1-A-9 Certificates, the
                    Class 1-A-10-1 Component and the Class 1-A-10-2 Component,
                    pro rata, the Class 1-A-9 and Class 1-A-10 Priority
                    Amount, until their respective

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                    Class Certificate Balances or Component Balances, as the
                    case may be, are reduced to zero;

                         3. to the Class 1-A-8 Certificates, the Class 1-A-8
                    Priority Amount, until its Class Certificate Balance is
                    reduced to zero;

                         4. concurrently, to the Class 1-A-1 and Class 1-A-6
                    Certificates, pro rata, until their respective Class
                    Certificate Balances are reduced to zero;

                         5. to the Class 1-A-7 Certificates, until its Class
                    Certificate Balance is reduced to zero;

                         6. to the Class 1-A-2 Certificates, until its Class
                    Certificate Balance is reduced to zero;

                         7. concurrently, to the Class 1-A-3, Class 1-A-4 and
                    Class 1-A-5 Certificates, pro rata, until their respective
                    Class Certificate Balances are reduced to zero;

                         8. to the Class 1-A-8 Certificates, without regard to
                    the Class 1-A-8 Priority Amount, until its Class
                    Certificate Balance is reduced to zero; and

                         9. concurrently, to the Class 1-A-9 Certificates, the
                    Class 1-A-10-1 Component and the Class 1-A-10 2 Component,
                    pro rata, without regard to the Class 1-A-9 and Class
                    1-A-10 Priority Amount, until their respective Class
                    Certificate Balances or Component Balances, as the case
                    may be, are reduced to zero; and

               (v)  to the Class PO Certificates, any Class PO Deferred Amount,
          up to an amount not to exceed the amount calculated pursuant to
          clause (A) of the definition of the Subordinated Principal
          Distribution Amount actually received or advanced for such
          Distribution Date (with such amount to be allocated first from
          amounts calculated pursuant to (A)(i) and (ii) then (iii) of the
          definition of Subordinated Principal Distribution Amount).

               (2)  With respect to the Available Funds for Collateral
         Allocation Group 2 on each Distribution Date, the Trustee shall
         withdraw such Available Funds from the Distribution Account and apply
         such funds to distributions on the specified Classes of Group 2 Senior
         Certificates in the following order of priority, and in each case, to
         the extent of Available Funds for such Collateral Allocation Group
         remaining:

               (i)  [Reserved];

               (ii) concurrently, to each interest-bearing Class of Group 2
          Senior Certificates, an amount allocable to interest equal to the
          related Class Optimal Interest Distribution Amount, any shortfall
          being allocated among such Classes in proportion to the amount of

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          the Class Optimal Interest Distribution Amount with respect to the
          Group 2 Certificates that would have been distributed in the absence
          of such shortfall, provided that prior to the Accrual Termination
          Date, the Accrual Amount shall be distributed as provided in Section
          4.02(a)(2)(iii);

               (iii) [Reserved];

               (iv) to each Class of Group 2 Senior Certificates, concurrently
          as follows:

                    (x) [Reserved]; and

                    (y) on each Distribution Date, the related Non-PO
               Formula Principal Amount, up to the amount of the Senior
               Principal Distribution Amount for Collateral Allocation
               Group 2 for such Distribution Date, will be distributed
               concurrently to the Class 2-A-1 and Class 2-A-2
               Certificates, pro rata, until their respective Class
               Certificate Balances are reduced to zero; and

               (v)  [Reserved].

               (3)  On each Distribution Date, after making the distributions
          described in Section 4.02(a)(1) and Section 4.02(a)(2) above, the
          remaining Available Funds from each Collateral Allocation Group will
          be distributed to the Senior Certificates to the extent provided in
          Section 4.05 hereof.

               (4)  On each Distribution Date, Available Funds from all of the
          Collateral Allocation Groups remaining after making the
          distributions described in Section 4.02(a)(1), Section 4.02(a)(2)
          and Section 4.02(a)(3) above, will be distributed to the
          Subordinated Certificates and the Class A-R Certificates in the
          following order and priority and, in each case, to the extent of
          such funds remaining:

                    (A) to the Class M Certificates, an amount allocable to
                    interest equal to the Class Optimal Interest Distribution
                    Amount for such Class for such Distribution Date;

                    (B) to the Class M Certificates, an amount allocable to
                    principal equal to its Pro Rata Share for such Distribution
                    Date until the Class Certificate Balance thereof is reduced
                    to zero;

                    (C) to the Class B-1 Certificates, an amount allocable to
                    interest equal to the Class Optimal Interest Distribution
                    Amount for such Class for such Distribution Date;

                    (D) to the Class B-1 Certificates, an amount allocable to
                    principal equal to its Pro Rata Share for such Distribution
                    Date until the Class Certificate Balance thereof is reduced
                    to zero;

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                    (E) to the Class B-2 Certificates, an amount
                    allocable to interest equal to the Class Optimal
                    Interest Distribution Amount for such Class for such
                    Distribution Date;

                    (F) to the Class B-2 Certificates, an amount
                    allocable to principal equal to its Pro Rata Share
                    for such Distribution Date until the Class
                    Certificate Balance thereof is reduced to zero;

                    (G) to the Class B-3 Certificates, an amount
                    allocable to interest equal to the amount of the
                    Class Optimal Interest Distribution Amount for such
                    Class for such Distribution Date;

                    (H) to the Class B-3 Certificates, an amount
                    allocable to principal equal to its Pro Rata Share
                    for such Distribution Date until the Class
                    Certificate Balance thereof is reduced to zero;

                    (I) to the Class B-4 Certificates, an amount
                    allocable to interest equal to the amount of the
                    Class Optimal Interest Distribution Amount for such
                    Class for such Distribution Date;

                    (J) to the Class B-4 Certificates, an amount
                    allocable to principal equal to its Pro Rata Share
                    for such Distribution Date until the Class
                    Certificate Balance thereof is reduced to zero;

                    (K) to the Class B-5 Certificates, an amount
                    allocable to interest equal to the Class Optimal
                    Interest Distribution Amount for such Class for such
                    Distribution Date;

                    (L) to the Class B-5 Certificates, an amount
                    allocable to principal equal to its Pro Rata Share
                    for such Distribution Date until the Class
                    Certificate Balance thereof is reduced to zero; and

                    (M) to the Class A-R Certificates, any remaining
                    funds in the Trust Fund.

         On any Distribution Date, amounts distributed in respect of Class PO
Deferred Amounts will not reduce the Class Certificate Balance of the Class PO
Certificates.

         On any Distribution Date, to the extent the Amount Available for Senior
Principal for a Collateral Allocation Group is insufficient to make the full
distribution required to be made pursuant to clause (a)(1)(iv)(x) or
(a)(2)(iv)(x), as applicable, (A) the amount distributable on the Class PO
Certificates in respect of principal pursuant to such subclause shall be equal
to the product of (1) the related Amount Available for Senior Principal and (2)
a fraction, the numerator of which is the related PO Formula Principal Amount
and the denominator of which is the sum of such PO Formula Principal Amount and
the related Senior Principal Distribution Amount and (B) the amount
distributable on the Senior Certificates of the related Senior Certificate
Group, other than the Class PO Certificates, if applicable, in respect of
principal shall be equal to the product of (1) the Amount Available for Senior
Principal for such Collateral

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Allocation Group and (2) a fraction, the numerator of which is such Senior
Principal Distribution Amount and the denominator of which is the sum of such
Senior Principal Distribution Amount and the related PO Formula Principal
Amount.

         (b) On the earlier of (i) the termination of the Trust Fund and (ii)
the first Distribution Date following the Distribution Date on which the
aggregate Class Certificate Balance of the Senior Certificates is reduced to
zero, the funds held in the Class C Distribution Account shall be distributed
to the holders of the Class C Certificates.

         (c) On each Distribution Date prior to and including the applicable
Accrual Termination Date with respect to each Class or Component of Accrual
Certificates, the Accrual Amount for such Class or Component for such
Distribution Date shall not (except as provided in the second to last sentence
in this paragraph) be distributed as interest with respect to such Class or
Component of Accrual Certificates but shall instead be added to the related
Class Certificate Balance of such Class on the related Distribution Date. With
respect to any Distribution Date prior to and including the applicable Accrual
Termination Date on which principal payments on any Class or Component of
Accrual Certificates are distributed pursuant to Section 4.02(a)(1)(iv) or
Section 4.02(a)(2)(iv), as applicable, the related Accrual Amount shall be
deemed to have been added on such Distribution Date to the related Class
Certificate Balance of such Class or Component of Accrual Certificates (and
included in the amount distributable on the related Class or Classes or
Component of Accretion Directed Certificates pursuant to Section
4.02(a)(1)(iv) or Section 4.02(a)(2)(iv), as applicable, for such Distribution
Date) and the related distribution thereon shall be deemed to have been
applied concurrently towards the reduction of all or a portion of the amount
so added and, to the extent of any excess, towards the reduction of the Class
Certificate Balance or Component Balance of such Class or Component of Accrual
Certificates immediately prior to such Distribution Date. Notwithstanding any
such distribution, the Accrual Certificates shall continue to be a Class of
Accrual Certificates on each subsequent Distribution Date until the applicable
Accrual Termination Date.

         (d) On each Distribution Date on or after the Senior Credit Support
Depletion Date, notwithstanding the allocation and priorities set forth in
Section 4.02(a)(1)(iv)(y), the portion of Available Funds available to be
distributed as principal of the Group 1 Senior Certificates (other than the
Class PO Certificates) shall be distributed concurrently, as principal, on the
related Classes, pro rata, on the basis of their respective Class Certificate
Balances, until the Class Certificate Balances thereof are reduced to zero.

         (e) On each Distribution Date, the amount referred to in clause (i)
of the definition of Class Optimal Interest Distribution Amount for each Class
of Certificates for such Distribution Date shall be reduced for each Class of
Senior Certificates of a Senior Certificate Group and each Class of
Subordinated Certificates by (i) the related Class' pro rata share of the
Applicable Fractions of the Net Prepayment Interest Shortfalls for such
Collateral Allocation Group based (x) with respect to a Class of Senior
Certificates on the related Class Optimal Interest Distribution Amount and (y)
with respect to a Class of Subordinated Certificates on and prior to the
Senior Termination Date on the Assumed Interest Amount or after the Senior
Termination Date, the related Class Optimal Interest Distribution Amount for
such Distribution Date, without taking into account such Net Prepayment
Interest Shortfalls and (ii) the related Class' Allocable Share of the
Applicable Fractions of (A) the interest portion of a Debt Service

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Reduction and (B) each Relief Act Reduction for the Mortgage Loans
related to such Collateral Allocation Group (or after the Senior Credit
Support Depletion Date, any Mortgage Loan) incurred during the calendar month
preceding the month of such Distribution Date.

         (f) Notwithstanding the priority and allocation contained in Section
4.02(a)(4), if, on any Distribution Date, with respect to any Class of
Subordinated Certificates (other than the Class of Subordinated Certificates
then outstanding with the highest priority of distribution), the sum of the
related Class Subordination Percentages of such Class and of all Classes of
Subordinated Certificates which have a lower payment priority than such Class
(the "Applicable Credit Support Percentage") is less than the Original
Applicable Credit Support Percentage for such Class, no distribution of
Principal Prepayments will be made to any such Classes (the "Restricted
Classes") and the amount of such Principal Prepayments otherwise distributable
to the Restricted Classes shall be distributed to any Classes of Subordinated
Certificates having higher payment priorities than such Class, pro rata, based
on their respective Class Certificate Balances immediately prior to such
Distribution Date and shall be distributed in the sequential order provided in
Section 4.02(a)(4).

         (g) If Subsequent Recoveries have been received with respect to a
Liquidated Mortgage Loan, the amount of such Subsequent Recoveries will be
applied sequentially, in the order of payment priority, to increase the Class
Certificate Balance of each Class of Certificates to which Realized Losses
have been allocated, but in each case by not more than the amount of Realized
Losses previously allocated to that Class of Certificates pursuant to Section
4.04. Holders of such Certificates will not be entitled to any payment in
respect of the Class Optimal Interest Distribution Amount on the amount of
such increases for any Interest Accrual Period preceding the Distribution Date
on which such increase occurs. Any such increases shall be applied pro rata to
the Certificate Balance of each Certificate of such Class.

         SECTION 4.03. [Reserved]

         SECTION 4.04. Allocation of Realized Losses.

         (a) On or prior to each Determination Date, the Trustee shall
determine the total amount of Realized Losses with respect to the related
Distribution Date. For purposes of allocating losses to the Subordinated
Certificates, the Class M Certificates will be deemed to have a lower
numerical Class designation, and to be of a higher relative payment priority,
than each other Class of Subordinated Certificates.

         Realized Losses with respect to any Distribution Date shall be
allocated as follows:

               (i)   the applicable PO Percentage of any Realized Loss on a
         Discount Mortgage Loan in Collateral Allocation Group 1 shall be
         allocated to the Class PO Certificates, until the Class Certificate
         Balance thereof is reduced to zero; and

               (ii)  the applicable Non-PO Percentage of any Realized Loss,
         allocated by Applicable Fraction to each Collateral Allocation Group,
         shall be allocated first to the Subordinated Certificates in reverse
         order of their payment priority (beginning with the Class of
         Subordinated Certificates then outstanding with the lowest payment
         priority) until the respective Class Certificate Balance of each such
         Class is reduced to zero, and

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         second to the related Senior Certificates (other than any
         Notional Amount Certificates and the Class PO Certificates, if
         applicable), pro rata on the basis of their respective Class
         Certificate Balances or, in the case of any Class of Accrual
         Certificates or Accrual Component, on the basis of the lesser of
         their respective Class Certificate Balance or Component Balance, as
         applicable, and their respective initial Class Certificate Balances
         or Component Balance, as applicable, in each case immediately prior
         to the related Distribution Date, until the respective Class
         Certificate Balance or Component Balance of each such Class or
         Component is reduced to zero; provided, however, that the applicable
         Non-PO Percentage of any Realized Losses on the Mortgage Loans that
         would otherwise be allocated to the Class 1-A-8 and Class 1-A-9
         Certificates will instead be allocated concurrently to the Class
         1-A-10-1 Component and the Class 1-A-10-2 Component, respectively, in
         each case until the Component Balance of such Component is reduced to
         zero.

         (b) The Class Certificate Balance of the Class of Subordinated
Certificates then outstanding with the lowest payment priority shall be
reduced on each Distribution Date by the sum of (i) the amount of any payments
on the Class PO Certificates in respect of Class PO Deferred Amounts and (ii)
the amount, if any, by which the aggregate of the Class Certificate Balances
of all outstanding Classes of Certificates (after giving effect to the
distribution of principal and the allocation of Realized Losses and Class PO
Deferred Amounts on such Distribution Date) exceeds the sum of the Pool Stated
Principal Balance for the following Distribution Date.

         (c) Any Realized Losses allocated to a Class of Certificates or any
reduction in the Class Certificate Balance of a Class of Certificates pursuant
to Section 4.04(a) above shall be allocated among the Certificates of such
Class in proportion to their respective Certificate Balances.

         (d) Any allocation of Realized Losses to a Certificate or to any
Component or any reduction in the Certificate Balance of a Certificate,
pursuant to Section 4.04(a) above shall be accomplished by reducing the
Certificate Balance or Component Balance thereof, as applicable, immediately
following the distributions made on the related Distribution Date in
accordance with the definition of "Certificate Balance" or "Component
Balance," as the case may be. Except as provided in Section 4.04(a)(i) above,
all Realized Losses or Excess Losses allocated to a Class of Component
Certificates will be allocated pro rata to the related Components.

         SECTION 4.05. Cross-Collateralization

         If on any Distribution Date the aggregate Class Certificate Balance of
a Senior Certificate Group, other than the Class PO Certificates, if applicable,
after giving effect to distributions to be made on that Distribution Date, is
greater than the Non-PO Pool Balance for the related Collateral Allocation Group
(the "Undercollateralized Group"), then the Trustee shall reduce the Available
Funds of the other Collateral Allocation Group that is not undercollateralized
(the "Overcollateralized Group"), and distribute such funds as follows:

         (1) to add to the Available Funds of the Undercollateralized Group an
         amount equal to the Available Funds of the Overcollateralized Group
         remaining after making distributions

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         to the Senior Certificate Group of the Overcollateralized Group on
         such Distribution Date pursuant to Section 4.02; and

         (2) to the Senior Certificate Group, other than the Class PO
         Certificates, if applicable, if any, of the Undercollateralized Group,
         to the extent of the principal portion of Available Funds of the
         Overcollateralized Group remaining after making distributions to the
         Senior Certificate Group of the Overcollateralized Group on such
         Distribution Date pursuant to Section 4.02, until the aggregate Class
         Certificate Balance of the Senior Certificate Group, other than the
         Class PO Certificates, if applicable, of such Undercollateralized Group
         equals the Non-PO Pool Balance in the related Collateral Allocation
         Group(s).

         SECTION 4.06. Monthly Statements to Certificateholders.

         (a) Concurrently with each distribution on a Distribution Date, the
Trustee will forward by electronic delivery to each Rating Agency and make
available to Certificateholders on the Trustee's website
(http://www.bnyinvestorreporting.com) a statement generally setting forth the
following information:

               (i)  the amount thereof allocable to principal, separately
         identifying the aggregate amount of any Principal Prepayments,
         Liquidation Proceeds and Subsequent Recoveries included therein;

               (ii) the amount thereof allocable to interest, any Class Unpaid
         Interest Amounts included in such distribution and any remaining
         Class Unpaid Interest Amounts after giving effect to such
         distribution;

              (iii) 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 and the allocation thereof as between
         principal and interest;

               (iv) the Class Certificate Balance or Notional Amount of each
         Class of Certificates after giving effect to the distribution of
         principal on such Distribution Date;

               (v)  the Pool Stated Principal Balance and each Collateral
         Allocation Group Principal Balance for the following Distribution
         Date;

               (vi) each Senior Percentage and Subordinated Percentage for the
         following Distribution Date;

              (vii) the amount of the Master Servicing Fees paid to or
         retained by the Master Servicer with respect to such Distribution
         Date;

             (viii) the Pass-Through Rate for each Class of Certificates
         with respect to such Distribution Date;

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               (ix) the amount of Advances included in the distribution on
         such Distribution Date and the aggregate amount of Advances
         outstanding as of the close of business on such Distribution Date;

               (x)  the number and aggregate principal amounts of Mortgage
         Loans (A) delinquent (exclusive of Mortgage Loans in foreclosure) (1)
         1 to 30 days (2) 31 to 60 days (3) 61 to 90 days and (4) 91 or more
         days and (B) in foreclosure and delinquent (1) 1 to 30 days (2) 31 to
         60 days (3) 61 to 90 days and (4) 91 or more days, as of the close of
         business on the last day of the calendar month preceding such
         Distribution Date;

               (xi) with respect to any Mortgage Loan that became an REO
         Property during the preceding calendar month, the loan number and
         Stated Principal Balance of such Mortgage Loan as of the close of
         business on the Determination Date preceding such Distribution Date
         and the date of acquisition thereof;

              (xii) the total number and principal balance of any REO
         Properties (and market value, if available) as of the close of
         business on the Determination Date preceding such Distribution Date;

             (xiii) each Senior Prepayment Percentage for the following
         Distribution Date; and

              (xiv) the aggregate amount of Realized Losses incurred during
         the preceding calendar month and the aggregate amount of Subsequent
         Recoveries, if any, reducing Realized Losses from preceding calendar
         months.

         (b) The Trustee's responsibility for disbursing the above information
to the Certificateholders is limited to the availability, timeliness and
accuracy of the information provided by the Master Servicer.

         (c) On or before the fifth Business Day following the end of each
Prepayment Period (but in no event later than the third Business Day prior to
the related Distribution Date), the Master Servicer shall deliver to the
Trustee (which delivery may be by electronic data transmission) a report in
substantially the form set forth as Schedule VI hereto.

         (d) Within a reasonable period of time after the end of each calendar
year, the Trustee shall cause to be furnished to each Person who at any time
during the calendar year was a Certificateholder, a statement containing the
information set forth in clauses (a)(i), (a)(ii) and (a)(vii) of this Section
4.06 aggregated for such calendar year or applicable portion thereof during
which such Person was a Certificateholder. Such obligation of the Trustee
shall be deemed to have been satisfied to the extent that substantially
comparable information shall be provided by the Trustee pursuant to any
requirements of the Code as from time to time in effect.

         SECTION 4.07. Determination of Pass-Through Rates for COFI
Certificates.

         The Pass-Through Rate for each Class of COFI Certificates for each
Interest Accrual Period after the initial Interest Accrual Period shall be
determined by the Trustee as provided below on the basis of the Index and the
applicable formulae appearing in footnotes

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corresponding to the COFI Certificates in the table relating to the
Certificates in the Preliminary Statement.

         Except as provided below, with respect to each Interest Accrual Period
following the initial Interest Accrual Period, the Trustee shall not later than
two Business Days prior to such Interest Accrual Period but following the
publication of the applicable Index determine the Pass-Through Rate at which
interest shall accrue in respect of the COFI Certificates during the related
Interest Accrual Period.

         Except as provided below, the Index to be used in determining the
respective Pass-Through Rates for the COFI Certificates for a particular
Interest Accrual Period shall be COFI for the second calendar month preceding
the Outside Reference Date for such Interest Accrual Period. If at the Outside
Reference Date for any Interest Accrual Period, COFI for the second calendar
month preceding such Outside Reference Date has not been published, the Trustee
shall use COFI for the third calendar month preceding such Outside Reference
Date. If COFI for neither the second nor third calendar months preceding any
Outside Reference Date has been published on or before the related Outside
Reference Date, the Index for such Interest Accrual Period and for all
subsequent Interest Accrual Periods shall be the National Cost of Funds Index
for the third calendar month preceding such Interest Accrual Period (or the
fourth preceding calendar month if such National Cost of Funds Index for the
third preceding calendar month has not been published by such Outside Reference
Date). In the event that the National Cost of Funds Index for neither the third
nor fourth calendar months preceding an Interest Accrual Period has been
published on or before the related Outside Reference Date, then for such
Interest Accrual Period and for each succeeding Interest Accrual Period, the
Index shall be LIBOR, determined in the manner set forth below.

         With respect to any Interest Accrual Period for which the applicable
Index is LIBOR, LIBOR for such Interest Accrual Period will be established by
the Trustee on the related Interest Determination Date as provided in Section
4.08.

         In determining LIBOR and any Pass-Through Rate for the COFI
Certificates or any Reserve Interest Rate, the Trustee may conclusively rely and
shall be protected in relying upon the offered quotations (whether written, oral
or on the Reuters Screen) from the Reference Banks or the New York City banks as
to LIBOR or the Reserve Interest Rate, as appropriate, in effect from time to
time. The Trustee shall not have any liability or responsibility to any Person
for (i) the Trustee's selection of New York City banks for purposes of
determining any Reserve Interest Rate or (ii) its inability, following a
good-faith reasonable effort, to obtain such quotations from the Reference Banks
or the New York City banks or to determine such arithmetic mean, all as provided
for in this Section 4.07.

         The establishment of LIBOR and each Pass-Through Rate for the COFI
Certificates by the Trustee shall (in the absence of manifest error) be final,
conclusive and binding upon each Holder of a Certificate and the Trustee.

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         SECTION 4.08. Determination of Pass-Through Rates for LIBOR
Certificates.

         (a) On each Interest Determination Date for a Class of LIBOR
Certificates, so long as any such LIBOR Certificates are outstanding, the
Trustee will determine LIBOR on the basis of the British Bankers' Association
("BBA") "Interest Settlement Rate" for one-month deposits in U.S. dollars as
found on Telerate page 3750 as of 11:00 a.m. London time on each LIBOR
Determination Date. "Telerate Page 3750" means the display page currently so
designated on the Moneyline Telerate Service (formerly the Dow Jones Markets)
(or such other page as may replace that page on that service for the purpose
of displaying comparable rates or prices).

         (b) If on any Interest Determination Date, LIBOR cannot be determined
as provided in paragraph (A) of this Section 4.08, the Trustee shall either
(i) request each Reference Bank to inform the Trustee of the quotation offered
by its principal London office for making one-month United States dollar
deposits in leading banks in the London interbank market, as of 11:00 a.m.
(London time) on such Interest Determination Date or (ii) in lieu of making
any such request, rely on such Reference Bank quotations that appear at such
time on the Reuters Screen LIBO Page (as defined in the International Swap
Dealers Association Inc. Code of Standard Wording, Assumptions and Provisions
for Swaps, 1986 Edition), to the extent available. LIBOR for a Class of LIBOR
Certificates for the next Interest Accrual Period will be established by the
Trustee on each interest Determination Date as follows:

               (i)  If on any Interest Determination Date two or more Reference
         Banks provide such offered quotations, LIBOR for the next applicable
         Interest Accrual Period shall be the arithmetic mean of such offered
         quotations (rounding such arithmetic mean upwards if necessary to the
         nearest whole multiple of 1/32%).

               (ii) If on any Interest Determination Date only one or none of
         the Reference Banks provides such offered quotations, LIBOR for the
         next Interest Accrual Period shall be whichever is the higher of (i)
         LIBOR as determined on the previous Interest Determination Date or
         (ii) the Reserve Interest Rate. The "Reserve Interest Rate" shall be
         the rate per annum which the Trustee determines to be either (i) the
         arithmetic mean (rounded upwards if necessary to the nearest whole
         multiple of 1/32%) of the one-month United States dollar lending
         rates that New York City banks selected by the Trustee are quoting,
         on the relevant Interest Determination Date, to the principal London
         offices of at least two of the Reference Banks to which such
         quotations are, in the opinion of the Trustee, being so made, or (ii)
         in the event that the Trustee can determine no such arithmetic mean,
         the lowest one-month United States dollar lending rate which New York
         City banks selected by the Trustee are quoting on such Interest
         Determination Date to leading European banks.

              (iii) If on any Interest Determination Date the Trustee is
         required but is unable to determine the Reserve Interest Rate in the
         manner provided in paragraph (b) above, LIBOR for the related Classes
         of Certificates shall be LIBOR as determined on the preceding
         applicable Interest Determination Date. If on the initial LIBOR
         Determination date, the Trustee is required but unable to determine
         LIBOR in the manner provided above, LIBOR for the next Interest
         Accrual Period shall be 3.34%.

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         Until all of the LIBOR Certificates are paid in full, the Trustee will
at all times retain at least four Reference Banks for the purpose of determining
LIBOR with respect to each Interest Determination Date. The Master Servicer
initially shall designate the Reference Banks. Each "Reference Bank" shall be a
leading bank engaged in transactions in Eurodollar deposits in the international
Eurocurrency market, shall not control, be controlled by, or be under common
control with, the Trustee and shall have an established place of business in
London. If any such Reference Bank should be unwilling or unable to act as such
or if the Master Servicer should terminate its appointment as Reference Bank,
the Trustee shall promptly appoint or cause to be appointed another Reference
Bank. The Trustee shall have no liability or responsibility to any Person for
(i) the selection of any Reference Bank for purposes of determining LIBOR or
(ii) any inability to retain at least four Reference Banks which is caused by
circumstances beyond its reasonable control.

         (c) The Pass-Through Rate for each Class of LIBOR Certificates for
each Interest Accrual Period shall be determined by the Trustee on each
Interest Determination Date so long as the LIBOR Certificates are outstanding
on the basis of LIBOR and the respective formulae appearing in footnotes
corresponding to the LIBOR Certificates in the table relating to the
Certificates in the Preliminary Statement.

         In determining LIBOR, any Pass-Through Rate for the LIBOR Certificates,
any Interest Settlement Rate, or any Reserve Interest Rate, the Trustee may
conclusively rely and shall be protected in relying upon the offered quotations
(whether written, oral or on the Dow Jones Markets) from the BBA designated
banks, the Reference Banks or the New York City banks as to LIBOR, the Interest
Settlement Rate or the Reserve Interest Rate, as appropriate, in effect from
time to time. The Trustee shall not have any liability or responsibility to any
Person for (i) the Trustee's selection of New York City banks for purposes of
determining any Reserve Interest Rate or (ii) its inability, following a
good-faith reasonable effort, to obtain such quotations from, the BBA designated
banks, the Reference Banks or the New York City banks or to determine such
arithmetic mean, all as provided for in this Section 4.08.

         The establishment of LIBOR and each Pass-Through Rate for the LIBOR
Certificates by the Trustee shall (in the absence of manifest error) be final,
conclusive and binding upon each Holder of a Certificate and the Trustee

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                                   ARTICLE V
                               THE CERTIFICATES

         SECTION 5.01. The Certificates.

         The Certificates shall be substantially in the forms attached hereto
as exhibits. The Certificates shall be issuable in registered form, in the
minimum denominations, integral multiples in excess thereof (except that one
Certificate in each Class may be issued in a different amount which must be in
excess of the applicable minimum denomination) and aggregate denominations per
Class set forth in the Preliminary Statement.

         Subject to Section 9.02 hereof respecting the final distribution on the
Certificates, on each Distribution Date the Trustee shall make distributions to
each Certificateholder of record on the preceding Record Date either (x) by wire
transfer in immediately available funds to the account of such holder at a bank
or other entity having appropriate facilities therefor, if (i) such Holder has
so notified the Trustee at least five Business Days prior to the related Record
Date and (ii) such Holder shall hold (A) a Notional Amount Certificate, (B) 100%
of the Class Certificate Balance of any Class of Certificates or (C)
Certificates of any Class with aggregate principal Denominations of not less
than $1,000,000 or (y) by check mailed by first class mail to such
Certificateholder at the address of such holder appearing in the Certificate
Register.

         The Certificates shall be executed by manual or facsimile signature on
behalf of the Trustee by an authorized officer. Certificates bearing the manual
or facsimile signatures of individuals who were, at the time when such
signatures were affixed, authorized to sign on behalf of the Trustee shall bind
the Trustee, notwithstanding that such individuals or any of them have ceased to
be so authorized prior to the countersignature and delivery of such Certificates
or did not hold such offices at the date of such Certificate. No Certificate
shall be entitled to any benefit under this Agreement, or be valid for any
purpose, unless countersigned by the Trustee by manual signature, and such
countersignature upon any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly executed and delivered hereunder.
All Certificates shall be dated the date of their countersignature. On the
Closing Date, the Trustee shall countersign the Certificates to be issued at the
direction of the Depositor, or any affiliate thereof.

         The Depositor shall provide, or cause to be provided, to the Trustee on
a continuous basis, an adequate inventory of Certificates to facilitate
transfers.

         SECTION 5.02. Certificate Register; Registration of Transfer and
Exchange of Certificates.

         (a) The Trustee shall maintain, or cause to be maintained in
accordance with the provisions of Section 5.06 hereof, a Certificate Register
for the Trust Fund in which, subject to the provisions of subsections (b) and
(c) below and 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. Upon surrender for registration
of transfer of any Certificate, the Trustee shall execute and deliver, in the
name of the designated transferee or transferees, one or more new Certificates
of the same Class and aggregate Percentage Interest.

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<PAGE>

         At the option of a Certificateholder, Certificates may be exchanged
for other Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest upon surrender of the
Certificates to be exchanged at the office or agency of the Trustee. Whenever
any Certificates are so surrendered for exchange, the Trustee shall execute,
authenticate, and deliver the Certificates which the Certificateholder making
the exchange is entitled to receive. Every Certificate presented or
surrendered for registration of transfer or exchange shall be accompanied by a
written instrument of transfer in form satisfactory to the Trustee duly
executed by the holder thereof or his attorney duly authorized in writing.

         No service charge to the Certificateholders shall be made for any
registration of transfer or exchange of Certificates, but 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 may be required.

         All Certificates surrendered for registration of transfer or exchange
shall be cancelled and subsequently destroyed by the Trustee in accordance with
the Trustee's customary procedures.

         (b) No transfer of a Private Certificate shall be made unless such
transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under said Act and such state securities laws. In
the event that a transfer is to be made in reliance upon an exemption from the
Securities Act and such laws, in order to assure compliance with the
Securities Act and such laws, the Certificateholder desiring to effect such
transfer and such Certificateholder's prospective transferee shall each
certify to the Trustee in writing the facts surrounding the transfer in
substantially the forms set forth in Exhibit J (the "Transferor Certificate")
and (i) deliver a letter in substantially the form of either Exhibit K (the
"Investment Letter") or Exhibit L (the "Rule 144A Letter") or (ii) there shall
be delivered to the Trustee at the expense of the transferor an Opinion of
Counsel that such transfer may be made pursuant to an exemption from the
Securities Act. The Depositor shall provide to any Holder of a Private
Certificate and any prospective transferee designated by any such Holder,
information regarding the related Certificates and the Mortgage Loans and such
other information as shall be necessary to satisfy the condition to
eligibility set forth in Rule 144A(d)(4) for transfer of any such Certificate
without registration thereof under the Securities Act pursuant to the
registration exemption provided by Rule 144A. The Trustee and the Master
Servicer shall cooperate with the Depositor in providing the Rule 144A
information referenced in the preceding sentence, including providing to the
Depositor such information regarding the Certificates, the Mortgage Loans and
other matters regarding the Trust Fund as the Depositor shall reasonably
request to meet its obligation under the preceding sentence. Each Holder of a
Private Certificate desiring to effect such transfer shall, and does hereby
agree to, indemnify the Trustee and the Depositor, the Seller and the Master
Servicer 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 an ERISA-Restricted Certificate shall be made unless the
Trustee shall have received either (i) a representation from the transferee of
such Certificate acceptable to and in form and substance satisfactory to the
Trustee (in the event such Certificate is a Private Certificate, such
requirement is satisfied only by the Trustee's receipt of a representation
letter from the transferee substantially in the form of Exhibit K or Exhibit L,
or in the event such

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Certificate is a Residual Certificate, such requirement is satisfied only
by the Trustee's receipt of a representation letter from the transferee
substantially in the form of Exhibit I), to the effect that (x) such
transferee is not an employee benefit plan or arrangement subject to Section
406 of ERISA or a plan or arrangement subject to Section 4975 of the Code, nor
a person acting on behalf of any such plan or arrangement or using the assets
of any such plan or arrangement to effect such transfer or (y) in the case of
a Certificate that is an ERISA-Restricted Certificate and that has been the
subject of an ERISA-Qualifying Underwriting, a representation that the
transferee is an insurance company which is purchasing such Certificate with
funds contained in an "insurance company general account" (as such term is
defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE
95-60")) and that the purchase and holding of such Certificate satisfy the
requirements for exemptive relief under Sections I and III of PTCE 95-60 or
(ii) in the case of any ERISA-Restricted Certificate presented for
registration in the name of an employee benefit plan or arrangement subject to
ERISA, or a plan or arrangement subject to Section 4975 of the Code (or
comparable provisions of any subsequent enactments), or a trustee or any other
person acting on behalf of any such plan or arrangement, or using such plan's
or arrangement's assets, an Opinion of Counsel satisfactory to the Trustee,
which Opinion of Counsel shall not be an expense of either the Trustee, the
Master Servicer or the Trust Fund, addressed to the Trustee and the Master
Servicer to the effect that the purchase and holding of such ERISA-Restricted
Certificate will not result in a non-exempt prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code and will not subject the
Trustee or the Master Servicer to any obligation in addition to those
expressly undertaken in this Agreement or to any liability. For purposes of
the preceding sentence, with respect to an ERISA-Restricted Certificate that
is not a Residual Certificate, in the event the representation letter or
Opinion of Counsel referred to in the preceding sentence is not so furnished,
one of the representations in clause (i), as appropriate, shall be deemed to
have been made to the Trustee by the transferee's (including an initial
acquiror's) acceptance of the ERISA-Restricted Certificate. Notwithstanding
anything else to the contrary herein, any purported transfer of an
ERISA-Restricted Certificate to or on behalf of an employee benefit plan or
other plan of arrangement subject to ERISA or to Section 4975 of the Code
without the delivery to the Trustee of an Opinion of Counsel satisfactory to
the Trustee as described above shall be void and of no effect.

         To the extent permitted under applicable law (including, but not
limited to, ERISA), the Trustee shall be under no liability to any Person for
any registration of transfer of any ERISA-Restricted Certificate that is in fact
not permitted by this Section 5.02(b) or for making any payments due on such
Certificate to the Holder thereof or taking any other action with respect to
such Holder under the provisions of this Agreement so long as the transfer was
registered by the Trustee in accordance with the foregoing requirements.

         (c) Each Person who has or who acquires any Ownership Interest in a
Residual Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Residual
Certificate are expressly subject to the following provisions:

               (i)  Each Person holding or acquiring any Ownership Interest in
         a Residual 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.

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<PAGE>

               (ii) Except in connection with (i) the registration of the Tax
         Matters Person Certificate in the name of the Trustee or (ii) any
         registration in the name of, or transfer of a Residual Certificate
         to, an affiliate of the Depositor (either directly or through a
         nominee) in connection with the initial issuance of the Certificates,
         no Ownership Interest in a Residual Certificate may be registered on
         the Closing Date or thereafter transferred, and the Trustee shall not
         register the Transfer of any Residual Certificate unless, the Trustee
         shall have been furnished with an affidavit (a "Transfer Affidavit")
         of the initial owner or the proposed transferee in the form attached
         to this Agreement as Exhibit I.

              (iii) Each Person holding or acquiring any Ownership Interest
         in a Residual Certificate shall agree (A) to obtain a Transfer
         Affidavit from any other Person to whom such Person attempts to
         Transfer its Ownership Interest in a Residual Certificate, (B) to
         obtain a Transfer Affidavit from any Person for whom such Person is
         acting as nominee, trustee or agent in connection with any Transfer
         of a Residual Certificate and (C) not to Transfer its Ownership
         Interest in a Residual Certificate or to cause the Transfer of an
         Ownership Interest in a Residual Certificate to any other Person if
         it has actual knowledge that such Person is not a Permitted
         Transferee.

               (iv) Any attempted or purported Transfer of any Ownership
         Interest in a Residual Certificate in violation of the provisions of
         this Section 5.02(c) shall be absolutely null and void and shall vest
         no rights in the purported Transferee. If any purported transferee
         shall become a Holder of a Residual Certificate in violation of the
         provisions of this Section 5.02(c), then the last preceding Permitted
         Transferee shall be restored to all rights as Holder thereof
         retroactive to the date of registration of Transfer of such Residual
         Certificate. The Trustee shall be under no liability to any Person
         for any registration of Transfer of a Residual Certificate that is in
         fact not permitted by Section 5.02(b) and this Section 5.02(c) or for
         making any payments due on such Certificate to the Holder thereof or
         taking any other action with respect to such Holder under the
         provisions of this Agreement so long as the Transfer was registered
         after receipt of the related Transfer Affidavit, Transferor
         Certificate and either the Rule 144A Letter or the Investment Letter,
         if required. The Trustee shall be entitled but not obligated to
         recover from any Holder of a Residual Certificate that was in fact
         not a Permitted Transferee at the time it became a Holder or, at such
         subsequent time as it became other than a Permitted Transferee, all
         payments made on such Residual Certificate at and after either such
         time. Any such payments so recovered by the Trustee shall be paid and
         delivered by the Trustee to the last preceding Permitted Transferee
         of such Certificate.

               (v)  The Depositor shall use its best efforts to make available,
         upon receipt of written request from the Trustee, all information
         necessary to compute any tax imposed under Section 860E(e) of the
         Code as a result of a Transfer of an Ownership Interest in a Residual
         Certificate to any Holder who is not a Permitted Transferee.

         The restrictions on Transfers of a Residual Certificate set forth in
this Section 5.02(c) shall cease to apply (and the applicable portions of the
legend on a Residual Certificate may be deleted) with respect to Transfers
occurring after delivery to the Trustee of an Opinion of Counsel, which Opinion
of Counsel shall not be an expense of the Trust Fund, the Trustee, the

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Master Servicer or the Seller, to the effect that the elimination of such
restrictions will not cause any REMIC hereunder to fail to qualify as a REMIC
at any time that the Certificates are outstanding or result in the imposition
of any tax on the Trust Fund, a Certificateholder or another Person. Each
Person holding or acquiring any Ownership Interest in a Residual Certificate
hereby consents to any amendment of this Agreement which, based on an Opinion
of Counsel furnished to the Trustee, is reasonably necessary (a) to ensure
that the record ownership of, or any beneficial interest in, a Residual
Certificate is not transferred, directly or indirectly, to a Person that is
not a Permitted Transferee and (b) to provide for a means to compel the
Transfer of a Residual Certificate which is held by a Person that is not a
Permitted Transferee to a Holder that is a Permitted Transferee.

         (d) The preparation and delivery of all certificates and opinions
referred to above in this Section 5.02 in connection with transfer shall be at
the expense of the parties to such transfers.

         (e) Except as provided below, the Book-Entry Certificates shall at
all times remain registered in the name of the Depository or its nominee and
at all times: (i) registration of the Certificates may not be transferred by
the Trustee except to another Depository; (ii) the Depository shall maintain
book-entry records with respect to the Certificate Owners and with respect to
ownership and transfers of such Book-Entry Certificates; (iii) ownership and
transfers of registration of the Book-Entry Certificates on the books of the
Depository shall be governed by applicable rules established by the
Depository; (iv) the Depository may collect its usual and customary fees,
charges and expenses from its Depository Participants; (v) the Trustee shall
deal with the Depository, Depository Participants and indirect participating
firms as representatives of the Certificate Owners of the Book-Entry
Certificates for purposes of exercising the rights of holders under this
Agreement, and requests and directions for and votes of such representatives
shall not be deemed to be inconsistent if they are made with respect to
different Certificate Owners; and (vi) the Trustee may rely and shall be fully
protected in relying upon information furnished by the Depository with respect
to its Depository Participants and furnished by the Depository Participants
with respect to indirect participating firms and persons shown on the books of
such indirect participating firms as direct or indirect Certificate Owners.

         All transfers by Certificate Owners of Book-Entry Certificates shall be
made in accordance with the procedures established by the Depository Participant
or brokerage firm representing such Certificate Owner. Each Depository
Participant shall only transfer 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.

         If (x) (i) the Depository or the Depositor advises the Trustee in
writing that the Depository is no longer willing or able to properly discharge
its responsibilities as Depository, and (ii) the Trustee or the Depositor is
unable to locate a qualified successor or (y) after the occurrence of an Event
of Default, Certificate Owners representing at least 51% of the Certificate
Balance of the Book-Entry Certificates together advise the Trustee and the
Depository through the Depository Participants in writing that the continuation
of a book-entry system through the Depository is no longer in the best interests
of the Certificate Owners, the Trustee shall notify all Certificate Owners,
through the Depository, of the occurrence of any such event and of the
availability of definitive, fully-registered Certificates (the "Definitive
Certificates") to

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Certificate Owners requesting the same. Upon surrender to the Trustee
of the related Class of Certificates by the Depository, accompanied by the
instructions from the Depository for registration, the Trustee shall issue the
Definitive Certificates. Neither the Master Servicer, the Depositor nor the
Trustee shall be liable for any delay in delivery of such instruction and each
may conclusively rely on, and shall be protected in relying on, such
instructions. The Master Servicer shall provide the Trustee with an adequate
inventory of certificates to facilitate the issuance and transfer of
Definitive Certificates. Upon the issuance of Definitive Certificates all
references in this Agreement to obligations imposed upon or to be performed by
the Depository shall be deemed to be imposed upon and performed by the
Trustee, to the extent applicable with respect to such Definitive Certificates
and the Trustee shall recognize the Holders of the Definitive Certificates as
Certificateholders hereunder; provided that the Trustee shall not by virtue of
its assumption of such obligations become liable to any party for any act or
failure to act of the Depository.

         SECTION 5.03. Mutilated, Destroyed, Lost or Stolen Certificates.

         If (a) any mutilated Certificate is surrendered to the Trustee, or the
Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Certificate and (b) there is delivered to the Master Servicer and the
Trustee 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 that such
Certificate has been acquired by a bona fide purchaser, the Trustee shall
execute, countersign and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
Class, tenor and Percentage Interest. In connection with the issuance of any new
Certificate under this Section 5.03, 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) connected therewith. Any replacement Certificate issued pursuant to
this Section 5.03 shall constitute complete and indefeasible evidence of
ownership, 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.

         The Master Servicer, the Trustee and any agent of the Master Servicer
or the Trustee may treat the Person in whose name any Certificate is registered
as the owner of such Certificate for the purpose of receiving distributions as
provided in this Agreement and for all other purposes whatsoever, and neither
the Master Servicer, the Trustee nor any agent of the Master Servicer or the
Trustee shall be affected by any notice to the contrary.

         SECTION 5.05. Access to List of Certificateholders' Names and
Addresses.

         If three or more Certificateholders and/or Certificate Owners (a)
request such information in writing from the Trustee, (b) state that such
Certificateholders and/or Certificate Owners desire to communicate with other
Certificateholders and/or Certificate Owners with respect to their rights under
this Agreement or under the Certificates, and (c) provide a copy of the
communication which such Certificateholders and/or Certificate Owners propose to
transmit, or if the Depositor or Master Servicer shall request such information
in writing from the Trustee, then the Trustee shall, within ten Business Days
after the receipt of such request, (x) provide the

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Depositor, the Master Servicer or such Certificateholders and/or
Certificate Owners at such recipients' expense the most recent list of the
Certificateholders of such Trust Fund held by the Trustee, if any, and (y)
assist the Depositor, the Master Servicer or such Certificateholders and/or
Certificate Owners at such recipients' expense with obtaining from the
Depository a list of the related Depository Participants acting on behalf of
Certificate Owners of Book Entry Certificates. The Depositor and every
Certificateholder and Certificate Owner, by receiving and holding a
Certificate or beneficial interest therein, agree that the Trustee shall not
be held accountable by reason of the disclosure of any such information as to
the list of the Certificateholders and/or Depository Participants hereunder,
regardless of the source from which such information was derived.

         SECTION 5.06. Maintenance of Office or Agency.

         The Trustee will maintain or cause to be maintained at its expense an
office or offices or agency or agencies in New York City where Certificates may
be surrendered for registration of transfer or exchange. The Trustee initially
designates its Corporate Trust Office for such purposes. The Trustee will give
prompt written notice to the Certificateholders of any change in such location
of any such office or agency.

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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 them herein.

         SECTION 6.02. Merger or Consolidation of the Depositor or the Master
Servicer.

         The Depositor will keep in full effect its existence, rights and
franchises as a corporation under the laws of the United States or under the
laws of one of the states thereof and will obtain and preserve its qualification
to do business as a foreign corporation in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, or any of the Mortgage Loans and to perform
its duties under this Agreement. The Master Servicer will keep in effect its
existence, rights and franchises as a limited partnership under the laws of the
United States or under the laws of one of the states thereof and will obtain and
preserve its qualification or registration to do business as a foreign
partnership in each jurisdiction in which such qualification or registration is
or shall be necessary to protect the validity and enforceability of this
Agreement or any of the Mortgage Loans and to perform its duties under this
Agreement.

         Any Person into which the Depositor or the Master Servicer may be
merged or consolidated, or any Person resulting from any merger 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 herein 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
FNMA or FHLMC.

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

         None of the Depositor, the Master Servicer or the Seller or any of the
directors, officers, employees or agents of the Depositor, the Master Servicer
or the Seller shall be under any liability to 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, the Seller
or any such Person against any breach of representations or warranties made by
it herein or protect the Depositor, the Master Servicer, the Seller or any such
Person from any liability which would otherwise be imposed by reasons 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, the Seller and any director, officer, employee or agent of
the Depositor, the Master Servicer or the Seller may rely in good faith on any
document of any kind prima facie properly executed and submitted by any Person
respecting any matters arising

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<PAGE>

hereunder. The Depositor, the Master Servicer, the Seller and any director,
officer, employee or agent of the Depositor, the Master Servicer or
the Seller shall be indemnified by the Trust Fund and held harmless against
any loss, liability or expense incurred in connection with any audit,
controversy or judicial proceeding relating to a governmental taxing authority
or 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. None of the Depositor, the
Master Servicer or the Seller shall be under any obligation to appear in,
prosecute or defend any legal action that is not incidental to its respective
duties hereunder and which in its opinion may involve it in any expense or
liability; provided, however, that any of the Depositor, the Master Servicer
or the Seller may in its discretion undertake any such action that it may deem
necessary or desirable in respect of this Agreement and the rights and duties
of the parties hereto and interests of the Trustee and the Certificateholders
hereunder. In such event, the legal expenses and costs of such action and any
liability resulting therefrom shall be expenses, costs and liabilities of the
Trust Fund, and the Depositor, the Master Servicer and the Seller shall be
entitled to be reimbursed therefor out of the Certificate Account.

         SECTION 6.04. Limitation on Resignation of Master Servicer.

         The Master Servicer shall not resign from the obligations and duties
hereby imposed on it except (a) upon appointment of a successor servicer and
receipt by the Trustee of a letter from each Rating Agency that such a
resignation and appointment will not result in a downgrade or withdrawal of the
rating of any of the Certificates or (b) upon determination that its duties
hereunder are no longer permissible under applicable law. Any such determination
under clause (b) permitting the resignation of the Master Servicer shall be
evidenced by an Opinion of Counsel to such effect delivered to the Trustee. No
such resignation shall become effective until the Trustee or a successor master
servicer shall have assumed the Master Servicer's responsibilities, duties,
liabilities and obligations hereunder.

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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:

               (i)   any failure by the Master Servicer to deposit in the
         Certificate Account or remit to the Trustee any payment required to
         be made under the terms of this Agreement, which failure shall
         continue unremedied for five days after the date upon which written
         notice of such failure shall have been given to the Master Servicer
         by the Trustee or the Depositor or to the Master Servicer and the
         Trustee by the Holders of Certificates having not less than 25% of
         the Voting Rights evidenced by the Certificates; or

               (ii)  any failure by the Master Servicer to observe or perform
         in any material respect any other of the covenants or agreements on
         the part of the Master Servicer contained in this Agreement, which
         failure materially affects the rights of Certificateholders, that
         failure continues unremedied for a period of 60 days after the date
         on which written notice of such failure shall have been given to the
         Master Servicer by the Trustee or the Depositor, or to the Master
         Servicer and the Trustee by the Holders of Certificates evidencing
         not less than 25% of the Voting Rights evidenced by the Certificates;
         or

               (iii) a decree or order of a court or agency or supervisory
         authority having jurisdiction in the premises for the appointment of
         a 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
         consecutive days; or

               (iv) the Master Servicer shall consent to the appointment of a
         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 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 assignment for the
         benefit of its creditors, or voluntarily suspend payment of its
         obligations; or

               (vi) the Master Servicer shall fail to reimburse in full the
         Trustee within five days of the Master Servicer Advance Date for any
         Advance made by the Trustee pursuant to Section 4.01(b) together with
         accrued and unpaid interest.

         If an Event of Default described in clauses (i) to (vi) 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, the Trustee may, or (except in the case of
an Event of Default described in clause (vi) of this

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Section) at the direction of the Holders of Certificates evidencing not less
than 66-2/3% of the Voting Rights evidenced by such Certificates, the Trustee
shall, by notice in writing to the Master Servicer (with a copy to each Rating
Agency), 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. On and after
the receipt by the Master Servicer of such written notice, all authority and
power of the Master Servicer hereunder, whether with respect to the Mortgage
Loans or otherwise, shall pass to and be vested in the Trustee. The Trustee
shall thereupon make any Advance which the Master Servicer failed to make
subject to Section 4.01 hereof whether or not the obligations of the Master
Servicer have been terminated pursuant to this Section. 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. Unless expressly provided in such written
notice, no such termination shall affect any obligation of the Master Servicer
to pay amounts owed pursuant to Article VIII. The Master Servicer agrees to
cooperate with the Trustee in effecting the termination of the Master
Servicer's responsibilities and rights hereunder, including, without
limitation, the transfer to the Trustee of all cash amounts which shall at the
time be credited to the Certificate Account, or thereafter be received with
respect to the Mortgage Loans.

         Notwithstanding any termination of the activities of the Master
Servicer hereunder, the Master Servicer shall be entitled to receive, out of any
late collection of a Scheduled Payment on a Mortgage Loan which was due prior to
the notice terminating such Master Servicer's rights and obligations as Master
Servicer hereunder and received after such notice, that portion thereof to which
such Master Servicer would have been entitled pursuant to Sections 3.08(a)(i)
through (viii),and any other amounts payable to such Master Servicer hereunder
the entitlement to which arose prior to the termination of its activities
hereunder.

         SECTION 7.02. Trustee to Act; Appointment of Successor.

         On and after the time the Master Servicer receives a notice of
termination pursuant to Section 7.01 hereof, the Trustee shall, subject to and
to the extent provided in Section 3.04, be the successor to the Master Servicer
in its capacity as master 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 by the
terms and provisions hereof and applicable law including the obligation to make
Advances pursuant to Section 4.01. As compensation therefor, the Trustee shall
be entitled to all funds relating to the Mortgage Loans that the Master Servicer
would have been entitled to charge to the Certificate Account or Distribution
Account if the Master Servicer had continued to act hereunder. Notwithstanding
the foregoing, if the Trustee has become the successor to the Master Servicer in
accordance with Section 7.01 hereof, the Trustee may, if it shall be unwilling
to so act, or shall, if it is prohibited by applicable law from making Advances
pursuant to Section 4.01 hereof or if it is otherwise unable to so act, appoint,
or petition a court of competent jurisdiction to appoint, any established
mortgage loan servicing institution the appointment of which does not adversely
affect the then current rating of the Certificates, by each Rating Agency as the
successor to the Master Servicer hereunder in the assumption of all or any part
of the responsibilities, duties or liabilities of the

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Master Servicer hereunder. Any successor to the Master Servicer shall be an
institution which is a FNMA and FHLMC approved seller/servicer in good
standing, which has a net worth of at least $15,000,000, and which is willing
to service the Mortgage Loans and executes and delivers to the Depositor and
the Trustee an agreement accepting such delegation and assignment, which
contains an assumption by such Person of the rights, powers, duties,
responsibilities, obligations and liabilities of the Master Servicer (other
than liabilities of the Master Servicer under Section 6.03 hereof incurred
prior to termination of the Master Servicer under Section 7.01), with like
effect as if originally named as a party to this Agreement; and provided
further that each Rating Agency acknowledges that its rating of the
Certificates in effect immediately prior to such assignment and delegation
will not be qualified or reduced as a result of such assignment and
delegation. Pending appointment of a successor to the Master Servicer
hereunder, the Trustee, unless the Trustee is prohibited by law from so
acting, shall, subject to Section 3.04 hereof, act in such capacity as
hereinabove provided. 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 the Master Servicing
Fee permitted the Master Servicer hereunder. The Trustee and such successor
shall take such action, consistent with this Agreement, as shall be necessary
to effectuate any such succession. Neither the Trustee nor any other successor
master servicer shall be deemed to be in default hereunder by reason of any
failure to make, or any delay in making, any distribution hereunder or any
portion thereof or any failure to perform, or any delay in performing, any
duties or responsibilities hereunder, in either case caused by the failure of
the Master Servicer to deliver or provide, or any delay in delivering or
providing, any cash, information, documents or records to it.

         Any successor to the Master Servicer as master servicer shall give
notice to the Mortgagors of such change of servicer and shall, during the term
of its service as master servicer maintain in force the policy or policies that
the Master Servicer is required to maintain pursuant to Section 3.09.

         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, or (ii) the predecessor Master Servicer shall cooperate with the successor
Master Servicer either (x) 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(R) System to the successor Master
Servicer or (y) in causing MERS to designate on the MERS(R) System the successor
Master Servicer as the servicer of such Mortgage Loan. The predecessor Master
Servicer shall file or cause to be filed any such assignment in the appropriate
recording office. The successor Master Servicer shall cause such assignment to
be delivered to the Trustee 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.

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         SECTION 7.03. Notification to Certificateholders.

         (a) Upon any termination of or appointment of a successor to the
Master Servicer, the Trustee shall give prompt written notice thereof to
Certificateholders and to each Rating Agency.

         (b) Within 60 days after the occurrence of any Event of Default, the
Trustee shall transmit by mail to all Certificateholders notice of each such
Event of Default hereunder known to the Trustee, unless such Event of Default
shall have been cured or waived.

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                                 ARTICLE VIII
                            CONCERNING THE TRUSTEE

         SECTION 8.01. Duties of Trustee.

         The Trustee, prior to the occurrence of an Event of Default and after
the curing of all Events of Default that may have occurred, shall undertake to
perform such duties and only such duties as are specifically set forth in this
Agreement. In case an Event of Default has occurred and remains uncured, 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 person would exercise or use under the circumstances in the conduct of
such person's own affairs.

         The Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Trustee that are specifically required to be furnished pursuant to any provision
of this Agreement shall examine them to determine whether they are in the form
required by this Agreement; provided, however, that the Trustee shall not be
responsible for the accuracy or content of any such resolution, certificate,
statement, opinion, report, document, order or other instrument.

         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)  unless an Event of Default known to the Trustee shall have
         occurred and be continuing, 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 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 and conforming to the requirements of this
         Agreement which it believed in good faith to be genuine and to have
         been duly executed by the proper authorities respecting any matters
         arising hereunder;

               (ii) the Trustee shall not be liable for an error of judgment
         made in good faith by a Responsible Officer or Responsible Officers
         of the Trustee, unless it shall be finally proven that the Trustee
         was negligent in ascertaining the pertinent facts;

              (iii) the Trustee shall not be liable with respect to any
         action taken, suffered or omitted to be taken by it in good faith in
         accordance with the direction of Holders of Certificates evidencing
         not less than 25% of the Voting Rights of Certificates relating 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, and

               (iv) without in any way limiting the provisions of this Section
         8.01 or Section 8.02 hereof, the Trustee shall be entitled to rely
         conclusively on the information delivered to it by the Master
         Servicer in a Trustee Advance Notice in determining whether it is

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         required to make an Advance under Section 4.01(b), shall have no
         responsibility to ascertain or confirm any information contained in
         any Trustee Advance Notice, and shall have no obligation to make any
         Advance under Section 4.01(b) in the absence of a Trustee Advance
         Notice or actual knowledge of a Responsible Officer of the Trustee
         that (A) such Advance was not made by the Master Servicer and (B)
         such Advance is not a Nonrecoverable Advance.

         SECTION 8.02. Certain Matters Affecting the Trustee.

         Except as otherwise provided in Section 8.01:

               (i)  the Trustee may request and rely upon 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 and the Trustee shall have no responsibility
         to ascertain or confirm the genuineness of any signature of any such
         party or parties;

               (ii) the Trustee may consult with counsel, financial advisers
         or accountants and the advice of any such counsel, financial advisers
         or accountants 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 not be 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;

               (iv) 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 requested in
         writing so to do by Holders of Certificates evidencing not less than
         25% of the Voting Rights allocated to each Class of Certificates;

               (v)  the Trustee may execute any of the trusts or powers
         hereunder or perform any duties hereunder either directly or by or
         through agents, accountants or attorneys;

               (vi) the Trustee shall not be required to risk or expend its
         own funds or otherwise incur any financial liability in the
         performance of any of its duties or in the exercise of any of its
         rights or powers hereunder if it shall have reasonable grounds for
         believing that repayment of such funds or adequate indemnity against
         such risk or liability is not assured to it;

              (vii) the Trustee shall not be liable for any loss on any
         investment of funds pursuant to this Agreement (other than as issuer
         of the investment security);

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             (viii) the Trustee shall not be deemed to have knowledge of an
         Event of Default until a Responsible Officer of the Trustee shall
         have received written notice thereof; and

               (ix) the Trustee shall be under no obligation to exercise any
         of the trusts, rights 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 satisfactory to the Trustee against
         the costs, expenses and liabilities which may be incurred therein or
         thereby.

         SECTION 8.03. Trustee Not Liable for Certificates or Mortgage Loans.

         The recitals contained herein and in the Certificates shall be taken as
the statements of the Depositor or the Seller, 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 or of any Mortgage Loan or related document or of MERS or the MERS
System other than with respect to the Trustee's execution and counter-signature
of the Certificates. The Trustee shall not be accountable for the use or
application by the Depositor or the Master Servicer of any funds paid to the
Depositor or the Master Servicer in respect of the Mortgage Loans or deposited
in or withdrawn from 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 as it would have if it
were not the Trustee.

         SECTION 8.05. Trustee's Fees and Expenses.

         The Trustee, as compensation for its activities hereunder, shall be
entitled to withdraw from the Distribution Account on each Distribution Date the
amount set forth in Section 3.08(b)(i). The Trustee and any director, officer,
employee or agent of the Trustee shall be indemnified by the Master Servicer and
held harmless against any loss, liability or expense (including reasonable
attorney's fees) (i) incurred in connection with any claim or legal action
relating to (a) this Agreement, (b) the Certificates or (c) in connection with
the performance of any of the Trustee's duties hereunder, other than any loss,
liability or expense incurred by reason of willful misfeasance, bad faith or
negligence in the performance of any of the Trustee's duties hereunder or
incurred by reason of any action of the Trustee taken at the direction of the
Certificateholders and (ii) resulting from any error in any tax or information
return prepared by the Master Servicer. Such indemnity shall survive the
termination of this Agreement or the resignation or removal of the Trustee
hereunder. Without limiting the foregoing, the Master Servicer covenants and
agrees, except as otherwise agreed upon in writing by the Depositor and the
Trustee, and except for any such expense, disbursement or advance as may arise
from the Trustee's negligence, bad faith or willful misconduct, to pay or
reimburse the Trustee, for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any of the provisions of this
Agreement with respect to: (A) the reasonable compensation

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and the expenses and disbursements of its counsel not associated with
the closing of the issuance of the Certificates, (B) the reasonable
compensation, expenses and disbursements of any accountant, engineer or
appraiser that is not regularly employed by the Trustee, to the extent that
the Trustee must engage such persons to perform acts or services hereunder and
(C) printing and engraving expenses in connection with preparing any
Definitive Certificates. Except as otherwise provided herein, the Trustee
shall not be entitled to payment or reimbursement for any routine ongoing
expenses incurred by the Trustee in the ordinary course of its duties as
Trustee, Registrar, Tax Matters Person or Paying Agent hereunder or for any
other expenses.

