Document:

Unassociated Document

    

      UNIT
        CORPORATION

      STOCK
        APPRECIATION RIGHTS AWARD AGREEMENT

       

      PERSONAL
        AND CONFIDENTIAL

       

      [Date]

       

      
        	
                Participant
                  Name

              	
                [--------------------]

              
	
                Date
                  of Grant

              	
                [--------------------]

              
	
                Type
                  of Award

              	
                Cash
                  Settled SAR

              
	
                Grant
                  Price per Stock Appreciation Right

              	
                [--------------------]

              
	
                Number
                  of Share equivalents subject to this Award 

              	
                [--------------------]

              
	
                Expiration
                  Date

              	
                [--------------------]

              

      

       

      We
        are
        pleased to inform you that as an employee of Unit Corporation or one of its
        Affiliates, you have been granted an Award of Stock Appreciation Rights (also
        referred to as a "SARs")
        under
        the Unit Corporation Stock and Incentive Compensation Plan (the "Plan").
        The
        SARs give you the opportunity to receive a lump sum cash payment at the time
        of
        exercise of the SARs, equal to the result of multiplying (a) the excess of
        the
        Fair Market Value of a Share on the date of exercise over the grant price
        by (b)
        the number of Shares with respect to which the SAR (or SARs) is exercised.
        This
        Award is subject to your acceptance of this Award as provided in Section
        1 below
        and the terms and conditions that follow in this agreement.

       

      The
        date
        of the Award evidenced by this agreement (the "date
        of grant")
        and
        the date the SARs expire are set forth above. 

       

      The
        terms
        and conditions of this Award, including non-standard provisions permitted
        by the
        Plan, are set forth below.

       

      1.  Acceptance
        of SARs. 
        The
        SARs
        cannot be exercised unless you sign your name in the space provided on the
        enclosed copy of this agreement and cause it to be delivered to the Secretary
        of
        the Company, 7130 South Lewis, Suite 1000, Tulsa, Oklahoma 74136, before
        the
        30th
        day
        after the date of grant. If the Secretary does not timely receive your properly
        signed copy of this agreement, then, despite anything else stated in this
        agreement, the SARs will be void as if they were never awarded to you and
        will
        be of no effect. Your signing and timely delivering a copy of this agreement
        will evidence your acceptance of the SARs on the terms and conditions stated
        in
        this agreement.

       

      2.  When
        You Can Exercise
        the SARs.  

       

      	(a)  	
              Unless
                previously forfeited and subject to the other provisions of this
                agreement, the SARs shall be exercisable in the following percentages
                of
                the number of Share equivalents subject to this Award on the following
                dates:

            

       

      

      
        	
                 

                (i)

                 

              	
                 

                [---]%
                  on the [---------------] anniversary of the date of grant;

                 

              
	
                 

                (ii) 

                 

              	
                 

                an
                  additional [---]% on the [---------------] anniversary of the date
                  of
                  grant; and

                 

              

      

       

       

      
        
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            1 of 7

        

        
           

          
          

        

        
           

        

      

      
        

        
          	
                   

                  (iii)

                   

                	
                   

                  the
                    remaining [---]% on the [---------------] anniversary of the
                    date of grant
                    

                   

                

        

         

      

      	(b)  	
              Except
                as otherwise provided in Section 6, the SARs shall lapse on the 10th
                anniversary of the date of grant. 

            

       

      	(c)  	
              SARs
                shall not become exercisable unless you remain continuously in the
                employ
                or service of Unit Corporation or of one of its Affiliates from the
                date
                of grant until exercise, except as provided in Sections 6 and 10.
                

            

       

      	(d)  	
              The
                right to exercise shall be cumulative. If the full number of Shares
                with
                respect to which the SARs are available for exercise in a period
                shall not
                be exercised, the balance, subject to any forfeiture provisions,
                may be
                exercised at any time or from time to time thereafter before the
                lapse,
                forfeiture or termination of the SARs. 

            

       

      3.  Notice
        of Exercise.  After
        you
        vest in them, you may exercise your SARs by delivering a signed Notice of
        Exercise in the form attached to this agreement to Unit Corporation's Secretary
        at the office specified above. Delivery of a signed form constitutes your
        legally binding irrevocable exercise of the SARs, as indicated on the form.
        In
        the case of any delivery by facsimile transmission, the original Notice of
        Exercise form shall be promptly forwarded by you by hand or mail to the
        Secretary of Unit Corporation. If a properly signed Notice of Exercise form
        is
        not received by Unit Corporation's Secretary by the applicable expiration
        date
        specified in Sections 2(b), 6 or 7, the notice will be deemed void and of
        no
        effect. If notice of exercise of the SARs is given by a person other than
        you,
        Unit Corporation may require as a condition to exercise of the SARs the
        submission to Unit Corporation of appropriate proof of the right of such
        person
        to exercise the SARs. A SAR will be deemed to have been exercised on the
        date on
        which the notice is received by Unit Corporation's secretary as described
        above.

       

      4.  Terms
        of Exercise. On
        proper
        exercise of any vested portion of your SARs, you shall be entitled to receive
        in
        cash the excess of (i) the Fair Market Value of the specified number of SARs
        (which shall be equal, on a per share basis, to the Fair Market Value of
        the
        Shares) as of the date of exercise over (ii) the grant price of the specified
        number of SARs. 

       

      5.
        Transferability of SARs.  The
        SARs
        shall not be transferable by you otherwise than (i) by will, (ii) by the
        laws of
        descent and distribution, or (iii) under a qualified domestic relations order.
        During your lifetime the SARs shall be exercisable only by you. Any transferred
        SARs shall continue to be subject to the terms and conditions of this agreement,
        including, without limitation, the provisions of this Section 5. Any transfer
        permitted under this agreement shall be promptly reported in writing to Unit
        Corporation's Secretary.

       

      6.  Affect
        of Death
        or Disability.  Despite
        what is provided for in Section 2, if your employment by or service with
        Unit
        Corporation or one of its Affiliates terminates by reason of your death or
        disability (as determined by the Committee in its sole discretion), all of
        the
        SARs will become immediately exercisable in full and non-forfeitable and
        shall
        continue to be exercisable for a period of six months from the date of
        termination.

       

      7.  Affect
        of Other
        Causes of Termination of Employment.

       

      	(a)  	
              Subject
                to Section 7(b), if your employment with the Company or a subsidiary
                terminates otherwise than by reason of your death or disability,
                the SARs
                shall be exercisable only with respect to the number of SARs with
                respect
                to which it was exercisable on the date of termination of employment
                and
                then must be exercised, if at all, within thirty days after your
                termination of employment or such SARs shall terminate and cease
                to be
                exercisable; provided however,
                that in the case of termination for Cause, such SARs shall be forfeited
                and no longer exercisable as of the date of your termination of
                employment.

            

       

       

      
        
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            2 of 7

        

        
           

          
          

        

        
           

        

      

       

      	(b)  	
              For
                the purposes of this agreement, your employment by an Affiliate of
                Unit
                Corporation shall be considered terminated on the date that the company
                by
                which you are employed is no longer an Affiliate of Unit
                Corporation.

            

       

      8.  Transfer
        of Employment; Leave of Absence.  A
        transfer of your employment from Unit Corporation to an Affiliate or vice
        versa,
        or from one Affiliate to another, without an intervening period, shall not
        be
        deemed a termination of employment. If you are granted an authorized leave
        of
        absence, you shall be deemed to have remained in the employ of the company
        by
        which you are employed during such leave of absence.

       

      9.  Adjustments
        in SARs.

       

      	(a)  	
              The
                existence of this agreement and the SARs shall not affect or restrict
                in
                any way the right or power of the Board of Directors or the stockholders
                of Unit Corporation (or any of its Affiliates) to make or authorize
                any
                reorganization or other change in its capital or business structure,
                any
                merger or consolidation, any issue of bonds, debentures, preferred
                or
                prior preference stock ahead of or affecting the SARs, the dissolution
                or
                liquidation of the company or any sale or transfer of all or any
                part of
                its (or their) assets or business.

            

       

      	(b)  	
              In
                the event of any corporate event or transaction that is subject to
                the
                provisions of Section 4.2 of the Plan, the Committee may make adjustments
                or amendments to the terms of this Award as it deems appropriate,
                under
                the circumstances, in its sole discretion. Any adjustments or amendments
                may include, but are not limited to, (i) changes in the number and
                kind of
                Share equivalents set forth above, (ii) changes in the grant price,
                and
                (iii) accelerating the vesting of the SARs. The determination by
                the
                Committee as to the terms of any adjustments or amendments shall
                be
                conclusive and binding.

            

       

      10.  Change
        in Control.  Article
        14 of the Plan shall apply to the terms of this Award in the event a Change
        of
        Control occurs.

       

      11.  Tax
        Matters.  

       

      	(a)  	
              You
                should consult your tax accountant about the tax consequences of
                the
                grant, vesting and exercise of the SARs.

            

       

      	(b)  	
              On
                exercise of a SAR, Federal income tax withholding (and state and
                local
                income tax withholding, if applicable) may be required in respect
                of taxes
                on income realized. You authorize your employer to withhold from
                the cash
                payable to you on your exercise of SARs the amount of tax your employer
                is
                obligated to withhold from the payment.

            

       

      12.  Employment. 
        Nothing
        contained in this agreement shall confer on you any right to continue in
        the
        employ or other service of Unit Corporation or any of its Affiliates or limit
        in
        any way the right of your employer to change your compensation or other benefits
        or to terminate your employment or other service with or without
        Cause.

       

      13.  Short-Swing
        Trading.  An
        executive officer of Unit Corporation who exercises a SAR or whose SARs are
        cashed out must report the disposition of the SARs on a Form 4 Statement
        of
        Changes in Beneficial Ownership filed within two trading days with the EDGAR
        database of the Securities and Exchange Commission. While the General Counsel
        of
        the Company will draft the Form 4 on your request, the
        filing is your personal responsibility.

       

      14.  Forfeiture
        of Award. 
        If
        at any
        time during your employment by Unit Corporation or one of its Affiliates,
        the
        Committee determines that you have engaged in any activity in competition
        with
        any activity of Unit Corporation or its Affiliates, or activity or conduct
        that
        is inimical, contrary or harmful to the interests of Unit Corporation or
        its
        Affiliates, including but not limited to:

       

       

      
        
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            3 of 7

        

        
           

          
          

        

        
           

        

      

       

      	(a)  	
              conduct
                relating to your employment for which either criminal or civil penalties
                against you may be sought;

            

       

      	(b)  	
              conduct
                or activity that results in the termination of your employment because
                of
                your: (i) failure to abide by your employer's rules and regulations
                governing the transaction of its business, including without limitation,
                its Code of Business Ethics and Conduct; (ii) inattention to duties,
                or
                the commission of acts within employment with your employer amounting
                to
                negligence or misconduct; (iii) misappropriation of funds or property
                of
                Unit Corporation or any of its Affiliates or committing any fraud
                against
                Unit Corporation or any of its Affiliates or against any other person
                or
                entity in the course of employment with Unit Corporation or any of
                its
                Affiliates; (iv) misappropriation of any corporate opportunity, or
                otherwise obtaining personal profit from any transaction which is
                adverse
                to the interests of Unit Corporation or any of its Affiliates or
                to the
                benefits of which Unit Corporation or any of its Affiliates is entitled;
                or (v) the commission of a felony or other crime involving moral
                turpitude;

            

       

      	(c)  	
              accepting
                employment with, acquiring a 5% or more equity or participation interest
                in, serving as a consultant, advisor, director or agent of, directly
                or
                indirectly soliciting or recruiting any employee of Unit Corporation
                or
                any of its Affiliates who was employed at any time during your tenure
                with
                Unit Corporation or any of its Affiliates, or otherwise assisting
                in any
                other capacity or manner any company or enterprise that is directly
                or
                indirectly in competition with or acting against the interests of
                Unit
                Corporation of an of its Affiliates (a "competitor"),
                except for (i) any isolated, sporadic accommodation or assistance
                provided
                to a competitor, at its request, by you during your tenure with Unit
                Corporation of an of its Affiliates, but only if provided in the
                good
                faith and reasonable belief that such action would benefit Unit
                Corporation or any of its Affiliates by promoting good business relations
                with the competitor and would not harm Unit Corporation or any of
                its
                Affiliates interests in any substantial manner or (ii) any other
                service
                or assistance that is provided at the request or with the written
                permission of Unit Corporation or any of its
                Affiliates;

            

       

      	(d)  	
              disclosing
                or misusing any confidential information or material concerning Unit
                Corporation or any of its Affiliates; or

            

       

      	(e)  	
              making
                any statement or disclosing any information to any customers, suppliers,
                lessors, lessees, licensors, licensees, regulators, employees or
                others
                with whom Unit Corporation or any of its Affiliates engages in business
                that is defamatory or derogatory with respect to the business, operations,
                technology, management, or other employees of Unit Corporation or
                any of
                its Affiliates, or taking any other action that could reasonably
                be
                expected to injure Unit Corporation or any of its Affiliates in its
                business relationships with any of the foregoing parties or result
                in any
                other detrimental effect on Unit Corporation or any of its Affiliates;
                

            

       

      then
        the
        SARs subject to this Award shall automatically terminate and be forfeited
        effective as of the date you breached this Section 14.(a) - (e) as determined
        by
        the Committee and (i) you must repay to Unit Corporation all amounts paid
        to you
        on your exercise of SARS, (ii) if any of the SARs are no longer in your
        possession you must pay to Unit Corporation, without interest, all cash,
        securities or other assets received by you on the sale or transfer of the
        SARs,
        and (iii) all unvested SARs shall be forfeited.

       

      (f)   If
        you owe any amount under the above subsections of this Section 14, you
        acknowledge that your employer may, to the fullest extent permitted by
        applicable law, deduct such amount from any amounts your employer owes you
        from
        time to time for any reason (including without limitation amounts owed to
        you as
        salary, wages, reimbursements or other compensation, fringe benefits, retirement
        benefits or vacation pay). Whether or not your employer elects to make any
        such
        set-off in whole or in part, if your employer does not recover by means of
        set-off the full amount you owe it, you hereby agree to pay immediately the
        unpaid balance to your employer.

       

       

      
        
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            4 of 7

        

        
           

          
          

        

        
           

        

      

       

      15.  Time
        of Essence.  Time
        is
        of the essence of the provisions of this agreement with respect to delivering
        notices. There is no grace period.

       

      16.  Binding
        Effect. 
        This
        agreement shall inure to the benefit of and be binding on the parties to
        this
        agreement and their respective heirs, executors, administrators, legal
        representatives and successors. Without limiting the generality of the
        foregoing, whenever the term "you" is used in any provision of this agreement
        under circumstances where the provision appropriately applies to the heirs,
        executors, administrators or legal representatives to whom this Award may
        be
        transferred as provided for in this agreement, the term "you" shall be deemed
        to
        include that person or persons.

       

      17.  Plan
        Provisions Govern.

       

      	(a)  	
              This
                Award is subject to the terms, conditions, restrictions and other
                provisions of the Plan as fully as if all those provisions were set
                forth
                in their entirety in this agreement. If
                any provision of this agreement conflicts with a provision of the
                Plan,
                the Plan provision shall control.
                

            

       

      	(b)  	
              You
                acknowledge that a copy of the Plan and a prospectus summarizing
                the Plan
                was distributed or made available to you and that you were advised
                to
                review that material before entering into this agreement. You waive
                the
                right to claim that the provisions of the Plan are not binding on
                you and
                your heirs, executors, administrators, legal representatives and
                successors.

            

       

      	(c)  	
              Capitalized
                terms used but not defined in this agreement have the meaning given
                those
                terms in the Plan.

            

       

      	(d)  	
              By
                your signature below, you represent that you are familiar with the
                terms
                and provisions of the Plan, and hereby accept this agreement subject
                to
                all of the terms and provisions of the Plan. You have reviewed the
                Plan
                and this agreement in their entirety and fully understand all provisions
                of this agreement. You agree to accept as binding, conclusive and
                final
                all decisions or interpretations of the Committee on any questions
                arising
                under the Plan or this agreement.

            

       

      18.  Governing
        Law. 
        This
        agreement shall be governed by and construed in accordance with the laws
        of the
        State of Oklahoma despite any laws of the State of Oklahoma that would apply
        the
        laws of a different State.

       

      19.  Severability. 
        If
        any
        term or provision of this agreement, or the application of this agreement
        to any
        person or circumstance, shall at any time or to any extent be invalid, illegal
        or unenforceable in any respect as written, both parties intend for any court
        construing this agreement to modify or limit that provision so as to render
        it
        valid and enforceable to the fullest extent allowed by law. Any provision
        that
        is not susceptible of reformation shall be ignored so as to not affect any
        other
        term or provision of this agreement, and the remainder of this agreement,
        or the
        application of that term or provision to persons or circumstances other than
        those as to which it is held invalid, illegal or unenforceable, shall not
        be
        affected thereby and each term and provision of this agreement shall be valid
        and enforced to the fullest extent permitted by law.

       

      
        
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            5 of 7

        

        
           

          
          

        

        
           

        

      

       

      20.  Consent
        to Electronic Delivery; Electronic Signature.  In
        lieu
        of receiving documents in paper format, you agree, to the fullest extent
        permitted by law, to accept electronic delivery of any documents that may
        be
        required to be deliver to you (including, but not limited to, prospectuses,
        prospectus supplements, grant or award notifications and agreements, account
        statements, annual and quarterly reports, and all other forms of communications)
        in connection with this and any other award made or offered by Unit Corporation.
        Electronic delivery may be via electronic mail system or by reference to
        a
        location on a company intranet to which you have access. You hereby consent
        to
        any and all procedures Unit Corporation has established or may establish
        for an
        electronic signature system for delivery and acceptance of any such documents
        that may be required to be delivered to you, and agrees that your electronic
        signature is the same as, and shall have the same force and effect as, your
        manual signature.

       

      21.  Entire
        Agreement; Modification. 
        The
        Plan
        and this agreement contain the entire agreement between the parties with
        respect
        to the subject matter contained in this agreement and may not be modified
        except
        as provided in the Plan, as it may be amended from time to time in the manner
        provided in the Plan (or in this agreement), or as it may be amended from
        time
        to time by a written document signed by each of the parties to this agreement.
        Any oral or written agreements, representations, warranties, written
        inducements, or other communications with respect to the subject matter
        contained in this agreement made before the signing of this agreement shall
        be
        void and ineffective for all purposes.

       

      22.  Counterparts. 
        This
        agreement may be signed in duplicate counterparts, each of which shall be
        deemed
        to be an original.

       

      In
        Witness Whereof, the parties have caused this agreement to be signed and
        delivered as of the day and year first above written.

       

      
        	
                 

                Unit
                  Corporation

                 

              	
                 

                Participant:

                 

              
	
                 

              	 	 
	 	 	 
	 	
                ___________________________________

              	
                _______________________________________

              
	
                By:

              	
                Signature

              	
                Signature

              
	
                Title:

              	 	 
	
                Date:

              	 	
                Date:
                  __________________________________

              

      

      

       

      
        
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            6 of 7

        

        
           

          
          

        

        
           

        

      

       

      NOTICE
        OF EXERCISE

       

       

      (CASH
        SETTLED SAR)

       

      

      
        	
                To:

              	 
	 	 
	
                Unit
                  Corporation

              	 
	
                7130
                  South Lewis, Suite 1000

              	 
	
                Tulsa,
                  Oklahoma 74136

              	
                Date
                  of Exercise: ___________________________

              
	
                Attention:
                  Office of the Corporate Secretary

              	 

      

       

      Ladies
        and Gentlemen:

       

      
        	
                This
                  constitutes notice that I elect to exercise my Stock Appreciation
                  Right
                  Award as follows:

              
	
                 

                Stock
                  appreciation right dated: 

                 

              	 	
                 

                _______________________________________

                 

              
	
                 

                Number
                  of Shares (Common Stock equivalents) as to which stock appreciation
                  right
                  is exercised:

                 

              	 	
                 

                _______________________________________

                 

              

      

       

      By
        this
        exercise, I (i) agree to provide such additional documents as you may require
        under the terms of the Unit Corporation Stock and Incentive Compensation
        Plan,
        and (ii) authorize you to withhold from the cash payable to me as a result
        of my
        exercise the amount (as you determine) of your withholding obligation, if
        any,
        relating to my exercise of my stock appreciation right.

      
        	 
	
                Very
                  truly yours,

              
	 
	 
	
                ______________________________________

              
	
                Signature

              
	 
	 
	 
	
                ______________________________________

              
	
                Print
                  your name

              
	 

      

      
Page
        7 of
        7Unassociated Document

    BEAR
      STEARNS ASSET BACKED SECURITIES I LLC

     

    Depositor

     

    EMC
      MORTGAGE CORPORATION

     

    Seller
      and Company

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION

     

    Master
      Servicer and Securities Administrator

     

    and

     

    U.S.
      BANK
      NATIONAL ASSOCIATION

     

    Trustee

     

    ____________________

     

    POOLING
      AND SERVICING AGREEMENT

     

    Dated
      as
      of November 1, 2006

     

    ________________________________________

     

    BEAR
      STEARNS ASSET BACKED SECURITIES I TRUST 2006-AC5

     

    ASSET-BACKED
      CERTIFICATES, SERIES 2006-AC5

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    TABLE
      OF CONTENTS

     

    Page

     

    ARTICLE
      I
      DEFINITIONS 

     

    
      	
              Section
                1.01

            	
              Defined
                Terms.

            	 

    

    
      	
              Section
                1.02

            	
              Allocation
                of Certain Interest Shortfalls.

            	 

    

     

    ARTICLE
      II CONVEYANCE OF TRUST FUND REPRESENTATIONS AND WARRANTIES 

     

    
      	
              Section
                2.01

            	
              Conveyance
                of Trust Fund.

            	 

    

    
      	
              Section
                2.02

            	
              Acceptance
                of the Mortgage Loans.

            	 

    

    
      	
              Section
                2.03

            	
              Representations,
                Warranties and Covenants of the Company, the Master Servicer and
                the
                Seller.

            	 

    

    
      	
              Section
                2.04

            	
              Representations
                and Warranties of the Depositor.

            	 

    

    
      	
              Section
                2.05

            	
              Delivery
                of Opinion of Counsel in Connection with Substitutions and
                Repurchases.

            	 

    

    
      	
              Section
                2.06

            	
              Countersignature
                and Delivery of Certificates.

            	 

    

    
      	
              Section
                2.07

            	
              Purposes
                and Powers of the Trust.

            	 

    

     

    ARTICLE
      III ADMINISTRATION AND SERVICING OF EMC MORTGAGE LOANS BY COMPANY 

     

    
      	
              Section
                3.01

            	
              The
                Company.

            	 

    

    
      	
              Section
                3.02

            	
              Due-on-Sale
                Clauses; Assumption Agreements.

            	 

    

    
      	
              Section
                3.03

            	
              Subservicers.

            	 

    

    
      	
              Section
                3.04

            	
              Documents,
                Records and Funds in Possession of Company To Be Held for
                Trustee.

            	 

    

    
      	
              Section
                3.05

            	
              Maintenance
                of Hazard Insurance.

            	 

    

    
      	
              Section
                3.06

            	
              Presentment
                of Claims and Collection of Proceeds.

            	 

    

    
      	
              Section
                3.07

            	
              Maintenance
                of the Primary Mortgage Insurance Policies.

            	 

    

    
      	
              Section
                3.08

            	
              Fidelity
                Bond, Errors and Omissions Insurance.

            	 

    

    
      	
              Section
                3.09

            	
              Realization
                Upon Defaulted Mortgage Loans; Determination of Excess Liquidation
                Proceeds and Realized Losses; Repurchases of Certain Mortgage
                Loans.

            	 

    

    
      	
              Section
                3.10

            	
              Servicing
                Compensation.

            	 

    

    
      	
              Section
                3.11

            	
              REO
                Property.

            	 

    

    
      	
              Section
                3.12

            	
              Liquidation
                Reports.

            	 

    

    
      	
              Section
                3.13

            	
              Books
                and Records.

            	 

    

     

    ARTICLE
      IV ADMINISTRATION AND MASTER SERVICING OF MORTGAGE LOANS BY MASTER
      SERVICER 

     

    
      	
              Section
                4.01

            	
              Master
                Servicer.

            	 

    

    
      	
              Section
                4.02

            	
              REMIC-Related
                Covenants.

            	 

    

    
      	
              Section
                4.03

            	
              Monitoring
                of Company and Servicer.

            	 

    

    
      	
              Section
                4.04

            	
              Fidelity
                Bond.

            	 

    

    
      	
              Section
                4.05

            	
              Power
                to Act; Procedures.

            	 

    

    
      	
              Section
                4.06

            	
              Due-on-Sale
                Clauses; Assumption Agreements.

            	 

    

    
      	
              Section
                4.07

            	
              Release
                of Mortgage Files.

            	 

    

    
      	
              Section
                4.08

            	
              Documents,
                Records and Funds in Possession of Master Servicer, Company and Servicer
                To Be Held for Trustee.

