EXECUTION
FIRST HORIZON ASSET SECURITIES
INC.
MORTGAGE PASS-THROUGH
CERTIFICATES
SERIES 2006-AR4
TERMS AGREEMENT
(to Underwriting
Agreement,
dated May 25, 2006
among the Company, First
Horizon
Home Loan Corporation
and the Underwriter)
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First Horizon
Asset Securities Inc.
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New York, New York
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4000 Horizon
Way
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December 22, 2006
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Irving, Texas
75063
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Countrywide
Securities Corporation (the “ Underwriter ”)
agrees, subject to the terms and provisions herein and of the
captioned Underwriting Agreement (the “ Underwriting
Agreement ”), to purchase such Classes of Series 2006-AR4
Certificates specified in Section 2(a) hereof (the “
Offered Certificates ”). This letter supplements and
modifies the Underwriting Agreement solely as it relates to the
purchase and sale of the Offered Certificates described below. The
Series 2006-AR4 Certificates are registered with the Securities and
Exchange Commission by means of an effective Registration Statement
(No. 333-132046). Capitalized terms used and not defined herein
have the meanings given them in the Underwriting
Agreement.
Section 1. The Mortgage Pools : The Series 2006-AR4 Certificates shall
evidence the entire beneficial ownership interest in three mortgage
pools (the “ Mortgage Pools ”) of conventional,
fixed rate, first lien, fully amortizing one- to four-family
residential mortgage loans (the “ Mortgage Loans
”) having the following characteristics as of December 1,
2006 (the “ Cut-off Date ”):
(a) Aggregate Principal Amount of the Mortgage
Pool : Approximately
$349,545,423 aggregate principal balance as of the Cut-off Date,
subject to an upward or downward variance of up to 5%, the precise
aggregate principal balance to be determined by the
Company.
(b) Original Terms to Maturity
: The original term to maturity of
each Mortgage Loan included in the Mortgage Pool shall be 360
months.
Section 2. The Certificates : The Offered Certificates shall be issued as
follows:
(a) Classes : The Offered Certificates shall be issued with
the following Class designations, interest