         SECTION 8.06. Eligibility Requirements for Trustee.

         The Trustee hereunder shall at all times be a corporation or
association organized and doing business under the laws of a 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, subject
to supervision or examination by federal or state authority and with a credit
rating which would not cause either of the Rating Agencies to reduce or withdraw
their respective then current ratings of the Certificates (or having provided
such security from time to time as is sufficient to avoid such reduction) as
evidenced in writing by each Rating Agency. If such corporation or association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section 8.06 the combined capital and surplus of such
corporation or association 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 8.06, the Trustee shall resign immediately in the
manner and with the effect specified in Section 8.07 hereof. The entity serving
as Trustee may have normal banking and trust relationships with the Depositor
and its affiliates or the Master Servicer and its affiliates; provided, however,
that such entity cannot be an affiliate of the Master Servicer other than the
Trustee in its role as successor to the Master Servicer.

         SECTION 8.07. Resignation and Removal of Trustee.

         The Trustee may at any time resign and be discharged from the trusts
hereby created by giving written notice of resignation to the Depositor, the
Master Servicer and each Rating Agency not less than 60 days before the date
specified in such notice when, subject to Section 8.08, such resignation is to
take effect, and acceptance by a successor trustee in accordance with Section
8.08 meeting the qualifications set forth in Section 8.06. If no successor
trustee meeting such qualifications shall have been so appointed and have
accepted appointment within 30 days after the giving of such notice or
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee.

         If at any time the Trustee shall cease to be eligible in accordance
with the provisions of Section 8.06 hereof and shall fail to resign after
written request thereto by the Depositor, or if at any time the Trustee shall
become incapable of acting, or shall be adjudged as 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, or a tax
is imposed with respect to the Trust Fund by any state in which the Trustee or
the Trust Fund is located and the imposition of such tax would

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be avoided by the appointment of a different trustee, then the
Depositor or the Master Servicer may remove the Trustee and appoint a
successor trustee by written instrument, in triplicate, one copy of which
instrument shall be delivered to the Trustee, one copy of which shall be
delivered to the Master Servicer and one copy to the successor trustee.

         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 by the successor Trustee to the Master Servicer, one complete
set to the Trustee so removed and one complete set to the successor so
appointed. Notice of any removal of the Trustee shall be given to each Rating
Agency by the successor trustee.

         Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section 8.07 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 8.08 hereof.

         SECTION 8.08. Successor Trustee.

         Any successor trustee appointed as provided in Section 8.07 hereof
shall execute, acknowledge and deliver to the Depositor and to its predecessor
trustee and the Master Servicer an instrument accepting such appointment
hereunder and thereupon the resignation or removal of the predecessor 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 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.

         No successor trustee shall accept appointment as provided in this
Section 8.08 unless at the time of such acceptance such successor trustee shall
be eligible under the provisions of Section 8.06 hereof and its appointment
shall not adversely affect the then current rating of the Certificates.

         Upon acceptance of appointment by a successor trustee as provided in
this Section 8.08, the Depositor shall mail notice of the succession of such
trustee hereunder to all Holders of Certificates. 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 into which the Trustee may be merged or converted or
with which it may be consolidated or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to the business of the Trustee, shall be the successor of
the Trustee hereunder, provided that such corporation shall be eligible under
the provisions of Section 8.06 hereof without the execution or filing of any
paper

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or further act on the part of any of the parties hereto, anything herein
to the contrary notwithstanding.

         SECTION 8.10. Appointment of Co-Trustee or Separate Trustee.

         Notwithstanding any other provisions of this Agreement, 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 any Mortgage Note 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 and for the
benefit of the Certificateholders, such title to the Trust Fund or any part
thereof, whichever is applicable, and, subject 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 to do so, or in the 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 and
no notice to Certificateholders of the appointment of any co-trustee or separate
trustee shall be required under Section 8.08.

         Every separate trustee and co-trustee shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions:

                  (i) To the extent necessary to effectuate the purposes of this
         Section 8.10, all rights, powers, duties and obligations conferred or
         imposed upon the Trustee, except for the obligation of the Trustee
         under this Agreement to advance funds on behalf of the Master Servicer,
         shall be conferred or imposed upon and exercised or performed by the
         Trustee and such separate trustee or co-trustee jointly (it being
         understood that such separate trustee or co-trustee is not authorized
         to act separately without the Trustee joining in such act), 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 applicable Trust Fund or any
         portion thereof in any such jurisdiction) shall be exercised and
         performed singly by such separate trustee or co-trustee, but solely at
         the direction of the Trustee;

                  (ii) No trustee hereunder shall be held personally liable by
         reason of any act or omission of any other trustee hereunder and such
         appointment shall not, and shall not be deemed to, constitute any such
         separate trustee or co-trustee as agent of the Trustee;

                  (iii) The Trustee may at any time accept the resignation of or
         remove any separate trustee or co-trustee; and

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                  (iv) The Master Servicer, and not the Trustee, shall be liable
         for the payment of reasonable compensation, reimbursement and
         indemnification to any such separate trustee or co-trustee.

         Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the separate trustees and co-trustees, when
and 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 and a copy thereof given to the
Master Servicer and the Depositor.

         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. Tax Matters.

         It is intended that the assets with respect to which any REMIC election
is to be made, as set forth in the Preliminary Statement, shall constitute, and
that the conduct of matters relating to such assets shall be such as to qualify
such assets as, a "real estate mortgage investment conduit" as defined in and in
accordance with the REMIC Provisions. In furtherance of such intention, the
Trustee covenants and agrees that it shall act as agent (and the Trustee is
hereby appointed to act as agent) on behalf of any such REMIC and that in such
capacity it shall: (a) prepare and file, or cause to be prepared and filed, in a
timely manner, a U.S. Real Estate Mortgage Investment Conduit Income Tax Return
(Form 1066 or any successor form adopted by the Internal Revenue Service) and
prepare and file or cause to be prepared and filed with the Internal Revenue
Service and applicable state or local tax authorities income tax or information
returns for each taxable year with respect to any such REMIC, containing such
information and at the times and in the manner as may be required by the Code or
state or local tax laws, regulations, or rules, and furnish or cause to be
furnished to Certificateholders the schedules, statements or information at such
times and in such manner as may be required thereby; (b) within thirty days of
the Closing Date, furnish or cause to be furnished to the Internal Revenue
Service, on Forms 8811 or as otherwise may be required by the Code, the name,
title, address, and telephone number of the person that the holders of the
Certificates may contact for tax information relating thereto, together with
such additional information as may be required by such Form, and update such
information at the time or times in the manner required by the Code; (c) make or
cause to be made elections that such assets be treated as a REMIC on the federal
tax return for its first taxable year (and, if necessary, under applicable state
law); (d) prepare and forward, or cause to be prepared and forwarded, to the
Certificateholders and to the Internal Revenue Service and, if necessary, state
tax authorities, all information returns and reports as and when required to be

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provided to them in accordance with the REMIC Provisions, including without
limitation, the calculation of any original issue discount using the Prepayment
Assumption; (e) provide information necessary for the computation of tax imposed
on the transfer of a Residual Certificate to a Person that is not a Permitted
Transferee, or an agent (including a broker, nominee or other middleman) of a
Non-Permitted Transferee, or a pass-through entity in which a Non-Permitted
Transferee is the record holder of an interest (the reasonable cost of computing
and furnishing such information may be charged to the Person liable for such
tax); (f) to the extent that they are under its control conduct matters relating
to such assets at all times that any Certificates are outstanding so as to
maintain the status as a REMIC under the REMIC Provisions; (g) not knowingly or
intentionally take any action or omit to take any action that would cause the
termination of the REMIC status of any REMIC; (h) pay, from the sources
specified in the last paragraph of this Section 8.11, the amount of any federal
or state tax, including prohibited transaction taxes as described below, imposed
on any such REMIC prior to its termination when and as the same shall be due and
payable (but such obligation shall not prevent the Trustee or any other
appropriate Person from contesting any such tax in appropriate proceedings and
shall not prevent the Trustee from withholding payment of such tax, if permitted
by law, pending the outcome of such proceedings); (i) ensure that federal, state
or local income tax or information returns shall be signed by the Trustee or
such other person as may be required to sign such returns by the Code or state
or local laws, regulations or rules; (j) maintain records relating to any such
REMIC, including but not limited to the income, expenses, assets and liabilities
thereof and the fair market value and adjusted basis of the assets determined at
such intervals as may be required by the Code, as may be necessary to prepare
the foregoing returns, schedules, statements or information; and (k) as and when
necessary and appropriate, represent any such REMIC in any administrative or
judicial proceedings relating to an examination or audit by any governmental
taxing authority, request an administrative adjustment as to any taxable year of
any such REMIC, enter into settlement agreements with any governmental taxing
agency, extend any statute of limitations relating to any tax item of any such
REMIC, and otherwise act on behalf of any such REMIC in relation to any tax
matter or controversy involving it.

         In order to enable the Trustee to perform its duties as set forth
herein, the Depositor shall provide, or cause to be provided, to the Trustee
within ten (10) days after the Closing Date all information or data that the
Trustee requests in writing and determines to be relevant for tax purposes to
the valuations and offering prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption and projected cash flows of
the Certificates and the Mortgage Loans. Thereafter, the Depositor shall provide
to the Trustee promptly upon written request therefor, any such additional
information or data that the Trustee may, from time to time, reasonably request
in order to enable the Trustee to perform its duties as set forth herein. The
Depositor hereby indemnifies the Trustee for any losses, liabilities, damages,
claims or expenses of the Trustee arising from any errors or miscalculations of
the Trustee that result from any failure of the Depositor to provide, or to
cause to be provided, accurate information or data to the Trustee on a timely
basis.

         In the event that any tax is imposed on "prohibited transactions" of
any REMIC hereunder as defined in Section 860F(a)(2) of the Code, on the "net
income from foreclosure property" of such REMIC as defined in Section 860G(c) of
the Code, on any contribution to any REMIC hereunder after the Startup Day
pursuant to Section 860G(d) of the Code, or any other

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tax is imposed, including, without limitation, any minimum tax imposed upon
any REMIC hereunder pursuant to Sections 23153 and 24874 of the California
Revenue and Taxation Code, if not paid as otherwise provided for herein, such
tax shall be paid by (i) the Trustee, if any such other tax arises out of or
results from a breach by the Trustee of any of its obligations under this
Agreement, (ii) the Master Servicer, in the case of any such minimum tax, or
if such tax arises out of or results from a breach by the Master Servicer or
the Seller of any of their obligations under this Agreement, (iii) the Seller,
if any such tax arises out of or results from the Seller's obligation to
repurchase a Mortgage Loan pursuant to Section 2.02 or 2.03 or (iv) in all
other cases, or in the event that the Trustee, the Master Servicer or the
Seller fails to honor its obligations under the preceding clauses (i),(ii) or
(iii), any such tax will be paid with amounts otherwise to be distributed to
the Certificateholders, as provided in Section 3.08(b).

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                                  ARTICLE IX
                                  TERMINATION

         SECTION 9.01. Termination upon Liquidation or Purchase of all
Mortgage Loans.

         Subject to Section 9.03, the obligations and responsibilities of the
Depositor, the Seller, the Master Servicer and the Trustee with respect to the
Trust Fund created hereby shall terminate upon the earlier of: (a)(I) if the
Holder of the Class C Certificates does not cause the auction of the assets of
the Trust Fund pursuant to Section 9.04 hereof, the purchase by the Master
Servicer of all Mortgage Loans (and REO Properties) remaining in the Trust Fund
at the price equal to the sum of (i) 100% of the Stated Principal Balance of
each Mortgage Loan plus one month's accrued interest thereon at the applicable
Adjusted Mortgage Rate, and (ii) the lesser of (x) the appraised value of any
REO Property as determined by the higher of two appraisals completed by two
independent appraisers selected by the Master Servicer at the expense of the
Master Servicer and (y) the Stated Principal Balance of each Mortgage Loan
related to any REO Property, and (iii) any remaining unpaid costs and damages
incurred by the Trust Fund that arise out of an actual violation of any
predatory or abusive lending law or regulation, in all cases plus accrued and
unpaid interest thereon at the applicable Adjusted Mortgage Rate, or (II) if a
Successful Auction is conducted pursuant to Section 9.04 hereof, in the case of
each of (I) and (II), causing the sale of the assets of the Trust Fund pursuant
thereto; and (b) the later of (i) the maturity or other liquidation (or any
Advance with respect thereto) of the last Mortgage Loan remaining in the Trust
Fund and the disposition of all REO Property and (ii) the distribution to
Certificateholders of all amounts required to be distributed to them pursuant to
this Agreement. In no event shall the trusts created hereby continue beyond the
earlier of (i) the expiration of 21 years from the death of the survivor of the
descendants of Joseph P. Kennedy, the late Ambassador of the United States to
the Court of St. James's, living on the date hereof and (ii) the Latest Possible
Maturity Date.

         If the holder of the Class C Certificates does not exercise the right
to cause an auction of all Mortgage Loans and REO Properties pursuant to Section
9.04, then the Master Servicer shall, upon giving prior written notice to the
Holder of the Class C Certificates and the Trustee, have the right to purchase
all Mortgage Loans and REO Properties in the Trust Fund pursuant to clause (a)
in the preceding paragraph of this Section 9.01 only on or after the first
Distribution Date following the Optional Termination Date.

         SECTION 9.02. Final Distribution on the Certificates.

         (a) Timing of Notice to Trustee of Auction or Optional Termination.

               (i) If on any Determination Date, the Master Servicer
         determines that there are no Outstanding Mortgage Loans and no other
         funds or assets in the Trust Fund other than the funds in the
         Certificate Account, then the Master Servicer shall direct the
         Trustee promptly to send a final distribution notice to each
         Certificateholder. In the event such notice is given, the Master
         Servicer shall cause all funds in the Certificate Account to be
         remitted to the Trustee for deposit in the Distribution Account on or
         before the Business Day prior to the applicable Distribution Date in
         an amount equal to the final distribution in respect of the
         Certificates. Upon such final deposit with respect to the Trust Fund
         and

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         the receipt by the Trustee of a Request for Release therefor, the
         Trustee shall promptly release to the Master Servicer the Mortgage
         Files for the Mortgage Loans.

               (ii)  If the Holder of the Class C Certificates chooses to
         exercise its right to cause an auction of all Mortgage Loans and REO
         Properties pursuant to Section 9.04, then the Holder of the Class C
         Certificates shall provide written notice to the Master Servicer and
         the Trustee no later than 25 days prior to the date notice of the
         intent to hold the auction is to be mailed to Certificateholders. If
         a Successful Auction is held pursuant to the requirements of Section
         9.04 hereof, then the Trustee shall deposit the proceeds of the
         auction in the Distribution Account and shall cause a distribution
         thereof to the Certificateholders pursuant to Sections 4.02 and 9.04
         hereof on the Distribution Date in the calendar month immediately
         following the calendar month in which the Successful Auction occurs.
         In the event such notice is given, the Master Servicer shall cause
         all funds in the Certificate Account to be remitted to the Trustee
         for transfer to the Winning Bidder in accordance with Section 9.04
         hereof.

              (iii) If the Holder of the Class C Certificates does not
         exercise its right to cause an auction of all Mortgage Loans and REO
         Properties pursuant to Section 9.04 and the Master Servicer, after
         prior written notice to the Holder of the Class C Certificates and
         the Trustee, elects to terminate the Trust Fund pursuant to Section
         9.01, then at least 20 days prior to the date notice is to be mailed
         to Certificateholders, the Master Servicer shall notify the Depositor
         and the Trustee of the date the Master Servicer intends to terminate
         the Trust Fund pursuant to Section 9.01 and of the applicable
         purchase price of the Mortgage Loans and REO Properties. In the event
         such notice is given, the Master Servicer shall cause all funds in
         the Certificate Account to be remitted to the Trustee for deposit in
         the Distribution Account on or before the Business Day prior to the
         applicable Distribution Date in an amount equal to the final
         distribution in respect of the Certificates. Upon such final deposit
         with respect to the Trust Fund and the receipt by the Trustee of a
         Request for Release therefor, the Trustee shall promptly release to
         the Master Servicer the Mortgage Files for the Mortgage Loans.

         (b) Timing of Notice to Certificateholders of Termination. Notice of
any termination of the Trust Fund (whether because of a Successful Auction or
because of the exercise by Master Servicer of its rights under Section 9.01
hereof), specifying the Distribution Date on which Certificateholders may
surrender their Certificates for payment of the final distribution and
cancellation, shall be given promptly by the Trustee by letter to
Certificateholders mailed not earlier than the 10th day and no later than the
15th day of the month next preceding the month of such final distribution. Any
such notice shall specify (i) the Distribution Date upon which final
distribution on the Certificates will be made upon presentation and surrender
of the Certificates at the office therein designated, (ii) the amount of such
final distribution, (iii) the location of the office or agency at which such
presentation and surrender must be made, and (iv) that the Record Date
otherwise applicable to such Distribution Date is not applicable,
distributions being made only upon presentation and surrender of the
Certificates at the office therein specified. The Master Servicer will give
such notice to each Rating Agency at the time such notice is given to
Certificateholders.

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         (c) Upon presentation and surrender of the Certificates, the Trustee
shall cause to be distributed to the Certificateholders of each Class, in each
case on the final Distribution Date and in the order set forth in Section
4.02, in proportion to their respective Percentage Interests, with respect to
Certificateholders of the same Class, an amount equal to (i) as to each Class
of Regular Certificates, the following amounts, as applicable (A) the
Certificate Balance thereof, (B) interest accrued on the Certificate Balance
or Notional Amount thereof, (C) in the case of the Class PO Certificates, any
Class PO Deferred Amounts and (D) in the case of the Class C Certificates, if
a Successful Auction was held, the Auction Excess Proceeds and (ii) as to the
Residual Certificates, the amount, if any, which remains on deposit in the
Distribution Account (other than the amounts retained to meet claims) after
application pursuant to clause (i) above. Notwithstanding the reduction of the
Class Certificate Balance of any Class of Certificates to zero, such Class
will be outstanding hereunder (solely for the purpose of receiving
distributions and not for any other purpose) until the termination of the
respective obligations and responsibilities of the Depositor, the Seller, the
Master Servicer and the Trustee hereunder in accordance with Article IX.

         (d) In the event that any affected Certificateholders shall not
surrender Certificates for cancellation within six months after the date
specified in the above mentioned written notice, the Trustee 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 all the applicable
Certificates shall not have been surrendered for cancellation, the Trustee may
take appropriate steps, or may appoint an agent to take appropriate steps, to
contact the remaining Certificateholders concerning surrender of their
Certificates, and the cost thereof shall be paid out of the funds and other
assets which remain a part of the Trust Fund. If within one year after the
second notice all Certificates shall not have been surrendered for
cancellation, the Class A-R Certificateholders shall be entitled to all
unclaimed funds and other assets of the Trust Fund which remain subject to
this Agreement.

         SECTION 9.03. Additional Termination Requirements.

         (a) In the event the Master Servicer exercises its purchase option as
provided in Section 9.01 or there is a Successful Auction under Section 9.04,
the Trust Fund shall be terminated in accordance with the following additional
requirements, unless the Trustee has been supplied with an Opinion of Counsel,
at the expense of the Master Servicer (in the case of the exercise of its
purchase option) or the holder of the Class C Certificates (in the case of a
Successful Auction), to the effect that the failure to comply with the
requirements of this Section 9.03 will not (i) result in the imposition of
taxes on "prohibited transactions" on any REMIC as defined in section 860F of
the Code, or (ii) cause any REMIC to fail to qualify as a REMIC at any time
that any Certificates are outstanding:

               (i)  Within 90 days prior to the final Distribution Date set
         forth in the notice given by the Master Servicer (in the case of the
         exercise of its purchase option) or the holder of the Class C
         Certificates (in the case of a Successful Auction) under Section
         9.02, the Master Servicer or the holder of the Class C Certificates,
         as applicable, shall prepare and the Trustee, at the expense of the
         "tax matters person," shall adopt a plan of complete liquidation of
         the Trust Fund within the meaning of section 860F(a)(4) of the Code
         which, as evidenced by an Opinion of Counsel (which opinion shall not
         be an

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         expense of the Trustee or the Tax Matters Person), meets the
         requirements of a qualified liquidation; and

               (ii) Within 90 days after the time of adoption of such a plan
         of complete liquidation with respect to the Trust Fund, the Trustee
         shall sell all of the remaining assets of the Trust Fund to the
         Master Servicer or to the Winning Bidder, as applicable, for cash in
         accordance with Section 9.01.

         (b) The Trustee, as agent for any REMIC created hereunder, hereby
agrees to adopt and sign such a plan of complete liquidation with respect to
the Trust Fund upon the written request of the Master Servicer or the holder
of the Class C Certificates, as applicable, and the receipt of the Opinion of
Counsel referred to in Section 9.03(a)(1) and to take such other action in
connection therewith as may be reasonably requested by the Master Servicer or
the holder of the Class C Certificates, as applicable.

         (c) By their acceptance of the Certificates, the Holders thereof
hereby authorize the Master Servicer or the holder of the Class C
Certificates, as applicable, to prepare and the Trustee to adopt and sign a
plan of complete liquidation with respect to the Trust Fund.

         SECTION 9.04. Auction of the Mortgage Loans and REO Properties.

         (a) Commencing with the Optional Termination Date, the Holder of the
Class C Certificates, at its option, may by written instruction (as provided
in Section 9.02 (a)(ii)) direct the Trustee to begin to solicit bids in a
commercially reasonable manner for the purchase of the Mortgage Loans and any
REO Properties owned by the Trust Fund to the Qualified Bidder who submits the
highest bid (but in no event less than the Minimum Bid Price). In such event,
within two (2) Business Days, the Trustee (x) may engage a financial advisor
(which may be Countrywide Servicing) and (y) shall send a notice to each
Certificateholder not later than the earlier of (A) 10 days before the
Distribution Date following the Optional Termination Date and (B) 5 Business
Days after the solicitation of bids pursuant to Section 9.04(b) indicating
that the Holder of the Class C Certificates has elected to attempt an auction
of the Mortgage Loans pursuant to the provisions of this Section 9.04 and in
the event of a Successful Auction another notice will be sent by the Trustee
prior to final distribution on the Certificates pursuant to Section 9.02(b).
To effectuate such sale, the Trustee (or such financial advisor) shall follow
the procedure specified in Section 9.04(b) below. The Trustee shall sell the
assets in the Trust Fund to the Winning Bidder so long as the Trustee (or any
financial advisor on its behalf) has received at least three bids from
Qualified Bidders and at least one such bid is equal to the Minimum Bid Price.
In the event the Trustee is not able to sell the assets of the Trust Fund
because such conditions are not satisfied, at the option of the Holder of the
Class C Certificates, but subject to the Master Servicer's purchase option
provided in Section 9.01, this process will be repeated once a month until the
earlier of (x) the occurrence of a Successful Auction or (y) the Master
Servicer exercises its purchase option pursuant to Section 9.01. The Trustee
shall be reimbursed for its costs, including expenses associated with engaging
any financial advisor, from the Trust Fund if the auction is not successful,
and, if the auction is successful, from the proceeds of the auction before the
proceeds are distributed to Certificateholders.

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<PAGE>

         (b) In the event the Trustee is instructed by the Holder of the Class
C Certificates to solicit bids for the purchase of assets owned by the Trust
Fund as provided in Section 9.04(a), the Trustee (or the financial advisor on
its behalf) shall solicit such bids not later than two (2) Business Days
before the Distribution Date following the Optional Termination Date by
contacting by telephone or in writing at least three (3) Qualified Bidders
requesting the Qualified Bidder to bid on the Mortgage Loans and other assets
of the Trust Fund (on a non-recourse basis with no representations or
warranties of any nature whatsoever by the Trustee (or such financial advisor)
and providing to the Qualified Bidder any information relating to the Mortgage
Loans and the assets of the Trust Fund reasonably requested by such Qualified
Bidder subject to the Qualified Bidder's agreement not to use such information
in the purchase or sale of Certificates (it being understood no Qualified
Bidder shall be obligated to submit a bid or take any other action in
connection with any auction). The Master Servicer shall cooperate with the
Trustee (or any financial advisor acting on its behalf) during the auction
process. The Trustee may consult with any financial advisor of its choice
(including Countrywide Servicing) in order to identify potential Qualified
Bidders. At 1:00 p.m. New York time on the second (2nd) Business Day after the
solicitation of bids (the "Bid Date"), the Trustee (or any financial advisor
on its behalf) will determine the highest bid for based on the bids received
by the Trustee (or any financial advisor on its behalf) on or before such
time. At or before 3:00 p.m. New York time on the Bid Date, the Trustee (or
any financial advisor on its behalf) will notify the Winning Bidder that its
bid was the highest bid and shall provide it with wiring instructions for
payment of the purchase price into the Distribution Account by 12:00 p.m. New
York time on the second (2nd) Business Day following the Bid Date. If the such
bidder fails to wire the purchase price so it is received by the Trustee by
12:00 p.m. New York time on the second (2nd) Business Day following the Bid
Date, the Trustee shall notify the next highest Qualified Bidder with a bid in
excess of the Minimum Bid Price (if any) that its bid has been accepted and
shall give it wiring instructions for payment of the purchase price into the
Distribution Account by 2:00 p.m. New York time on the second (2nd) Business
Day thereafter. If no other bids are available to be accepted pursuant to the
preceding sentence, then the auction shall be considered to have failed for
all purposes.

         (c) The Trustee shall not be liable with regard to the selection or
engagement of, or for any act or omission of, a financial advisor pursuant to
this Section 9.04 if the Trustee engages Countrywide Servicing to be such
financial advisor.

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                                  ARTICLE X
                           MISCELLANEOUS PROVISIONS

         SECTION 10.01. Amendment.

         This Agreement may be amended from time to time by the Depositor, the
Seller, the Master Servicer and the Trustee without the consent of any of the
Certificateholders (i) to cure any ambiguity or mistake, (ii) to correct any
defective provision herein or to supplement any provision herein which may be
inconsistent with any other provision herein, (iii) to conform this Agreement to
the Prospectus and Prospectus Supplement provided to investors in connection
with the initial offering of the Certificates, (iv) to add to the duties of the
Depositor, the Seller or the Master Servicer, (v) to modify, alter, amend, add
to or rescind any of the terms or provisions contained in this Agreement to
comply with any rules or regulations promulgated by the Securities and Exchange
Commission from time to time, (vi) to add any other provisions with respect to
matters or questions arising hereunder or (vii) to modify, alter, amend, add to
or rescind any of the terms or provisions contained in this Agreement; provided
that any action pursuant to clauses (v), (vi) or (vii) above shall not, as
evidenced by an Opinion of Counsel (which Opinion of Counsel shall not be an
expense of the Trustee or the Trust Fund), adversely affect in any material
respect the interests of any Certificateholder; provided, however, that the
amendment shall be deemed not to adversely affect in any material respect the
interests of the Certificateholders if the Person requesting the amendment
obtains a letter from each Rating Agency stating that the amendment would not
result in the downgrading or withdrawal of the respective ratings then assigned
to the Certificates; it being understood and agreed that any such letter in and
of itself will not represent a determination as to the materiality of any such
amendment and will represent a determination only as to the credit issues
affecting any such rating. Notwithstanding the foregoing, no amendment that
significantly changes the permitted activities of the trust created by this
Agreement may be made without the consent of a Majority in Interest of each
Class of Certificates affected by such amendment. Each party to this Agreement
hereby agrees that it will cooperate with each other party in amending this
Agreement pursuant to clause (v) above. The Trustee, the Seller, the Depositor
and the Master Servicer also may at any time and from time to time amend this
Agreement without the consent of the Certificateholders to modify, eliminate or
add to any of its provisions to such extent as shall be necessary or helpful to
(i) maintain the qualification of any REMIC as a REMIC under the Code, (ii)
avoid or minimize the risk of the imposition of any tax on any REMIC pursuant to
the Code that would be a claim at any time prior to the final redemption of the
Certificates or (iii) comply with any other requirements of the Code, provided
that the Trustee has been provided an Opinion of Counsel, which opinion shall be
an expense of the party requesting such opinion but in any case shall not be an
expense of the Trustee or the Trust Fund, to the effect that such action is
necessary or helpful to, as applicable, (i) maintain such qualification, (ii)
avoid or minimize the risk of the imposition of such a tax or (iii) comply with
any such requirements of the Code.

         This Agreement may also be amended from time to time by the Depositor,
the Seller, the Master Servicer and the Trustee with the consent of the Holders
of a Majority in Interest of each Class of Certificates 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 of modifying in any manner the rights of
the Holders of Certificates; provided, however, that no such amendment

<PAGE>

shall (i) reduce in any manner the amount of, or delay the timing of, payments
required to be distributed on any Certificate without the consent of the
Holder of such Certificate, (ii) adversely affect in any material respect the
interests of the Holders of any Class of Certificates in a manner other than
as described in (i), without the consent of the Holders of Certificates of
such Class evidencing, as to such Class, Percentage Interests aggregating
66-2/3%, or (iii) reduce the aforesaid percentages of Certificates the Holders
of which are required to consent to any such amendment, without the consent of
the Holders of all such Certificates then outstanding.

         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, which opinion shall not be an expense of the
Trustee or the Trust Fund, to the effect that such amendment will not cause the
imposition of any tax on any REMIC or the Certificateholders or cause any REMIC
to fail to qualify as a REMIC at any time that any Certificates are outstanding.

         Promptly after the execution of any amendment to this Agreement
requiring the consent of Certificateholders, the Trustee shall furnish written
notification of the substance or a copy of such amendment to each
Certificateholder and each Rating Agency.

         It shall not be necessary for the consent of Certificateholders under
this Section 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.

         Nothing in this Agreement shall require the Trustee to enter into an
amendment without receiving an Opinion of Counsel (which Opinion shall not be an
expense of the Trustee or the Trust Fund), satisfactory to the Trustee that (i)
such amendment is permitted and is not prohibited by this Agreement and that all
requirements for amending this Agreement have been complied with; and (ii)
either (A) the amendment does not adversely affect in any material respect the
interests of any Certificateholder or (B) the conclusion set forth in the
immediately preceding clause (A) is not required to be reached pursuant to this
Section 10.01.

         SECTION 10.02. Recordation of Agreement; Counterparts.

         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 at its expense, but only
upon direction by the Trustee accompanied by an Opinion of Counsel to the effect
that such recordation materially and beneficially affects 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.

<PAGE>

         SECTION 10.03. Governing Law.

                  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HERETO AND THE
CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         SECTION 10.04. Intention of Parties.

         It is the express intent of the parties hereto that the conveyance of
the (i) of the Mortgage Loans by the Seller to the Depositor and (ii) Trust Fund
by the Depositor to the Trustee each be, and be construed as, an absolute sale
thereof to the Trustee. It is, further, not the intention of the parties that
such conveyances be deemed a pledge thereof. However, in the event that,
notwithstanding the intent of the parties, such assets are held to be the
property of the Seller or the Depositor, as the case may be, or if for any other
reason this Agreement is held or deemed to create a security interest in either
such assets, then (i) this Agreement shall be deemed to be a security agreement
(within the meaning of the Uniform Commercial Code of the State of New York)
with respect to all such assets and security interests and (ii) the conveyances
provided for in this Agreement shall be deemed to be an assignment and a grant
pursuant to the terms of this Agreement (i) by the Seller to the Depositor or
(ii) by the Depositor to the Trustee, for the benefit of the Certificateholders,
of a security interest in all of the assets that constitute the Trust Fund,
whether now owned or hereafter acquired.

         The Seller and the Depositor for the benefit of the Certificateholders
shall, to the extent consistent with this Agreement, take such actions as may be
necessary to ensure that, if this Agreement were deemed to create a security
interest in the Trust Fund, such security interest would be deemed to be a
perfected security interest of first priority under applicable law and will be
maintained as such throughout the term of the Agreement. The Depositor shall
arrange for filing any Uniform Commercial Code continuation statements in
connection with any security interest granted or assigned to the Trustee for the
benefit of the Certificateholders.

         SECTION 10.05. Notices.

         (a) The Trustee shall use its best efforts to promptly provide notice
to each Rating Agency with respect to each of the following of which it has
actual knowledge:

         1. Any material change or amendment to this Agreement;

         2. The occurrence of any Event of Default that has not been cured;

         3. The resignation or termination of the Master Servicer or the Trustee
and the appointment of any successor;

         4. The repurchase or substitution of Mortgage Loans pursuant to Section
2.03;

         5. The final payment to Certificateholders; and

<PAGE>

         6. Any rating action involving the long-term credit rating of
Countrywide, which notice shall be made by first-class mail within two Business
Days after the Trustee gains actual knowledge thereof.

         In addition, the Trustee shall promptly furnish to each Rating Agency
copies of the following:

         1. Each report to Certificateholders described in Section 4.06;

         2. Each annual statement as to compliance described in Section 3.16;

         3. Each annual independent public accountants' servicing report
described in Section 3.17; and

         4. Any notice of a purchase of a Mortgage Loan pursuant to Section
2.02, 2.03 or 3.11.

         (b) All directions, demands and notices hereunder shall be in writing
and shall be deemed to have been duly given when delivered by first class
mail, by courier or by facsimile transmission to (1) in the case of the
Depositor, CWMBS, Inc., 4500 Park Granada, Calabasas, California 91302,
facsimile number: (818) 225-4053, Attention: David A. Spector, (2) in the case
of the Seller, EMC Mortgage Corporation, 909 Hidden Ridge Drive, Irving, Texas
75038, facsimile number (469) 759-4737, Attention: Bock Snyder or such other
address as may be hereafter furnished to the Depositor and the Trustee by
Countrywide in writing, (3) in the case of the Master Servicer, Countrywide
Home Loans Servicing LP, 400 Countrywide Way, Simi Valley, California,
facsimile number (805) 520-5623, Attention: Mark Wong, or such other address
as may be hereafter furnished to the Depositor and the Trustee by the Master
Servicer in writing, (4) in the case of the Trustee, The Bank of New York, 101
Barclay Street, 8W, New York, New York 10286, facsimile number: (212)
815-3986, Attention: Mortgage-Backed Securities Group, CWMBS, Inc. Series
2005-19, or such other address as the Trustee may hereafter furnish to the
Depositor or Master Servicer, and (5) in the case of the Rating Agencies, the
address specified therefor in the definition corresponding to the name of such
Rating Agency. Notices to Certificateholders shall be deemed given when
mailed, first class postage prepaid, to their respective addresses appearing
in the Certificate Register.

         SECTION 10.06. 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 10.07. Assignment.

         Notwithstanding anything to the contrary contained herein, except as
provided in Section 6.02, this Agreement may not be assigned by the Master
Servicer without the prior written consent of the Trustee and Depositor.

<PAGE>

         SECTION 10.08. Limitation on Rights of Certificateholders.

         The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the trust created hereby, nor entitle such
Certificateholder's legal representative or heirs to claim an accounting or to
take any action or commence any proceeding in any court for a petition or
winding up of the trust created hereby, or otherwise affect the rights,
obligations and liabilities of the parties hereto or any of them.

         No Certificateholder shall have any right to vote (except as 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
party by reason of any action taken by the parties to this Agreement pursuant to
any provision hereof.

         No Certificateholder shall have any right by virtue or by availing
itself of any provisions 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 an Event of Default and of the continuance thereof, as herein provided, and
unless the Holders of Certificates evidencing not less than 25% of the Voting
Rights evidenced by the Certificates shall also have made written request to 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, 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
shall have any right in any manner whatever by virtue or by availing itself or
themselves of any provisions of this Agreement to affect, disturb or prejudice
the rights of the Holders of any other of the Certificates, 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 all Certificateholders. For the protection and enforcement of
the provisions of this Section 10.08, each and every Certificateholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

         SECTION 10.09. Inspection and Audit Rights.

         The Master Servicer agrees that, on reasonable prior notice, it will
permit and will cause each Subservicer to permit any representative of the
Depositor or the Trustee during the Master Servicer's normal business hours, to
examine all the books of account, records, reports and other papers of the
Master Servicer relating to the Mortgage Loans, to make copies and extracts
therefrom, to cause such books to be audited by independent certified public
accountants selected by the Depositor or the Trustee and to discuss its affairs,
finances and accounts relating to the Mortgage Loans with its officers,
employees and independent public accountants (and by this provision the Master
Servicer hereby authorizes said accountants to discuss with such representative
such affairs, finances and accounts), all at such reasonable times and as often
as may be reasonably requested. Any out-of-pocket expense incident to the
exercise by the

<PAGE>

Depositor or the Trustee of any right under this Section 10.09 shall be borne
by the party requesting such inspection; all other such expenses shall be
borne by the Master Servicer or the related Subservicer.

         SECTION 10.10. Certificates Nonassessable and Fully Paid.

         It is the intention of the Depositor that Certificateholders shall not
be personally liable for obligations of the Trust Fund, that the interests in
the Trust Fund represented by the Certificates shall be nonassessable for any
reason whatsoever, and that the Certificates, upon due authentication thereof by
the Trustee pursuant to this Agreement, are and shall be deemed fully paid.

         SECTION 10.11. [Reserved].

         SECTION 10.12. Protection of Assets.

         (a) Except for transactions and activities entered into in connection
with the securitization that is the subject of this Agreement, the Trust Fund
created by this Agreement is not authorized and has no power to:

                    (i) borrow money or issue debt;

                   (ii) merge with another entity, reorganize, liquidate or
               sell assets; or

                  (iii) engage in any business or activities.

         (b) Each party to this Agreement agrees that it will not file an
involuntary bankruptcy petition against the Trustee or the Trust Fund or
initiate any other form of insolvency proceeding until after the Certificates
have been paid.

                                  * * * * * *

<PAGE>

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

                                            CWMBS, INC.,
                                              as Depositor

                                            By:
                                                 ------------------------------
                                                 Name:   Darren Bigby
                                                 Title:  Vice President

                                            THE BANK OF NEW YORK,
                                              as Trustee

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

                                            COUNTRYWIDE HOME LOANS, INC.,
                                              as Seller

                                            By:
                                                 -----------------------------
                                                  Name:  Darren Bigby
                                                  Title: Senior Vice President

                                            COUNTRYWIDE HOME LOANS SERVICING LP,
                                              as Master Servicer

                                            By:  COUNTRYWIDE GP, INC.

                                            By:
                                                 -----------------------------
                                                  Name:  Darren Bigby
                                                  Title: First Vice President

<PAGE>

Acknowledged solely with respect to the Trustee's
obligations under Section 4.01(b)

THE BANK OF NEW YORK,
in its individual capacity

By:
    ------------------------------------
     Name: Paul Connolly
     Title: Vice President

<PAGE>
                                   SCHEDULE I
                             Mortgage Loan Schedule
                        [Delivered at Closing to Trustee]

                                    S-I-1
<PAGE>

                                  SCHEDULE II
                                  CWMBS, Inc.
                      Mortgage Pass-Through Certificates
                                Series 2005-19

                 Representations and Warranties of the Seller

         EMC Mortgage Corporation (the "Seller") hereby makes the
representations and warranties set forth in this Schedule II to the Depositor,
the Master Servicer and the Trustee, as of the Closing Date. Capitalized terms
used but not otherwise defined in this Schedule II shall have the meanings
ascribed thereto in the Pooling and Servicing Agreement (the "Pooling and
Servicing Agreement") relating to the above-referenced Series, among the Seller,
as seller, Countrywide Home Loans Servicing LP, as master servicer, CWMBS, Inc.,
as depositor, and The Bank of New York, as trustee.

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

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

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

                                    S-II-1
<PAGE>

agreement or instrument, or in violation of any statute, order or regulation
of any court, regulatory body, administrative agency or governmental body
having jurisdiction over it which breach or violation may materially impair
the Seller's ability to perform or meet any of its obligations under the
Pooling and Servicing Agreement.

         4. No litigation is pending or, to the best of the Seller's
knowledge, threatened, against the Seller that would materially and adversely
affect the execution, delivery or enforceability of the Pooling and Servicing
Agreement or the ability of the Seller to sell the Mortgage Loans or to
perform any of its other obligations under the Pooling and Servicing Agreement
in accordance with the terms thereof.

         5. No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by the Seller of, or compliance by the Seller with, the Pooling
and Servicing Agreement or the consummation of the transactions contemplated
thereby, or if any such consent, approval, authorization or order is required,
the Seller has obtained the same.

         6. The Seller intends to treat the transfer of the Mortgage Loans to
the Depositor as a sale of the Mortgage Loans for all tax, accounting and
regulatory purposes.

                                    S-II-2
<PAGE>

                                  SCHEDULE III
                                   CWMBS, Inc.
                       Mortgage Pass-Through Certificates
                                 Series 2005-19

 Representations and Warranties of the Seller as to all of the Mortgage Loans

         EMC Mortgage Corporation (the "Seller") hereby makes the
representations and warranties set forth in this Schedule III to the Depositor,
the Master Servicer and the Trustee, with respect to all of the Mortgage Loans
as of the Closing Date, or if so specified herein, as of the Cut-off Date.
Capitalized terms used but not otherwise defined in this Schedule III shall have
the meanings ascribed thereto in the Pooling and Servicing Agreement (the
"Pooling and Servicing Agreement") relating to the above-referenced Series,
among the Seller, as seller, Countrywide Home Loans Servicing LP, as master
servicer, CWMBS, Inc., as depositor, and The Bank of New York, as trustee.

         1. The information set forth on Schedule I to the Pooling and
Servicing Agreement with respect to each Mortgage Loan is true and correct in
all material respects as of the Closing Date.

         2. As of the Closing Date, all payments due with respect to each
Mortgage Loan prior to the Cut-off Date have been made; and as of the Cut-off
Date, no Mortgage Loan has been contractually delinquent for 30 or more days
more than once during the twelve months prior to the Cut-off Date.

         3. No Mortgage Loan had a Loan-to-Value Ratio at origination in
excess of 100.00%.

         4. Each Mortgage is a valid and enforceable first lien on the
Mortgaged Property subject only to (a) the lien of non delinquent current real
property taxes and assessments, (b) covenants, conditions and restrictions,
rights of way, easements and other matters of public record as of the date of
recording of such Mortgage, such exceptions appearing of record being
acceptable to mortgage lending institutions generally or specifically
reflected in the appraisal made in connection with the origination of the
related Mortgage Loan, and (c) other matters to which like properties are
commonly subject which do not materially interfere with the benefits of the
security intended to be provided by such Mortgage.

         5. Immediately prior to the assignment of each Mortgage Loan to the
Depositor, the Seller had good title to, and was the sole owner of, such
Mortgage Loan free and clear of any pledge, lien, encumbrance or security
interest and had full right and authority, subject to no interest or
participation of, or agreement with, any other party, to sell and assign the
same pursuant to the Pooling and Servicing Agreement.

         6. There is no delinquent tax or assessment lien against any
Mortgaged Property.

                                   S-III-1
<PAGE>

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

         8. There are no mechanics' liens or claims for work, labor or
material affecting any Mortgaged Property which are or may be a lien prior to,
or equal with, the lien of such Mortgage, except those which are insured
against by the title insurance policy referred to in item 12 below.

         9. As of the Closing Date, to the best of the Seller's knowledge,
each Mortgaged Property is free of material damage and in good repair.

         10. Each Mortgage Loan at origination complied in all material
respects with applicable local, state and federal laws, including, without
limitation, usury, equal credit opportunity, predatory and abusive lending
laws, real estate settlement procedures, truth-in-lending and disclosure laws,
and consummation of the transactions contemplated hereby will not involve the
violation of any such laws.

         11. As of the Closing Date, neither the Seller nor any prior holder
of any Mortgage has modified the Mortgage in any material respect (except that
a Mortgage Loan may have been modified by a written instrument which has been
recorded or submitted for recordation, if necessary, to protect the interests
of the Certificateholders and the original or a copy of which has been
delivered to the Trustee); satisfied, cancelled or subordinated such Mortgage
in whole or in part; released the related Mortgaged Property in whole or in
part from the lien of such Mortgage; or executed any instrument of release,
cancellation, modification or satisfaction with respect thereto.

         12. A lender's policy of title insurance together with a condominium
endorsement and extended coverage endorsement, if applicable, in an amount at
least equal to the Cut-off Date Stated Principal Balance of each such Mortgage
Loan or a commitment (binder) to issue the same was effective on the date of
the origination of each Mortgage Loan, each such policy is valid and remains
in full force and effect, and each such policy was issued by a title insurer
qualified to do business in the jurisdiction where the Mortgaged Property is
located and acceptable to FNMA or FHLMC and is in a form acceptable to FNMA or
FHLMC, which policy insures the Seller and successor owners of indebtedness
secured by the insured Mortgage, as to the first priority lien of the Mortgage
subject to the exceptions set forth in paragraph 4 above; to the best of the
Seller's knowledge, no claims have been made under such mortgage title
insurance policy and no prior holder of the related Mortgage, including the
Seller, has done, by act or omission, anything which would impair the coverage
of such mortgage title insurance policy.

         13. Each Mortgage Loan was originated (within the meaning of Section
3(a)(41) of the Securities Exchange Act of 1934, as amended) by an entity that
satisfied at the time of origination the requirements of Section 3(a)(41) of
the Securities Exchange Act of 1934, as amended.

                                   S-III-2
<PAGE>

         14. To the best of the Seller's knowledge, all of the improvements
which were included for the purpose of determining the Appraised Value of the
Mortgaged Property lie wholly within the boundaries and building restriction
lines of such property, and no improvements on adjoining properties encroach
upon the Mortgaged Property.

         15. To the best of the Seller's knowledge, no improvement located on
or being part of the Mortgaged Property is in violation of any applicable
zoning law or regulation. To the best of the Seller's knowledge, all
inspections, licenses and certificates required to be made or issued with
respect to all occupied portions of the Mortgaged Property and, with respect
to the use and occupancy of the same, including but not limited to
certificates of occupancy and fire underwriting certificates, have been made
or obtained from the appropriate authorities, unless the lack thereof would
not have a material adverse effect on the value of such Mortgaged Property,
and the Mortgaged Property is lawfully occupied under applicable law.

         16. Each Mortgage Note and the related Mortgage are genuine, and each
is the legal, valid and binding obligation of the maker thereof, enforceable
in accordance with its terms and under applicable law. To the best of the
Seller's knowledge, all parties to the Mortgage Note and the Mortgage had
legal capacity to execute the Mortgage Note and the Mortgage and each Mortgage
Note and Mortgage have been duly and properly executed by such parties.

         17. The proceeds of the Mortgage Loans have been fully disbursed,
there is no requirement for future advances thereunder and any and all
requirements as to completion of any on-site or off-site improvements and as
to disbursements of any escrow funds therefor have been complied with. All
costs, fees and expenses incurred in making, or closing or recording the
Mortgage Loans were paid.

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

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

         20. Each Mortgage Note and each Mortgage is in substantially one of
the forms acceptable to FNMA or FHLMC, with such riders as have been
acceptable to FNMA or FHLMC, as the case may be.

         21. There exist no deficiencies with respect to escrow deposits and
payments, if such are required, for which customary arrangements for repayment
thereof have not been made, and no escrow deposits or payments of other
charges or payments due the Seller have been capitalized under the Mortgage or
the related Mortgage Note.

                                   S-III-3
<PAGE>

         22. The origination, underwriting and collection practices used with
respect to each Mortgage Loan have been in all respects legal, prudent and
customary in the mortgage lending and servicing business.

         23. There is no pledged account or other security other than real
estate securing the Mortgagor's obligations.

         24. No Mortgage Loan has a shared appreciation feature, or other
contingent interest feature.

         25. Each Mortgage Loan contains a customary "due on sale" clause.

         26. As of the Closing Date, 6 of the Mortgage Loans provide for a
prepayment penalty.

         27. Each Mortgage Loan which had a Loan-to-Value Ratio at origination
in excess of 80% is the subject of a Primary Insurance Policy that insures
that portion of the principal balance equal to a specified percentage times
the sum of the remaining principal balance of the related Mortgage Loan, the
accrued interest thereon and the related foreclosure expenses. The specified
percentage for mortgage loans with terms to maturity of between 25 and 30
years is 12% for Loan-to-Value Ratios between 80.01% and 85.00%, 25% for
Loan-to-Value Ratios between 85.01% and 90.00%, 30% for Loan-to-Value Ratios
between 90.01% and 95.00% and 35% for Loan-to-Value Ratios between 95.01% and
100%. The specified coverage percentage for mortgage loans with terms to
maturity of up to 20 years ranges from 6% to 12% for Loan-to-Value Ratios
between 80.01% to 85.00%; from 12% to 20% for Loan-to-Value Ratios between
85.01% to 90.00% and 20% to 25% for Loan-to-Value Ratios between 90.01% to
95.00%. Each such Primary Insurance Policy is issued by a Qualified Insurer.
All provisions of any such Primary Insurance Policy have been and are being
complied with, any such policy is in full force and effect, and all premiums
due thereunder have been paid. Any Mortgage subject to any such Primary
Insurance Policy obligates either the Mortgagor or the mortgagee thereunder to
maintain such insurance and to pay all premiums and charges in connection
therewith, subject, in each case, to the provisions of Section 3.09(b) of this
Agreement. The Mortgage Rate for each Mortgage Loan is net of any such
insurance premium.

         28. As of the Closing Date, the improvements upon each Mortgaged
Property are covered by a valid and existing hazard insurance policy with a
generally acceptable carrier that provides for fire and extended coverage and
coverage for such other hazards as are customary in the area where the
Mortgaged Property is located in an amount which is at least equal to the
lesser of (i) the maximum insurable value of the improvements securing such
Mortgage Loan or (ii) the greater of (a) the outstanding principal balance of
the Mortgage Loan and (b) an amount such that the proceeds of such policy
shall be sufficient to prevent the Mortgagor and/or the mortgagee from
becoming a co-insurer. If the Mortgaged Property is a condominium unit, it is
included under the coverage afforded by a blanket policy for the condominium
unit. All such individual insurance policies and all flood policies referred
to in item (28) below contain a standard mortgagee clause naming the Seller or
the original mortgagee, and its successors in interest, as mortgagee, and the
Seller has received no notice that any premiums due and payable thereon have
not been paid; the Mortgage obligates the

                                   S-III-4
<PAGE>

Mortgagor thereunder to maintain all such insurance including flood
insurance at the Mortgagor's cost and expense, and upon the Mortgagor's
failure to do so, authorizes the holder of the Mortgage to obtain and maintain
such insurance at the Mortgagor's cost and expense and to seek reimbursement
therefor from the Mortgagor.

         29. If the Mortgaged Property is in an area identified in the Federal
Register by the Federal Emergency Management Agency as having special flood
hazards, a flood insurance policy in a form meeting the requirements of the
current guidelines of the Federal Insurance Administration is in effect with
respect to such Mortgaged Property with a generally acceptable carrier in an
amount representing coverage not less than the least of (A) the original
outstanding principal balance of the Mortgage Loan, (B) the minimum amount
required to compensate for damage or loss on a replacement cost basis, or (C)
the maximum amount of insurance that is available under the Flood Disaster
Protection Act of 1973, as amended.

         30. To the best of the Seller's knowledge, there is no proceeding
occurring, pending or threatened for the total or partial condemnation of the
Mortgaged Property.

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

         32. Each Mortgaged Property is improved by a one- to four-family
residential dwelling including condominium units and dwelling units in PUDs,
which, to the best of the Seller's knowledge, does not include cooperatives or
mobile homes and does not constitute other than real property under state law.

         33. Each Mortgage Loan is being master serviced by the Master
Servicer.

         34. Any future advances made prior to the Cut-off Date have been
consolidated with the outstanding principal amount secured by the Mortgage,
and the secured principal amount, as consolidated, bears a single interest
rate and single repayment term reflected on the Mortgage Loan Schedule. The
consolidated principal amount does not exceed the original principal amount of
the Mortgage Loan. The Mortgage Note does not permit or obligate the holder of
the Mortgage Loan or any servicer on its behalf to make future advances to the
Mortgagor at the option of the Mortgagor.

         35. All taxes, governmental assessments, insurance premiums, water,
sewer and municipal charges, leasehold payments or ground rents which
previously became due and owing have been paid, or an escrow of funds has been
established in an amount sufficient to pay for every such item which remains
unpaid and which has been assessed, but is not yet due and payable. Except for
(A) payments in the nature of escrow payments, and (B) interest accruing from
the date of the Mortgage Note or date of disbursement of the Mortgage
proceeds, whichever is later, to the day which precedes by one month the Due
Date of the first installment of principal and interest, including without
limitation, taxes and insurance payments, neither the

                                   S-III-5
<PAGE>

Seller nor any servicer acting on its behalf has advanced funds, or
induced, solicited or knowingly received any advance of funds by a party other
than the Mortgagor, directly or indirectly, for the payment of any amount
required by the Mortgage.

         36. Each Mortgage Loan was underwritten in all material respects in
accordance with Countrywide Home Loans, Inc.'s underwriting guidelines as set
forth in the Prospectus Supplement.

         37. Other than with respect to any Streamlined Documentation Mortgage
Loan as to which the loan-to-value ratio of the related Original Mortgage Loan
was less than 90% at the time of the origination of such Original Mortgage
Loan, prior to the approval of the Mortgage Loan application, an appraisal of
the related Mortgaged Property was obtained from a qualified appraiser, duly
appointed by the originator, who had no interest, direct or indirect, in the
Mortgaged Property or in any loan made on the security thereof, and whose
compensation is not affected by the approval or disapproval of the Mortgage
Loan; such appraisal is in a form acceptable to FNMA and FHLMC.

         38. None of the Mortgage Loans are graduated payment mortgage loans
or a growing equity mortgage loans, and none of the Mortgage Loans are subject
to a buydown or similar arrangement.

         39. Any leasehold estate securing a Mortgage Loan has a term of not
less than five years in excess of the term of the related Mortgage Loan.

         40. The Mortgage Loans were selected from among the outstanding
fixed-rate one- to four-family mortgage loans in the portfolio of the Seller
at the Closing Date as to which the representations and warranties made as to
the Mortgage Loans set forth in this Schedule III can be made. Such selection
was not made in a manner intended to adversely affect the interests of
Certificateholders.

         41. Each Mortgage Loan has a payment date on or before the Due Date
in the month of the first Distribution Date.

         42. With respect to any Mortgage Loan as to which an affidavit has
been delivered to the Trustee certifying that the original Mortgage Note is a
Lost Mortgage Note, if such Mortgage Loan is subsequently in default, the
enforcement of such Mortgage Loan or of the related Mortgage by or on behalf
of the Trustee will not be materially adversely affected by the absence of the
original Mortgage Note. A "Lost Mortgage Note" is a Mortgage Note the original
of which was permanently lost or destroyed and has not been replaced.

         43. The Mortgage Loans, individually and in the aggregate, conform in
all material respects to the descriptions thereof in the Prospectus
Supplement.

         44. No proceeds from any Mortgage Loan underlying the Certificates
were used to finance single-premium credit insurance policies.

         45. [Reserved]

                                   S-III-6
<PAGE>

         46. [Reserved]

         47. No Mortgage Loan originated between October 1, 2002 and March 7,
2003 is subject to the Georgia Fair Lending Act, as amended. No Mortgage Loan
originated between October 1, 2002 and March 7, 2003 is secured by a Mortgaged
Property located in the state of Georgia, and there is no Mortgage Loan
originated on or after March 7, 2003 that is a "high cost home loan" as
defined under the Georgia Fair Lending Act.

         48. None of the Mortgage Loans are "high cost" loans as defined by
applicable predatory and abusive lending laws.

         49. None of the Mortgage Loans are covered by the Home Ownership and
Equity Protection Act of 1994 ("HOEPA").

         50. No Mortgage Loan is a "High-Cost Home Loan" as defined in the New
Jersey Home Ownership Act effective November 27, 2003 (N.J.S.A. 46:10B-22 et
seq.).

         51. No Mortgage Loan is a "High-Cost Home Loan" as defined in the New
Mexico Home Loan Protection Act effective January 1, 2004 (N.M. Stat. Ann.
ss.ss. 58-21a-1 et seq.).

         52. All of the Mortgage Loans were originated in compliance with all
applicable laws, including, but not limited to, all applicable anti-predatory
and abusive lending laws.

         53. [Reserved]

         54. No Mortgage Loan originated on or after October 1, 2002 through
March 6, 2003 is governed by the Georgia Fair Lending Act.

         55. [Reserved]

         56. [Reserved]

         57. [Reserved]

         58. The aggregate principal balance of the Discount Mortgage Loans
will not exceed $18,309,625.

                                   S-III-7
<PAGE>

                                  SCHEDULE IV
                                  CWMBS, Inc.
                      Mortgage Pass-Through Certificates
                                Series 2005-19

             Representations and Warranties of the Master Servicer

         Countrywide Home Loans Servicing LP ("Countrywide Servicing") hereby
makes the representations and warranties set forth in this Schedule IV to the
Depositor, the Seller and the Trustee, as of the Closing Date. Capitalized terms
used but not otherwise defined in this Schedule IV shall have the meanings
ascribed thereto in the Pooling and Servicing Agreement (the "Pooling and
Servicing Agreement") relating to the above-referenced Series, among EMC
Mortgage Corporation, as seller, Countrywide Home Loans Servicing LP, as master
servicer, CWMBS, Inc., as depositor, and The Bank of New York, as trustee.

         1. Countrywide Servicing is duly organized as a limited partnership
and is validly existing and in good standing under the laws of the State of
Texas and is duly authorized and qualified to transact any and all business
contemplated by the Pooling and Servicing Agreement to be conducted by
Countrywide Servicing in any state in which a Mortgaged Property is located or
is otherwise not required under applicable law to effect such qualification
and, in any event, is in compliance with the doing business laws of any such
state, to the extent necessary to perform any of its obligations under the
Pooling and Servicing Agreement in accordance with the terms thereof.

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

         3. The execution and delivery of the Pooling and Servicing Agreement
by Countrywide Servicing, the servicing of the Mortgage Loans by Countrywide
Servicing under the Pooling and Servicing Agreement, the consummation of any
other of the transactions contemplated by the Pooling and Servicing Agreement,
and the fulfillment of or compliance with the terms thereof are in the
ordinary course of business of Countrywide Servicing and will not (A) result
in a material breach of any term or provision of the certificate of limited
partnership, partnership agreement or other organizational document of
Countrywide Servicing or (B) materially conflict with, result in a material
breach, violation or acceleration of, or result in a material default under,
the terms of any other material agreement or instrument to which Countrywide
Servicing is a party or by which it may be bound, or (C) constitute a material

                                    S-IV-1
<PAGE>

violation of any statute, order or regulation applicable to Countrywide
Servicing of any court, regulatory body, administrative agency or governmental
body having jurisdiction over Countrywide Servicing; and Countrywide Servicing
is not in breach or violation of any material indenture or other material
agreement or instrument, or in violation of any statute, order or regulation
of any court, regulatory body, administrative agency or governmental body
having jurisdiction over it which breach or violation may materially impair
the ability of Countrywide Servicing to perform or meet any of its obligations
under the Pooling and Servicing Agreement.

         4. Countrywide Servicing is an approved servicer of conventional
mortgage loans for FNMA or FHLMC and is a mortgagee approved by the Secretary
of Housing and Urban Development pursuant to sections 203 and 211 of the
National Housing Act.

         5. No litigation is pending or, to the best of Countrywide
Servicing's knowledge, threatened, against Countrywide Servicing that would
materially and adversely affect the execution, delivery or enforceability of
the Pooling and Servicing Agreement or the ability of Countrywide Servicing to
service the Mortgage Loans or to perform any of its other obligations under
the Pooling and Servicing Agreement in accordance with the terms thereof.

         6. No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by Countrywide Servicing of, or compliance by Countrywide
Servicing with, the Pooling and Servicing Agreement or the consummation of the
transactions contemplated thereby, or if any such consent, approval,
authorization or order is required, Countrywide Servicing has obtained the
same.

         7. Countrywide Servicing is a member of MERS in good standing, and
will comply in all material respects with the rules and procedures of MERS in
connection with the servicing of the MERS Mortgage Loans for as long as such
Mortgage Loans are registered with MERS.

         8. Countrywide Servicing has furnished, in accordance with the Fair
Credit Reporting Act and its implementing regulations, accurate and complete
information on its borrower credit files related to the mortgage loans to
Equifax, Experian and Trans Union Credit Information Company on a monthly
basis.