            	 

    

    
      	
              Section
                4.09

            	
              Standard
                Hazard Insurance and Flood Insurance Policies.

            	 

    

    
      	
              Section
                4.10

            	
              Presentment
                of Claims and Collection of Proceeds.

            	 

    

    
      	
              Section
                4.11

            	
              Maintenance
                of the Primary Mortgage Insurance Policies.

            	 

    

    
      	
              Section
                4.12

            	
              Trustee
                to Retain Possession of Certain Insurance Policies and
                Documents.

            	 

    

    
      	
              Section
                4.13

            	
              Realization
                Upon Defaulted Mortgage Loans.

            	 

    

    
      	
              Section
                4.14

            	
              Compensation
                for the Master Servicer.

            	 

    

    
      	
              Section
                4.15

            	
              REO
                Property.

            	 

    

    
      	
              Section
                4.16

            	
              Annual
                Statement as to Compliance.

            	 

    

    
      	
              Section
                4.17

            	
              Assessments
                of Compliance and Attestation Reports.

            	 

    

    
      	
              Section
                4.18

            	
              Reports
                Filed with Securities and Exchange Commission.

            	 

    

    
      	
              Section
                4.19

            	
              Intention
                of the Parties and Interpretation.

            	 

    

    
      	
              Section
                4.20

            	
              UCC.

            	 

    

    
      	
              Section
                4.21

            	
              Optional
                Purchase of Certain Mortgage Loans.

            	 

    

     

    ARTICLE
      V
      ACCOUNTS 

     

    
      	
              Section
                5.01

            	
              Collection
                of Mortgage Loan Payments; Protected Account.

            	 

    

    
      	
              Section
                5.02

            	
              Permitted
                Withdrawals From the Protected Account.

            	 

    

    
      	
              Section
                5.03

            	
              Reports
                to Master Servicer.

            	 

    

    
      	
              Section
                5.04

            	
              Collection
                of Taxes; Assessments and Similar Items; Escrow Accounts.

            	 

    

    
      	
              Section
                5.05

            	
              Servicer
                Protected Accounts.

            	 

    

    
      	
              Section
                5.06

            	
              [Reserved].

            	 

    

    
      	
              Section
                5.07

            	
              [Reserved].

            	 

    

    
      	
              Section
                5.08

            	
              Distribution
                Account.

            	 

    

    
      	
              Section
                5.09

            	
              Permitted
                Withdrawals and Transfers from the Distribution Account.

            	 

    

     

    ARTICLE
      VI DISTRIBUTIONS AND ADVANCES 

     

    
      	
              Section
                6.01

            	
              Advances.

            	 

    

    
      	
              Section
                6.02

            	
              Compensating
                Interest Payments.

            	 

    

    
      	
              Section
                6.03

            	
              REMIC
                Distributions.

            	 

    

    
      	
              Section
                6.04

            	
              Distributions.

            	 

    

    
      	
              Section
                6.05

            	
              Allocation
                of Realized Losses.

            	 

    

    
      	
              Section
                6.06

            	
              Monthly
                Statements to Certificateholders.

            	 

    

    
      	
              Section
                6.07

            	
              REMIC
                Designations and REMIC Distributions.

            	 

    

    
      	
              Section
                6.08

            	
              Reserve
                Fund.

            	 

    

    
      	
              Section
                6.09

            	
              Class
                P Certificate Account.

            	 

    

     

    ARTICLE
      VII THE CERTIFICATES 

     

    
      	
              Section
                7.01

            	
              The
                Certificates.

            	 

    

    
      	
              Section
                7.02

            	
              Certificate
                Register; Registration of Transfer and Exchange of
                Certificates.

            	 

    

    
      	
              Section
                7.03

            	
              Mutilated,
                Destroyed, Lost or Stolen Certificates.

            	 

    

    
      	
              Section
                7.04

            	
              Persons
                Deemed Owners.

            	 

    

    
      	
              Section
                7.05

            	
              Access
                to List of Certificateholders’ Names and Addresses.

            	 

    

    
      	
              Section
                7.06

            	
              Book-Entry
                Certificates.

            	 

    

    
      	
              Section
                7.07

            	
              Notices
                to Depository.

            	 

    

    
      	
              Section
                7.08

            	
              Definitive
                Certificates.

            	 

    

    
      	
              Section
                7.09

            	
              Maintenance
                of Office or Agency.

            	 

    

     

    ARTICLE
      VIII THE COMPANY AND THE MASTER SERVICER 

     

    
      	
              Section
                8.01

            	
              Liabilities
                of the Depositor, the Company and the Master Servicer.

            	 

    

    
      	
              Section
                8.02

            	
              Merger
                or Consolidation of the Depositor, the Company or the Master
                Servicer.

            	 

    

    
      	
              Section
                8.03

            	
              Indemnification
                of the Trustee, the Master Servicer and the Securities
                Administrator.

            	 

    

    
      	
              Section
                8.04

            	
              Limitations
                on Liability of the Depositor, the Company, the Master Servicer and
                Others.

            	 

    

    
      	
              Section
                8.05

            	
              Master
                Servicer and Company Not to Resign.

            	 

    

    
      	
              Section
                8.06

            	
              Successor
                Master Servicer.

            	 

    

    
      	
              Section
                8.07

            	
              Sale
                and Assignment of Master Servicing.

            	 

    

     

    ARTICLE
      IX DEFAULT; TERMINATION OF MASTER SERVICER; TERMINATION
      OF COMPANY 

     

    
      	
              Section
                9.01

            	
              Events
                of Default.

            	 

    

    
      	
              Section
                9.02

            	
              Trustee
                to Act; Appointment of Successor.

            	 

    

    
      	
              Section
                9.03

            	
              Notification
                to Certificateholders and Rating Agencies.

            	 

    

    
      	
              Section
                9.04

            	
              Waiver
                of Defaults.

            	 

    

    
      	
              Section
                9.05

            	
              Company
                Default.

            	 

    

    
      	
              Section
                9.06

            	
              Waiver
                of Company Defaults.

            	 

    

     

    ARTICLE
      X
      CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR 

     

    
      	
              Section
                10.01

            	
              Duties
                of Trustee and Securities Administrator.

            	 

    

    
      	
              Section
                10.02

            	
              Certain
                Matters Affecting the Trustee and the Securities
                Administrator.

            	 

    

    
      	
              Section
                10.03

            	
              Trustee
                and Securities Administrator Not Liable for Certificates or Mortgage
                Loans.

            	 

    

    
      	
              Section
                10.04

            	
              Trustee
                and Securities Administrator May Own Certificates.

            	 

    

    
      	
              Section
                10.05

            	
              Trustee’s
                and Securities Administrator’s Fees and Expenses.

            	 

    

    
      	
              Section
                10.06

            	
              Eligibility
                Requirements for Trustee and Securities Administrator.

            	 

    

    
      	
              Section
                10.07

            	
              Insurance.

            	 

    

    
      	
              Section
                10.08

            	
              Resignation
                and Removal of Trustee and Securities Administrator.

            	 

    

    
      	
              Section
                10.09

            	
              Successor
                Trustee or Securities Administrator.

            	 

    

    
      	
              Section
                10.10

            	
              Merger
                or Consolidation of Trustee or Securities Administrator.

            	 

    

    
      	
              Section
                10.11

            	
              Appointment
                of Co-Trustee or Separate Trustee.

            	 

    

    
      	
              Section
                10.12

            	
              Tax
                Matters.

            	 

    

     

    ARTICLE
      XI TERMINATION 

     

    
      	
              Section
                11.01

            	
              Termination
                upon Liquidation or Repurchase of all Mortgage Loans.

            	 

    

    
      	
              Section
                11.02

            	
              Final
                Distribution on the Certificates.

            	 

    

    
      	
              Section
                11.03

            	
              Additional
                Termination Requirements.

            	 

    

     

    ARTICLE
      XII MISCELLANEOUS PROVISIONS 

     

    
      	
              Section
                12.01

            	
              Amendment.

            	 

    

    
      	
              Section
                12.02

            	
              Recordation
                of Agreement; Counterparts.

            	 

    

    
      	
              Section
                12.03

            	
              Governing
                Law.

            	 

    

    
      	
              Section
                12.04

            	
              Intention
                of Parties.

            	 

    

    
      	
              Section
                12.05

            	
              Notices.

            	 

    

    
      	
              Section
                12.06

            	
              Severability
                of Provisions.

            	 

    

    
      	
              Section
                12.07

            	
              Assignment.

            	 

    

    
      	
              Section
                12.08

            	
              Limitation
                on Rights of Certificateholders.

            	 

    

    
      	
              Section
                12.09

            	
              Inspection
                and Audit Rights.

            	 

    

    
      	
              Section
                12.10

            	
              Certificates
                Nonassessable and Fully Paid.

            	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibits
      

    
      
        	
                Exhibit
                  A-1

              	
                Form
                  of Class A Certificates

              
	
                Exhibit
                  A-2

              	
                Form
                  of Class M Certificates

              
	
                Exhibit
                  A-3

              	
                Form
                  of Class B Certificates

              
	
                Exhibit
                  A-4

              	
                Form
                  of Class C Certificates

              
	
                Exhibit
                  A-5

              	
                Form
                  of Class P Certificates

              
	
                Exhibit
                  A-6

              	
                Form
                  of Class R Certificates

              
	
                Exhibit
                  B

              	
                Mortgage
                  Loan Schedule

              
	
                Exhibit
                  C

              	
                Form
                  of Transfer Affidavit

              
	
                Exhibit
                  D

              	
                Form
                  of Transferor Certificate

              
	
                Exhibit
                  E

              	
                Form
                  of Investment Letter (Non-Rule 144A)

              
	
                Exhibit
                  F

              	
                Form
                  of Rule 144A and Related Matters Certificate

              
	
                Exhibit
                  G

              	
                Form
                  of Request for Release

              
	
                Exhibit
                  H

              	
                DTC
                  Letter of Representations

              
	
                Exhibit
                  I

              	
                Schedule
                  of Mortgage Loans with Lost Notes

              
	
                Exhibit
                  J

              	
                Form
                  of Custodial Agreement

              
	
                Exhibit
                  K

              	
                Form
                  of Back-Up Certification to Form 10-K Certificate

              
	
                Exhibit
                  L

              	
                Form
                  of Mortgage Loan Purchase Agreement

              
	
                Exhibit
                  M

              	
                [Reserved]

              
	
                Exhibit
                  N

              	
                Servicing
                  Criteria to Be Addressed in Assessment of Compliance

              
	
                Exhibit
                  O

              	
                Form
                  10-D, Form 8-K and Form 10-K Reporting Responsibility

              
	
                Exhibit
                  P

              	
                Additional
                  Disclosure Notification

              
	
                Exhibit
                  Q-1 

              	
                Greenpoint
                  Servicing Agreement

              
	
                Exhibit
                  Q-2 

              	
                National
                  City Servicing Agreement

              
	
                Exhibit
                  R-1 

              	
                Greenpoint
                  Assignment, Assumption and Recognition Agreement

              
	
                Exhibit
                  R-2 

              	
                National
                  City Assignment, Assumption and Recognition Agreement

              
	
                Exhibit
                  S

              	
                Reporting
                  Data for Monthly Report

              
	
                Exhibit
                  T

              	
                Reporting
                  Data for Defaulted Loans

              
	
                Exhibit
                  U

              	
                Reporting
                  Data for Realized Losses and Gains

              
	
                Exhibit
                  V

              	 

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    POOLING
      AND SERVICING AGREEMENT, dated as of November 1, 2006, among BEAR STEARNS ASSET
      BACKED SECURITIES I LLC, a Delaware limited liability company, as depositor
      (the
“Depositor”), EMC MORTGAGE CORPORATION, a Delaware corporation, as seller (in
      such capacity, the “Seller”) and as company (in such capacity, the “Company”),
      WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as
      master servicer (in such capacity, the “Master Servicer”) and as securities
      administrator (in such capacity, the “Securities Administrator”), and U.S. BANK
      NATIONAL ASSOCIATION, a national banking association, as trustee (the
“Trustee”).

     

    PRELIMINARY
      STATEMENT

     

    The
      Depositor is the owner of the Trust Fund that is hereby conveyed to the Trustee
      in return for the Certificates.

     

    REMIC
      I

     

    As
      provided herein, the Securities Administrator on behalf of the Trustee shall
      elect to treat the segregated pool of assets consisting of the Mortgage Loans
      and certain other related assets subject to this Agreement (other than the
      Reserve Fund and any Prepayment Charge Waiver Amounts) as a REMIC (as defined
      herein) for federal income tax purposes, and such segregated pool of assets
      will
      be designated as “REMIC I”. The Class R-1 Certificates will represent the sole
      class of Residual Interests (as defined herein) in REMIC I for purposes of
      the
      REMIC Provisions (as defined herein). The following table irrevocably sets
      forth
      the designation, the Uncertificated REMIC I Pass-Through Rate, the initial
      Uncertificated Principal Balance and, for purposes of satisfying Treasury
      Regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for
      each of the REMIC I Regular Interests (as defined herein). None of the REMIC
      I
      Regular Interests will be certificated.

     

    
      	
              Designation

            	 	
              Initial
                Uncertificated Principal Balance

            	 	
              Uncertificated
                REMIC I 

              Pass-Through
                Rate

            	 	
              Latest
                Possible Maturity Date(1)

            	 
	
              AA

            	 	
              $

            	
              259,736,538.64

            	 	 	
              Variable(2)

            	
               

            	 	
              December
                25, 2036

            	 
	
              A-1

            	 	
              $

            	
              2,011,900.00

            	 	 	
              Variable(2)

            	
               

            	 	
              December
                25, 2036

            	 
	
              A-2

            	 	
              $

            	
              159,810.00

            	 	 	
              Variable(2)

            	
               

            	 	
              December
                25, 2036

            	 
	
              A-3

            	 	
              $

            	
              260,000.00

            	 	 	
              Variable(2)

            	
               

            	 	
              December
                25, 2036

            	 
	
              M-1

            	 	
              $

            	
              68,910.00

            	 	 	
              Variable(2)

            	
               

            	 	
              December
                25, 2036

            	 
	
              M-2

            	 	
              $

            	
              38,430.00

            	 	 	
              Variable(2)

            	
               

            	 	
              December
                25, 2036

            	 
	
              M-3

            	 	
              $

            	
              18,550.00

            	 	 	
              Variable(2)

            	
               

            	 	
              December
                25, 2036

            	 
	
              M-4

            	 	
              $

            	
              13,250.00

            	 	 	
              Variable(2)

            	
               

            	 	
              December
                25, 2036

            	 
	
              B-1

            	 	
              $

            	
              13,250.00

            	 	 	
              Variable(2)

            	
               

            	 	
              December
                25, 2036

            	 
	
              B-2

            	 	
              $

            	
              9,280.00

            	 	 	
              Variable(2)

            	
               

            	 	
              December
                25, 2036

            	 
	
              B-3

            	 	
              $

            	
              13,250.00

            	 	 	
              Variable(2)

            	
               

            	 	
              December
                25, 2036

            	 
	
              B-4

            	 	
              $

            	
              17,230.00

            	 	 	
              Variable(2)

            	
               

            	 	
              December
                25, 2036

            	 
	
              ZZ

            	 	
              $

            	
              2,676,885.69

            	 	 	
              Variable(2)

            	
               

            	 	
              December
                25, 2036

            	 
	
              P

            	 	
              $

            	
              100.00

            	 	 	
              0.00%

            	
               

            	 	
              December
                25, 2036

            	 

    

    ___________________________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the
                Distribution Date in the month following the maturity date for the
                Mortgage Loan with the latest maturity date has been designated as
                the
                “latest possible maturity date” for each REMIC I Regular
                Interest.

            

    

    (2)          
       Calculated
      in accordance with the definition of “Uncertificated REMIC I Pass-Through Rate”
herein.

    

    REMIC
      II

     

    As
      provided herein, the Securities Administrator on behalf of the Trustee shall
      elect to treat the segregated pool of assets consisting of the REMIC I Regular
      Interests as a REMIC for federal income tax purposes, and such segregated pool
      of assets will be designated as “REMIC II”. The Class R-2 Certificates will
      represent the sole class of Residual Interests in REMIC II for purposes of
      the
      REMIC Provisions.

     

    The
      following table irrevocably sets forth the designation, Pass-Through Rate,
      Initial Certificate Principal Balance (or initial Uncertificated Principal
      Balance, in the case of the Class C Interest or Class P Interest) and, for
      purposes of satisfying Treasury Regulation Section 1.860G-1(a)(4)(iii), the
      “latest possible maturity date” for each class of Certificates and interests
      that represents ownership of one or more of the Regular Interests (as defined
      herein) in REMIC II created hereunder.

     

    
      	
              Designation

            	 	
              Initial
                Certificate or Uncertificated

              Principal
                Balance

            	 	
              Pass-Through
                Rate

            	 	
              Latest
                Possible Maturity Date(1)

            	 
	
              A-1

            	 	
              $

            	
              201,190,000.00

            	 	 	
              Class
                A-1 Pass-Through Rate

            	 	 	
              December
                25, 2036

            	 
	
              A-2

            	 	
              $

            	
              15,981,000.00

            	 	 	
              Class
                A-2 Pass-Through Rate

            	 	 	
              December
                25, 2036

            	 
	
              A-3

            	 	
              $

            	
              26,000,000.00

            	 	 	
              Class
                A-3 Pass-Through Rate

            	 	 	
              December
                25, 2036

            	 
	
              M-1

            	 	
              $

            	
              6,891,000.00

            	 	 	
              Class
                M-1 Pass-Through Rate

            	 	 	
              December
                25, 2036

            	 
	
              M-2

            	 	
              $

            	
              3,843,000.00

            	 	 	
              Class
                M-2 Pass-Through Rate

            	 	 	
              December
                25, 2036

            	 
	
              M-3
                

            	 	
              $

            	
              1,855,000.00

            	 	 	
              Class
                M-3 Pass-Through Rate

            	 	 	
              December
                25, 2036

            	 
	
              M-4
                

            	 	
              $

            	
              1,325,000.00

            	 	 	
              Class
                M-4 Pass-Through Rate

            	 	 	
              December
                25, 2036

            	 
	
              B-1

            	 	
              $

            	
              1,325,000.00

            	 	 	
              Class
                B-1 Pass-Through Rate

            	 	 	
              December
                25, 2036

            	 
	
              B-2
                

            	 	
              $

            	
              928,000.00

            	 	 	
              Class
                B-2 Pass-Through Rate

            	 	 	
              December
                25, 2036

            	 
	
              B-3
                

            	 	
              $

            	
              1,325,000.00

            	 	 	
              Class
                B-3 Pass-Through Rate

            	 	 	
              December
                25, 2036

            	 
	
              B-4

            	 	
              $

            	
              1,723,000.00

            	 	 	
              Class
                B-4 Pass-Through Rate

            	 	 	
              December
                25, 2036

            	 
	
              Class
                C Interest

            	 	
              $

            	
              2,651,284.33
                

            	 	 	
              Class
                C Pass-Through Rate(2)

            	
               

            	 	
              December
                25, 2036

            	 
	
              Class
                P Interest

            	 	
              $

            	
              100.00

            	 	 	
              0.00%

            	
               

            	 	
              December
                25, 2036

            	 

    

    ___________________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the
                Distribution Date in the month following the maturity date for the
                Mortgage Loan with the latest maturity date has been designated as
                the
                “latest possible maturity date” for each Class of Class A, Class M and
                Class B Certificates and the Class C Interest and the Class P
                Interest.

            
	
              (2)

            	
              The
                Class C Interest will not accrue interest on its Uncertificated Principal
                Balance, but will accrue interest at the Class C Pass-Through Rate
                on its
                Uncertificated Notional Amount (as defined herein) which shall equal
                the
                aggregate Uncertificated Principal Balance of the REMIC I Regular
                Interests (other than REMIC I Regular Interest P).
                

            

    

    

    

    REMIC
      III

     

    As
      provided herein, the Securities Administrator on behalf of the Trustee shall
      elect to treat the segregated pool of assets consisting of the Class C Interest
      as a REMIC for federal income tax purposes, and such segregated pool of assets
      will be designated as “REMIC III”. The Class R-3 Interest will represent the
      sole class of Residual Interests in REMIC III for purposes of the REMIC
      Provisions.

     

    The
      following table sets forth the Class designation, Pass-Through Rate, Initial
      Certificate Principal Balance and, for purposes of satisfying Treasury
      Regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for
      the indicated Class of Certificates that represents a Regular Interest in REMIC
      III created hereunder:

     

    
      	
              Class
                Designation

            	
              Pass-Through
                Rate

            	
              Initial
                Certificate Principal Balance

            	
              Latest
                Possible

              Maturity
                Date(1)

            
	
              C

            	
              (2)

            	
              $2,651,284.33

            	
              December
                25, 2036

            

    

    _______________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the
                Distribution Date in the month following the maturity date for the
                Mortgage Loan with the latest maturity date has been designated as
                the
                “latest possible maturity date” for the Class C
                Certificates.

            

    

    
      	
              (2)

            	
              The
                Class C Certificates will receive 100% of the amounts received in
                respect
                of the Class C Interest.

            

    

     

    REMIC
      IV

     

    As
      provided herein, the Securities Administrator on behalf of the Trustee shall
      elect to treat the segregated pool of assets consisting of the Class P Interest
      as a REMIC for federal income tax purposes, and such segregated pool of assets
      will be designated as “REMIC IV”. The Class R-4 Interest will represent the sole
      class of Residual Interests in REMIC IV for purposes of the REMIC
      Provisions.

     

    The
      following table sets forth the Class designation, Pass-Through Rate, Initial
      Certificate Principal Balance and, for purposes of satisfying Treasury
      Regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for
      the indicated Class of Certificates that represents a Regular Interest in REMIC
      IV created hereunder:

     

    
      	
              Class
                Designation

            	
              Pass-Through
                Rate

            	
              Initial
                Certificate Principal Balance

            	
              Latest
                Possible

              Maturity
                Date(1)

            
	
              P

            	
              0.00%

            	
              $
                100.00

            	
              December
                25, 2036

            

    

    _______________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the
                Distribution Date in the month following the maturity date for the
                Mortgage Loan with the latest maturity date has been designated as
                the
                “latest possible maturity date” for the Class P
                Certificates.

            

    

    
      	
              (2)

            	
              The
                Class P Certificates will receive 100% of the amounts received in
                respect
                of the Class P Interest.

            

    

     

    The
      Trust
      Fund shall be named, and may be referred to as, the “Bear Stearns Asset Backed
      Securities I Trust 2006-AC5.” The Certificates issued hereunder may be referred
      to as “Asset-Backed Certificates Series 2006-AC5” (including for purposes of any
      endorsement or assignment of a Mortgage Note or Mortgage).

     

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

     

    ARTICLE
      I

    DEFINITIONS

     

    Section
      1.01  Defined
      Terms. 

     

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

     

    Accepted
      Master Servicing Practices:
      With
      respect to any Mortgage Loan, those customary mortgage servicing practices
      of
      prudent mortgage servicing institutions that master service mortgage loans
      of
      the same type and quality as such Mortgage Loan in the jurisdiction where the
      related Mortgaged Property is located, to the extent applicable to the Trustee
      or the Master Servicer (except in its capacity as successor to the Company
      or a
      Servicer).

     

    Accepted
      Servicing Practices:
      With
      respect to each EMC Mortgage Loan, those mortgage servicing practices (including
      collection procedures) that are in accordance with all applicable statutes,
      regulations and prudent mortgage banking practices for similar mortgage
      loans.

     

    Account:
      The
      Distribution Account, the Reserve Fund and any Protected Account.

     

    Additional
      Disclosure:
      As
      defined in Section 4.18. 

     

    Additional
      Form 10-D Disclosure:
      As
      defined in Section 4.18. 

     

    Additional
      Form 10-K Disclosure:
      As
      defined in Section 4.18. 

     

    Adjustable
      Rate Mortgage Loan:
      Each of
      the Mortgage Loans identified in the Mortgage Loan Schedule as having a Mortgage
      Rate that is subject to adjustment.

     

    Adjustment
      Date:
      With
      respect to each Adjustable Rate Mortgage Loan, the first day of the month in
      which the Mortgage Rate of an Adjustable Rate Mortgage Loan changes pursuant
      to
      the related Mortgage Note. The first Adjustment Date following the Cut-off
      Date
      as to each Adjustable Rate Mortgage Loan is set forth in the Mortgage Loan
      Schedule.

     

    Advance:
      An
      advance of delinquent payments of principal or interest in respect of a Mortgage
      Loan required to be made by the Company as provided in Section 6.01(a) hereof,
      by the related Servicer in accordance with the related Servicing Agreement
      or by
      the Master Servicer as provided in Section 6.01(b) hereof.

     

    Agreement:
      This
      Pooling and Servicing Agreement and any and all amendments or supplements hereto
      made in accordance with the terms herein.

     

    Amount
      Held for Future Distribution:
      As to
      any Distribution Date, the aggregate amount held in the Company’s or the related
      Servicer’s Protected Accounts at the close of business on the immediately
      preceding Determination Date on account of (i) all Scheduled Payments or
      portions thereof received in respect of the Mortgage Loans due after the related
      Due Period and (ii) Principal Prepayments received in respect of such Mortgage
      Loans after the last day of the related Prepayment Period, (iii) Liquidation
      Proceeds and Insurance Proceeds received in respect of such Mortgage Loans
      after
      the last day of the related calendar month immediately preceding such
      Distribution Date.

     

    Annual
      Statement of Compliance:
      As
      defined in Section 4.16.

     

    Applied
      Realized Loss Amount:
      With
      respect to any Distribution Date and a Class of Class A, Class M and Class
      B
      Certificates, the sum of the Realized Losses with respect to the Mortgage Loans
      which have been applied in reduction of the Certificate Principal Balance of
      a
      Class of Certificates pursuant to Section 6.05 of this Agreement which have
      not
      previously been reimbursed or reduced by any Subsequent Recoveries applied
      to
      such Applied Realized Loss Amount.

     

    Appraised
      Value:
      With
      respect to any Mortgage Loan originated in connection with a refinancing, the
      appraised value of the Mortgaged Property based upon the appraisal made at
      the
      time of such refinancing or, with respect to any other Mortgage Loan, the lesser
      of (x) the appraised value of the Mortgaged Property based upon the appraisal
      made by a fee appraiser at the time of the origination of the related Mortgage
      Loan, and (y) the sales price of the Mortgaged Property at the time of such
      origination.

     

    Assignment
      Agreement:
      Shall
      mean any of the Greenpoint Assignment Agreement or the National City Assignment
      Agreement.

     

    Assessment
      of Compliance:
      As
      defined in Section 4.17.

     

    Attesting
      Party:
      As
      defined in Section 4.17.

     

    Attestation
      Report:
      As
      defined in Section 4.17.

     

    Bankruptcy
      Code:
      Title
      11 of the United States Code.

     

    Basis
      Risk Shortfall Carry Forward Amount:
      With
      respect to any Distribution Date and any Class of Class A, Class M and Class
      B
      Certificates, an amount equal to the sum of (A) if the Pass-Through Rate for
      such Class for such Distribution Date is limited to the related Net Rate Cap,
      the excess, if any, of (a) the amount of Current Interest that such Class would
      have been entitled to receive on such Distribution Date had the Pass-Though
      Rate
      applicable to such Class not been reduced by the applicable Net Rate Cap on
      such
      Distribution Date, over (b) the amount of Current Interest that such Class
      received on such Distribution Date and (B) the Basis Risk Shortfall Carry
      Forward Amount for the previous Distribution Date not previously paid, together
      with interest thereon at a rate equal to the related Pass-Through Rate for
      the
      current Distribution Date.

     

    Book-Entry
      Certificates:
      Any of
      the Certificates that shall be registered in the name of the Depository or
      its
      nominee, the ownership of which is reflected on the books of the Depository
      or
      on the books of a person maintaining an account with the Depository (directly,
      as a “Depository Participant”, or indirectly, as an indirect participant in
      accordance with the rules of the Depository and as described in Section 7.06).
      As of the Closing Date, each Class of Offered Certificates constitutes a Class
      of Book-Entry Certificates.

     

    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, Columbia, Maryland, Minneapolis,
      Minnesota or the city in which the Corporate Trust Office of the Trustee or
      the
      Securities Administrator or the principal office of the Company or the Master
      Servicer is located are authorized or obligated by law or executive order to
      be
      closed.

     

    Certificate:
      Any one
      of the certificates of any Class executed and authenticated by the Securities
      Administrator in substantially the forms attached hereto as Exhibits A-1 through
      A-6.

     

    Certificateholder
      or Holder:
      The
      person in whose name a Certificate is registered in the Certificate Register
      (initially, Cede & Co., as nominee for the Depository, in the case of any
      Book-Entry Certificates).

     

    Certificate
      Owner:
      With
      respect to a Book-Entry Certificate, the Person that is the beneficial owner
      of
      such Book-Entry Certificate.

     

    Certificate
      Principal Balance:
      As to
      any Certificate (other than the Class C Certificates or Class R Certificates)
      and as of any Distribution Date, the Initial Certificate Principal Balance
      of
      such Certificate plus any Subsequent Recoveries added to the Certificate
      Principal Balance of such Certificate pursuant to Section 5.04(b), less the
      sum
      of (i) all amounts distributed with respect to such Certificate in reduction
      of
      the Certificate Principal Balance thereof on previous Distribution Dates
      pursuant to Section 5.04, and (ii) any Applied Realized Loss Amounts allocated
      to such Certificate on previous Distribution Dates. As to the Class C
      Certificates and as of any Distribution Date, an amount equal to the
      Uncertificated Principal Balance of the Class C Interest.

     

    Certificate
      Register:
      The
      register maintained pursuant to Section 7.02 hereof.

     

    Class:
      All
      Certificates bearing the same Class designation as set forth in Section 7.01
      hereof.

     

    Class
      A Certificate:
      Any of
      the Class A-1, Class A-2 and Class A-3 Certificates.

     

    Class
      A Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the Principal
      Distribution Amount for such Distribution Date and (y) the greater of (A) the
      excess, if any, of (i) the aggregate Certificate Principal Balance of the Class
      A Certificates immediately prior to such Distribution Date, over (ii) the lesser
      of (a) the product of (1) 83.50% and (2) the aggregate Stated Principal Balance
      of the Mortgage Loans as of the last day of the related Due Period (after giving
      effect to scheduled payments of principal due during the related Due Period,
      to
      the extent received or advanced, and unscheduled collections of principal
      received during the related Prepayment Period, and after reduction for Realized
      Losses incurred during the prior calendar month), and (b) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month)
      minus $1,325,186, and (B) the lesser of (I) $1,000, and (II) the aggregate
      Certificate Principal Balance of the Class A Certificates on such Distribution
      Date prior to principal distributions on such Certificates.

     

    Class
      A-1 Certificate:
      Any
      Certificate designated as a “Class A-1 Certificate” on the face thereof, in the
      form of Exhibit A-1 hereto, representing the right to the Percentage Interest
      of
      distributions provided for the Class A-1 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC II and (ii) the right to receive
      Basis Risk Shortfall Carry Forward Amounts.

     

    Class
      A-1 Pass-Through Rate:
      Shall
      mean on any Distribution Date, 6.25% per annum, subject to the applicable Net
      Rate Cap.

     

    Class
      A-2 Certificate:
      Any
      Certificate designated as a “Class A-2 Certificate” on the face thereof, in the
      form of Exhibit A-1 hereto, representing the right to the Percentage Interest
      of
      distributions provided for the Class A-2 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC II and (ii) the right to receive
      Basis Risk Shortfall Carry Forward Amounts.

     

    Class
      A-2 Pass-Through Rate:
      Shall
      mean on any Distribution Date, 6.25% per annum, subject to the applicable Net
      Rate Cap.

     

    Class
      A-3 Certificate:
      Any
      Certificate designated as a “Class A-3 Certificate” on the face thereof, in the
      form of Exhibit A-1 hereto, representing the right to the Percentage Interest
      of
      distributions provided for the Class A-2 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC II and (ii) the right to receive
      Basis Risk Shortfall Carry Forward Amounts.

     

    Class
      A-3 Pass-Through Rate:
      Shall
      mean on any Distribution Date, 6.25% per annum, subject to the applicable Net
      Rate Cap.

     

    Class
      B Certificates:
      Any of
      the Class B-1, Class B-2, Class B-3 and Class B-4 Certificates.

     

    Class
      B-1 Certificate:
      Any
      Certificate designated as a “Class B-1 Certificate” on the face thereof, in the
      form of Exhibit A-3 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class B-1 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC II and (ii) the right to receive
      Basis Risk Shortfall Carry Forward Amounts.

     

    Class
      B-1 Pass-Through Rate:
      Shall
      mean (i) on any Distribution Date which occurs on or prior to the Optional
      Termination Date, the lesser of (1) One-Month LIBOR plus 1.000% per annum and
      (2) 11.00% per annum and (ii) for each Distribution Date thereafter, the lesser
      of (1) One-Month LIBOR plus 1.500% per annum and (2) 11.00% per annum, in each
      case subject to a cap equal to the related Net Rate Cap for such Distribution
      Date.

     

    Class
      B-1 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount, the Class M-1 Principal Distribution Amount,
      the
      Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution
      Amount and the Class M-4 Principal Distribution Amount and (y) the excess,
      if
      any, of (a) the sum of (1) the aggregate Certificate Principal Balance of the
      Class A Certificates (after taking into account the distribution of the Class
      A
      Principal Distribution Amount on such Distribution Date), (2) the Certificate
      Principal Balance of the Class M-1 Certificates (after taking into account
      the
      payment of the Class M-1 Principal Distribution Amount on such Distribution
      Date), (3) the Certificate Principal Balance of the Class M-2 Certificates
      (after taking into account the payment of the Class M-2 Principal Distribution
      Amount on such Distribution Date), (4) the Certificate Principal Balance of
      the
      Class M-3 Certificates (after taking into account the payment of the Class
      M-3
      Principal Distribution Amount on such Distribution Date), (5) the Certificate
      Principal Balance of the Class M-4 Certificates (after taking into account
      the
      payment of the Class M-4 Principal Distribution Amount on such Distribution
      Date) and (6) the Certificate Principal Balance of the Class B-1 Certificates
      immediately prior to such Distribution Date, over (b) the lesser of (1) the
      product of (x) 95.00% and (y) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period, and after reduction for Realized Losses
      incurred during the prior calendar month), and (2) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month)
      minus $1,325,186.

     

    Class
      B-2 Certificate:
      Any
      Certificate designated as a “Class B-2 Certificate” on the face thereof, in the
      form of Exhibit A-3 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class B-2 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC II and (ii) the right to receive
      Basis Risk Shortfall Carry Forward Amounts.

     

    Class
      B-2 Pass-Through Rate:
      Shall
      mean (i) on any Distribution Date which occurs on or prior to the Optional
      Termination Date, the lesser of (1) One-Month LIBOR plus 1.150% per annum and
      (ii) 11.00% per annum and (ii) for each Distribution Date thereafter, the lesser
      of (1) One-Month LIBOR plus 1.725% per annum and (ii) 11.00% per annum, in
      each
      case subject to a cap equal to the related Net Rate Cap for such Distribution
      Date.

     

    Class
      B-2 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount, the Class M-1 Principal Distribution Amount,
      the
      Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution
      Amount and the Class M-4 Principal Distribution Amount and (y) the excess,
      if
      any, of (a) the sum of (1) the aggregate Certificate Principal Balance of the
      Class A Certificates (after taking into account the distribution of the Class
      A
      Principal Distribution Amount on such Distribution Date), (2) the Certificate
      Principal Balance of the Class M-1 Certificates (after taking into account
      the
      payment of the Class M-1 Principal Distribution Amount on such Distribution
      Date), (3) the Certificate Principal Balance of the Class M-2 Certificates
      (after taking into account the payment of the Class M-2 Principal Distribution
      Amount on such Distribution Date), (4) the Certificate Principal Balance of
      the
      Class M-3 Certificates (after taking into account the payment of the Class
      M-3
      Principal Distribution Amount on such Distribution Date), (5) the Certificate
      Principal Balance of the Class M-4 Certificates (after taking into account
      the
      payment of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (6) the Certificate Principal Balance of the Class B-1 Certificates
      (after taking into account the payment of the Class B-1 Principal Distribution
      Amount on such Distribution Date) and (7) the Certificate Principal Balance
      of
      the Class B-2 Certificates immediately prior to such Distribution Date, over
      (b)
      the lesser of (1) the product of (x) 95.70% and (y) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month),
      and (2) the aggregate Stated Principal Balance of the Mortgage Loans as of
      the
      last day of the related Due Period (after giving effect to scheduled payments
      of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the prior
      calendar month) minus $1,325,186.

     

    Class
      B-3 Certificate:
      Any
      Certificate designated as a “Class B-3 Certificate” on the face thereof, in the
      form of Exhibit A-3 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class B-3 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC II and (ii) the right to receive
      Basis Risk Shortfall Carry Forward Amounts.

     

    Class
      B-3 Pass-Through Rate:
      Shall
      mean (i) on any Distribution Date which occurs on or prior to the Optional
      Termination Date, the lesser of (1) One-Month LIBOR plus 1.800% per annum and
      (ii) 11.00% per annum and (ii) for each Distribution Date thereafter, the lesser
      of (1) One-Month LIBOR plus 2.700% per annum and (ii) 11.00% per annum, in
      each
      case subject to a cap equal to the related Net Rate Cap for such Distribution
      Date.

     

    Class
      B-3 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount, the Class M-1 Principal Distribution Amount,
      the
      Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution
      Amount and the Class M-4 Principal Distribution Amount and (y) the excess,
      if
      any, of (a) the sum of (1) the aggregate Certificate Principal Balance of the
      Class A Certificates (after taking into account the distribution of the Class
      A
      Principal Distribution Amount on such Distribution Date), (2) the Certificate
      Principal Balance of the Class M-1 Certificates (after taking into account
      the
      payment of the Class M-1 Principal Distribution Amount on such Distribution
      Date), (3) the Certificate Principal Balance of the Class M-2 Certificates
      (after taking into account the payment of the Class M-2 Principal Distribution
      Amount on such Distribution Date), (4) the Certificate Principal Balance of
      the
      Class M-3 Certificates (after taking into account the payment of the Class
      M-3
      Principal Distribution Amount on such Distribution Date), (5) the Certificate
      Principal Balance of the Class M-4 Certificates (after taking into account
      the
      payment of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (6) the Certificate Principal Balance of the Class B-1 Certificates
      (after taking into account the payment of the Class B-1 Principal Distribution
      Amount on such Distribution Date), (7) the Certificate Principal Balance of
      the
      Class B-2 Certificates (after taking into account the payment of the Class
      B-2
      Principal Distribution Amount on such Distribution Date) and (8) the Certificate
      Principal Balance of the Class B-3 Certificates immediately prior to such
      Distribution Date, over (b) the lesser of (1) the product of (x) 96.70% and
      (y)
      the aggregate Stated Principal Balance of the Mortgage Loans as of the last
      day
      of the related Due Period (after giving effect to scheduled payments of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the prior
      calendar month), and (2) the aggregate Stated Principal Balance of the Mortgage
      Loans as of the last day of the related Due Period (after giving effect to
      scheduled payments of principal due during the related Due Period, to the extent
      received or advanced, and unscheduled collections of principal received during
      the related Prepayment Period, and after reduction for Realized Losses incurred
      during the prior calendar month) minus $1,325,186.

     

    Class
      B-4 Certificate:
      Any
      Certificate designated as a “Class B-4 Certificate” on the face thereof, in the
      form of Exhibit A-3 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class B-4 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC II and (ii) the right to receive
      Basis Risk Shortfall Carry Forward Amounts.

     

    Class
      B-4 Pass-Through Rate:
      Shall
      mean (i) on any Distribution Date which occurs on or prior to the Optional
      Termination Date, the lesser of (1) One-Month LIBOR plus 1.800% per annum and
      (ii) 11.00% per annum and (ii) for each Distribution Date thereafter, the lesser
      of (1) One-Month LIBOR plus 2.700% per annum and (ii) 11.00% per annum, in
      each
      case subject to a cap equal to the related Net Rate Cap for such Distribution
      Date.

     

    Class
      B-4 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount, the Class M-1 Principal Distribution Amount,
      the
      Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution
      Amount and the Class M-4 Principal Distribution Amount and (y) the excess,
      if
      any, of (a) the sum of (1) the aggregate Certificate Principal Balance of the
      Class A Certificates (after taking into account the distribution of the Class
      A
      Principal Distribution Amount on such Distribution Date), (2) the Certificate
      Principal Balance of the Class M-1 Certificates (after taking into account
      the
      payment of the Class M-1 Principal Distribution Amount on such Distribution
      Date), (3) the Certificate Principal Balance of the Class M-2 Certificates
      (after taking into account the payment of the Class M-2 Principal Distribution
      Amount on such Distribution Date), (4) the Certificate Principal Balance of
      the
      Class M-3 Certificates (after taking into account the payment of the Class
      M-3
      Principal Distribution Amount on such Distribution Date), (5) the Certificate
      Principal Balance of the Class M-4 Certificates (after taking into account
      the
      payment of the Class M-4 Principal Distribution Amount on such Distribution
      Date), (6) the Certificate Principal Balance of the Class B-1 Certificates
      (after taking into account the payment of the Class B-1 Principal Distribution
      Amount on such Distribution Date), (7) the Certificate Principal Balance of
      the
      Class B-2 Certificates (after taking into account the payment of the Class
      B-2
      Principal Distribution Amount on such Distribution Date), (8) the Certificate
      Principal Balance of the Class B-3 Certificates (after taking into account
      the
      payment of the Class B-3 Principal Distribution Amount on such Distribution
      Date) and (9) the Certificate Principal Balance of the Class B-4 Certificates
      immediately prior to such Distribution Date, over (b) the lesser of (1) the
      product of (x) 98.00% and (y) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the last day of the related Due Period (after giving effect
      to scheduled payments of principal due during the related Due Period, to the
      extent received or advanced, and unscheduled collections of principal received
      during the related Prepayment Period, and after reduction for Realized Losses
      incurred during the prior calendar month), and (2) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month)
      minus $1,325,186.

     

    Class
      C Certificate:
      Any
      Certificate designated as a “Class C Certificate” on the face thereof, in the
      form of Exhibit A-4 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class C Certificates herein and evidencing (i)
      a
      Regular Interest in REMIC III and (ii) the obligation to pay Basis Risk
      Shortfall Carry Forward Amounts.

     

    Class
      C Distribution Amount:
      With
      respect to any Distribution Date, the sum of (i) the Current Interest for the
      Class C Interest for such Distribution Date, (ii) any Overcollateralization
      Release Amount for such Distribution Date and (iii) without duplication, any
      Subsequent Recoveries not distributed to the Class A, Class M and Class B
      Certificates on such Distribution Date; provided, however that on any
      Distribution Date after the Distribution Date on which the Certificate Principal
      Balances of the Class A, Class M and Class B Certificates have been reduced
      to
      zero, the Class C Distribution Amount shall include the Overcollateralization
      Amount. 

     

    Class
      C Interest:
      An
      uncertificated interest in the Trust Fund held by the Trustee on behalf of
      the
      Holders of the Class C Certificates, evidencing a Regular Interest in REMIC
      II
      for purposes of the REMIC Provisions.

     

    Class
      C Pass-Through Rate:
      With
      respect to the Class C Interest, a rate per annum equal to the percentage
      equivalent of a fraction, the numerator of which is the sum of the amount
      determined for each REMIC I Regular Interest (other than REMIC I Regular
      Interest P) equal to the product of (x) the excess, if any, of the
      Uncertificated REMIC I Pass-Through Rate for such REMIC I Regular Interest
      over
      the Marker Rate and (y) a notional amount equal to the Uncertificated Principal
      Balance of such REMIC I Regular Interest, and the denominator of which is the
      aggregate Uncertificated Principal Balance of such REMIC I Regular
      Interests.

     

    Class
      M Certificates:
      Any of
      the Class M-1, Class M-2, Class M-3 and Class M-4 Certificates.

     

    Class
      M-1 Certificate:
      Any
      Certificate designated as a “Class M-1 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-1 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC II and (ii) the right to receive
      Basis Risk Shortfall Carry Forward Amounts.

     

    Class
      M-1 Pass-Through Rate:
      Shall
      mean (i) on any Distribution Date which occurs on or prior to the Optional
      Termination Date, the lesser of (1) One-Month LIBOR plus 0.360% per annum and
      (ii) 11.00% per annum and (ii) for each Distribution Date thereafter, the lesser
      of (1) One-Month LIBOR plus 0.540% per annum and (ii) 11.00% per annum, in
      each
      case subject to a cap equal to the related Net Rate Cap for such Distribution
      Date.

     

    Class
      M-1 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount and (y) the excess, if any, of (a) the sum of
      (1)
      the aggregate Certificate Principal Balance of the Class A Certificates (after
      taking into account the distribution of the Class A Principal Distribution
      Amount on such Distribution Date) and (2) the Certificate Principal Balance
      of
      the Class M-1 Certificates immediately prior to such Distribution Date, over
      (b)
      the lesser of (1) the product of (x) 88.70% and (y) the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month),
      and (2) the aggregate Stated Principal Balance of the Mortgage Loans as of
      the
      last day of the related Due Period (after giving effect to scheduled payments
      of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the prior
      calendar month) minus $1,325,186.

     

    Class
      M-2 Certificate:
      Any
      Certificate designated as a “Class M-2 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-2 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC II and (ii) the right to receive
      Basis Risk Shortfall Carry Forward Amounts.

     

    Class
      M-2 Pass-Through Rate:
      Shall
      mean (i) on any Distribution Date which occurs on or prior to the Optional
      Termination Date, the lesser of (1) One-Month LIBOR plus 0.400% per annum and
      (ii) 11.00% per annum and (ii) for each Distribution Date thereafter, the lesser
      of (1) One-Month LIBOR plus 0.600% per annum and (ii) 11.00% per annum, in
      each
      case subject to a cap equal to the related Net Rate Cap for such Distribution
      Date.

     

    Class
      M-2 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount and the Class M-1 Principal Distribution Amount
      and (y) the excess, if any, of (a) the sum of (1) the aggregate Certificate
      Principal Balance of the Class A Certificates (after taking into account the
      distribution of the Class A Principal Distribution Amount on such Distribution
      Date), (2) the Certificate Principal Balance of the Class M-1 Certificates
      (after taking into account the distribution of the Class M-1 Principal
      Distribution Amount on such Distribution Date) and (3) the Certificate Principal
      Balance of the Class M-2 Certificates immediately prior to such Distribution
      Date, over (b) the lesser of (1) the product of (x) 91.60% and (y) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period (after giving effect to scheduled payments of principal due during
      the related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month),
      and (2) the aggregate Stated Principal Balance of the Mortgage Loans as of
      the
      last day of the related Due Period (after giving effect to scheduled payments
      of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the prior
      calendar month) minus $1,325,186.

     

    Class
      M-3 Certificate:
      Any
      Certificate designated as a “Class M-3 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-3 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC II and (ii) the right to receive
      Basis Risk Shortfall Carry Forward Amounts.

     

    Class
      M-3 Pass-Through Rate:
      Shall
      mean (i) on any Distribution Date which occurs on or prior to the Optional
      Termination Date, the lesser of (1) One-Month LIBOR plus 0.450% per annum and
      (ii) 11.00% per annum and (ii) for each Distribution Date thereafter, the lesser
      of (1) One-Month LIBOR plus 0.675% per annum and (ii) 11.00% per annum, in
      each
      case subject to a cap equal to the related Net Rate Cap for such Distribution
      Date.

     

    Class
      M-3 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount, the Class M-1 Principal Distribution Amount
      and
      the Class M-2 Principal Distribution Amount and (y) the excess, if any, of
      (a)
      the sum of (1) the aggregate Certificate Principal Balance of the Class A
      Certificates (after taking into account the distribution of the Class A
      Principal Distribution Amount on such Distribution Date), (2) the Certificate
      Principal Balance of the Class M-1 Certificates (after taking into account
      the
      distribution of the Class M-1 Principal Distribution Amount on such Distribution
      Date), (3) the Certificate Principal Balance of the Class M-2 Certificates
      (after taking into account the distribution of the Class M-2 Principal
      Distribution Amount on such Distribution Date) and (4) the Certificate Principal
      Balance of the Class M-3 Certificates immediately prior to such Distribution
      Date, over (b) the lesser of (1) the product of (x) 93.00% and (y) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period (after giving effect to scheduled payments of principal due during
      the related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month),
      and (2) the aggregate Stated Principal Balance of the Mortgage Loans as of
      the
      last day of the related Due Period (after giving effect to scheduled payments
      of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the prior
      calendar month) minus $1,325,186.

     

    Class
      M-4 Certificate:
      Any
      Certificate designated as a “Class M-4 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-4 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC II and (ii) the right to receive
      Basis Risk Shortfall Carry Forward Amounts.

     

    Class
      M-4 Pass-Through Rate:
      Shall
      mean (i) on any Distribution Date which occurs on or prior to the Optional
      Termination Date, the lesser of (1) One-Month LIBOR plus 0.500% per annum and
      (ii) 11.00% per annum and (ii) for each Distribution Date thereafter, the lesser
      of (1) One-Month LIBOR plus 0.750% per annum and (ii) 11.00% per annum, in
      each
      case subject to a cap equal to the related Net Rate Cap for such Distribution
      Date.