                                    S-IV-2
<PAGE>

                                   SCHEDULE V
                           Principal Balance Schedule

               [If applicable, attached to Prospectus Supplement]

                                    S-V-1
<PAGE>

<TABLE>
<CAPTION>

                                  SCHEDULE VI
                    Form of Monthly Master Servicer Report

---------------------------------------------------------------------------------------------------------------
                                         LOAN LEVEL REPORTING SYSTEM
---------------------------------------------------------------------------------------------------------------
                                              DATABASE STRUCTURE
---------------------------------------------------------------------------------------------------------------
                                                [MONTH, YEAR]
---------------------------------------------------------------------------------------------------------------
       Field Number            Field Name              Field Type            Field Width            Dec
---------------------------------------------------------------------------------------------------------------
<S>                         <C>                     <C>                            <C>               <C>
        1                   INVNUM                  Numeric                         4
---------------------------------------------------------------------------------------------------------------
        2                   INVBLK                  Numeric                         4
---------------------------------------------------------------------------------------------------------------
        3                   INACNU                  Character                       8
---------------------------------------------------------------------------------------------------------------
        4                   BEGSCH                  Numeric                        15                2
---------------------------------------------------------------------------------------------------------------
        5                   SCHPRN                  Numeric                        13                2
---------------------------------------------------------------------------------------------------------------
        6                   TADPRN                  Numeric                        11                2
---------------------------------------------------------------------------------------------------------------
        7                   LIQEPB                  Numeric                        11                2
---------------------------------------------------------------------------------------------------------------
        8                   ACTCOD                  Numeric                        11
---------------------------------------------------------------------------------------------------------------
        9                   ACTDAT                  Numeric                         4
---------------------------------------------------------------------------------------------------------------
        10                  INTPMT                  Numeric                         8
---------------------------------------------------------------------------------------------------------------
        11                  PRNPMT                  Numeric                        13                2
---------------------------------------------------------------------------------------------------------------
        12                  ENDSCH                  Numeric                        13                2
---------------------------------------------------------------------------------------------------------------
        13                  SCHNOT                  Numeric                        13                2
---------------------------------------------------------------------------------------------------------------
        14                  SCHPAS                  Numeric                         7                3
--------------------------- ----------------------- -------------------- -------------------- -----------------
        15                  PRINPT                  Numeric                         7                3
---------------------------------------------------------------------------------------------------------------
        16                  PRIBAL                  Numeric                        11                2
---------------------------------------------------------------------------------------------------------------
        17                  LPIDTE                  Numeric                        13                2
---------------------------------------------------------------------------------------------------------------
        18                  DELPRN                  Numeric                         7
---------------------------------------------------------------------------------------------------------------
        19                  PPDPRN                  Numeric                        11                2
---------------------------------------------------------------------------------------------------------------
        20                  DELPRN                  Numeric                        11                2
---------------------------------------------------------------------------------------------------------------
        21                  NXTCHG                  Numeric                         8
---------------------------------------------------------------------------------------------------------------
        22                  ARMNOT                  Numeric                         7                3
---------------------------------------------------------------------------------------------------------------
        23                  ARMPAS                  Numeric                         7                3
---------------------------------------------------------------------------------------------------------------
        24                  ARMPMT                  Numeric                        11                2
---------------------------------------------------------------------------------------------------------------
        25                  ZZTYPE                  Character                       2
---------------------------------------------------------------------------------------------------------------
        26                  ISSUID                  Character                       1
---------------------------------------------------------------------------------------------------------------
        27                  KEYNAME                 Character                       8
---------------------------------------------------------------------------------------------------------------
TOTAL                                                                             240
---------------------------------------------------------------------------------------------------------------
    Suggested Format:       DBASE file
                            Modem transmission
---------------------------------------------------------------------------------------------------------------

</TABLE>
                                    S-VI-1

<PAGE>

                                    S-VI-2

<PAGE>
                                   EXHIBIT A

                         [FORM OF SENIOR CERTIFICATE]

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, AS AMENDED (THE "CODE").

[UNTIL THIS CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA QUALIFYING
UNDERWRITING, NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE
TRANSFERRED UNLESS THE TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A
REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE
BENEFIT PLAN SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED, OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE PROVISIONS OF THE
AGREEMENT REFERRED TO HEREIN. SUCH REPRESENTATION SHALL BE DEEMED TO HAVE BEEN
MADE TO THE TRUSTEE BY THE TRANSFEREE'S ACCEPTANCE OF A CERTIFICATE OF THIS
CLASS AND BY A BENEFICIAL OWNER'S ACCEPTANCE OF ITS INTEREST IN A CERTIFICATE
OF THIS CLASS. NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY HEREIN, UNTIL
THIS CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA QUALIFYING UNDERWRITING, ANY
PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF AN EMPLOYEE BENEFIT
PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OPINION OF COUNSEL
SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF NO
EFFECT.]

                                     A-1
<PAGE>

Certificate No.                          :

Cut-off Date                             :

First Distribution Date                  :

Initial Certificate Balance
of this Certificate
("Denomination")                         :        $

Initial Certificate Balance
of all Certificates of
this Class                               :        $

CUSIP                                    :

Interest Rate                            :

Maturity Date                            :

                                  CWMBS, INC.
           Mortgage Pass-Through Certificates, Series 200____-____
                                   Class [ ]

         evidencing a percentage interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to a
         Trust Fund consisting primarily of a pool of conventional mortgage
         loans (the "Mortgage Loans") secured by first liens on one- to
         four-family residential properties

                           CWMBS, Inc., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Balance at any time may be less
than the Certificate Balance as set forth herein. This Certificate does not
evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Seller, the Master Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.

         This certifies that ______ is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the denomination
of this Certificate by the aggregate Initial Certificate Balance of all
Certificates of the Class to which this Certificate belongs) in certain
monthly distributions with respect to a Trust Fund consisting primarily of the
Mortgage

                                     A-2
<PAGE>

Loans deposited by CWMBS, Inc. (the "Depositor"). The Trust Fund was
created pursuant to a Pooling and Servicing Agreement dated as of the Cut-off
Date specified above (the "Agreement") among the Depositor, EMC Mortgage
Corporation, as seller (the "Seller"), Countrywide Home Loans Servicing LP, as
master servicer (the "Master Servicer") and The Bank of New York, as trustee
(the "Trustee"). 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.

         [Until this certificate has been the subject of an ERISA-Qualifying
Underwriting, no transfer of a Certificate of this Class shall be made unless
the Trustee shall have received either (i) a representation letter from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Trustee, to the effect that such transferee is not an
employee benefit plan subject to Section 406 of ERISA or a plan subject to
Section 4975 of the Code, nor a person acting on behalf of or investing plan
assets of any such plan, which representation letter shall not be an expense
of the Trustee or the Master Servicer, or (ii) in the case of any such
Certificate presented for registration in the name of an employee benefit plan
subject to ERISA or Section 4975 of the Code (or comparable provisions of any
subsequent enactments), or a trustee of any such plan or any other person
acting on behalf of any such plan, an Opinion of Counsel satisfactory to the
Trustee and the Master Servicer to the effect that the purchase or holding of
such Certificate will not result in a non-exempt prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code, and will not subject the
Trustee or the Master Servicer to any obligation in addition to those
undertaken in the Agreement, which Opinion of Counsel shall not be an expense
of the Trustee or the Master Servicer. Such representation shall be deemed to
have been made to the Trustee by the Transferee's acceptance of a Certificate
of this Class and by a beneficial owner's acceptance of its interest in a
Certificate of this Class. Notwithstanding anything else to the contrary
herein, until such certificate has been the subject of an ERISA-Qualifying
Underwriting, any purported transfer of a Certificate of this Class to or on
behalf of an employee benefit plan subject to ERISA or to the Code without the
opinion of counsel satisfactory to the Trustee as described above shall be
void and of no effect.]

         Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall
for all purposes have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                     * * *

                                     A-3
<PAGE>

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

Dated:  ____________, 20__

                                                  THE BANK OF NEW YORK,
                                                  as Trustee

                                                  By ______________________

Countersigned:

By
   ---------------------------------------------
        Authorized Signatory of
        THE BANK OF NEW YORK,
        as Trustee

                                     A-4
<PAGE>

                                   EXHIBIT B

                      [FORM OF SUBORDINATED CERTIFICATE]

[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, AS AMENDED (THE "CODE").

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN CERTIFICATES
AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

[THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT
REGISTRATION THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED
FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.]

[NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS
THE TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE
EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR IF SUCH
CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING UNDERWRITING, A PLAN
SUBJECT TO SECTION 4975 OF THE CODE, OR A PERSON INVESTING ON BEHALF OF OR
WITH PLAN ASSETS OF SUCH A PLAN, OR THAT SUCH TRANSFEREE IS AN INSURANCE
COMPANY WHICH IS PURCHASING CERTIFICATES WITH FUNDS CONTAINED IN AN "INSURANCE
COMPANY GENERAL ACCOUNTS" AS SUCH TERM IS DEFINED IN SECTION V(e) OF
PROHIBITED TRANSACTION CLASS EXEMPTION 95-60 ("PTCE 95-60"), AND THE PURCHASE
AND HOLDING OF SUCH CERTIFICATES ARE COVERED UNDER SECTION I AND III OF PTCE
95-60 OR AN OPINION OF COUNSEL IN

                                     B-1
<PAGE>

ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.
NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY HEREIN, ANY PURPORTED TRANSFER
OF THIS CERTIFICATE TO OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO
ERISA OR TO THE CODE WITHOUT THE OPINION OF COUNSEL SATISFACTORY TO THE
TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF NO EFFECT.]

                                     B-2
<PAGE>

Certificate No.   :

Cut-off Date                             :

First Distribution Date                  :

Initial Certificate Balance
of this Certificate
("Denomination")                         :        $

Initial Certificate Balance
of all Certificates of
this Class                               :        $

CUSIP                                    :

Interest Rate                            :

Maturity Date                            :

                                  CWMBS, INC.
            Mortgage Pass-Through Certificates, Series 200____-____
                                   Class [ ]

         evidencing a percentage interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to a
         Trust Fund consisting primarily of a pool of conventional mortgage
         loans (the "Mortgage Loans") secured by first liens on one- to
         four-family residential properties

                           CWMBS, Inc., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Balance at any time may be less
than the Certificate Balance as set forth herein. This Certificate does not
evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Seller, the Master Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.

         This certifies that ________________ is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
denomination of this Certificate by the aggregate Initial Certificate Balance
of all Certificates of the Class to which this Certificate

                                     B-3
<PAGE>

belongs) in certain monthly distributions with respect to a Trust Fund
consisting primarily of the Mortgage Loans deposited by CWMBS, Inc. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, EMC Mortgage Corporation, as seller (the "Seller"), Countrywide
Home Loans Servicing LP, as master servicer (the "Master Servicer") and The
Bank of New York, as trustee (the "Trustee"). 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.

         [No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under said Act and such laws. In the event that a
transfer is to be made in reliance upon an exemption from the Securities Act
and such laws, in order to assure compliance with the Securities Act and such
laws, the Certificateholder desiring to effect such transfer and such
Certificateholder's prospective transferee shall each certify to the Trustee
in writing the facts surrounding the transfer. In the event that such a
transfer is to be made within three years from the date of the initial
issuance of Certificates pursuant hereto, there shall also be delivered
(except in the case of a transfer pursuant to Rule 144A of the Securities Act)
to the Trustee an Opinion of Counsel that such transfer may be made pursuant
to an exemption from the Securities Act and such state securities laws, which
Opinion of Counsel shall not be obtained at the expense of the Trustee, the
Seller, the Master Servicer or the Depositor. The Holder hereof desiring to
effect such transfer shall, and does hereby agree to, indemnify the Trustee
and the Depositor against any liability that may result if the transfer is not
so exempt or is not made in accordance with such federal and state laws.]

         [No transfer of a Certificate of this Class shall be made unless the
Trustee shall have received either (i) a representation letter from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Trustee, to the effect that such transferee is not an
employee benefit plan subject to Section 406 of ERISA or a plan subject to
Section 4975 of the Code, nor a person acting on behalf of or investing plan
assets of any such plan, which representation letter shall not be an expense
of the Trustee or the Master Servicer, (ii) if such certificate has been the
subject of an ERISA Qualifying Underwriting and the purchaser is an insurance
company, a representation that the purchaser is an insurance company which is
purchasing such Certificates with funds contained in an "insurance company
general account" (as such term is defined in Section V(e) of Prohibited
Transaction Class Exemption 95-60 ("PTCE 95-60")) and that the purchase and
holding of such Certificates are covered under Sections I and III of PTCE
95-60, or (iii) in the case of any such Certificate presented for registration
in the name of an employee benefit plan subject to ERISA or Section 4975 of
the Code (or comparable provisions of any subsequent enactments), or a trustee
of any such plan or any other person acting on behalf of any such plan, an
Opinion of Counsel satisfactory to the Trustee and the Master Servicer to the
effect that the purchase or holding of such Certificate will

                                     B-4
<PAGE>

not result in a prohibited transaction under Section 406 of ERISA or Section
4975 of the Code, will not result in the assets of the Trust Fund being deemed
to be "plan assets" and subject to the prohibited transaction provisions of
ERISA and the Code and will not subject the Trustee to any obligation in
addition to those undertaken in the Agreement, which Opinion of Counsel shall
not be an expense of the Trustee or the Master Servicer. Notwithstanding
anything else to the contrary herein, any purported transfer of a Certificate
of this Class to or on behalf of an employee benefit plan subject to ERISA or
to the Code without the opinion of counsel satisfactory to the Trustee as
described above shall be void and of no effect.]

         Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall
for all purposes have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                     * * *

                                     B-5
<PAGE>

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

Dated:  ____________, 20__

                                                  THE BANK OF NEW YORK,
                                                  as Trustee

                                                  By ______________________

Countersigned:

By
   --------------------------------------------
         Authorized Signatory of
         THE BANK OF NEW YORK,
         as Trustee

                                     B-6
<PAGE>

                                   EXHIBIT C

                        [FORM OF RESIDUAL CERTIFICATE]

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, AS AMENDED (THE "CODE").

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN ACCORDANCE
WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE
EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR A PLAN SUBJECT
TO SECTION 4975 OF THE CODE, OR A PERSON INVESTING ON BEHALF OF OR WITH PLAN
ASSETS OF SUCH A PLAN, OR THAT SUCH TRANSFEREE IS AN INSURANCE COMPANY WHICH
IS PURCHASING CERTIFICATES WITH FUNDS CONTAINED IN AN "INSURANCE COMPANY
GENERAL ACCOUNTS" AS SUCH TERM IS DEFINED IN SECTION V(e) OF PROHIBITED
TRANSACTION CLASS EXEMPTION 95-60 ("PTCE 95-60"), AND THE PURCHASE AND HOLDING
OF SUCH CERTIFICATES ARE COVERED UNDER SECTION I AND III OF PTCE 95-60 OR AN
OPINION OF COUNSEL IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED
TO HEREIN. NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY HEREIN, ANY PURPORTED
TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN
SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OPINION OF COUNSEL SATISFACTORY TO
THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF NO EFFECT.

[THIS CERTIFICATE REPRESENTS THE "TAX MATTERS PERSON RESIDUAL INTEREST" ISSUED
UNDER THE POOLING AND SERVICING AGREEMENT REFERRED TO BELOW AND MAY NOT BE
TRANSFERRED TO ANY PERSON EXCEPT IN CONNECTION WITH THE ASSUMPTION BY THE
TRANSFEREE OF THE DUTIES OF THE SERVICER UNDER SUCH AGREEMENT.]

                                     C-1
<PAGE>

Certificate No.                          :

Cut-off Date                             :

First Distribution Date                  :

Initial Certificate Balance
of this Certificate
("Denomination")                         :        $

Initial Certificate Balance
of all Certificates of
this Class                               :        $

CUSIP                                    :

Interest Rate                            :

Maturity Date                            :

                                  CWMBS, INC.
            Mortgage Pass-Through Certificates, Series 200____-____
                                   Class A-R

         evidencing the distributions allocable to the Class A-R Certificates
         with respect to a Trust Fund consisting primarily of a pool of
         conventional mortgage loans (the "Mortgage Loans") secured by first
         liens on one- to four-family residential properties

                           CWMBS, Inc., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Balance at any time may be less
than the Certificate Balance as set forth herein. This Certificate does not
evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Seller, the Master Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.

         This certifies that________ is the registered owner of the Percentage
Interest (obtained by dividing the Denomination of this Certificate by the
aggregate Initial Certificate Balance of all Certificates of the Class to
which this Certificate belongs) in certain monthly distributions with respect
to a Trust Fund consisting of the Mortgage Loans deposited by CWMBS, Inc. (the

                                     C-2
<PAGE>

"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, EMC Mortgage Corporation, as seller (the "Seller"), Countrywide
Home Loans Servicing LP, as master servicer (the "Master Servicer") and The
Bank of New York, as trustee (the "Trustee"). 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.

         Any distribution of the proceeds of any remaining assets of the Trust
Fund will be made only upon presentment and surrender of this Class A-R
Certificate at the Corporate Trust Office or the office or agency maintained
by the Trustee in New York, New York.

         No transfer of a Class A-R Certificate shall be made unless the
Trustee shall have received either (i) a representation letter from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Trustee, to the effect that such transferee is not an
employee benefit plan subject to Section 406 of ERISA or a plan subject to
Section 4975 of the Code, nor a person acting on behalf of or investing plan
assets of any such plan, which representation letter shall not be an expense
of the Trustee or the Master Servicer, (ii) or that such Transferee is an
insurance company which is purchasing such Certificates with funds contained
in an "insurance company general account" (as such term is defined in Section
V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")) and that
the purchase and holding of such Certificates are covered under Sections I and
III of PTCE 95-60 or (iii) an Opinion of Counsel satisfactory to the Trustee
and the Master Servicer to the effect that the purchase or holding of such
Class A-R Certificate will not result in a non-exempt prohibited transaction
under Section 406 of ERISA or Section 4975 of the Code and will not subject
the Trustee or the Master Servicer to any obligation in addition to those
undertaken in this Agreement, which Opinion of Counsel shall not be an expense
of the Trustee or the Master Servicer. Notwithstanding anything else to the
contrary herein, any purported transfer of a Class A-R Certificate to or on
behalf of an employee benefit plan subject to ERISA or to the Code without the
opinion of counsel satisfactory to the Trustee as described above shall be
void and of no effect.

         Each Holder of this Class A-R Certificate will be deemed to have
agreed to be bound by the restrictions of the Agreement, including but not
limited to the restrictions that (i) each person holding or acquiring any
Ownership Interest in this Class A-R Certificate must be a Permitted
Transferee, (ii) no Ownership Interest in this Class A-R Certificate may be
transferred without delivery to the Trustee of (a) a transfer affidavit of the
proposed transferee and (b) a transfer certificate of the transferor, each of
such documents to be in the form described in the Agreement, (iii) each person
holding or acquiring any Ownership Interest in this Class A-R Certificate must
agree to require a transfer affidavit and to deliver a transfer certificate to
the Trustee as required pursuant to the Agreement, (iv) each person holding or
acquiring an Ownership Interest in this Class A-R Certificate must agree not
to transfer an Ownership Interest in this Class A-R Certificate if it has
actual knowledge that the proposed transferee is not a

                                     C-3
<PAGE>

Permitted Transferee and (v) any attempted or purported transfer of any
Ownership Interest in this Class A-R Certificate in violation of such
restrictions will be absolutely null and void and will vest no rights in the
purported transferee.

         Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall
for all purposes have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                    * * *

                                     C-4
<PAGE>

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

Dated:  ____________, 20__

                                                    THE BANK OF NEW YORK,
                                                    as Trustee

                                                    By ______________________

Countersigned:

By ___________________________
         Authorized Signatory of
         THE BANK OF NEW YORK,
         as Trustee

                                     C-5
<PAGE>

                                   EXHIBIT D

                     [FORM OF NOTIONAL AMOUNT CERTIFICATE]

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.

THIS CERTIFICATE HAS NO PRINCIPAL BALANCE AND IS NOT ENTITLED TO ANY
DISTRIBUTION IN RESPECT OF PRINCIPAL.

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, AS AMENDED (THE "CODE").

[UNTIL THIS CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA QUALIFYING
UNDERWRITING, NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE
TRANSFERRED UNLESS THE TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A
REPRESENTATION LETTER TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE
BENEFIT PLAN SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED, OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE PROVISIONS OF THE
AGREEMENT REFERRED TO HEREIN. SUCH REPRESENTATION SHALL BE DEEMED TO HAVE BEEN
MADE TO THE TRUSTEE BY THE TRANSFEREE'S ACCEPTANCE OF A CERTIFICATE OF THIS
CLASS AND BY A BENEFICIAL OWNER'S ACCEPTANCE OF ITS INTEREST IN A CERTIFICATE
OF THIS CLASS. NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY HEREIN, UNTIL
THIS CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA QUALIFYING UNDERWRITING, ANY
PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF AN EMPLOYEE BENEFIT
PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OPINION OF COUNSEL
SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF NO
EFFECT.]

                                     D-1
<PAGE>

Certificate No.                          :

Cut-off Date                             :

First Distribution Date                  :

Initial Notional Amount
of this Certificate
("Denomination")                         :        $

Initial Notional Amount
of all Certificates
of this Class                            :        $

CUSIP                                    :

Interest Rate                            :        Interest Only

Maturity Date                            :

                                  CWMBS, INC.
            Mortgage Pass-Through Certificates, Series 200____-____
                                   Class [ ]

         evidencing a percentage interest in the distributions allocable to
         the Certificates of the above-referenced Class with respect to a
         Trust Fund consisting primarily of a pool of conventional mortgage
         loans (the "Mortgage Loans") secured by first liens on one- to
         four-family residential properties

                           CWMBS, Inc., as Depositor

         The Notional Amount of this certificate at any time, may be less than
the Notional Amount as set forth herein. This Certificate does not evidence an
obligation of, or an interest in, and is not guaranteed by the Depositor, the
Seller, the Master Servicer or the Trustee referred to below or any of their
respective affiliates. Neither this Certificate nor the Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality.

         This certifies that________ is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the denomination
of this Certificate by the aggregate Initial Notional Amount of all
Certificates of the Class to which this Certificate belongs) in certain
monthly distributions with respect to a Trust Fund consisting primarily of the
Mortgage Loans deposited by CWMBS, Inc. (the "Depositor"). The Trust Fund was
created

                                     D-2
<PAGE>

pursuant to a Pooling and Servicing Agreement dated as of the Cut-off
Date specified above (the "Agreement") among the Depositor, EMC Mortgage
Corporation, as seller (the "Seller"), Countrywide Home Loans Servicing LP, as
master servicer (the "Master Servicer") and The Bank of New York, as trustee
(the "Trustee"). 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.

         [Until this certificate has been the subject of an ERISA-Qualifying
Underwriting, no transfer of a Certificate of this Class shall be made unless
the Trustee shall have received either (i) a representation letter from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Trustee, to the effect that such transferee is not an
employee benefit plan subject to Section 406 of ERISA or a plan subject to
Section 4975 of the Code, nor a person acting on behalf of or investing plan
assets of any such plan, which representation letter shall not be an expense
of the Trustee or the Master Servicer, or (ii) in the case of any such
Certificate presented for registration in the name of an employee benefit plan
subject to ERISA or Section 4975 of the Code (or comparable provisions of any
subsequent enactments), or a trustee of any such plan or any other person
acting on behalf of any such plan, an Opinion of Counsel satisfactory to the
Trustee and the Master Servicer to the effect that the purchase or holding of
such Certificate will not result in a non-exempt prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code, and will not subject the
Trustee or the Master Servicer to any obligation in addition to those
undertaken in the Agreement, which Opinion of Counsel shall not be an expense
of the Trustee or the Master Servicer. Such representation shall be deemed to
have been made to the Trustee by the Transferee's acceptance of a Certificate
of this Class and by a beneficial owner's acceptance of its interest in a
Certificate of this Class. Notwithstanding anything else to the contrary
herein, until such certificate has been the subject of an ERISA-Qualifying
Underwriting, any purported transfer of a Certificate of this Class to or on
behalf of an employee benefit plan subject to ERISA or to the Code without the
opinion of counsel satisfactory to the Trustee as described above shall be
void and of no effect.]

         Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall
for all purposes have the same effect as if set forth at this place.

         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                     * * *

                                     D-3
<PAGE>

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

Dated:  ____________, 20__

                                                          THE BANK OF NEW YORK,
                                                          as Trustee

                                                          By
                                                             ------------------

Countersigned:

By
   -----------------------------------------------
         Authorized Signatory of
         THE BANK OF NEW YORK,
         as Trustee

                                     D-4
<PAGE>

                                   EXHIBIT E

                       [FORM OF REVERSE OF CERTIFICATES]

                                  CWMBS, INC.
                      Mortgage Pass-Through Certificates

         This Certificate is one of a duly authorized issue of Certificates
designated as CWMBS, Inc. Mortgage Pass-Through Certificates, of the Series
specified on the face hereof (herein collectively called the "Certificates"),
and representing a beneficial ownership interest in the Trust Fund created by
the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account
for payment hereunder and that the Trustee is not liable to the
Certificateholders for any amount payable under this Certificate or the
Agreement or, except as expressly provided in the Agreement, subject to any
liability under the Agreement.

         This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for the interests, rights and limitations
of rights, benefits, obligations and duties evidenced thereby, and the rights,
duties and immunities of the Trustee.

         Pursuant to the terms of the Agreement, a distribution will be made
on the 25th day of each month or, if such day is not a Business Day, the
Business Day immediately following (the "Distribution Date"), commencing on
the first Distribution Date specified on the face hereof, to the Person in
whose name this Certificate is registered at the close of business on the
applicable Record Date in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate
belongs on such Distribution Date pursuant to the Agreement. The Record Date
applicable to each Distribution Date is the last Business Day of the month
next preceding the month of such Distribution Date.

         Distributions on this Certificate shall be made by wire transfer of
immediately available funds to the account of the Holder hereof at a bank or
other entity having appropriate facilities therefor, if such Certificateholder
shall have so notified the Trustee in writing at least five Business Days
prior to the related Record Date and such Certificateholder shall satisfy the
conditions to receive such form of payment set forth in the Agreement, or, if
not, by check mailed by first class mail to the address of such
Certificateholder appearing in the Certificate Register. The final
distribution on each Certificate will be made in like manner, but only upon
presentment and surrender of such Certificate at the Corporate Trust Office or
such other location specified in the notice to Certificateholders of such
final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any
time by the Depositor, the Master Servicer and the

                                     E-1
<PAGE>

Trustee with the consent of the Holders of Certificates affected by
such amendment evidencing the requisite Percentage Interest, as provided in
the Agreement. 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 therefor or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof,
in certain limited circumstances, without the consent of the Holders of any of
the 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 of the Trustee upon surrender of this Certificate for
registration of transfer at the Corporate Trust Office or the office or agency
maintained by the Trustee in New York, New York, accompanied by a 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 the same
Class in authorized denominations and evidencing the same aggregate Percentage
Interest in the Trust Fund will be issued to the designated transferee or
transferees.

         The Certificates are issuable only as registered Certificates without
coupons 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 the same Class in authorized
denominations and evidencing the same aggregate Percentage Interest, as
requested by the Holder surrendering the same.

         No service charge will be made for any such registration of transfer
or exchange, 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 Seller and the Trustee and
any agent of the Depositor or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and
neither the Depositor, the Trustee, nor any such agent shall be affected by
any notice to the contrary.

         On any Distribution Date on which the Pool Stated Principal Balance
is less than or equal to 10% of the Cut-off Date Pool Principal Balance, the
Master Servicer will have the option, subject to the limitations set forth in
the Agreement, to repurchase, in whole, from the Trust Fund all remaining
Mortgage Loans and all property acquired in respect of the Mortgage Loans at a
purchase price determined as provided in the Agreement. In the event that no
such optional termination occurs, the obligations and responsibilities created
by the Agreement will terminate upon the later of the maturity or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund or the disposition of all property in respect
thereof and the distribution to Certificateholders of all amounts required to
be distributed pursuant to the Agreement. In no event, however, will the trust
created by the Agreement continue beyond the

                                     E-2
<PAGE>

expiration of 21 years from the death of the last survivor of the descendants
living at the date of the Agreement of a certain person named in the Agreement.

         Any term used herein that is defined in the Agreement shall have the
meaning assigned in the Agreement, and nothing herein shall be deemed
inconsistent with that meaning.

                                     E-3
<PAGE>

                                  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)

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to
assignee on the Certificate Register of the Trust Fund.

         I (We) further direct the Trustee 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

                           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.

                                     E-4
<PAGE>

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 who, being by me duly sworn, did depose and say that he executed
the foregoing instrument.

                                        ___________________________________
                                                      Notary Public

                                [Notarial Seal]

                                     E-5
<PAGE>

                                   EXHIBIT F

                   FORM OF INITIAL CERTIFICATION OF TRUSTEE

                                    [date]

[Depositor]

[Seller]

[Master Servicer]

         Re:    Pooling and Servicing Agreement among CWMBS, Inc., as
                Depositor, EMC Mortgage Corporation, as Seller, Countrywide
                Home Loans Servicing LP, as Master Servicer, and The Bank of
                New York, as Trustee, CHL Mortgage Pass-Through Trust 2005-19,
                Mortgage Pass-Through Certificates, Series 2005-19
                --------------------------------------------------

Gentlemen:

         In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement (the "Pooling and Servicing Agreement"), the undersigned,
as Trustee, hereby certifies that, as to each Mortgage Loan listed in the
Mortgage Loan Schedule (other than any Mortgage Loan paid in full or listed on
the attached schedule) it has received:

         (i) (a) the original Mortgage Note endorsed in the following form:
"Pay to the order of __________, without recourse" or (b) with respect to any
Lost Mortgage Note, a lost note affidavit from Countrywide stating that the
original Mortgage Note was lost or destroyed; and

         (ii) a duly executed assignment of the Mortgage (which may be
included in a blanket assignment or assignments).

         Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to such
Mortgage Loan.

         The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to:
(i) the validity, legality, sufficiency, enforceability or genuineness of any
of the documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule, or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.

                                     F-1
<PAGE>

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.

                                                THE BANK OF NEW YORK,
                                                 as Trustee

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

                                     F-2
<PAGE>

                                   EXHIBIT G

                                  [RESERVED]

                                     G-1
<PAGE>

                                   EXHIBIT H

                    FORM OF FINAL CERTIFICATION OF TRUSTEE

                                    [date]

[Depositor]

[Seller]

[Master Servicer]

         Re:   Pooling and Servicing Agreement among CWMBS, Inc., as Depositor,
               EMC Mortgage Corporation, as Seller, Countrywide Home Loans
               Servicing LP, as Master  Servicer,  and The Bank of New York, as
               Trustee, CHL Mortgage Pass-Through Trust 2005-19,
               Mortgage Pass-Through Certificates, Series 2005-19
               --------------------------------------------------

Gentlemen:

         In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement (the "Pooling and Servicing Agreement"), the undersigned,
as Trustee, hereby certifies that as to each Mortgage Loan listed in the
Mortgage Loan Schedule (other than any Mortgage Loan paid in full or listed on
the attached Document Exception Report) it has received:

         (i)      the original Mortgage Note, endorsed by Countrywide or the
                  originator of such Mortgage Loan, without recourse in the
                  following form: "Pay to the order of _______________ without
                  recourse", with all intervening endorsements that show a
                  complete chain of endorsement from the originator to
                  Countrywide, or, if the original Mortgage Note has been lost
                  or destroyed and not replaced, an original lost note
                  affidavit from Countrywide, stating that the original
                  Mortgage Note was lost or destroyed, together with a copy of
                  the related Mortgage Note;

        (ii)      in the case of each Mortgage Loan that is not a MERS
                  Mortgage Loan, the original recorded Mortgage, [and in the
                  case of each Mortgage Loan that is a MERS Mortgage Loan, the
                  original Mortgage, noting thereon 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 a copy of the
                  Mortgage certified by the public recording office in which
                  such Mortgage has been recorded];

                                     H-1
<PAGE>

        (iii)     in the case of each Mortgage Loan that is not a MERS
                  Mortgage Loan, a duly executed assignment of the Mortgage to
                  "The Bank of New York, as trustee under the Pooling and
                  Servicing Agreement dated as of July 1, 2005, without
                  recourse", or, in the case of each Mortgage Loan with
                  respect to property located in the State of California that
                  is not a MERS Mortgage Loan, a duly executed assignment of
                  the Mortgage in blank (each such assignment, when duly and
                  validly completed, to be in recordable form and sufficient
                  to effect the assignment of and transfer to the assignee
                  thereof, under the Mortgage to which such assignment
                  relates);

        (iv)      the original recorded assignment or assignments of the
                  Mortgage together with all interim recorded assignments of
                  such Mortgage [(noting the presence of a MIN in the case of
                  each Mortgage Loan that is a MERS Mortgage Loan)];

        (v)       the original or copies of each assumption, modification,
                  written assurance or substitution agreement, if any, with
                  evidence of recording thereon if recordation thereof is
                  permissible under applicable law; and

        (vi)      the original or duplicate original lender's title policy or
                  a printout of the electronic equivalent and all riders
                  thereto or, in the event such original title policy has not
                  been received from the insurer, any one of an original title
                  binder, an original preliminary title report or an original
                  title commitment, or a copy thereof certified by the title
                  company, with the original policy of title insurance to be
                  delivered within one year of the Closing Date.

         In the event that in connection with any Mortgage Loan that is not a
MERS Mortgage Loan Countrywide cannot deliver the original recorded Mortgage
or all interim recorded assignments of the Mortgage satisfying the
requirements of clause (ii), (iii) or (iv), as applicable, the Trustee has
received, in lieu thereof, a true and complete copy of such Mortgage and/or
such assignment or assignments of the Mortgage, as applicable, each certified
by Countrywide, the applicable title company, escrow agent or attorney, or the
originator of such Mortgage Loan, as the case may be, to be a true and
complete copy of the original Mortgage or assignment of Mortgage submitted for
recording.

         Based on its review and examination and only as to the foregoing
documents, (i) such documents appear regular on their face and related to such
Mortgage Loan, and (ii) the information set forth in items (i), (iv), (v),
(vi), (viii), (xi) and (xiv) of the definition of the "Mortgage Loan Schedule"
in Article I of the Pooling and Servicing Agreement accurately reflects
information set forth in the Mortgage File.

         The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
above-referenced Pooling and Servicing Agreement. The Trustee makes no
representations as to: (i) the validity, legality, sufficiency, enforceability
or genuineness of any of the documents contained in each Mortgage File of any
of the Mortgage Loans identified on the [Mortgage Loan Schedule][Loan Number

                                     H-2
<PAGE>

and Borrower Identification Mortgage Loan Schedule] or (ii) the
collectibility, insurability, effectiveness or suitability of any such
Mortgage Loan.

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.

                                                THE BANK OF NEW YORK,
                                                 as Trustee

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

                                     H-3
<PAGE>

                                   EXHIBIT I

                              TRANSFER AFFIDAVIT

                                  CWMBS, Inc.
                      Mortgage Pass-Through Certificates
                                 Series 200_-_

STATE OF                )
                        ) ss.:
COUNTY OF               )

         The undersigned, being first duly sworn, deposes and says as follows:

         1. The undersigned is an officer of ________, the proposed Transferee
of an Ownership Interest in a Class A-R Certificate (the "Certificate") issued
pursuant to the Pooling and Servicing Agreement, (the "Agreement"), relating
to the above-referenced Series, by and among CWMBS, Inc., as depositor (the
"Depositor"), EMC Mortgage Corporation, as seller, Countrywide Home Loans
Servicing LP, as master servicer and The Bank of New York, as Trustee.
Capitalized terms used, but not defined herein or in Exhibit 1 hereto, shall
have the meanings ascribed to such terms in the Agreement. The Transferee has
authorized the undersigned to make this affidavit on behalf of the Transferee.

         2. The Transferee is, as of the date hereof, and will be, as of the
date of the Transfer, a Permitted Transferee. The Transferee is acquiring its
Ownership Interest in the Certificate for its own account or as the nominee,
trustee or agent of another Person, in which case the Transferee has attached
hereto an affidavit from such Person in substantially the same form as this
affidavit. The Transferee has no knowledge that any such affidavit is false.

         3. The Transferee has been advised of, and understands that (i) a tax
will be imposed on Transfers of the Certificate to Persons that are not
Permitted Transferees; (ii) such tax will be imposed on the transferor, or, if
such Transfer is through an agent (which includes a broker, nominee or
middleman) for a Person that is not a Permitted Transferee, on the agent; and
(iii) the Person otherwise liable for the tax shall be relieved of liability
for the tax if the subsequent Transferee furnished to such Person an affidavit
that such subsequent Transferee is a Permitted Transferee and, at the time of
Transfer, such Person does not have actual knowledge that the affidavit is
false.

         4. The Transferee has been advised of, and understands that a tax
will be imposed on a "pass-through entity" holding the Certificate if at any
time during the taxable year of the pass-through entity a Person that is not a
Permitted Transferee is the record holder of an interest in such entity. The
Transferee understands that such tax will not be imposed for any period with
respect to which the record holder furnishes to the pass-through entity an
affidavit that such record holder is a Permitted Transferee and the
pass-through entity does not have actual

                                     I-1
<PAGE>

knowledge that such affidavit is false. (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 and, except as may be provided in Treasury Regulations,
persons holding interests in pass-through entities as a nominee for another
Person.)

         5. The Transferee has reviewed the provisions of Section 5.02(c) of
the Agreement (attached hereto as Exhibit 2 and incorporated herein by
reference) and understands the legal consequences of the acquisition of an
Ownership Interest in the Certificate including, without limitation, the
restrictions on subsequent Transfers and the provisions regarding voiding the
Transfer and mandatory sales. The Transferee expressly agrees to be bound by
and to abide by the provisions of Section 5.02(c) of the Agreement and the
restrictions noted on the face of the Certificate. The Transferee understands
and agrees that any breach of any of the representations included herein shall
render the Transfer to the Transferee contemplated hereby null and void.

         6. The Transferee agrees to require a Transfer Affidavit from any
Person to whom the Transferee attempts to Transfer its Ownership Interest in
the Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as Exhibit J to the Agreement (a "Transferor Certificate") to
the effect that such Transferee has no actual knowledge that the Person to
which the Transfer is to be made is not a Permitted Transferee.

         7. The Transferee does not have the intention to impede the
assessment or collection of any tax legally required to be paid with respect
to the Certificate.

         8. The Transferee's taxpayer identification number is_______.

         9. The Transferee is a U.S. Person as defined in Code Section
7701(a)(30).

         10. The Transferee is aware that the Certificate may be a
"noneconomic residual interest" within the meaning of proposed Treasury
regulations promulgated pursuant to the Code and that the transferor of a
noneconomic residual interest will remain liable 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.

         11. The Transferee anticipates that it will, so long as it holders
the Class A-R Certificates, have sufficient assets to pay any taxes owed by
the holder of such Class A-R Certificates, and hereby represents to and for
the benefit of the person from whom it acquired the Class A-R Certificates
that the Transferee intends to pay taxes associated with holding such Class
A-R Certificates as they become due, fully understanding that it may incur tax
liabilities in excess of any cash flows generated by the Class A-R
Certificates. The Transferee has provided financial statements or other
financial information requested by the Transferor in connection with the
transfer of the Class A-R Certificates to permit the Transferor to assess the
financial capability of

                                     I-2
<PAGE>

the Transferee to pay such taxes. The Transferee is not an employee benefit
plan that is subject to ERISA or a plan that is subject to Section 4975 of the
Code, and the Transferee is not acting on behalf of such a plan.

         12. Either (i) the Transferee is not an employee benefit plan subject
to Section 406 of ERISA or Section 4975 of the Code, nor a person acting on
behalf of any such plan or using the assets of such plan to effect such
acquisition, or, (ii) the source of funds for the purchase of such Class A-R
Certificate is an "insurance company general account" within the meaning of
Prohibited Transaction Class Exemption 95-60 (PTCE 95-60"), 60 Fed. Reg. 35925
(July 12, 1995), and the terms and conditions of Sections I and III of PTCE
95-60 are applicable to the acquisition and holding of such Class A-R
Certificate.

                                     * * *

                                     I-3
<PAGE>

         IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by
its duly authorized officer and its corporate seal to be hereunto affixed,
duly attested, this ___ day of _______________, 20__.

                                             _______________________________
                                             PRINT NAME OF TRANSFEREE

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

[Corporate Seal]

ATTEST:

_______________________________
[Assistant] Secretary

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

         Subscribed and sworn before me this       day of          , 20  .
                                             -----        ---------    --

                                        _____________________________
                                        NOTARY PUBLIC

                                        My Commission expires the
                                        ___ day of __________, 20__

                                     I-4
<PAGE>

                                                                  EXHIBIT 1
                                                                  to EXHIBIT I

                              Certain Definitions

         "Ownership Interest": As to any Certificate, any ownership 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.

         "Permitted Transferee": Any Person other than (i) the United States,
any State or political subdivision thereof, or any agency or instrumentality
of any of the foregoing, (ii) a foreign government, International Organization
or any agency or instrumentality of either of the foregoing, (iii) an
organization (except certain farmers' cooperatives described in Code Section
521) which is exempt from tax imposed by Chapter 1 of the Code (including the
tax imposed by Code Section 511 on unrelated business taxable income) on any
excess inclusions (as defined in Code Section 860E(c)(1)) with respect to any
Class A-R Certificate, (iv) rural electric and telephone cooperatives
described in Code Section 1381(a)(2)(c), (v) a Person that is not a citizen or
resident of the United States, a corporation, partnership, or other entity
created or organized in or under the laws of the United States or any
political subdivision thereof, an estate whose income from sources without the
United States is includible in gross income for United States federal income
tax purposes regardless of its connection with the conduct of a trade or
business within the United States, or a trust if a court within the United
States is able to exercise primary supervision over the administration of the
trust and one or more United States persons have the authority to control all
substantial decisions of the trust, (v) an "electing large partnership" within
the meaning of Section 775 of the Code, and (vii) any other Person so
designated by the Trustee based upon an Opinion of Counsel that the Transfer
of an Ownership Interest in a Class A-R Certificate to such Person may cause
the Trust Fund to fail to qualify as a REMIC at any time that certain
Certificates are Outstanding. The terms "United States," "State" and
"International Organization" shall have the meanings set forth in Code Section
7701 or successor provisions. A corporation will not be treated as an
instrumentality of the United States or of any State or political subdivision
thereof if all of its activities are subject to tax, and, with the exception
of the FHLMC, a majority of its board of directors is not selected by such
governmental unit.

         "Person": Any individual, corporation, partnership, joint venture,
bank, joint stock company, trust (including any beneficiary thereof),
unincorporated organization or government or any agency or political
subdivision thereof.

         "Transfer": Any direct or indirect transfer or sale of any Ownership
Interest in a Certificate, including the acquisition of a Certificate by the
Depositor.

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

                                     I-5
<PAGE>
                                                                  EXHIBIT 2
                                                                  to EXHIBIT I

                       Section 5.02(c) of the Agreement

         (c) Each Person who has or who acquires any Ownership Interest in a
Class A-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
the rights of each Person acquiring any Ownership Interest in a Class A-R
Certificate are expressly subject to the following provisions:

         (i) Each Person holding or acquiring any Ownership Interest in a
     Class A-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.

        (ii) Except in connection with (i) the registration of the Tax
     Matters Person Certificate in the name of the Trustee or (ii) any
     registration in the name of, or transfer of a Residual Certificate to, an
     affiliate of the Depositor (either directly or through a nominee) on or
     about the Closing Date, no Ownership Interest in a Residual Certificate
     may be registered on the Closing Date or thereafter transferred, and the
     Trustee shall not register the Transfer of any Residual Certificate
     unless, the Trustee shall have been furnished with an affidavit (a
     "Transfer Affidavit") of the initial owner or the proposed transferee in
     the form attached to this Agreement as Exhibit I.

        (iii) Each Person holding or acquiring any Ownership Interest in a
     Class A-R Certificate shall agree (A) to obtain a Transfer Affidavit from
     any other Person to whom such Person attempts to Transfer its Ownership
     Interest in a Class A-R Certificate, (B) to obtain a Transfer Affidavit
     from any Person for whom such Person is acting as nominee, trustee or
     agent in connection with any Transfer of a Class A-R Certificate and (C)
     not to Transfer its Ownership Interest in a Class A-R Certificate or to
     cause the Transfer of an Ownership Interest in a Class A-R Certificate to
     any other Person if it has actual knowledge that such Person is not a
     Permitted Transferee.

          (iv) Any attempted or purported Transfer of any Ownership Interest
     in a Class A-R Certificate in violation of the provisions of this Section
     5.02(c) shall be absolutely null and void and shall vest no rights in the
     purported Transferee. If any purported transferee shall become a Holder
     of a Class A-R Certificate in violation of the provisions of this Section
     5.02(c), then the last preceding Permitted Transferee shall be restored
     to all rights as Holder thereof retroactive to the date of registration
     of Transfer of such Class A-R Certificate. The Trustee shall be under no
     liability to any Person for any registration of Transfer of a Class A-R
     Certificate that is in fact not permitted by Section 5.02(b) and this
     Section 5.02(c) or for making any payments due on such Certificate to the
     Holder thereof or taking any other action with respect to such Holder
     under the provisions of this Agreement so long as the Transfer was
     registered after receipt of the related Transfer

                                     I-6
<PAGE>

     Affidavit, Transferor Certificate and either the Rule 144A Letter or
     the Investment Letter. The Trustee shall be entitled but not obligated to
     recover from any Holder of a Class A-R Certificate that was in fact not a
     Permitted Transferee at the time it became a Holder or, at such
     subsequent time as it became other than a Permitted Transferee, all
     payments made on such Class A-R Certificate at and after either such
     time. Any such payments so recovered by the Trustee shall be paid and
     delivered by the Trustee to the last preceding Permitted Transferee of
     such Certificate.

          (v) The Depositor shall use its best efforts to make available, upon
     receipt of written request from the Trustee, all information necessary to
     compute any tax imposed under Section 860E(e) of the Code as a result of
     a Transfer of an Ownership Interest in a Class A-R Certificate to any
     Holder who is not a Permitted Transferee.

                                     I-7
<PAGE>

                                  EXHIBIT J-1

                        FORM OF TRANSFEROR CERTIFICATE
                                  (RESIDUAL)

                                                       ---------------------
                                                       Date

CWMBS, Inc.
4500 Park Granada
Calabasas, California  91302
Attention:  David A. Spector

The Bank of New York
101 Barclay Street - 8W
New York, New York 10286

Attention:   Mortgage-Backed Securities Group
             Series 200_-_
             Re:CWMBS, Inc. Mortgage Pass-Through Certificates,
             Series 200_-_, Class
             -----------------------------------

Ladies and Gentlemen:

                  In connection with our disposition of the above Certificates
we certify that to the extent we are disposing of a Class A-R Certificate, we
have no knowledge the Transferee is not a Permitted Transferee.

                                              Very truly yours,

                                              --------------------------------
                                              Print Name of Transferor

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

                                    J-1-1
<PAGE>

                                  EXHIBIT J-2

                        FORM OF TRANSFEROR CERTIFICATE
                                   (PRIVATE)

                                                       ---------------------
                                                       Date

CWMBS, Inc.
4500 Park Granada
Calabasas, California  91302
Attention:  David A. Spector

The Bank of New York
101 Barclay Street - 8W
New York, New York 10286

Attention:   Mortgage-Backed Securities Group
             Series 200_-_
             Re:CWMBS, Inc. Mortgage Pass-Through Certificates,
             Series 200_-_, Class
             -------------------------------------

Ladies and Gentlemen:

                  In connection with our disposition of the above Certificates
we certify that (a) we understand that the Certificates have not been
registered under the Securities Act of 1933, as amended (the "Act"), and are
being disposed by us in a transaction that is exempt from the registration
requirements of the Act, (b) we have not offered or sold any Certificates to,
or solicited offers to buy any Certificates from, any person, or otherwise
approached or negotiated with any person with respect thereto, in a manner
that would be deemed, or taken any other action which would result in, a
violation of Section 5 of the Act.

                                             Very truly yours,

                                             ---------------------------
                                             Print Name of Transferor

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

                                    J-2-1
<PAGE>

                                   EXHIBIT K

                   FORM OF INVESTMENT LETTER (NON-RULE 144A)

                                                        -----------------------
                                                        Date

CWMBS, Inc.
4500 Park Granada
Calabasas, California  91302
Attention:  David A. Spector

The Bank of New York
101 Barclay Street - 8W
New York, New York 10286

Attention:   Mortgage-Backed Securities Group
             Series 200_-_

         Re:    CWMBS, Inc. Mortgage Pass-Through Certificates,
                Series 200_-_, Class
                ---------------------------------------

Ladies and Gentlemen:

                  In connection with our acquisition of the above Certificates
we certify that (a) we understand that the Certificates are not being
registered under the Securities Act of 1933, as amended (the "Act"), or any
state securities laws and are being transferred to us in a transaction that is
exempt from the registration requirements of the Act and any such laws, (b) we
are an "accredited investor," as defined in Regulation D under the Act, and
have such knowledge and experience in financial and business matters that we
are capable of evaluating the merits and risks of investments in the
Certificates, (c) we have had the opportunity to ask questions of and receive
answers from the Depositor concerning the purchase of the Certificates and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Certificates, (d) either (i) we are not an employee
benefit plan that is subject to the Employee Retirement Income Security Act of
1974, as amended, or a plan or arrangement that is subject to Section 4975 of
the Internal Revenue Code of 1986, as amended, nor are we acting on behalf of
any such plan or arrangement, nor are we using the assets of any such plan or
arrangement to effect such acquisition or (ii) if the Certificates have been
the subject of an ERISA-Qualifying Underwriting and we are an insurance
company, we are an insurance company which is purchasing such Certificates
with funds contained in an "insurance company general account" (as such term
is defined in Section V(e) of Prohibited Transaction Class Exemption 95-60
("PTCE 95-60")) and the purchase and holding of such Certificates are covered
under Sections I

                                     K-1
<PAGE>

and III of PTCE 95-60, (e) we are acquiring the Certificates for investment
for our own account and not with a view to any distribution of such
Certificates (but without prejudice to our right at all times to sell or
otherwise dispose of the Certificates in accordance with clause (g) below),
(f) we have not offered or sold any Certificates to, or solicited offers to
buy any Certificates from, any person, or otherwise approached or negotiated
with any person with respect thereto, or taken any other action which would
result in a violation of Section 5 of the Act, and (g) we will not sell,
transfer or otherwise dispose of any Certificates unless (1) such sale,
transfer or other disposition is made pursuant to an effective registration
statement under the Act or is exempt from such registration requirements, and
if requested, we will at our expense provide an opinion of counsel
satisfactory to the addressees of this Certificate that such sale, transfer or
other disposition may be made pursuant to an exemption from the Act, (2) the
purchaser or transferee of such Certificate has executed and delivered to you
a certificate to substantially the same effect as this certificate, and (3)
the purchaser or transferee has otherwise complied with any conditions for
transfer set forth in the Pooling and Servicing Agreement.

                                                  Very truly yours,

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

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

                                     K-2
<PAGE>

                                   EXHIBIT L

                           FORM OF RULE 144A LETTER

                                                ----------------------------
                                                Date

CWMBS, Inc.
4500 Park Granada
Calabasas, California  91302
Attention:  David A. Spector

The Bank of New York
101 Barclay Street - 8W
New York, New York 10286

Attention:     Mortgage-Backed Securities Group
               Series 200_-_

         Re:     CWMBS, Inc. Mortgage Pass-Through Certificates,
                 Series 200_-_, Class
                 -----------------------------------

Ladies and Gentlemen:

                  In connection with our acquisition of the above Certificates
we certify that (a) we understand that the Certificates are not being
registered under the Securities Act of 1933, as amended (the "Act"), or any
state securities laws and are being transferred to us in a transaction that is
exempt from the registration requirements of the Act and any such laws, (b) we
have such knowledge and experience in financial and business matters that we
are capable of evaluating the merits and risks of investments in the
Certificates, (c) we have had the opportunity to ask questions of and receive
answers from the Depositor concerning the purchase of the Certificates and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Certificates, (d) either (i) we are not an employee
benefit plan that is subject to the Employee Retirement Income Security Act of
1974, as amended, or a plan or arrangement that is subject to Section 4975 of
the Internal Revenue Code of 1986, as amended, nor are we acting on behalf of
any such plan or arrangement, nor are we using the assets of any such plan or
arrangement to effect such acquisition or (ii) if the Certificates have been
the subject of an ERISA-Qualifying Underwriting and we are an insurance
company, we are an insurance company which is purchasing such Certificates
with funds contained in an "insurance company general account" (as such term
is defined in Section V(e) of Prohibited Transaction Class Exemption 95-60
("PTCE 95-60")) and the purchase and holding of such Certificates are covered
under Sections I and III of PTCE 95-60, (e) we have not, nor has anyone acting
on our

                                     L-1
<PAGE>

behalf offered, transferred, pledged, sold or otherwise disposed of the
Certificates, any interest in the Certificates or any other similar security
to, or solicited any offer to buy or accept a transfer, pledge or other
disposition of the Certificates, any interest in the Certificates or any other
similar security from, or otherwise approached or negotiated with respect to
the Certificates, any interest in the Certificates or any other similar
security with, any person in any manner, or made any general solicitation by
means of general advertising or in any other manner, or taken any other
action, that would constitute a distribution of the Certificates under the
Securities Act or that would render the disposition of the Certificates a
violation of Section 5 of the Securities Act or require registration pursuant
thereto, nor will act, nor has authorized or will authorize any person to act,
in such manner with respect to the Certificates, (f) we are a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act and have completed either of the forms of certification to that effect
attached hereto as Annex 1 or Annex 2. We are aware that the sale to us is
being made in reliance on Rule 144A. We are acquiring the Certificates for our
own account or for resale pursuant to Rule 144A and further, understand that
such Certificates may be resold, pledged or transferred only (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 Securities Act.

                                              Very truly yours,

                                              ______________________________
                                              Print Name of Transferee

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

                                     L-2
<PAGE>

                                                          ANNEX 1 TO EXHIBIT L

           QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

         [For Transferees Other Than Registered Investment Companies]

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

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

                  2. In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned
and/or invested on a discretionary basis either at least $100,000 in
securities or, if Buyer is a dealer, Buyer must own and/or invest on a
discretionary basis at least $10,000,000 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.

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

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

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

                                     L-3
<PAGE>

                  ___      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, territory or the District of
                           Columbia.

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

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

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

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

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

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

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

                                     L-4
<PAGE>

another enterprise and the Buyer is not itself a reporting company under the
Securities Exchange Act of 1934, as amended.

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

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

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

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

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

                                     L-5
<PAGE>

                                                         ANNEX 2 TO EXHIBIT L

           QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [For Transferees That are Registered Investment Companies]

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

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

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

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

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

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

                                     L-6
<PAGE>

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

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

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

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

                                        By: ___________________________________
                                        Name:
                                        Title:

                                        IF AN ADVISER:

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

                                        Date: _________________________________

                                     L-7
<PAGE>

                                   EXHIBIT M

                              REQUEST FOR RELEASE
                                 (for Trustee)

CWMBS, Inc.
Mortgage Pass-Through Certificates
Series 200_-_

Loan Information
----------------

         Name of Mortgagor:               ___________________________________

         Servicer Loan No.:               ___________________________________

Trustee
-------

         Name:                            ___________________________________

         Address:                         ___________________________________

                                          ___________________________________

                                          ___________________________________

                                          ___________________________________

         Trustee
         Mortgage File No.:               ___________________________________

         The undersigned Master Servicer hereby acknowledges that it has
received from The Bank of New York, as Trustee for the Holders of Mortgage
Pass-Through Certificates, of the above-referenced Series, the documents
referred to below (the "Documents"). All capitalized terms not otherwise
defined in this Request for Release shall have the meanings given them in the
Pooling and Servicing Agreement (the "Pooling and Servicing Agreement")
relating to the above-referenced Series among the Trustee, EMC Mortgage
Corporation, as Seller, Countrywide Home Loans Servicing LP, as Master
Servicer and CWMBS, Inc., as Depositor.

(  )     Mortgage Note dated _______________, 20__, in the original
         principal sum of $___________, made by ____________________________,
         payable to, or endorsed to the order of, the Trustee.

(  )     Mortgage recorded on __________________ as instrument no.
         ______________________ in the County Recorder's Office of the County
         of _________________________, State of _______________________ in
         book/reel/docket _________________________ of official records at
         page/image _______________________________.

                                     M-1
<PAGE>

(  )     Deed of Trust recorded on ______________________ as instrument no.
         ___________ in the County Recorder's Office of the County of
         __________________________, State of _____________________ in
         book/reel/docket _________________________ of official records at
         page/image ____________________________.

(  )     Assignment of Mortgage or Deed of Trust to the Trustee, recorded on
         _____________________ as instrument no. __________________ in the
         County Recorder's Office of the County of _____________________,
         State of ___________________ in book/reel/docket ________________ of
         official records at page/image ______________________.

(  )     Other documents, including any amendments, assignments or other
         assumptions of the Mortgage Note or Mortgage.

         (   )________________________________________________________________

         (   )________________________________________________________________

         (   )________________________________________________________________

         (   )________________________________________________________________

         The undersigned Master Servicer hereby acknowledges and agrees as
follows:

               (1) The Master Servicer shall hold and retain possession of the
         Documents in trust for the benefit of the Trustee, solely for the
         purposes provided in the Agreement.

               (2) The Master Servicer shall not cause or knowingly permit the
         Documents to become subject to, or encumbered by, any claim, liens,
         security interest, charges, writs of attachment or other impositions
         nor shall the Servicer assert or seek to assert any claims or rights
         of setoff to or against the Documents or any proceeds thereof.

               (3) The Master Servicer shall return each and every Document
         previously requested from the Mortgage File to the Trustee when the
         need therefor no longer exists, unless the Mortgage Loan relating to
         the Documents has been liquidated and the proceeds thereof have been
         remitted to the Certificate Account and except as expressly provided
         in the Agreement.

               (4) The Documents and any proceeds thereof, including any
         proceeds of proceeds, coming into the possession or control of the
         Master Servicer shall at all times be earmarked for the account of
         the Trustee, and the Master Servicer shall keep the Documents and
         any proceeds separate and distinct from all other property in the
         Master Servicer's possession, custody or control.

                                     M-2
<PAGE>

                                                   COUNTRYWIDE HOME LOANS
                                                   SERVICING LP

                                                   By
                                                      -------------------------

                                                   Its
                                                      -------------------------

Date:_________________, 20__

                                     M-3
<PAGE>

                                   EXHIBIT N

                       REQUEST FOR RELEASE OF DOCUMENTS

To:     The Bank of New York                           Attn:  Mortgage Custody
                                                       Services

        Re:  The Pooling & Servicing Agreement dated July 1, 2005, among EMC
             Mortgage Corporation, as Seller, Countrywide Home Loans Servicing
             LP, as Master Servicer, CWMBS, Inc. and The Bank of New York,
             as Trustee
             -------------------------------------------------------------

Ladies and Gentlemen:

         In connection with the administration of the Mortgage Loans held by
you as Trustee for CWMBS, Inc., we request the release of the Mortgage Loan
File for the Mortgage Loan(s) described below, for the reason indicated.

FT Account #:                                      Pool #:

Mortgagor's Name, Address and Zip Code:

Mortgage Loan Number:

Reason for Requesting Documents (check one)

         1.       Mortgage Loan paid in full (Countrywide Home Loans, Inc.
                  hereby certifies that all amounts have been received).

         2.       Mortgage Loan Liquidated (Countrywide Home Loans, Inc.
                  hereby certifies that all proceeds of foreclosure,
                  insurance, or other liquidation have been finally received).

         3.       Mortgage Loan in Foreclosure.

         4.       Other (explain):

         If item 1 or 2 above is checked, and if all or part of the Mortgage
File was previously released to us, please release to us our previous receipt
on file with you, as well as any additional documents in your possession
relating to the above-specified Mortgage Loan. If item 3 or 4 is checked, upon
return of all of the above documents to you as Trustee, please acknowledge
your receipt by signing in the space indicated below, and returning this form.