     

    Class
      M-4 Principal Distribution Amount:
      For any
      Distribution Date, an amount equal to the lesser of (x) the remaining Principal
      Distribution Amount for such Distribution Date after distribution of the Class
      A
      Principal Distribution Amount, the Class M-1 Principal Distribution Amount,
      the
      Class M-2 Principal Distribution Amount and the Class M-3 Principal Distribution
      Amount and (y) the excess, if any, of (a) the sum of (1) the aggregate
      Certificate Principal Balance of the Class A Certificates (after taking into
      account the distribution of the Class A Principal Distribution Amount on such
      Distribution Date), (2) the Certificate Principal Balance of the Class M-1
      Certificates (after taking into account the distribution of the Class M-1
      Principal Distribution Amount on such Distribution Date), (3) the Certificate
      Principal Balance of the Class M-2 Certificates (after taking into account
      the
      distribution of the Class M-2 Principal Distribution Amount on such Distribution
      Date), (4) the Certificate Principal Balance of the Class M-3 Certificates
      (after taking into account the distribution of the Class M-3 Principal
      Distribution Amount on such Distribution Date) and (5) the Certificate Principal
      Balance of the Class M-4 Certificates immediately prior to such Distribution
      Date, over (b) the lesser of (1) the product of (x) 94.00% and (y) the aggregate
      Stated Principal Balance of the Mortgage Loans as of the last day of the related
      Due Period (after giving effect to scheduled payments of principal due during
      the related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month),
      and (2) the aggregate Stated Principal Balance of the Mortgage Loans as of
      the
      last day of the related Due Period (after giving effect to scheduled payments
      of
      principal due during the related Due Period, to the extent received or advanced,
      and unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the prior
      calendar month) minus $1,325,186.

     

    Class
      P Certificate:
      Any
      Certificate designated as a “Class P Certificate” on the face thereof, in the
      form of Exhibit A-5 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class P Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC IV and (ii) the right to receive
      any
      Prepayment Charge Waiver Amounts.

     

    Class
      P Certificate Account:
      The
      account established and maintained by the Securities Administrator pursuant
      to
      Section 6.09 hereof.

     

    Class
      P Interest:
      An
      uncertificated interest in the Trust Fund held by the Trustee on behalf of
      the
      Holders of the Class P Certificates, evidencing a Regular Interest in REMIC
      II
      for purposes of the REMIC Provisions.

    

    Class
      R Certificate:
      Any of
      the Class R-1, Class R-2 or Class RX Certificates.

     

    Class
      R-1 Certificate:
      Any
      Certificate designated a “Class R-1 Certificate” on the face thereof, in the
      form set forth in Exhibit A-6 hereto, evidencing the Residual Interest in REMIC
      I and representing the right to the Percentage Interest of distributions
      provided for the Class R-1 Certificates as set forth herein.

     

    Class
      R-2 Certificate:
      Any
      Certificate designated a “Class R-2 Certificate” on the face thereof, in the
      form set forth in Exhibit A-6 hereto, evidencing the Residual Interest in REMIC
      II and representing the right to the Percentage Interest of distributions
      provided for the Class R-2 Certificates as set forth herein.

     

    Class
      R-3 Interest:
      The
      uncertificated Residual Interest in REMIC III.

     

    Class
      R-4 Interest:
      The
      uncertificated Residual Interest in REMIC IV.

     

    Class
      RX Certificate:
      Any
      Certificate designated a “Class RX Certificate” on the face thereof, in the form
      set forth in Exhibit A-6 hereto, evidencing the ownership of the Class R-3
      Interest and Class R-4 Interest and representing the right to the Percentage
      Interest of distributions provided for the Class RX Certificates as set forth
      herein.

     

    Closing
      Date:
      November 30, 2006.

     

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

     

    Company:
      EMC.

     

    Company
      Information:
      As
      defined in Section 4.18(b).

     

    Compensating
      Interest:
      An
      amount, not to exceed the Servicing Fee, to be deposited in the Distribution
      Account by the Company or the related Servicer with respect to the payment
      of a
      Prepayment Interest Shortfall on a Mortgage Loan subject to this Agreement;
      provided that in the event the Company or the related Servicer fails to make
      such payment, the Master Servicer shall be obligated to do so to the extent
      provided in Section 6.02(c) hereof.

     

    Corporate
      Trust Office:
      With
      respect to the Trustee, the designated corporate trust office of the Trustee
      where 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 U.S. Bank National Association, One Federal Street,
      3rd
      Floor,
      Boston, Massachusetts 02110, Attention: Corporate Trust Services/BSABS 2006-AC5,
      or such other address as the Trustee may designate from time to time, and (ii)
      with respect to the Securities Administrator, the designated office of the
      Securities Administrator 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 9062 Old Annapolis
      Road, Columbia, MD 21045, Attention: Corporate Trust Services, BSABS 2006-AC5
      except for purposes of certificate transfer purposes, such term shall mean
      the
      office or agency of the Securities Administrator located at Wells Fargo Bank,
      N.A., Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479,
      Attention: Corporate Trust Services, BSABS 2006-AC5.

     

    Corresponding
      Certificate:
      With
      respect to each REMIC I Regular Interest (other than REMIC I Regular Interests
      AA, ZZ and P), the Certificate with the corresponding designation.

     

    Current
      Interest:
      As of
      any Distribution Date, with respect to the Certificates and interests of each
      class (other than the Class P Interest, the Class P Certificates, the Residual
      Interests and the Residual Certificates), (i) the interest accrued on the
      Certificate Principal Balance or Notional Amount or Uncertificated Notional
      Amount, as applicable, during the related Interest Accrual Period at the
      applicable Pass-Through Rate, plus any amount previously distributed with
      respect to interest for such Certificate or interest that has been recovered
      as
      a voidable preference by a trustee in bankruptcy minus (ii) the sum of (a)
      any
      Prepayment Interest Shortfall for such Distribution Date, to the extent not
      covered by Compensating Interest and (b) any Relief Act Interest Shortfalls
      during the related Due Period, provided, however, that for purposes of
      calculating Current Interest for any such class, amounts specified in clause
      (ii) hereof for any such Distribution Date shall be allocated first to the
      C
      Certificates and the Class C Interest in reduction of amounts otherwise
      distributable to such Certificates and interest on such Distribution Date and
      then any excess shall be allocated to each Class of Class A, Class M and Class
      B
      Certificates pro
      rata
      based on
      the respective amounts of interest accrued pursuant to clause (i) hereof for
      each such Class on such Distribution Date.

     

    Current
      Report:
      The
      Current Report pursuant to Section 13 or 15(d) of the Exchange Act.

     

    Current
      Specified Enhancement Percentage:
      With
      respect to any Distribution Date, the percentage obtained by dividing (x) the
      sum of (i) the aggregate Certificate Principal Balance of the Class M
      Certificates and Class B Certificates and (ii) the Overcollateralization Amount,
      in each case prior to the distribution of the Principal Distribution Amount
      on
      such Distribution Date, by (y) the aggregate Stated Principal Balance of the
      Mortgage Loans as of the end of the related Due Period (after giving effect
      to
      scheduled payments of principal due during the related Due Period, to the extent
      received or advanced, and unscheduled collections of principal received during
      the related Prepayment Period, and after reduction for Realized Losses incurred
      during the prior calendar month).

     

    Custodial
      Agreement:
      An
      agreement, dated as of November 30, 2006, among the Depositor, the Seller,
      the
      Trustee, the Master Servicer, the Securities Administrator and the Custodian
      in
      substantially the form of Exhibit J hereto.

     

    Custodian:
      Wells
      Fargo Bank, National Association, or any successor custodian appointed pursuant
      to the provisions hereof and the Custodial Agreement.

     

    Cut-off
      Date:
      The
      close of business on November 1, 2006.

     

    Cut-off
      Date Principal Balance:
      As to
      any Mortgage Loan, the unpaid principal balance thereof as of the close of
      business on the Cut-off Date after application of all Principal Prepayments
      received prior to the Cut-off Date and scheduled payments of principal due
      on or
      before the Cut-off Date, whether or not received, but without giving effect
      to
      any installments of principal received in respect of Due Dates after the Cut-off
      Date. The aggregate Cut-off Date Principal Balance of the Mortgage Loans is
      $265,037,284.33.

     

    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 that became final and non-appealable, except such a reduction
      resulting from a Deficient Valuation or any other reduction that results in
      a
      permanent forgiveness of principal.

     

    Deficient
      Valuation:
      With
      respect to any Mortgage Loan, a valuation by a court of competent jurisdiction
      of the Mortgaged Property in an amount less than the then outstanding
      indebtedness under such 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 that is final and non-appealable in a proceeding under
      the
      Bankruptcy Code.

     

    Definitive
      Certificates:
      As
      defined in Section 7.06.

     

    Deleted
      Mortgage Loan:
      A
      Mortgage Loan replaced or to be replaced by a Replacement Mortgage
      Loan.

     

    Delinquency
      Event:
      A
      Delinquency Event shall have occurred and be continuing if at any time, (x)
      the
      percent equivalent of a fraction, the numerator of which is the aggregate Stated
      Principal Balance of the Mortgage Loans that are 60 days or more Delinquent
      (including for this purpose any such Mortgage Loans in bankruptcy or foreclosure
      and Mortgage Loans with respect to which the related Mortgaged Property is
      REO
      Property), and the denominator of which is the aggregate Stated Principal
      Balance of all of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month)
      exceeds (y) 42.40% of the Current Specified Enhancement Percentage.

     

    Delinquent:
      A
      Mortgage Loan is “delinquent” if any payment due thereon is not made pursuant to
      the terms of such Mortgage Loan by the close of business on the day such payment
      is scheduled to be due. A Mortgage Loan is “30 days delinquent” if such payment
      has not been received by the close of business on the corresponding day of
      the
      month immediately succeeding the month in which such payment was due, or, if
      there is no such corresponding day (e.g., as when a 30-day month follows a
      31-day month in which a payment was due on the 31st day of such month), then
      on
      the last day of such immediately succeeding month. Similarly for “60 days
      delinquent,” “90 days delinquent” and so on. This method of determining
      delinquencies is also referred to as the OTS method.

     

    Denomination:
      With
      respect to each Certificate, the amount set forth on the face thereof as the
      “Initial Principal Balance or initial notional amount of this
      Certificate”.

     

    Depositor:
      Bear
      Stearns Asset Backed Securities I LLC, a Delaware limited liability company,
      or
      its successor in interest.

     

    Depositor
      Information:
      As
      defined in Section 4.18(b). 

     

    Depository:
      The
      initial Depository shall be The Depository Trust Company (“DTC”), the nominee of
      which is Cede & Co., or any other organization registered as a “clearing
      agency” pursuant to Section 17A of the Securities Exchange Act of 1934, as
      amended. The Depository shall initially be 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
      Agreement:
      With
      respect to the Class of Book-Entry Certificates, the agreement between the
      Issuing Entity and the initial Depository, dated as of the Closing Date,
      substantially in the form of Exhibit H.

     

    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:
      With
      respect to any Distribution Date, the 15th day of the month of such Distribution
      Date or, if such 15th day is not a Business Day, the immediately preceding
      Business Day.

     

    Distribution
      Account:
      The
      separate Eligible Account created and maintained by the Securities Administrator
      pursuant to Section 5.08 in the name of the Trustee for the benefit of the
      Certificateholders and designated “U.S. Bank National Association, in trust for
      registered Holders of Bear Stearns Asset Backed Securities I LLC, Asset-Backed
      Certificates, Series 2006-AC5” shall be held in trust for the Certificateholders
      for the uses and purposes set forth in this Agreement.

     

    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 December 2006.

     

    Distribution
      Account Deposit Date:
      Two
      Business Days prior to each Distribution Date.

     

    Distribution
      Report:
      The
      Asset-Backed Issuer Distribution Report pursuant to Section 13 or 15(d) of
      the
      Exchange Act.

     

    Due
      Date:
      As to
      any Mortgage Loan, the date in each month on which the related Scheduled Payment
      is due, as set forth in the related Mortgage Note.

     

    Due
      Period:
      With
      respect to any Distribution Date, the period from the second day of the calendar
      month preceding the calendar month in which such Distribution Date occurs
      through close of business on the first day of the calendar month in which such
      Distribution Date occurs.

     

    EDGAR:
      As
      defined in Section 4.18.

     

    Eligible
      Account:
      Any of
      (i) an account or accounts maintained with a federal or state chartered
      depository institution or trust company, the long-term unsecured debt
      obligations and 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, so long as
      Moody’s is not a Rating Agency) are rated by each Rating Agency in one of its
      two highest long-term and its highest short-term rating categories respectively,
      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 the corporate trust department of a federal or state
      chartered depository institution or trust company having capital and surplus
      of
      not less than $50,000,000, acting in its fiduciary capacity or (iv) any other
      account acceptable to the Rating Agencies. Eligible Accounts may bear interest,
      and may include, if otherwise qualified under this definition, accounts
      maintained with the Trustee.

     

    EMC:
      EMC
      Mortgage Corporation, a Delaware corporation, and its successors and
      assigns.

     

    EMC
      Flow Loans:
      The
      Mortgage Loans purchased by EMC pursuant to a flow loan purchase
      agreement.

     

    EMC
      Mortgage Loans:
      Those
      Mortgage Loans serviced by the Company pursuant to the terms of this
      Agreement.

     

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

     

    ERISA
      Restricted Certificates:
      Any of
      the Class C, Class P and Residual Certificates.

     

    Event
      of Default:
      As
      defined in Section 9.01 hereof.

     

    Excess
      Cashflow:
      With
      respect to any Distribution Date, an amount, if any, equal to the sum of (a)
      the
      Remaining Excess Spread for such Distribution Date and (b) the
      Overcollateralization Release Amount for such Distribution Date.

     

    Excess
      Liquidation Proceeds:
      To the
      extent not required by law to be paid to the related Mortgagor, the excess,
      if
      any, of any Liquidation Proceeds with respect to a Mortgage Loan over the Stated
      Principal Balance of such Mortgage Loan and accrued and unpaid interest at
      the
      related Mortgage Rate through the last day of the month in which the Mortgage
      Loan has been liquidated.

     

    Excess
      Spread:
      With
      respect to any Distribution Date, the excess, if any, of (i) the Interest Funds
      for such Distribution Date over (ii) the sum of the Current Interest on the
      Class A, Class M and Class B Certificates and Interest Carry Forward Amounts
      on
      the Class A Certificates (other than Interest Carry Forward Amounts paid
      pursuant to Section 6.04(a)(3)(A)), in each case for such Distribution
      Date.

     

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

     

    Exchange
      Act Reports:
      Any
      reports required to be filed pursuant to Section 4.18 of this
      Agreement.

     

    Exemption:
      Prohibited Transaction Exemption 90-30, as amended from time to
      time.

     

    Extra
      Principal Distribution Amount:
      With
      respect to any Distribution Date, the lesser of (i) the excess, if any, of
      the
      Overcollateralization Target Amount for such Distribution Date, over the
      Overcollateralization Amount for such Distribution Date (after giving effect
      to
      distributions of principal on the Certificates other than any Extra Principal
      Distribution Amount) and (ii) the Excess Spread for such Distribution
      Date.

     

    Fannie
      Mae:
      Fannie
      Mae (formally, Federal National Mortgage Association), or any successor
      thereto.

     

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

     

    Final
      Recovery Determination:
      With
      respect to any defaulted Mortgage Loan or any REO Property (other than a
      Mortgage Loan or REO Property purchased by EMC pursuant to or as contemplated
      by
      Section 2.03(c) or Section 11.01), a determination made by the Company pursuant
      to this Agreement or the applicable Servicer pursuant to the related Servicing
      Agreement that all Insurance Proceeds, Liquidation Proceeds and other payments
      or recoveries which the Company or such Servicer, in its reasonable good faith
      judgment, expects to be finally recoverable in respect thereof have been so
      recovered. The Master Servicer shall maintain records, based solely on
      information provided by the Company and each Servicer, of each Final Recovery
      Determination made thereby.

     

    Final
      Scheduled Distribution Date:
      With
      respect to the Certificates, December 25, 2036.

     

    Fiscal
      Quarter:
      December 1 to February 29 (or the last day in such month), March 1 to May 31,
      June 1 to August 31, or September to November 30, as applicable.

     

    Form
      8-K Disclosure Information:
      As
      defined in Section 4.18(a)(ii)(A).

     

    Freddie
      Mac:
      Freddie
      Mac (formally, The Federal Home Loan Mortgage Corporation), or any successor
      thereto.

     

    Global
      Certificate:
      Any
      Private Certificate registered in the name of the Depository or its nominee,
      beneficial interests in which are reflected on the books of the Depository
      or on
      the books of a Person maintaining an account with such Depository (directly
      or
      as an indirect participant in accordance with the rules of such
      depository).

     

    Greenpoint:
      GreenPoint Mortgage Funding, Inc.

     

    Greenpoint
      Assignment Agreement:
      The
      Assignment, Assumption and Recognition Agreement, dated as of November 30,
      2006,
      by and among the Seller, Greenpoint and the Trustee evidencing the assignment
      of
      the Greenpoint Servicing Agreement to the Trust, attached hereto as Exhibit
      R-1.

     

    Greenpoint
      Servicing Agreement:
      The
      Purchase, Warranties and Servicing Agreement, dated as of September 1, 2003,
      between the Seller and Greenpoint, as amended by Amendment Number One, dated
      as
      of January 1, 2006, attached hereto as Exhibit Q-1, as modified by the
      Greenpoint Assignment Agreement.

     

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

     

    National
      City:
      National City Mortgage Co.

     

    National
      City Assignment Agreement:
      The
      Assignment, Assumption and Recognition Agreement, dated as of November 30,
      2006,
      by and among the Seller, National City and the Trustee evidencing the assignment
      of the National City Servicing Agreement to the Trust, attached hereto as
      Exhibit R-2.

     

    National
      City Servicing Agreement:
      The
      Amended and Restated Purchase, Warranties and Servicing Agreement, dated as
      of
      October 1, 2001, between the Seller and National City, as amended by Amendment
      Reg AB dated as of March 1, 2006, attached hereto as Exhibit Q-2, as modified
      by
      the National City Assignment Agreement.

     

    Indemnified
      Persons:
      The
      Trustee, the Master Servicer, the Company, the Trust Fund and the Securities
      Administrator and their officers, directors, agents and employees and, with
      respect to the Trustee, any separate co-trustee and its officers, directors,
      agents and employees.

     

    Individual
      Certificate:
      Any
      Private Certificate registered in the name of the Holder other than the
      Depository or its nominee.

     

    Initial
      Certificate Principal Balance:
      With
      respect to any Certificate, the Certificate Principal Balance of such
      Certificate or any predecessor Certificate on the Closing Date.

     

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

     

    Insurance
      Proceeds:
      Proceeds paid in respect of the Mortgage Loans pursuant to any Insurance Policy
      or any other insurance policy covering a Mortgage Loan, to the extent such
      proceeds are payable to the mortgagee under the Mortgage, the Company, the
      related Servicer or the Trustee under the deed of trust and are not applied
      to
      the restoration of the related Mortgaged Property or released to the Mortgagor
      in accordance with the procedures that the Company or the related Servicer
      would
      follow in servicing mortgage loans held for its own account, 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 the Certificates (other than the Class A, Class C, Class P
      Certificates and the Residual Certificates) and any Distribution Date, the
      period from and including the 25th day of the calendar month preceding the
      month
      in which such Distribution Date occurs (or with respect to the Class M
      Certificates and Class B Certificates and the first Interest Accrual Period,
      the
      Closing Date) to and including the 24th
      day of
      the calendar month in which such Distribution Date occurs. The Class R
      Certificates and Class P Certificates are not entitled to distributions of
      interest and do not have an Interest Accrual Period. With respect to the Class
      A
      Certificates, Class C Certificates and the Class C Interest and any Distribution
      Date, the calendar month immediately preceding such Distribution Date. All
      calculations of interest on the Class A Certificates and Class C Certificates
      and the Class C Interest will be made on the basis of a 360-day year consisting
      of twelve 30-day months. All calculations of interest on the Class M
      Certificates and Class B Certificates will be made on the basis of the actual
      number of days elapsed in the related Interest Accrual Period.

     

    Interest
      Carry Forward Amount:
      As of
      any Distribution Date and with respect to each Class of Certificates (other
      than
      the Class C, Class P and Residual Certificates), the sum of (i) the excess
      of
      (a) the Current Interest for such Class with respect to such Distribution Date
      and any prior Distribution Dates over (b) the amount actually distributed to
      such Class of Certificates with respect to interest on such Distribution Dates
      and (ii) interest thereon (to the extent permitted by applicable law) at the
      applicable Pass-Through Rate for such Class for the related Interest Accrual
      Period including the Interest Accrual Period relating to such Distribution
      Date.

     

    Interest
      Determination Date:
      Shall
      mean the second LIBOR Business Day preceding the commencement of each Interest
      Accrual Period.

     

    Interest
      Funds:
      For any
      Distribution Date, (i) the sum, without duplication, of (a) all scheduled
      interest during the related Due Period with respect to the related Mortgage
      Loans less the Servicing Fee, the Master Servicing Fee and the LPMI Fee, if
      any,
      (b) all Advances relating to interest with respect to the related Mortgage
      Loans
      remitted by the related Servicer, the Company or Master Servicer, as applicable,
      on or prior to the related Remittance Date, (c) all Compensating Interest with
      respect to the related Mortgage Loans required to be remitted by the Company
      or
      the Master Servicer pursuant to this Agreement or the related Servicer pursuant
      to the related Servicing Agreement with respect to such Distribution Date,
      (d)
      Liquidation Proceeds and Subsequent Recoveries with respect to the related
      Mortgage Loans collected during the prior calendar month (to the extent such
      Liquidation Proceeds and Subsequent Recoveries relate to interest), (e) all
      amounts relating to interest with respect to each Mortgage Loan repurchased
      by
      the Seller pursuant to Sections 2.02 and 2.03 and by EMC pursuant to Section
      4.21, (f) all amounts in respect of interest paid by the Master Servicer
      pursuant to Section 11.01, in each case to the extent remitted by the Company
      or
      the related Servicer, as applicable, to the Distribution Account pursuant to
      this Agreement or the related Servicing Agreement and (g) the interest portion
      of any proceeds received from the exercise of an Optional Termination pursuant
      to Section 11.01 minus (ii) all amounts required to be reimbursed pursuant
      to
      Sections 5.02, 5.05 and 5.09 or as otherwise set forth in this
      Agreement.

     

    Issuing
      Entity:
      Bear
      Stearns Asset Backed Securities I Trust 2006-AC5.

     

    Latest
      Possible Maturity Date:
      December 25, 2036, which is the Distribution Date in the month following the
      final scheduled maturity date of the Mortgage Loan in the Trust Fund having
      the
      latest scheduled maturity date as of the Cut-off Date. For purposes of the
      Treasury regulations under Sections 860A through 860G of the Code, the latest
      possible maturity date of each Regular Interest issued by REMIC I, REMIC II,
      REMIC III and REMIC IV shall be the Latest Possible Maturity Date.

     

    LIBOR
      Business Day:
      Shall
      mean a day on which banks are open for dealing in foreign currency and exchange
      in London and New York City.

     

    LIBOR
      Certificates:
      Any of
      the Class M Certificates and Class B Certificates.

     

    Liquidated
      Loan:
      With
      respect to any Distribution Date, a defaulted Mortgage Loan that has been
      liquidated through deed-in-lieu of foreclosure, foreclosure sale, trustee’s sale
      or other realization as provided by applicable law governing the real property
      subject to the related Mortgage and any security agreements and as to which
      the
      Company or the related Servicer has made a Final Recovery Determination with
      respect thereto.

     

    Liquidation
      Proceeds:
      Amounts, other than Insurance Proceeds, received in connection with the partial
      or complete liquidation of a Mortgage Loan, whether through trustee’s sale,
      foreclosure sale or otherwise, or in connection with any condemnation or partial
      release of a Mortgaged Property and any other proceeds received with respect
      to
      an REO Property, less the sum of related unreimbursed Advances, Servicing Fees
      and Servicing Advances and all expenses of liquidation, including property
      protection expenses and foreclosure and sale costs, including court and
      reasonable attorneys fees.

     

    Loan-to-Value
      Ratio:
      The
      fraction, expressed as a percentage, the numerator of which is the original
      principal balance of the related Mortgage Loan and the denominator of which
      is
      the Appraised Value of the related Mortgaged Property.

     

    Loss
      Allocation Limitation:
      The
      meaning specified in Section 6.05(c) hereof.

     

    LPMI
      Fee:
      Shall
      mean the fee payable to the insurer for each Mortgage Loan subject to an LPMI
      Policy as set forth in such LPMI Policy and on the Mortgage Loan
      Schedule.

     

    LPMI
      Policy:
      A
      policy of mortgage guaranty insurance issued by an insurer meeting the
      requirements of Fannie Mae and Freddie Mac in which the Company or the related
      Servicer of the related Mortgage Loan is responsible for the payment of the
      LPMI
      Fee thereunder from collections on the related Mortgage Loan.

     

    Majority
      Class C Certificateholder:
      Shall
      mean the Holder of a 50.01% or greater Percentage Interest in the Class C
      Certificates.

     

    Marker
      Rate:
      With
      respect to the Class C Interest and any Distribution Date, a per annum rate
      equal to two (2) times the weighted average of the Uncertificated REMIC I
      Pass-Through Rates for the REMIC I Regular Interests (other than REMIC I Regular
      Interests AA and P), with the rate on each such REMIC I Regular Interest (other
      than REMIC I Regular Interest ZZ) subject to a cap equal to the Pass-Through
      Rate for the Corresponding Certificate for the purpose of this calculation
      for
      such Distribution Date, and with the rate on REMIC I Regular Interest ZZ subject
      to a cap of zero for the purpose of this calculation; provided, however, that
      solely for this purpose, the related cap with respect to each REMIC I Regular
      Interest (other than REMIC I Regular Interests AA, A-1, A-2, A-3, P and ZZ)
      shall be multiplied by a fraction, the numerator of which is 30 and the
      denominator of which is the actual number of days in the related Interest
      Accrual Period.

     

    Master
      Servicer:
      Wells
      Fargo Bank, National Association, in its capacity as master servicer, and its
      successors and assigns.

     

    Master
      Servicer Information:
      As
      defined in Section 4.18(b).

     

    Master
      Servicing Compensation:
      For any
      Distribution Date, the Master Servicing Fee for such Distribution Date and
      any
      amounts earned on permitted investments in the Distribution
      Account.

     

    Master
      Servicing Fee:
      As to
      each Mortgage Loan and any Distribution Date, an amount equal to 1/12th of
      the
      Master Servicing Fee Rate multiplied by the Stated Principal Balance of such
      Mortgage Loan as of the Due Date in the month preceding the month in which
      such
      Distribution Date occurs.

     

    Master
      Servicing Fee Rate:
      0.020%
      per annum.

     

    Maximum
      Mortgage Rate:
      With
      respect to each Adjustable Rate Mortgage Loan, the percentage set forth in
      the
      related Mortgage Note as the maximum Mortgage Rate thereunder.

     

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

     

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

     

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

     

    Minimum
      Mortgage Rate:
      With
      respect to each Adjustable Rate Mortgage Loan, the percentage set forth in
      the
      related Mortgage Note as the minimum Mortgage Rate thereunder.

     

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

     

    Monthly
      Statement:
      The
      statement delivered pursuant to Section 6.06.

     

    Moody’s:
      Moody’s
      Investors Service, Inc., and any successor thereto.

     

    Mortgage:
      The
      mortgage, deed of trust or other instrument creating a first lien on or first
      priority ownership interest in an estate in fee simple 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 or Custodian
      on its behalf to be added to the Mortgage File pursuant to this
      Agreement.

     

    Mortgage
      Loans:
      Such of
      the Mortgage Loans transferred and assigned to the Trustee pursuant to the
      provisions hereof, as from time to time 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. Any mortgage loan that was intended
      by
      the parties hereto to be transferred to the Trust Fund as indicated by such
      Mortgage Loan Schedule which is in fact not so transferred for any reason
      including, without limitation, a breach of the representation contained in
      Section 2.03(b)(v) hereof, shall continue to be a Mortgage Loan hereunder until
      the Purchase Price with respect thereto has been paid to the Trust
      Fund.

     

    Mortgage
      Loan Purchase Agreement:
      Shall
      mean the Mortgage Loan Purchase Agreement, dated as of November 30, 2006,
      between the Seller, as seller and the Depositor, as purchaser in the form
      attached hereto as Exhibit L.

     

    Mortgage
      Loan Purchase Price:
      The
      price, calculated as set forth in Section 11.01, to be paid in connection with
      the repurchase of the Mortgage Loans pursuant to Section 11.01.

     

    Mortgage
      Loan Schedule:
      The
      list of Mortgage Loans (as from time to time amended by the Seller to reflect
      the deletion of Deleted Mortgage Loans and the addition of Replacement 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,
      the
      initial Mortgage Loan Schedule being attached hereto as Exhibit B, setting
      forth
      the following information with respect to each Mortgage Loan:

     

    (a)  the
      city,
      state and zip code of the Mortgaged Property; 

     

    (b)  the
      property type;

     

    (c)  the
      Mortgage Interest Rate;

     

    (d)  the
      Servicing Fee Rate;

     

    (e)  the
      Master Servicing Fee Rate;

     

    (f)  the
      LPMI
      Fee, if applicable;

     

    (g)  the
      Trustee Fee Rate, if applicable;

     

    (h)  the
      Net
      Rate;

     

    (i)  the
      maturity date;

     

    (j)  the
      stated original term to maturity;

     

    (k)  the
      stated remaining term to maturity;

     

    (l)  the
      original Principal Balance;

     

    (m)  the
      first
      payment date;

     

    (n)  the
      principal and interest payment in effect as of the Cut-off Date;

     

    (o)  the
      unpaid Principal Balance as of the Cut-off Date;

     

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

     

    (q)  the
      insurer of any Primary Mortgage Insurance Policy;

     

    (r)  the
      MIN
      with respect to each MOM Loan;

     

    (s)  the
      Gross
      Margin, if applicable;

     

    (t)  the
      next
      Adjustment Date, if applicable;

     

    (u)  the
      Maximum Mortgage Rate, if applicable;

     

    (v)  the
      Minimum Mortgage Rate, if applicable;

     

    (w)  the
      Periodic Rate Cap, if applicable; 

     

    (x)  the
      Loan
      Group, if applicable;

     

    (y)  a
      code
      indicating whether the Mortgage Loan is negatively amortizing;

     

    (z)  which
      Mortgage Loans adjust after an initial fixed-rate period of one, two, three,
      five, seven or ten years or any other period; 

     

    (aa)  the
      Prepayment Charge, if any;

     

    (bb)  lien
      position (e.g., first lien or second lien);

     

    (cc)  a
      code
      indicating whether the Mortgage Loan is has a balloon payment;

     

    (dd)  a
      code
      indicating whether the Mortgage Loan is an interest-only loan; 

     

    (ee)  the
      interest-only term, if applicable;

     

    (ff)  the
      Mortgage Loan Seller; and

     

    (gg)  the
      original amortization term.

     

    Such
      schedule also shall set forth for all of the Mortgage Loans, the total number
      of
      Mortgage Loans, the total of each of the amounts described under (n) and (j)
      above, the weighted average by principal balance as of the Cut-off Date of
      each
      of the rates described under (c) through (h) above, and the weighted average
      remaining term to maturity by unpaid principal balance as of the Cut-off
      Date.

     

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

     

    Mortgage
      Rate:
      The
      annual rate of interest borne by a Mortgage Note.

     

    Mortgaged
      Property:
      The
      underlying property securing a Mortgage Loan.

     

    Mortgagor:
      The
      obligors on a Mortgage Note.

     

    Net
      Mortgage Rate:
      As to
      each Mortgage Loan, and at any time, the per annum rate equal to the Mortgage
      Rate less the sum of (i) the Servicing Fee Rate, (ii) the Master Servicing
      Fee
      Rate and (iii) the rate at which the LPMI Fee is calculated, if
      any.

     

    Net
      Rate Cap:
      With
      respect to the Class A Certificates and any Distribution Date, a per annum
      rate
      equal to the weighted average of the Net Mortgage Rates on the Mortgage Loans
      as
      of the first day of the related Due Period.

     

    With
      respect to the Class M Certificates and Class B Certificates and any
      Distribution Date, a per annum rate equal to the weighted average of the Net
      Mortgage Rates on the Mortgage Loans as of the first day of the related Due
      Period, adjusted for the actual numbers of days elapsed in the Interest Accrual
      Period.

     

    For
      federal income tax purposes, the Net Rate Cap with respect to each of the Class
      A, Class M and Class B Certificates and any Distribution Date shall be equal
      to
      a per annum rate equal to the weighted average (adjusted for the actual number
      of days elapsed in the related Intrest Accrual Period, in the case of the Class
      M Certificates and Class B Certificates) of the Uncertificated REMIC I
      Pass-Through Rates on the REMIC I Regular Interests (other than REMIC I Regular
      Interest P), weighted on the basis of the Uncertificated Principal Balances
      of
      each such REMIC I Regular Interest immediately prior to such Distribution Date.
      

    

    Non-Book-Entry
      Certificate:
      Any
      Certificate other than a Book-Entry Certificate.

     

    Nonrecoverable
      Advance:
      Any
      portion of an Advance previously made or proposed to be made by the Company
      or
      the Master Servicer pursuant to this Agreement or the related Servicer pursuant
      to the related Servicing Agreement, that, in the good faith judgment of the
      Company, the Master Servicer or the related Servicer, will not or, in the case
      of a proposed advance, would not, be ultimately recoverable by it from the
      related Mortgagor, related Liquidation Proceeds, Insurance Proceeds or
      otherwise.

     

    Notional
      Amount:
      With
      respect to the Class C Certificates and any Distribution Date, an amount equal
      to the aggregate Stated Principal Balance of the Mortgage Loans. The initial
      Notional Amount of the Class C Certificates shall be $265,037,284.33. For
      federal income tax purposes, the Class C Certificates will have a Notional
      Amount equal to the Uncertificated Notional Amount of the Class C
      Interest.

     

    Offered
      Certificates:
      Any of
      the Class A-1, Class A-2, Class A-3, Class M-1, Class M-2, Class M-3, Class
      M-4,
      Class B-1, Class B-2 and Class B-3 Certificates. 

     

    Officer’s
      Certificate:
      A
      certificate (i) signed by the Chairman of the Board, the Vice Chairman of the
      Board, the President, 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, the Seller, any Servicer or the Master
      Servicer (or any other officer 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 a particular subject) or (ii), if provided
      for
      in this Agreement, signed by a Servicing Officer, as the case may be, and
      delivered to the Depositor, the Seller, the Securities Administrator, the Master
      Servicer and/or the Trustee, as the case may be, as required by this
      Agreement.

     

    One-Month
      LIBOR:
      With
      respect to any Interest Accrual Period and the LIBOR Certificates, the rate
      determined by the Securities Administrator on the related Interest Determination
      Date on the basis of the rate for U.S. dollar deposits for one month that
      appears on Telerate Screen Page 3750 as of 11:00 a.m. (London time) on such
      Interest Determination Date. If
      such
      rate does not appear on such page (or such other page as may replace that page
      on that service, or if such service is no longer offered, such other service
      for
      displaying One-Month LIBOR or comparable rates as may be reasonably selected
      by
      the Securities Administrator), One-Month LIBOR for the applicable Interest
      Accrual Period will be the Reference Bank Rate. If no such quotations can be
      obtained by the Securities Administrator and no Reference Bank Rate is
      available, One-Month LIBOR shall be One-Month LIBOR applicable to the preceding
      Interest Accrual Period. The establishment of One-Month LIBOR on each Interest
      Determination Date by the Securities Administrator and the Securities
      Administrator’s calculation of the rate of interest applicable to the LIBOR
      Certificates for the related Interest Accrual Period shall, in the absence
      of
      manifest error, be final and binding. One-Month LIBOR for the Class M
      Certificates and Class B Certificates and any Interest Accrual Period shall
      be
      calculated as described above.

     

    Opinion
      of Counsel:
      A
      written opinion of counsel, who may be counsel for the Seller, the Depositor,
      the Company or the Master Servicer, reasonably acceptable to each addressee
      of
      such opinion; provided that with respect to Section 2.05, 8.05, 8.07 or 12.01,
      or the interpretation or application of the REMIC Provisions, such counsel
      must
      (i) in fact be independent of the Seller, Depositor, the Company and the Master
      Servicer, (ii) not have any direct financial interest in the Seller, Depositor,
      the Company or the Master Servicer or in any affiliate of either, and (iii)
      not
      be connected with the Seller, Depositor, the Company 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 as a result of the purchase of all
      of
      the assets of the Trust and any related REO Property pursuant to Section
      11.01.

     

    Optional
      Termination Date:
      The
      Distribution Date on which the Stated Principal Balance of all of the Mortgage
      Loans is equal to or less than 10% of the Stated Principal Balance of all of
      the
      Mortgage Loans as of the Cut-off Date.

     

    Original
      Value:
      The
      value of the property underlying a Mortgage Loan based, in the case of the
      purchase of the underlying Mortgaged Property, on the lower of an appraisal
      or
      the sales price of such property or, in the case of a refinancing, on an
      appraisal.

     

    Originator:
      With
      respect to each Mortgage Loan, shall mean the originator set forth in the
      Mortgage Loan Schedule for such Mortgage Loan.

     

    OTS:
      The
      Office of Thrift Supervision.

     

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

     

    (a) Certificates
      theretofore canceled by the Securities Administrator or delivered to the
      Securities Administrator for cancellation; and

     

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

     

    Outstanding
      Mortgage Loan:
      As of
      any date of determination, a Mortgage Loan with a Stated Principal Balance
      greater than zero that was not the subject of a Principal Prepayment in full,
      and that did not become a Liquidated Loan, prior to the end of the related
      Prepayment Period.

     

    Overcollateralization
      Amount:
      With
      respect to any Distribution Date, the excess, if any, of the aggregate Stated
      Principal Balance of the Mortgage Loans as of the last day of the related Due
      Period (after giving effect to scheduled payments of principal due during the
      related Due Period, to the extent received or advanced, and unscheduled
      collections of principal received during the related Prepayment Period, and
      after reduction for Realized Losses incurred during the prior calendar month)
      over the aggregate Certificate Principal Balance of the Certificates (other
      than
      the Class C Certificates and the Class P Certificates) on such Distribution
      Date
      (after taking into account the payment of principal other than any Extra
      Principal Distribution Amount on such Certificates).

     

    Overcollateralization
      Release Amount:
      With
      respect to any Distribution Date, the lesser of (x) the Principal Funds for
      such
      Distribution Date and (y) the excess, if any, of (i) the Overcollateralization
      Amount for such Distribution Date (assuming that 100% of the Principal Funds
      are
      applied as a principal payment on such Distribution Date), over (ii) the
      Overcollateralization Target Amount for such Distribution Date (with the amount
      pursuant to clause (y) deemed to be $0 if the Overcollateralization Amount
      is
      less than or equal to the Overcollateralization Target Amount on that
      Distribution Date).

     

    Overcollateralization
      Target Amount:
      With
      respect to any Distribution Date (a) prior to the Stepdown Date, 1.00% of the
      aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
      Date,
      (b) on or after the Stepdown Date and if a Trigger Event is not in effect,
      the
      greater of (i) the lesser of (1) 1.00% of the aggregate Stated Principal Balance
      of the Mortgage Loans as of the Cut-off Date and (2) 2.00% of the then current
      aggregate Stated Principal Balance of the Mortgage Loans as of the last day
      of
      the related Due Period (after giving effect to scheduled payments of principal
      due during the related Due Period, to the extent received or advanced, and
      unscheduled collections of principal received during the related Prepayment
      Period, and after reduction for Realized Losses incurred during the prior
      calendar month) and (ii) $1,325,186 or (c) on or after the Stepdown Date and
      if
      a Trigger Event is in effect, the Overcollateralization Target Amount for the
      immediately preceding Distribution Date.

     

    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.

     

    Pass-Through
      Transfer:
      Any
      transaction involving either (1) a sale or other transfer of mortgage loans
      directly or indirectly to an issuing entity in connection with an issuance
      of
      publicly offered or privately placed, rated or unrated mortgage-backed
      securities or (2) an issuance of publicly offered or privately placed, rated
      or
      unrated securities, the payments on which are determined primarily by reference
      to one or more portfolios of residential mortgage loans.

     

    Pass-Through
      Rate:
      With
      respect to each Class of Certificates (other than the Class C Certificates)
      and
      the Class C Interest, the Class A-1 Pass-Through Rate, Class A-2 Pass-Through
      Rate, Class A-3 Pass-Through Rate, Class M-1 Pass-Through Rate, Class M-2
      Pass-Through Rate, Class M-3 Pass-Through Rate, Class M-4 Pass-Through Rate,
      Class B-1 Pass-Through Rate, Class B-2 Pass-Through Rate, Class B-3 Pass-Through
      Rate or Class B-4 Pass-Through Rate, as applicable, or with respect to the
      Class
      C Interest, the Class C Pass-Through Rate.

     

    With
      respect to the Class C Certificate,
      the
      Class C Certificate shall not have a Pass-Through Rate, but Current Interest
      for
      such Certificate and each Distribution Date shall be an amount equal to 100%
      of
      the amounts distributable to the Class C Interest for such Distribution
      Date.

     

    With
      respect to the Class P Certificate and the Class P Interest, 0.00% per
      annum.

     

    Paying
      Agent:
      The
      Securities Administrator, in its capacity as paying agent, and its successors
      and assigns.

     

    Percentage
      Interest:
      With
      respect to any Certificate of a specified Class, the Percentage Interest set
      forth on the face thereof or the percentage obtained by dividing the
      Denomination of such Certificate by the aggregate of the Denominations of all
      Certificates of the such Class.

     

    Periodic
      Rate Cap:
      With
      respect to each Adjustable Rate Mortgage Loan and any Adjustment Date therefor,
      the fixed percentage set forth in the related Mortgage Note, which is the
      maximum amount by which the Mortgage Rate for such Mortgage Loan may increase
      or
      decrease (without regard to the Maximum Mortgage Rate or the Minimum Mortgage
      Rate) on such Adjustment Date from the Mortgage Rate in effect immediately
      prior
      to such Adjustment Date.

     

    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 (including the Trustee in its
      commercial banking capacity), provided that the commercial paper and/or long
      term unsecured debt obligations of such depository institution or trust company
      are then rated one of the two highest long-term and the highest short-term
      ratings of each such 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 any Rating Agency;

     

    (v)  demand
      or
      time deposits or certificates of deposit issued by any bank or trust company
      or
      savings institution to the extent that such deposits are fully insured by the
      FDIC;

     

    (vi)  guaranteed
      reinvestment agreements issued by any bank, insurance company or other
      corporation containing, at the time of the issuance of such agreements, such
      terms and conditions as will not result in the downgrading or withdrawal of
      the
      rating then assigned to the Certificates by any such Rating Agency;

     

    (vii)  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;

     

    (viii)  securities
      (other than stripped bonds, stripped coupons or instruments sold at a purchase
      price in excess of 115% of the face amount thereof) bearing interest or sold
      at
      a discount issued by any corporation incorporated under the laws of the United
      States or any state thereof which, at the time of such investment, have one
      of
      the two highest long term ratings of each Rating Agency (except if the Rating
      Agency is Moody’s, such rating shall be the highest commercial paper rating of
      Moody’s for any such securities), or such lower rating as will not result in the
      downgrading or withdrawal of the rating then assigned to the Certificates by
      any
      Rating Agency, as evidenced by a signed writing delivered by each Rating
      Agency;

     

    (ix)  interests
      in any money market fund (including any such fund managed or advised by the
      Trustee or Master Servicer or any affiliate thereof) which at the date of
      acquisition of the interests in such fund and throughout the time such interests
      are held in such fund has the highest applicable long term rating by each Rating
      Agency rating such fund 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;

     

    (x)  short
      term investment funds sponsored by any trust company or banking association
      incorporated under the laws of the United States or any state thereof (including
      any such fund managed or advised by the Trustee or any affiliate thereof) which
      on the date of acquisition has been rated by each Rating Agency in their
      respective highest applicable rating category 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; and

     

    (xi)  such
      other investments having a specified stated maturity and bearing interest or
      sold at a discount acceptable to each Rating Agency as will not result in the
      downgrading or withdrawal of the rating then assigned to the Certificates by
      any
      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
      (i)
      evidences the right to receive interest only payments with respect to the
      obligations underlying such instrument, (ii) is purchased at a premium or (iii)
      is purchased at a deep discount; provided further that no such instrument shall
      be a Permitted Investment (A) if such instrument evidences principal and
      interest payments derived from obligations underlying such instrument and the
      interest payments with respect to such instrument provide a yield to maturity
      of
      greater than 120% of the yield to maturity at par of such underlying
      obligations, or (B) if it may be redeemed at a price below the purchase price
      (the foregoing clause (B) not to apply to investments in units of money market
      funds pursuant to clause (vi) above); provided further that no amount
      beneficially owned by any REMIC may be invested in investments (other than
      money
      market funds) treated as equity interests for federal income tax purposes,
      unless the Master Servicer shall receive an Opinion of Counsel, at the expense
      of the Master Servicer, to the effect that such investment will not adversely
      affect the status of any such REMIC as a REMIC under the Code or result in
      imposition of a tax on any such REMIC. Permitted Investments that are subject
      to
      prepayment or call may not be purchased at a price in excess of
      par.

     

    Permitted
      Transferee:
      Any
      Person (x) other than (i) the United States, any State or political subdivision
      thereof, any possession of the United States or any agency or instrumentality
      of
      any of the foregoing, (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) that
      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 or (v) an electing large partnership within
      the meaning of Section 775(a) of the Code, (y) that is a citizen or resident
      of
      the United States, a corporation, partnership (other than a partnership that
      has
      any direct or indirect foreign partners) or other entity (treated as a
      corporation or a partnership for federal income tax purposes), created or
      organized in or under the laws of the United States, any State thereof or the
      District of Columbia, 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 authority to control all substantial decisions
      of the trust or if it has a valid election in effect under applicable U.S.
      Treasury regulations to be treated as a United States person and (z) other
      than
      any other Person so designated by the Trustee or Securities Administrator based
      upon an Opinion of Counsel addressed to the Trustee or Securities Administrator
      (which shall not be an expense of the Trustee or Securities Administrator)
      that
      states that the Transfer of an Ownership Interest in a Residual Certificate
      to
      such Person may cause REMIC I, REMIC II, REMIC III or REMIC IV to fail to
      qualify as a REMIC at any time that any 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 Freddie Mac, a majority
      of its board of directors is not selected by such government unit.

     

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

     

    Prepayment
      Assumption:
      The
      applicable rate of prepayment, as described in the Prospectus
      Supplement.

     

    Prepayment
      Charge:
      Any
      prepayment premium, penalty or charge payable by a Mortgagor in connection
      with
      any Principal Prepayment on a Mortgage Loan pursuant to the terms of the related
      Mortgage Note.

     

    Prepayment
      Charge Waiver Amount:
      Any
      amount paid by the Company or related Servicer to the Master Servicer in respect
      of waived Prepayment Charges pursuant to Section 5.01(a).

     

    Prepayment
      Interest Excess:
      With
      respect to any Distribution Date, for each EMC Mortgage Loan that was the
      subject of a Principal Prepayment in full during the portion of the related
      Prepayment Period occurring between the first day of the calendar month in
      which
      such Distribution Date occurs and the Determination Date of the calendar month
      in which such Distribution Date occurs, an amount equal to interest (to the
      extent received) at the applicable Net Mortgage Rate on the amount of such
      Principal Prepayment for the number of days commencing on the first day of
      the
      calendar month in which such Distribution Date occurs and ending on the last
      date through which interest is collected from the related
      Mortgagor.

     

    Prepayment
      Interest Shortfall:
      With
      respect to any Distribution Date, for each Mortgage Loan that was the subject
      of
      a partial Principal Prepayment during the related Prepayment Period, or a
      Principal Prepayment in full during the related Prepayment Period, or that
      became a Liquidated Loan during the prior calendar month, (other than a
      Principal Prepayment in full resulting from the purchase of a Mortgage Loan
      pursuant to Section 2.02, 2.03, 4.21 or 11.01 hereof), the amount, if any,
      by
      which (i) one month’s interest at the applicable Net Mortgage Rate on the Stated
      Principal Balance of such Mortgage Loan immediately prior to such prepayment
      (or
      liquidation) or in the case of a partial Principal Prepayment on the amount
      of
      such prepayment (or liquidation proceeds) exceeds (ii) the amount of interest
      paid or collected in connection with such Principal Prepayment or such
      liquidation proceeds less the sum of (a) the related Servicing Fee, (b) the
      Master Servicing Fee Rate and (c) the LPMI Fee, if any.

     

    Prepayment
      Period:
      As to
      any Distribution Date (except the first Distribution Date) and each EMC Mortgage
      Loan, for each Principal Prepayment in full, the period commencing on the 16th
      day of the month prior to the month in which the related Distribution Date
      occurs and ending on the 15th day of the month in which such Distribution Date
      occurs (as to the first Distribution Date and any Mortgage Loan, the period
      commencing on the Cut-off Date and ending on the 15th day of the month in which
      such Distribution Date occurs) and for each partial Principal Prepayment, the
      calendar month prior to the month in which such Distribution Date occurs. As
      to
      any Distribution Date and each Mortgage Loan that is not an EMC Mortgage Loan,
      in accordance with the related Servicing Agreement

     

    Primary
      Mortgage Insurance Policy:
      Any
      primary mortgage guaranty insurance policy issued in connection with a Mortgage
      Loan which provides compensation to a Mortgage Note holder in the event of
      default by the obligor under such Mortgage Note or the related security
      instrument, if any or any replacement policy therefor through the related
      Interest Accrual Period for such Class relating to a Distribution
      Date.

     

    Principal
      Distribution Amount:
      With
      respect to each Distribution Date, an amount equal to (x) the Principal Funds
      for such Distribution Date plus (y) any Extra Principal Distribution Amount
      for
      such Distribution Date, less (z) any Overcollateralization Release
      Amount.