                                     N-1
<PAGE>

COUNTRYWIDE HOME LOANS, INC.
4500 Park Granada
Calabasas, California  91302

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

TRUSTEE CONSENT TO RELEASE AND
ACKNOWLEDGEMENT OF RECEIPT

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

                                     N-2
<PAGE>

                                   EXHIBIT O
                 [FORM OF FINANCIAL GUARANTY INSURANCE POLICY]

                                  [RESERVED]

                                     O-1
<PAGE>

                                   EXHIBIT P

                                  [RESERVED]

                                     P-1
<PAGE>

                                   EXHIBIT Q

                                  [RESERVED]

                                     Q-1Exhibit 10.1

==============================================================================

                                LOAN AGREEMENT

                          Dated as of August 26, 2005

                                     Among

                            RA 492 RIVER ROAD LLC,
                          RA 100 EXECUTIVE DRIVE LLC,
                          RA 200 EXECUTIVE DRIVE LLC,
                           RA 35 PINELAWN ROAD LLC,
                          RA 80 GRASSLANDS ROAD LLC,
                          RA 100 GRASSLANDS ROAD LLC,
                           RA 150 MOTOR PARKWAY LLC,
                         RA 660 WHITE PLAINS ROAD LLC

                                      and

                             RA 225 HIGH RIDGE LLC
                          collectively, as Borrowers

                                      and

                       UBS REAL ESTATE INVESTMENTS INC.,
                                   as Lender

                      492 River Road, Nutley, New Jersey
                 100 Executive Drive, West Orange, New Jersey
                 200 Executive Drive, West Orange, New Jersey
                     35 Pinelawn Road, Melville, New York
                    80 Grasslands Road, Elmsford, New York
                    100 Grasslands Road, Elmsford, New York
               150 Vanderbilt Motor Parkway, Hauppauge, New York
                  660 White Plains Road, Tarrytown, New York
                  225 High Ridge Road, Stamford, Connecticut

==============================================================================

<PAGE>

                                LOAN AGREEMENT

      THIS LOAN AGREEMENT, dated as of August 26, 2005 (as amended, restated,
replaced, supplemented or otherwise modified from time to time, this
"Agreement"), among UBS REAL ESTATE INVESTMENTS INC., a Delaware corporation,
having an address at 1285 Avenue of the Americas, 11th Floor, New York, New
York 10019 (together with its successors and assigns, collectively, "Lender"),
and RA 492 RIVER ROAD LLC ("492 River Borrower"), RA 100 EXECUTIVE DRIVE LLC
("100 Executive Borrower"), RA 200 EXECUTIVE DRIVE LLC ("200 Executive
Borrower"), RA 35 PINELAWN ROAD LLC ("35 Pinelawn Borrower"), RA 80 GRASSLANDS
ROAD LLC ("80 Grasslands Borrower"), RA 100 GRASSLANDS ROAD LLC ("100
Grasslands Borrower"), RA 150 MOTOR PARKWAY LLC ("150 Vanderbilt Borrower"),
RA 660 WHITE PLAINS ROAD LLC ("660 White Plains Borrower") and RA 225 HIGH
RIDGE LLC ("225 High Ridge Borrower"; each of 492 River Borrower, 100
Executive Borrower, 200 Executive Borrower, 35 Pinelawn Borrower, 80
Grasslands Borrower, 100 Grasslands Borrower, 150 Vanderbilt Borrower, 660
White Plains Borrower and 225 High Ridge Borrower referred to herein
individually as a "Borrower" and collectively as "Borrowers"), each a Delaware
limited liability company and each having an address c/o Reckson Associates
Realty Corp., 225 Broadhollow Road, Melville, New York 11747-0983.

      All capitalized terms used herein shall have the respective meanings set
forth in Article I hereof.

                             W I T N E S S E T H :

      WHEREAS, Borrowers desire to obtain the Loan from Lender; and

      WHEREAS, Lender has advised Borrowers that, subject to the terms of this
Agreement and the documents to be executed in connection herewith, and based
upon the representations, warranties, covenants and undertakings of Borrowers
herein and therein contained, Lender is willing to make the Loan to Borrowers,
on the terms and conditions set forth herein and therein;

      NOW, THEREFORE, in consideration of the covenants set forth in this
Agreement, and other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, Lender and Borrowers hereby agree as
follows:

                                   ARTICLE 1
                    DEFINITIONS; PRINCIPLES OF CONSTRUCTION
                    ---------------------------------------

      1.1   Specific Definitions.

      For all purposes of this Agreement, except as otherwise expressly
provided:

      "660 White Plains Master Lease" shall mean that certain Master Lease
(660 White Plains) dated as of the date hereof, reasonably acceptable to
Lender, made by and between the 660 White Plains Borrower and ROP in respect
of certain underwritten rent and expense

<PAGE>

recoveries for 24,158 square feet of space at the property owned by 660 White
Plains Borrower, as more particularly set forth in such master lease.

      "Acceptable Lease Guarantor" shall mean ROP or, after an Australian
Joint Venture Closing, the Australian Joint Venture Partner, provided such
Person has a Tangible Net Worth equal to or greater than $200,000,000.00 and a
debt-to-equity ratio of no greater than 65%.

      "Accounts" shall have the meaning set forth in Section 6.1.

      "Acquired Property Statements" shall have the meaning set forth in
Section 9.1(c)(i).

      "Act" shall have the meaning set forth in Section 3.1.24(s).

      "Adjusted Release Amount" shall mean, with respect to any Non-Core
Property, one hundred ten percent (110%) of applicable Allocated Loan Amount.

      "ADM Lease" shall mean that certain Agreement of Lease dated as of
September 22, 1997 made by and between ROP and ADM Cocoa, a Division of
Archer-Daniels Midland Company, as amended by that certain Assignment and
First Amendment of Lease dated as of September 11, 2000 made by and between
ADM Cocoa, a Division of the Archer-Daniels Midland Company and ADM Rice, a
Division of the Archer-Daniels Midland Company, as further amended by that
certain Second Amendment dated as of December 18, 2003 made by and between ROP
and ADM Rice, a Division of the Archer-Daniels Midland Company, as further
amended by that certain Third Amendment to the Lease dated as of May 3, 2004
by and between ROP, and ADM Rice, a Division of the Archer-Daniels Midland
Company, for the lease of 7,417 square feet on the fourth floor of the
building located at 660 White Plains Road, Tarrytown, New York.

      "ADM Springing Lease Guaranty" shall mean that certain Lease Guaranty
(ADM-660 White Plains), dated as of the date hereof, made by an Acceptable
Lease Guarantor in favor of Lender in respect of all rent and expense
recoveries due under the ADM Lease from and after any time the tenant under
the ADM Lease exercises any right of termination pursuant to the ADM Lease.

      "Affiliate" shall mean, as to any Person, any other Person that (i) owns
directly or indirectly forty-nine percent (49%) or more of all equity
interests in such Person, and/or (ii) is in Control of, is Controlled by or is
under common ownership or Control with such Person, and/or (iii) is a director
or officer of such Person or of an Affiliate of such Person. As used in this
definition, the term "Control" means the possession, directly or indirectly,
of the power to direct or cause the direction of the management, policies or
activities of such Person, whether through ownership of voting securities, by
contract or otherwise.

      "Ajilon Lease" means that certain Agreement of Lease dated as of June
22, 2005 by and between ROP and Ajilon Professional Staffing LLC for the lease
of 5,468 square feet of the building located at 150 Motor Parkway, Hauppauge,
New York.

      "Ajilon Springing Lease Guaranty" shall mean that certain Lease Guaranty
(Ajilon-150 Motor), dated as of the date hereof, made by an Acceptable Lease
Guarantor in favor of

                                       2
<PAGE>

Lender in respect of all rent and expense recoveries due under the Ajilon
Lease from and after any time the tenant under the Ajilon Lease exercises any
right of termination pursuant to the Ajilon Lease.

      "Allocated Loan Amount" shall mean, with respect to each Property, that
amount set forth for such Property on Exhibit B hereto.

      "ALTA" shall mean American Land Title Association, or any successor
thereto.

      "Alteration Threshold" shall mean $4,000,000.00 per Property.

      "Alternate Joint Venture Closing" shall mean the consummation of (a) the
formation of a joint venture between RA (or one of its controlled Affiliates)
and the Alternate Joint Venture Partner, and (b) the Transfer of 100% of the
ownership interests in each of Borrowers to the Alternate Joint Venture
Partner (or a subsidiary thereof), subject to the satisfaction of the
conditions to such Transfer set forth in Article 8 hereof.

      "Alternate Joint Venture Partner" shall mean, an institutional party
joint venture partner reasonably acceptable to and approved by Lender.

      "Ampacet Lease" shall mean that certain Agreement of Lease dated as of
August 2, 1989 by and between T.C.C.-R.M.C. Associates, and Ampacet
Corporation, as amended by that First Agreement of Lease dated as of November
4, 1999 by and between ROP as successor-in-interest to T.C.C.-R.M.C.
Associates, and Ampacet Corporation, for the lease of 38,908 rentable square
feet on the third floor of the Property located at 660 White Plains Road.

      "Ampacet Springing Lease Guaranty" shall mean that certain Lease
Guaranty (Ampacet-660 White Plains), dated as of the date hereof, made by an
Acceptable Lease Guarantor in favor of Lender in respect of all rent and
expense recoveries due under the Ampacet Lease from and after any time the
tenant under the Ampacet Lease exercises any right of termination pursuant to
the Ampacet Lease.

      "Approved Capital Expenditures" shall mean Capital Expenditures incurred
by any Borrower and approved by Lender, which approval shall not be
unreasonably withheld or delayed.

      "Approved Leasing Expenses" shall mean actual, out-of-pocket expenses
incurred by any Borrower in leasing space at the Property owned by such
Borrower pursuant to Leases entered into in accordance with the Loan
Documents, including brokerage commissions and tenant improvements, which
expenses (i) are (A) specifically approved by Lender in connection with
approving the applicable Lease (to the extent Lender's approval is required
hereunder), (B) incurred in the ordinary course of business and on market
terms and conditions in connection with Leases which do not require Lender's
approval under the Loan Documents, and Lender shall have received and approved
a budget for such tenant improvement costs and a schedule of leasing
commissions payments payable in connection therewith, or (C) otherwise
approved by Lender, which approval shall not be unreasonably withheld or
delayed, and (ii) are substantiated by executed Lease documents and brokerage
agreements.

                                       3
<PAGE>

      "Assignment of Leases" shall mean, collectively, the New York Assignment
of Leases, the New Jersey Assignment of Leases and the Connecticut Assignment
of Leases.

      "Assignment of Management Agreement" shall mean, collectively, those
certain Assignments of Management Agreement and Subordination of Management
Fees, each dated as of the date hereof, among each Borrower, Manager and
Lender, each with respect to a single Property, as each of the same may be
amended, restated, replaced, supplemented or otherwise modified from time to
time.

      "Australian Joint Venture Closing" shall mean the consummation of (a)
the formation of a joint venture between RA (or one of its controlled
Affiliates) and the Australian Joint Venture Partner, and (b) the Transfer of
100% of the ownership interests in each of Borrowers to Australia Sole Member,
subject to the satisfaction of the conditions to such Transfer set forth in
Article 8 hereof, and as contemplated pursuant to that Product Disclosure
Statement dated August 15, 2005 in respect of Reckson New York Property Trust
(ARSN 115 585 709).

      "Australian Joint Venture Partner" shall mean Reckson Australia LPT
Corporation, a Maryland corporation, which is 99.9% owned by the Australian
Trust.

      "Australia Sole Member" shall mean Reckson Australia Operating Company
LLC, a Delaware limited liability company, a subsidiary of the Australian
Joint Venture Partner.

      "Australian Trust" shall mean Reckson New York Property Trust, an
Australian listed property trust.

      "Australian Transfer" or "Australian Transfers" shall have the meaning
set forth in Section 8.2(a)(vii).

      "Award" shall have the meaning set forth in Section 5.3(b).

      "Bankruptcy Code" shall mean Title 11 of the United States Code entitled
"Bankruptcy", as amended from time to time, and any successor statute or
statutes and all rules and regulations from time to time promulgated
thereunder, and any comparable foreign laws relating to bankruptcy, insolvency
or creditors' rights.

      "Blanket Terrorism Policies" shall have the meaning set forth in Section
5.1.1(h).

      "Business Day" shall mean any day other than a Saturday, a Sunday or a
legal holiday on which national banks are not open for general business in (i)
the State of New York, (ii) the state where the corporate trust office of the
Trustee is located, or (iii) the state where the servicing offices of the
Servicer are located.

      "Capital Expenditure Account" shall have the meaning set forth in
Section 6.5.1.

      "Capital Expenditure Funds" shall have the meaning set forth in Section
6.5.1.

                                       4
<PAGE>

      "Capital Expenditures" for any period shall mean amounts expended for
replacements and alterations to the Properties (excluding tenant improvements)
and required to be capitalized according to cash basis method of accounting.

      "Capital Expenditures Work" shall mean any labor performed or materials
installed in connection with any Capital Expenditure.

      "Carveout Guarantor" shall mean ROP or, after an Australian Joint
Venture Closing, the Australian Joint Venture Partner, provided such Person
has a Tangible Net Worth equal to or greater than $100,000,000.00 and a
debt-to-equity ratio of no greater than 65%.

      "Carveout Guaranty" shall mean that certain Guaranty of Recourse
Obligations of even date herewith from Carveout Guarantor for the benefit of
Lender.

      "Cash Management Agreement" shall mean that certain Cash Management
Agreement of even date herewith among Lender, Borrowers, Manager and Deposit
Bank.

      "Casualty" shall have the meaning set forth in Section 5.2(a).

      "Casualty and Condemnation Account" shall have the meaning set forth in
the Cash Management Agreement.

      "Casualty Consultant" shall have the meaning set forth in Section
5.5(a).

      "Casualty Retainage" shall have the meaning set forth in Section 5.5(b).

      "Clearing Account" shall have the meaning set forth in Section 6.1.

      "Clearing Account Agreement" shall mean that certain Clearing Account
Agreement dated the date hereof, made by and among Borrowers, Lender, Manager
and Clearing Bank.

      "Clearing Bank" shall have the meaning set forth in Section 6.1.

      "Closing Date" shall mean the date of the funding of the Loan.

      "Code" shall mean the Internal Revenue Code of 1986, as amended, and as
it may be further amended from time to time, any successor statutes thereto,
and applicable U.S. Department of Treasury regulations issued pursuant thereto
in temporary or final form.

      "Condemnation" shall mean a temporary or permanent taking by any
Governmental Authority as the result or in lieu or in anticipation of the
exercise of the right of condemnation or eminent domain, of all or any part of
any Property, or any interest therein or right accruing thereto, including any
right of access thereto or any change of grade affecting any Property or any
part thereof.

      "Connecticut Assignment of Leases" shall mean that certain first
priority Assignment of Leases and Rents (Connecticut), dated as of the date
hereof, from 225 High Ridge Borrower, as assignor, to Lender, as assignee, as
the same may be amended, restated, replaced,

                                       5
<PAGE>

supplemented or otherwise modified from time to time, delivered in connection
with the Connecticut Property.

      "Connecticut Improvements" shall have the meaning ascribed to the term
"Improvements" as set forth in the granting clauses of the Connecticut
Mortgage.

      "Connecticut Mortgage" shall mean that certain first priority Mortgage,
Assignment of Leases and Rents and Security Agreement (Connecticut), dated the
date hereof, executed and delivered by 225 High Ridge Borrower as security for
the Loan and encumbering the Connecticut Property, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time.

      "Connecticut Property" shall mean, the Property located at 225 High
Ridge Road, as more particularly described in the Connecticut Mortgage.

      "Debt" shall mean the Outstanding Principal Balance together with all
interest accrued and unpaid thereon and all other sums (including the Yield
Maintenance Premium, if applicable) due to Lender in respect of the Loan under
the Note, this Agreement, the Mortgage, the Environmental Indemnity or any
other Loan Document.

      "Debt Service" shall mean, with respect to any particular period of
time, the aggregate amount of principal and interest payments which would be
due and payable under the Note, computed using the Interest Rate and a thirty
(30) year amortization schedule.

      "Debt Service Account" shall have the meaning set forth in the Cash
Management Agreement.

      "Debt Service Coverage Ratio" shall mean, a ratio for the applicable
period in which:

      (a)   the numerator is the Net Cash Flow for such period; and

      (b)   the denominator is the Debt Service.

      "Default" shall mean the occurrence of any event hereunder or under any
other Loan Document which, but for the giving of notice or passage of time, or
both, would be an Event of Default.

      "Default Rate" shall mean, with respect to the Loan, a rate per annum
equal to the lesser of (i) the Maximum Legal Rate or (ii) three percent
(3.00%) above the Interest Rate.

      "Defeasance" shall have the meaning set forth in Section 2.5.1.

      "Defeasance Collateral" shall have the meaning set forth in Section
2.5.1(d)(i).

      "Defeasance Event" shall have the meaning set forth in Section 2.5.1.

      "Defeasance Security Agreement" shall have the meaning set forth in
Section 2.5.1(d)(ii).

                                       6
<PAGE>

      "Defeased Note" shall have the meaning set forth in Section 2.5.1.

      "Deposit Account" shall have the meaning set forth in Section 6.1.

      "Deposit Bank" shall mean Wachovia Bank, National Association and any
successor Eligible Institution thereto.

      "Disclosure Document" shall have the meaning set forth in Section
9.2(a).

      "Disclosure Document Date" shall have the meaning set forth in Section
9.1(c)(iv).

      "Easements" shall have the meaning set forth in Section 3.1.12.

      "Eligible Account" shall mean a separate and identifiable account from
all other funds held by the holding institution that is either (i) an account
or accounts maintained with a federal or state-chartered depository
institution or trust company which complies with the definition of Eligible
Institution or (ii) a segregated trust account or accounts maintained with a
federal or state chartered depository institution or trust company acting in
its fiduciary capacity which, in the case of a state chartered depository
institution or trust company is subject to regulations substantially similar
to 12 C.F.R. ss.9.10(b), having in either case a combined capital and surplus
of at least $50,000,000.00 and subject to supervision or examination by
federal and state authorities. An Eligible Account will not be evidenced by a
certificate of deposit, passbook or other instrument.

      "Eligible Institution" shall mean a depository institution insured by
the Federal Deposit Insurance Corporation the short term unsecured debt
obligations or commercial paper of which are rated at least A-1 by S&P, P-1 by
Moody's, and F-1+ by Fitch in the case of accounts in which funds are held for
thirty (30) days or less or, in the case of Letters of Credit or accounts in
which funds are held for more than thirty (30) days, the long term unsecured
debt obligations of which are rated at least "AA" by Fitch and S&P and "Aa2"
by Moody's.

      "Embargoed Person" shall have the meaning set forth in Section 4.2.15.

      "Environmental Indemnitor" shall mean ROP or, after an Australian Joint
Venture Closing, the Australian Joint Venture Partner, provided such Person
has a Tangible Net Worth equal to or greater than $100,000,000.00 and a
debt-to-equity ratio of no greater than 65%.

      "Environmental Indemnity" shall mean that certain Environmental
Indemnity Agreement dated as of the date hereof executed by Borrowers and
Environmental Indemnitor in connection with the Loan for the benefit of
Lender.

      "Environmental Policy" shall mean that certain Pollution Legal Liability
Select Clean-Up Cost Cap Insurance Policy, Policy Number PLS1446186 issued by
American International Specialty Lines Insurance Company and naming Lender,
its successors and assigns as an additional insured in respect of the Property
owned by the 225 High Ridge Borrower and located at 225 High Ridge Road,
Stamford, Connecticut.

      "Equipment" shall have the meaning set forth in the granting clause of
the Mortgage.

                                       7
<PAGE>

      "ERISA" shall have the meaning set forth in Section 4.2.13.

      "Event of Default" shall have the meaning set forth in Section 10.1.

      "Exchange Act" shall have the meaning set forth in Section 9.2(a).

      "Exchange Act Filing" shall have the meaning set forth in Section
9.1(c)(vi).

      "Exercise Notice" shall have the meaning set forth in Section 12.2(b).

      "Existing Affiliate Contracts" shall mean those certain contracts and
agreements more fully set forth on Schedule IV, attached hereto and made a
part hereof.

      "Financing Notice" shall have the meaning set forth in Section 12.2(a).

      "Fiscal Year" shall mean each twelve month period commencing on January
1 and ending on December 31 during each year of the Term.

      "Fitch" shall mean Fitch, Inc.

      "Full Replacement Cost" shall have the meaning set forth in Section
5.1.1(a)(i).

      "Governmental Authority" shall mean any court, board, agency,
commission, office or authority of any nature whatsoever or any governmental
unit (federal, state, commonwealth, county, district, municipal, city or
otherwise) whether now or hereafter in existence.

      "Government Lists" shall have the meaning set forth in Section
4.1.14(b).

      "Gross Revenue" shall mean all revenue derived from the ownership and
operation of any Property from whatever source, including Rents and any
Insurance Proceeds, but only if and to the extent Lender elects to treat any
such Insurance Proceeds as business or rental interruption Insurance Proceeds
pursuant to Section 5.4 hereof.

      "GSA Lease" shall mean that certain Agreement of Lease dated as of
November 9, 2000 made by and between ROP and the United States of America, as
amended by that certain Supplemental Lease Agreement, Number One, dated as of
August 22, 2001 made by and between ROP and the United States of America, as
further amended by that certain Supplemental Lease Agreement, Number Two,
dated as of November 9, 2001 made by and between ROP and the United States of
America, as further amended by that certain Supplemental Lease Agreement,
Number Three, dated as of April 18, 2002 made by and between ROP and the
United States of America, as further amended by that certain Supplemental
Lease Agreement, Number Four, made by and between ROP and the United States of
America for the lease of a total of 5,087 rentable square feet of the building
located at 660 White Plains Road, Tarrytown, New York.

      "GSA Springing Lease Guaranty" shall mean that certain Lease Guaranty
(GSA-660 White Plains), dated as of the date hereof, made by an Acceptable
Lease Guarantor in favor of Lender in respect of all rent and expense
recoveries due under the GSA Lease from and after any

                                       8
<PAGE>

time the tenant under the GSA Lease exercises any right of termination
pursuant to the GSA Lease.

      "Guaranteed Obligations" shall mean, as of any date of determination,
the aggregate amount of liability that is due or may become due from any
guarantor under any of the Lease Guaranties and/or the Reserve Guaranty.

      "Guarantor" shall mean, as applicable, any or all of the Acceptable
Lease Guarantor, Carveout Guarantor and/or Reserve Guarantor.

      "Hockman Lewis Lease" means that certain Agreement of Lease dated as of
May 28, 2003 made by and between ROP and Hockman-Lewis, for the lease of 4,333
square feet in the building located at 200 Executive Drive, West Orange, New
Jersey.

      "Hockman Lewis Springing Lease Guaranty" shall mean that certain Lease
Guaranty (Hockman Lewis-200 Executive), dated as of the date hereof, made by
an Acceptable Lease Guarantor in favor of Lender in respect of all rent and
expense recoveries due under the Hockman Lewis Lease from and after any time
the tenant under the Hockman Lewis Lease exercises any right of termination
pursuant to the Hockman Lewis Lease.

      "Improvements" shall mean, collectively, the New York Improvements, the
New Jersey Improvements and the Connecticut Improvements.

      "Indebtedness" shall mean, for any Person, without duplication: (i) all
indebtedness of such Person for borrowed money, for amounts drawn under a
letter of credit, or for the deferred purchase price of property for which
such Person or its assets is liable, (ii) all unfunded amounts under a loan
agreement, letter of credit, or other credit facility for which such Person
would be liable if such amounts were advanced thereunder, (iii) all amounts
required to be paid by such Person as a guaranteed payment to partners or a
preferred or special dividend, including any mandatory redemption of shares or
interests but not any preferred return or special dividend paid solely from,
and to the extent of, Excess Cash Flow after the payment of Operating Expenses
and Debt Service, (iv) all indebtedness guaranteed by such Person, directly or
indirectly, (v) all obligations under leases that constitute capital leases
for which such Person is liable, and (vi) all obligations of such Person under
interest rate swaps, caps, floors, collars and other interest hedge
agreements, in each case whether such Person is liable contingently or
otherwise, as obligor, guarantor or otherwise, or in respect of which
obligations such Person otherwise assures a creditor against loss.

      "Indemnified Liabilities" shall have the meaning set forth in Section
11.13(b).

      "Independent Director" shall have the meaning set forth in Section
3.1.24(o).

      "Initial Interest Period" shall have the meaning set forth in Section
2.3.1.

      "Insolvency Opinion" shall mean that certain bankruptcy
non-consolidation opinion letter dated the date hereof delivered by Paul,
Hastings, Janofsky & Walker LLP in connection with the Loan.

                                       9
<PAGE>

      "Insurance Account" shall have the meaning set forth in Section 6.4.1.

      "Insurance Funds" shall have the meaning set forth in Section 6.4.1.

      "Insurance Premiums" shall have the meaning set forth in Section
5.1.1(b).

      "Insurance Proceeds" shall have the meaning set forth in Section 5.2(b).

      "Interest Period" shall have the meaning set forth in Section 2.3.3.

      "Interest Rate" shall mean a rate of Five and Twenty Nine Thousand Four
Hundred Seventeen One-Hundred-Thousandths percent (5.29417%) per annum.

      "Joint Venture Closing" shall mean, as applicable, the Australian Joint
Venture Closing or the Alternate Joint Venture Closing.

      "Key Principal" shall mean, (i) from the Closing Date until the Joint
Venture Closing, ROP, (ii) from and after an Australian Joint Venture Closing,
the Australian Joint Venture Partner, and (iii) from and after an Alternate
Joint Venture Closing, ROP, in each case unless otherwise agreed to by Lender
in its reasonable discretion.

      "Lease" shall mean any lease, sublease or sub-sublease, letting,
license, concession or other agreement (whether written or oral and whether
now or hereafter in effect) pursuant to which any Person is granted a
possessory interest in, or right to use or occupy, all or any portion of any
space in the Properties, and every modification, amendment or other agreement
relating to such lease, sublease, sub-sublease or other agreement entered into
in connection with such lease, sublease, sub-sublease or other agreement and
every guarantee of the performance and observance of the covenants, conditions
and agreements to be performed and observed by the other party thereto.

      "Lease Guaranties" shall mean, collectively, the 660 White Plains Master
Lease, the Ampacet Springing Lease Guaranty, the ADM Springing Lease Guaranty,
the GSA Springing Lease Guaranty, the Quaker Springing Lease Guaranty, the
Lincoln Educational Springing Lease Guaranty, the Hockman Lewis Springing
Lease Guaranty, the Liberty Mutual Springing Lease Guaranty and the Ajilon
Springing Lease Guaranty.

      "Lease Termination Payments" shall have the meaning set forth in Section
6.6.1(b)(i).

      "Legal Requirements" shall mean all statutes, laws, rules, orders,
regulations, ordinances, judgments, decrees and injunctions of Governmental
Authorities affecting Borrowers or the Properties or any part thereof or the
construction, use, alteration or operation thereof, or any part thereof,
whether now or hereafter enacted and in force, including the Americans with
Disabilities Act of 1990, and all permits, licenses and authorizations and
regulations relating thereto, and all covenants, agreements, restrictions and
encumbrances contained in any instruments, either of record or known to
Borrowers, at any time in force affecting the Properties or any part thereof,
including any which may (i) require repairs, modifications or alterations in
or to the Properties or any part thereof, or (ii) in any way limit the use and
enjoyment thereof.

                                      10
<PAGE>

      "Letter of Credit" shall mean an irrevocable, unconditional,
transferable, clean sight draft letter of credit acceptable to Lender and the
Rating Agencies (either an evergreen letter of credit or one which does not
expire until at least thirty (30) Business Days after the Stated Maturity
Date) in favor of Lender and entitling Lender to draw thereon in New York, New
York, issued by a domestic Eligible Institution or the U.S. agency or branch
of a foreign Eligible Institution. If at any time the bank issuing any such
Letter of Credit shall cease to be an Eligible Institution, Lender shall have
the right after ten (10) Business Days' notice thereof to draw down the same
in full and hold the proceeds of such draw in accordance with the applicable
provisions hereof, unless Borrower shall have replaced such Letter of Credit
with a substitute Letter of Credit from an Eligible Institution prior to such
draw down.

      "Liabilities" shall have the meaning set forth in Section 9.2(b).

      "Liberty Mutual Lease" means that certain Agreement of Lease dated as of
June 24, 2005 made by and between ROP and Liberty Mutual Insurance Company for
the lease of 7,826 rentable square feet on the fourth floor of the building
located at 150 Vanderbilt Motor Parkway, Hauppauge, New York.

      "Liberty Mutual Springing Lease Guaranty" shall mean that certain Lease
Guaranty (Liberty Mutual-150 Motor), dated as of the date hereof, made by an
Acceptable Lease Guarantor in favor of Lender in respect of all rent and
expense recoveries due under the Liberty Mutual Lease from and after any time
the tenant under the Liberty Mutual Lease exercises any right of termination
pursuant to the Liberty Mutual Lease.

      "Lien" shall mean any mortgage, deed of trust, lien (statutory or
otherwise), pledge, hypothecation, easement, restrictive covenant, preference,
assignment, security interest, or any other encumbrance, charge or transfer
of, or any agreement to enter into or create any of the foregoing, on or
affecting all or any portion of the Properties or any interest therein, or any
direct or indirect interest in Borrowers or Sole Member, including any
conditional sale or other title retention agreement, any financing lease
having substantially the same economic effect as any of the foregoing, the
filing of any financing statement, and mechanic's, materialmen's and other
similar liens and encumbrances.

      "Lincoln Educational Lease" means that certain Agreement of Lease dated
as of June 3, 2003 made by and between ROP and Lincoln Educational Services
Corporation, as amended by that certain First Amendment to Lease dated
September 1, 2004, as may be further amended from time to time.

      "Lincoln Educational Springing Lease Guaranty" shall mean that certain
Lease Guaranty (Lincoln Educational-660 White Plains), dated as of the date
hereof, made by an Acceptable Lease Guarantor in favor of Lender in respect of
all rent and expense recoveries due under the Lincoln Educational Lease from
and after any time the tenant under the Lincoln Educational Lease exercises
any right of termination pursuant to the Lincoln Educational Lease.

      "Loan" shall mean the loan in the original principal amount of One
Hundred Ninety Six Million Sixty Eight Thousand Three Hundred and No/100
Dollars ($196,068,300.00) made by Lender to Borrowers pursuant to this
Agreement.

                                      11
<PAGE>

      "Loan Documents" shall mean, collectively, this Agreement, the Note, the
Mortgage, the Assignment of Leases, the Cash Management Agreement, the
Clearing Account Agreement, the Environmental Indemnity, the Lease Guaranties,
the Assignment of Management Agreement, the Operations and Maintenance
Agreements, the Carveout Guaranty and any other documents, agreements and
instruments now or hereafter evidencing, securing or delivered to Lender in
connection with the Loan.

      "Major Contract" shall mean (i) any management, brokerage or leasing
agreement, (ii) any cleaning, maintenance, service or other contract or
agreement of any kind (other than Leases) of a material nature (materiality
for these purposes to include contracts with annual payments due in excess of
$350,000.00 or which extend beyond one year (unless cancelable on thirty (30)
days or less notice)), or (iii) any agreement entered into with an Affiliate
or otherwise upon terms and conditions that are not intrinsically fair or
substantially similar to those that would be available on an arms-length basis
with third parties, in any case of clauses (i) through (iii), above, relating
to the ownership, leasing, management, use, operation, maintenance, repair or
restoration of the Properties, whether written or oral.

      "Major Lease" shall mean any Lease which, either individually, or when
taken together with any other Lease with the same Tenant or its Affiliates,
generates more than 20% of the total annual Rents of the Property affected by
such Lease, but in no event demising less than 20,000 square feet.

      "Management Agreement" shall mean any one of the management agreements
entered into by and between each Borrower and the Manager, pursuant to which
the Manager is to provide management and other services with respect to the
Property owned by such Borrower.

      "Manager" shall mean Reckson Management Group, Inc., a New York
corporation or any other manager approved by Lender and the Rating Agencies in
accordance with the terms and conditions of the Loan Documents.

      "Material Alteration" shall have the meaning set forth in Section
4.1.11.

      "Maturity Date" shall mean the date on which the final payment of
principal of the Note becomes due and payable as herein and therein provided,
whether at the Stated Maturity Date, by declaration of acceleration, or
otherwise.

      "Maximum Legal Rate" shall mean the maximum nonusurious interest rate,
if any, that at any time or from time to time may be contracted for, taken,
reserved, charged or received on the indebtedness evidenced by the Note and as
provided for herein or the other Loan Documents, under the laws of such
Governmental Authority whose laws are held by any court of competent
jurisdiction to govern the interest rate provisions of the Loan.

      "Minimum Disbursement Amount" shall mean Twenty-Five Thousand and No/100
Dollars ($25,000.00).

      "Monthly Debt Service Payment Amount" shall have the meaning set forth
in Section 2.3.1.

                                      12
<PAGE>

      "Monthly Payment Date" shall mean the eleventh (11th) day of every
calendar month occurring during the Term. The first Monthly Payment Date shall
be October 11, 2005.

      "Moody's" shall mean Moody's Investors Service, Inc.

      "Mortgage" shall mean, collectively, the New York Mortgage, the New
Jersey Mortgage and the Connecticut Mortgage.

      "Net Cash Flow" shall mean, for any period, the actual net cash flow of
the Properties after deducting therefrom deposits to (but not withdrawals
from) the Reserve Funds.

      "Net Proceeds" shall mean: (i) the net amount of all Insurance Proceeds
payable as a result of a Casualty to one or more of the Properties, after
deduction of reasonable costs and expenses (including, but not limited to,
reasonable attorneys' fees and costs), if any, in collecting such Insurance
Proceeds, or (ii) the net amount of the Award, after deduction of reasonable
costs and expenses (including, but not limited to, reasonable attorneys' fees
and costs), if any, in collecting such Award.

      "Net Proceeds Deficiency" shall have the meaning set forth in Section
5.5(d).

      "New Jersey Assignment of Leases" shall mean that certain first priority
Assignment of Leases and Rents (New Jersey), dated as of the date hereof, from
New Jersey Borrowers, collectively, as assignors, to Lender, as assignee, as
the same may be amended, restated, replaced, supplemented or otherwise
modified from time to time, delivered in connection with the New Jersey
Properties.

      "New Jersey Borrowers" shall mean, collectively, the 492 River Borrower,
100 Executive Borrower and 200 Executive Borrower.

      "New Jersey Improvements" shall have the meaning ascribed to the term
"Improvements" set forth in the granting clauses of the New Jersey Mortgage.

      "New Jersey Mortgage" shall mean that certain first priority Mortgage,
Assignment of Leases and Rents and Security Agreement (New Jersey), dated the
date hereof, executed and delivered by New Jersey Borrowers as security for
the Loan and encumbering the New Jersey Properties, as the same may be
amended, restated, replaced, supplemented or otherwise modified from time to
time.

      "New Jersey Properties" shall mean, collectively, the Properties located
at 492 River Road, 100 Executive Drive and 200 Executive Drive Property, each
as more particularly described in the New Jersey Mortgage.

      "New York Assignment of Leases" shall mean that certain first priority
Assignment of Leases and Rents (New York), dated as of the date hereof, from
New York Borrowers, as assignors, to Lender, as assignee, as the same may be
amended, restated, replaced, supplemented or otherwise modified from time to
time, delivered in connection with the New York Properties.

                                      13
<PAGE>

      "New York Borrowers" shall mean, collectively, the 35 Pinelawn Borrower,
80 Grasslands Borrower, 100 Grasslands Borrower, 150 Vanderbilt Borrower and
660 White Plains Borrower.

      "New York Improvements" shall have the meaning ascribed to the term
"Improvements" set forth in the granting clauses of the New York Mortgage.

      "New York Mortgage" shall mean that certain first priority Mortgage,
Assignment of Leases and Rents and Security Agreement (New York), dated the
date hereof, executed and delivered by New York Borrowers as security for the
Loan and encumbering the New York Properties, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time.

      "New York Properties" shall mean, collectively, the Properties located
at 35 Pinelawn Road, 80 Grasslands Road, 100 Grasslands Road, 150 Vanderbilt
Motor Parkway and the 660 White Plains Road, each as more particularly
described in the New York Mortgage.

      "Non-Core Property" or "Non-Core Properties" shall mean, individually or
collectively, as applicable, the Properties located at 100 Executive Drive,
200 Executive Drive, 35 Pinelawn Road, 80 Grasslands Road, 100 Grasslands Road
and 225 High Ridge Road, each as more particularly described in the New York
Mortgage, the New Jersey Mortgage or the Connecticut Mortgage, as applicable.

      "Non-Excluded Taxes" shall have the meaning set forth in Section
2.6.7(a).

      "Non-Exclusion Policies" shall have the meaning set forth in Section
5.1.1(h).

      "Note" shall have the meaning set forth in Section 2.1.3.

      "Notice" shall have the meaning set forth in Section 11.6.

      "Obligations" shall mean, collectively, Borrowers' obligations for the
payment of the Debt and the performance of the Other Obligations.

      "OFAC" shall have the meaning set forth in Section 4.1.14(b).

      "Officer's Certificate" shall mean a certificate delivered to Lender by
Borrowers which is signed by an authorized senior officer of Sole Member.

      "Operating Expenses" shall mean all costs and expenses relating to the
operation, maintenance and/or management of the Properties, including
utilities, repairs and maintenance, insurance, property taxes and assessments,
advertising expenses, payroll and related taxes, equipment lease payments and
management fees payable under the Management Agreements not to exceed three
and one-half percent (3.5%) of the monthly Gross Revenue of all of the
Properties, but excluding actual Capital Expenditures, depreciation,
amortization, any extraordinary expenses and deposits required to be made to
the Reserve Funds.

                                      14
<PAGE>

      "Operations & Maintenance Agreements" shall mean, collectively, those
certain Operations and Maintenance Agreements, each dated as of the date
hereof, among each Borrower and Lender, each with respect to the existence and
maintenance of asbestos containing materials at the Property owned by such
Borrower, as each of the same may be amended, restated, replaced, supplemented
or otherwise modified from time to time.

      "Other Charges" shall mean all ground rents, maintenance charges,
impositions other than Taxes and any other charges, including, without
limitation, vault charges and license fees for the use of vaults, chutes and
similar areas adjoining any Property, now or hereafter levied or assessed or
imposed against any Property or any part thereof.

      "Other Obligations" shall mean (a) the performance of all obligations of
Borrowers contained herein; (b) the performance of each obligation of
Borrowers contained in any other Loan Document; and (c) the performance of
each obligation of Borrowers contained in any renewal, extension, amendment,
modification, consolidation, change of, or substitution or replacement for,
all or any part of this Agreement, the Note or any other Loan Document.

      "Outstanding Principal Balance" shall mean, as of any date, the
outstanding principal balance of the Loan.

      "Patriot Act" shall mean the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act
(USA PATRIOT ACT) of 2001, as the same may be amended from time to time, and
corresponding provisions of future laws.

      "Patriot Act Offense" shall have the meaning set forth in Section
4.1.14(b).

      "Payment Differential" shall mean, as of any Tender Date, an amount
equal to (i) the Interest Rate minus the Reinvestment Yield as of such Tender
Date, divided by (ii) 12 and multiplied by (iii) the Outstanding Principal
Balance on such Tender Date, provided that the Payment Differential shall in
no event be less than zero.

      "Permitted Encumbrances" shall mean, collectively, (i) the Liens and
security interests created by the Loan Documents, (ii) all encumbrances and
other matters disclosed in the Title Insurance Policy, (iii) Liens, if any,
for Taxes imposed by any Governmental Authority not yet due or delinquent,
(iv) any workers', mechanics' or similar Liens on any Property provided any
such Lien is discharged or bonded in accordance with Section 3.6 of the
Mortgage, and (v) such other title and survey exceptions as Lender has
approved or may approve in writing in Lender's reasonable discretion.

      "Permitted Indebtedness" shall have the meaning set forth in Section
3.1.24(d).

      "Permitted Investments" shall have the meaning set forth in the Cash
Management Agreement.

      "Permitted Mezzanine Debt" shall mean one or more mezzanine loans
procured by one or more of Borrowers after the Closing Date from one or more
third party lenders that are Eligible Institutions, which such mezzanine
loan(s) shall be secured by equity interests in one or

                                      15
<PAGE>

more of Borrowers and shall be subject to satisfaction of each of the
following conditions: (i) the combined Debt Service Coverage Ratio of the Loan
and all such mezzanine loans for the twelve (12) full calendar months
immediately preceding such date of determination shall be no less than the
actual Debt Service Coverage Ratio in respect of the Loan for the twelve (12)
full calendar months immediately preceding the Closing Date, and (ii) the
combined loan-to-value ratio of the Loan and all such mezzanine loans shall be
no greater than the actual loan-to-value ratio in respect of the Loan at the
Closing Date.

      "Permitted Transfer" shall have the meaning set forth in Section 8.1.

      "Permitted Transferee" shall mean a corporation, partnership or limited
liability company (i) acceptable to Lender in its reasonable discretion, (ii)
that qualifies as a single purpose, bankruptcy remote entity under criteria
established by the Rating Agencies, (iii) whose counsel has delivered to
Lender a non-consolidation opinion acceptable to Lender and the Rating
Agencies in their sole discretion, and (iv) is a reputable Person of good
character, creditworthy and with sufficient financial worth considering the
obligations assumed and undertaken, as evidenced by financial statements and
other information reasonably requested by Lender.

      "Person" shall mean any individual, corporation, partnership, limited
liability company, joint venture, estate, trust, unincorporated association,
any other entity, any Governmental Authority and any fiduciary acting in such
capacity on behalf of any of the foregoing.

      "Physical Conditions Report" shall mean one or more reports prepared by
a company satisfactory to Lender regarding the physical condition of the
Properties, satisfactory in form and substance to Lender in its sole
discretion, which report shall, among other things, confirm that each of the
Properties and their respective uses comply, in all material respects, with
all applicable Legal Requirements (including zoning, subdivision and building
laws).

      "Policies" shall have the meaning set forth in Section 5.1.1(b).

      "Portfolio Terrorism Policies" shall have the meaning set forth in
Section 5.1.1(h).

      "Post Casualty Par Paydown" shall have the meaning set forth in Section
5.2(c)(ii).

      "Prepayment Lockout Expiration Date" shall mean the date which is the
Monthly Payment Date occurring one (1) month prior to the Stated Maturity
Date.

      "Properties" shall mean, subject to Section 2.5.2(b) hereof,
collectively, each parcel of real property listed on Exhibits A-1 through A-9
attached hereto, the Improvements on each such parcel of real property and all
personal property relating to each such parcel of real property owned by any
Borrower and encumbered by the New York Mortgage, the New Jersey Mortgage or
the Connecticut Mortgage, as applicable, together with all rights pertaining
to each such parcel of real property and the related Improvements, as more
particularly described in the granting clauses of the New York Mortgage, the
New Jersey Mortgage or the Connecticut Mortgage, as applicable.

      "Property" shall mean any one of the Properties, individually.

                                      16
<PAGE>

      "Quaker Lease" shall mean, collectively, (i) that certain Agreement of
Lease dated as of November 13, 2001 made by and between ROP and Quaker Sales
and Distribution, Inc. for the lease of 23,495 of rentable square feet on the
second floor of the building located at 660 White Plains Road, Tarrytown, New
York, 10591, and (ii) that certain Agreement dated as of January 31, 2002 by
and between ROP and Quaker Sales and Distribution Inc. for the lease of 1,019
of rentable square feet of storage space in the lower level of the building
known as 660 White Plains Road, Tarrytown, New York.

      "Quaker Springing Lease Guaranty" shall mean that certain Lease Guaranty
(Quaker-660 White Plains), dated as of the date hereof, made by an Acceptable
Lease Guarantor in favor of Lender in respect of all rent and expense
recoveries due under the Quaker Lease from and after any time the tenant under
the Quaker Lease exercises any right of termination pursuant to the Quaker
Lease.

      "Qualified Carrier" shall have the meaning set forth in Section
5.1.1(h).

      "RA" shall mean Reckson Associates Realty Corp., a Maryland corporation.

      "RA Transfer" or "RA Transfers" shall have the meaning set forth in
Section 8.2(a)(vi).

      "Rating Agencies" shall mean, prior to the final Securitization of the
Loan, each of S&P, Moody's and Fitch, or any other nationally-recognized
statistical rating agency which has been designated by Lender and, after the
final Securitization of the Loan, shall mean any of the foregoing that have
rated any of the Securities.

      "Rating Agency Confirmation" shall mean a written affirmation from each
of the Rating Agencies that the credit rating of the Securities by such Rating
Agency immediately prior to the occurrence of the event with respect to which
such Rating Agency Confirmation is sought will not be qualified, downgraded or
withdrawn as a result of the occurrence of such event, which affirmation may
be granted or withheld in such Rating Agency's sole and absolute discretion.

      "Registration Statement" shall have the meaning set forth in Section
9.2(b).

      "Reinvestment Yield" shall mean, as of any Tender Date, an amount equal
to the lesser of (a) the (i) yield on the U.S. Obligations with the same
maturity date as the Stated Maturity Date; or (ii) if no such U.S. Obligations
issue is available, then the interpolated yield on the two U.S. Obligations
issues (primary issues) with maturity dates (one prior to and one following)
that are closest to the Stated Maturity Date, or (b) the (i) yield on the U.S.
Obligations with a term equal to the remaining average life of the Debt; or
(ii) if no such U.S. Obligations are available, then the interpolated yield on
the two U.S. Obligations issues (primary issues) with terms (one prior to and
one following) that are closest to the remaining average life of the Debt,
with each such yield being based on the bid price for such issue as published
in The Wall Street Journal on the date that is fourteen (14) days prior to the
Tender Date set forth in such Borrower's notice of repayment (or, if such bid
price is not published on that date, the next preceding date on which such bid
price is so published) and converted to a monthly compounded nominal yield.

                                      17
<PAGE>

      "Release Date" shall have the meaning set forth in Section 2.5.1(a).

      "REMIC Trust" shall mean a "real estate mortgage investment conduit"
within the meaning of Section 860D of the Code that holds the Note.

      "Rent Roll Schedules" shall have the meaning set forth in Section
3.1.22.

      "Rents" shall mean all rents, rent equivalents, moneys payable as
damages (including payments by reason of the rejection of a Lease in a
bankruptcy proceeding) or in lieu of rent or rent equivalents, royalties
(including all oil and gas or other mineral royalties and bonuses), income,
fees, receivables, receipts, revenues, deposits (including security, utility
and other deposits), accounts, cash, issues, profits, charges for services
rendered, and other payment and consideration of whatever form or nature
received by or paid to or for the account of or benefit of Borrowers, Manager
or any of their agents or employees from any and all sources arising from or
attributable to the Properties and the Improvements, including all
receivables, customer obligations, installment payment obligations and other
obligations now existing or hereafter arising or created out of the sale,
lease, sublease, license, concession or other grant of the right of the use
and occupancy of the Properties or rendering of services by Borrowers, Manager
or any of their agents or employees, and Insurance Proceeds, if any, from
business interruption or other loss of income insurance, but only to the
extent Lender elects to treat such Insurance Proceeds as business or rental
interruption Insurance Proceeds pursuant to Section 5.4 hereof.

      "Replacement Tenant" shall have the meaning set forth in Section
6.6.2(b).

      "Required Net Worth" shall have the meaning set forth in Section 6.11.

      "Required Repairs Account" shall have the meaning set forth in Section
6.2.1.

      "Required Repairs Funds" shall have the meaning set forth in Section
6.2.1.

      "Required Repairs" shall have the meaning set forth in Section 6.2.1.

      "Reserve Funds" shall mean, collectively, all funds deposited by
Borrowers with Lender or Deposit Bank pursuant to Article 6 of this Agreement,
including, but not limited to, the Capital Expenditure Funds, the Insurance
Funds, the Tax Funds, the Required Repair Funds, and the Rollover Funds.

      "Reserve Guarantor" shall mean ROP or, after an Australian Joint Venture
Closing, the Australian Joint Venture Partner, provided such Person has a
Tangible Net Worth equal to or greater than $100,000,000.00 and a
debt-to-equity ratio of no greater than 65%.

      "Reserve Guaranty" shall have the meaning set forth in Section 6.11.

      "Reserve Guaranty Excess" shall have the meaning set forth in Section
6.11(b) hereof.

      "Restoration" shall have the meaning set forth in Section 5.2(a).

      "RICO" shall have the meaning set forth in Section 11.22(i).

                                      18
<PAGE>

      "Rollover Account" shall have the meaning set forth in Section 6.6.1(a).

      "Rollover Funds" shall have the meaning set forth in Section 6.6.1(a).

      "ROP" shall mean Reckson Operating Partnership, L.P., a Delaware limited
partnership.

      "S&P" shall mean Standard & Poor's Ratings Group, a division of the
McGraw-Hill Companies.

      "Secondary Market Transaction" shall have the meaning set forth in
Section 9.1(a).

      "Securities" shall have the meaning set forth in Section 9.1(a).

      "Securities Act" shall have the meaning set forth in Section 9.2(a).

      "Securitization" shall have the meaning set forth in Section 9.1(a).

      "Servicer" shall have the meaning set forth in Section 11.24.

      "Servicing Agreement" shall have the meaning set forth in Section 11.24.

      "Severed Loan Documents" shall have the meaning set forth in Section
10.2(c).

      "Significant Casualty" shall have the meaning set forth in Section
5.2(b).

      "Sole Member" shall mean ROP, the sole member of each of Borrowers, and
its permitted successors and assigns.

      "Special Member" shall have the meaning set forth in Section 3.1.24(q).

      "Standard Statements" shall have the meaning set forth in Section
9.1(c)(i).

      "State" shall mean the State or Commonwealth in which the Properties or
any part thereof is located.

      "Stated Maturity Date" shall mean September 11, 2010.

      "Survey" shall mean a survey of each Property prepared by a surveyor
licensed in the State and satisfactory to Lender and the company or companies
issuing the Title Insurance Policy, and containing a certification of such
surveyor satisfactory to Lender.

      "Synapse Lease" shall mean that certain Lease dated May 11, 2005 by and
between 225 High Ridge Venture, a Connecticut general partnership, as
landlord, and Synapse Group, Inc., a Delaware corporation, as tenant, for a
portion of the office building known as 225 High Ridge Road, Stamford, CT.

      "Synapse Rollover Funds" shall have the meaning set forth in Section
6.6.1.

      "Taking" shall have the meaning set forth in Section 5.3(b).

                                      19
<PAGE>

      "Tangible Net Worth" shall mean, as of a particular date, (a) all
amounts that would be included as total shareholders' equity on a consolidated
balance sheet of Guarantor and its subsidiaries as at such date computed in
accordance with the cash basis method of accounting; minus (b) (i) the amount
of any Indebtedness owed to Guarantor by any member, partner, shareholder,
officer, or director of Guarantor, and (ii) the value of any intangible assets
(including any value attributable to goodwill, organizational expenses,
trademarks, trade names and similar intellectual property rights, franchises,
licenses, and other items which would properly be treated as intangibles in
accordance with the cash basis method of accounting).

      "Tax Account" shall have the meaning set forth in Section 6.3.1.

      "Tax Funds" shall have the meaning set forth in Section 6.3.1.

      "Taxes" shall mean all real estate and personal property taxes,
assessments, water rates or sewer rents, now or hereafter levied or assessed
or imposed against the Properties or part thereof, together with all interest
and penalties thereon.

      "Tenant" shall mean any Person obligated by contract or otherwise to pay
monies (including a percentage of gross income, revenue or profits) under any
Lease now or hereafter affecting all or any part of the Properties.

      "Tender Date" shall mean the date of any prepayment of the Loan.

      "Term" shall mean the entire term of this Agreement, which shall expire
upon repayment in full of the Debt and full performance of each and every
obligation to be performed by Borrowers pursuant to the Loan Documents.

      "Terrorism Exclusion" shall have the meaning set forth in Section
5.1.1(h).

      "Terrorism Insurance Cap" shall have the meaning set forth in Section
5.1.1(h).

      "Terrorism Policies" shall have the meaning set forth in Section
5.1.1(h).

      "Terrorism Policy" shall have the meaning set forth in Section 5.1.1(h).

      "Title Insurance Policy" shall mean an ALTA mortgagee title insurance
policy in the form acceptable to Lender issued with respect to each Property
and insuring the Lien of the Mortgage.

      "Transfer" shall have the meaning set forth in Section 4.2.1.

      "Trustee" shall mean any trustee holding the Loan in a Securitization.

      "UBS" shall have the meaning set forth in Section 9.2(b).

      "UBS Group" shall have the meaning set forth in Section 9.2(b).

      "UCC" or "Uniform Commercial Code" shall mean the Uniform Commercial
Code as in effect in the State of New York unless otherwise specified herein.

                                      20
<PAGE>

      "Undefeased Note" shall have the meaning set forth in Section 2.5.1(c).

      "Underwriter Group" shall have the meaning set forth in Section 9.2(b).

      "Updated Information" shall have the meaning set forth in Section
9.1(b)(i).

      "U.S. Obligations" shall mean (i) direct obligations of the United
States of America for the payment of which its full faith and credit is
pledged and which are not subject to prepayment, call or early redemption,
(ii) other non-callable "government securities" as defined in Treasury
Regulations Section 1.860G-2(a)(8)(i), as amended which (a) will not result in
a reduction, downgrade or withdrawal of the ratings for the Securities or any
class thereof issued in connection with a Securitization, (b) are then
outstanding and (c) are then being generally accepted by the Rating Agencies
without any reduction, downgrade or withdrawal of the ratings for the
Securities or any class thereof issued in connection with a Securitization or
(c) other non-callable instruments, which (w) if a Securitization has
occurred, will not cause the REMIC Trust formed pursuant to such
Securitization to fail to maintain its status as a "real estate mortgage
investment conduit" within the meaning of Section 860D of the Code, (x) will
not result in a reduction, downgrade or withdrawal of the ratings for the
Certificates or any class thereof issued in connection with the Securities,
(y) are then outstanding and (z) are then being generally accepted by the
Rating Agencies without any reduction, downgrade or withdrawal of the ratings
for the Securities or any class thereof issued in connection with a
Securitization.

      "U.S. Person" shall mean any Person that is (i) a citizen or resident of
the United States, (ii) a corporation, partnership or other entity created or
organized under the laws of the United States or any state, commonwealth or
district thereof, or (iii) any estate or trust that is subject to United
States federal income taxation, regardless of the source of its income.

      "Vacant Space" shall have the meaning set forth in Section 6.6.2(b).

      "Yield Maintenance Premium" shall mean, as of any Tender Date, an amount
equal to the present value of a series of payments, each equal to the Payment
Differential as of such Tender Date and payable on each Monthly Payment Date
over the remaining original term of the Note until the Stated Maturity Date
and on the Stated Maturity Date, discounted at the Reinvestment Yield as of
such Tender Date for the number of months remaining from such Tender Date to
each Monthly Payment Date until the Stated Maturity Date.

      1.2   Principles of Construction.

      All references to sections and schedules are to sections and schedules
in or to this Agreement unless otherwise specified. Unless otherwise
specified, the words "hereof," "herein" and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole
and not to any particular provision of this Agreement and the word "including"
shall mean "including but not limited to". Unless otherwise specified, all
meanings attributed to defined terms herein shall be equally applicable to
both the singular and plural forms of the terms so defined.

                                      21
<PAGE>

                                   ARTICLE 2
                                   THE LOAN
                                   --------

      2.1   The Loan.

            2.1.1      Agreement to Lend and Borrow. Subject to and upon the
terms and conditions set forth herein, Lender shall make the Loan to Borrowers
and Borrowers shall accept the Loan from Lender on the Closing Date.

            2.1.2      Single Disbursement to Borrowers. Borrowers shall
receive only one borrowing hereunder in respect of the Loan and any amount
borrowed and repaid hereunder in respect of the Loan may not be reborrowed.

            2.1.3      The Note. The Loan shall be evidenced by that certain
Promissory Note of even date herewith, in the stated principal amount of One
Hundred Ninety Six Million Sixty Eight Thousand Three Hundred and No/100
Dollars ($196,068,300.00) executed by Borrowers and payable to the order of
Lender in evidence of the Loan (as the same may hereafter be amended,
supplemented, restated, increased, extended or consolidated from time to time,
the "Note") and shall be repaid in accordance with the terms of this Agreement
and the Note.

            2.1.4      Use of Proceeds. Borrowers shall use proceeds of the
Loan to (i) pay and discharge any existing loans relating to the Properties,
(ii) pay all past-due Taxes, Insurance Premiums and Other Charges, if any, in
respect of the Properties, (iii) make initial deposits of the Reserve Funds,
and (iv) pay costs and expenses incurred in connection with the closing of the
Loan. Any excess proceeds may be used for any lawful purpose.

      2.2   Interest Rate.

            2.2.1      Interest Rate. Interest on the Outstanding Principal
Balance shall accrue throughout the Term at the Interest Rate.

            2.2.2      [Intentionally Omitted].

            2.2.3      Default Rate. In the event that, and for so long as,
any Event of Default shall have occurred and be continuing, the Outstanding
Principal Balance and, to the extent permitted by law, overdue interest in
respect of the Loan, shall accrue interest at the Default Rate, calculated
from the date such payment was due without regard to any grace or cure periods
contained herein. Interest at the Default Rate shall be paid immediately upon
demand, which demand may be made as frequently as Lender shall elect.

            2.2.4      Interest Calculation. Interest on the Outstanding
Principal Balance shall be calculated by multiplying (A) the actual number of
days elapsed in the period for which the calculation is being made by (B) a
daily rate based on a three hundred sixty (360) day year (that is, the
Interest Rate or the Default Rate, as then applicable), expressed as an annual
rate divided by 360) by (C) the Outstanding Principal Balance. The accrual
period for calculating interest due on each Monthly Payment Date shall be the
Interest Period immediately prior to such Monthly Payment Date.

                                      22
<PAGE>

            2.2.5      Usury Savings. This Agreement and the other Loan
Documents are subject to the express condition that at no time shall Borrowers
be required to pay interest on the principal balance of the Loan at a rate
which could subject Lender to either civil or criminal liability as a result
of being in excess of the Maximum Legal Rate. If by the terms of this
Agreement or the other Loan Documents, Borrowers are at any time required or
obligated to pay interest on the principal balance due hereunder at a rate in
excess of the Maximum Legal Rate, the Interest Rate or the Default Rate, as
the case may be, shall be deemed to be immediately reduced to the Maximum
Legal Rate and all previous payments in excess of the Maximum Legal Rate shall
be deemed to have been payments in reduction of principal and not on account
of the interest due hereunder. All sums paid or agreed to be paid to Lender
for the use, forbearance, or detention of the sums due under the Loan, shall,
to the extent permitted by applicable law, be amortized, prorated, allocated
and spread throughout the full stated term of the Loan until payment in full
so that the rate or amount of interest on account of the Loan does not exceed
the Maximum Legal Rate from time to time in effect and applicable to the Loan
for so long as the Loan is outstanding.

      2.3   Loan Payments.

            2.3.1      Payments. Borrowers shall pay to Lender (a) on the date
hereof, an amount equal to interest only on the Outstanding Principal Balance
from the Closing Date up to and including September 11, 2005 (the "Initial
Interest Period"), (b) on each Monthly Payment Date thereafter beginning on
October 11, 2005 throughout the Term, a payment of interest only computed at
the Interest Rate on the Outstanding Principal Balance for the applicable
Interest Period (the "Monthly Debt Service Payment Amount"), and (c) all
amounts required in respect of Reserve Funds as set forth in Article 6 hereof.

            2.3.2      [Intentionally Omitted.]

            2.3.3      Payments Generally. After the Initial Interest Period,
each interest accrual period thereafter (each, an "Interest Period") shall
commence on the eleventh (11th) day of each calendar month during the Term and
shall end on and include the tenth (10th) day of the next occurring calendar
month. For purposes of making payments hereunder, but not for purposes of
calculating interest accrual periods, if the day on which such payment is due
is not a Business Day, then amounts due on such date shall be due on the
immediately succeeding Business Day. Lender shall have the right from time to
time, in its sole discretion, upon not less than thirty (30) days prior
written notice to Borrowers, to change the Monthly Payment Date to a different
calendar day each month which is not more than five (5) days earlier nor more
than five (5) days later than the eleventh day of each calendar month;
provided, however, that if Lender shall have elected to change the Monthly
Payment Date as aforesaid, Lender shall have the option, but not the
obligation, to adjust the Interest Period accordingly. With respect to
payments of principal due on the Maturity Date, interest shall be payable at
the Interest Rate or the Default Rate, as the case may be, through and
including the day immediately preceding such Maturity Date. All amounts due
pursuant to this Agreement and the other Loan Documents shall be payable
without setoff, counterclaim, defense or any other deduction whatsoever.

            2.3.4      Payment on Maturity Date. Borrowers shall pay to Lender
on the Maturity Date the Outstanding Principal Balance, all accrued and unpaid
interest and all other

                                      23
<PAGE>

amounts due hereunder and under the Note, the Mortgage and the other Loan
Documents less any Non-Excluded Taxes, as applicable.

            2.3.5      Late Payment Charge. If any principal, interest or any
other sum due under the Loan Documents is not paid by Borrowers on the date on
which it is due, or if the payment of the principal due on the Maturity Date
is not paid within thirty (30) days of the Maturity Date, Borrowers shall pay
to Lender upon demand an amount equal to the lesser of three percent (3%) of
such unpaid sum or the maximum amount permitted by applicable law in order to
defray the expense incurred by Lender in handling and processing such
delinquent payment and to compensate Lender for the loss of the use of such
delinquent payment provided that no such amount shall be due in connection
with any debt service payment amounts due hereunder if, as of the applicable
Monthly Payment Date, sufficient funds are in the Deposit Account and no other
Event of Default shall then be continuing. Any such amount shall be secured by
the Mortgage and the other Loan Documents.