     

    Principal
      Funds:
      With
      respect to any Distribution Date, (i) the sum, without duplication, of (a)
      all
      scheduled principal collected on the Mortgage Loans during the related Due
      Period, (b) all Advances relating to principal made with respect to the Mortgage
      Loans remitted by the related Servicer or Master Servicer, as applicable, on
      or
      prior to the Remittance Date, (c) Principal Prepayments with respect to the
      Mortgage Loans exclusive of Prepayment Charges or penalties collected during
      the
      related Prepayment Period, (d) the Stated Principal Balance of each Mortgage
      Loan that was repurchased by the Seller pursuant to Sections 2.02 or 2.03 or
      by
      EMC pursuant to Section 4.21, (e) the aggregate of all Substitution Adjustment
      Amounts with respect to the Mortgage Loans for the related Determination Date
      in
      connection with the substitution of related Mortgage Loans pursuant to Section
      2.03(d), (f) all Liquidation Proceeds and Subsequent Recoveries with respect
      to
      the Mortgage Loans collected during the prior calendar month (to the extent
      such
      Liquidation Proceeds and Subsequent Recoveries relate to principal) and remitted
      by the Company or the related Servicer to the Distribution Account pursuant
      to
      this Agreement or the related Servicing Agreement and (g) amounts in respect
      of
      principal paid by the Majority Class C Certificateholder pursuant to Section
      11.01 minus (ii) all related amounts required to be reimbursed pursuant to
      Sections 5.02, 5.05 and 5.09 or as otherwise set forth in this
      Agreement.

     

    Principal
      Prepayment:
      Any
      Mortgagor payment or other recovery of (or proceeds with respect to) principal
      on a Mortgage Loan (including loans purchased or repurchased under Sections
      2.02, 2.03, 4.21 and 11.01 hereof) that is received in advance of its scheduled
      Due Date and is not accompanied by an amount as to interest 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
      Company or the related Servicer, as appropriate, in accordance with the terms
      of
      the related Mortgage Note.

     

    Private
      Certificates:
      Any of
      the Class B-4, Class C, Class P and Class R Certificates.

     

    Prospectus
      Supplement:
      The
      Prospectus Supplement dated November 28, 2006 relating to the public offering
      of
      the Offered Certificates.

     

    Protected
      Account:
      Each
      account established and maintained by the Company with respect to receipts
      on
      the Mortgage Loans and REO Property in accordance with Section 5.01 hereof
      or by
      the related Servicer in accordance with the related Servicing
      Agreement.

     

    PUD:
      A
      Planned Unit Development.

     

    Purchase
      Price:
      With
      respect to any Mortgage Loan (x) required to be repurchased by the Seller
      pursuant to Section 2.02 or 2.03 hereof or (y) that EMC has a right to purchase
      pursuant to Section 4.21 hereof, an amount equal to the sum of (i) 100% of
      the
      outstanding principal balance of the Mortgage Loan as of the date of such
      purchase plus (ii) accrued interest thereon at the applicable Mortgage Rate
      through the first day of the month in which the Purchase Price is to be
      distributed to Certificateholders, reduced by any portion of the Servicing
      Fee,
      Servicing Advances and Advances payable to the purchaser of the Mortgage Loan
      plus and (iii) any costs and damages (if any) incurred by the Trust in
      connection with any violation of such Mortgage Loan of any predatory lending
      laws.

     

    Rating
      Agency:
      Each of
      Moody’s and S&P. If any such organization or its successor is no longer in
      existence, “Rating Agency” shall be a nationally recognized statistical rating
      organization, or other comparable Person, 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 Mortgage Loan as to which a Final Recovery Determination has
      been made, an amount (not less than zero) equal to (i) the unpaid principal
      balance of such Mortgage Loan as of the commencement of the calendar month
      in
      which the Final Recovery Determination was made, plus (ii) accrued interest
      from
      the Due Date as to which interest was last paid by the Mortgagor through the
      end
      of the calendar month in which such Final Recovery Determination was made,
      calculated in the case of each calendar month during such period (A) at an
      annual rate equal to the annual rate at which interest was then accruing on
      such
      Mortgage Loan and (B) on a principal amount equal to the Stated Principal
      Balance of such Mortgage Loan as of the close of business on the Distribution
      Date during such calendar month, minus (iii) the proceeds, if any, received
      in
      respect of such Mortgage Loan during the calendar month in which such Final
      Recovery Determination was made, net of amounts that are payable therefrom
      to
      the Company pursuant to this Agreement or the related Servicer pursuant to
      the
      related Servicing Agreement. In addition, to the extent the Company, the related
      Servicer or the Master Servicer receives Subsequent Recoveries with respect
      to
      any Mortgage Loan, the amount of the Realized Loss with respect to that Mortgage
      Loan will be reduced to the extent such recoveries are distributed to any Class
      of Certificates or applied to increase Excess Spread on any Distribution
      Date.

     

    With
      respect to any REO Property as to which a Final Recovery Determination has
      been
      made, an amount (not less than zero) equal to (i) the unpaid principal balance
      of the related Mortgage Loan as of the date of acquisition of such REO Property
      on behalf of REMIC I, plus (ii) accrued interest from the Due Date as to which
      interest was last paid by the Mortgagor in respect of the related Mortgage
      Loan
      through the end of the calendar month immediately preceding the calendar month
      in which such REO Property was acquired, calculated in the case of each calendar
      month during such period (A) at an annual rate equal to the annual rate at
      which
      interest was then accruing on the related Mortgage Loan and (B) on a principal
      amount equal to the Stated Principal Balance of the related Mortgage Loan as
      of
      the close of business on the Distribution Date during such calendar month,
      plus
      (iii) REO Imputed Interest for such REO Property for each calendar month
      commencing with the calendar month in which such REO Property was acquired
      and
      ending with the calendar month in which such Final Recovery Determination was
      made, minus (iv) the aggregate of all unreimbursed Advances and Servicing
      Advances.

     

    With
      respect to each Mortgage Loan which has become the subject of a Deficient
      Valuation, the difference between the principal balance of the Mortgage Loan
      outstanding immediately prior to such Deficient Valuation and the principal
      balance of the Mortgage Loan as reduced by the Deficient Valuation.

     

    With
      respect to each Mortgage Loan which has become the subject of a Debt Service
      Reduction, the portion, if any, of the reduction in each affected Monthly
      Payment attributable to a reduction in the Mortgage Rate imposed by a court
      of
      competent jurisdiction. Each such Realized Loss shall be deemed to have been
      incurred on the Due Date for each affected Monthly Payment.

     

    Record
      Date:
      With
      respect to any Distribution Date and the Certificates (other than the Class
      C,
      Class P and Residual Certificates), so long as such Classes of Certificates
      are
      Book-Entry Certificates, the Business Day preceding such Distribution Date,
      and
      otherwise, the close of business on the last Business Day of the month preceding
      the month in which such Distribution Date occurs. With respect to the Class
      C,
      Class P Certificates and Residual Certificates, so long as such Classes of
      Certificates remain non Book-Entry Certificates, the close of business on the
      last Business Day of the month preceding the month in which such Distribution
      Date occurs.

     

    Reference
      Banks:
      Shall
      mean leading banks selected by the Securities Administrator and engaged in
      transactions in Eurodollar deposits in the international Eurocurrency market
      (i)
      with an established place of business in London, (ii) which have been designated
      as such by the Securities Administrator and (iii) which are not controlling,
      controlled by, or under common control with, the Depositor, the Seller or the
      Master Servicer.

     

    Reference
      Bank Rate:
      With
      respect to any Interest Accrual Period shall mean the arithmetic mean, rounded
      upwards, if necessary, to the nearest whole multiple of 0.03125%, of the offered
      rates for United States dollar deposits for one month that are quoted by the
      Reference Banks as of 11:00 a.m., New York City time, on the related Interest
      Determination Date to prime banks in the London interbank market for a period
      of
      one month in an amount approximately equal to the aggregate Certificate
      Principal Balance of the LIBOR Certificates for such Interest Accrual Period,
      provided that at least two such Reference Banks provide such rate. If fewer
      than
      two offered rates appear, the Reference Bank Rate will be the arithmetic mean,
      rounded upwards, if necessary, to the nearest whole multiple of 0.03125%, of
      the
      rates quoted by one or more major banks in New York City, selected by the
      Securities Administrator, as of 11:00 a.m., New York City time, on such date
      for
      loans in United States dollars to leading European banks for a period of one
      month in amounts approximately equal to the aggregate Certificate Principal
      Balance of the LIBOR Certificates for such Interest Accrual Period.

     

    Regular
      Certificate:
      Any
      Certificate other than a Residual Certificate.

     

    Regular
      Interest:
      A
“regular interest” in a REMIC within the meaning of Section 860G(a)(1) of the
      Code.

     

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

     

    Relief
      Act:
      The
      Servicemembers Civil Relief Act, as amended, or any similar state or local
      law.

     

    Relief
      Act Interest Shortfall:
      With
      respect to any Distribution Date and any Mortgage Loan, any reduction in the
      amount of interest collectible on such Mortgage Loan for the most recently
      ended
      Due Period as a result of the application of the Relief Act.

     

    Remaining
      Excess Spread:
      With
      respect to any Distribution Date, the Excess Spread less any Extra Principal
      Distribution Amount, in each case for such Distribution Date.

     

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

     

    REMIC
      I:
      The
      segregated pool of assets described in the Preliminary Statement and Section
      6.07(a).

     

    REMIC
      I Regular Interest:
      Any of
      the separate non-certificated beneficial ownership interests in REMIC I issued
      hereunder and designated as a Regular Interest in REMIC I. Each REMIC I Regular
      Interest shall accrue interest at the related Uncertificated REMIC I
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto. The designations for the respective
      REMIC I Regular Interests are set forth in the Preliminary Statement hereto.
      

     

    REMIC
      I Interest Loss Allocation Amount:
      With
      respect to any Distribution Date, an amount equal to (a) the product of (i)
      the
      aggregate Stated Principal Balance of the Mortgage Loans and REO Properties
      then
      outstanding and (ii) the Uncertificated REMIC I Pass-Through Rate for REMIC
      I
      Regular Interest AA minus the Marker Rate, divided by (b) 12.

     

    REMIC
      I Overcollateralization Amount:
      With
      respect to any date of determination, (i) 1.00% of the aggregate Uncertificated
      Principal Balance of the REMIC I Regular Interests (other than REMIC I Regular
      Interest P) minus (ii) the aggregate Uncertificated Principal Balance of each
      REMIC I Regular Interest (other than REMIC I Regular Interest P) for which
      a
      Class A, Class M or Class B Certificate is a Corresponding Certificate, in
      each
      case, as of such date of determination.

     

    REMIC
      I Overcollateralization Target Amount:
      1.00%
      of the Overcollateralization Target Amount.

     

    REMIC
      I Principal Loss Allocation Amount:
      With
      respect to any Distribution Date, an amount equal to the product of (i) the
      aggregate Stated Principal Balance of the Mortgage Loans and REO Properties
      then
      outstanding and (ii) 1 minus a fraction, the numerator of which is two (2)
      times
      the aggregate Uncertificated Principal Balance of each REMIC I Regular Interest
      (other than REMIC I Regular Interest P) for which a Class A, Class M or Class
      B
      Certificate is a Corresponding Certificate and the denominator of which is
      the
      aggregate Uncertificated Principal Balance of each REMIC I Regular Interest
      (other than REMIC I Regular Interest P) for which a Class A, Class M or Class
      B
      Certificate is a Corresponding Certificate and REMIC I Regular Interest
      ZZ.

     

    REMIC
      I Regular Interest ZZ Maximum Interest Deferral Amount:
      With
      respect to any Distribution Date, the excess, if any, of (i) accrued interest
      at
      the Uncertificated REMIC I Pass-Through Rate applicable to REMIC I Regular
      Interest ZZ for such Distribution Date on a balance equal to the Uncertificated
      Principal Balance of REMIC I Regular Interest ZZ minus the REMIC I
      Overcollateralization Amount, in each case for such Distribution Date, over
      (ii)
      the Uncertificated Accrued Interest on each REMIC I Regular Interest (other
      than
      REMIC I Regular Interest P) for which a Class A, Class M or Class B Certificate
      is a Corresponding Certificate, with the rate on each such REMIC I Regular
      Interest subject to a cap equal to the Pass-Through Rate for the Corresponding
      Certificate for the purpose of this calculation for such Distribution Date;
      provided, however, that solely for this purpose, the related cap with respect
      to
      each REMIC I Regular Interest for which a Class M Certificate or Class B
      Certificate is a Corresponding Certificate shall be multiplied by a fraction,
      the numerator of which is 30 and the denominator of which is the actual number
      of days in the related Interest Accrual Period.

     

    REMIC
      II:
      The
      segregated pool of assets described in the Preliminary Statement consisting
      of
      the REMIC I Regular Interests

     

    REMIC
      III:
      The
      segregated pool of assets consisting of the Class C Interest conveyed in trust
      to the Trustee, for the benefit of the Holders of the Class C Certificates
      and
      the Class RX Certificates (in respect of the Class R-3 Interest), with respect
      to which a separate REMIC election is to be made.

     

    REMIC
      IV:
      The
      segregated pool of assets consisting of the Class P Interest conveyed in trust
      to the Trustee, for the benefit of the Holders of the Class P Certificates
      and
      the Class RX Certificates (in respect of the Class R-4 Interest), with respect
      to which a separate REMIC election is to be made.

     

    REMIC
      Opinion:
      Shall
      mean an Opinion of Counsel to the effect that the proposed action will not
      have
      an adverse effect on any REMIC created hereunder.

     

    REMIC
      Provisions:
      Provisions of the federal income tax law relating to real estate mortgage
      investment conduits, which appear at Sections 860A through 860G of the Code,
      and
      related provisions, and proposed, temporary and final regulations and published
      rulings, notices and announcements promulgated thereunder, as the foregoing
      may
      be in effect from time to time, as well as provisions of applicable state
      laws.

     

    Remittance
      Date:
      Shall
      mean (i) with respect to the Company, the Distribution Account Deposit Date,
      and
      (ii) with respect to the related Servicer, the date specified in the related
      Servicing Agreement. 

     

    Remittance
      Report:
      As
      defined in Section 6.04(g).

     

    REO
      Imputed Interest:
      As to
      any REO Property, for any calendar month during which such REO Property was
      at
      any time part of REMIC I, one month’s interest at the applicable Net Mortgage
      Rate on the Stated Principal Balance of such REO Property (or, in the case
      of
      the first such calendar month, of the related Mortgage Loan, if appropriate)
      as
      of the close of business on the Distribution Date in such calendar
      month.

     

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

     

    Replacement
      Mortgage Loan:
      A
      Mortgage Loan or Mortgage Loans in the aggregate substituted by the Seller
      for a
      Deleted Mortgage Loan, which must, on the date of such substitution, as
      confirmed in a Request for Release, (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 less than 90% of, the Stated Principal
      Balance of the Deleted Mortgage Loan; (ii) have a fixed Mortgage Rate not less
      than or more than 1% per annum higher than the Mortgage Rate of the Deleted
      Mortgage Loan; (iii) have the same or higher credit quality characteristics
      than
      that of the Deleted Mortgage Loan; (iv) have a Loan-to-Value Ratio no higher
      than that of the Deleted Mortgage Loan; (v) have a remaining term to maturity
      no
      greater than (and not more than one year less than) that of the Deleted Mortgage
      Loan; (vi) not permit conversion of the Mortgage Rate from a fixed rate to
      a
      variable rate; (vii) have the same lien priority as the Deleted Mortgage Loan;
      (viii) constitute the same occupancy type as the Deleted Mortgage Loan or be
      owner occupied; and (ix) comply with each representation and warranty set forth
      in Section 2.03 hereof.

     

    Reportable
      Event:
      As
      defined in Section 4.18.

     

    Repurchase
      Price:
      With
      respect to each Mortgage Loan, a price equal to (i) the outstanding principal
      balance of such Mortgage Loan, plus (ii) interest on such outstanding principal
      balance at the Mortgage Rate (net of the Servicing Fee Rate) from the last
      date
      through which interest has been paid to the end of the month of repurchase,
      less
      (iii) amounts advanced by the Company or the related Servicer in respect of
      such
      repurchased Mortgage Loan which are being held in the Distribution Account
      for
      remittance to the Securities Administrator plus (iv) any costs and damages
      (if
      any) incurred by the Trust in connection with any violation of such Mortgage
      Loan of any anti-predatory lending laws.

     

    Request
      for Release:
      The
      Request for Release to be submitted by the Seller, the Company, the related
      Servicer or the Master Servicer to the Custodian substantially in the form
      of
      Exhibit G. Each Request for Release furnished to the Custodian by the Seller,
      the Company, the related Servicer or the Master Servicer shall be in duplicate
      and shall be executed by an officer of such Person or a Servicing Officer (or,
      if furnished electronically to the Custodian, shall be deemed to have been
      sent
      and executed by an officer of such Person or a Servicing Officer) of the Company
      or the related Servicer, as applicable.

     

    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 or the related Servicing
      Agreement.

     

    Reserve
      Fund:
      Shall
      mean the separate trust account created and maintained by the Securities
      Administrator pursuant to Section 6.08 hereof.

     

    Reserve
      Fund Deposit:
      With
      respect to the Reserve Fund, an amount equal to $5,000, which the Depositor
      shall initially deposit into the Reserve Fund pursuant to Section 6.08
      hereof.

     

    Residual
      Certificates:
      The
      Class R-1, Class R-2 and Class RX Certificates, each evidencing the sole class
      of Residual Interests in the related REMIC.

     

    Residual
      Interest:
      The
      sole class of “residual interests” in a REMIC within the meaning of Section
      860G(a)(2) of the Code.

     

    Responsible
      Officer:
      With
      respect to the Trustee, any Vice President, any Assistant Vice President, the
      Secretary, any Assistant Secretary, or any Trust Officer with specific
      responsibility for the transactions contemplated hereby, any other officer
      customarily performing functions similar to those performed by any of the above
      designated officers or other officers of the Trustee specified by the Trustee,
      as 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.

     

    S&P:
      Standard & Poor’s, a division of The McGraw-Hill Companies,
      Inc.

     

    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.

     

    Securities
      Act:
      The
      Securities Act of 1933, as amended, and the rules and regulations
      thereunder.

     

    Securities
      Administrator:
      Wells
      Fargo Bank, National Association, in its capacity as securities administrator,
      transfer agent and paying agent hereunder, and its successors and
      assigns.

     

    Securities
      Administrator Information:
      As
      defined in Section 4.18(b).

     

    Seller:
      EMC in
      its capacity as seller of the Mortgage Loans to the Depositor.

     

    Senior
      Certificates:
      Any of
      the Class A-1, Class A-2 and Class A-3 Certificates

     

    Servicer:
      Any of
      EMC, Greenpoint and National City and their successors and assigns.

     

    Servicing
      Advances:
      All
      customary, reasonable and necessary “out of pocket” costs and expenses
      (including reasonable legal fees) incurred in the performance by the Company
      or
      the related Servicer of its servicing obligations hereunder or under the related
      Servicing Agreement, including, but not limited to, the cost of (i) the
      preservation, restoration and protection of a Mortgaged Property, (ii) any
      enforcement or judicial proceedings, including foreclosures, and including
      any
      expenses incurred in relation to any such proceedings that result from the
      Mortgage Loan being registered in the MERS® System, (iii) the management and
      liquidation of any REO Property (including, without limitation, realtor’s
      commissions) and (iv) compliance with any obligations under Section 3.07 hereof
      to cause insurance to be maintained.

     

    Servicing
      Agreement:
      Any of
      the Greenpoint Servicing Agreement or the National City Servicing
      Agreement.

     

    Servicing
      Criteria:
      The
“servicing criteria” set forth in Item 1122(d) of Regulation AB, as such may be
      amended from time to time, or those Servicing Criteria otherwise mutually agreed
      to by EMC, the Master Servicer, the Trustee and the applicable Servicer in
      response to evolving interpretations of Regulation AB and incorporated into
      a
      revised Exhibit N.

     

    Servicing
      Fee:
      As to
      each Mortgage Loan and any Distribution Date, an amount equal to 1/12th of
      the
      Servicing Fee Rate multiplied by the Stated Principal Balance of such Mortgage
      Loan as of the Due Date in the month preceding the month in which such
      Distribution Date occurs.

     

    Servicing
      Fee Rate:
      0.25%
      per annum.

     

    Servicing
      Modification:
      With
      respect to any Mortgage Loan that is in default or, in the reasonable judgment
      of the Company or the related Servicer, as to which default is reasonably
      foreseeable, any modification which is effected by the Company or the related
      Servicer in accordance with the terms of this Agreement or the related Servicing
      Agreement which results in any change in the outstanding Stated Principal
      Balance, any change in the Mortgage Rate or any extension of the term of such
      Mortgage Loan.

     

    Servicing
      Officer:
      Any
      officer of the Company or the related Servicer involved in, or responsible
      for,
      the administration and servicing of the Mortgage Loans (i) in the case of the
      Company, whose name and facsimile signature appear on a list of servicing
      officers furnished to the Trustee by the Company on the Closing Date pursuant
      to
      this Agreement, as such list may from time to time be amended and (ii) in the
      case of the related Servicer, as to which evidence reasonably acceptable to
      the
      Trustee, as applicable, of due authorization, by such party has been furnished
      from time to time to the Trustee.

     

    Sponsor:
      EMC
      Mortgage Corporation, a Delaware corporation, and its successors and assigns,
      in
      its capacity as sponsor.

     

    Startup
      Day:
      The
      Startup Day for each REMIC formed hereunder shall be the Closing
      Date.

     

    Stated
      Principal Balance:
      With
      respect to any Mortgage Loan or related REO Property and any Distribution Date,
      the Cut-off Date Principal Balance thereof minus the sum of (i) the principal
      portion of the Scheduled Payments due with respect to such Mortgage Loan during
      each Due Period ending prior to such Distribution Date (and irrespective of
      any
      delinquency in their payment), (ii) all Principal Prepayments with respect
      to
      such Mortgage Loan received prior to or during the related Prepayment Period,
      and all Liquidation Proceeds to the extent applied by the Company or the related
      Servicer as recoveries of principal in accordance with Section 3.09 or the
      related Servicing Agreement with respect to such Mortgage Loan, that were
      received by the Company or the related Servicer as of the close of business
      on
      the last day of the calendar month immedediately preceding such Distribution
      Date and (iii) any Realized Losses on such Mortgage Loan incurred during the
      prior calendar month. The Stated Principal Balance of a Liquidated Loan equals
      zero.

     

    Stepdown
      Date:
      The
      later to occur of (a) the Distribution Date in December 2009 and (b) the first
      Distribution Date on which the Current Specified Enhancement Percentage is
      greater than or equal to 16.50%.

     

    Subordinated
      Certificates:
      The
      Class M, Class B, Class C and Residual Certificates.

     

    Subsequent
      Recoveries:
      As of
      any Distribution Date, amounts received by the Master Servicer or any Servicer
      (net of any related expenses permitted to be reimbursed pursuant to Section
      6.05) or surplus amounts held by the Master Servicer and the related Servicer
      to
      cover estimated expenses (including, but not limited to, recoveries in respect
      of the representations and warranties made by the Seller pursuant to the
      Mortgage Loan Purchase Agreement) specifically related to a Mortgage Loan that
      was the subject of a liquidation or final disposition of any REO Property as
      of
      the end of the prior calendar month that resulted in a Realized
      Loss.

     

    Subservicing
      Agreement:
      Any
      agreement entered into between the Company and a subservicer with respect to
      the
      subservicing of any Mortgage Loan hereunder by such subservicer.

     

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

     

    Successor
      Master Servicer:
      The
      meaning ascribed to such term pursuant to Section 9.01.

     

    Tax
      Matters Person:
      The
      person designated as “tax matters person” in the manner provided under Treasury
      Regulation Sections 1.860F-4(d) and 301.6231(a)(7)-1T. The Holder of the
      greatest Percentage Interest in a Class of Residual Certificates shall be the
      Tax Matters Person for the related REMIC. The Securities Administrator or any
      successor thereto or assignee thereof shall serve as tax administrator hereunder
      and as agent for the related Tax Matters Person.

     

    Transfer
      Affidavit:
      As
      defined in Section 7.02(c).

     

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

     

    Trigger
      Event:
      With
      respect to any Distribution Date, a Trigger Event exists if (i) a Delinquency
      Event shall have occurred and be continuing or (ii) the aggregate amount of
      Realized Losses on the Mortgage Loans since the Cut-off Date as a percentage
      of
      the aggregate Cut-off Date Principal Balance of the Mortgage Loans exceeds
      the
      applicable percentages set forth below with respect to such Distribution
      Date:

     

    
      	
              Distribution
                Date

            	
              Percentage

            
	 	 
	
              December
                2009 to November
                2010

            	
              0.70%
                with respect to December 2009, plus an additional 1/12th of the difference
                between 1.20% and 0.70% for each month thereafter 

            
	 	 
	
              December
                2010 to November 2011

            	
              1.20%
                with respect to December 2010, plus an additional 1/12th of the difference
                between 1.70% and 1.20% for each month thereafter 

            
	 	 
	
              December
                2011 to November 2012

            	
              1.70%
                with respect to December 2011, plus an additional 1/12th of the difference
                between 2.00% and 1.70% for each month thereafter 

            
	 	 
	
              December
                2012 and thereafter

            	
              2.00%
                

            

    

     

    Trust
      or Trust Fund:
      The
      corpus of the trust created hereunder consisting of (i) the Mortgage Loans
      and
      all interest accruing and principal due with respect thereto after the Cut-off
      Date to the extent not applied in computing the Cut-off Date Principal Balance
      thereof; (ii) the Class P Certificate Account, the Reserve Fund, the
      Distribution Account maintained by the Securities Administrator and the
      Protected Accounts maintained by the Company and the Servicers and all amounts
      deposited therein pursuant to the applicable provisions of this Agreement and
      the Servicing Agreements; (iii) property that secured a Mortgage Loan and has
      been acquired by foreclosure, deed in lieu of foreclosure or otherwise; (iv)
      the
      mortgagee’s rights under the Insurance Policies with respect to the Mortgage
      Loans; (v) the Servicing Agreements and the Assignment Agreements; (vi) the
      rights under the Mortgage Loan Purchase Agreement; and (vii) all proceeds of
      the
      foregoing, including proceeds of conversion, voluntary or involuntary, of any
      of
      the foregoing into cash or other liquid property. The Reserve Fund and
      Prepayment Charge Waiver Amounts shall not be included in REMIC I, REMIC II,
      REMIC III or REMIC IV.

     

    Trustee:
      U.S.
      Bank National Association, a national banking association, as trustee for the
      benefit of the Certificateholders under this Agreement, and any successor
      thereto, and any corporation or national banking association resulting from
      or
      surviving any consolidation or merger to which it or its successors may be
      a
      party and any successor trustee as may from time to time be serving as successor
      trustee hereunder.

     

    Uncertificated
      Accrued Interest:
      With
      respect to each REMIC I Regular Interest on each Distribution Date, an amount
      equal to one month’s interest at the related Uncertificated REMIC I Pass-Through
      Rate on the Uncertificated Principal Balance of such REMIC I Regular Interest.
      In each case, Uncertificated Accrued Interest will be reduced by any Prepayment
      Interest Shortfalls and Relief Act Interest Shortfalls (allocated to such REMIC
      I Regular Interests as set forth in Section 1.02).

     

    Uncertificated
      Notional Amount:
      With
      respect to the Class C Interest and any Distribution Date, an amount equal
      to
      the aggregate Uncertificated Principal Balance of the REMIC I Regular Interests
      (other than REMIC I Regular Interest P) for such Distribution Date.

     

    Uncertificated
      Principal Balance:
      With
      respect to each REMIC I Regular Interest, the Class C Interest and the Class
      P
      Interest, the principal amount of such REMIC I Regular Interest, Class C
      Interest and Class P Interest outstanding as of any date of determination.
      As of
      the Closing Date, the Uncertificated Principal Balance of each REMIC I Regular
      Interest, Class C Interest and Class P Interest shall equal the amount set
      forth
      in the Preliminary Statement hereto as its initial uncertificated principal
      balance. On each Distribution Date, the Uncertificated Principal Balance of
      the
      REMIC I Regular Interests and Class P Interest shall be reduced by all
      distributions of principal made on such REMIC I Regular Interests and Class
      P
      Interest on such Distribution Date pursuant to Section 6.07 and, if and to
      the
      extent necessary and appropriate, shall be further reduced on such Distribution
      Date by Realized Losses as provided in Section 6.05, and the Uncertificated
      Principal Balance of REMIC I Regular Interest ZZ shall be increased by interest
      deferrals as provided in Section 6.07(b)(i). The Uncertificated Principal
      Balance of each REMIC I Regular Interest, Class P Interest and Class C Interest
      shall never be less than zero. With respect to the Class C Interest as of any
      date of determination, an amount equal to the excess, if any, of (A) the then
      aggregate Uncertificated Principal Balance of the REMIC I Regular Interests
      over
      (B) the then aggregate Certificate Principal Balance of the Class A, Class
      M,
      Class B and Class P Certificates then outstanding.

     

    Uncertificated
      REMIC I Pass-Through Rate:
      With
      respect to any REMIC I Regular Interest (other than REMIC I Regular Interest
      P)
      and any Distribution Date, a per annum rate equal to the weighted average of
      the
      Net Mortgage Rates of the Mortgage Loans as of the first day of the related
      Due
      Period, weighted on the basis of the Stated Principal Balances thereof as of
      the
      first day of the related Due Period. With respect to REMIC I Regular Interest
      P
      and any Distribution Date, 0.00% per annum.

     

    Unpaid
      Realized Loss Amount:
      With
      respect to any Class A Certificates and as to any Distribution Date, is the
      excess of Applied Realized Loss Amounts with respect to such Class over the
      sum
      of all distributions in reduction of the Applied Realized Loss Amounts on all
      previous Distribution Dates. Any amounts distributed to the Class A Certificates
      in respect of any Unpaid Realized Loss Amount shall not be applied to reduce
      the
      Certificate Principal Balance of such Class.

     

    Voting
      Rights:
      The
      portion of the voting rights of all the Certificates that is allocated to any
      Certificate for purposes of the voting provisions hereunder. Voting Rights
      shall
      be allocated (i) 93% to the Class A, Class M and Class B Certificates, (ii)
      3%
      to the Class C Certificates until paid in full, and (iii) 1% to each of the
      Class P, Class R-1, Class R-2 and Class RX Certificates, with the allocation
      among the Certificates (other than the Class C and Residual Certificates) to
      be
      in proportion to the Certificate Principal Balance of each Class relative to
      the
      Certificate Principal Balance of all other such Classes. Voting Rights will
      be
      allocated among the Certificates of each such Class in accordance with their
      respective Percentage Interests.

     

    Section
      1.02  Allocation
      of Certain Interest Shortfalls. 

     

    For
      purposes of calculating the amount of Current Interest for the Class A, Class
      M,
      Class B and Class C Certificates for any Distribution Date, the aggregate amount
      of any Prepayment Interest Shortfalls (to the extent not covered by payments
      by
      the related Servicer pursuant to the related Servicing Agreement, the Company
      or
      the Master Servicer pursuant to Section 6.02) and any Relief Act Interest
      Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date
      shall be allocated first, to the Class C Interest based on, and to the extent
      of, one month’s interest otherwise distributable thereto and, thereafter, among
      the Class A, Class M and Class B Certificates, in each case on a pro
      rata
      basis,
      based on, and to the extent of, one month’s interest at the then applicable
      respective Pass-Through Rates on the respective Certificate Principal Balances
      of each such Certificate.

     

    For
      purposes of calculating the amount of Uncertificated Accrued Interest for the
      REMIC I Regular Interests (other than REMIC I Regular Interest P) for any
      Distribution Date, the aggregate amount of any Prepayment Interest Shortfalls
      (to the extent not covered by payments by the related Servicer pursuant to
      the
      related Servicing Agreement, the Company or the Master Servicer pursuant to
      Section 6.02) and any Relief Act Interest Shortfalls incurred in respect of
      the
      Mortgage Loans for any Distribution Date shall be allocated first, to
      Uncertificated Accrued Interest payable to REMIC I Regular Interest AA and
      REMIC
      I Regular Interest ZZ up to an aggregate amount equal to the REMIC I Interest
      Loss Allocation Amount, 98% and 2%, respectively, and thereafter among REMIC
      I
      Regular Interest AA, each REMIC I Regular Interest (other than REMIC I Regular
      Interest P) for which a Class A, Class M or Class B Certificate is the
      Corresponding Interest and REMIC I Regular Interest ZZ, pro
      rata,
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated
      Principal Balances of each such REMIC I Regular Interest.

     

    ARTICLE
      II

    CONVEYANCE
      OF TRUST FUND

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      2.01  Conveyance
      of Trust Fund. 

     

    Pursuant
      to the Mortgage Loan Purchase Agreement, the Seller sold, transferred, assigned,
      set over and otherwise conveyed to the Depositor, without recourse, all the
      right, title and interest of the Seller in and to the assets in the Trust
      Fund.

     

    The
      Seller has entered into this Agreement in consideration for the purchase of
      the
      Mortgage Loans by the Depositor pursuant to the Mortgage Loan Purchase Agreement
      and has agreed to take the actions specified herein.

     

    The
      Depositor, concurrently with the execution and delivery hereof, hereby sells,
      transfers, assigns, sets over and otherwise conveys to the Trustee for the
      use
      and benefit of the Certificateholders without recourse, all the right, title
      and
      interest of the Depositor in and to the Trust Fund.

     

    In
      connection with such sale, the Depositor has delivered to, and deposited with,
      or caused to be delivered to and deposited with, the Trustee or the Custodian,
      as its agent, the following documents or instruments with respect to each
      Mortgage Loan so assigned: (i) the original Mortgage Note, including any riders
      thereto, endorsed without recourse (A) in blank or to the order of “U.S. Bank
      National Association, as Trustee for Certificateholders of Bear Stearns Asset
      Backed Securities I LLC, Asset Backed Certificates, Series 2006-AC5”, or (B) in
      the case of a loan registered on the MERS system, in blank, and in each case
      showing an unbroken chain of endorsements from the original payee thereof to
      the
      Person endorsing it to the Trustee, (ii) the original Mortgage and, if the
      related Mortgage Loan is a MOM Loan, noting the presence of the MIN and language
      indicating that such Mortgage Loan is a MOM Loan, which shall have been recorded
      (or, for Mortgage Loans other than the EMC Flow Loans, if the original is not
      available, a copy), with evidence of such recording indicated thereon (or if
      clause (x) in the proviso below applies, shall be in recordable form), (iii)
      unless the Mortgage Loan is either a MOM Loan or has been assigned in the name
      of MERS®, the assignment (either an original or a copy, which may be in the form
      of a blanket assignment if permitted in the jurisdiction in which the Mortgaged
      Property is located) to the Trustee of the Mortgage with respect to each
      Mortgage Loan in the name of “U.S. Bank National Association, as Trustee for
      Certificateholders of Bear Stearns Asset Backed Securities I LLC, Asset Backed
      Certificates, Series 2006-AC5,” which shall have been recorded (or if clause (x)
      in the proviso below applies, shall be in recordable form) (iv) an original
      or a
      copy of all intervening assignments of the Mortgage, if any, with evidence
      of
      recording thereon, (v) with respect to any Mortgage Loan, the original policy
      of
      title insurance or mortgagee’s certificate of title insurance or commitment or
      binder for title insurance or, in the event such original title policy has
      not
      been received from the title insurer, such title policy will be delivered within
      one year of the Closing Date or, in the event such original title policy is
      unavailable, a photocopy of such title policy, or, in lieu thereof, a current
      lien search on the related Mortgaged Property; and (vi) originals or copies
      of
      all available assumption, modification or substitution agreements, if any;
      provided, however, that in lieu of the foregoing, the Seller may deliver the
      following documents, under the circumstances set forth below: (x) if any
      Mortgage (other than the Mortgages related to the EMC Flow Loans), assignment
      thereof to or intervening assignments thereof have been delivered or are being
      delivered to recording offices for recording and have not been returned in
      time
      to permit their delivery as specified above, the Depositor may deliver, or
      cause
      to be delivered, a true copy thereof with a certification by the Seller or
      the
      title company issuing the commitment for title insurance, on the face of such
      copy, substantially as follows: “Certified to be a true and correct copy of the
      original, which has been transmitted for recording”; (y) in lieu of the Mortgage
      (other than the Mortgages related to the EMC Flow Loans), assignment or
      intervening assignments thereof, if the applicable jurisdiction retains the
      originals of such documents (as evidenced by a certification from the Depositor
      to such effect) the Depositor may deliver, or cause to be delivered, photocopies
      of such documents containing an original certification by the judicial or other
      governmental authority of the jurisdiction where such documents were recorded;
      and (z) in lieu of the Mortgage Notes relating to the Mortgage Loans identified
      in the list set forth in Exhibit I, the Depositor may deliver, or cause to
      be
      delivered, a lost note affidavit and indemnity and a copy of the original note,
      if available; and provided, further, however, that in the case of Mortgage
      Loans
      which have been prepaid in full after the Cut-off Date and prior to the Closing
      Date, the Depositor, in lieu of delivering the above documents, may deliver,
      or
      cause to be delivered, to the Trustee and the Custodian a certification of
      a
      Servicing Officer to such effect and in such case shall deposit all amounts
      paid
      in respect of such Mortgage Loans, in the Protected Account or in the
      Distribution Account on the Closing Date. In the case of the documents referred
      to in clause (x) above, the Depositor shall deliver, or cause to be delivered,
      such documents to the Trustee or the Custodian promptly after they are received.
      

     

    The
      Seller shall cause, at its expense, the Mortgage and intervening assignments,
      if
      any, and to the extent required in accordance with the foregoing, the assignment
      of the Mortgage to the Trustee to be submitted for recording promptly after
      the
      Closing Date provided that the Seller need not cause to be recorded (a) any
      assignment in any jurisdiction under the laws of which, as evidenced by an
      Opinion of Counsel addressed to the Trustee delivered by the Seller to the
      Trustee and the Rating Agencies, the recordation of such assignment is not
      necessary to protect the Trustee’s interest in the related Mortgage Loan or (b)
      if MERS is identified on the Mortgage or on a properly recorded assignment
      of
      the Mortgage as mortgagee of record solely as nominee for Seller and its
      successors and assigns. In the event that the Seller, the Depositor or the
      Master Servicer gives written notice to the Trustee that a court has
      recharacterized the sale of the Mortgage Loans as a financing, the Seller shall
      submit or cause to be submitted for recording as specified above or, should
      the
      Seller fail to perform such obligations, the Master Servicer shall cause each
      such previously unrecorded assignment to be submitted for recording as specified
      above at the expense of the Trust. In the event a Mortgage File is released
      to
      the Company or the Servicer as a result of such Person having completed a
      Request for Release, the Custodian shall, if not so completed, complete the
      assignment of the related Mortgage in the manner specified in clause (iii)
      above.

     

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

     

    All
      original documents relating to the Mortgage Loans that are not delivered to
      the
      Trustee or the Custodian on its behalf are and shall be held by or on behalf
      of
      the Seller or the Depositor, as the case may be, in trust for the benefit of
      the
      Trustee on behalf of the Certificateholders. Any such original document
      delivered to or held by the Depositor, shall be delivered promptly to the
      Custodian on the Trustee’s behalf. 

     

    Whenever
      it is provided for in this Agreement that any document, evidence or information
      relating to a Mortgage Loan to be included in a Mortgage File be delivered
      or
      supplied to the Trustee, such delivery or supply shall be made to the Custodian
      pursuant to the Custodial Agreement.

     

    Section
      2.02  Acceptance
      of the Mortgage Loans. 

     

    (a)  Based
      on
      the Initial Certification received by it from the Custodian, the Trustee
      acknowledges receipt of, subject to the further review and exceptions reported
      by the Custodian pursuant to the procedures described below, the documents
      (or
      certified copies thereof) delivered to the Trustee or the Custodian on its
      behalf pursuant to Section 2.01 and declares that it holds and will continue
      to
      hold directly or through a custodian those documents and any amendments,
      replacements or supplements thereto and all other assets of the Trust Fund
      delivered to it in trust for the use and benefit of all present and future
      Holders of the Certificates. On the Closing Date, the Trustee or the Custodian
      on its behalf will deliver the Seller, the Trustee an Initial Certification
      confirming whether or not it has received the Mortgage File for each Mortgage
      Loan, but without review of such Mortgage File, except to the extent necessary
      to confirm whether such Mortgage File contains the original Mortgage Note or
      a
      lost note affidavit and indemnity in lieu thereof. No later than 90 days after
      the Closing Date, the Trustee or the Custodian on its behalf shall, for the
      benefit of the Certificateholders, review each Mortgage File delivered to it
      and
      execute and deliver to the Seller and, if reviewed by the Custodian, the
      Trustee, an Interim Certification. In conducting such review, the Trustee or
      the
      Custodian on its behalf will ascertain whether all required documents have
      been
      executed and received and whether those documents relate, determined on the
      basis of the Mortgagor name, original principal balance and loan number, to
      the
      Mortgage Loans identified in Exhibit B to this Agreement, as supplemented
      (provided, however, that with respect to those documents described in subclauses
      (iv) and (vi) of Section 2.01, such obligations shall extend only to documents
      actually delivered pursuant to such subclauses). In performing any such review,
      the Trustee and the Custodian may conclusively rely on the purported due
      execution and genuineness of any such document and on the purported genuineness
      of any signature thereon. If the Trustee or the Custodian on its behalf finds
      any document constituting part of the Mortgage File not to have been executed
      or
      received, or to be unrelated to the Mortgage Loans identified in Exhibit B
      or to
      appear to be defective on its face, the Trustee or the Custodian on its behalf
      shall include such information in the exception report. The Seller shall correct
      or cure any such defect or, if prior to the end of the second anniversary of
      the
      Closing Date, the Seller may substitute for the related Mortgage Loan a
      Replacement Mortgage Loan, which substitution shall be accomplished in the
      manner and subject to the conditions set forth in Section 2.03 or shall deliver
      to the Trustee an Opinion of Counsel addressed to the Trustee to the effect
      that
      such defect does not materially or adversely affect the interests of the
      Certificateholders in such Mortgage Loan within 90 days from the date of notice
      from the Trustee of the defect and if the Seller fails to correct or cure the
      defect or deliver such opinion within such period, the Seller will, subject
      to
      Section 2.03, within 90 days from the notification of the Trustee purchase
      such
      Mortgage Loan at the Purchase Price; provided, however, that if such defect
      relates solely to the inability of the Seller to deliver the Mortgage,
      assignment thereof to the Trustee, or intervening assignments thereof with
      evidence of recording thereon because such documents have been submitted for
      recording and have not been returned by the applicable jurisdiction, the Seller
      shall not be required to purchase such Mortgage Loan if the Seller delivers
      such
      documents promptly upon receipt, but in no event later than 360 days after
      the
      Closing Date.

     

    (b)  No
      later
      than 180 days after the Closing Date, the Trustee or the Custodian on its behalf
      will review, for the benefit of the Certificateholders, the Mortgage Files
      and
      will execute and deliver or cause to be executed and delivered to the Seller
      and, if reviewed by the Custodian, to the Trustee, a Final Certification. In
      conducting such review, the Trustee or the Custodian on its behalf will
      ascertain whether each document required to be recorded has been returned from
      the recording office with evidence of recording thereon and the Trustee or
      the
      Custodian on its behalf has received either an original or a copy thereof,
      as
      required in Section 2.01 (provided, however, that with respect to those
      documents described in subclauses (iv) and (vi) of Section 2.01, such
      obligations shall extend only to documents actually delivered pursuant to such
      subclauses). If the Trustee or the Custodian on its behalf finds any document
      with respect to a Mortgage Loan has not been received, or to be unrelated,
      determined on the basis of the Mortgagor name, original principal balance and
      loan number, to the Mortgage Loans identified in Exhibit B or to appear
      defective on its face, the Trustee or the Custodian on its behalf shall note
      such defect in the exception report attached to the Final Certification and
      shall promptly notify the Seller. The Seller shall correct or cure any such
      defect or, if prior to the end of the second anniversary of the Closing Date,
      the Seller may substitute for the related Mortgage Loan a Replacement Mortgage
      Loan, which substitution shall be accomplished in the manner and subject to
      the
      conditions set forth in Section 2.03 or shall deliver to the Trustee an Opinion
      of Counsel addressed to the Trustee to the effect that such defect does not
      materially or adversely affect the interests of Certificateholders in such
      Mortgage Loan within 90 days from the date of notice from the Trustee of the
      defect and if the Seller is unable within such period to correct or cure such
      defect, or to substitute the related Mortgage Loan with a Replacement Mortgage
      Loan or to deliver such opinion, the Seller shall, subject to Section 2.03,
      within 90 days from the notification of the Trustee, purchase such Mortgage
      Loan
      at the Purchase Price; provided, however, that if such defect relates solely
      to
      the inability of the Seller to deliver the Mortgage, assignment thereof to
      the
      Trustee or intervening assignments thereof with evidence of recording thereon,
      because such documents have not been returned by the applicable jurisdiction,
      the Seller shall not be required to purchase such Mortgage Loan, if the Seller
      delivers such documents promptly upon receipt, but in no event later than 360
      days after the Closing Date.

     

    (c)  In
      the
      event that a Mortgage Loan is purchased by the Seller in accordance with
      subsections 2.02(a) or (b) above or Section 2.03, the Seller shall remit the
      applicable Purchase Price to the Securities Administrator, for deposit in the
      Distribution Account and shall provide written notice to the Trustee detailing
      the components of the Purchase Price, signed by a Servicing Officer. Upon
      deposit of the Purchase Price in the Distribution Account and upon receipt
      of a
      Request for Release with respect to such Mortgage Loan, the Trustee or the
      Custodian will release to the Seller the related Mortgage File and the Trustee
      shall execute and deliver all instruments of transfer or assignment, without
      recourse, representation or warranty furnished to it by the Seller, as are
      necessary to vest in the Seller title to and rights under the Mortgage Loan.
      Such purchase shall be deemed to have occurred on the date on which the deposit
      into the Distribution Account was made. The Trustee shall promptly notify the
      Rating Agencies of such repurchase. The obligation of the Seller to cure,
      repurchase or substitute for any Mortgage Loan as to which a defect in a
      constituent document exists shall be the sole remedies respecting such defect
      available to the Certificateholders or to the Trustee on their
      behalf.

     

    (d)  The
      Seller shall deliver to the Trustee or the Custodian on its behalf, and Trustee
      agrees to accept the Mortgage Note and other documents constituting the Mortgage
      File with respect to any Replacement Mortgage Loan, which the Trustee or the
      Custodian will review as provided in subsections 2.02(a) and 2.02(b), provided,
      that the Closing Date referred to therein shall instead be the date of delivery
      of the Mortgage File with respect to each Replacement Mortgage
      Loan.

     

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

     

    (a)  The
      Company hereby represents and warrants to the Master Servicer, the Depositor,
      the Securities Administrator and the Trustee as follows, as of the Closing
      Date:

     

    (i)  It
      is
      duly organized 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 this Agreement to be conducted by it in any state
      in which a Mortgaged Property related to an EMC Mortgage Loan 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 ensure its ability to enforce each EMC Mortgage Loan,
      to
      service the EMC Mortgage Loans in accordance with the terms of this Agreement
      and to perform any of its other obligations under this Agreement in accordance
      with the terms hereof.

     

    (ii)  It
      has
      the full corporate power and authority to service each EMC Mortgage Loan, and
      to
      execute, deliver and perform, and to enter into and consummate the transactions
      contemplated by this Agreement and has duly authorized by all necessary
      corporate action on its part the execution, delivery and performance of this
      Agreement; assuming the due authorization, execution and delivery hereof by
      the
      other parties hereto, constitutes its legal, valid and binding obligation,
      enforceable against it in accordance with its terms, except that (a) the
      enforceability hereof 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.

     

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

     

    (iv)  It
      is an
      approved servicer of conventional mortgage loans for Fannie Mae or Freddie
      Mac
      and is a mortgagee approved by the Secretary of Housing and Urban Development
      pursuant to sections 203 and 211 of the National Housing Act.

     

    (v)  No
      litigation is pending or, to the best of its knowledge, threatened, against
      it
      that would materially and adversely affect the execution, delivery or
      enforceability of this Agreement or its ability to service the EMC Mortgage
      Loans or to perform any of its other obligations under this Agreement in
      accordance with the terms hereof.

     

    (vi)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for its execution, delivery and performance of, or compliance
      with, this Agreement or the consummation of the transactions contemplated
      hereby, or if any such consent, approval, authorization or order is required,
      it
      has obtained the same.

     

    (vii)  The
      Company has delivered to the Depositor and the Master Servicer financial
      statements of its parent, for its last two complete fiscal years. All such
      financial information fairly presents the pertinent results of operations and
      financial position for the period identified and has been prepared in accordance
      with GAAP consistently applied throughout the periods involved, except as set
      forth in the notes thereto. There has been no change in the servicing policies
      and procedures (outside of the normal changes warranted by regulatory and
      product type changes in the portfolio), business, operations, financial
      condition, properties or assets of the Company since the date of the Company’s
      financial information that would have a material adverse effect on its ability
      to perform its obligations under this Agreement.

     

    (b)  The
      Company hereby covenants to the Master Servicer, the Depositor, the Securities
      Administrator and the Trustee as follows, as of the Closing Date:

     

    (i)  As
      of the
      Closing Date and except as has been otherwise disclosed to the Master Servicer
      and the Depositor, or disclosed in any public filing: (1) no default or
      servicing related performance trigger has occurred as to any other Pass-Through
      Transfer due to any act or failure to act of the Company; (2) no material
      noncompliance with applicable servicing criteria as to any other Pass-Through
      Transfer has occurred, been disclosed or reported by the Company; (3) the
      Company has not been terminated as servicer in a residential mortgage loan
      Pass-Through Transfer, either due to a servicing default or to application
      of a
      servicing performance test or trigger; (4) no material changes to the Company’s
      servicing policies and procedures for similar loans have occurred in the
      preceding three years; (5) there are no aspects of the Company’s financial
      condition that could have a material adverse impact on the performance by the
      Company of its obligations hereunder; (6) there are no legal proceedings
      pending, or known to be contemplated by governmental authorities, against the
      Company that could be material to investors in the securities issued in such
      Pass-Through Transfer; and (7) there are no affiliations, relationships or
      transactions relating to the Company of a type that are described under Item
      1119 of Regulation AB.