            2.3.6      Method and Place of Payment.

            (a)        Except as otherwise specifically provided herein, all
payments and prepayments under this Agreement and the Note shall be made to
Lender not later than 1:00 P.M., New York City time, on the date when due and
shall be made in lawful money of the United States of America in immediately
available funds at Lender's office or at such other place as Lender shall from
time to time designate, and any funds received by Lender after such time
shall, for all purposes hereof, be deemed to have been paid on the next
succeeding Business Day.

            (b)        Whenever any payment to be made hereunder or under any
other Loan Document shall be stated to be due on a day which is not a Business
Day, the due date thereof shall be the immediately preceding Business Day.

            (c)        All payments required to be made by Borrowers hereunder
or under the Note or the other Loan Documents shall be made irrespective of,
and without deduction for, any setoff, claim or counterclaim other than any
Non-Excluded Taxes, as applicable, and shall be made irrespective of any
defense thereto.

            2.3.7      Taxes.

            (a)        Taxes Generally. All payments by Borrowers of principal
of, and interest on, the Loan and all other Obligations shall be made free an
clear of and without deduction for any present or future excise, stamp or
other taxes, fees, duties, levies, imposts, charges, deductions, withholdings
or other charges of any nature whatsoever imposed by any taxing authority, but
excluding (i) franchise taxes, (ii) any taxes imposed on or measured by
Lender's assets, net income, receipts or branch profits, (iii) any taxes
(other than withholding taxes) with respect to Lender that would not be
imposed but for a connection between Lender and the jurisdiction imposing such
taxes (other than a connection arising solely by virtue of the activities of
Lender pursuant to or in respect of this Agreement or any other Loan
Document), and (iv) any taxes, fees, duties, levies, imposts, charges,
deductions, withholdings or other charges to the extent imposed as a result of
the failure of the Lender to provide and keep current (to the extent legally
able) any certificates, documents or other evidence required to qualify for an
exemption

                                      24
<PAGE>

from, or reduced rate of, any such taxes, fees, duties, levies, imposts,
charges, deductions, withholdings or other charges (such non-excluded items
being collectively called "Non-Excluded Taxes"). If any withholding or
deduction from any payment to be made by Borrowers hereunder is required in
respect of any Non-Excluded Taxes pursuant to any applicable law, then
Borrowers shall:

                       (i)    pay directly to the relevant Governmental
      Authority the full amount required to be so withheld or deducted;

                       (ii)   promptly forward to Lender an official receipt
      or other documentation satisfactory to Lender evidencing such payment to
      such Governmental Authority; and

                       (iii)  pay to Lender such additional amount or amounts
      as is necessary to ensure that the net amount actually received by
      Lender will equal the full amount that Lender would have received had no
      such withholding or deduction been required.

            (b)        Tax Indemnification. If Borrowers fail to pay any
Non-Excluded Taxes when due to the appropriate Governmental Authority or fails
to remit the required receipts or other required documentary evidence,
Borrowers shall indemnify Lender for any incremental Non-Excluded Taxes,
interest or penalties that may become payable by Lender as a result of any
such failure.

            (c)        Refunds. If Lender shall become aware that it is
entitled to claim a refund from a Governmental Authority in respect of
Non-Excluded Taxes imposed by any Governmental Authority as to which it has
been indemnified by any Borrower or with respect to which any Borrower has
paid additional amounts pursuant to this Section 2.3.7, it promptly shall
notify such Borrower of the availability of such refund claim and shall make a
timely claim to such taxation authority for such refund at Borrowers' expense.
If Lender receives a refund (including pursuant to a claim for refund made
pursuant to the preceding sentence) in respect of any Non-Excluded Taxes as to
which it has been indemnified by any Borrower or with respect to which any
Borrower has paid additional amounts pursuant to this Section 2.3.7(c), it
shall within thirty (30) days from the date of such receipt pay over the
amount of such refund to such Borrower, net of all reasonable out-of-pocket
expenses of such Lender; provided, however, that Borrower, upon the request of
Lender, agrees to repay the amount paid over to the Borrower to Lender in the
event Lender is required to repay such refund to such Governmental Authority.

      2.4   Prepayments.

            2.4.1      Voluntary Prepayments. Except as otherwise provided
herein, Borrowers shall not have the right to prepay the Loan in whole or in
part prior to the Stated Maturity Date. On the Prepayment Lockout Expiration
Date, or on any Monthly Payment Date thereafter, Borrowers may, at their
option and upon thirty (30) days prior notice to Lender, prepay the
Outstanding Principal Balance in whole only without payment of the Yield
Maintenance Premium.

            2.4.2      Mandatory Prepayments. If Lender is not obligated to
make Net Proceeds available to Borrowers for Restoration, on the next
occurring Monthly Payment Date following

                                      25
<PAGE>

the date on which (a) Lender actually receives any Net Proceeds, and (b)
Lender has determined that such Net Proceeds shall be applied against the
Outstanding Principal Balance, Borrowers shall prepay, or authorize Lender to
apply Net Proceeds as a prepayment of, the Outstanding Principal Balance in an
amount equal to one hundred percent (100%) of such Net Proceeds. So long as no
Event of Default has occurred and is continuing, no Yield Maintenance Premium
shall be due in connection with any prepayment made pursuant to this Section
2.4.2. Any partial prepayment under this Section 2.4.2 shall be applied to the
last payments of principal due under the Loan.

            2.4.3      Prepayments After Default. If after the occurrence and
during the continuance of an Event of Default, payment of all or any part of
the Debt is tendered by Borrowers or otherwise recovered by Lender prior to
the Prepayment Lockout Expiration Date, such tender or recovery shall be
deemed (a) to have been made on the next occurring Monthly Payment Date
together with the Monthly Debt Service Payment Amount, and (b) to be a
voluntary prepayment by Borrowers in violation of the prohibition against
prepayment set forth in Section 2.4.1 hereof, and Borrowers shall pay, in
addition to the Debt, an amount equal to the Yield Maintenance Premium in
respect of the Outstanding Principal Balance, or portion thereof, being
prepaid or satisfied.

      2.5   Defeasance.

            2.5.1      Conditions to Defeasance. Provided no Event of Default
has occurred and is continuing, at any time after the date which is (i) two
(2) years after the "startup day," within the meaning of Section 860G(a)(9) of
the Code, of a "real estate mortgage investment conduit," within the meaning
of Section 860D of the Code, that holds the Note or (ii) three (3) years after
the date hereof, whichever shall first occur, and before the Prepayment
Lockout Expiration Date, Borrowers may cause the release of all of the
Properties or any individual Non-Core Property, as the case may be, from the
Lien of the Mortgage and the other Loan Documents (a "Defeasance Event") upon
the satisfaction of the following conditions:

            (a)        not less than thirty (30) days (or such shorter period
as may be permitted by Lender) prior written notice shall be given to Lender
specifying a date (the "Release Date") on which the Defeasance Collateral is
to be delivered, such Release Date to occur only on a Monthly Payment Date;

            (b)        all accrued and unpaid interest and all other sums due
under the Note and under the other Loan Documents up to the Release Date,
including, without limitation, all actual, out-of-pocket costs and expenses
incurred by Lender or its agents in connection with such release (including,
without limitation, the reasonable fees and actual expenses incurred by
attorneys and accountants in connection with the review of the proposed
Defeasance Collateral and the preparation of the Defeasance Security Agreement
and related documentation), shall be paid in full on or prior to the Release
Date;

            (c)        in the event only a portion of the Loan is the subject
of a defeasance, (i) Lender, at Borrowers' expense, shall prepare all
necessary documents to modify the Mortgage (and any other applicable Loan
Documents) and to amend and restate the Note and issue two substitute notes,
one note having a principal balance equal to the defeased portion of the
original

                                      26
<PAGE>

Note (the "Defeased Note") and the other note having a principal balance equal
to the undefeased portion of the Note (the "Undefeased Note"). The Defeased
Note and the Undefeased Note shall have identical terms as the Note except for
the principal balance. The principal balance of the Defeased Note shall equal
or exceed the Adjusted Release Amount for the Property being released. A
Defeased Note cannot be the subject of any further defeasance;

            (d)        Borrowers shall deliver to Lender on or prior to the
Release Date:

                       (i)    an amount equal to that which is sufficient to
      purchase U.S. Obligations that provide for payments (1) on or prior to,
      but as close as possible to and including, all successive scheduled
      Monthly Payment Dates after the Release Date through the Stated Maturity
      Date, and (2) in amounts equal to or greater than the Monthly Debt
      Service Payment Amount with respect to the Loan, or in the case of a
      partial defeasance, the Defeased Note, as applicable, through and
      including the Stated Maturity Date, together with payment in full of the
      Outstanding Principal Balance of the Loan or the Outstanding Principal
      Balance of the Defeased Note, as applicable, in each case, as of the
      Stated Maturity Date (the "Defeasance Collateral"), each of which shall
      be duly endorsed by the holder thereof as directed by Lender or
      accompanied by a written instrument of transfer in form and substance
      wholly satisfactory to Lender (including, without limitation, such
      instruments as may be required by the depository institution holding
      such securities to effectuate book-entry transfers and pledges through
      the book-entry facilities of such institution) in order to create a
      first priority security interest therein in favor of the Lender in
      conformity with all applicable state and federal laws governing granting
      of such security interests;

                       (ii)   a pledge and security agreement, in form and
      substance satisfactory to Lender in its sole discretion, creating a
      first priority security interest in favor of Lender in the Defeasance
      Collateral (the "Defeasance Security Agreement"), which shall provide,
      among other things, that any excess received by Lender from the
      Defeasance Collateral over the amounts payable by Borrowers hereunder
      shall be refunded to Borrowers promptly after each Monthly Payment Date;

                       (iii)  a certificate of Borrowers certifying that all
      of the requirements set forth in this Section 2.5 have been satisfied;

                       (iv)   an opinion of counsel for Borrowers in form and
      substance satisfactory to Lender in its reasonable discretion and which
      is otherwise standard in securitized commercial lending transactions,
      stating among other things, that (1) Lender has a perfected first
      priority security interest in the Defeasance Collateral and that the
      Defeasance Security Agreement is enforceable against Borrowers in
      accordance with its terms; and (2) that any REMIC Trust formed pursuant
      to a Securitization will not fail to maintain its status as a "real
      estate mortgage investment conduit" within the meaning of Section 860D
      of the Code as a result of such defeasance;

                       (v)    Borrowers shall deliver evidence in writing from
      the applicable Rating Agencies to the effect that the collateral
      substitution will not result in a downgrading, withdrawal or
      qualification of the respective ratings in effect immediately

                                      27
<PAGE>

      prior to such defeasance event for any securities issued in connection
      with the Securitization which are then outstanding;

                       (vi)   a certificate from a firm of independent public
      accountants reasonably acceptable to Lender certifying that the
      Defeasance Collateral is sufficient to satisfy the provisions of Section
      2.5.1(c)(i) above; and

                       (vii)  such other certificates, documents or
      instruments as Lender may reasonably require.

            (e)        In connection with the conditions set forth in Section
2.5.1(d) above, each Borrower hereby appoints Lender as its agent and attorney
in fact for the purpose of using the amounts delivered pursuant to Section
2.5.1(d)(i) above to purchase the Defeasance Collateral.

            (f)        Any Borrower that is the owner of a Non-Core Property
may obtain the release of such Non-Core Property from the lien of the Mortgage
(and the other Loan Documents) only upon the satisfaction of the additional
following covenants:

                       (i)    Borrowers must certify to Lender that after
      giving effect to such partial defeasance, the Debt Service Coverage
      Ratio for the remaining Properties that will remain subject to the lien
      of the Mortgage shall be not less than the greater of (1) the Debt
      Service Coverage Ratio for the twelve (12) full calendar months
      immediately preceding the Closing Date for the Loan, and (2) 1.30x; and

                       (ii)   Borrowers shall deliver to Lender, at Borrowers'
      sole cost and expense, an endorsement to Lender's loan policy of title
      insurance (or an irrevocable commitment to issue such endorsement), in
      form and substance satisfactory to Lender and insuring the priority of
      Lender's remaining liens created by the Mortgage and the other Loan
      Documents on the remaining Properties after giving effect to the partial
      defeasance.

            2.5.2      Release of Property.

            (a)        Upon compliance with the requirements of this Section
2.5.2, all of the Properties or, if a partial defeasance, the applicable
Property, shall be released from the Lien of the Mortgage and the other Loan
Documents, and the Defeasance Collateral shall constitute the only collateral
which shall secure the Note or the Defeased Note, as the case may be. Lender
will, at Borrowers' expense, execute and deliver any agreements reasonably
requested by Borrowers to release the Lien of the Mortgage from all of the
Properties or the applicable Property, as the case may be. Borrowers, pursuant
to the Defeasance Security Agreement, shall authorize and direct that the
payments received from Defeasance Collateral be made directly to Lender and
applied to satisfy the Obligations under the Note or the Defeased Note, as
applicable, including, in the case of full defeasance, payment in full of the
Outstanding Principal Balance as of the Stated Maturity Date. Notwithstanding
anything to the contrary in this Section 2.5 or elsewhere in this Agreement,
in the event that, in connection with one or more partial defeasances,
Borrowers deliver Defeasance Collateral in an aggregate amount sufficient to
repay in full the Outstanding Principal Balance and all accrued and unpaid
interest thereon, all remaining Properties shall be released from the Lien of
the Mortgage.

                                      28
<PAGE>

            (b)        Upon the occurrence of any Defeasance Event, other than
a Defeasance Event affecting all of the Properties, all references herein to
the term "Properties" or the term "Property" shall be deemed to exclude the
Property affected by any such Defeasance Event.

            2.5.3      Successor Borrower. Upon the release of the Properties
or an individual Property, as the case may be, in accordance with Section
2.5.2, Borrowers may, or at the option of Lender shall, assign all of their
Obligations under the Note or the Defeased Note, as applicable, together with
the pledged Defeasance Collateral, to a successor entity designated by
Borrowers and approved by Lender in its sole discretion. Such successor entity
shall execute an assumption agreement in form and substance satisfactory to
Lender in its sole discretion pursuant to which it shall assume Borrowers'
Obligations under the Note and the Defeased Note, as applicable, and the
Defeasance Security Agreement. As conditions to such assignment and
assumption, Borrowers shall (i) deliver to Lender an opinion of counsel in
form and substance reasonably satisfactory to Lender stating, among other
things, that such assumption agreement is enforceable against Borrowers and
such successor entity in accordance with its terms and that the Note or the
Defeased Note, as the case may be, the Defeasance Security Agreement and the
other Loan Documents, as so assumed, are enforceable against such successor
entity in accordance with their respective terms, and (ii) pay all reasonable,
out-of-pocket costs and expenses incurred by Lender or its agents in
connection with such assignment and assumption (including, without limitation,
the review of the proposed transferee and the preparation of the assumption
agreement and related documentation). Upon such assumption, Borrowers shall be
relieved of their Obligations hereunder, under the other Loan Documents and
under the Defeasance Security Agreement other than those Obligations which are
specifically intended to survive the termination, satisfaction or assignment
of this Agreement or the exercise of Lender's rights and remedies hereunder.

            2.5.4      Appointment as Attorney in Fact. Upon the release of
any Property or Properties in accordance with Section 2.5.2, Borrowers shall
have no further right to prepay the Note or the Defeased Note, as applicable,
pursuant to the other provisions of this Section 2.5 or otherwise. In
connection with the conditions set forth in this Section 2.5, each Borrower
hereby appoints Lender as its agent and attorney-in-fact for the purpose of
purchasing the Defeasance Collateral with funds provided by Borrowers.
Borrowers shall pay any and all reasonable, out-of-pocket expenses incurred in
the purchase of the Defeasance Collateral and any revenue, documentary stamp
or intangible taxes or any other tax or charge due in connection with the
transfer of the Note or the Defeased Note, as applicable, or otherwise
required to accomplish the agreements of this paragraph.

      2.6   Contribution.

            (a)        Notwithstanding anything to the contrary contained
herein or in any of the other Loan Documents, the obligations of each Borrower
hereunder and under the other Loan Documents shall be joint and several. On
any date a payment with respect to any of the Obligations or amounts now or
hereafter owing by any guarantor in respect of the Loan Documents, is made,
the right of contribution, if any, of each Borrower or any guarantor (each an
"Obligor") against each Contributor (as hereinafter defined) shall be
determined as provided in the immediately succeeding sentence, with the right
of contribution of each Obligor to be revised and restated as of each such
date. At any time that a payment (a "Relevant Payment") is made

                                      29
<PAGE>

by an Obligor in respect of the Obligations and results in the aggregate
payments made by such Obligor in respect of the Obligations to and including
the date of such Relevant Payment exceeding such Obligor's Contribution
Percentage (as defined below) of the aggregate payments made by all Obligors
in respect of the Obligations to and including such date (such excess, the
"Aggregate Excess Amount"), each such Obligor shall have a right of
contribution against each Contributor who has made payments in respect of the
Obligations to and including such date in an aggregate amount less than such
Contributor's Contribution Percentage of the aggregate payments made to and
including such date by all Obligors in respect of the Obligations (the
aggregate amount of such deficit, the "Aggregate Deficit Amount") in an amount
equal to (x) a fraction the numerator of which is the Aggregate Excess Amount
of such Obligor and the denominator of which is the sum of the Aggregate
Excess Amounts of all Obligors multiplied by (y) the Aggregate Deficit Amount
of such Contributor. An Obligor's right of contribution, if any, pursuant to
this paragraph shall arise at the time of each computation, subject to
adjustment at the time of subsequent computations; provided that such Obligor
may not take any action to enforce such right until the Obligations have been
paid in full, it being expressly recognized and agreed by all Obligors that
any Obligor's right of contribution arising pursuant hereto against any
Contributor shall be expressly junior and subordinate to such Contributor's
obligations and liabilities in respect of the Obligations. As used in this
Section 2.6, (i) "Contributor" shall mean each Obligor required to make any
payment to any other Obligor pursuant to this Section 2.6, (ii) the
"Contribution Percentage" of each Obligor shall mean the percentage obtained
by dividing (x) the Benefit Amount (as hereinafter defined) of such Obligor by
(y) the aggregate Benefit Amount of all Obligors and (iii) the "Benefit
Amount" of each Obligor shall mean the net value of the benefits to such
Obligor from the credit extensions made under the Loan Documents.

            (b)        Each of the Obligors recognizes and agrees that, except
for any right of contribution arising pursuant to this Section 2.6, each
Obligor which makes any payment in respect of the Obligations shall have no
right of contribution, reimbursement or subrogation against any other Obligor
in respect of such payment, any such right of contribution, reimbursement or
subrogation arising under law or otherwise being expressly waived by all
Obligors.

            (c)        Each of the Obligors recognizes and acknowledges that
the rights to contribution arising hereunder shall constitute an asset in
favor of the party entitled to such contribution. In this connection each
Obligor has the right to waive its contribution right against any Contributor
to the extent that after giving effect to such waiver such Obligor would
remain solvent in the determination of this Agreement.

                                   ARTICLE 3
                        REPRESENTATIONS AND WARRANTIES
                        ------------------------------

      3.1   Borrowers' Representations.

      Each Borrower represents and warrants that, except to the extent (if
any) disclosed on Schedule V with reference to a specific Section of this
Article 3, the following are and throughout the Term shall remain, true and
correct in all material respects:

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<PAGE>

            3.1.1      Organization. Each of Borrowers and Sole Member are
duly organized, validly existing and in good standing with full power and
authority to own its assets and conduct its business, and are duly qualified
in all jurisdictions in which the ownership or lease of its property or the
conduct of its business requires such qualification, except where the failure
to be so qualified would not have a material adverse effect on its ability to
perform its Obligations hereunder, and each Borrower has taken all necessary
action to authorize the execution, delivery and performance of this Agreement
and the other Loan Documents by it, and has the power and authority to
execute, deliver and perform under this Agreement, the other Loan Documents
and all the transactions contemplated hereby.

            3.1.2      Proceedings. This Agreement and the other Loan
Documents have been duly authorized, executed and delivered by each Borrower
and constitute a legal, valid and binding obligation of each Borrower,
enforceable against each Borrower in accordance with their respective terms,
except as such enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors' rights generally, and by general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at
law).

            3.1.3      No Conflicts. The execution and delivery of this
Agreement and the other Loan Documents by each Borrower and the performance of
its Obligations hereunder and thereunder will not conflict with any provision
of any law or regulation to which any Borrower is subject, or conflict with,
result in a breach of, or constitute a default under, any of the terms,
conditions or provisions of any of Borrowers' organizational documents or any
agreement or instrument to which any Borrower is a party or by which it is
bound, or any order or decree applicable to any Borrower, or result in the
creation or imposition of any Lien on any of Borrowers' assets or property
(other than pursuant to the Loan Documents), in each case, as would materially
and adversely affect the ability of such Borrower to carry out the
transactions and perform the Obligations contemplated by this Agreement.

            3.1.4      Litigation. There is no action, suit, proceeding or
investigation pending or, to any Borrowers' knowledge, threatened against any
Borrower, Guarantor, Sole Member, the Manager or any Property in any court or
by or before any other Governmental Authority which, if adversely determined,
would materially and adversely affect the condition (financial or otherwise)
or business of any Borrower (including the ability of any Borrower to carry
out the transactions contemplated by this Agreement), Guarantor, Sole Member,
Manager or the condition or ownership of the Properties.

            3.1.5      Agreements.

            (a)        None of Borrowers is in default with respect to any
order or decree of any court or any order, regulation or demand of any
Governmental Authority, which default might have consequences that would
materially and adversely affect the condition (financial or other) or
operations of any Borrower or its properties or might have consequences that
would adversely affect its performance hereunder. None of Borrowers is in
default in any material respect in the performance, observance or fulfillment
of any of the obligations, covenants or conditions contained in any Permitted
Encumbrance or any other agreement or instrument to which it is a party or by
which it or any of the Properties is bound.

                                      31
<PAGE>

            (b)        Each of the Existing Affiliate Contracts is terminable
on thirty (30) days' notice and has been entered into upon terms and
conditions that are intrinsically fair and substantially similar to those that
would be available on an arms-length basis with third parties. None of the
Existing Affiliate Contracts are Major Contracts.

            3.1.6      Consents. No consent, approval, authorization or order
of any court or Governmental Authority is required for the execution, delivery
and performance by Borrowers of, or compliance by any Borrower with, this
Agreement or the other Loan Documents or the consummation of the transactions
contemplated hereby, other than those which have been obtained by any
Borrower.

            3.1.7      Title. Such Borrower has good, marketable and insurable
fee simple title to the Property with respect to which it has granted a Lien
under the New York Mortgage, the New Jersey Mortgage or the Connecticut
Mortgage, as applicable, free and clear of all Liens whatsoever except the
Permitted Encumbrances, such other Liens as are permitted pursuant to the Loan
Documents and the Liens created by the Loan Documents. To such Borrower's
knowledge, the Mortgage and the Assignment of Leases, when properly recorded
in the appropriate records, together with any Uniform Commercial Code
financing statements required to be filed in connection therewith, will create
(a) a valid, perfected first priority lien on each of the Properties, subject
only to Permitted Encumbrances and the Liens created by the Loan Documents,
and (b) perfected security interests in and to all personalty (including the
Leases), all in accordance with the terms thereof, in each case subject only
to any applicable Permitted Encumbrances, such other Liens as are permitted
pursuant to the Loan Documents and the Liens created by the Loan Documents.
There are no mechanics', materialman's or other similar Liens or claims which
have been filed for work, labor or materials affecting any Property which are
or may be Liens prior to, or equal or coordinate with, the Lien of the
Mortgage. None of the Permitted Encumbrances affecting the any Property,
individually or in the aggregate, (a) materially interfere with the benefits
of the security intended to be provided by the Mortgage and this Agreement,
(b) materially and adversely affect the value of any Property, (c) impair the
use or operations of any Property, or (d) impair Borrowers' ability to pay the
Obligations in a timely manner.

            3.1.8      No Plan Assets. As of the date hereof and throughout
the Term (i) none of Borrowers is and will not be an "employee benefit plan,"
as defined in Section 3(3) of ERISA, subject to Title I of ERISA, (ii) none of
the assets of any Borrower constitutes or will constitute "plan assets" of one
or more such plans within the meaning of 29 C.F.R. Section 2510.3-101, (iii)
none of Borrowers is and will not be a "governmental plan" within the meaning
of Section 3(32) of ERISA, and (iv) transactions by or with any Borrower are
not and will not be subject to state statutes regulating investment of, and
fiduciary obligations with respect to, governmental plans.

            3.1.9      Compliance. To Borrower's knowledge, except as may be
set forth in the reports by Planning and Zoning Resource Group obtained by
Lender, each of Borrowers and the Properties and the use thereof comply in all
material respects with all applicable Legal Requirements, including parking,
building and zoning and land use laws, ordinances, regulations and codes. None
of Borrowers is in default or violation of any order, writ, injunction, decree
or demand of any Governmental Authority, the violation of which might
materially adversely affect

                                      32
<PAGE>

the condition (financial or otherwise) or business of any Borrower. No
Borrower has committed any act that may give any Governmental Authority the
right to cause any Borrower to forfeit the Properties or any part thereof or
any monies paid in performance of Borrowers' Obligations under any of the Loan
Documents. Each of the Properties is used exclusively for office and other
appurtenant and related uses. Borrowers' have no actual knowledge as of the
date hereof that in the event all or any part of the Improvements are
destroyed or damaged, said Improvements can not be legally reconstructed to
their condition prior to such damage or destruction, and thereafter exist for
the same use without violating any zoning or other ordinances applicable
thereto and without the necessity of obtaining any variances or special
permits. No legal proceedings are pending or threatened with respect to the
zoning of any Property. Neither the zoning nor any other right to construct,
use or operate any Property is in any way dependent upon or related to any
property other than the Property owned by such Borrower. The use being made of
each of the Properties is in conformity with the certificate of occupancy
issued for such Property and all other restrictions, covenants and conditions
affecting such Property.

            3.1.10     Financial Information. All financial data, including
the statements of cash flow and income and operating expense, that have been
delivered to Lender in respect of each Property (i) are true, complete and
correct in all material respects, (ii) accurately represent the financial
condition of such Property as of the date of such reports, and (iii) have been
prepared in accordance with the cash basis method of accounting throughout the
periods covered, except as disclosed therein. Borrowers do not have any
contingent liabilities, liabilities for taxes, unusual forward or long-term
commitments or unrealized or anticipated losses from any unfavorable
commitments that are known to any Borrower and are reasonably likely to have a
materially adverse effect on any of the Properties or the operation thereof,
except as referred to or reflected in said financial statements. Since the
date of the financial statements, there has been no material adverse change in
the financial condition, operations or business of any Borrower or the
Properties from that set forth in said financial statements.

            3.1.11     Condemnation. No Condemnation or other proceeding has
been commenced or, to any Borrower's actual knowledge, is contemplated with
respect to all or any portion of the Properties or for the relocation of
roadways providing access to the Properties.

            3.1.12     Public Access. Each of the Properties abuts a public
street, has rights of access to public ways and is served by water, sewer,
sanitary sewer and storm drain facilities adequate to service each such
Property for its intended uses. Except as set forth in the Surveys, all public
utilities serving each Property are located in the public right-of-way
abutting such Property, and all such utilities are connected so as to serve
such Property without passing over other property absent a valid easement.

            3.1.13     Separate Lots. Each of the Properties is comprised of
one (1) or more parcels which constitute separate tax lots and do not
constitute a portion of any other tax lot not a part of such Property.

            3.1.14     Assessments. To Borrower's actual knowledge, there are
no pending or proposed special or other assessments for public improvements or
otherwise affecting the

                                      33
<PAGE>

Properties, nor are there any contemplated improvements to the Properties that
may result in such special or other assessments other than as disclosed to
Lender in writing.

            3.1.15     Enforceability. The Loan Documents are not subject to
any right of rescission, set-off, counterclaim or defense by any Borrower,
including the defense of usury, nor would the operation of any of the terms of
the Loan Documents, or the exercise of any right thereunder, render the Loan
Documents unenforceable in any material respect, and none of Borrowers has
asserted any right of rescission, set-off, counterclaim or defense with
respect thereto.

            3.1.16     Assignment of Leases. The Assignment of Leases creates
a valid assignment of, or a valid security interest in, certain rights under
the Leases, subject only to a license granted to each Borrower to exercise
certain rights and to perform certain obligations of the lessor under the
Leases, as appropriate, including the right to operate the Property owned by
such Borrower. No Person other than Lender has any interest in or assignment
of the Leases or any portion of the Rents due and payable or to become due and
payable thereunder.

            3.1.17     Insurance. Borrowers have obtained and have delivered
to Lender original or certified copies of all of the Policies, with all
premiums prepaid thereunder, reflecting the insurance coverages, amounts and
other requirements set forth in this Agreement. No material claims have been
made under any of the Policies, and no Person, including any Borrower, has
done, by act or omission, anything which would impair the coverage of any of
the Policies.

            3.1.18     Licenses. All material permits and approvals, including
without limitation, certificates of occupancy, required by any Governmental
Authority for the use, occupancy and/or operation of the Properties in the
manner in which each such Property is currently being used, occupied and
operated have been obtained and are in full force and effect.

            3.1.19     Flood Zone. None of the Improvements on the Properties
are located in an area identified by the Federal Emergency Management Agency
as a special flood hazard area.

            3.1.20     Physical Condition. To Borrower's actual knowledge, and
except as set forth in the Physical Conditions Report, the Properties,
including all buildings, improvements, parking facilities, sidewalks, storm
drainage systems, roofs, plumbing systems, HVAC systems, fire protection
systems, electrical systems, equipment, elevators, exterior sidings and doors,
landscaping, irrigation systems and all structural components, are in good
condition, order and repair in all material respects; there exists no
structural or other material defects or damages in any of the Properties,
whether latent or otherwise, and no Borrower has received notice from any
insurance company or bonding company of any defects or inadequacies in the
Property owned by such Borrower, or any part thereof, which would adversely
affect the insurability of the same or cause the imposition of extraordinary
premiums or charges thereon or of any termination or threatened termination of
any policy of insurance or bond.

            3.1.21     Boundaries. All of the Improvements which were included
in determining the appraised value of each Property lie wholly within the
boundaries and building restriction lines of such Property, and no
improvements on adjoining properties encroach upon any Property, and no
easements or other encumbrances affecting any Property encroach upon any of

                                      34
<PAGE>

the Improvements, so as to affect the value or marketability of any Property,
except those which are set forth on the Survey, if any, and insured against by
the Title Insurance Policy.

            3.1.22     Leases. The rent rolls attached hereto as Schedule
I-1A, Schedule I-2A, Schedule I-3A, Schedule I-4A, Schedule I-5A, Schedule
I-6A, Schedule I-7A, Schedule I-8A, and Schedule I-9A (collectively, the "Rent
Roll Schedules", are each true, complete and correct in all material respects
and none of the Properties is subject to any Leases other than the Leases
described in the Rent Roll Schedules, as applicable. Except as disclosed to
Lender on the Rent Roll Schedules, the Leases identified on such schedules are
in full force and effect and to Borrower's actual knowledge, there are no
defaults thereunder by any party thereto. The copies of the Leases delivered
to Lender are true and complete, and there are no oral agreements with respect
thereto. Except as set forth on the Rent Roll Schedules, no Rent (including
security deposits) has been paid more than one (1) month in advance of its due
date. All work to be performed by each Borrower under each Lease has been
performed as required and has been accepted by the applicable Tenant. Except
as set forth on the Rent Roll Schedules, any payments, free rent, partial
rent, rebate of rent or other payments, credits, allowances or abatements
required to be given by any Borrower to any Tenant has already been received
by such Tenant. Each Borrower has delivered to Lender a true, correct and
complete list of all security deposits made by Tenants at each of the
Properties that have not been applied (including accrued interest thereon),
all of which are held by each Borrower in accordance with the terms of the
applicable Lease and applicable Legal Requirements. Each Tenant is free from
bankruptcy or reorganization proceedings. No Tenant under any Lease (or any
sublease) is an Affiliate of any Borrower, except as may be otherwise
disclosed on the Rent Roll Schedules, as appropriate. The Tenants under the
Leases have accepted possession of and are in occupancy of all of their
respective demised premises, and are open for business and paying full,
unabated rent. There are no brokerage fees or commissions due and payable in
connection with the leasing of space at any Property, except as has been
previously disclosed to Lender in writing, and no such fees or commissions
will become due and payable in the future in connection with the Leases,
including by reason of any extension of such Lease or expansion of the space
leased thereunder, except as has previously been disclosed to Lender in
writing.

            3.1.23     Filing and Recording Taxes. All transfer taxes, deed
stamps, intangible taxes or other amounts in the nature of transfer taxes
required to be paid under applicable Legal Requirements in connection with the
transfer of the Properties to Borrowers has been paid or are being paid
simultaneously herewith. All mortgage, mortgage recording, stamp, intangible
or other similar tax required to be paid under applicable Legal Requirements
in connection with the execution, delivery, recordation, filing, registration,
perfection or enforcement of any of the Loan Documents, including the
Mortgage, have been paid or are being paid simultaneously herewith. All taxes
and governmental assessments due and owing in respect of the Property have
been paid, or an escrow of funds in an amount sufficient to cover such
payments has been established hereunder or are insured against by the Title
Insurance Policy.

            3.1.24     Single Purpose. Each Borrower hereby represents and
warrants to, and covenants with, Lender with regard to itself only and no
other Borrower, that as of the date hereof and until such time as the
Obligations shall be paid and performed in full:

                                      35
<PAGE>

            (a)        None of Borrowers owns or will own any asset or
property other than (i) its respective Property and (ii) incidental personal
property necessary for the ownership or operation of such Property.

            (b)        None of Borrowers has engaged or will engage in any
business other than the ownership, management and operation of its respective
Property and each of Borrowers will conduct and operate its business as
presently conducted and operated.

            (c)        Borrower has not entered and will not enter into any
contract or agreement with any Affiliate of any Borrower, any constituent
party of any Borrower or any Affiliate of any constituent party, except upon
terms and conditions that are intrinsically fair and substantially similar to
those that would be available on an arms-length basis with third parties other
than any such party.

            (d)        Such Borrower has not incurred and will not incur any
Indebtedness other than (i) the Debt, and (ii) unsecured trade payables and
short term operational debt not evidenced by a note and in an aggregate
amount, including such trade payables and debt of any other Borrower, not
exceeding $5,000,000.00 in the aggregate at any one time; provided that any
Indebtedness incurred pursuant to subclause (ii) shall be (A) outstanding not
more than sixty (60) days, and (B) incurred in the ordinary course of business
(the Indebtedness described in the foregoing clauses (i) and (ii) is referred
to herein, collectively, as "Permitted Indebtedness"). No Indebtedness other
than the Debt may be secured (subordinate or pari passu) by any of the
Properties. Notwithstanding the foregoing, so long as no Event of Default
shall have occurred and remain uncured under this Agreement, Borrowers shall
be allowed to borrow Permitted Mezzanine Debt subsequent to the Closing Date;
provided that, prior to consummating any such proposed Permitted Mezzanine
Debt, (i) Borrowers shall provide written notice to Lender of any proposed
Permitted Mezzanine Debt financing, including a summary of the material terms
and conditions thereof, (ii) if the Loan has not been securitized, Borrowers
shall obtain Lender's prior written consent, which shall not be unreasonably
withheld or delayed, and if the Loan has been securitized, Borrowers shall
obtain a "No Downgrade" letter from the Rating Agencies, (iii) the holder of
such Permitted Mezzanine Debt shall enter into an intercreditor agreement with
Lender, reasonably satisfactory to Lender in form and substance, and (iv)
Borrowers shall provide Lender with true and complete copies of all loan
documents entered into in connection with any such Permitted Mezzanine Debt.
Nothing contained in this Agreement of the other Loan Documents shall be
deemed to prohibit any indirect owner of any Borrower from incurring
indebtedness; provided that any such indebtedness is not secured by any direct
interest in any of the Properties or any Borrower.

            (e)        Such Borrower has not made and will not make any loans
or advances to any third party (including any Affiliate or constituent party),
and has not and shall not acquire securities of its Affiliates.

            (f)        Such Borrower is and will remain solvent and, except as
contemplated by this Agreement wherein Borrowers are jointly and severally
liable, such Borrower will pay its debts and liabilities (including, as
applicable, shared personnel and overhead expenses) from its assets as the
same shall become due.

                                      36
<PAGE>

            (g)        Such Borrower has done or caused to be done, and will
do, all things necessary to observe organizational formalities and preserve
its existence, and such Borrower will not (i) terminate or fail to comply with
the provisions of its organizational documents, or (ii) unless (A) Lender has
consented and (B) following a Securitization of the Loan, the applicable
Rating Agencies have issued a Rating Agency Confirmation, amend, modify or
otherwise change its operating agreement or other organizational documents in
any material respect, provided that any amendment or modification to
provisions required to be included in Borrowers' organizational documents
pursuant to this Agreement shall be deemed material.

            (h)        Such Borrower will maintain separate books, records,
financial statements and bank accounts from those of its Affiliates and any
other Person. Such Borrower's assets will not be listed as assets on the
financial statement of any other Person, provided, however, that such
Borrower's assets may be included in a consolidated financial statement of its
Affiliates provided that appropriate notation shall be made on such
consolidated financial statements to indicate the separateness of such
Borrower. Such Borrower will file its own tax returns (to the extent such
Borrower is required to file any tax returns) and will not file a consolidated
federal income tax return with any other Person unless permitted or required
by applicable law or requirement. Such Borrower has maintained and shall
maintain its books, records, resolutions and agreements as official records.

            (i)        Such Borrower will be, and at all times will hold
itself out to the public as, a legal entity separate and distinct from any
other entity (including any Affiliate of such Borrower or any constituent
party of such Borrower), shall correct any known misunderstanding regarding
its status as a separate entity, shall conduct business in its own name.

            (j)        Such Borrower has maintained and intends to maintain
adequate capital for the normal obligations reasonably foreseeable in a
business of its size and character and in light of its contemplated business
operations.

            (k)        Neither such Borrower nor any constituent party will
seek or effect the liquidation, dissolution, winding up, consolidation, asset
sale or merger, in whole or in part, of such Borrower.

            (l)        Except as contemplated by this Agreement, wherein
Borrowers are jointly and severally liable, and further, pursuant to the
Clearing Account Agreement, such Borrower has not and will not commingle the
funds and other assets of such Borrower with those of any Affiliate or
constituent party or any other Person, and has held and will hold all of its
assets in its own name.

            (m)        Such Borrower has and will maintain its assets in such
a manner that it will not be costly or difficult to segregate, ascertain or
identify its individual assets from those of any Affiliate or constituent
party or any other Person.

            (n)        Except as contemplated by this Agreement, such Borrower
has not and will not assume or guarantee or become obligated for the debts of
any other Person and does not and will not hold itself out to be responsible
for or have its credit available to satisfy the debts or obligations of any
other Person.

                                      37
<PAGE>

            (o)        The organizational documents of such Borrower shall
provide that the business and affairs of such Borrower shall be managed by or
under the direction of a board of one or more directors or managers designated
by Sole Member, and at all times there shall be at least two (2) duly
appointed individuals on the board of directors or managers against Borrower
(each, an "Independent Director") of such Borrower who shall not have been at
the time of such individual's appointment or at any time (except pursuant to
an express provision in such Borrower's operating agreement providing for the
appointment of such Independent Director to become a "special member" upon
Sole Member ceasing to be a member of such Borrower) while serving as an
Independent Director, and may not have been at any time during the preceding
five (5) years (i) a stockholder, director (other than as an Independent
Director), officer, employee, partner, attorney or counsel of such Borrower,
any Affiliate of such Borrower or any direct or indirect parent of such
Borrower, except to the extent such Independent Director serves in such
capacity in respect of any other Borrower, (ii) a customer, supplier or other
Person who derives any of its purchases or revenues from its activities with
such Borrower or any Affiliate of such Borrower, (iii) a Person or other
entity Controlling or under common Control with any such stockholder, partner,
customer, supplier or other Person, or (iv) a member of the immediate family
of any such stockholder, director, officer, employee, partner, customer,
supplier or other Person.

            (p)        The organizational documents of such Borrower shall
provide that the board of directors or managers of such Borrower shall not
take any action which, under the terms of any certificate of formation,
limited liability company operating agreement or any voting trust agreement,
requires an unanimous vote of the board of directors or managers, including
the Independent Directors of such Borrower unless at the time of such action
there shall be at least two (2) members of the board of directors who are
Independent Directors (and such Independent Directors shall have participated
in such vote). Such Borrower will not without the unanimous written consent of
its board of directors including the Independent Directors (i) file or consent
to the filing of any petition, either voluntary or involuntary, to take
advantage of any applicable insolvency, bankruptcy, liquidation or
reorganization statute, (ii) seek or consent to the appointment of a receiver,
liquidator or any similar official, (iii) take any action that might cause
such entity to become insolvent, or (iv) make an assignment for the benefit of
creditors.

            (q)        The organizational documents of such Borrower shall
provide that, as long as any portion of the Obligations remains outstanding,
upon the occurrence of any event that causes Sole Member to cease to be a
member of such Borrower (other than (i) upon an assignment by Sole Member of
all of its limited liability company interest in such Borrower and the
admission of the transferee, if permitted pursuant to the organizational
documents of such Borrower and the Loan Documents, or (ii) the resignation of
Sole Member and the admission of an additional member of such Borrower, if
permitted pursuant to the organizational documents of such Borrower and the
Loan Documents), one of the persons acting as Independent Director of such
Borrower shall, without any action of any Person and simultaneously with Sole
Member ceasing to be a member of such Borrower, automatically be admitted as
the sole member of such Borrower (the "Special Member") and shall preserve and
continue the existence of such Borrower without dissolution. The
organizational documents of such Borrower shall further provide that for so
long as any portion of the Obligations is outstanding, no Special Member may
resign or transfer its rights as Special Member unless (i) a successor Special
Member has been

                                      38
<PAGE>

admitted to such Borrower as a Special Member, and (ii) such successor Special
Member has also accepted its appointment as an Independent Director.

            (r)        The organizational documents of such Borrower shall
provide that, as long as any portion of the Obligations remains outstanding,
except as expressly permitted pursuant to the terms of this Agreement, (i)
Sole Member may not resign, and (ii) no additional member shall be admitted to
such Borrower, except as contemplated in connection with a Joint Venture
Closing.

            (s)        The organizational documents of such Borrower shall
provide that, as long as any portion of the Obligations remains outstanding:
(i) such Borrower shall be dissolved, and its affairs shall be wound up, only
upon the first to occur of the following: (A) the termination of the legal
existence of the last remaining member of such Borrower or the occurrence of
any other event which terminates the continued membership of the last
remaining member of such Borrower in such Borrower unless the business of such
Borrower is continued in a manner permitted by its operating agreement or the
Delaware Limited Liability Company Act (the "Act"), or (B) the entry of a
decree of judicial dissolution under Section 18-802 of the Act; (ii) upon the
occurrence of any event that causes the last remaining member of such Borrower
to cease to be a member of such Borrower or that causes Sole Member to cease
to be a member of such Borrower (other than (A) upon an assignment by Sole
Member of all of its limited liability company interest in such Borrower and
the admission of the transferee, if permitted pursuant to the organizational
documents of such Borrower and the Loan Documents, or (B) the resignation of
Sole Member and the admission of an additional member of such Borrower, if
permitted pursuant to the organizational documents of such Borrower and the
Loan Documents), to the fullest extent permitted by law, the personal
representative of such last remaining member shall be authorized to, and
shall, within ninety (90) days after the occurrence of the event that
terminated the continued membership of such member in such Borrower, agree in
writing (I) to continue the existence of such Borrower, and (II) to the
admission of the personal representative or its nominee or designee, as the
case may be, as a substitute member of such Borrower, effective as of the
occurrence of the event that terminated the continued membership of such
member in such Borrower; (iii) the bankruptcy of Sole Member or a Special
Member shall not cause such Sole Member or Special Member, respectively, to
cease to be a member of such Borrower and upon the occurrence of such an
event, the business of such Borrower shall continue without dissolution; (iv)
in the event of the dissolution of such Borrower, such Borrower shall conduct
only such activities as are necessary to wind up its affairs (including the
sale of the assets of such Borrower in an orderly manner), and the assets of
such Borrower shall be applied in the manner, and in the order of priority,
set forth in Section 18-804 of the Act; and (v) to the fullest extent
permitted by law, each of Sole Member and the Special Member shall irrevocably
waive any right or power that they might have to cause such Borrower or any of
its assets to be partitioned, to cause the appointment of a receiver for all
or any portion of the assets of such Borrower, to compel any sale of all or
any portion of the assets of such Borrower pursuant to any applicable law or
to file a complaint or to institute any proceeding at law or in equity to
cause the dissolution, liquidation, winding up or termination of such
Borrower.

            (t)        Such Borrower shall conduct its business so that the
assumptions made with respect to such Borrower in the Insolvency Opinion shall
be true and correct in all respects. In connection with the foregoing, such
Borrower hereby covenants and agrees that it will comply

                                      39
<PAGE>

with or cause the compliance with, (i) all of the facts and assumptions
(whether regarding such Borrower or any other Person) set forth in the
Insolvency Opinion, (ii) all of the representations, warranties and covenants
in this Section 3.1.24, and (iii) all of the organizational documents of such
Borrower.

            (u)        Such Borrower will not permit any Affiliate or
constituent party, other than any other Borrower and other than Sole Member,
in its capacity as the manager of such Borrower, independent access to its
bank accounts.

            (v)        Such Borrower shall pay the salaries of its own
employees (if any) from its own funds and maintain a sufficient number of
employees (if any) in light of its contemplated business operations.

            (w)        Such Borrower shall compensate each of its consultants
and agents from its funds for services provided to it and pay from its own
assets all obligations of any kind incurred.

            (x)        Such Borrower has maintained and will maintain an
arm's-length relationship with its Affiliates.

            (y)        Except in connection with the Loan or the Permitted
Mezzanine Debt, such Borrower has not pledged and will not pledge its assets
for the benefit of any other Person.

            3.1.25     Tax Filings. To the extent required, each Borrower has
filed (or has obtained effective extensions for filing) all federal, state,
commonwealth, district and local tax returns required to be filed and has paid
or made adequate provision for the payment of all federal, state commonwealth,
district and local taxes, charges and assessments payable by such Borrower.
Each Borrower believes that its tax returns (if any) properly reflect the
income and taxes of such Borrower for the periods covered thereby, subject
only to adjustments required by the Internal Revenue Service or other
applicable tax authority upon audit.

            3.1.26     Solvency. None of Borrowers (i) has entered into the
transaction or any Loan Document with the actual intent to hinder, delay, or
defraud any creditor, and (ii) failed to receive reasonably equivalent value
in exchange for its Obligations under the Loan Documents. Giving effect to the
Loan, the fair saleable value of Borrowers' aggregate assets exceeds and will,
immediately following the making of the Loan, exceed Borrowers' aggregate
total liabilities, including subordinated, unliquidated, disputed and
contingent liabilities. The fair saleable value of Borrowers' aggregate assets
is, and immediately following the making of the Loan, will be, greater than
Borrowers' probable aggregate liabilities, including the maximum amount of its
contingent liabilities on its debts as such debts become absolute and matured.
Borrowers' aggregate assets do not and, immediately following the making of
the Loan will not, constitute unreasonably small capital to carry out its
business as conducted or as proposed to be conducted. None of Borrowers
intends to, and does not believe that it will, incur Indebtedness and
liabilities (including contingent liabilities and other commitments) beyond
its ability to pay such Indebtedness and liabilities as they mature (taking
into account the timing and amounts of cash to be received by such Borrower
and the amounts to be payable on or in respect of the obligations of such
Borrower).

                                      40
<PAGE>

            3.1.27     Federal Reserve Regulations. No part of the proceeds of
the Loan will be used for the purpose of purchasing or acquiring any "margin
stock" within the meaning of Regulation U of the Board of Governors of the
Federal Reserve System or for any other purpose which would be inconsistent
with such Regulation U or any other Regulations of such Board of Governors, or
for any purposes prohibited by Legal Requirements or by the terms and
conditions of this Agreement or the other Loan Documents.

            3.1.28     Organizational Chart and Status.

            (a)        The organizational chart attached as Schedule II,
relating to Borrowers and certain Affiliates and other parties, is true,
complete and correct on and as of the date hereof. No Person other than those
Persons shown on Schedule II have any ownership interest in, or right of
control, directly or indirectly, in any Borrower.

            (b)        Each Borrower is a Delaware limited liability company
and each Borrower's exact legal name, Tax I.D. number and Delaware
Organizational ID number are each set forth on Schedule III.

            3.1.29     Bank Holding Company. None of Borrowers is a "bank
holding company" or a direct or indirect subsidiary of a "bank holding
company" as defined in the Bank Holding Company Act of 1956, as amended, and
Regulation Y thereunder of the Board of Governors of the Federal Reserve
System.

            3.1.30     No Casualty. The Improvements have suffered no material
casualty or damage which has not been fully repaired and the cost thereof
fully paid.

            3.1.31     Purchase Options. None of the Properties nor any part
thereof are subject to any purchase options or other similar rights in favor
of third parties.

            3.1.32     FIRPTA. None of Borrowers is a "foreign person" within
the meaning of Sections 1445 or 7701 of the Code.

            3.1.33     PUHCA. None of Borrowers is a "holding company" or a
"subsidiary company" of a "holding company" or an "affiliate" of either a
"holding company" or a "subsidiary company", all as defined in the Public
Utility Holding Company Act of 1935, as amended.

            3.1.34     Investment Company Act. None of Borrowers is (i)
required to register as an "investment company" within the meaning of the
Investment Company Act of 1940, as amended, or (ii) subject to any other
United States federal or state law or regulation which purports to restrict or
regulate its ability to borrow money.

            3.1.35     Use of Property. The Property consists solely of office
uses and related operations and is used for no other purpose.

            3.1.36     Fiscal Year. The fiscal year of each Borrower commences
on January 1.

                                      41
<PAGE>

            3.1.37     No Other Financing. None of Borrowers has borrowed any
funds that have not heretofore been repaid in full, except for the Loan.

            3.1.38     Contracts.

            (a)        None of Borrowers has entered into, and is not bound
by, any Major Contract which continues in existence, except those previously
disclosed in writing to Lender.

            (b)        Each of the Major Contracts is in full force and
effect, there are no monetary or other material defaults by any Borrower
thereunder and, to the best knowledge of each Borrower, there are no monetary
or other material defaults thereunder by any other party thereto. None of
Borrowers, Manager or any other Person acting on any Borrower's behalf has
given or received any notice of default under any of the Major Contracts that
remains uncured or in dispute.

            (c)        Each Borrower has delivered true, correct and complete
copies of the Major Contracts (including all amendments and supplements
thereto) to which it is a party to Lender.

            (d)        Except for the Manager under the Management Agreements,
no Major Contract has as a party an Affiliate of any Borrower. All fees and
other compensation for services previously performed under the Management
Agreements have been paid in full.

            3.1.39     Full and Accurate Disclosure. No statement of fact made
by any Borrower in this Agreement or in any of the other Loan Documents
contains any untrue statement of a material fact or omits to state any
material fact necessary to make statements contained herein or therein not
misleading. There is no material fact presently known to any Borrower which
has not been disclosed to Lender which adversely affects, nor as far as any
Borrower can foresee, would adversely affect, the Property or the business,
operations or financial condition of any Borrower, other than with regard to
market risk inherent in projecting future operations.

            3.1.40     Other Obligations and Liabilities. None of Borrowers
has any liabilities or other obligations that arose or accrued prior to the
date hereof that, either individually or in the aggregate, could have a
material adverse effect on the financial condition of any Borrower.

      3.2   Survival of Representations.

      The representations and warranties set forth in Section 3.1 shall
survive until the Obligations have been paid and performed in full.

                                   ARTICLE 4
                             BORROWERS' COVENANTS
                             --------------------

      4.1   Borrowers' Affirmative Covenants.

      Each Borrower hereby covenants and agrees with Lender that throughout
the Term:

                                      42
<PAGE>

            4.1.1      Payment and Performance of Obligations. Borrowers shall
pay and otherwise perform the Obligations in accordance with the terms of this
Agreement and the other Loan Documents.

            4.1.2      Existence; Compliance with Legal Requirements. Each
Borrower and Sole Member shall do or cause to be done all things necessary to
preserve, renew and keep in full force and effect its existence, rights,
licenses, permits and franchises and comply with all Legal Requirements
applicable to it and the Properties. Notwithstanding the foregoing, after
prior notice to Lender, each Borrower, at its own expense, may suspend such
compliance and contest by appropriate legal proceeding, conducted in good
faith and with due diligence, the validity or applicability of any Legal
Requirements to such Borrower and the Property owned by such Borrower,
provided that (i) no Event of Default has occurred and remains uncured; (ii)
such proceeding shall be permitted under and be conducted in accordance with
all applicable statutes, laws and ordinances; (iii) the applicable Borrower
shall establish to Lender's reasonable satisfaction that neither the
applicable Property nor any part thereof or interest therein will be in danger
of being sold, forfeited, terminated, canceled, lost or subjected to any Lien
during the pursuit of such contest; and (iv) such Borrower shall promptly upon
final determination thereof comply with such resulting Legal Requirements, and
shall pay all costs, interest and penalties which may be payable in connection
therewith.

            4.1.3      Taxes and Other Charges. Borrowers shall pay all Taxes
and Other Charges now or hereafter levied, assessed or imposed as the same
become due and payable, and shall furnish to Lender receipts for the payment
of the Taxes prior to the date the same shall become delinquent (provided,
however, that Borrowers need not pay directly Taxes nor furnish such receipts
for payment of Taxes to the extent that funds to pay for such Taxes have been
deposited into the Tax Account pursuant to Section 6.2). Borrowers shall not
permit or suffer, and shall promptly discharge, any Lien (other than Permitted
Encumbrances) or charge against any of the Properties, and shall promptly pay
for all utility services provided to the Properties. After prior notice to
Lender, Borrowers, at their own expense, may contest by appropriate legal
proceeding, conducted in good faith and with due diligence, the amount or
validity of any Taxes or Other Charges, provided that (i) no Default or Event
of Default has occurred and remains uncured; (ii) such proceeding shall be
permitted under and be conducted in accordance with all applicable statutes,
laws and ordinances; (iii) none of the Properties nor any part thereof or
interest therein will be in danger of being sold, forfeited, terminated,
canceled or lost; (iv) Borrowers shall promptly upon final determination
thereof pay the amount of any such Taxes or Other Charges, together with all
costs, interest and penalties which may be payable in connection therewith;
(v) such proceeding shall suspend the collection of Taxes or Other Charges
from the Property or Properties that are the subject of such contest; and (vi)
Borrowers shall deposit with Lender cash, or other security as may be approved
by Lender, in an amount equal to one hundred twenty-five percent (125%) of the
contested amount, to insure the payment of any such Taxes or Other Charges,
together with all interest and penalties thereon. Lender may pay over any such
cash or other security held by Lender to the claimant entitled thereto at any
time when, in the reasonable judgment of Lender, the entitlement of such
claimant is established.

            4.1.4      Litigation. Each Borrower shall give prompt notice to
Lender of any litigation or governmental proceedings pending or threatened
against any Borrower, Sole Member, or any Guarantor which would materially
adversely affect any of the Properties or such

                                      43
<PAGE>

Borrowers', Sole Member's or such Guarantor's condition (financial or
otherwise) or business (including such Borrowers' ability to perform its
Obligations hereunder or under the other Loan Documents).

            4.1.5      Access to Properties. Borrowers shall permit agents,
representatives, consultants and employees of Lender to inspect the Properties
or any part thereof at reasonable hours upon reasonable advance written
notice, subject to the rights of Tenants under Leases.

            4.1.6      Further Assurances; Supplemental Mortgage Affidavits.
Borrowers shall, at Borrowers' sole cost and expense:

            (a)        execute and deliver to Lender such documents,
instruments, certificates, assignments and other writings, and do such other
acts necessary or desirable, to evidence, preserve and/or protect the
collateral at any time securing or intended to secure the Obligations, as
Lender may reasonably require; and

            (b)        do and execute all and such further lawful and
reasonable acts, conveyances and assurances for the better and more effective
carrying out of the intents and purposes of this Agreement and the other Loan
Documents, as Lender shall reasonably require from time to time.

            4.1.7      Financial Reporting.

            (a)        Borrowers shall keep and maintain or will cause to be
kept and maintained proper and accurate books and records, in accordance with
the cash basis method of accounting, reflecting the financial affairs of each
Borrower. Lender shall have the right from time to time during normal business
hours upon reasonable written notice to Borrowers to examine such books and
records at the respective office of each Borrower or other Person maintaining
such books and records and to make such copies or extracts thereof as Lender
shall desire. After an Event of Default, Borrowers shall pay any costs
incurred by Lender to examine such books, records and accounts, as Lender
shall determine to be necessary or appropriate in the protection of Lender's
interest.

            (b)        Each Borrower shall furnish Lender annually, within
ninety (90) days following the end of each Fiscal Year, a complete copy of
such Borrower's annual financial statements audited by an independent
certified public accountant reasonably acceptable to Lender prepared in
accordance with the cash basis method of accounting covering the Property
owned by such Borrower, including statements of income and expense and cash
flow for such Borrower and such Property owned by such Borrower and a balance
sheet for such Borrower. Such statements shall set forth Net Cash Flow, Gross
Revenue and Operating Expenses for the Property owned by such Borrower. Each
Borrower's annual financial statements shall be accompanied by (A) a current
rent roll the Property owned by such Borrower, and (B) an Officer's
Certificate from an Officer of such Borrower certifying that such annual
financial statement is true, correct, accurate and complete and fairly
presents the financial condition and the results of operations of such
Borrower and the Property owned by such Borrower, and (ii) whether to the best
of such Borrower's actual knowledge there exists an event or circumstance
which constitutes a Default or Event of Default by such Borrower under the
Loan Documents

                                      44
<PAGE>

and if such Default or Event of Default exists, the nature thereof, the period
of time it has existed and the action then being taken to remedy the same.

            (c)        Each Borrower will furnish Lender on or before the
forty-fifth (45th) day after the end of each calendar quarter throughout the
Term (excepting any fourth quarter), the following items, accompanied by an
Officer's Certificate of an Officer of such Borrower certifying that such
items, taken as a whole, present fairly in all material respects the
information set forth therein in a manner consistent with the cash basis
method of accounting, as applicable:

                       (i)    quarterly and year-to-date statements of income
      and expense and cash flow prepared on a cash basis for such quarter with
      respect to the Property owned by such Borrower, with a balance sheet for
      such quarter for such Borrower; and

                       (ii)   a current rent roll as of the end of the quarter
      for the Property owned by such Borrower.

            (d)        at any time that the Loan is not subject to a
Securitization, upon request of Lender, each Borrower will furnish Lender on
or before the thirtieth (30th) day after the end of each calendar month the
following items, accompanied by an Officer's Certificate of the Chief
Financial Officer of such Borrower certifying that such items are true,
correct, accurate and complete and fairly present the financial condition and
results of the operations of such Borrower and the Property owned by such
Borrower in a manner consistent with the cash method of accounting, as
applicable:

                       (i)    monthly and year-to-date statements of income
      and expense and cash flow prepared on a cash basis for such month with
      respect to the Property owned by such Borrower, with a balance sheet as
      of such month; and

                       (ii)   a current rent roll for the Property owned by
      such Borrower.

            (e)        Borrowers shall furnish to Lender, within five (5)
Business Days after written request (or as soon thereafter as may be
reasonably possible), such further detailed information with respect to the
operation of the Properties and/or the financial affairs of each Borrower as
may be reasonably requested by Lender, including a comparison of the budgeted
income and expenses and the actual income and expenses for a quarter and year
to date for the Properties, together with a detailed explanation of any
variances of more than ten percent (10%) or $5,000.00 between budgeted and
actual amounts for such period and year to date.

            4.1.8      Title to the Properties. Borrowers will warrant and
defend the validity and priority of the Liens of the Mortgage and the
Assignment of Leases on each of the Properties against the claims of all
Persons whomsoever, subject only to the Permitted Encumbrances.

            4.1.9      Estoppel Statement.

            (a)        After written request by Lender, Borrowers shall within
ten (10) Business Days furnish Lender with a statement, duly acknowledged and
certified, stating (i) the Outstanding Principal Balance of the Note, (ii) the
Interest Rate, (iii) the date installments of interest and/or principal were
last paid, (iv) any offsets or defenses to the payment and

                                      45
<PAGE>

performance of the Obligations, if any, and (v) that this Agreement and the
other Loan Documents have not been modified or if modified, giving particulars
of such modification.

            (b)        After request by Borrower, Lender shall within ten (10)
Business Days furnish Borrower with a statement, duly acknowledged and
certified, stating (i) the Outstanding Principal Balance, (ii) the Interest
Rate, (iii) the date installments of interest and/or principal were last paid
and (iv) whether or not Lender has sent any notice of default under the Loan
Documents which remains uncured in the opinion of Lender; provided Lender
shall not be required to deliver such certificates more than two (2) times
during the Term and not more frequently than once per calendar year.

            (c)        Borrowers shall deliver to Lender, upon written
request, an estoppel certificate from each Tenant under any Lease (provided
that Borrowers shall only be required to use commercially reasonable efforts
to obtain an estoppel certificate from any Tenant not required to provide an
estoppel certificate under its Lease); provided, that such certificate may be
in the form required under such Lease; and provided, further, that Borrowers
shall not be required to deliver such certificates more frequently than once
in any calendar year.

            4.1.10     Leases.

            (a)        All Leases and all renewals of Leases executed after
the date hereof shall (i) provide for economic terms, including rental rates,
substantially comparable to existing local market rates for similar
properties, (ii) be on commercially reasonable terms, (iii) if the Lease is
for less than a three (3) year term, provide for a tenant improvement
allowance that is reasonably proportional to the length of such Lease, (iv)
provide that such Lease is subordinate to the Mortgage and the Assignment of
Leases and that the Tenant thereunder will attorn to Lender and any purchaser
at a foreclosure sale, (v) be to Tenants that are creditworthy, (vi) not be to
an Affiliate of any Borrower or any Guarantor, and (vii) not contain any
option to purchase, any right of first refusal to purchase, any right to
terminate (except in the event of the destruction or condemnation of
substantially all of any Property), any requirement for a non-disturbance or
recognition agreement (except for a non-disturbance and attornment agreement
on Lender's standard form or such other form as is reasonably approved by
Lender), or any other terms which would materially adversely affect Lender's
rights under the Loan Documents. All Major Leases and all renewals, amendments
and modifications thereof executed after the date hereof shall be subject to
Lender's prior approval, which approval shall not, so long as no Event of
Default is continuing, be unreasonably withheld or delayed. Lender shall
execute and deliver its standard form of subordination, non-disturbance and
attornment agreement to Tenants under any future Major Lease approved by
Lender or for any Lease promptly upon request, with such commercially
reasonable changes as may be requested by such Tenants and which are
reasonably acceptable to Lender.

            (b)        Borrowers (i) shall observe and perform the obligations
imposed upon the lessor under the Leases in a commercially reasonable manner;
(ii) shall enforce the terms, covenants and conditions contained in the Leases
upon the part of the Tenants thereunder to be observed or performed in a
commercially reasonable manner; provided, however, that no Borrower shall
terminate or accept a surrender of a Major Lease without Lender's prior
approval; (iii) shall not collect any of the Rents more than one (1) month in
advance (other than security

                                      46
<PAGE>

deposits); (iv) shall not execute any assignment of lessor's interest in the
Leases or the Rents (except as contemplated by the Loan Documents); and (v)
shall not alter, modify or change any Major Lease so as to change the amount
of or payment date for rent, change the expiration date, grant any option for
additional space or term, materially reduce the obligations of the Tenant or
increase the obligations of the lessor. Upon request, Borrowers shall furnish
Lender with executed copies of all Leases.

            (c)        All security deposits of Tenants, whether held in cash
or any other form, shall not be commingled with any other funds of Borrowers
and, if cash, shall be deposited by Borrowers at a separately designated
account under Borrowers' control at the Clearing Bank. After the occurrence
and during the continuance of an Event of Default, Borrower shall, upon
Lender's request, if permitted by applicable Legal Requirements, cause all
such security deposits (and any interest theretofore earned thereon) to be
transferred into the Deposit Account (which shall then be held by Deposit Bank
in a separate Account), which shall be held by Deposit Bank subject to the
terms of the Leases. Any bond or other instrument which Borrowers are
permitted to hold in lieu of cash security deposits under any applicable Legal
Requirements shall (i) be maintained in full force and effect in the full
amount of such deposits unless replaced by cash deposits as herein above
described, and (ii) in all respects comply with any applicable Legal
Requirements and otherwise be satisfactory to Lender. Borrowers shall, upon
request, provide Lender with evidence satisfactory to Lender of Borrowers'
compliance with the foregoing.

            (d)        Notwithstanding anything to the contrary contained in
this Section 4.1.10:

                       (i)    (i) whenever Lender's approval or consent is
      required pursuant to the provisions of this Section 4.1.10, such
      Borrower requesting approval or consent shall have the right to submit a
      term sheet of such transaction to Lender for Lender's approval, such
      approval not to be unreasonably withheld or delayed. Any such term sheet
      submitted to Lender shall set forth all material terms of the proposed
      transaction, including identity of tenant, square footage, term, rent,
      rent credits, abatements, work allowances and tenant improvements to be
      constructed by such Borrower. Lender shall use good faith efforts to
      respond within ten (10) Business Days after Lender's receipt of such
      Borrower's written request for approval or consent of such term sheet.
      If Lender fails to respond to such request within ten (10) Business
      Days, and such Borrower sends a second request containing a legend
      clearly marked in not less than fourteen (14) point bold face type,
      underlined, in all capital letters "REQUEST DEEMED APPROVED IF NO
      RESPONSE WITHIN TEN (10) BUSINESS DAYS", Lender shall be deemed to have
      approved or consented to such term sheet if Lender fails to respond to
      such second written request before the expiration of such ten (10)
      Business Day period;

                       (ii)   whenever Lender's approval or consent is
      required pursuant to the provisions of this Section 4.1.10 for any
      matter with respect to which Lender has not previously approved a term
      sheet pursuant to Section 4.1.10(d)(i) above, Lender shall use good
      faith efforts to respond within ten (10) Business Days after Lender's
      receipt of any such Borrower's written request for such approval or
      consent. If Lender fails to respond to such request within ten (10)
      Business Days, and such Borrower sends a second request containing a
      legend clearly marked in not less than fourteen (14) point bold face
      type, underlined, in all capital letters "REQUEST DEEMED APPROVED IF NO

                                      47
<PAGE>

      RESPONSE WITHIN TEN (10) BUSINESS DAYS", Lender shall be deemed to have
      approved or consented to such matter if Lender fails to respond to such
      second written request before the expiration of such ten (10) Business
      Day period;

                       (iii)  whenever Lender's approval or consent is
      required pursuant to the provisions of this Section 4.1.10 for any
      matter that Lender has previously approved a term sheet pursuant to
      Section 4.1.10(d)(i) above, Lender shall use good faith efforts to
      respond within five (5) Business Days after Lender's receipt of any such
      Borrower's written request for such approval or consent. If Lender fails
      to respond to such request within five (5) Business Days, and such
      Borrower sends a second request containing a legend clearly marked in
      not less than fourteen (14) point bold face type, underlined, in all
      capital letters "REQUEST DEEMED APPROVED IF NO RESPONSE WITHIN FIVE (5)
      BUSINESS DAYS", Lender shall be deemed to have approved or consented to
      such matter if Lender fails to respond to such second written request
      before the expiration of such five (5) Business Day period, provided
      that there have been no material deviations from the term sheet and that
      the aggregate economics of the transaction are no less favorable to
      Borrower than as set forth in the term sheet; and

                       (iv)   in the event that Lender shall have approved (or
      be deemed to have approved) a term sheet submitted by any such Borrower
      with respect to a certain Lease, Lender shall not withhold its approval
      or consent with respect to such Lease on the basis of any provisions of
      such Lease dealing with the items contained in the approved term sheet.

            (e)        Borrowers shall have the right, without the consent or
approval of Lender in any instance, to terminate, modify, amend, restate or
accept a surrender of any Lease that is not a Major Lease.

            4.1.11     Alterations. Lender's prior approval shall be required
in connection with any alterations to any Improvements (i) that may have a
material adverse effect on Borrowers' financial condition, the value of any
Property or the ongoing revenues and expenses of any Property, or (ii) the
cost of which (including any related alteration, improvement or replacement)
is reasonably anticipated to exceed the Alteration Threshold (either of the
foregoing, a "Material Alteration"). Notwithstanding the foregoing, Lender's
prior approval shall not be required in connection with tenant improvement
work performed pursuant to Leases.

            4.1.12     Approval of Major Contracts. Borrowers shall be
required to obtain Lender's prior written approval of any and all Major
Contracts affecting the Properties, which approval may be granted or withheld
in Lender's sole discretion.

            4.1.13     After Acquired Property. Borrowers will grant to Lender
a first Lien security interest in and to all equipment and other personal
property owned by Borrowers, whether or not used in the construction,
maintenance and/or operation of the Improvements, immediately upon acquisition
of same or any part of same.

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<PAGE>

            4.1.14     Patriot Act Compliance.

            (a)        Each Borrower will use its good faith and commercially
reasonable efforts to comply with the Patriot Act and all applicable
requirements of Governmental Authorities having jurisdiction over such
Borrower and/or such Property, including those relating to money laundering
and terrorism. Lender, at Lender's cost, shall have the right to audit each
Borrower's compliance with the Patriot Act and all applicable requirements of
Governmental Authorities having jurisdiction over such Borrower and/or such
Property, including those relating to money laundering and terrorism. In the
event that Borrowers fail to comply with the Patriot Act or any such
requirements of Governmental Authorities, then Lender may, at its option,
cause Borrowers to comply therewith and any and all actual, out-of-pocket
costs and expenses incurred by Lender in connection therewith shall be secured
by the Mortgage and the other Loan Documents and shall be immediately due and
payable.

            (b)        None of Borrowers nor to Borrowers' actual knowledge,
any owner of a direct or indirect interest in any Borrower (i) is listed on
any Government Lists, (ii) is a person who has been determined by competent
authority to be subject to the prohibitions contained in Presidential
Executive Order No. 13224 (Sept. 23, 2001) or any other similar prohibitions
contained in the rules and regulations of OFAC or in any enabling legislation
or other Presidential Executive Orders in respect thereof, (iii) has been
previously indicted for or convicted of any felony involving a crime or crimes
of moral turpitude or for any Patriot Act Offense, or (iv) is currently under
investigation by any Governmental Authority for alleged criminal activity. For
purposes hereof, the term "Patriot Act Offense" means any violation of the
criminal laws of the United States of America or of any of the several states,
or that would be a criminal violation if committed within the jurisdiction of
the United States of America or any of the several states, relating to
terrorism or the laundering of monetary instruments, including any offense
under (A) the criminal laws against terrorism; (B) the criminal laws against
money laundering, (C) the Bank Secrecy Act, as amended, (D) the Money
Laundering Control Act of 1986, as amended, or (E) the Patriot Act. "Patriot
Act Offense" also includes the crimes of conspiracy to commit, or aiding and
abetting another to commit, a Patriot Act Offense. For purposes hereof, the
term "Government Lists" means (1) the Specially Designated Nationals and
Blocked Persons Lists maintained by the Office of Foreign Assets Control
("OFAC"), (2) any other list of terrorists, terrorist organizations or
narcotics traffickers maintained pursuant to any of the Rules and Regulations
of OFAC that Lender notified Borrowers in writing is now included in
"Government Lists", or (3) any similar lists maintained by the United States
Department of State, the United States Department of Commerce or any other
Government Authority or pursuant to any Executive Order of the President of
the United States of America that Lender notified Borrowers in writing is now
included in "Government Lists".

      4.2   Borrowers' Negative Covenants.

      Each Borrower covenants and agrees with Lender that throughout the Term:

            4.2.1      Due on Sale and Encumbrance; Transfers of Interests.
Without the prior written consent of Lender, but, in each instance, subject to
the provisions of Article 8, and except for any Permitted Transfer, none of
Borrowers nor Sole Member nor any other Person having a direct or indirect
ownership or beneficial interest in any Borrower or Sole Member shall sell,

                                      49
<PAGE>

convey, mortgage, grant, bargain, encumber, pledge, assign or transfer any
Property or any part thereof, or any interest, direct or indirect, in any
Borrowers, Sole Member, whether voluntarily or involuntarily (a "Transfer"). A
Transfer within the meaning of this Section 4.2.1 shall be deemed to include
(i) an installment sales agreement wherein any Borrower agrees to sell any
Property or any part thereof for a price to be paid in installments; (ii) an
agreement by any Borrower for the leasing of all or a substantial part of any
Property for any purpose other than the actual occupancy by a space tenant
thereunder or a sale, assignment or other transfer of, or the grant of a
security interest in, Borrowers' right, title and interest in and to any
Leases or any Rents; (iii) if any Borrower, Guarantor or any general partner,
managing member or controlling shareholder of any Borrower or Guarantor is a
corporation, the voluntary or involuntary sale, conveyance or transfer of such
corporation's stock (or the stock of any corporation directly or indirectly
controlling such corporation by operation of law or otherwise) or the creation
or issuance of new stock in one or a series of transactions by which an
aggregate of more than ten percent (10%) of such corporation's stock shall be
vested in a party or parties who are not now stockholders or any change in the
control of such corporation; (iv) if any Borrower, Sole Member, any Guarantor
or any general partner, managing member or controlling shareholder of any
Borrower, Sole Member or any Guarantor is a limited or general partnership,
joint venture or limited liability company, the change, removal, resignation
or addition of a general partner, managing partner, limited partner, joint
venturer or member or the transfer of the partnership interest of any general
partner, managing partner or limited partner or the transfer of the interest
of any joint venturer or member; and (v) any pledge, hypothecation,
assignment, transfer or other encumbrance of any direct or indirect ownership
interest in any Borrower or Sole Member.

            4.2.2      Liens. No Borrower shall create, incur, assume or
permit to exist any Lien on any direct or indirect interest in any Borrower or
Sole Member or any portion of any of the Properties, except for (i) the
Permitted Encumbrances, (ii) the Permitted Mezzanine Financing and (iii) any
Liens which such Borrower has the right to contest and which such Borrower is
contesting in accordance with this Agreement.

            4.2.3      Dissolution. No Borrower shall (i) engage in any
dissolution, liquidation or consolidation or merger with or into any other
business entity, (ii) engage in any business activity not related to the
ownership and operation of the Properties, (iii) transfer, lease or sell, in
one transaction or any combination of transactions, all or substantially all
of the property or assets of any Borrower except to the extent expressly
permitted by the Loan Documents, or (iv) cause, permit or suffer Sole Member
to (A) dissolve, wind up or liquidate or take any action, or omit to take any
action, as a result of which such Sole Member would be dissolved, wound up or
liquidated in whole or in part, or (B) amend, modify, waive or terminate the
operating agreement of Sole Member, in each case without obtaining the prior
consent of Lender.

            4.2.4      Change in Business. No Borrower shall enter into any
line of business other than the ownership and operation of its respective
Property. No Borrower shall change the current use of the Properties in any
material respect.

            4.2.5      Debt Cancellation. No Borrower shall cancel or
otherwise forgive or release any claim or debt (other than the termination of
Leases in accordance herewith) owed to any Borrower by any Person, except for
adequate consideration and in the ordinary course of such Borrower's business.

                                      50
<PAGE>

            4.2.6      Affiliate Transactions. No Borrower shall enter into,
or be a party to, any transaction with an Affiliate of any Borrower or any of
the partners, members or shareholders, as applicable, of any Borrower except
in the ordinary course of business and on terms which are fully disclosed to
Lender in advance and are no less favorable to any Borrower or such Affiliate
than would be obtained in a comparable arm's-length transaction with an
unrelated third party. Notwithstanding any contrary or inconsistent provision
contained in this Agreement or any of the other Loan Documents, Lender hereby
consents to the Existing Affiliate Contracts and acknowledges that the
existence and continuing effectiveness of the foregoing agreements (and either
of them) does not and shall not constitute a default, Default or Event of
Default under the provisions of this Agreement or any other Loan Document.

            4.2.7      Zoning. No Borrower shall initiate or consent to any
zoning reclassification of any portion of any of the Properties or seek any
variance under any existing zoning ordinance or use or permit the use of any
portion of any of the Properties in any manner that could result in such use
becoming a non-conforming use under any zoning ordinance or any other
applicable land use law, rule or regulation, without the prior consent of
Lender.

            4.2.8      Assets. No Borrower shall purchase or own any property
other than the Property it currently owns and any property necessary or
incidental for the operation of such Property.

            4.2.9      No Joint Assessment. No Borrower shall suffer, permit
or initiate the joint assessment of any of the Properties (i) with each other,
(ii) with any other real property constituting a tax lot separate from any of
the Properties, and (iii) with any portion of any Property which may be deemed
to constitute personal property, or any other procedure whereby the Lien of
any taxes which may be levied against such personal property shall be assessed
or levied or charged to any Property.

            4.2.10     Principal Place of Business. No Borrower shall change
its principal place of business from the address set forth on the first page
of this Agreement without first giving Lender thirty (30) days prior written
notice.

            4.2.11     Change of Name, Identity or Structure. No Borrower
shall change such Borrower's name, identity (including its trade name or
names) or, if not an individual, such Borrower's corporate, partnership or
other structure without notifying Lender of such change in writing at least
fifteen (15) days prior to the effective date of such change and, in the case
of a change in such Borrower's structure, without first obtaining the prior
written consent of Lender, which consent shall not be unreasonably withheld.
Each Borrower shall execute and deliver to Lender, prior to or
contemporaneously with the effective date of any such change, any financing
statement or financing statement change required by Lender to establish or
maintain the validity, perfection and priority of the security interest
granted herein. At the request of Lender, each Borrower shall execute a
certificate in form satisfactory to Lender listing the trade names under which
such Borrower intends to operate such Property, and representing and
warranting that such Borrower does business under no other trade name with
respect to such Property.

            4.2.12     Special Purpose. Without in any way limiting the
provisions of this Article 4, no Borrower shall take or permit any action that
would result in any Borrower or Sole

                                      51
<PAGE>

Member not being in compliance with the representations, warranties and
covenants set forth in Section 3.1.24.

            4.2.13     ERISA.

            (a)        No Borrower shall engage in any transaction which would
cause any obligation, or action taken or to be taken, hereunder (or the
exercise by Lender of any of its rights under the Note, this Agreement or the
other Loan Documents) to be a non-exempt (under a statutory or administrative
class exemption) prohibited transaction under the Employee Retirement Income
Security Act of 1974, as amended ("ERISA").

            (b)        Each Borrower shall deliver to Lender such
certifications or other evidence from time to time throughout the Term, as
requested by Lender in its sole discretion, that (A) such Borrower is not and
does not maintain an "employee benefit plan" as defined in Section 3(3) of
ERISA, which is subject to Title I of ERISA, or a "governmental plan" within
the meaning of Section 3(3) of ERISA; (B) such Borrower is not subject to
state statutes regulating investments and fiduciary obligations with respect
to governmental plans; and (C) one or more of the following circumstances is
true:

                       (i)    Equity interests in such Borrower are publicly
      offered securities, within the meaning of 29 C.F.R ss.2510.3-101(b)(2);

                       (ii)   Less than twenty-five percent (25%) of each
      outstanding class of equity interests in such Borrower are held by
      "benefit plan investors" within the meaning of 29 C.F.R
      ss.2510.3-101(f)(2); or

                       (iii)  Such Borrower qualifies as an "operating
      company" or a "real estate operating company" within the meaning of 29
      C.F.R ss.2510.3-101(c) or (e).

            4.2.14     Compliance with Restrictive Covenants, Etc. No Borrower
will modify, waive in any material respect or release any Easements,
restrictive covenants or other Permitted Encumbrances, or suffer, consent to
or permit the foregoing, without Lender's prior written consent, which consent
shall not be unreasonably withheld or delayed.

            4.2.15     Embargoed Person. At all times throughout the term of
the Loan, including after giving effect to any Transfers permitted pursuant to
the Loan Documents, (a) none of the funds or other assets of any Borrower or
Guarantor shall constitute property of, or shall be beneficially owned,
directly or indirectly, by any Person subject to trade restrictions under
United States law, including, but not limited to, the International Emergency
Economic Powers Act, 50 U.S.C. ss.ss. 1701 et seq., The Trading with the Enemy
Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations
promulgated thereunder, with the result that the investment in any Borrower or
Guarantor, as applicable (whether directly or indirectly), would be prohibited
by law (each, an "Embargoed Person"), or the Loan made by Lender would be in
violation of law, (b) no Embargoed Person shall have any interest of any
nature whatsoever in any Borrower or Guarantor, as applicable, with the result
that the investment in any Borrower or Guarantor, as applicable (whether
directly or indirectly), would be prohibited by law or the Loan would be in
violation of law, and (c) none of the funds of any Borrower or Guarantor, as
applicable, shall be derived from any unlawful activity with the result that
the investment in any

                                      52
<PAGE>

Borrower or Guarantor, as applicable (whether directly or indirectly), would
be prohibited by law or the Loan would be in violation of law.

                                   ARTICLE 5
                     INSURANCE, CASUALTY AND CONDEMNATION
                     ------------------------------------

      5.1   Insurance.

            5.1.1      Insurance Policies.

            (a)        Borrowers, at their sole cost and expense, shall obtain
and maintain during the entire Term, or cause to be maintained, insurance
policies for each Borrower and each Property providing at least the following
coverages:

                       (i)    Casualty insurance against loss or damage by
      fire, lightning and such other perils as are included in a standard
      "special form" policy (formerly known as an "all-risk" endorsement
      policy), and against loss or damage by all other risks and hazards
      covered by a standard extended coverage insurance policy, including riot
      and civil commotion, vandalism, malicious mischief, burglary and theft
      (A) in an amount equal to one hundred percent (100%) of the "Full
      Replacement Cost" of such Property, which for purposes of this Agreement
      shall mean actual replacement value (exclusive of costs of excavations,
      foundations, underground utilities and footings) with a waiver of
      depreciation; (B) containing an agreed amount endorsement with respect
      to the Improvements and personal property at such Property waiving all
      co-insurance provisions; (C) providing for no deductible in excess of
      the lesser of Fifty Thousand and No/100 Dollars ($50,000.00) and five
      percent (5%) of the Net Cash Flow for all such insurance coverage; and
      (D) containing an "Ordinance or Law Coverage" or "Enforcement"
      endorsement if any of the Improvements or the use of such Property shall
      at any time constitute legal non-conforming structures or uses, and
      compensating for loss of value or property resulting from operation of
      law and the cost of demolition and the increased cost of construction in
      such amounts as required by Lender. In addition, each Borrower shall
      obtain: (y) if any portion of the Improvements is currently or at any
      time in the future located in a federally designated "special flood
      hazard area", flood hazard insurance in an amount equal to the lesser of
      (1) the Outstanding Principal Balance or (2) the maximum amount of such
      insurance available under the National Flood Insurance Act of 1968, the
      Flood Disaster Protection Act of 1973 or the National Flood Insurance
      Reform Act of 1994, as each may be amended, or such greater amount as
      Lender shall require; and (z) earthquake insurance in amounts and in
      form and substance satisfactory to Lender in the event such Property is
      located in an area that is an earthquake zone 3 or zone 4, provided that
      the insurance pursuant to clauses (y) and (z) hereof shall be on terms
      consistent with the comprehensive all risk insurance policy required
      under this subsection (i); and provided, further, that the insurance
      pursuant to clause (z) shall be provided by an insurance carrier
      acceptable to Lender and pursuant to a policy in form and substance
      acceptable to Lender and in an amount equal to the greatest of (A) full
      replacement cost (without deduction for depreciation), or (B) such
      amount as would not cause the insurer to deem any Borrower to be a
      co-insurer under said policy;

                                      53
<PAGE>

                       (ii)   Commercial general liability insurance,
      including comprehensive coverages against claims for personal injury,
      bodily injury, death or property damage occurring upon, in or about such
      Property, such insurance (A) to be on the so-called "occurrence" form
      and containing minimum limits per occurrence of One Million and No/100
      Dollars ($1,000,000.00), with a combined limit per policy year,
      excluding umbrella coverage, of not less than Two Million and No/100
      Dollars ($2,000,000.00); (B) to continue at not less than the aforesaid
      limit until required to be changed by Lender by reason of changed
      economic conditions making such protection inadequate; and (C) to cover
      at least the following hazards: (1) premises and operations; (2)
      products and completed operations on an "if any" basis; (3) independent
      contractors; (4) contractual liability for all insured contracts; and
      (5) contractual liability covering the indemnities contained in Article
      9 of the Mortgage to the extent the same is available;

                       (iii)  rental loss and/or business income interruption
      insurance (A) with loss payable to Lender; (B) covering all risks
      required to be covered by the insurance provided for in subsection (i)
      above and Section 5.1.1(h) below; (C) covering a period of restoration
      of eighteen (18) months and containing an extended period of indemnity
      endorsement which provides that after the physical loss to the
      Improvements and Personal Property has been repaired, the continued loss
      of income will be insured until such income either returns to the same
      level it was at prior to the loss, or the expiration of twelve (12)
      months from the date that such Property is repaired or replaced and
      operations are resumed, whichever first occurs, and notwithstanding that
      the policy may expire prior to the end of such period; and (D) in an
      amount equal to one hundred percent (100%) of the projected Gross
      Revenue from such Property for a period of thirty (30) months from the
      date that such Property is repaired or replaced and operations are
      resumed. The amount of such business income insurance shall be
      determined prior to the date hereof and at least once each year
      thereafter based on such Borrower's reasonable estimate of the Gross
      Revenue from such Property for the succeeding thirty (30) month period.
      All proceeds payable to Lender pursuant to this subsection shall be held
      by Lender and shall be applied to the Obligations secured by the Loan
      Documents from time to time due and payable hereunder and under the
      Note; provided, however, that nothing herein contained shall be deemed
      to relieve Borrowers of their Obligations to pay the Debt on the
      respective dates of payment provided for in the Note and the other Loan
      Documents except to the extent such amounts are actually paid out of the
      proceeds of such business income insurance;

                       (iv)   at all times during which structural
      construction, repairs or alterations are being made with respect to the
      Improvements, and only if such Property coverage form does not otherwise
      apply, (A) owner's contingent or protective liability insurance covering
      claims not covered by or under the terms or provisions of the
      above-mentioned commercial general liability insurance policy; and (B)
      the insurance provided for in subsection (i) above written in a
      so-called builder's risk completed value form (1) on a non-reporting
      basis, (2) against all risks insured against pursuant to subsection (i)
      above, (3) including permission to occupy such Property, and (4) with an
      agreed amount endorsement waiving co-insurance provisions;

                                      54
<PAGE>

                       (v)    workers' compensation, subject to the statutory
      limits of the state or commonwealth in which such Property is located,
      and employer's liability insurance with limits which are required from
      time to time by Lender in respect of any work or operations on or about
      such Property, or in connection with such Property or its operation (if
      applicable);

                       (vi)   comprehensive boiler and machinery insurance, if
      applicable, in amounts as shall be reasonably required by Lender on
      terms consistent with the commercial property insurance policy required
      under subsection (i) above;

                       (vii)  umbrella liability insurance in addition to
      primary coverage in an amount not less than Fifty Million and 00/100
      Dollars ($50,000,000.00) per occurrence on terms consistent with the
      commercial general liability insurance policy required under subsection
      (ii) above and (viii) below;

                       (viii) motor vehicle liability coverage for all owned
      and non-owned vehicles, including rented and leased vehicles containing
      minimum limits per occurrence, including umbrella coverage, with limits
      which are required from time to time by Lender;

                       (ix)   windstorm insurance in an amount equal to one
      hundred percent (100%) of the "Full Replacement Cost" of such Property;

                       (x)    insurance against employee dishonesty in an
      amount not less than one (1) month of Gross Revenue from such Property
      and with a deductible not greater than Ten Thousand and No/100 Dollars
      ($10,000.00); and

                       (xi)   upon sixty (60) days' notice, such other
      reasonable insurance and in such reasonable amounts as Lender from time
      to time may reasonably request against such other insurable hazards
      which at the time are commonly insured against for properties similar to
      such Property located in or around the region in which such Property is
      located.

            (b)        All insurance provided for in Section 5.1.1(a) shall be
obtained under valid and enforceable policies (collectively, the "Policies" or
in the singular, the "Policy") and shall be subject to the reasonable approval
of Lender as to form and substance, including deductibles, loss payees and
insureds. Not less than ten (10) days prior to the expiration dates of the
Policies theretofore furnished to Lender, certificates of insurance evidencing
the Policies accompanied by evidence satisfactory to Lender of payment of the
premiums then due thereunder (the "Insurance Premiums"), shall be delivered by
Borrowers to Lender.

            (c)        Any blanket insurance Policy shall specifically
allocate to each Property the amount of coverage from time to time required
hereunder and shall otherwise provide the same protection as would a separate
Policy insuring only a single Property in compliance with the provisions of
Section 5.1.1(a).

            (d)        All Policies of insurance provided for or contemplated
by Section 5.1.1(a), except for the Policy referenced in Section 5.1.1(a)(v),
shall name the appropriate Borrower or Borrowers as the insured and Lender and
its successors and/or assigns as the additional insured,

                                      55
<PAGE>

as its interests may appear, and in the case of property damage, boiler and
machinery, flood and earthquake insurance, shall contain a so-called New York
standard non-contributing mortgagee clause in favor of Lender providing that
the loss thereunder shall be payable to Lender. Additionally, if any Borrower
obtains property insurance coverage in addition to or in excess of that
required by Section 5.1.1(a)(i), then such insurance policies shall also
contain a so-called New York standard non-contributing mortgagee clause in
favor of Lender providing that the loss thereunder shall be payable to Lender.

            (e)        All Policies of insurance provided for in Section
5.1.1(a), except for the Policies referenced in Section 5.1.1(a)(v) and
(a)(viii) shall contain clauses or endorsements to the effect that:

                       (i)    no act or negligence of any Borrower, or anyone
      acting for any Borrower, or of any Tenant or other occupant, or failure
      to comply with the provisions of any Policy, which might otherwise
      result in a forfeiture of the insurance or any part thereof, shall in
      any way affect the validity or enforceability of the insurance insofar
      as Lender is concerned;

                       (ii)   the Policy shall not be canceled without at
      least thirty (30) days' written notice to Lender and any other party
      named therein as an additional insured and, if obtainable by any
      Borrower using commercially reasonable efforts, shall not be materially
      changed (other than to increase the coverage provided thereby) without
      such a thirty (30) day notice or, in the case of cancellation for
      non-payment of any premium, ten (10) days; and

                       (iii)  Lender shall not be liable for any Insurance
      Premiums thereon or subject to any assessments thereunder.

            (f)        If at any time Lender is not in receipt of written
evidence that all insurance required hereunder is in full force and effect,
Lender shall have the right, without notice to any Borrower, to take such
action as Lender deems necessary to protect its interest in the Properties,
including the obtaining of such insurance coverage as Lender in its sole
discretion deems appropriate and all premiums incurred by Lender in connection
with such action or in obtaining such insurance and keeping it in effect shall
be paid by Borrowers to Lender upon demand and until paid shall be secured by
the Mortgage and shall bear interest at the Default Rate.

            (g)        In the event of foreclosure of the Mortgage or other
transfer of title to any of the Properties in extinguishment in whole or in
part of the Obligations, all right, title and interest of Borrowers in and to
the Policies that are not blanket Policies then in force concerning any of the
Properties and all proceeds payable thereunder shall thereupon vest in the
purchaser at such foreclosure or Lender or other transferee in the event of
such other transfer of title.

            (h)        Notwithstanding anything in this Agreement to the
contrary, Borrowers shall be required to obtain and maintain either (i) the
Policies described in Section 5.1.1(a)(i), (ii), (iii), (vi) and (vii) (the
"Non-Exclusion Policies") which do not contain exclusions for loss, cost,
damage or liability caused by "terrorism" or "terrorist acts" (a "Terrorism
Exclusion"), either foreign or domestic, no matter how defined in the
Non-Exclusion Policies, or (ii) in the

                                      56
<PAGE>

event Borrower cannot obtain Non-Exclusion Policies which do not contain a
Terrorism Exclusion, one or more blanket terrorism Policies (the "Blanket
Terrorism Policies") covering the full amount of the loss, cost, damage or
liability excluded by the applicable Terrorism Exclusion to the extent such
coverage is available to Borrowers (or their Affiliates), which Blanket
Terrorism Policies (i) have a per occurrence limit of not less than
$60,000,000.00 in respect of such terrorism coverage and an aggregate limit
acceptable to Lender considering the Properties insured under the Blanket
Terrorism Policies, (ii) provide the same protection as would Single Site
Terrorism Policies (as defined herein) in respect of each of the Properties,
(iii) are otherwise in form and substance reasonably satisfactory to Lender,
and (iv) may cover the Properties together with other properties owned by
Affiliates of Borrowers or the Properties alone. If Borrowers are unable to
obtain or maintain such Blanket Terrorism Policies on the conditions set forth
above, then each Borrower shall obtain and maintain a separate Policy covering
the full amount of the loss, cost, damage or liability excluded by the
applicable Terrorism Exclusion to the extent such coverage is available to
such Borrower (or its Affiliate), but only in respect of the Property owned by
such Borrower (collectively, the "Single Site Terrorism Policies"; and either
the Blanket Terrorism Policies or the Single Site Terrorism Policies, as
applicable, each a "Terrorism Policy", and collectively, the "Terrorism
Policies" ) which Single Site Terrorism Policies (i) provide for annual
insurance premiums which, in the aggregate, do not exceed the Terrorism
Insurance Cap, and (ii) are otherwise in form and substance reasonably
satisfactory to Lender. All Terrorism Policies shall be from a carrier which
otherwise satisfies the rating criteria specified in Section 5.1.2 (a
"Qualified Carrier") or, in the event that any such Terrorism Policy is not
available to any Borrower or its Affiliate from a Qualified Carrier, such
Borrower shall obtain such Terrorism Policy from the highest rated insurance
company, if any, offering such Terrorism Policy to such Borrower, subject to
the Terrorism Insurance Cap. Borrowers shall not be required to incur costs
(i) for the Single Site Terrorism Policies that are in excess of 150% of cost
of all Non-Exclusion Policies for each Property in the aggregate, or (ii) for
the Blanket Terrorism Policies that are in excess of 150% of cost of all
Non-Exclusion Policies for each of the Properties, in the aggregate], in
either case in respect of the annual policy period (inclusive of all premium
costs, fees and other amounts charged by the Insurer in connection with such
Terrorism Policy throughout the Policy year) (in either event, the "Terrorism
Insurance Cap"). In the event that the annual premiums for the Terrorism
Policies exceed, in the aggregate, the Terrorism Insurance Cap, Borrowers
shall be required to obtain and maintain Terrorism Policies to the extent the
same are available to Borrowers, which provide coverage for as much of the
loss, cost, damage or liability excluded by the applicable Terrorism Exclusion
as is available at a cost equal to the Terrorism Insurance Cap.

            (i)        Borrowers shall deliver a copy of the issued
Environmental Policy to Lender in the form of the specimen policy previously
delivered to Lender as soon as reasonably practicable (and Borrowers shall
diligently pursue obtaining such Environmental Policy) and shall at all times
during the term hereof maintain the Environmental Policy in full force and
effect in accordance with the terms thereof. Borrowers represent and warrant
that all premiums in respect of the Environmental Policy have been paid in
full.

            5.1.2      Insurance Company. All Policies required pursuant to
Section 5.1.1 (i) shall be issued by companies licensed to do business in the
state or commonwealth where the Properties are located, with a financial
strength and claims paying ability rating of at least A:X from A.M. Best
Company and "A" or better by S&P and the equivalent rating by at least one

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<PAGE>

other Rating Agency; (ii) shall, with respect to all property insurance
policies, name Lender and its successors and/or assigns as their interest may
appear as the Lender and Mortgagee; (iii) shall, with respect to all property
insurance policies and rental loss and/or business interruption insurance
policies, contain a Standard Mortgagee Clause and a Lender's Loss Payable
Endorsement, or their equivalents, naming Lender as the person to whom all
payments made by such insurance company shall be paid; (iv) shall, with
respect to all liability policies, name Lender and its successors and/or
assigns as an additional insured; (v) shall contain a waiver of subrogation
against Lender; (vi) shall contain such provisions as Lender deems reasonably
necessary or desirable to protect its interest including endorsements
providing that none of Borrowers, Lender nor any other party shall be a
co-insurer under said Policies and that Lender shall receive at least thirty
(30) days prior written notice of any modification, reduction or cancellation
or, in the case of cancellation for non-payment of any premium, ten (10) days;
and (vii) shall be satisfactory in form and substance to Lender and shall be
approved by Lender as to amounts, form, risk coverage, deductibles, loss
payees and insureds. Certified copies of the Policies shall be delivered to
Lender, c/o UBS Real Estate Investments Inc., 1285 Avenue of the Americas,
11th Floor, New York, New York 10019, Attn: Robert Pettinato, Director, on the
date hereof with respect to the current Policies and within thirty (30) days
after the effective date thereof with respect to all renewal Policies.
Borrowers shall pay the Insurance Premiums annually in advance as the same
become due and payable and shall furnish to Lender evidence of the renewal of
each of the Policies with receipts for the payment of the Insurance Premiums
or other evidence of such payment reasonably satisfactory to Lender (provided,
however, that Borrowers shall not be required to pay such Insurance Premiums
nor furnish such evidence of payment to Lender in the event that the amounts
required to pay such Insurance Premiums have been deposited into the Insurance
Account pursuant to Section 6.3 hereof). In addition to the insurance
coverages described in Section 5.1.1 above, Borrowers shall obtain such other
insurance as may from time to time be reasonably required by Lender in order
to protect its interests. Within thirty (30) days after request by Lender,
Borrowers shall obtain such increases in the amounts of coverage required
hereunder as may be reasonably requested by Lender, taking into consideration
changes in the value of money over time, changes in liability laws, changes in
prudent customs and practices, and the like.

      5.2   Casualty.

            (a)        If any Property shall be damaged or destroyed, in
whole or in part, by fire or other casualty (a "Casualty"), the Borrower that
owns such Property shall give prompt notice thereof to Lender. Following the
occurrence of a Casualty, the Borrower that owns the affected Property,
regardless of whether Insurance Proceeds are available, shall promptly proceed
to restore, repair, replace or rebuild the same to be of at least equal value
and of substantially the same character (but not to the precise condition) as
prior to such damage or destruction, all to be effected in accordance with
applicable law (a "Restoration"). The expenses incurred by Lender in the
adjustment and collection of Insurance Proceeds shall become part of the
Obligations, shall be secured by the Loan Documents and shall be reimbursed by
Borrowers to Lender upon demand. Notwithstanding any Casualty, Borrowers shall
continue to pay the Obligations in the time and manner set forth in the Note
and in this Agreement. Upon the occurrence of any Casualty, the Borrower that
owns the affected Property shall (subject to the right of Lender to elect to
do so as set forth in Section 5.2(b)), promptly file a proof of loss with the
respective insurance company or companies insuring such Casualty.

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<PAGE>

            (b)        In the event of a Casualty where the damage to the
applicable Property does not exceed two percent (2%) of the Outstanding
Principal Balance, so long as no Event of Default has occurred, the Borrower
that owns such Property may settle and adjust any claim without the consent of
Lender and agree with the insurance company or companies on the amount to be
paid upon the loss (the "Insurance Proceeds"); provided that such adjustment
is carried out in a competent and timely manner. In such case, provided that
no Event of Default shall have occurred and the Restoration can be completed
prior to the earlier to occur of (i) the date which is six (6) months
following such Casualty, and (ii) the date which is twelve (12) months prior
to the Stated Maturity Date, each Borrower, as appropriate, is hereby
authorized to collect and receipt for any such Insurance Proceeds. In the
event that the applicable Borrower fails to promptly file a proof of loss with
respect to any Casualty or fails to promptly and diligently proceed to settle
and adjust any claims with respect thereto as required in this clause (b),
then Lender shall, at the sole cost and expense of Borrowers, have the right
to file such proof of loss, settle and adjust such claim and agree with such
insurance company or companies without the consent of Borrowers, and each
Borrower hereby irrevocably appoints Lender as its attorney-in-fact, coupled
with an interest to do so. In the event of a Casualty where the damage to the
applicable Property equals or exceeds two percent (2%) of the Outstanding
Principal Balance (a "Significant Casualty"), then notwithstanding anything
set forth herein to the contrary, at the sole cost and expense of Borrowers,
Lender may elect to file the respective proof of loss, settle and adjust any
claim without the consent of each Borrower and agree with the insurance
company or companies on the amount of the Insurance Proceeds in the place and
stead of Borrowers and without the consent of Borrowers, and each Borrower
hereby irrevocably appoints Lender as its attorney-in-fact, coupled with an
interest to do so. Any Insurance Proceeds in connection with the therewith
(whether or not Lender elects to settle and adjust the claim or any Borrower
settles such claim) shall be due and payable solely to Lender and held by
Lender in accordance with the terms of this Agreement. In the event any
Borrower or any party other than Lender is a payee on any check representing
Insurance Proceeds with respect to any Casualty, such Borrower shall
immediately endorse, and cause all such third parties to endorse, such check
payable to the order of Lender. Each Borrower hereby irrevocably appoints
Lender as its attorney-in-fact, coupled with an interest, to endorse any such
check payable to the order of Lender. The expenses incurred by Lender in the
adjustment and collection of Insurance Proceeds shall become part of the
Obligations, shall be secured by the Loan Documents and shall be reimbursed by
Borrowers to Lender upon demand. Each Borrower hereby releases Lender from any
and all liability with respect to the settlement and adjustment by Lender of
any claims in respect of any Casualty.

            (c)        In the event of loss or damages covered by any of the
Policies, the following provisions shall apply with respect to application of
Insurance Proceeds:

                       (i)    In the event of a Casualty where the loss is in
      an aggregate amount less than two percent (2%) of the original principal
      balance of the Loan and if, in the reasonable judgment of Lender, the
      Restoration can be completed prior to the earlier to occur of (A) the
      date which is six (6) months following such Casualty and (B) the date
      which is twelve (12) months prior to the Stated Maturity Date, and if,
      in the reasonable judgment of Lender, after completion of such
      Restoration the Properties, together, will adequately secure the
      Outstanding Principal Balance and will have a value at least equal to
      the value immediately prior to such Casualty, then, if no Event of
      Default shall have

                                      59
<PAGE>

      occurred, the Net Proceeds shall be applied to reimburse the Borrower
      that owns the affected Property for the cost of the Restoration in the
      manner set forth below. Borrowers hereby covenant and agree to commence
      and diligently to prosecute the Restoration; provided always, that
      Borrowers shall pay all costs (and if required by Lender, Borrowers
      shall deposit the total thereof with Lender in advance) of such
      Restoration in excess of the Net Proceeds made available pursuant to the
      terms hereof.

                       (ii)   Except as provided in Section 5.2(c)(i) above
      and subject to the foregoing provisions of this Section 5.2(c)(ii), the
      Insurance Proceeds collected upon any Casualty shall, at the option of
      Lender in its sole discretion, be applied to the payment of the
      Obligations or applied to reimburse the affected Borrower for the cost
      of the Restoration in the manner set forth below. In the event Lender
      elects to apply the Insurance Proceeds collected upon a Casualty to the
      payment of the Obligations and provided no Event of Default shall have
      occurred and be continuing, Lender shall notify the affected Borrower of
      such election in writing (a "Post Casualty Paydown Notice"). Within
      thirty (30) days' receipt of a Post Casualty Paydown Notice, time being
      of the essence, such affected Borrower may deliver notice to Lender of
      its intention to obtain a release of the affected Property from the lien
      of the Mortgage by payment to Lender, no later than seventy-five (75)
      days following delivery of a Post Casualty Paydown Notice, time being of
      the essence, of an amount equal to one hundred ten percent (110%) of the
      Allocated Loan Amount in respect of such Property, less any Insurance
      Proceeds held by Lender in respect of such affected Property (a "Post
      Casualty Par Paydown") without the payment of any Yield Maintenance
      Premium. In the event Lender applies the Insurance Proceeds collected
      upon a Casualty to the payment of the Obligations in accordance with
      this Section 5.2(c)(ii), then, throughout the term of the Loan, if a
      Default or an Event of Default has occurred, Borrowers shall pay to
      Lender, with respect to any such payment of the Debt, an additional
      amount equal to the Yield Maintenance Premium; provided, however, that
      if a Default or an Event of Default has not occurred, then the Yield
      Maintenance Premium shall not be payable. Any such application to the
      Debt, whether at Lender's election or by virtue of a Post Casualty Par
      Paydown, shall be applied (A) first, to those payments of interest last
      due under this Agreement but shall not postpone any payments otherwise
      required pursuant hereunder other than such last due payments and (B)
      second, the balance, in reduction of the Outstanding Principal Balance.

                       (iii)  In the event any Borrower is entitled to
      reimbursement out of the Net Proceeds held by Lender, such Insurance
      Proceeds shall be disbursed from time to time by Lender so long as the
      following conditions have been satisfied:

                              (A)    no Event of Default shall have occurred
            and be continuing;

                              (B)    Leases requiring payment of annual rent
            equal to ninety percent (90%) of the Gross Revenue received by
            such Borrower during the twelve (12) month period immediately
            preceding the Casualty and all Leases shall remain in full force
            and effect during and after the completion of the Restoration
            without abatement of rent beyond the time required for
            Restoration, notwithstanding the occurrence of such Casualty;

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<PAGE>

                              (C)    the Borrower that owns the affected
            Property shall commence the Restoration as soon as reasonably
            practicable (but in no event later than sixty (60) days after such
            Casualty occurs) and shall diligently pursue the same to
            satisfactory completion;

                              (D)    Lender shall be satisfied that any
            operating deficits and all payments of principal and interest
            under the Note will be paid during the period required for
            Restoration from (A) the Net Proceeds, or (B) other funds of
            Borrowers;

                              (E)    Lender shall be satisfied that the
            Restoration will be completed on or before the earliest to occur
            of (1) the date six (6) months prior to the Stated Maturity Date,
            (2) the earliest date required for such completion under the terms
            of any Lease, (3) such time as may be required under applicable
            Legal Requirements in order to repair and restore the affected
            Property to the condition it was in immediately prior to such
            Casualty, or (4) three (3) months prior to the expiration of the
            insurance coverage referred to in Section 5.1.1(a)(iii);

                              (F)    the affected Property and the use thereof
            after the Restoration will be in compliance with and permitted
            under all applicable Legal Requirements;

                              (G)    the Restoration shall be done and
            completed by such Borrower in an expeditious and diligent fashion
            and in compliance with all applicable Legal Requirements; and

                              (H)    such Casualty does not result in the loss
            of access to the Properties or the related Improvements.

      5.3   Condemnation.

            (a)        Each Borrower shall promptly give Lender written notice
of the actual or threatened commencement of any Condemnation with respect to
all or any portion of the Property owned by such Borrower and shall deliver to
Lender copies of any and all papers served in connection with such
Condemnation. Following the occurrence of a Condemnation, the Borrower that
owns such Property, regardless of whether an Award is available, shall
promptly proceed with the Restoration.

            (b)        Any and all awards or payments (each, an "Award") for
any taking accomplished through a Condemnation or any transfer of any
Property, or any portion thereof, in lieu of, or in anticipation of, a
Condemnation (any of the foregoing, a "Taking") are hereby assigned by each
Borrower to Lender and Lender is hereby authorized to make any compromise or
settlement in connection with such Condemnation, subject to the provisions of
this Agreement.

            (c)        In the event of any Condemnation where the Award is in
an aggregate amount less than ten percent (10%) of the original principal
balance of the Loan, and if, in the reasonable judgment of Lender, the
Restoration can be completed prior to the earlier to occur of

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<PAGE>

(i) the date which is twelve (12) months following such Taking, and (ii) the
date which is six (6) months prior to the Stated Maturity Date, and if, in the
reasonable judgment of Lender, after the completion of such Restoration the
Properties will adequately secure the Outstanding Principal Balance and will
have a value at least equal to the value immediately prior to such Taking,
then, if no Event of Default shall have occurred and be continuing, the Net
Proceeds shall be applied to reimburse Borrowers for the cost of the
Restoration, and such Award shall be disbursed in the same manner as provided
in Section 5.2(c)(iii) for the application of Insurance Proceeds. Borrowers
hereby covenant and agree to commence and diligently to prosecute the
Restoration; provided always, that Borrowers shall pay all costs (and if
required by Lender, Borrowers shall deposit the total thereof with Lender in
advance) of the Restoration in excess of the Award made available pursuant to
the terms hereof. Any surplus which may remain out of the Award received by
Lender after payment of such costs of the Restoration shall, in the sole and
absolute discretion of Lender, be retained by Lender and applied to payment of
the Obligations.

            (d)        Except as provided in Section 5.3(c) above, the Award
collected upon any Condemnation shall, at the option of Lender in its sole
discretion, be applied to the payment of the Obligations or applied to
reimburse any Borrower for the cost of the Restoration in the same manner as
provided in Section 5.2(c)(iii) hereof for the application of Insurance
Proceeds. Throughout the term of the Loan if a Default or an Event of Default
has occurred and is continuing, then Borrowers shall pay to Lender, with
respect to any payment of the Obligations pursuant to this paragraph, an
additional amount equal to the Yield Maintenance Premium; provided, however,
that if a Default or an Event of Default has not occurred, then the Yield
Maintenance Premium shall not be payable. Any such application to the Debt
shall (i) be applied to those payments of principal and interest last due
under this Agreement but shall not postpone or reduce any payments otherwise
required hereunder other than such last due payments and (ii) not cause or
result in the Monthly Debt Service Payment Amount to be re-cast based upon the
reduction of the Outstanding Principal Balance and the number of months
remaining until the Maturity Date. If the Property is sold, through
foreclosure or otherwise, prior to the receipt by Lender of such Award, Lender
shall have the right, whether or not a deficiency judgment on the Note shall
be recoverable or shall have been sought, recovered or denied, to receive all
or a portion of said Award sufficient to pay the Obligations.

            (e)        Notwithstanding any Taking by any Governmental
Authority (including, without limitation, any transfer made in lieu of or in
anticipation of such a Taking), Borrowers shall continue to pay the
Obligations at the time and in the manner provided for in the Note, in this
Agreement and in the other Loan Documents and the Obligations shall not be
reduced unless and until any Award shall have been actually received and
applied by Lender to expenses of collecting the Award and to discharge of the
Obligations.

      5.4   Casualty and Condemnation Proceeds. Payments received on account
of the business interruption insurance specified in Section 5.1.1(a)(iii)
above with respect to any Casualty or Condemnation shall be deposited directly
into the Casualty and Condemnation Account. Notwithstanding anything to the
contrary contained herein, if in connection with a Casualty any insurance
company makes a payment under a property insurance Policy that any Borrower
proposes be treated as business or rental interruption insurance, then,
notwithstanding any designation (or lack of designation) by the insurance
company as to the purpose of such payment, as between Lender and Borrowers,
such payment shall not be treated as business or

                                      62
<PAGE>

rental interruption Insurance Proceeds (with any earnings or interest thereon
payable to Borrowers) unless Borrowers have demonstrated to Lender's
satisfaction that the remaining Net Proceeds that will be received from the
property insurance companies are sufficient to pay one hundred percent (100%)
of the cost of the Restoration or, if such Net Proceeds are to be applied to
repay the Obligations in accordance with the terms hereof, that such remaining
Net Proceeds will be sufficient to satisfy the Obligations in full.

      5.5   Additional Conditions for Disbursement of Net Proceeds.

            (a)        All plans and specifications required in connection
with the Restoration shall be subject to the prior approval of Lender and an
independent architect selected by Lender (the "Casualty Consultant"), such
approval not to be unreasonably withheld or delayed. The plans and
specifications shall require that the Restoration be completed in a
first-class workmanlike manner at least equivalent to the quality and
character of the original work in the Improvements (provided, however, that in
the case of a partial Condemnation, the Restoration shall be done to the
extent reasonably practicable after taking into account the consequences of
such partial Condemnation), so that upon completion thereof, the affected
Property shall be at least equal in value and general utility to the affected
Property prior to the Casualty or Condemnation, as applicable; it being
understood, however, that Borrowers shall not be obligated to restore the
affected Property to the precise condition of the affected Property prior to
such Casualty or Condemnation, as applicable, provided the affected Property
is restored, to the extent practicable, to be of at least equal value and of
substantially the same character as prior to the Casualty or Condemnation, as
applicable. Borrowers shall restore all Improvements such that when they are
fully restored and/or repaired, such Improvements and their contemplated use
fully comply with all applicable material Legal Requirements. The identity of
the contractors, subcontractors and materialmen engaged in the Restoration, as
well as the contracts under which they have been engaged, shall be subject to
the reasonable approval of Lender and the Casualty Consultant. All costs and
expenses incurred by Lender in connection with recovering, holding and
advancing the Net Proceeds for the Restoration, including reasonable
attorneys' fees and disbursements and the Casualty Consultant's fees and
disbursements, shall be paid by Borrowers.

            (b)        In no event shall Lender be obligated to make
disbursements of the Net Proceeds in excess of an amount equal to the costs
actually incurred from time to time for work in place as part of the
Restoration, as certified by the Casualty Consultant, less the Casualty
Retainage. The term "Casualty Retainage" shall mean, as to each contractor,
subcontractor or materialman engaged in the Restoration, an amount equal to
five percent (5%) of the costs actually incurred for work in place as part of
the Restoration, as certified by the Casualty Consultant, until the
Restoration has been completed. The Casualty Retainage shall in no event, and
notwithstanding anything to the contrary set forth above in this Section
5.5(b), be less than the amount actually held back by any Borrower from
contractors, subcontractors and materialmen engaged in the Restoration. The
Casualty Retainage shall not be released until the Casualty Consultant
certifies to Lender that the Restoration has been completed in accordance with
the provisions of this Article 5 and that all approvals necessary for the
re-occupancy and use of the affected Property have been obtained from all
appropriate Governmental Authorities, and Lender receives evidence
satisfactory to Lender that the costs of the Restoration have been paid in
full or will be paid in full out of the Casualty Retainage; provided, however,
that Lender will release the portion of the Casualty Retainage being held with
respect to any contractor,

                                      63
<PAGE>

subcontractor or materialman engaged in the Restoration as of the date upon
which (i) the Casualty Consultant certifies to Lender that such contractor,
subcontractor or materialman has satisfactorily completed all work and has
supplied all materials in accordance with the provisions of such contractor's,
subcontractor's or materialman's contract, (ii) the contractor, subcontractor
or materialman delivers the lien waivers and evidence of payment in full of
all sums due to the contractor, subcontractor or materialman as may be
reasonably requested by Lender or by the title company issuing the Title
Insurance Policy, and (iii) Lender receives an endorsement to the Title
Insurance Policy insuring the continued priority of the Lien of the Mortgage
and evidence of payment of any premium payable for such endorsement. If
required by Lender, the release of any such portion of the Casualty Retainage
shall be approved by the surety company, if any, which has issued a payment or
performance bond with respect to the contractor, subcontractor or materialman.

            (c)        Lender shall not be obligated to make disbursements of
the Net Proceeds more frequently than once every calendar month.

            (d)        If at any time the Net Proceeds or the undisbursed
balance thereof shall not, in the reasonable opinion of Lender in consultation
with the Casualty Consultant, be sufficient to pay in full the balance of the
costs which are estimated by the Casualty Consultant to be incurred in
connection with the completion of the Restoration, Borrowers shall, at their
option (within a reasonable period of time after receipt of such estimate)
either deposit with or deliver to Lender as the Net Proceeds Deficiency (and,
if a Securitization has occurred, promptly following any such deposit or
delivery, Borrower shall provide written notice of same to the Rating
Agencies): (1) cash and cash equivalents, (2) a Letter of Credit or Letters of
Credit in an amount equal to the estimated cost of the Restoration less the
Net Proceeds available or (3) such other evidence of Borrower's ability to
meet such excess costs and which is satisfactory to Lender and the Rating
Agencies. From time to time as the Restoration progresses, the amount of any
cash or cash equivalents so furnished to Lender as the Net Proceeds Deficiency
shall be subject to disbursement by Lender to Borrower in the same manner as
if such amounts were Net Proceeds and any Letter of Credit so furnished to
Lender as the Net Proceeds Deficiency shall be subject to reduction by Lender
in the same manner as if the amounts of such Letter of Credit were Net
Proceeds, provided that Lender shall have the right in its discretion to
disburse Net Proceeds and/or such Net Proceeds Deficiency in such order and
amounts as Lender determines.

            (e)        The excess, if any, of the Net Proceeds and the
remaining balance, if any, of the Net Proceeds Deficiency deposited with
Lender (whether as cash, cash equivalents or letters of credit) after the
Casualty Consultant certifies to Lender that the Restoration has been
completed in accordance with the provisions of this Article 5, and the receipt
by Lender of evidence satisfactory to Lender that all costs incurred in
connection with the Restoration have been paid in full, shall be remitted by
Lender to Borrowers, provided no Event of Default shall have occurred and
shall be continuing under any of the Loan Documents. As applicable, (i) all
Net Proceeds not required to be made available for the Restoration, and/or
(ii) any excess Net Proceeds remaining after the Casualty Consultant certifies
to Lender that the Restoration has been completed in accordance with the
provisions of this Article 5, and the receipt by Lender of evidence
satisfactory to Lender that all costs incurred in connection with the
Restoration have been paid in full, may be retained and applied by Lender
toward the payment of the Obligations,

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<PAGE>

whether or not then due and payable, in such order, priority and proportions
as Lender in its sole discretion shall deem proper without penalty.

                                   ARTICLE 6
                       CASH MANAGEMENT AND RESERVE FUNDS
                       ---------------------------------

      6.1   Cash Management Arrangements. Borrowers shall cause all Rents to
be transmitted directly by tenants of the Property owned by each Borrower into
a trust account (the "Clearing Account") established and maintained by
Borrowers at a local bank selected by Borrowers and approved by Lender (the
"Clearing Bank") as more fully described in the Clearing Account Agreement.
Without in any way limiting the foregoing, if any Borrower or Manager receives
any Gross Revenue from any Property, then (i) such amounts shall be deemed to
be collateral for the Obligations and shall be held in trust for the benefit,
and as the property, of Lender, (ii) such amounts shall not be commingled with
any other funds or property of any Borrower or Manager, and (iii) such
Borrower or Manager shall deposit such amounts in the Clearing Account within
one (1) Business Day of receipt. Funds deposited into the Clearing Account
shall be swept by the Clearing Bank on a daily basis into the Borrower's
operating account at Clearing Bank, unless an Event of Default shall have
occurred and be continuing, in which event such funds shall be swept on a
daily basis into an Eligible Account at the Deposit Bank controlled by Lender
(the "Deposit Account") and applied and disbursed in accordance with this
Agreement and the Cash Management Agreement. Funds in the Deposit Account
shall be invested in Permitted Investments, as more particularly set forth in
the Cash Management Agreement. Lender may also establish subaccounts of the
Deposit Account which shall at all times be Eligible Accounts and may be
ledger or book entry accounts and not actual accounts (such subaccounts are
referred to herein as "Accounts"). The Clearing Account, the Deposit Account
and all other Accounts will be under the sole control and dominion of Lender,
and Borrowers, except as set forth above or in the Clearing Account Agreement,
shall have no right of withdrawal therefrom. Borrowers shall pay for all
expenses of opening and maintaining all of the above accounts.

      6.2   Required Repairs Funds.

            6.2.1      Deposit of Required Repairs Funds. Each Borrower shall
perform the repairs and other work at the affected Property as set forth on
Schedule VI (such repairs and other work hereinafter referred to as "Required
Repairs") and shall complete each of the Required Repairs on or before the
respective deadline for each repair as set forth on Schedule VI. Subject to
the terms of Section 6.11, on the Closing Date, each Borrower shall deposit
with or on behalf of Lender the amount, if any, set forth on such Schedule VI
for the Property held by such Borrower to perform the Required Repairs at such
Property (the "Required Repairs Funds"). All Required Repairs Funds shall be
transferred by Deposit Bank into an Account established to hold such funds
(the "Required Repairs Account").

            6.2.2      Release of Required Repairs Funds.

            (a)        Lender shall direct Servicer to disburse the Required
Repairs Funds to the applicable Borrower out of the Required Repairs Account
upon satisfaction by such Borrower of each of the following conditions with
respect to each such disbursement: (i) the applicable

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Borrower shall submit a request for payment to Lender at least ten (10) days
prior to the date on which such Borrower requests such payment be made, which
request shall specify the Required Repairs to be paid; (ii) on the date such
request is received by Lender and on the date such payment is to be made, no
Event of Default shall exist and remain uncured; and (iii) Lender shall have
received (1) an Officer's Certificate from such Borrower (A) stating that all
Required Repairs to be funded by the requested disbursement have been
completed in a good and workmanlike manner and in accordance with all
applicable Legal Requirements, (B) identifying each Person that supplied
materials or labor in connection with the Required Repairs to be funded by the
requested disbursement, (C) stating that each such Person has been paid in
full or will be paid in full upon such disbursement, (D) stating that the
Required Repairs to be funded have not been the subject of a previous
disbursement, (E) stating that all previous disbursements of Required Repair
Funds have been used to pay the previously identified Required Repairs, and
(F) stating that all outstanding trade payables (other than those to be paid
from the requested disbursement or those constituting Permitted Indebtedness)
have been paid in full, (2) a copy of any license, permit or other approval by
any Governmental Authority required in connection with the Required Repairs
and not previously delivered to Lender, (3) lien waivers or other evidence of
payment satisfactory to Lender, (4) at Lender's option, a title search for the
applicable Property indicating that such Property is free from all Liens,
claims and other encumbrances not previously approved by Lender, and (5) such
other evidence as Lender shall reasonably request to demonstrate that the
Required Repairs to be funded by the requested disbursement have been
completed and are paid for or will be paid upon such disbursement to Borrower.
Lender shall not be required to disburse Required Repairs Funds more
frequently than once each calendar month on the same day of such month as any
other Reserve Funds are being disbursed in accordance with the terms hereof,
and the aggregate funding of Reserve Funds in any month shall equal or exceed
the Minimum Disbursement Amount. Upon the completion of all Required Repairs
for all Properties in accordance with this Section 6.2, Lender shall direct
Servicer to release any remaining Required Repairs Funds, if any, in the
Required Repairs Account to Borrowers.

            (b)        Nothing in this Section 6.2.2 shall (i) make Lender
responsible for performing or completing any Required Repairs; (ii) require
Lender to expend funds in addition to the Required Repairs Funds to complete
any Required Repairs; (iii) obligate Lender to proceed with any Required
Repairs; or (iv) obligate Lender to demand from any Borrower additional sums
to complete any Required Repairs.

            (c)        Each Borrower shall permit Lender and Lender's agents
upon notice and representatives (including Lender's engineer, architect or
inspector) or third parties to enter onto the Property owned by such Borrower
during normal business hours (subject to the rights of Tenants under their
Leases) to inspect the progress of any Required Repairs and all materials
being used in connection therewith and to examine all plans and shop drawings
relating to such Required Repairs. Each Borrower shall cause all contractors
and subcontractors to cooperate with Lender or Lender's representatives or
such other Persons described above in connection with inspections described in
this Section 6.2.2(c).

            (d)        If a disbursement of Required Repair Funds will exceed
$25,000.00, Lender may require an inspection of the applicable Property at the
applicable Borrower's expense prior to making a disbursement of Required
Repairs Funds in order to verify completion

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of the Required Repairs for which reimbursement is sought. Lender may require
that such inspection be conducted by an appropriate independent qualified
professional selected by Lender and may require a certificate of completion by
an independent qualified professional architect acceptable to Lender prior to
the disbursement of Required Repairs Funds. The applicable Borrower shall pay
the expense of the inspection as required hereunder, whether such inspection
is conducted by Lender or by an independent qualified professional architect.

            (e)        In addition to any insurance required under the Loan
Documents, Borrowers shall provide or cause to be provided workmen's
compensation insurance, builder's risk insurance, public liability insurance
and other insurance to the extent required under applicable law in connection
with the Required Repairs. All such policies shall be in form and amount
satisfactory to Lender.

      6.3   Tax Funds.

            6.3.1      Deposits of Tax Funds. Borrowers shall deposit with or
on behalf of Lender (i) the amount of $1,548,702.68 on the Closing Date, and
(ii) on each Monthly Payment Date, an amount equal to one-twelfth of the Taxes
that Lender estimates will be payable during the next ensuing twelve (12)
months, in order to accumulate sufficient funds to pay all such Taxes at least
ten (10) days prior to their respective due dates, which amounts shall be
transferred into an Account established at Deposit Bank to hold such funds
(the "Tax Account"). Amounts deposited from time to time into the Tax Account
pursuant to this Section 6.3.1 are referred to herein as the "Tax Funds". If
at any time Lender reasonably determines that the Tax Funds will not be
sufficient to pay the Taxes, Lender shall notify Borrowers of such
determination and the monthly deposits for Taxes shall be increased by the
amount that Lender estimates is sufficient to make up the deficiency at least
ten (10) days prior to the respective due dates for the Taxes; provided that,
if Borrowers receive notice of any deficiency after the date that is ten (10)
days prior to the date that Taxes are due, Borrowers will deposit with or on
behalf of Lender such amount within one (1) Business Day after its receipt of
such notice.

            6.3.2      Release of Tax Funds. Provided no Event of Default
shall exist and remain uncured, Lender shall direct Servicer to apply the Tax
Funds in the Tax Account to payments of Taxes. In making any payment relating
to Taxes, Lender may do so according to any bill, statement or estimate
procured from the appropriate public office (with respect to Taxes) without
inquiry into the accuracy of such bill, statement or estimate or into the
validity of any tax, assessment, sale, forfeiture, tax lien or title or claim
thereof. If the amount of the Tax Funds shall exceed the amounts due for
Taxes, Lender shall, in its sole discretion, return any excess to Borrowers or
credit such excess against future payments to be made to the Tax Funds. Any
Tax Funds remaining in the Tax Account after the Obligations have been paid in
full shall be returned to Borrowers.

      6.4   Insurance Funds.

            6.4.1      Deposits of Insurance Funds. Borrowers shall deposit
with or on behalf of Lender (i) the amount of $128,766.26 on the Closing Date,
and (ii) on each Monthly Payment Date, an amount equal to one-twelfth of the
Insurance Premiums that Lender estimates will be payable for the renewal of
the coverage afforded by the Policies upon the expiration thereof, in

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order to accumulate sufficient funds to pay all such Insurance Premiums at
least thirty (30) days prior to the expiration of the Policies, which amounts
shall be transferred into an Account established at Deposit Bank to hold such
funds (the "Insurance Account"). Amounts deposited from time to time into the
Insurance Account pursuant to this Section 6.4.1 are referred to herein as the
"Insurance Funds". If at any time Lender reasonably determines that the
Insurance Funds will not be sufficient to pay the Insurance Premiums, Lender
shall notify Borrowers of such determination and the monthly deposits for
Insurance Premiums shall be increased by the amount that Lender estimates is
sufficient to make up the deficiency at least thirty (30) days prior to
expiration of the Policies.

            6.4.2      Release of Insurance Funds. Provided no Event of
Default shall exist and remain uncured, Lender shall direct Servicer to apply
the Insurance Funds in the Insurance Account to payment of Insurance Premiums.
In making any payment relating to Insurance Premiums, Lender may do so
according to any bill, statement or estimate procured from the insurer or its
agent, without inquiry into the accuracy of such bill, statement or estimate.
If the amount of the Insurance Funds shall exceed the amounts due for
Insurance Premiums, Lender shall, in its sole discretion, return any excess to
Borrowers or credit such excess against future payments to be made to the
Insurance Funds. Any Insurance Funds remaining in the Insurance Account after
the Obligations have been paid in full shall be returned to Borrowers.

      6.5   Capital Expenditure Funds.

            6.5.1      Deposits of Capital Expenditure Funds. Subject to the
terms of Section 6.11, Borrowers shall deposit with or on behalf of Lender on
each Monthly Payment Date, the amount of $334,375.00, for annual Capital
Expenditures, which amounts shall be transferred into an Account established
at Deposit Bank to hold such funds (the "Capital Expenditure Account").
Amounts deposited from time to time into the Capital Expenditure Account
pursuant to this Section 6.5.1 are referred to herein as the "Capital
Expenditure Funds". Lender may reassess its estimate of the amount necessary
for Capital Expenditures from time to time and may require Borrowers to
increase the monthly deposits required pursuant to this Section 6.5.1 upon
thirty (30) days notice to Borrowers if Lender determines in its reasonable
discretion that an increase is necessary to maintain proper operation of the
Properties.

            6.5.2      Release of Capital Expenditure Funds.

            (a)        Lender shall direct Servicer to disburse the Capital
Expenditure Funds to the applicable Borrower out of the Capital Expenditure
Account upon satisfaction by such Borrower of each of the following conditions
with respect to each such disbursement: (i) such disbursement is for an
Approved Capital Expenditure; (ii) such Borrower shall submit a request for
payment to Lender at least ten (10) days prior to the date on which such
Borrower requests such payment be made, which request shall specify the
Approved Capital Expenditures to be paid; (iii) on the date such request is
received by Lender and on the date such payment is to be made, no Event of
Default shall exist and remain uncured, and (iv) Lender shall have received
(1) an Officer's Certificate from such Borrower (A) stating that the items to
be funded by the requested disbursement are Approved Capital Expenditures, and
a description thereof, (B) stating that all Approved Capital Expenditures to
be funded by the requested disbursement have been completed in a good and
workmanlike manner and in accordance with all applicable Legal

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<PAGE>

Requirements, (C) identifying each Person that supplied materials or labor in
connection with the Approved Capital Expenditures to be funded by the
requested disbursement, (D) stating that each such Person has been paid in
full or will be paid in full upon such disbursement, (E) stating that the
Approved Capital Expenditures to be funded have not been the subject of a
previous disbursement, (F) stating that all previous disbursements of Capital
Expenditure Funds have been used to pay the previously identified Approved
Capital Expenses, and (G) stating that all outstanding trade payables (other
than those to be paid from the requested disbursement or those constituting
Permitted Indebtedness) have been paid in full, (2) a copy of any license,
permit or other approval required by any Governmental Authority in connection
with the Approved Capital Expenditures and not previously delivered to Lender,
(3) lien waivers or other evidence of payment satisfactory to Lender, (4) at
Lender's option, title searches for the Property owned by such Borrower
indicating that such Property is free from all Liens, claims and other
encumbrances not previously approved by Lender, and (5) such other evidence as
Lender shall reasonably request to demonstrate that the Approved Capital
Expenditures to be funded by the requested disbursement have been completed
and are paid for or will be paid upon such disbursement to such Borrower.
Lender shall not be required to disburse Capital Expenditure Funds more
frequently than once each calendar month, on the same day of such month as any
other Reserve Funds are being disbursed in accordance with the terms hereof,
and the aggregate funding of Reserve Funds in any month shall equal or exceed
the Minimum Disbursement Amount.

            (b)        Nothing in this Section 6.5.2 shall (i) make Lender
responsible for performing or completing any Capital Expenditures Work; (ii)
require Lender to expend funds in addition to the Capital Expenditure Funds to
complete any Capital Expenditures Work; (iii) obligate Lender to proceed with
any Capital Expenditures Work; or (iv) obligate Lender to demand from any
Borrower additional sums to complete any Capital Expenditures Work.

            (c)        Each Borrower shall permit Lender and Lender's agents
and representatives (including Lender's engineer, architect or inspector) or
third parties to enter onto the Property owned by such Borrower during normal
business hours (subject to the rights of Tenants under their Leases) to
inspect the progress of any Capital Expenditures Work and all materials being
used in connection therewith and to examine all plans and shop drawings
relating to such Capital Expenditures Work. Each Borrower shall cause all
contractors and subcontractors to cooperate with Lender or Lender's
representatives or such other Persons described above in connection with
inspections described in this Section 6.5.2(c).

            (d)        If a disbursement of Capital Expenditure Funds will
exceed $25,000.00, Lender may require an inspection of the applicable Property
at Borrowers' expense prior to making a disbursement of Capital Expenditure
Funds in order to verify completion of the Capital Expenditures Work for which
reimbursement is sought. Lender may require that such inspection be conducted
by an appropriate independent qualified professional selected by Lender and
may require a certificate of completion by an independent qualified
professional architect acceptable to Lender prior to the disbursement of
Capital Expenditure Funds. Borrowers shall pay the expense of the inspection
as required hereunder, whether such inspection is conducted by Lender or by an
independent qualified professional architect.

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<PAGE>

            (e)        In addition to any insurance required under the Loan
Documents, Borrowers shall provide or cause to be provided workmen's
compensation insurance, builder's risk insurance, public liability insurance
and other insurance to the extent required under applicable law in connection
with the Capital Expenditures Work. All such policies shall be in form and
amount satisfactory to Lender.

      6.6   Rollover Funds.

            6.6.1      Deposits of Rollover Funds.

            (a)        Subject to the terms of Section 6.11, Borrowers shall
deposit with or on behalf of Lender (i) the amount of $2,090,988 on the
Closing Date in respect of tenant improvements pursuant to the Synapse Lease
(the "Synapse Rollover Funds") and (ii) on each Monthly Payment Date the sum
of $126,180.75, for tenant improvements and leasing commissions that may be
incurred following the date hereof, which amounts shall be transferred into an
Account established at Deposit Bank to hold such funds (the "Rollover
Account"). Lender may from time to time reassess its estimate of the required
monthly amount necessary for tenant improvements and leasing commissions and,
upon notice to Borrowers, Borrowers shall be required to deposit with or on
behalf of Lender each month such reassessed amount, which shall be transferred
into the Rollover Account. Amounts deposited from time to time into the
Rollover Account pursuant to this Section 6.6.1, including, without
limitation, the Synapse Rollover Funds are referred to herein as the "Rollover
Funds".

            (b)        In addition to the required monthly deposits set forth
in subsection (a) above and notwithstanding the terms of Section 6.11, the
following items shall be deposited into the Rollover Account and held as
Rollover Funds and shall be disbursed and released as set forth in Section
6.6.2 below, and the Borrower making such deposit shall advise Lender at the
time of receipt thereof of the nature of such receipt so that Lender shall
have sufficient time to instruct the Deposit Bank to deposit and hold such
amounts in the Rollover Account pursuant to the Cash Management Agreement:

                       (i)    All sums paid with respect to (A) a modification
      of any Lease or otherwise paid in connection with any Borrower taking
      any action under any Lease (e.g., granting a consent) or waiving any
      provision thereof, (B) any settlement of claims of any Borrower against
      third parties in connection with any Lease, (C) any rejection,
      termination, surrender or cancellation of any Lease (including in any
      bankruptcy case) which renders certain space in any Property vacant (a
      "Vacant Space") or any lease buy-out or surrender payment from any
      Tenant (including any payment relating to unamortized tenant
      improvements and/or leasing commissions, collectively, "Lease
      Termination Payments"), and (D) any sum received from any Tenant to
      obtain a consent to an assignment or sublet or otherwise, or any
      holdover rents or use and occupancy fees from any Tenant or former
      Tenant (to the extent not being paid for use and occupancy or holdover
      rent); and

                       (ii)   Any other extraordinary event pursuant to which
      any Borrower receives payments or income (in whatever form) derived from
      or generated by the use,

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      ownership or operation of any Property not otherwise covered by this
      Agreement or the Cash Management Agreement.

            6.6.2      Release of Rollover Funds.

            (a)        Subject to Section 6.6.2(b), below, Lender shall direct
Servicer to disburse the Rollover Funds (including any Lease Termination
Payments deposited to the Rollover Account pursuant to Section 6.6.1(b)) to
any Borrower from the Rollover Account upon satisfaction by such Borrower of
each of the following conditions with respect to each such disbursement: (i)
such disbursement is for an Approved Leasing Expense; (ii) such Borrower shall
submit a request for payment to Lender at least ten (10) days prior to the
date on which such Borrower requests such payment be made, which request shall
specify the Approved Leasing Expense to be paid; (iii) on the date such
request is received by Lender and on the date such payment is to be made, no
Event of Default shall exist and remain uncured; (iv) Lender shall have
reviewed and approved the Lease giving rise to the Approved Leasing Expense
(to the extent Lender has the right to approve same) to be paid; and (v)
Lender shall have received (1) an Officer's Certificate from such Borrower (A)
stating that the items to be funded by the requested disbursement are Approved
Leasing Expenses, and a description thereof, (B) stating that all tenant
improvements at the Property to be funded by the requested disbursement have
been completed in a good and workmanlike manner and in accordance with all
applicable Legal Requirements, (C) identifying each Person that supplied
materials or labor in connection with the tenant improvements to be funded by
the requested disbursement or the broker entitled to the leasing commissions,
(D) stating that each such Person has been paid in full or will be paid in
full upon such disbursement, (E) stating that the Approved Leasing Expenses to
be funded have not been the subject of a previous disbursement, (F) stating
that all previous disbursements of Rollover Funds have been used to pay the
previously identified Approved Leasing Expenses, and (G) stating that all
outstanding trade payables (other than those to be paid from the requested
disbursement or those constituting Permitted Indebtedness) have been paid in
full, and (2) such other evidence as Lender shall reasonably request to
demonstrate that the Approved Leasing Expenses to be funded by the requested
disbursement have been completed and are paid for or will be paid upon such
disbursement to such Borrower. Lender shall not be required to disburse
Rollover Funds more frequently than once each calendar month, on the same day
of such month as any other Reserve Funds are being disbursed in accordance
with the terms hereof, and the aggregate funding of Reserve Funds in any month
shall equal or exceed the Minimum Disbursement Amount. Notwithstanding
anything to the contrary contained herein, the Synapse Rollover Funds shall
only be disbursed to Borrowers in respect of tenant improvements performed
pursuant to the terms of the Synapse Lease.

            (b)        Lender shall release any portion of Lease Termination
Payments deposited with Lender pursuant to Section 6.6.1(b)(i) above which
remains on deposit in such Rollover Account upon the occurrence of (x) such
Borrower's execution of a Lease for such Vacant Space with a new Tenant (a
"Replacement Tenant") in accordance with the terms of Section 4.1.10 hereof,
(y) Replacement Tenant's actual occupancy of the applicable Vacant Space, and
(z) Replacement Tenant's commencement of payment of full, unabated rent for
the applicable Vacant Space.

      6.7   Intentionally Omitted.

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      6.8   Security Interest in Reserve Funds.

            6.8.1      Grant of Security Interest. Borrowers shall be the
owner of the Reserve Funds. Borrowers hereby pledge, assign and grant a
security interest to Lender, as security for the payment and performance of
the Obligations, in all of Borrowers' right, title and interest in and to the
Reserve Funds. The Reserve Funds shall be under the sole dominion and control
of Lender. The Reserve Funds shall not constitute a trust fund and may be
commingled with other monies held by Lender.

            6.8.2      Income Taxes; Interest. Borrowers shall report on its
federal, state, commonwealth, district and local income tax returns all
interest or income accrued on the Reserve Funds. The Reserve Funds shall earn
interest at a rate commensurate with the rate of interest paid from time to
time on money market accounts at a commercial bank selected by Lender in its
sole discretion from time to time, with interest credited monthly to such
Reserve Funds (with the exception of the Tax Funds and Insurance Funds). All
earnings or interest on each of the Reserve Funds (with the exception of the
Tax Funds and Insurance Funds) shall be and become part of the respective
Reserve Fund and shall be disbursed as provided in the paragraph(s) of this
Agreement applicable to each such Reserve Fund. No earnings or interest on the
Tax Funds or the Insurance Funds shall be payable to Borrowers.

            6.8.3      Prohibition Against Further Encumbrance. No Borrower
shall, without the prior consent of Lender, further pledge, assign or grant
any security interest in the Reserve Funds or permit any lien or encumbrance
to attach thereto or any levy to be made thereon or any UCC-1 financing
statements to be filed with respect thereto, except those naming Lender as the
secured party.

      6.9   Property Cash Flow Allocation. Notwithstanding anything to the
contrary contained in this Article 6, upon the occurrence of an Event of
Default, Lender, at its option, may withdraw the Reserve Funds and any other
funds of Borrowers then in the possession of Lender, Servicer or Deposit Bank
(including any Gross Revenue) and apply such funds to the items for which the
Reserve Funds were established or to the payment of the Obligations in such
order, proportion and priority as Lender may determine in its sole discretion.
Lender's right to withdraw and apply any of the foregoing funds shall be in
addition to all other rights and remedies provided to Lender under the Loan
Documents.

      6.10  Letters of Credit.

            6.10.1     Delivery of Letters of Credit.

            (a)        Borrowers may deliver to Lender a Letter of Credit (i)
in lieu of making any portion of the initial deposit to the Rollover Account,
(ii) in replacement of any portion of deposits previously made to the Rollover
Account, (iii) in lieu of making any portion of any monthly deposit to the
Capital Expenditure Account, and/or (iv) in replacement of any portion of
deposits previously made to the Capital Expenditure Account. The aggregate
amount of any Letters of Credit and cash on deposit with respect to the
foregoing items (i), (ii), (iii), and (iv) shall at all times be at least
equal to the aggregate amount which Borrowers are required to have on deposit
in respect of such items pursuant to this Agreement, as reasonably estimated
by

                                      72
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Lender. In determining the aggregate amount of any Letter of Credit and cash
required to be delivered to Lender with respect to the Capital Expenditures
Account, such aggregate amount shall equal all amounts required to be
deposited hereunder through the date of delivery of the applicable Letter of
Credit, less amounts expended by Borrowers for Capital Expenditures, for which
Borrowers have satisfied the conditions set forth in Section 6.5.2 hereof for
withdrawal from the Capital Expenditure Account. In determining the aggregate
amount of any Letter of Credit and cash required to be delivered to Lender
with respect to the Rollover Account, such aggregate amount shall equal all
amounts required to be deposited hereunder through the date of delivery of the
applicable Letter of Credit, less amounts expended by Borrowers for Approved
Leasing Expenses, for which Borrowers have satisfied the conditions set forth
in Section 6.6.2 hereof for withdrawal from the Rollover Account.

            (b)        Borrowers shall give Lender no less than fifteen (15)
days notice of Borrowers' election to deliver a Letter of Credit and Borrowers
shall pay to Lender all of Lender's reasonable out-of-pocket costs and
expenses in connection therewith. Borrowers shall not be entitled to draw from
any such Letter of Credit. Upon fifteen (15) days notice to Lender, Borrowers
may replace a Letter of Credit with a cash deposit to the Capital Expenditure
Account or the Rollover Account, as applicable.

            6.10.2     Security for Debt. Each Letter of Credit delivered
under this Agreement shall be additional security for the payment of the Debt.
Upon the occurrence and during the continuance of an Event of Default, Lender
shall have the right, at its option, to draw on any Letter of Credit and to
apply all or any part thereof to the payment of the items for which such
Letter of Credit was established or to apply each such Letter of Credit to
payment of the Debt in such order, proportion or priority as Lender may
determine. Any such application to the Debt shall be subject to the Yield
Maintenance Premium due hereunder.

            6.10.3     Additional Rights of Lender. In addition to any other
right Lender may have to draw upon a Letter of Credit pursuant to the terms
and conditions of this Agreement, Lender shall have the additional rights to
draw in full any Letter of Credit: (a) with respect to any evergreen Letter of
Credit, if Lender has received a notice from the issuing bank that the Letter
of Credit will not be renewed and a substitute Letter of Credit is not
provided at least thirty (30) days prior to the date on which the outstanding
Letter of Credit is scheduled to expire; (b) with respect to any Letter of
Credit with a stated expiration date, if Lender has not received a notice from
the issuing bank that it has renewed the Letter of Credit at least thirty (30)
days prior to the date on which such Letter of Credit is scheduled to expire
and a substitute Letter of Credit is not provided at least thirty (30) days
prior to the date on which the outstanding Letter of Credit is scheduled to
expire; (c) upon receipt of notice from the issuing bank that the Letter of
Credit will be terminated (except if the termination of such Letter of Credit
is permitted pursuant to the terms and conditions of this Agreement or a
substitute Letter of Credit is provided); (d) if Lender has received notice
that the bank issuing the Letter of Credit shall cease to be an Eligible
Institution and Borrower has not substituted a Letter of Credit from an
Eligible Institution within ten (10) Business Days after notice or (e) if the
bank issuing the Letter of Credit shall not consent to the assignment of the
Letter of Credit to such party as Lender shall request and Borrower has not
substituted a Letter of Credit from an Eligible Institution within ten (10)
Business Days after receiving notice from Lender of such failure to consent by
the issuing bank. If Lender draws upon a Letter of Credit pursuant to the
terms and conditions of this Agreement, Lender shall

                                      73
<PAGE>

apply all or any part thereof for the purposes for which such Letter of Credit
was established. Notwithstanding anything to the contrary contained in the
above, Lender is not obligated to draw any Letter of Credit upon the happening
of an event specified in (a), (b), (c) (d) or (e) above and shall not be
liable for any losses sustained by Borrower due to the insolvency of the bank
issuing the Letter of Credit if Lender has not drawn the Letter of Credit.

      6.11  Guaranty of Reserve Accounts.

            (a)        In lieu of making the payments to the Required Repairs
Account, the Rollover Account (other than deposits required pursuant to
Section 6.6.1(b)) or the Capital Expenditure Account as required under this
Agreement, Borrower may deliver to Lender a guaranty of one or more such
amounts from Reserve Guarantor in the form attached hereto as Schedule 6.11
(the "Reserve Guaranty"); provided that, throughout the term of such Reserve
Guaranty, (x) the Tangible Net Worth of Reserve Guarantor remains at least One
Hundred Million and No/100 Dollars ($100,000,000.00) (the "Required Net
Worth"), (y) the Guarantied Obligations shall not exceed, in the aggregate,
liability in excess of 10% of the Outstanding Principal Balance, and (z)
Reserve Guarantor's debt-to-equity ratio shall be no greater than 65%.

            (b)        In the event that at any time after a Reserve Guaranty
has been delivered, the Reserve Guarantor's Tangible Net Worth is reduced
below the Required Net Worth and/or Guarantor's debt-to-equity ratio shall be
greater than 65% (in either case which non-compliance continues for a period
of twenty-nine (29) days following Lender's receipt of Reserve Guarantor's
quarterly financial statements pursuant to the Reserve Guaranty indicating
Reserve Guarantor's failure to achieve the Required Net Worth) Borrowers shall
deposit into the Required Repairs Account, the Capital Expenditure Account
and/or the Rollover Account, as applicable, within ten (10) Business Days
after receipt of notice from Lender an amount reasonably determined by Lender
to be equal to all amounts which would have then been on deposit in the
Required Repairs Account, the Capital Expenditure Account and/or the Rollover
Account, as applicable, since the Closing Date had the foregoing waiver of
deposits not been in effect, less all amounts that would have been payable by
a disbursement from such Required Repairs Account, Capital Expenditure Account
and/or Rollover Account, as applicable, and thereafter, subject to the terms
and provisions of Sections 6.2.1, 6.5.1 and 6.6.1 hereof, Borrowers shall
commence making deposits into the Required Repairs Account, the Capital
Expenditure Account and the Rollover Account so long as the Tangible Net Worth
of Guarantor is less than the Required Net Worth and/or Reserve Guarantor's
debt-to-equity ratio shall be greater than 65%.

            (c)        In the event that (but only for so long as) the
Guaranteed Obligations exceed, in the aggregate, ten percent (10%) of the
Outstanding Principal Balance (such excess amount, the "Reserve Guaranty
Excess"), Borrowers shall no longer be entitled to provide a Reserve Guaranty
in lieu of making any required payments to such accounts to the extent of such
Reserve Guaranty Excess, and Borrowers shall, on the next succeeding Business
Day (a) promptly deposit cash into the Required Repairs Account, the Rollover
Account and/or the Capital Expenditure Account, as the case may be, as
otherwise provided in this Article 6, in the amount of the Reserve Guaranty
Excess, or (b) promptly deliver to Lender a Letter of Credit in lieu of such
cash deposits into such accounts, which Letter of Credit shall satisfy the
requirements of Section 6.10 of this Agreement. Any calculations made by
Lender with respect

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to calculations of any Reserve Guaranty Excess shall be made in Lender's
reasonable determination and such determination shall be conclusive upon
Borrower.

            (d)        If, at any time following Reserve Guarantor's cash
deposits into the Required Repairs Account, the Rollover Account (other than
deposits required pursuant to Section 6.6.1(b)) or the Capital Expenditure
Account or delivery of a Letter of Credit in lieu thereof, Borrower becomes
entitled to deliver a Reserve Guaranty in substitution for such cash reserves,
either in whole or in part, Lender shall refund to Borrower any such reserves,
or portion thereof, for which the Reserve Guaranty has been delivered.

                                   ARTICLE 7
                              PROPERTY MANAGEMENT
                              -------------------

      7.1   The Management Agreements.

      Each Borrower shall (i) cause Manager to manage the Property owned by
such Borrower in accordance with a Management Agreement, (ii) diligently
perform and observe all of the material terms, covenants and conditions of
such Management Agreement on the part of such Borrower to be performed and
observed, (iii) promptly notify Lender of any default under such Management
Agreement of which it is aware, (iv) promptly deliver to Lender a copy of each
financial statement, business plan, capital expenditures plan, report and
estimate received by it under such Management Agreement, and (v) promptly
enforce the performance and observance of all of the covenants required to be
performed and observed by Manager under such Management Agreement. If any
Borrower shall default in the performance or observance of any material term,
covenant or condition of the applicable Management Agreement on the part of
such Borrower to be performed or observed, then, without limiting Lender's
other rights or remedies under this Agreement or the other Loan Documents, and
without waiving or releasing such Borrower from any of its Obligations
hereunder or under such Management Agreement, Lender shall have the right, but
shall be under no obligation, to pay any sums and to perform any act as may be
appropriate to cause all the material terms, covenants and conditions of such
Management Agreement on the part of such Borrower to be performed or observed.

      7.2   Prohibition Against Termination or Modification.

      No Borrower shall (i) surrender, terminate, cancel, modify, renew or
extend the Management Agreement, (ii) enter into any other agreement relating
to the management or operation of any Property with Manager or any other
Person, (iii) consent to the assignment by the Manager of its interest under
any Management Agreement, or (iv) waive or release any of its rights and
remedies under any Management Agreement, in each case without the express
consent of Lender, which consent shall not be unreasonably withheld; provided,
however, with respect to a new manager such consent may be conditioned upon
Borrowers delivering a Rating Agency Confirmation as to such new manager and
management agreement. If at any time Lender consents to the appointment of a
new manager, such new manager and Borrowers shall, as a condition of Lender's
consent, execute a subordination of management agreement in the form delivered
in connection with the closing of the Loan.

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      7.3   Replacement of Manager.

      Lender shall have the right to require Borrowers to replace the Manager
with a Person chosen by Borrowers and approved by Lender upon the occurrence
of any one or more of the following events: (i) at any time following the
occurrence and during the continuance of a monetary Event of Default, (ii) if
Manager shall be in default under any material term of any Management
Agreement beyond any applicable notice and cure period, or (iii) if Manager
shall become insolvent or a debtor in any bankruptcy or insolvency proceeding.

                                   ARTICLE 8
                              PERMITTED TRANSFERS
                              -------------------

      8.1   Permitted Transfer of the Properties. Lender shall not withhold
its consent to the one-time conveyance of any Property to a Permitted
Transferee provided that (a) Lender has received a Rating Agency Confirmation
as to the conveyance of such Property to the Permitted Transferee, (b) Lender
has received an agreement, acceptable to it in its sole discretion, pursuant
to which such Permitted Transferee assumes all of the applicable Borrower's
obligations under the Loan Documents, (c) Lender receives a transfer fee equal
to 1% of the original amount of the Loan, (d) Lender shall have received such
documents, certificates and legal opinions as it may reasonably request, (e)
no Event of Default or event which with the giving of notice or the passage of
time or both would constitute an Event of Default shall have occurred and
remain uncured; (f) the Permitted Transferee and its property manager shall
have sufficient experience in the ownership and management of properties
similar to such Property, and Lender shall be provided with reasonable
evidence thereof (and Lender reserves the right to approve the Permitted
Transferee without approving the substitution of the property manager); (h)
the Permitted Transferee shall have executed and delivered to Lender an
assumption agreement in form and substance acceptable to Lender, evidencing
such Permitted Transferee's agreement to abide and be bound by the terms of
the Note, this Agreement and the other Loan Documents, together with such
legal opinions and title insurance endorsements as may be reasonably requested
by Lender; and (i) Lender may, as a condition to evaluating any requested
consent to a transfer, require that Borrowers post a cash deposit with Lender
in an amount equal to Lender's anticipated costs and expenses in evaluating
any such request for consent. Notwithstanding the foregoing, (i) no transfer
fee shall be payable pursuant to this Section 8.1 in connection with the
transfer of the Properties to the Australian Joint Venture Partner or the
Alternate Joint Venture Partner pursuant to the Joint Venture Closing and (ii)
a reduced transfer fee equal to 0.5% of the original principal amount of the
Loan shall be payable in connection with the first two transfers of the
Properties from the Australian Joint Venture Partner or the Alternate Joint
Venture Partner, as the case may be, to a third party Permitted Transferee.

      8.2   Permitted Transfers of Interest in Borrowers.

            (a)        Notwithstanding anything to the contrary contained in
Section 4.2.1, the following Transfers ("Permitted Transfers") shall be deemed
to be permitted hereunder without the consent of Lender:

                       (i)    provided that no Default or Event of Default
      shall have occurred and remain uncured, a Transfer of a direct or
      indirect interest in any Borrower, provided

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<PAGE>

      that (A) such Transfer shall not (y) cause the transferee (together with
      its Affiliates) to acquire Control of such Borrower or Sole Member or to
      increase its direct or indirect interest in such Borrower or in Sole
      Member to an amount which equals or exceeds forty-nine percent (49%), or
      (z) result in such Borrower or in Sole Member no longer being Controlled
      by the Key Principal, (B) after giving effect to such Transfer, Key
      Principal shall continue to own at least fifty-one percent (51%) of all
      equity interests (direct or indirect) in such Borrower and/or Sole
      Member, (C) such Borrower shall give Lender notice of such Transfer
      together with copies of all instruments effecting such Transfer not less
      than ten (10) days prior to the date of such Transfer, and (D) the legal
      and financial structure of such Borrower and its members or partners, as
      applicable, and the single purpose nature and bankruptcy remoteness of
      such Borrower and its members or partners, as applicable, after such
      Transfer, shall satisfy Lender's then current applicable underwriting
      criteria and requirements;

                       (ii)   provided that no Default or Event of Default
      shall have occurred and remain uncured, a Transfer of a direct or
      indirect interest in any Borrower or in Sole Member which shall cause
      the transferee (together with its Affiliates) to increase its direct or
      indirect interest in such Borrower or in Sole Member to an amount which
      equals or exceeds forty-nine percent (49%) or shall result in a change
      of Control of such Borrower, provided that (A) if such Transfer occurs
      prior to a Securitization, such Transfer is first approved by Lender in
      writing in its sole and absolute discretion, and (B) if such Transfer
      occurs after a Securitization, such Borrower, at Borrowers' sole cost
      and expense, shall first deliver (or cause to be delivered) (y) a Rating
      Agency Confirmation to Lender that such Transfer will not result in a
      qualification, downgrade or withdrawal of the then applicable ratings,
      and (z) a substantive non-consolidation opinion to Lender and the Rating
      Agencies with respect to such Borrower and such transferee in form and
      substance satisfactory to Lender and the Rating Agencies;

                       (iii)  provided that no Default or Event of Default
      shall have occurred and remain uncured, a Transfer of an indirect
      interest in any Borrower or in Sole Member that occurs by maintenance,
      devise or bequest or by operation of law upon the death of a natural
      person that was the holder of such interest to a member of the immediate
      family of such interest holder or a trust established for the benefit of
      such immediate family member, provided that (A) no such Transfer shall
      result in a change of the day-to-day operations of the Property, (B)
      such Borrower shall give Lender notice of such Transfer together with
      copies of all instruments effecting such Transfer not less than ten (10)
      days after the date of such Transfer, (C) the legal and financial
      structure of such Borrower and its members or partners, as applicable,
      and the single purpose nature and bankruptcy remoteness of such Borrower
      and its members or partners, as applicable after such Transfer, shall
      satisfy Lender's then current applicable underwriting criteria and
      requirements, (D) if any such Transfer would result in a change of
      Control of such Borrower or Sole Member and occurs prior to
      Securitization, such Transfer is approved by Lender in writing in its
      sole and absolute discretion within thirty (30) days after any such
      Transfer, and (E) if any such Transfer would result in a change of
      Control of such Borrower or Sole Member and occurs after Securitization,
      such Borrower, at Borrowers' sole cost and expense, shall, within thirty
      (30) days after any such Transfer, (y) deliver (or cause to be
      delivered) (I) a Rating Agency Confirmation to Lender that such Transfer

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<PAGE>

      will not result in a qualification, downgrade or withdrawal of the then
      applicable ratings, and (II) a substantive non-consolidation opinion to
      Lender and the Rating Agencies with respect to such Borrower and such
      transferee in form and substance satisfactory to Lender and the Rating
      Agencies, and (z) obtain the prior written consent of Lender, which
      shall not be unreasonably withheld; and

                       (iv)   provided that no Default or Event of Default
      shall have occurred and remain uncured, a Transfer of a direct or
      indirect interest in Borrowers to Australia Sole Member or the
      Australian Joint Venture Partner pursuant to the Australian Joint
      Venture Closing provided that each of the following conditions precedent
      shall have been satisfied:

                              (A)    Lender shall have received a new non-
            consolidation opinion and confirmations in writing from the Rating
            Agencies to the effect that such Transfer will not result in a
            re-qualification, reduction or withdrawal of any rating initially
            assigned or to be assigned in a Secondary Market Transaction;

                              (B)    Provided it shall qualify as an
            Acceptable Lease Guarantor, Carveout Guarantor, Environmental
            Indemnitor and/or Reserve Guarantor, the Australian Joint Venture
            Partner shall have assumed the obligations of the applicable
            Guarantor under the Lease Guaranties, the Carveout Guaranty,
            Environmental Indemnity and/or the Reserve Guaranty and in
            connection therewith shall have executed and delivered to Lender,
            without any cost or expense to Lender, new guaranty or indemnity
            agreements in the same form as the current Lease Guaranties,
            Carveout Guaranty, Environmental Indemnity and Reserve Guaranty,
            and shall have obtained and delivered to Lender such legal
            opinions as may be reasonably requested by Lender in connection
            therewith; provided that upon such assumption by the Australian
            Joint Venture Partner in accordance with the terms hereof, ROP
            shall be released from liability under such guarantees and
            indemnities to the extent contemplated herein; and

                              (C)    Lender shall have received notice of such
            Transfer together with copies of all instruments effecting such
            Transfer not less than ten (10) days after the date of such
            Transfer.

                       (v)    provided that no Default or Event of Default
      shall have occurred and remain uncured, a Transfer of a direct or
      indirect interest in Borrowers to an Alternate Joint Venture Partner
      pursuant to an Alternate Joint Venture Closing; provided that each of
      the following conditions precedent shall have been satisfied:

                              (A)    the Alternate Joint Venture Partner is a
            Permitted Transferee;

                              (B)    RA or ROP or one of their respective
            controlled Affiliates shall act as a managing member or a general
            partner of the Alternate Joint Venture Partner;

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<PAGE>

                              (C)    the Alternate Joint Venture Partner and
            its property manager shall have sufficient experience in the
            ownership and management of properties similar to the Properties,
            and Lender shall be provided with reasonable evidence thereof (and
            Lender reserves the right to approve the Alternate Joint Venture
            Partner without approving the substitution of the property
            manager);

                              (D)    Lender shall have received a new non-
            consolidation opinion and confirmations in writing from the Rating
            Agencies to the effect that such Transfer will not result in a
            re-qualification, reduction or withdrawal of any rating initially
            assigned or to be assigned in a Secondary Market Transaction;

                              (E)    the Alternate Joint Venture Partner shall
            have executed and delivered to Lender an assumption agreement in
            form and substance acceptable to Lender, evidencing the Alternate
            Joint Venture Partner's agreement to abide and be bound by the
            terms of the Loan Documents, and shall have delivered to Lender
            such legal opinions and title insurance endorsements as may be
            reasonably requested by Lender;

                              (F)    a Person or Persons associated with the
            Alternate Joint Venture Partner approved by Lender, in its
            reasonable discretion, shall have assumed the obligations of the
            applicable Guarantor under the Lease Guaranties, the Carveout
            Guaranty, Environmental Indemnity and/or the Reserve Guaranty and
            in connection therewith shall have executed and delivered to
            Lender, without any cost or expense to Lender, new guaranty or
            indemnity agreements in the same form as the current Lease
            Guaranties, Carveout Guaranty, Environmental Indemnity and Reserve
            Guaranty, and shall have obtained and delivered to Lender such
            legal opinions as may be reasonably requested by Lender in
            connection therewith; provided that upon such assumption by such
            Person or Persons associated with the Alternate Joint Venture
            Partner in accordance with the terms hereof, ROP shall be released
            from liability under such guarantees and indemnities to the extent
            contemplated herein; provided, further, however, that if no Person
            associated with Alternate Joint Venture Partner is approved by
            Lender in its reasonable discretion, ROP shall continue to be
            liable as Guarantor under the Lease Guaranties, the Carveout
            Guaranty, Environmental Indemnity and the Reserve Guaranty in
            accordance with the terms thereof; and

                              (G)    Lender shall have received notice of such
            Transfer together with copies of all instruments effecting such
            Transfer not less than ten (10) days after the date of such
            Transfer.

                       (vi)   Notwithstanding the foregoing, whether before or
      after a Joint Venture Closing, nothing contained in this Agreement or
      the other Loan Documents shall in any way restrict or prohibit, nor
      shall any notice to Lender or consent of Lender be required in
      connection with (I) the Transfer or issuance of any securities or any
      direct or indirect interests in any direct or indirect owner of
      Borrowers that is publicly traded on a national exchange (including, for
      so long as it is an indirect owner of Borrowers, RA), or (II) the merger
      or consolidation of RA with or into, or sale of RA to, any other Person

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<PAGE>

      (each, an "RA Transfer" and, collectively, the "RA Transfers");
      provided, however, that, if any RA Transfer or series of related RA
      Transfers (other than the sale of publicly traded shares in RA in the
      ordinary course of business) shall result in a change in Control of RA
      at any time prior to a Joint Venture Closing, then Lender's prior
      written consent (not to be unreasonably withheld or delayed) shall be
      required (and, after a Securitization, a Rating Agency Confirmation
      shall be required) in connection with such RA Transfer unless after
      giving effect to such RA Transfer, RA (or the successor entity thereto)
      shall be (i) a reputable Person of good character, creditworthy and with
      sufficient financial worth considering the obligations and covenants
      assumed and undertaken (with Lender agreeing that a Tangible Net Worth
      of $250,000,000 shall be acceptable), as evidenced by financial
      statements and other information reasonably requested by Lender, and
      (ii) a Person which has substantial experience and expertise relating to
      owning, operating and leasing commercial real estate and which is
      qualified to own, operate and lease the Properties. In addition,
      notwithstanding the foregoing, whether before or after a Joint Venture
      Closing, nothing contained in this Agreement or the other Loan Documents
      shall in any way restrict or prohibit, nor shall any notice to Lender or
      consent of Lender be required in connection with (aa) the Transfer or
      issuance of any direct or indirect interests in ROP, (bb) the merger or
      consolidation of ROP with or into any other Person; provided, however,
      that, immediately after giving effect to each such Transfer, RA (or any
      successor entity permitted above) shall, prior to a Joint Venture
      Closing, continue to be the managing general partner of ROP, and RA (or
      any successor entity permitted above) shall Control the business and
      operations of ROP, regardless of the percentage of equity interests in
      ROP owned by RA (or any successor entity permitted above), or (cc)
      Transfers of direct or indirect interests in Borrowers among existing
      holders of direct or indirect interests in Borrowers, provided that at
      all times such existing holders of direct or indirect interests shall be
      directly or indirectly wholly-owned by ROP.

                       (vii)  From and after an Australian Joint Venture
      Closing, and notwithstanding the foregoing, nothing contained in this
      Agreement or the other Loan Documents shall in any way restrict or
      prohibit, nor shall any notice to Lender or consent of Lender be
      required in connection with (I) the Transfer or issuance of any
      securities or any direct or indirect interests in any direct or indirect
      owner of Borrowers that is publicly traded on a national exchange
      (including, for so long as it is an indirect owner of Borrowers, the
      Australian Trust), or (II) the merger or consolidation of The Australian
      Trust with or into, or the sale of the Australian Trust to, any other
      Person (each, an "Australian Trust Transfer" and, collectively, the
      "Australian Trust Transfers"); provided, however, that, if any
      Australian Trust Transfer or series of related Australian Trust
      Transfers (other than the sale of publicly traded shares in the
      Australian Trust in the ordinary course of business) shall result in a
      change in Control of the Australian Trust at any time while the
      Australian Trust Controls (directly or indirectly) Borrower, then
      Lender's prior written consent (not to be unreasonably withheld or
      delayed) shall be required (and, after a Securitization, a Rating Agency
      Confirmation shall be required) in connection with such Australian Trust
      Transfer unless after giving effect to such Australian Trust Transfer,
      the Australian Trust (or the successor entity thereto) shall be (i) a
      reputable Person of good character, creditworthy and with sufficient
      financial worth considering the obligations and covenants assumed and
      undertaken (with Lender agreeing that a Tangible Net Worth of
      $200,000,000 shall be acceptable), as evidenced by

                                      80
<PAGE>

      financial statements and other information reasonably requested by
      Lender, and (ii) a Person that has substantial experience and expertise
      relating to owning, operating and leasing commercial real estate and
      which is qualified to own, operate and lease the Properties. In
      addition, notwithstanding the foregoing, nothing contained in this
      Agreement or the other Loan Documents shall in any way restrict or
      prohibit, nor shall any notice to Lender or consent of Lender be
      required in connection with (aa) the Transfer or issuance of any direct
      or indirect interests in the Australia Sole Member, (bb) the merger or
      consolidation of Australia Sole Member with or into any other Person;
      provided, however, that, immediately after giving effect to each such
      Transfer, the Australian Joint Venture Partner or the Australian Trust
      (or any successor entity permitted above) shall be or continue to be the
      managing member of the Australia Sole Member, and the Australian Trust
      (or any successor entity permitted above) shall Control, directly or
      indirectly, the business and operations of the Australia Sole Member,
      regardless of the percentage of equity interests in the Australia Sole
      Member owned by the Australian Trust (or any successor entity permitted
      above), or (cc) Transfers of direct or indirect interests in Borrowers
      among existing holders of direct or indirect interests in Borrowers,
      provided that at all times such existing holders of direct or indirect
      interests shall be directly or indirectly wholly-owned by the Australia
      Sole Member.

            (b)        For purposes of this Section 8.2, "Control" shall mean
(a) the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of a Person, whether through
ownership of voting securities, by contract or otherwise, or (b) the
ownership, direct or indirect, of no less than fifty one percent (51%) of the
voting securities of such Person, and the terms Controlled, Controlling and
Common Control shall have correlative meanings.

      8.3   Cost and Expenses. Borrowers shall pay all third-party costs and
expenses of Lender in connection with any Transfer, whether or not such
Transfer is deemed to be a Permitted Transfer, including, without limitation,
all fees and expenses of Lender's counsel, whether internal or outside, and
the cost of any required counsel opinions related to REMIC or other
securitization or tax issues.

                                   ARTICLE 9
                      SALE AND SECURITIZATION OF MORTGAGE
                      -----------------------------------

      9.1   Sale of Mortgage and Securitization.

            (a)        Lender shall have the right (i) to sell or otherwise
transfer the Loan or any portion thereof as a whole loan, (ii) to sell
participation interests in the Loan, or (iii) to securitize the Loan or any
portion thereof in a single asset securitization or a pooled loan
securitization. (The transactions referred to in clauses (i), (ii) and (iii)
shall hereinafter be referred to collectively as "Secondary Market
Transactions" and the transactions referred to in clause (iii) shall
hereinafter be referred to as a "Securitization". Any certificates, notes or
other securities issued in connection with a Securitization are hereinafter
referred to as "Securities").

            (b)        If requested by Lender, Borrowers shall assist Lender,
at Lender's expense (provided that Borrower shall be liable for its own
external expenses), in satisfying the market

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<PAGE>

standards to which Lender customarily adheres or which may be required in the
marketplace or by the Rating Agencies in connection with any Secondary Market
Transactions, including to:

                       (i)    (A) provide updated financial and other
      information with respect to each of the Properties, the business
      operated at each of the Properties, Borrowers and the Manager, (B)
      provide updated budgets relating to each of the Properties, and (C)
      provide updated appraisals, market studies, environmental reviews (Phase
      I's and, if appropriate, Phase II's), property condition reports and
      other due diligence investigations of each of the Properties each, at
      Lender's expense (the "Updated Information"), together, if customary,
      with appropriate verification of the Updated Information through letters
      of auditors or opinions of counsel acceptable to Lender and the Rating
      Agencies;

                       (ii)   provide opinions of counsel, which may be relied
      upon by Lender, the Rating Agencies and their respective counsel, agents
      and representatives, as to non-consolidation, fraudulent conveyance and
      true sale or any other opinion customary in Secondary Market
      Transactions or required by the Rating Agencies with respect to each of
      the Properties and Borrowers and their Affiliates, which counsel and
      opinions shall be satisfactory to Lender and the Rating Agencies;

                       (iii)  provide updated, as of the closing date of the
      Secondary Market Transaction, representations and warranties made in the
      Loan Documents and such additional representations and warranties as the
      Rating Agencies may require; and

                       (iv)   execute amendments to the Loan Documents and to
      each Borrower's organizational documents reasonably requested by Lender;
      provided, however, that no Borrower shall be required to modify or amend
      any Loan Document if such modification or amendment would (A) change the
      interest rate, the stated maturity or the amortization of principal as
      set forth herein or in the Note, or (B) modify or amend any other
      material economic term of the Loan.

            (c)        If requested by Lender, each Borrower shall provide
Lender with the following financial statements (it being understood that
Lender shall request (i) full financial statements if it anticipates that the
principal amount of the Loan at the time of a Securitization may, or if the
principal amount of the Loan at any time during which the Loan is included in
a Securitization does, equal or exceed twenty percent (20%) of the aggregate
principal amount of all mortgage loans included in the Securitization, and
(ii) summaries of such financial statements if the principal amount of the
Loan at any such time equals or exceeds ten percent (10.0)% of such aggregate
principal amount) (all references to Regulation S-X in this Section 9.1(c)
referring to Regulation S-X of the Securities Act):

                       (i)    As of the Closing Date, a balance sheet with
      respect to each of the Properties for the two most recent Fiscal Years
      or for such shorter owned period, meeting the requirements of Section
      210.3-01 of Regulation S-X, and statements of income and statements of
      cash flows with respect to each of the Properties for the three most
      recent Fiscal Years or for such shorter owned period, meeting the
      requirements of Section 210.3-02 of Regulation S-X, and, to the extent
      that such balance sheet is more than 135 days old as of the Closing
      Date, interim financial statements of each of the Properties

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<PAGE>

      meeting the requirements of Section 210.3-01 and 210.3-02 of Regulation
      S-X (all of such financial statements, collectively, the "Standard
      Statements"); provided, however, that if any Property would be deemed to
      constitute a business and not real estate under Regulation S-X that has
      been acquired by each Borrower from an unaffiliated third party, as to
      which the other conditions set forth in Section 210.3-05 of Regulation
      S-X for provision of financial statements in accordance with such
      Section have been met, at Lender's election in lieu of or in addition to
      the Standard Statements otherwise required by this Section 9.1(c)(i),
      each Borrower shall instead provide the financial statements required by
      such Section 210.3-05 of Regulation S-X ("Acquired Property
      Statements").

                       (ii)   Not later than forty-five (45) days after the
      end of each fiscal quarter following the Closing Date, a balance sheet
      of each of the Properties as of the end of such fiscal quarter, meeting
      the requirements of Section 210.3-01 of Regulation S-X, and statements
      of income and statements of cash flows of each of the Properties for the
      period commencing on the day following the last day of the most recent
      Fiscal Year and ending on the date of such balance sheet and for the
      corresponding period of the most recent Fiscal Year, meeting the
      requirements of Section 210.3-02 of Regulation S-X (provided, that if
      for such corresponding period of the most recent Fiscal Year Acquired
      Property Statements were permitted to be provided hereunder pursuant to
      paragraph (i) above, each Borrower shall instead provide Acquired
      Property Statements for such corresponding period). If requested by
      Lender, each Borrower shall also provide "summarized financial
      information," as defined in Section 210.1-02(bb) of Regulation S-X, with
      respect to such quarterly financial statements.

                       (iii)  Not later than ninety (90) days after the end of
      each Fiscal Year following the Closing Date, a balance sheet of each of
      the Properties as of the end of such Fiscal Year, meeting the
      requirements of Section 210.3-01 of Regulation S-X, and statements of
      income and statements of cash flows of each of the Properties for such
      Fiscal Year, meeting the requirements of Section 210.3-02 of Regulation
      S-X. If requested by Lender, each Borrower shall provide summarized
      financial information with respect to such annual financial statements.

                       (iv)   Upon ten (10) Business Days after notice from
      Lender in connection with the Securitization of the Loan, such
      additional financial statements, such that, as of the date (each a
      "Disclosure Document Date") of each Disclosure Document, each Borrower
      shall have provided Lender with all financial statements as described in
      paragraph (i) above; provided that the Fiscal Year and interim periods
      for which such financial statements shall be provided shall be
      determined as of such Disclosure Document Date.

                       (v)    In the event Lender determines, in connection
      with a Securitization, that the financial statements required in order
      to comply with Regulation S-X or any Legal Requirements are other than
      as provided herein, then notwithstanding the provisions of this Section,
      Lender may request, and each Borrower shall promptly provide, such
      combination of Acquired Property Statements and/or Standard Statements
      as may be necessary for such compliance.

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<PAGE>

                       (vi)   Any other or additional financial statements, or
      financial, statistical or operating information, as shall be required
      pursuant to Regulation S-X or other Legal Requirements in connection
      with any Disclosure Document or any filing under or pursuant to the
      Exchange Act in connection with or relating to a Securitization
      (hereinafter an "Exchange Act Filing") or as shall otherwise be
      requested by Lender to meet disclosure, rating agency or marketing
      requirements.

All financial statements provided by Borrowers pursuant to this Section 9.1(c)
shall be prepared in accordance with the cash basis method of accounting, and
shall meet the requirements of Regulation S-X and other applicable Legal
Requirements. All financial statements relating to a Fiscal Year shall be
audited by independent accountants in accordance with generally accepted
auditing standards, Regulation S-X and all other applicable Legal
Requirements, shall be accompanied by the manually executed report of the
independent accountants thereon, which report shall meet the requirements of
Regulation S-X and all other applicable Legal Requirements, and shall be
further accompanied by a manually executed written consent of the independent
accountants, in form and substance acceptable to Lender, to the inclusion of
such financial statements in any Disclosure Document and any Exchange Act
Filing and to the use of the name of such independent accountants and the
reference to such independent accountants as "experts" in any Disclosure
Document and Exchange Act Filing, all of which shall be provided at the same
time as the related financial statements are required to be provided. All
other financial statements shall be certified by the chief financial officer
of such Borrower, which certification shall state that such financial
statements meet the requirements set forth in the first sentence of this
paragraph.

To the extent the cost of fulfilling the foregoing provisions of this Section
9.1(c) shall exceed the general accounting costs to Borrower plus the costs of
Borrower in complying with the Loan Documents but for the inclusion of the
reporting required pursuant to Section 9.1(c), the same shall be at the cost
of Lender.

Notwithstanding the foregoing provisions of this Section 9.1(c), if the entire
Loan is included in a Securitization in which no classes of Securities are
offered in a transaction registered with the Securities and Exchange
Commission, (a) the quarterly statements required pursuant to Section
9.1(c)(ii) may be delivered not later than sixty (60) days after the end of
each fiscal quarter, (b) the annual financial statements required pursuant to
Section 9.1(c)(iii) may be delivered not later than ninety (90) days after the
end of each Fiscal Year and (c) the financial statements required pursuant to
this Section 9.1(c) may be prepared on the income tax basis of accounting,
provided a notation is made setting forth the difference between the income
tax basis of accounting and generally accepted account principles and the
effect thereof on such financial statements.

All third party costs and expenses incurred by Lender in connection with the
Securitization or other sale or transfer of the Loan not otherwise payable by
Borrower under the Loan Documents and all additional reasonable third party
costs and expenses, including reasonable counsel and accountant's fees and
expenses, incurred by Borrower in connection with the Securitization or other
sale or transfer of the Loan shall be paid by Lender.

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      9.2   Securitization Indemnification.

            (a)        Each Borrower understands that information provided to
Lender by each Borrower and its agents, counsel and representatives may be
included in disclosure documents in connection with the Securitization,
including an offering circular, a prospectus, prospectus supplement, private
placement memorandum or other offering document (each, a "Disclosure
Document") and may also be included in filings with the Securities and
Exchange Commission pursuant to the Securities Act of 1933, as amended (the
"Securities Act"), or the Securities and Exchange Act of 1934, as amended (the
"Exchange Act"), and may be made available to investors or prospective
investors in the Securities, the Rating Agencies and service providers
relating to the Securitization.

            (b)        Borrowers shall provide in connection with each of (i)
a preliminary and a final private placement memorandum or (ii) a preliminary
and final prospectus or prospectus supplement, as applicable, an agreement (A)
certifying that such Borrower has examined such Disclosure Documents specified
by Lender and that each such Disclosure Document, as it relates to each
Borrower, each Borrower's Affiliates, each of the Properties, Manager and all
other aspects of the Loan, does not, and as to information provided in third
party reports of engineers and environmental consultants, to Borrower's actual
knowledge, contain any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements made, in light of the
circumstances under which they were made, not misleading, (B) indemnifying
Lender (and for purposes of this Section 9.2, Lender hereunder shall include
its officers and directors), the Affiliate of UBS ("UBS") that has filed the
registration statement relating to the Securitization (the "Registration
Statement"), each of its directors, each of its officers who have signed the
Registration Statement and each Person that controls the Affiliate within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
(collectively, the "UBS Group"), and UBS, and any other placement agent or
underwriter with respect to the Securitization, each of their respective
directors and each Person who controls UBS or any other placement agent or
underwriter within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act (collectively, the "Underwriter Group") for any losses,
claims, damages or liabilities (collectively, the "Liabilities") to which
Lender, the UBS Group or the Underwriter Group may become subject insofar as
the Liabilities arise out of, or are based upon, any untrue statement or
alleged untrue statement of any material fact contained in such sections or
arise out of, or are based upon, the omission or alleged omission to state
therein a material fact required to be stated in such sections or necessary in
order to make the statements in such sections, in light of the circumstances
under which they were made, not misleading, and (C) agreeing to reimburse
Lender, the UBS Group and/or the Underwriter Group for any legal or other
expenses reasonably incurred by Lender, the UBS Group and/or the Underwriter
Group in connection with investigating or defending the Liabilities; provided,
however, that Borrowers will be liable in any such case under clauses (B) or
(C) above only to the extent that any such Liability arises out of, or is
based upon, any such untrue statement or omission made therein in reliance
upon, and in conformity with, information furnished to Lender by or on behalf
of any Borrower in connection with the preparation of the Disclosure Document
or in connection with the underwriting or closing of the Loan, including
financial statements of any Borrower, operating statements and rent rolls with
respect to each of the Properties. This indemnity agreement will be in
addition to any liability which Borrowers may otherwise have.

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            (c)        In connection with any Exchange Act Filing, each
Borrower shall (i) indemnify Lender, the UBS Group and the Underwriter Group
for Liabilities to which Lender, the UBS Group and/or the Underwriter Group
may become subject insofar as the Liabilities arise out of, or are based upon,
the omission or alleged omission to state in the Disclosure Document a
material fact required to be stated in the Disclosure Document in order to
make the statements in the Disclosure Document, in light of the circumstances
under which they were made, not misleading, and (ii) reimburse Lender, the UBS
Group and/or the Underwriter Group for any legal or other expenses reasonably
incurred by Lender, the UBS Group and/or the Underwriter Group in connection
with defending or investigating the Liabilities; provided, however, that
Borrowers will be liable in any such case under clauses (i) or (ii) above only
to the extent that any such loss claim, damage or liability arises out of or
is based upon any such untrue statement or omission made therein in reliance
upon and in conformity with information furnished to Lender by or on behalf of
Borrowers in connection with the preparation of the Disclosure Document or in
connection with the underwriting or closing of the Loan, including, without
limitation, financial statements of Borrowers, operating statements and rent
rolls with respect to the Property. This indemnity agreement shall not apply
to any loss, liability, claim, damage or expense to the extent arising out of
any untrue statement or omission or alleged untrue statement or omission made
in reliance upon and in conformity with written information furnished to
Borrowers by Lender, any member of the UBS Group or any member of the
Underwriter Group expressly for use in the Disclosure Document. The foregoing
indemnity with respect to any untrue statement contained in or omission from a
preliminary private placement memorandum or preliminary prospectus shall not
inure to the benefit of any member of the Underwriting Group (or any person
controlling such member of the Underwriting Group) from whom the Person
asserting any such loss, liability, claim, damage or expense purchased any of
the Securities which are the subject thereof if Borrowers shall sustain the
burden of proving that any such loss, liability, claim, damage or expense
resulted from the fact that such Person was not sent or given a copy of the
final private placement memorandum or final prospectus at or prior to the
written confirmation of the sale of such Security to such Person and the loss,
liability, claim, damage or expense resulted from an untrue statement
contained in or omission from such preliminary private placement memorandum or
preliminary prospectus that was corrected in the final private placement
memorandum or final prospectus.

            (d)        In connection with the performance of Borrower's
obligations under this Section 9.2, Lender hereby agrees that it shall use
reasonable good faith efforts to deliver or cause to be delivered to Borrowers
a draft of each of the Disclosure Documents, the Registration Statement and
other documents relating to a proposed Securitization and requiring Borrower's
review pursuant to the terms of this Agreement, in each case on or before the
fifth (5th) Business Day prior to the date on which Borrowers are required to
execute and deliver Borrowers' indemnification certificate described above in
subparagraph (b).

            (e)        Lender agrees to indemnify and hold harmless each
Borrower, each of its directors and each Person who Controls Borrower (the
"Borrower Group") against any and all losses, claims, damages or liabilities,
joint or several, to which the Borrower Group may become subject, under the
Securities Act or otherwise, and will reimburse the Borrower Group for any
legal or other expenses reasonably incurred by the Borrower Group in
connection with investigating or defending any such loss, claim, damage,
liability or action, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon

                                      86
<PAGE>

any untrue statement or alleged untrue statement of any material fact
contained in a Disclosure Document or arise out of or are based upon the
omission or the alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, but only to the
extent that such untrue statement or alleged untrue statement or omission or
alleged omission relates to information that does not accurately reflect
Provided Information.

            (f)        Promptly after receipt by an indemnified party under
this Section 9.2 of notice of the commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against the
indemnifying party under this Section 9.2, notify the indemnifying party in
writing of the commencement thereof, but the omission to so notify the
indemnifying party will not relieve the indemnifying party from any liability
which the indemnifying party may have to any indemnified party hereunder
except to the extent that failure to notify causes prejudice to the
indemnifying party. In the event that any action is brought against any
indemnified party, and it notifies the indemnifying party of the commencement
thereof, the indemnifying party will be entitled, jointly with any other
indemnifying party, to participate therein and, to the extent that it (or
they) may elect by written notice delivered to the indemnified party promptly
after receiving the aforesaid notice from such indemnified party, to assume
the defense thereof with counsel satisfactory to such indemnified party. After
notice from the indemnifying party to such indemnified party under this
Section 9.2, such indemnified party shall pay for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense
thereof other than reasonable costs of investigation; provided, however, if
the defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
that there are any legal defenses available to it and/or other indemnified
parties that are different from or additional to those available to the
indemnifying party, the indemnified party or parties shall have the right to
select separate counsel to assert such legal defenses and to otherwise
participate in the defense of such action on behalf of such indemnified party
at the cost of the indemnifying party. The indemnifying party shall not be
liable for the expenses of more than one separate counsel unless an
indemnified party shall have reasonably concluded that there may be legal
defenses available to it that are different from or additional to those
available to the indemnifying party.

            (g)        In order to provide for just and equitable contribution
in circumstances in which the indemnity agreement provided for in Section
9.2(b) or (c) is for any reason held to be unenforceable as to an indemnified
party in respect of any Liabilities (or action in respect thereof) referred to
therein which would otherwise be indemnifiable under Section 9.2(b) or (c),
the indemnifying party shall contribute to the amount paid or payable by the
indemnified party as a result of such Liabilities (or action in respect
thereof); provided, however, that no Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation. In determining the amount of contribution to
which the respective parties are entitled, the following factors shall be
considered: (i) UBS's and each Borrower's relative knowledge and access to
information concerning the matter with respect to which the claim was
asserted; (ii) the opportunity to correct and prevent any statement or
omission; and (iii) any other equitable considerations appropriate in the
circumstances. Lender and Borrowers hereby agree that it would not be
equitable if the amount of such contribution were determined by pro rata or
per capita allocation.

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            (h)        The liabilities and obligations of both Borrowers and
Lender under this Section 9.2 shall survive the termination of this Agreement
and the satisfaction and discharge of the Obligations.

      9.3   Intentionally Omitted.

      9.4   Severance Documentation.

      Lender shall have the right, at any time (whether prior to or after any
sale, participation or Securitization of all or any portion of the Loan), to
modify the Loan in order to create one or more senior and subordinate notes
(i.e., an A/B or A/B/C structure) and/or one or more additional components of
the Note or Notes, reduce the number of components of the Note or Notes,
revise the interest rate for each component, reallocate the principal balances
of the Notes and/or the components, increase or decrease the monthly debt
service payments for each component or eliminate the component structure
and/or the multiple note structure of the Loan (including the elimination of
the related allocations of principal and interest payments), provided that the
Outstanding Principal Balance of all components immediately after the
effective date of such modification equals the Outstanding Principal Balance
immediately prior to such modification and the weighted average of the
interest rates for all components immediately after the effective date of such
modification equals the interest rate of the original Note immediately prior
to such modification. At Lender's election, each note comprising the Loan may
be subject to one or more Securitizations. Lender shall have the right to
modify the Note and/or Notes and any components in accordance with this
Section 9.4 and, provided that such modification shall comply with the terms
of this Section 9.4, it shall become immediately effective. If requested by
Lender, Borrowers shall promptly execute an amendment to the Loan Documents to
evidence any such modification; provided that Borrowers shall not be required
to modify or amend any Loan Document if such modification or amendment would
(A) change the interest rate, the stated maturity or the amortization of
principal as set forth herein or in the Note, or (B) modify or amend any other
material term of the Loan adverse to Borrowers.

                                  ARTICLE 10
                                   DEFAULTS
                                   --------

      10.1  Events of Default.

            (a)        Each of the following events shall constitute an event
of default hereunder (each, an "Event of Default"):

                       (i)    if any monthly installment of principal and/or
      interest due under the Note or any payment of Reserve Funds due under
      this Agreement or the payment of the Obligations due on the Maturity
      Date is not paid when due;

                       (ii)   if any other portion of the Obligations (other
      than as set forth in the foregoing clause (i)) is not paid when due and
      such non-payment continues for five (5) Business Days following notice
      to Borrowers that the same is due and payable;

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<PAGE>

                       (iii)  if any of the Taxes or Other Charges are not
      paid prior to becoming delinquent (provided that it shall not be an
      Event of Default if there are sufficient funds in the Tax Account to pay
      such amounts when due, no other Event of Default is then continuing and
      Servicer fails to make such payment in violation of this Agreement);

                       (iv)   if the Policies are not (A) delivered to Lender
      and (B) kept in full force and effect, each in accordance with the terms
      and conditions hereof ;

                       (v)    subject to the provisions of Section 8.1 and
      Section 8.2, if any Borrower breaches or permits or suffers a breach of
      the provisions of Section 4.2.1;

                       (vi)   if any representation or warranty made by any
      Borrower or Guarantor herein or in any other Loan Document, or in any
      report, certificate, financial statement or other instrument, agreement
      or document furnished to Lender, shall have been false or misleading in
      any material respect as of the date such representation or warranty was
      made;

                       (vii)  if any Borrower, Sole Member or Guarantor shall
      make an assignment for the benefit of creditors;

                       (viii) if a receiver, liquidator or trustee shall be
      appointed for any Borrower, Sole Member or Guarantor or if any Borrower,
      Sole Member or Guarantor shall be adjudicated a bankrupt or insolvent,
      or if any petition for bankruptcy, reorganization or arrangement
      pursuant to federal bankruptcy law, or any similar federal or state law,
      shall be filed by or against, consented to, or acquiesced in by, any
      Borrower, Sole Member or Guarantor, or if any proceeding for the
      dissolution or liquidation of any Borrower, Sole Member or Guarantor
      shall be instituted; provided, however, if such appointment,
      adjudication, petition or proceeding was involuntary and not consented
      to by any Borrower, Sole Member or Guarantor, upon the same not being
      discharged, stayed or dismissed within ninety (90) days following its
      filing;

                       (ix)   if any Borrower attempts to assign its rights
      under this Agreement or any of the other Loan Documents or any interest
      herein or therein in contravention of the Loan Documents;

                       (x)    if any of the assumptions contained in the
      Insolvency Opinion, or in any other non-consolidation opinion delivered
      to Lender in connection with the Loan, or in any other non-consolidation
      opinion delivered subsequent to the closing of the Loan, is or shall
      become untrue in any material respect;

                       (xi)   if any Borrower or Sole Member breaches any
      representation, warranty or covenant contained in Section 3.1.24 hereof;

                       (xii)  if any Borrower shall be in default under any
      mortgage or security agreement covering any part of any Property whether
      it be superior or junior in Lien to the Mortgage;

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<PAGE>

                       (xiii) subject to Borrowers' right to contest as
      provided in Section 3.6 of the Mortgage or deliver a guaranty of payment
      acceptable to Lender from Guarantor with respect to any Lien up to
      $250,000, if any of the Properties becomes subject to any mechanic's,
      materialman's or other Lien except a Lien for Taxes not then due and
      payable;

                       (xiv)  if, without Lender's prior written consent, (i)
      any Management Agreement is terminated, (ii) the ownership, management
      or control of Manager is transferred, other than to an Affiliate of
      Borrower (iii) there is a material change in any Management Agreement,
      or (iv) there shall be a material default by any Borrower under any
      Management Agreement;

                       (xv)   if any Borrower shall continue to be in Default
      under any of the other terms, covenants or conditions of this Agreement
      not specified in subsections (i) to (xvi) above, and such Default shall
      continue for ten (10) Business Days after notice to Borrowers from
      Lender, in the case of any such Default which can be cured by the
      payment of a sum of money, or for thirty (30) days after notice to
      Borrowers from Lender in the case of any other such Default; provided,
      however, that if such non-monetary Default is susceptible of cure but
      cannot reasonably be cured within such 30-day period, and provided
      further that such Borrower shall have commenced to cure such Default
      within such 30-day period shall and thereafter diligently and
      expeditiously proceed to cure the same subject to Force Majeure, such
      30-day period shall be extended for such time as is reasonably necessary
      for such Borrower in the exercise of due diligence to cure such Default,
      such additional period not to exceed ninety (90) days;

                       (xvi)  if any Borrower or Guarantor shall be convicted
      of a Patriot Act Offense by a court of competent jurisdiction; or

                       (xvii) if there shall be a default under any of the
      other Loan Documents beyond any applicable cure periods contained in
      such Loan Documents, whether as to any Borrower, Guarantor or any of the
      Properties, or if any other such event shall occur or condition shall
      exist, if the effect of such event or condition is to accelerate the
      maturity of any portion of the Obligations or to permit Lender to
      accelerate the maturity of all or any portion of the Obligations

            (b)        Upon the occurrence of an Event of Default (other than
an Event of Default described in clauses (vii), (viii) or (ix) above) and at
any time thereafter while such Event of Default continues, Lender may, in
addition to any other rights or remedies available to it pursuant to this
Agreement and the other Loan Documents or at law or in equity, take such
action, without notice or demand, that Lender deems advisable to protect and
enforce its rights against Borrowers and in and to all or any portion of the
Properties, including declaring the Obligations to be immediately due and
payable, and Lender may enforce or avail itself of any or all rights or
remedies provided in the Loan Documents against Borrowers and all or any
portion of the Properties, including all rights or remedies available at law
or in equity; and upon any Event of Default described in clauses (vii), (viii)
or (ix) above, the Obligations of Borrowers hereunder and under the other Loan
Documents shall immediately and automatically become due and payable, without
notice or demand, and each Borrower hereby expressly waives any such

                                      90
<PAGE>

notice or demand, anything contained herein or in any other Loan Document to
the contrary notwithstanding.

      10.2  Remedies.

            (a)        Upon the occurrence and during the continuance of an
Event of Default, all or any one or more of the rights, powers, privileges and
other remedies available to Lender against Borrowers under this Agreement or
any of the other Loan Documents executed and delivered by, or applicable to,
Borrowers or at law or in equity may be exercised by Lender at any time and
from time to time, whether or not all or any of the Obligations shall be
declared due and payable, and whether or not Lender shall have commenced any
foreclosure proceeding or other action for the enforcement of its rights and
remedies under any of the Loan Documents with respect to all or any portion of
the Properties. Any such actions taken by Lender shall be cumulative and
concurrent and may be pursued independently, singly, successively, together or
otherwise, at such time and in such order as Lender may determine in its sole
discretion, to the fullest extent permitted by law, without impairing or
otherwise affecting the other rights and remedies of Lender permitted by law,
equity or contract or as set forth herein or in the other Loan Documents.
Without limiting the generality of the foregoing, if an Event of Default is
continuing (i) Lender shall not be subject to any "one action" or "election of
remedies" law or rule, and (ii) all Liens and other rights, remedies or
privileges provided to Lender shall remain in full force and effect until
Lender has exhausted all of its remedies against the Properties and the
Mortgage has been foreclosed, sold and/or otherwise realized upon in
satisfaction of the Obligations or the Obligations have been paid in full.

            (b)        Lender shall have the right from time to time to
partially foreclose the Mortgage in any manner and for any amounts secured by
the Mortgage then due and payable as determined by Lender in its sole
discretion, including the following circumstances: (i) in the event any
Borrower defaults beyond any applicable grace period in the payment of one or
more scheduled payments of principal and interest, Lender may foreclose the
Mortgage to recover such delinquent payments, or (ii) in the event Lender
elects to accelerate less than the entire Outstanding Principal Balance,
Lender may foreclose the Mortgage to recover so much of the principal balance
of the Loan as Lender may accelerate and such other sums secured by the
Mortgage as Lender may elect. Notwithstanding one or more partial
foreclosures, the Properties shall remain subject to the Mortgage to secure
payment of the sums secured by the Mortgage and not previously recovered.

            (c)        Lender shall have the right from time to time to sever
the Note and the other Loan Documents into one or more separate notes,
mortgages and other security documents (the "Severed Loan Documents") in such
denominations as Lender shall determine in its sole discretion for purposes of
evidencing and enforcing its rights and remedies provided hereunder. Each
Borrower shall execute and deliver to Lender from time to time, promptly after
the request of Lender, a severance agreement and such other documents as
Lender shall request in order to effect the severance described in the
preceding sentence, all in form and substance reasonably satisfactory to
Lender. Each Borrower hereby absolutely and irrevocably appoints Lender as its
true and lawful attorney, coupled with an interest, in its name and stead to
make and execute all documents necessary or desirable to effect the aforesaid
severance, each Borrower ratifying all that its said attorney shall do by
virtue thereof; provided, however, Lender shall not make or

                                      91
<PAGE>

execute any such documents under such power until three (3) days after notice
has been given to Borrowers by Lender of Lender's intent to exercise its
rights under such power. Except as may be required in connection with a
Securitization pursuant to Section 9.1 hereof, (i) Borrowers shall not be
obligated to pay any costs or expenses incurred in connection with the
preparation, execution, recording or filing of the Severed Loan Documents, and
(ii) the Severed Loan Documents shall not contain any representations,
warranties or covenants not contained in the Loan Documents.

            (d)        Any amounts recovered from the Properties or any other
collateral for the Loan after an Event of Default may be applied by Lender
toward the payment of any interest and/or principal of the Loan and/or any
other amounts due under the Loan Documents, in such order, priority and
proportions as Lender in its sole discretion shall determine.

      10.3  Lender's Right to Perform.

      If Borrowers fail to perform any covenant or obligation contained herein
and such failure shall (a) continue for a period of ten (10) Business Days
after Borrowers' receipt of written notice thereof from Lender and (b)
materially and adversely affect the value of the Properties, without in any
way limiting Lender's right to exercise any of its rights, powers or remedies
as provided hereunder, or under any of the other Loan Documents, Lender may,
but shall have no obligation to, perform, or cause the performance of, such
covenant or obligation, and all costs, expenses, liabilities, penalties and
fines of Lender incurred or paid in connection therewith shall be payable by
Borrowers to Lender upon demand and if not paid shall be added to the
Obligations (and to the extent permitted under applicable laws, secured by the
Mortgage and the other Loan Documents) and shall bear interest thereafter at
the Default Rate. Notwithstanding the foregoing, Lender shall have no
obligation to send notice to Borrowers of any such failure.

      10.4  Remedies Cumulative.

      The rights, powers and remedies of Lender under this Agreement shall be
cumulative and not exclusive of any other right, power or remedy which Lender
may have against any Borrower pursuant to this Agreement or the other Loan
Documents, or existing at law or in equity or otherwise. Lender's rights,
powers and remedies may be pursued singly, concurrently or otherwise, at such
time and in such order as Lender may determine in Lender's sole discretion. No
delay or omission to exercise any remedy, right or power accruing upon an
Event of Default shall impair any such remedy, right or power or shall be
construed as a waiver thereof, but any such remedy, right or power may be
exercised from time to time and as often as may be deemed expedient. A waiver
of one Default or Event of Default with respect to any Borrower shall not be
construed to be a waiver of any subsequent Default or Event of Default by any
Borrower or to impair any remedy, right or power consequent thereon.

                                  ARTICLE 11
                                 MISCELLANEOUS
                                 -------------

      11.1  Successors and Assigns.

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<PAGE>

      All covenants, promises and agreements in this Agreement, by or on
behalf of Borrowers, shall inure to the benefit of the legal representatives,
successors and assigns of Lender, provided, however, that no assignee shall be
entitled to receive any greater amount pursuant to Section 2.3.7(a) than that
to which the assignor Lender would have been entitled to receive had no such
assignment occurred.

      11.2  Lender's Discretion.

      Whenever pursuant to this Agreement Lender exercises any right given to
it to approve or disapprove any matter, or any arrangement or term is to be
satisfactory to Lender, the decision of Lender to approve or disapprove such
matter or to decide whether arrangements or terms are satisfactory or not
satisfactory shall (except as is otherwise specifically herein provided) be in
the sole discretion of Lender and shall be final and conclusive. Prior to a
Securitization, whenever pursuant to this Agreement the Rating Agencies are
given any right to approve or disapprove any matter, or any arrangement or
term is to be satisfactory to the Rating Agencies, the decision of Lender to
approve or disapprove such matter or to decide whether arrangements or terms
are satisfactory or not satisfactory, based upon Lender's determination of
Rating Agency criteria, shall be substituted therefor.

      11.3  Governing Law.

      (A)   THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS WERE NEGOTIATED IN THE
STATE OF NEW YORK, AND MADE BY LENDER AND ACCEPTED BY EACH BORROWER IN THE
STATE OF NEW YORK, AND THE PROCEEDS OF THE NOTE DELIVERED PURSUANT HERETO WERE
DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A
SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION
EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE
GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE, THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS
ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN
SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS) AND ANY
APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE
PROVISIONS FOR THE CREATION, PERFECTION AND ENFORCEMENT OF THE LIEN AND
SECURITY INTEREST CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN
DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED ACCORDING TO, THE LAW OF THE
STATE, COMMONWEALTH OR DISTRICT, AS APPLICABLE, IN WHICH THE PROPERTIES ARE
LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW
OF SUCH STATE, COMMONWEALTH OR DISTRICT, AS APPLICABLE, THE LAW OF THE STATE
OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL
LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO
THE FULLEST EXTENT PERMITTED BY LAW, EACH BORROWER HEREBY

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UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY
OTHER JURISDICTION GOVERNS THIS AGREEMENT AND THE NOTE OR ANY OTHER LOAN
DOCUMENTS, AND THIS AGREEMENT AND THE NOTE OR ANY OTHER LOAN DOCUMENTS SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

      (B)   ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR ANY
BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY AT LENDER'S OPTION
BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF
NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW,
AND EACH BORROWER AND LENDER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR
HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT,
ACTION OR PROCEEDING, AND EACH BORROWER AND LENDER HEREBY IRREVOCABLY SUBMITS
TO THE EXCLUSIVE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR
PROCEEDING. EACH BORROWER DOES HEREBY DESIGNATE AND APPOINT:

                  Paul, Hastings, Janofsky & Walker LLP
                  75 East 55th Street
                  New York, New York 10022
                  Attention:  Robert J. Wertheimer, Esq.
                              Robert J. Grados, Esq.

AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY
AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN
ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND EACH BORROWER AGREES
THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF
SAID SERVICE MAILED OR DELIVERED TO EACH BORROWER IN THE MANNER PROVIDED
HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON EACH
BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK. EACH
BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED ADDRESS OF ITS
AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME
DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK
(WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND
ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A
SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW
YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.

      11.4  Modification, Waiver in Writing.

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      No modification, amendment, extension, discharge, termination or waiver
of any provision of this Agreement or of any other Loan Document, nor consent
to any departure by any Borrower therefrom, shall in any event be effective
unless the same shall be in a writing signed by the party or parties against
whom enforcement is sought, and then such waiver or consent shall be effective
only in the specific instance, and for the purpose, for which given. Except as
otherwise expressly provided herein, no notice to, or demand on any Borrower,
shall entitle any Borrower to any other or future notice or demand in the
same, similar or other circumstances.

      11.5  Delay Not a Waiver.

      Neither any failure nor any delay on the part of Lender in insisting
upon strict performance of any term, condition, covenant or agreement, or
exercising any right, power, remedy or privilege hereunder or under any other
Loan Document, shall operate as or constitute a waiver thereof, nor shall a
single or partial exercise thereof preclude any other future exercise, or the
exercise of any other right, power, remedy or privilege. In particular, and
not by way of limitation, by accepting payment after the due date of any
amount payable under this Agreement or any other Loan Document, Lender shall
not be deemed to have waived any right either to require prompt payment when
due of all other amounts due under this Agreement or the other Loan Documents,
or to declare a default for failure to effect prompt payment of any such other
amount. Lender shall have the right to waive or reduce any time periods that
Lender is entitled to under the Loan Documents in its sole and absolute
discretion.

      11.6  Notices.

      All notices, demands, requests, consents, approvals or other
communications (any of the foregoing, a "Notice") required, permitted or
desired to be given hereunder shall be in writing and shall be sent by telefax
(with answer back acknowledged) or by registered or certified mail, postage
prepaid, return receipt requested, or delivered by hand or by reputable
overnight courier, addressed to the party to be so notified at its address
hereinafter set forth, or to such other address as such party may hereafter
specify in accordance with the provisions of this Section 11.6. Any Notice
shall be deemed to have been received: (a) three (3) days after the date such
Notice is mailed, (b) on the date of sending by telefax if sent during
business hours on a Business Day (otherwise on the next Business Day), (c) on
the date of delivery by hand if delivered during business hours on a Business
Day (otherwise on the next Business Day), and (d) on the next Business Day if
sent by an overnight commercial courier, in each case addressed to the parties
as follows:

If to Lender:                UBS Real Estate Investments Inc.
                             1285 Avenue of the Americas
                             11th Floor
                             New York, New York 10019
                             Attention:  Robert Pettinato
                             Facsimile No.  (212) 713-4631

with a copy to:              Brown Raysman Millstein Felder & Steiner LLP
                             900 Third Avenue
                             New York, New York 10022

                                      95
<PAGE>

                             Attention: Jeffrey B. Steiner, Esq.
                             Facsimile No. (212) 895-2900

with a copy to Servicer:     Wachovia Bank National Association
                             P.O. Box 563956 Charlotte, North Carolina 28256
                             (or any successor servicer of the Loan)
                             Attention:
                             Facsimile No.:

If to Borrowers:             c/o Reckson Associates Realty Corp.
                             225 Broadhollow Road
                             Melville, New York 11747-0983
                             Attention: General Counsel
                             Facsimile No. (631) 622-8994

with a copy to:              Paul, Hastings, Janofsky & Walker LLP
                             75 East 55th Street
                             New York, New York 10022
                             Attention:  Robert J. Wertheimer, Esq.
                                         Robert J. Grados, Esq.
                             Facsimile No.: (212) 319-4090

Any party may change the address to which any such Notice is to be delivered
by furnishing ten (10) days written notice of such change to the other parties
in accordance with the provisions of this Section 11.6. Notices shall be
deemed to have been given on the date as set forth above, even if there is an
inability to actually deliver any such Notice because of a changed address of
which no Notice was given, or there is a rejection or refusal to accept any
Notice offered for delivery. Notice for any party may be given by its
respective counsel. Additionally, Notice from Lender may also be given by
Servicer and Lender hereby acknowledges and agrees that Borrowers shall be
entitled to rely on any Notice given by Servicer as if it had been sent by
Lender.

      11.7  Trial by Jury.

      EACH BORROWER AND LENDER EACH HEREBY AGREES NOT TO ELECT A TRIAL BY JURY
OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY
FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH
REGARD TO THE LOAN DOCUMENTS OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION
ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS
GIVEN KNOWINGLY AND VOLUNTARILY BY EACH BORROWER AND LENDER AND IS INTENDED TO
ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A
TRIAL BY JURY WOULD OTHERWISE ACCRUE. EACH PARTY IS HEREBY AUTHORIZED TO FILE
A

                                      96
<PAGE>

COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER.

      11.8  Headings.

      The Article and/or Section headings and the Table of Contents in this
Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose.

      11.9  Severability.

      Wherever possible, each provision of this Agreement shall be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement shall be prohibited by or invalid under applicable
law, such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Agreement.

      11.10 Preferences.

      Lender shall have the continuing and exclusive right at any time when an
Event of Default has occurred and is continuing to apply or reverse and
reapply any and all payments by any Borrower to any portion of the Obligations
of Borrowers hereunder. To the extent any Borrower makes a payment or payments
to Lender, which payment or proceeds or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required
to be repaid to a trustee, receiver or any other party under any bankruptcy
law, state or federal law, common law or equitable cause, then, to the extent
of such payment or proceeds received, the Obligations hereunder or part
thereof intended to be satisfied shall be revived and continue in full force
and effect until indefeasibly paid in full, as if such payment or proceeds had
not been received by Lender.

      11.11 Waiver of Notice.

      No Borrower shall be entitled to any notices of any nature whatsoever
from Lender except with respect to matters for which this Agreement or the
other Loan Documents specifically and expressly provide for the giving of
notice by Lender to Borrowers and except with respect to matters for which
Borrowers are not, pursuant to applicable Legal Requirements, permitted to
waive the giving of notice. Each Borrower hereby expressly waives the right to
receive any notice from Lender with respect to any matter for which this
Agreement or the other Loan Documents do not specifically and expressly
provide for the giving of notice by Lender to Borrowers.

      11.12 Remedies of Borrower.

      In the event that a claim or adjudication is made that Lender or its
agents have acted unreasonably or unreasonably delayed acting in any case
where, by law or under this Agreement or the other Loan Documents, Lender or
such agent, as the case may be, has an obligation to act reasonably or
promptly, neither Lender nor its agents shall be liable for any monetary
damages and each Borrower's sole remedy shall be limited to commencing an
action seeking injunctive

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relief or declaratory judgment. Any action or proceeding to determine whether
Lender has acted reasonably shall be determined by an action seeking
declaratory judgment.

      11.13 Expenses; Indemnity.

            (a)        Each Borrower shall pay or, if Borrowers fail to pay,
reimburse Lender upon receipt of notice from Lender, for all reasonable costs
and expenses (including reasonable attorneys' fees and disbursements) incurred
by Lender in connection with (i) Borrowers' ongoing performance of and
compliance with each Borrower's agreements and covenants contained in this
Agreement and the other Loan Documents on its part to be performed or complied
with after the Closing Date, including confirming compliance with
environmental and insurance requirements; (ii) Lender's ongoing performance of
and compliance with all agreements and covenants contained in this Agreement
and the other Loan Documents on its part to be performed or complied with
after the Closing Date but expressly excluding Lender's ordinary internal
administrative costs and expenses; (iii) the negotiation, preparation,
execution, delivery and administration of any consents, amendments, waivers or
other modifications to this Agreement and the other Loan Documents and any
other documents or matters requested by Borrowers; (iv) the filing and
recording fees and expenses, title insurance and reasonable fees and expenses
of counsel for providing to Lender all required legal opinions, and other
similar expenses incurred in creating and perfecting the Liens in favor of
Lender pursuant to this Agreement and the other Loan Documents; (v) enforcing
or preserving any rights, in response to third party claims or the prosecuting
or defending of any action or proceeding or other litigation, in each case
against, under or affecting Borrowers, this Agreement, the other Loan
Documents, the Properties or any other security given for the Loan; and (vi)
enforcing any Obligations of or collecting any payments due from Borrowers
under this Agreement, the other Loan Documents or with respect to the
Properties or in connection with any refinancing or restructuring of the
credit arrangements provided under this Agreement in the nature of a
"work-out" or of any insolvency or bankruptcy proceedings; provided, however,
that Borrowers shall not be liable for the payment of any such costs and
expenses to the extent the same arise by reason of the active gross
negligence, illegal acts, fraud or willful misconduct of Lender. Any costs due
and payable to Lender may be paid, at Lender's election in its sole
discretion, from any amounts in the Deposit Account.

            (b)        Borrowers shall indemnify, defend and hold harmless
Lender from and against any and all actual, out-of-pocket liabilities, actual,
out-of-pocket obligations, actual, out-of-pocket losses, actual, out-of-pocket
damages, actual, out-of-pocket penalties, actual, out-of-pocket actions,
actual, out-of-pocket judgments, suits, claims, actual, out-of-pocket costs,
actual, out-of-pocket expenses and actual, out-of-pocket disbursements of any
kind or nature whatsoever (including the reasonable fees and disbursements of
counsel for Lender in connection with any investigative, administrative or
judicial proceeding commenced or threatened, whether or not Lender shall be
designated a party thereto), that may be imposed on, incurred by, or asserted
against Lender in any manner relating to or arising out of (i) any breach by
any Borrower of its Obligations under, or any material misrepresentation by
any Borrower contained in, this Agreement or the other Loan Documents, (ii)
the use or intended use of the proceeds of the Loan, (iii) any information
provided by or on behalf of any Borrower, or contained in any documentation
approved by any Borrower; (iv) ownership of the Mortgage, the Properties or
any interest therein, or receipt of any Rents; (v) any accident, injury to or
death of persons or loss of

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or damage to property occurring in, on or about the Properties or on the
adjoining sidewalks, curbs, adjacent property or adjacent parking areas,
streets or ways; (vi) any use, nonuse or condition in, on or about the
Properties or on adjoining sidewalks, curbs, adjacent property or adjacent
parking areas, streets or ways; (vii) performance of any labor or services or
the furnishing of any materials or other property in respect of the
Properties; (viii) any failure of any of the Properties to comply with any
Legal Requirement; (ix) any claim by brokers, finders or similar persons
claiming to be entitled to a commission in connection with any Lease or other
transaction involving the Properties or any part thereof, or any liability
asserted against Lender with respect thereto; (x) the claims of any lessee of
any portion of the Properties or any Person acting through or under any lessee
or otherwise arising under or as a consequence of any Lease; (xi) any and all
lawful action that may be taken by Lender in connection with the enforcement
of the provisions of this Agreement, the Mortgage, the Note or any of the
other Loan Documents, whether or not suit is filed in connection with same, or
in connection with any Borrower, any guarantor or indemnitor and/or any
partner, member, joint venturer or shareholder thereof becoming a party of a
voluntary or involuntary federal or state bankruptcy, insolvency or similar
proceeding; (xii) any tax on the making and/or recording of the Mortgage, the
Note or any of the other Loan Documents, but excluding any income, franchise
or other similar taxes; and (xiii) a default under Section 4.1.13 of this
Agreement (collectively, the "Indemnified Liabilities"); provided, however,
that Borrowers shall not have any obligation to Lender hereunder to the extent
that such Indemnified Liabilities arise from the gross negligence, bad faith,
illegal acts, fraud or willful misconduct of Lender. To the extent that the
undertaking to indemnify, defend and hold harmless set forth in the preceding
sentence may be unenforceable because it violates any law or public policy,
Borrowers shall pay the maximum portion that it is permitted to pay and
satisfy under applicable law to the payment and satisfaction of all
Indemnified Liabilities incurred by Lender.

      11.14 Schedules Incorporated.

      The Schedules annexed hereto are hereby incorporated herein as a part of
this Agreement with the same effect as if set forth in the body hereof.

      11.15 Offsets, Counterclaims and Defenses.

      Any assignee of Lender's interest in and to this Agreement and the other
Loan Documents shall take the same free and clear of all offsets,
counterclaims or defenses which are unrelated to such documents which
Borrowers may otherwise have against any assignor of such documents, and no
such unrelated counterclaim or defense shall be interposed or asserted by
Borrowers in any action or proceeding brought by any such assignee upon such
documents and any such right to interpose or assert any such unrelated offset,
counterclaim or defense in any such action or proceeding is hereby expressly
waived by Borrowers.

      11.16 No Joint Venture or Partnership; No Third Party Beneficiaries.

            (a)        Each Borrower and Lender intend that the relationships
created hereunder and under the other Loan Documents be solely that of
borrowers and lender. Nothing herein or therein is intended to create a joint
venture, partnership, tenancy-in-common or joint tenancy

                                      99
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relationship between any Borrower and Lender nor to grant Lender any interest
in the Properties other than that of mortgagee, beneficiary or lender.

            (b)        This Agreement and the other Loan Documents are solely
for the benefit of Lender and nothing contained in this Agreement or the other
Loan Documents shall be deemed to confer upon anyone other than Lender any
right to insist upon or to enforce the performance or observance of any of the
Obligations contained herein or therein. All conditions to the obligations of
Lender to make the Loan (and disburse Reserve Funds) hereunder are imposed
solely and exclusively for the benefit of Lender and no other Person shall
have standing to require satisfaction of such conditions in accordance with
their terms or be entitled to assume that Lender will refuse to make the Loan
(or make any disbursement of Reserve Funds) in the absence of strict
compliance with any or all thereof and no other Person shall under any
circumstances be deemed to be a beneficiary of such conditions, any or all of
which may be freely waived in whole or in part by Lender if, in Lender's sole
discretion, Lender deems it advisable or desirable to do so.

      11.17 Publicity.

      All news releases, publicity or advertising by Borrowers or their
Affiliates through any media intended to reach the general public which refers
to the Loan Documents or the financing evidenced by the Loan Documents, to
Lender, UBS or any of their affiliates shall be subject to the prior approval
of Lender.

      11.18 Cross-Collateralization; Waiver of Marshalling of Assets.

            (a)        Each Borrower acknowledges that Lender has made the
Loan to Borrowers upon the security of their collective interests in the
Properties and in reliance upon the aggregate of all of the Properties taken
together being of greater value as collateral security than the sum of each
individual Property taken separately.

            (b)        To the fullest extent permitted by law, each Borrower,
for itself and its successors and assigns, waives all rights to a marshalling
of the assets of such Borrower, such Borrower's members or partners, as
applicable, and others with interests in such Borrower, and of the Property
owned by such Borrower, and shall not assert any right under any laws
pertaining to the marshalling of assets, the sale in inverse order of
alienation, homestead exemption, the administration of estates of decedents,
or any other matters whatsoever to defeat, reduce or affect the right of
Lender under the Loan Documents to a sale of the Property owned by such
Borrower for the collection of the Obligations without any prior or different
resort for collection, or of the right of Lender to the payment of the
Obligations out of the net proceeds of the Property owned by such Borrower in
preference to every other claimant whatsoever.

      11.19 Waiver of Offsets/Defenses/Counterclaims.

      Borrowers hereby waive the right to assert a counterclaim, other than a
compulsory counterclaim, in any action or proceeding brought against it by
Lender or its agents or otherwise to offset any obligations to make the
payments required by the Loan Documents. No failure by Lender to perform any
of its obligations hereunder shall be a valid defense to, or result in any

                                      100
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offset against, any payments which Borrowers are obligated to make under any
of the Loan Documents.

      11.20 Conflict; Construction of Documents; Reliance.

      In the event of any conflict between the provisions of this Agreement
and any of the other Loan Documents, the provisions of this Agreement shall
control. The parties hereto acknowledge that they were represented by
competent counsel in connection with the negotiation, drafting and execution
of the Loan Documents and that such Loan Documents shall not be subject to the
principle of construing their meaning against the party which drafted same.
each Borrower acknowledge that, with respect to the Loan, each Borrower shall
rely solely on its own judgment and advisors in entering into the Loan,
without relying in any manner on any statements, representations or
recommendations of Lender or any parent, subsidiary or affiliate of Lender.
Lender shall not be subject to any limitation whatsoever in the exercise of
any rights or remedies available to it under any of the Loan Documents or any
other agreements or instruments which govern the Loan by virtue of the
ownership by it or any parent, subsidiary or affiliate of Lender of any equity
interest any of them may acquire in any Borrower, and each Borrower hereby
irrevocably waives the right to raise any defense or take any action on the
basis of the foregoing with respect to Lender's exercise of any such rights or
remedies. Each Borrower acknowledges that Lender engages in the business of
real estate financings and other real estate transactions and investments
which may be viewed as adverse to or competitive with the business of each
Borrower or its Affiliates.

      11.21 Brokers and Financial Advisors.

      Each Borrower hereby represents that it has dealt with no financial
advisors, brokers, underwriters, placement agents, agents or finders in
connection with the transactions contemplated by this Agreement. Each Borrower
shall indemnify, defend and hold Lender harmless from and against any and all
claims, liabilities, costs and expenses of any kind (including Lender's
attorneys' fees and expenses) in any way relating to or arising from a claim
by any Person that such Person acted on behalf of Borrowers or Lender in
connection with the transactions contemplated herein. The provisions of this
Section 11.21 shall survive the expiration and termination of this Agreement
and the payment of the Obligations.

      11.22 Exculpation.

      Subject to the qualifications below, Lender shall not enforce the
liability and obligation of Borrowers to perform and observe the Obligations
contained in the Note, this Agreement, the Mortgage or the other Loan
Documents by any action or proceeding wherein a money judgment shall be sought
against Borrowers or any member, partner, officer, director, employee,
principal of or an Affiliate of any Borrower, except that Lender may bring a
foreclosure action, an action for specific performance or any other
appropriate action or proceeding to enable Lender to enforce and realize upon
its interest in all or any portion of any of the Properties, the Gross Revenue
or any other collateral given to Lender pursuant to the Loan Documents;
provided, however, that, except as specifically provided herein, any judgment
in any such action or proceeding shall be enforceable against Borrowers only
to the extent of each Borrower's interest in the Properties, in the Gross
Revenue and in any other collateral given to Lender, and Lender,

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by accepting the Note, this Agreement, the Mortgage and the other Loan
Documents, shall not sue for, seek or demand any deficiency judgment against
Borrowers or any member, partner, officer, director, employee, principal of or
an Affiliate of any Borrower in any such action or proceeding under or by
reason of or under or in connection with the Note, this Agreement, the
Mortgage or the other Loan Documents. The provisions of this Section shall
not, however, (a) constitute a waiver, release or impairment of any obligation
evidenced or secured by any of the Loan Documents; (b) impair the right of
Lender to name one or more Borrowers as a party defendant in any action or
suit for foreclosure and sale under the Mortgage; (c) affect the validity or
enforceability of any of the Loan Documents or any guaranty made in connection
with the Loan or any of the rights and remedies of Lender thereunder; (d)
impair the right of Lender to obtain the appointment of a receiver; (e) impair
the enforcement of the Assignment of Leases; (f) constitute a prohibition
against Lender to seek a deficiency judgment against one or more Borrowers in
order to fully realize the security granted by the Mortgage or to commence any
other appropriate action or proceeding in order for Lender to exercise its
remedies against all or any portion of the Properties; or (g) constitute a
waiver of the right of Lender to enforce the liability and obligation of
Borrowers, by money judgment or otherwise, to the extent of any actual
out-of-pocket loss, damage, cost, expense, liability, claim or other
obligation incurred by Lender (including reasonable attorneys' fees and costs
reasonably incurred) arising out of or in connection with the following:

                       (i)    fraud, material misrepresentation, material
      miscertification or material breach of warranty by or on behalf of any
      Borrower or Guarantor or Key Principal in connection with the Loan,
      including by reason of any claim under the Racketeer Influenced and
      Corrupt Organizations Act ("RICO");

                       (ii)   the willful misconduct by or on behalf of any
      Borrower or Guarantor or Key Principal in connection with the Loan;

                       (iii)  the breach of any representation, warranty,
      covenant or indemnification provision in the Environmental Indemnity or
      in any other Loan Document concerning environmental laws, hazardous
      substances and/or asbestos and any indemnification of Lender with
      respect thereto in either document;

                       (iv)   wrongful removal or destruction of any portion
      of the Properties after an Event of Default;

                       (v)    any intentional, physical waste of the
      Properties resulting from the action or inaction of any Borrower or any
      Affiliate which materially and adversely affects the value of the
      Properties;

                       (vi)   any Legal Requirement (including RICO) resulting
      in the forfeiture by any Borrower of any Property, or any portion
      thereof, because of the conduct or purported conduct of criminal
      activity by any Borrower or Guarantor or any of their Affiliates in
      connection therewith;

                       (vii)  the misappropriation or conversion by or on
      behalf of any Borrower of (A) any Insurance Proceeds paid by reason of
      any loss, damage or

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      destruction to one or more of the Properties, (B) any Awards or other
      amounts received in connection with the Condemnation of all or a portion
      of one or more of the Properties, or (C) any Gross Revenue (including
      Rents, security deposits, advance deposits or any other deposits and
      Lease Termination Payments);

                       (viii) failure to pay charges for labor or materials or
      other charges that can create Liens on any portion of the Properties, to
      the extent such Liens are not bonded over, stayed or discharged in
      accordance with Section 3.6 of the Mortgage;

                       (ix)   any security deposits, advance deposits or any
      other deposits collected with respect to the Properties which are not
      delivered to Lender in accordance with the provisions of the Loan
      Documents;

                       (x)    the failure to pay Taxes to the extent Gross
      Revenue is sufficient for the payment of same;

                       (xi)   failure to obtain and maintain the fully paid
      for Policies in accordance with Section 5.1.1 hereof;

                       (xii)  any Borrower's failure to maintain its covenant
      with respect to its status as a single purpose entity contained in
      Section 3.1.24(d) or (g) of this Agreement;

                       (xiii) any Borrower's failure to permit on-site
      inspections of any Property or failure to provide financial information
      as required by, and in accordance with the terms and provisions of, this
      Agreement and the Mortgage; and/or

                       (xiv)  Borrowers' indemnification of Lender set forth
      in Section 9.2 hereof.

      Notwithstanding anything to the contrary in this Agreement or any of the
other Loan Documents, (A) Lender shall not be deemed to have waived any right
which Lender may have under Section 506(a), 506(b), 1111(b) or any other
provisions of the Bankruptcy Code to file a claim for the full amount of the
Obligations or to require that all collateral shall continue to secure all of
the Obligations owing to Lender in accordance with the Loan Documents, and (B)
the Obligations shall be fully recourse to Borrowers in the event that: (i)
the first full monthly payment of principal and interest under the Note is not
paid when due; (ii) Borrowers fail to obtain Lender's prior consent to any
subordinate financing (other than the financing permitted pursuant to Section
3.1.24(d) hereof) or other voluntary Lien encumbering one or more of the
Properties (provided, however, that the Obligations shall not become fully
recourse if Borrower shall repay such subordinate financing and/or remove such
voluntary Lien within sixty (60) day after Borrower has actual knowledge of
the existence of such subordinate financing and/or Lien); (iii) Borrowers fail
to obtain Lender's prior consent to any Transfer of any Property or any
interest therein or any Transfer of any direct or indirect interest in any
Borrower, in either case as required by the Mortgage or this Agreement; (iv)
any Borrower, Sole Member or any Guarantor files a voluntary petition under
the Bankruptcy Code or any other Federal or state bankruptcy or insolvency
law; (v) an Affiliate, officer, director or representative which controls,
directly or indirectly, any Borrower, Sole Member or any Guarantor files, or
joins in the filing of, an involuntary petition against any Borrower under the
Bankruptcy Code or any other Federal or

                                      103
<PAGE>

state bankruptcy or insolvency law, or solicits or causes to be solicited
petitioning creditors for any involuntary petition against any Borrower from
any Person; (vi) any Borrower, Sole Member, or any Guarantor files an answer
consenting to, or otherwise acquiescing in, or joining in, any involuntary
petition filed against it by any other Person under the Bankruptcy Code or any
other Federal or state bankruptcy or insolvency law, or solicits or causes to
be solicited petitioning creditors for any involuntary petition from any
Person; (vii) any Affiliate, officer, director or representative which
controls any Borrower consents to, or acquiesces in, or joins in, an
application for the appointment of a custodian, receiver, trustee or examiner
for any Borrower or any portion of any Property; (viii) any Borrower, Sole
Member or any Guarantor makes an assignment for the benefit of creditors or
admits, in writing or in any legal proceeding, its insolvency or inability to
pay its debts as they become due; (ix) if Guarantor (or any Person comprising
Guarantor), any Borrower or any Affiliate of any of the foregoing, in
connection with any enforcement action or exercise or assertion of any right
or remedy by or on behalf of Lender under or in connection with the Guaranty,
the Lease Guaranties, the Note, the Mortgage or any other Loan Document, seeks
a defense, judicial intervention or injunctive or other equitable relief of
any kind, or asserts in a pleading filed in connection with a judicial
proceeding any defense against Lender or any right in connection with any
security for the Loan, which the court in any such action or proceeding
determines was not brought in good faith; or (x) Borrower defaults in the
performance of its covenants with respect to its status as a single purpose
entity contained in clauses (a), (b), (e), (k), (l) and (n) of Section 3.1.24
of this Agreement.

      11.23 Prior Agreements.

      This Agreement and the other Loan Documents contain the entire agreement
of the parties hereto and thereto in respect of the transactions contemplated
hereby and thereby, and all prior agreements among or between such parties,
whether oral or written, including the Application Letter dated July 13, 2005
(as amended) between Borrowers and Lender, are superseded by the terms of this
Agreement and the other Loan Documents.

      11.24 Servicer.

      At the option of Lender, the Loan may be serviced by a servicer (the
"Servicer") selected by Lender in its sole and absolute discretion and Lender
may delegate all or any portion of its responsibilities under this Agreement
and the other Loan Documents to the Servicer pursuant to a servicing agreement
(the "Servicing Agreement") between Lender and the Servicer. Borrowers shall
be responsible for any reasonable set-up fees or any other initial costs
relating to or arising under the Servicing Agreement.

      11.25 Joint and Several Liability.

      If more than one Person has executed this Agreement as "Borrower," the
representations, covenants, warranties and obligations of all such Persons
hereunder shall be joint and several.

      11.26 Creation of Security Interest.

      Notwithstanding any other provision set forth in this Agreement, the
Note, the Mortgage or any of the other Loan Documents, Lender may at any time
create a security interest in all or any portion of its rights under this
Agreement, the Note, the Mortgage and any other Loan

                                      104
<PAGE>

Document (including the advances owing to it) in favor of any Federal Reserve
Bank in accordance with Regulation A of the Board of Governors of the Federal
Reserve System.

      11.27 Assignments and Participations.

            (a)        Lender may assign to one or more Persons all or a
portion of its rights and obligations under this Agreement.

            (b)        Upon such execution and delivery, from and after the
effective date specified in the related assignment and acceptance agreement,
the assignee thereunder shall be a party hereto and shall have the rights and
obligations of Lender hereunder to the extent of its interest in the Loan.

            (c)        Lender may sell participations to one or more Persons
in or to all or a portion of its rights and obligations under this Agreement;
provided, however, that (i) Lender's obligations under this Agreement shall
remain unchanged, (ii) Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, (iii) Lender shall
remain the holder of any Note for all purposes of this Agreement, and (iv)
Borrowers shall continue to deal solely and directly with Lender in connection
with Lender's rights and obligations under and in respect of this Agreement
and the other Loan Documents.

      Lender may, in connection with any assignment or participation or
proposed assignment or participation pursuant to this Section 11.27, disclose
to the assignee or participant or proposed assignees or participants, as the
case may be, any information relating to Borrowers or any of its Affiliates or
to any aspect of the Loan that has been furnished to Lender by or on behalf of
each Borrower or any of its Affiliates.

      11.28 Counterparts.

      This Agreement may be executed in any number of counterparts, each of
which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument.

      11.29 Set-Off.

      In addition to any rights and remedies of Lender provided by this
Agreement and by law, Lender shall have the right in its sole discretion,
without prior notice to Borrowers, any such notice being expressly waived by
each Borrower to the extent permitted by applicable law, upon any amount
becoming due and payable by Borrowers hereunder (whether at the stated
maturity, by acceleration or otherwise), to set-off and appropriate and apply
against such amount any and all deposits (general or special, time or demand,
provisional or final), in any currency, and any other credits, indebtedness or
claims, in any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, at any time held or owing by Lender or any
Affiliate thereof to or for the credit or the account of Borrowers. Lender
agrees promptly to notify Borrowers after any such set-off and application
made by Lender; provided that the failure to give such notice shall not affect
the validity of such set-off and application.

                                      105
<PAGE>

                        [NO FURTHER TEXT ON THIS PAGE]

                                      106
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Loan Agreement
to be duly executed by their duly authorized representatives, all as of the
day and year first above written.
                     LENDER:
                     ------

                     UBS REAL ESTATE INVESTMENTS INC., a Delaware corporation

                     By:  /s/ Greta Guggenheim
                          -------------------------------------
                     Name:    Greta Guggenheim
                     Title:

                     By:  /s/ Brad A. Cohen
                          -------------------------------------
                     Name:    Brad A. Cohen
                     Title:

                     BORROWERS:
                     ---------

                     RA 492 RIVER ROAD LLC,
                     a Delaware limited liability company

                     By:   Reckson Operating Partnership, L.P.,
                           a Delaware limited partnership, its sole member

                           By:   Reckson Associates Realty Corp.,
                                 a Maryland corporation, its general partner

                                 By:  /s/ Jason Barnett
                                      ---------------------------------
                                    Name:  Jason Barnett
                                    Title: Executive Vice President

                     RA 100 EXECUTIVE DRIVE LLC,
                     a Delaware limited liability company

                     By:   Reckson Operating Partnership, L.P.,
                           a Delaware limited partnership, its sole member

                           By:   Reckson Associates Realty Corp.,
                                 a Maryland corporation, its general partner

                                 By: /s/ Jason Barnett
                                     ------------------------------
                                    Name:  Jason Barnett

                   Signature Page to Loan Agreement (Pool A)
<PAGE>

                                    Title:   Executive Vice President

                     RA 200 EXECUTIVE DRIVE LLC,
                     a Delaware limited liability company

                     By:   Reckson Operating Partnership, L.P.,
                           a Delaware limited partnership, its sole member

                           By:   Reckson Associates Realty Corp.,
                                 a Maryland corporation, its general partner

                                 By: /s/ Jason Barnett
                                     ---------------------------------
                                    Name:    Jason Barnett
                                    Title:   Executive Vice President

                     RA 35 PINELAWN ROAD LLC,
                     a Delaware limited liability company

                     By:   Reckson Operating Partnership, L.P.,
                           a Delaware limited partnership, its sole member

                           By:   Reckson Associates Realty Corp.,
                                 a Maryland corporation, its general partner

                                 By:  /s/ Jason Barnett
                                      -----------------------------
                                    Name:    Jason Barnett
                                    Title:   Executive Vice President

                     RA 80 GRASSLANDS ROAD LLC,
                     a Delaware limited liability company

                     By:   Reckson Operating Partnership, L.P.,
                           a Delaware limited partnership, its sole member

                           By:   Reckson Associates Realty Corp.,
                                 a Maryland corporation, its general partner

                                 By:  /s/ Jason Barnett
                                      ----------------------------
                                    Name:  Jason Barnett

                   Signature Page to Loan Agreement (Pool A)
<PAGE>

                                    Title:   Executive Vice President

                     RA 100 GRASSLANDS ROAD LLC,
                     a Delaware limited liability company

                     By:   Reckson Operating Partnership, L.P.,
                           a Delaware limited partnership, its sole member

                           By:   Reckson Associates Realty Corp.,
                                 a Maryland corporation, its general partner

                                 By:  /s/ Jason Barnett
                                      --------------------------------
                                    Name:   Jason Barnett
                                    Title:  Executive Vice President

                     RA 150 MOTOR PARKWAY LLC,
                     a Delaware limited liability company

                     By:   Reckson Operating Partnership, L.P.,
                           a Delaware limited partnership, its sole member

                           By:   Reckson Associates Realty Corp.,
                                 a Maryland corporation, its general partner

                                 By:  /s/ Jason Barnett
                                      -----------------------------
                                    Name:   Jason Barnett
                                    Title:  Executive Vice President

                     RA 660 WHITE PLAINS ROAD LLC,
                     a Delaware limited liability company

                     By:   Reckson Operating Partnership, L.P.,
                           a Delaware limited partnership, its sole member

                           By:   Reckson Associates Realty Corp.,
                                 a Maryland corporation, its general partner

                                 By:  /s/ Jason Barnett
                                     --------------------------------
                                    Name:   Jason Barnett
                                    Title:  Executive Vice President

                   Signature Page to Loan Agreement (Pool A)
<PAGE>

                     RA 225 HIGH RIDGE LLC,
                     a Delaware limited liability company

                     By:   Reckson Operating Partnership, L.P.,
                           a Delaware limited partnership, its sole member

                           By:   Reckson Associates Realty Corp.,
                                 a Maryland corporation, its general partner

                                 By:  /s/ Jason Barnett
                                      --------------------------------
                                    Name:   Jason Barnett
                                    Title:  Executive Vice President

                   Signature Page to Loan Agreement (Pool A)
<PAGE>

                                 SCHEDULE I-1A
                                 -------------

                           492 RIVER ROAD RENT ROLL
                           ------------------------

<PAGE>

                                 SCHEDULE I-2A
                                 -------------

                         100 EXECUTIVE DRIVE RENT ROLL
                         -----------------------------

<PAGE>

                                 SCHEDULE I-3A
                                 -------------

                         200 EXECUTIVE DRIVE RENT ROLL
                         -----------------------------

<PAGE>

                                 SCHEDULE I-4A
                                 -------------

                             35 PINELAWN RENT ROLL
                             ---------------------

<PAGE>

                                 SCHEDULE I-5A
                                 -------------

                            80 GRASSLANDS RENT ROLL
                            -----------------------

<PAGE>

                                 SCHEDULE I-6A
                                 -------------

                           100 GRASSLANDS RENT ROLL
                           ------------------------

<PAGE>

                                 SCHEDULE I-7A
                                 -------------

                          150 MOTOR PARKWAY RENT ROLL
                          ---------------------------

<PAGE>

                                 SCHEDULE I-8A
                                 -------------

                        660 WHITE PLAINS ROAD RENT ROLL
                        -------------------------------

<PAGE>

                                 SCHEDULE I-9A
                                 -------------

                         225 HIGH RIDGE ROAD RENT ROLL
                         -----------------------------

                                  Schedule II
<PAGE>

                                  SCHEDULE II
                                  -----------

                             ORGANIZATIONAL CHART
                             --------------------

                                  Schedule IV
<PAGE>

<TABLE>
<CAPTION>

                                                   SCHEDULE III
                                                   ------------

                                                 LEGAL NAME CHART
                                                 ----------------

----------------------------------------------------------------------------------------------------------------
Borrower Legal Name                               Borrower Tax ID Number             Borrower Delaware
-------------------                               ----------------------             -----------------
                                                                                     Organizational ID
                                                                                     -----------------
                                                                                     Number
                                                                                     ------
----------------------------------------------------------------------------------------------------------------
<S>                                               <C>                                <C>
RA 492 RIVER ROAD LLC                             20-2953197                         3979775
----------------------------------------------------------------------------------------------------------------
RA 100 EXECUTIVE DRIVE LLC                        20-2953320                         3979781
----------------------------------------------------------------------------------------------------------------
RA 200 EXECUTIVE DRIVE LLC                        20-2953337                         3979782
----------------------------------------------------------------------------------------------------------------
RA 35 PINELAWN ROAD LLC                           20-3275217                         4011074
----------------------------------------------------------------------------------------------------------------
RA 80 GRASSLANDS ROAD LLC                         20-3275105                         4011067
----------------------------------------------------------------------------------------------------------------
RA 100 GRASSLANDS ROAD LLC                        20-3275138                         4011070
----------------------------------------------------------------------------------------------------------------
RA 150 MOTOR PARKWAY LLC                          20-3275257                         4011073
----------------------------------------------------------------------------------------------------------------
RA 660 WHITE PLAINS ROAD LLC                      20-3275176                         4011072
----------------------------------------------------------------------------------------------------------------
RA 225 HIGH RIDGE LLC                             20-2972274                         3975526
----------------------------------------------------------------------------------------------------------------

</TABLE>

                                                    Schedule IV
<PAGE>

                                  SCHEDULE IV
                                  -----------

                         EXISTING AFFILIATE CONTRACTS
                         ----------------------------

                                     None

                                 Schedule VII
<PAGE>

                                  SCHEDULE V
                                  ----------

                 EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES
                 --------------------------------------------

                                     None

                                 Schedule VII
<PAGE>

<TABLE>
<CAPTION>

                                                     SCHEDULE VI
                                                     -----------

                                                  IMMEDIATE REPAIRS
                                                  -----------------

------------------------------------------------------------------------------------------------------------------
Property Name                              Immediate Repair         Cost of Immediate        Deadline for
-------------                              -----------------        ------------------       -------------
                                           Required                 Repair                   Performance of
                                           --------                 ------                   --------------
                                                                                             Immediate Repair
------------------------------------------------------------------------------------------------------------------

<S>                                        <C>                      <C>                      <C>
492 River Road, Nutley, New Jersey         Asphalt Paving           $5,250                   February 26,
                                           Work                                              2006
------------------------------------------------------------------------------------------------------------------

100 Executive Drive, West Orange,          Site Work                $9,000                   February 26,
New Jersey                                                                                   2006
------------------------------------------------------------------------------------------------------------------

200 Executive Drive, West Orange,          Site, Exterior           $18,400                  February 26,
New Jersey                                 and Roof Work                                     2006
------------------------------------------------------------------------------------------------------------------

35 Pinelawn Road, Melville, New            Site Exterior and        $11,500                  February 26,
York                                       Electrical Work                                   2006
------------------------------------------------------------------------------------------------------------------

80 Grasslands Road, Elmsford, New          None                     N/A                      N/A
York
------------------------------------------------------------------------------------------------------------------

100 Grasslands Road, Elmsford, New         Roof Repair              $168,750                 February 26,
York                                                                                         2006
------------------------------------------------------------------------------------------------------------------

150 Vanderbilt Motor Parkway,              Site, Roof and           $9,250                   February 26,
Hauppauge, NY                              Interior Work                                     2006
------------------------------------------------------------------------------------------------------------------

660 White Plains Road, Tarrytown,          Site Work                $29,975                  February 26,
New York                                                                                     2006
------------------------------------------------------------------------------------------------------------------

225 High Ridge Road, Stamford,             Site Work and            $15,375                  February 26,
Connecticut                                Cooling Systems                                   2006
------------------------------------------------------------------------------------------------------------------

</TABLE>

                                                    Schedule VII
<PAGE>

                                ACKNOWLEDGMENTS
                                ---------------

STATE OF NEW YORK)
                        :ss.
COUNTY OF NEW YORK)

      On the 26th day of August, in the year 2005, before me, the undersigned,
personally appeared Greta Guggenheim, personally known to me or
proved to me on the basis of satisfactory evidence to be the individual(s)
whose name(s) is (are) subscribed to the within instrument and acknowledged to
me that he/she/they executed the same in his/her/their capacity(ies), and that
by his/her/their signature(s) on the instrument, the individual(s), or the
person upon behalf of which the individual(s) acted, executed the instrument.

      IN WITNESS WHEREOF, I hereunto set my hand and official seal.

                                    /s/ Mary Lynn Sekosky
                                    ------------------------------------
                                    Notary Public

(NOTARIAL SEAL)
                                    My Commission Expires:

STATE OF NEW YORK)
                        :ss.
COUNTY OF NEW YORK)

      On the 26th day of August, in the year 2005, before me, the undersigned,
personally appeared Brad A. Cohen, personally known to me or
proved to me on the basis of satisfactory evidence to be the individual(s)
whose name(s) is (are) subscribed to the within instrument and acknowledged to
me that he/she/they executed the same in his/her/their capacity(ies), and that
by his/her/their signature(s) on the instrument, the individual(s), or the
person upon behalf of which the individual(s) acted, executed the instrument.

      IN WITNESS WHEREOF, I hereunto set my hand and official seal.

                                    /s/ Mary Lynn Sekosky
                                    ------------------------------------
                                    Notary Public

(NOTARIAL SEAL)
                                    My Commission Expires:

<PAGE>

                         ACKNOWLEDGEMENTS (Continued)

STATE OF NEW YORK)
                        :ss.
COUNTY OF NEW YORK)

      On the 26th day of August, in the year 2005, before me, the undersigned,
personally appeared Jason Barnett, personally known to me or proved to me on
the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he executed
the same in his capacity, and that by his signature on the instrument, the
individual, or the person upon behalf of which the individual acted, executed
the instrument.

      IN WITNESS WHEREOF, I hereunto set my hand and official seal.

                                    /s/ Mary Lynn Sekosky
                                    ------------------------------------
                                    Notary Public

(NOTARIAL SEAL)
                                    My Commission Expires:

<PAGE>

                                   EXHIBIT A
                                   ---------

                               LEGAL DESCRIPTION

                                   Exhibit A
<PAGE>

<TABLE>
<CAPTION>

                                         EXHIBIT B
                                         ---------

                                  ALLOCATED LOAN AMOUNTS
                                  ----------------------

----------------------------------------------------------------------------------------
Property Name                                          Allocated Loan Amount
-------------                                          ---------------------
----------------------------------------------------------------------------------------

<S>                                                    <C>
492 River Road, Nutley, New Jersey                     $22,073,000
----------------------------------------------------------------------------------------

100 Executive Drive, West Orange, New Jersey           $12,115,000
----------------------------------------------------------------------------------------

200 Executive Drive, West Orange, New Jersey           $12,981,000
----------------------------------------------------------------------------------------

35 Pinelawn Road, Melville, New York                   $15,189,000
----------------------------------------------------------------------------------------

80 Grasslands Road, Elmsford, New York                 $10,672,000
----------------------------------------------------------------------------------------

100 Grasslands Road, Elmsford, New York                $6,027,000
----------------------------------------------------------------------------------------

150 Vanderbilt Motor Parkway, Hauppauge, NY            $24,080,000
----------------------------------------------------------------------------------------

660 White Plains Road, Tarrytown, New York             $37,657,300
----------------------------------------------------------------------------------------

225 High Ridge Road, Stamford, Connecticut             $55,274,000
----------------------------------------------------------------------------------------

</TABLE>

                                         Exhibit B

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