     

    (ii)  If
      so
      requested by the Depositor or the Master Servicer on any date, the Company
      shall, within five Business Days following such request, confirm in writing
      the
      accuracy of the representations and warranties set forth in clause (b)(i) of
      this Section or, if any such representation and warranty is not accurate as
      of
      the date of such request, provide reasonably adequate disclosure of the
      pertinent facts, in writing, to the requesting party.

     

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

     

    (c)  Wells
      Fargo Bank, National Association, in its capacity as Master Servicer and
      Securities Administrator hereby represents and warrants to the Seller, the
      Depositor, the Trustee as follows, as of the Closing Date:

     

    (i)  It
      is a
      national banking association duly formed, validly existing and in good standing
      under the laws of the United States of America and is duly authorized and
      qualified to transact any and all business contemplated by this Agreement to
      be
      conducted by the Master Servicer and the Securities Administrator 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
      ensure its ability to enforce each Mortgage Loan, to master service the Mortgage
      Loans in accordance with the terms of this Agreement and to perform any of
      its
      other obligations under this Agreement in accordance with the terms hereof
      or
      thereof;

     

    (ii)  It
      has
      the full corporate power and authority to execute, deliver and perform, and
      to
      enter into and consummate the transactions contemplated by this Agreement and
      has duly authorized by all necessary corporate action on its part the execution,
      delivery and performance of this Agreement; and this, assuming the due
      authorization, execution and delivery hereof by the other parties hereto,
      constitutes its legal, valid and binding obligation, enforceable against it
      in
      accordance with its terms, except that (a) the enforceability hereof 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.

     

    (iii)  The
      execution and delivery of this Agreement by it, the consummation of any other
      of
      the transactions contemplated by this Agreement, and the fulfillment of or
      compliance with the terms hereof are in its ordinary course of business and
      will
      not (A) result in a material breach of any term or provision of its charter
      or
      by-laws 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 it is a party or by which it
      may
      be bound, or (C) constitute a material violation of any statute, order or
      regulation applicable to it of any court, regulatory body, administrative agency
      or governmental body having jurisdiction over it; and it 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 its ability to perform or meet
      any of its obligations under this Agreement.

     

    (iv)  No
      litigation is pending or, to the best of its knowledge, threatened, against
      it
      that would materially and adversely affect the execution, delivery or
      enforceability of this Agreement or its ability to perform any of its other
      obligations under this Agreement in accordance with the terms
      hereof.

     

    (v)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for its execution, delivery and performance of, or compliance
      with, this Agreement or the consummation of the transactions contemplated hereby
      or thereby, or if any such consent, approval, authorization or order is
      required, it has obtained the same.

     

    (d)  The
      Seller hereby represents and warrants to the Depositor, the Securities
      Administrator, the Master Servicer and the Trustee as follows, as of the Closing
      Date:

     

    (i)  The
      Seller is duly organized as a Delaware 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 this Agreement
      and 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 ensure its ability to enforce
      each
      Mortgage Loan, to sell the Mortgage Loans in accordance with the terms of this
      Agreement and to perform any of its other obligations under this Agreement
      in
      accordance with the terms hereof or thereof.

     

    (ii)  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 this Agreement and has duly authorized by all
      necessary corporate action on the part of the Seller the execution, delivery
      and
      performance of this Agreement; and this Agreement, assuming the due
      authorization, execution and delivery hereof by the other parties hereto or
      thereto, as applicable, constitutes a legal, valid and binding obligation of
      the
      Seller, enforceable against the Seller in accordance with its terms, except
      that
      (a) the enforceability hereof 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.

     

    (iii)  The
      execution and delivery of this Agreement by the Seller, the sale of the Mortgage
      Loans by the Seller under the Mortgage Loan Purchase Agreement, the consummation
      of any other of the transactions contemplated by this Agreement, and the
      fulfillment of or compliance with the terms hereof and thereof are in the
      ordinary course of business of the Seller and will not (A) result in a breach
      of
      any term or provision of the charter or by-laws of the Seller or (B) conflict
      with, result in a breach, violation or acceleration of, or result in a 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 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 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 this Agreement.

     

    (iv)  The
      Seller is an approved seller of conventional mortgage loans for Fannie Mae
      or
      Freddie Mac and is a mortgagee approved by the Secretary of Housing and Urban
      Development pursuant to sections 203 and 211 of the National Housing
      Act.

     

    (v)  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 this Agreement or the ability of the Seller to
      sell the Mortgage Loans or to perform any of its other obligations under this
      Agreement in accordance with the terms hereof or thereof.

     

    (vi)  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, this Agreement or the consummation of the
      transactions contemplated hereby or thereby, or if any such consent, approval,
      authorization or order is required, the Seller has obtained the
      same.

     

    (vii)  As
      of the
      Closing Date, the representations and warranties concerning the Mortgage Loans
      set forth in Section 7 of the Mortgage Loan Purchase Agreement are true and
      correct in all material respects.

     

    (e)  Upon
      discovery by any of the parties hereto of a breach of a representation or
      warranty set forth in Section 7 of the Mortgage Loan Purchase Agreement that
      materially and adversely affects the interests of the Certificateholders in
      any
      Mortgage Loan, the party discovering such breach shall give prompt written
      notice thereof to the other parties of this Agreement. The Seller hereby
      covenants with respect to the representations and warranties set forth in
      Section 7 of the Mortgage Loan Purchase Agreement, that within 90 days of the
      discovery of a breach of any representation or warranty set forth therein that
      materially and adversely affects the interests of the Certificateholders in
      any
      Mortgage Loan, it shall cure such breach in all material respects and, if such
      breach is not so cured, (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 Replacement 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 that, any such
      substitution pursuant to (i) above or repurchase pursuant to (ii) above shall
      not be effected prior to the delivery to the Trustee, the Securities
      Administrator of an Opinion of Counsel if required by Section 2.05 hereof and
      any such substitution pursuant to (i) above shall not be effected prior to
      the
      additional delivery to the Custodian of a Request for Release. The Seller shall,
      or cause the related Servicer to, furnish to the Securities Administrator and
      the Trustee the Officer’s Certificate required under Section 2.03(e) relating to
      such cure. If the Trustee has received (or has given, as the case may be)
      written notice of such a breach of a representation or warranty, the Trustee
      shall give prompt written notice to the Master Servicer, the Securities
      Administrator and the Seller, if within 90 days of its receipt (or giving,
      as
      the case may be) of such notice of breach, the Trustee does not receive an
      Officer’s Certificate as described in the preceding sentence certifying as to
      the cure of such breached representation or warranty. The Seller shall promptly
      reimburse the Trustee for any expenses reasonably incurred by the Trustee in
      respect of enforcing the remedies for such breach. To enable the Seller to
      amend
      the Mortgage Loan Schedule, the Seller shall, unless it cures such breach in
      a
      timely fashion pursuant to this Section 2.03, promptly notify the Trustee
      whether it intends either to repurchase, or to substitute for, the Mortgage
      Loan
      affected by such breach. With respect to the representations and warranties
      in
      Section 7 of the Mortgage Loan Purchase Agreement that are made to the best
      of
      the Seller’s knowledge, if it is discovered by any of the Depositor, the Master
      Servicer, the Seller, the Securities Administrator, 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,
      notwithstanding the Seller’s lack of knowledge with respect to the substance of
      such representation or warranty, the Seller shall nevertheless be required
      to
      cure, substitute for or repurchase the affected Mortgage Loan in accordance
      with
      the foregoing.

     

    With
      respect to any Replacement Mortgage Loan or Loans, the Seller shall deliver
      to
      the Trustee for the benefit of the Certificateholders such documents and
      agreements as are required by Section 2.01. No substitution shall be made in
      any
      calendar month after the Determination Date for such month. Scheduled Payments
      due with respect to Replacement Mortgage Loans in the Due Period related to
      the
      Distribution Date on which such proceeds are to be distributed shall not be
      part
      of the Trust Fund and shall be retained by the Seller. For the month of
      substitution, distributions to Certificateholders will include the Scheduled
      Payment due on any Deleted Mortgage Loan for the related Due Period and
      thereafter the Seller shall be entitled to retain all amounts received in
      respect of such Deleted Mortgage Loan. The Seller 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 Replacement Mortgage
      Loan
      or Loans and the Seller shall deliver the amended Mortgage Loan Schedule to
      the
      Trustee, the Master Servicer, the Securities Administrator and the Custodian.
      Upon such substitution, the Replacement 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 Replacement Mortgage Loan or Loans, as of
      the
      date of substitution, the representations and warranties set forth in Section
      7
      of the Mortgage Loan Purchase Agreement with respect to such Mortgage Loan.
      Upon
      any such substitution and the deposit into the Distribution Account of the
      amount required to be deposited therein in connection with such substitution
      as
      described in the following paragraph and receipt by the Securities Administrator
      and the Trustee of a Request for Release for such Mortgage Loan, the Trustee
      or
      the Custodian shall release to the Seller the Mortgage File relating to such
      Deleted Mortgage Loan and held for the benefit of the Certificateholders and
      the
      Trustee shall execute and deliver at the Seller’s direction such instruments of
      transfer or assignment as have been prepared by the Seller, in each case without
      recourse, representation or warranty as shall be necessary to vest in the
      Seller, or its respective designee, title to 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 Replacement Mortgage Loans
      for
      a Deleted Mortgage Loan, the Master Servicer will determine the amount (if
      any)
      by which the aggregate principal balance of all the Replacement Mortgage Loans
      as of the date of substitution is less than the Stated Principal Balance (after
      application of the principal portion of the Scheduled Payment due in the month
      of substitution) of such Deleted Mortgage Loan. An amount equal to the aggregate
      of such deficiencies, described in the preceding sentence for any Distribution
      Date (such amount, the “Substitution Adjustment Amount”) shall be deposited into
      the Distribution Account by the Securities Administrator upon receipt from
      the
      Seller delivering such Replacement Mortgage Loan on the Determination Date
      for
      the Distribution Date relating to the Prepayment Period 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 into the Distribution Account maintained by the
      Securities Administrator, on the Determination Date for the Distribution Date
      in
      the month following the month during which the Seller became obligated to
      repurchase or replace such Mortgage Loan and upon such deposit of the Purchase
      Price, the delivery of an Opinion of Counsel if required by Section 2.05 and
      the
      receipt of a Request for Release, the Trustee or the Custodian shall release
      the
      related Mortgage File held for the benefit of the Certificateholders to the
      Seller, and the Trustee shall execute and deliver at such Person’s direction the
      related instruments of transfer or assignment prepared by the Seller, in each
      case without recourse, representation or warranty as shall be necessary to
      transfer title from the Trustee for the benefit of the Certificateholders and
      transfer the Trustee’s interest to the Seller to any Mortgage Loan purchased
      pursuant to this Section 2.03. 

     

    In
      connection with any repurchase or substitution of a Mortgage Loan or the cure
      of
      a breach of a representation or warranty set forth in Section 7 of the Mortgage
      Loan Purchase Agreement pursuant to this Section 2.03, the Seller shall, or
      cause the related Servicer to, promptly furnish to the Securities Administrator
      and the Trustee an Officer’s Certificate, signed by a duly authorized officer of
      the Seller or the related servicer, as the case may be, to the effect that
      such
      repurchase, substitution or cure has been made in accordance with the terms
      and
      conditions of this Agreement and that all conditions precedent to such
      repurchase, substitution or cure have been satisfied, including the delivery
      to
      the Securities Administrator of the Purchase Price or Substitution Adjustment
      Amount, as applicable, for deposit into the Distribution Account, together
      with
      copies of any Opinion of Counsel required to be delivered pursuant to this
      Agreement and the related Request for Release, on which the Securities
      Administrator and the Trustee may rely. Solely for purposes of the Securities
      Administrator providing an Assessment of Compliance, upon receipt of such
      documentation, the Securities Administrator shall approve such repurchase,
      substitution or cure, as applicable, and which approval shall consist solely
      of
      the Securities Administrator’s receipt of such documentation and deposits. It is
      understood and agreed that the obligation under this Agreement of the Seller
      to
      cure the breach of a representation or warranty set forth in Section 7 of the
      Mortgage Loan Purchase Agreement or to repurchase or replace any Mortgage Loan
      as to which a breach has occurred and is continuing shall constitute the sole
      remedies against the Seller respecting such breach available to
      Certificateholders, the Depositor or the Trustee.

     

    (f)  The
      representations and warranties set forth in Section 2.03 hereof shall survive
      delivery of the respective Mortgage Loans and Mortgage Files to the Trustee
      or
      the Custodian for the benefit of the Certificateholders.

     

    Section
      2.04  Representations
      and Warranties of the Depositor. 

     

    The
      Depositor hereby represents and warrants to the Master Servicer, the Securities
      Administrator and the Trustee as follows, as of the date hereof and as of the
      Closing Date:

     

    (i)  The
      Depositor is duly organized and is validly existing as limited liability company
      in good standing under the laws of the State of Delaware and has full power
      and
      authority necessary to own or hold its properties and to conduct its business
      as
      now conducted by it and to enter into and perform its obligations under this
      Agreement.

     

    (ii)  The
      Depositor has the full power and authority to execute, deliver and perform,
      and
      to enter into and consummate the transactions contemplated by, this Agreement
      and has duly authorized, by all necessary action on its part, the execution,
      delivery and performance of this Agreement; and this Agreement, assuming the
      due
      authorization, execution and delivery hereof and thereof by the other parties
      hereto and thereto, constitutes a legal, valid and binding obligation of the
      Depositor, enforceable against the Depositor in accordance with its terms,
      subject, as to enforceability, to (i) bankruptcy, insolvency, reorganization,
      moratorium and other similar laws affecting creditors’ rights generally and (ii)
      general principles of equity, regardless of whether enforcement is sought in
      a
      proceeding in equity or at law.

     

    (iii)  The
      execution and delivery of this Agreement by the Depositor, the consummation
      of
      the transactions contemplated by this Agreement, and the fulfillment of or
      compliance with the terms hereof are in the ordinary course of business of
      the
      Depositor and will not (A) result in a breach of any term or provision of the
      organizational documents of the Depositor or (B) conflict with, result in a
      breach, violation or acceleration of, or result in a default under, the terms
      of
      any other material agreement or instrument to which the Depositor is a party
      or
      by which it may be bound or (C) constitute a violation of any statute, order
      or
      regulation applicable to the Depositor of any court, regulatory body,
      administrative agency or governmental body having jurisdiction over the
      Depositor; and the Depositor 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 Depositor’s ability to perform or meet any
      of its obligations under this Agreement.

     

    (iv)  No
      litigation is pending, or, to the best of the Depositor’s knowledge, threatened,
      against the Depositor that would materially and adversely affect the execution,
      delivery or enforceability of this Agreement or the ability of the Depositor
      to
      perform its obligations under this Agreement in accordance with the terms
      hereof.

     

    (v)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Depositor
      of, or compliance by the Depositor with, this Agreement or the consummation
      of
      the transactions contemplated hereby, or if any such consent, approval,
      authorization or order is required, the Depositor has obtained the same;
      and

     

    (vi)  The
      Depositor has filed all reports required to be filed by Section 13 or Section
      15(d) of the Exchange Act during the preceding 12 months (or for such shorter
      period that the Depositor was required to file such reports) and it has been
      subject to such filing requirements for the past 90 days.

     

    The
      Depositor hereby represents and warrants to the Trustee as of the Closing Date,
      following the transfer of the Mortgage Loans to it by the Seller, the Depositor
      had good title to the Mortgage Loans and the related Mortgage Notes were subject
      to no offsets, claims, defenses or counterclaims.

     

    It
      is
      understood and agreed that the representations and warranties set forth in
      the
      immediately preceding paragraph shall survive delivery of the Mortgage Files
      to
      the Trustee or the Custodian for the benefit of the Certificateholders. Upon
      discovery by the Depositor, the Trustee of a breach of such representations
      and
      warranties, the party discovering such breach shall give prompt written notice
      to the others and to each Rating Agency.

     

    Section
      2.05  Delivery
      of Opinion of Counsel in Connection with Substitutions and
      Repurchases. 

     

    (a)  Notwithstanding
      any contrary provision of this Agreement, with respect to any Mortgage Loan
      that
      is not in default or as to which default is not reasonably foreseeable, no
      repurchase or substitution pursuant to Sections 2.02 or 2.03 shall be made
      unless the Sponsor delivers to the Trustee and the Securities Administrator
      an
      Opinion of Counsel, addressed to the Trustee and the Securities Administrator,
      to the effect that such repurchase or substitution would not (i) result in
      the
      imposition of the tax on “prohibited transactions” of REMIC I, REMIC II, REMIC
      III or REMIC IV or contributions after the Closing Date, as defined in Sections
      860F(a)(2) and 860G(d) of the Code, respectively, or (ii) cause any of REMIC
      I,
      REMIC II, REMIC III or REMIC IV to fail to qualify as a REMIC at any time that
      any Certificates are outstanding. Any Mortgage Loan as to which repurchase
      or
      substitution was delayed pursuant to this paragraph shall be repurchased or
      the
      substitution therefor shall occur (subject to compliance with Sections 2.02
      or
      2.03) upon the earlier of (a) the occurrence of a default or a default becoming
      reasonably foreseeable with respect to such Mortgage Loan and (b) receipt by
      the
      Trustee and the Securities Administrator of an Opinion of Counsel addressed
      to
      the Trustee and the Securities Administrator to the effect that such repurchase
      or substitution, as applicable, will not result in the events described in
      clause (i) or clause (ii) of the preceding sentence.

     

    (b)  Upon
      discovery by the Depositor, the Seller, the Custodian or the Master Servicer
      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 5 Business Days of discovery) give written
      notice thereof to the other parties, the Trustee and the Securities
      Administrator. In connection therewith, the Trustee, or the Custodian on its
      behalf, shall require the Seller, at the Seller’s option, to either (i)
      substitute, if the conditions in Section 2.03(d) with respect to substitutions
      are satisfied, a Replacement 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 contained in Section 2.03. The Trustee, or the Custodian on its behalf,
      shall reconvey to the Seller the Mortgage Loan to be released pursuant hereto
      (and the Custodian shall deliver the related Mortgage File) 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  Countersignature
      and Delivery of Certificates. 

     

    (a)  The
      Trustee acknowledges the sale, transfer and assignment to it of the Trust Fund
      and, concurrently with such transfer and assignment, the Securities
      Administrator has executed, countersigned and delivered, to or upon the order
      of
      the Depositor, the Certificates in authorized denominations evidencing 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 in accordance with its terms.

     

    (b)  The
      Depositor concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey in trust to the Trustee without
      recourse all the right, title and interest of the Depositor in and to the REMIC
      I Regular Interests and the other assets of REMIC II for the benefit of the
      holders of the Certificates (other than the Class C, Class P and Class R
      Certificates), the Class C Interest, the Class P Interest and the Class R-2
      Certificates. The Trustee acknowledges receipt of the REMIC I Regular Interests
      (which are uncertificated) and the other assets of REMIC II and declares that
      it
      holds and will hold the same in trust for the exclusive use and benefit of
      the
      holders of the Certificates (other than the Class C, Class P and Class R
      Certificates), the Class C Interest, the Class P Interest and the Class R-2
      Certificates.

     

    (c)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey in trust to the Trustee without
      recourse all the right, title and interest of the Depositor in and to the Class
      C Interest for the benefit of the Holders of the Class C Certificates and the
      Class RX Certificates (in respect of the Class R-3 Interest). The Trustee
      acknowledges receipt of the Class C Interest (which is uncertificated) and
      declares that it holds and will hold the same in trust for the exclusive use
      and
      benefit of the Holders of the Class C Certificates and the Class RX Certificates
      (in respect of the Class R-3 Interest).

     

    (d)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey in trust to the Trustee without
      recourse all the right, title and interest of the Depositor in and to the Class
      P Interest for the benefit of the Holders of the Class P Certificates and the
      Class RX Certificates (in respect of the Class R-4 Interest). The Trustee
      acknowledges receipt of the Class P Interest (which is uncertificated) and
      declares that it holds and will hold the same in trust for the exclusive use
      and
      benefit of the Holders of the Class P Certificates and the Class RX Certificates
      (in respect of the Class R-4 Interest).

     

    Section
      2.07  Purposes
      and Powers of the Trust. 

     

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

     

    (a)  acquire
      and hold the Mortgage Loans and the other assets of the Trust Fund and the
      proceeds therefrom;

     

    (b)  to
      issue
      the Certificates sold to the Depositor in exchange for the Mortgage
      Loans;

     

    (c)  to
      make
      distributions on the Certificates;

     

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

     

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

     

    The
      Trust
      is hereby authorized to engage in the foregoing activities. The Trust shall
      not
      engage in any activity other than in connection with the foregoing or other
      than
      as required or authorized by the terms of this Agreement while any Certificate
      is outstanding, and this Section 2.07.

     

     

    ARTICLE
      III

    ADMINISTRATION
      AND SERVICING OF

    EMC
      MORTGAGE LOANS BY COMPANY

     

    Section
      3.01  The
      Company. 

     

    The
      Company shall service and administer the EMC Mortgage Loans in accordance with
      customary and usual standards of practice of prudent mortgage loan servicers
      in
      the respective states in which the related Mortgaged Properties are located.
      In
      connection with such servicing and administration, the Company shall have full
      power and authority, acting alone and/or through subservicers as provided in
      Section 3.03, to do or cause to be done any and all things that it may deem
      necessary or desirable in connection with such servicing and administration,
      including but not limited to, the power and authority, subject to the terms
      hereof (i) to execute and deliver, on behalf of the Certificateholders, the
      Trustee, customary consents or waivers and other instruments and documents,
      (ii)
      to consent to transfers of any related Mortgaged Property and assumptions of
      the
      Mortgage Notes and related Mortgages (but only in the manner provided herein),
      (iii) to collect any Insurance Proceeds and other Liquidation Proceeds or
      Subsequent Recoveries, and (iv) subject to Section 3.09, to effectuate
      foreclosure or other conversion of the ownership of the Mortgaged Property
      securing any EMC Mortgage Loan; provided that the Company shall take no action
      that is inconsistent with or prejudices the interests of the Trust Fund or
      the
      Certificateholders in any EMC Mortgage Loan or the rights and interests of
      the
      Depositor or the Trustee under this Agreement.

     

    Without
      limiting the generality of the foregoing, the Company, in its own name or in
      the
      name of the Trust, the Depositor or the Trustee, is hereby authorized and
      empowered by the Trust, the Depositor and the Trustee, when the Company 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 EMC Mortgage
      Loans, and with respect to the related Mortgaged Properties held for the benefit
      of the Certificateholders. The Company shall prepare and deliver to the
      Depositor and/or the Trustee such documents requiring execution and delivery
      by
      any or all of them as are necessary or appropriate to enable the Company to
      service and administer the EMC Mortgage Loans. Upon receipt of such documents,
      the Depositor and/or the Trustee shall execute such documents and deliver them
      to the Company.

     

    In
      accordance with the standards of the first paragraph of this Section 3.01,
      the
      Company 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
      relating to the EMC Mortgage Loans, which advances shall be reimbursable in
      the
      first instance from related collections from the Mortgagors pursuant to Section
      5.04, and further as provided in Section 5.02. All costs incurred by the
      Company, if any, in effecting the timely payments of taxes and assessments
      on
      the Mortgaged Properties relating to the EMC Mortgage Loans and related
      insurance premiums shall not, for the purpose of calculating monthly
      distributions to the Certificateholders, be added to the Stated Principal
      Balance under the related EMC Mortgage Loans, notwithstanding that the terms
      of
      such Mortgage Loans so permit.

     

    Section
      3.02  Due-on-Sale
      Clauses; Assumption Agreements. 

     

    (a)  Except
      as
      otherwise provided in this Section 3.02, when any property subject to a Mortgage
      has been or is about to be conveyed by the Mortgagor, the Company 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 Company is not required
      to
      exercise such rights with respect to an EMC 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 Company 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 Company is authorized, subject to Section 3.02(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 Company
      enters such agreement) by the applicable Required Insurance Policies. The
      Company, subject to Section 3.02(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 Company shall not be deemed to be in default under this Section
      3.02(a) by reason of any transfer or assumption that the Company reasonably
      believes it is restricted by law from preventing.

     

    (b)  Subject
      to the Company’s duty to enforce any due-on-sale clause to the extent set forth
      in Section 3.02(a), 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 related EMC Mortgage Loan, the Company shall prepare and deliver or
      cause
      to be prepared and delivered to the Trustee for signature and shall direct,
      in
      writing, the 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 (including, but not limited
      to, the Mortgage Rate, the amount of the Scheduled Payment and any other term
      affecting the amount or timing of payment on the EMC Mortgage Loan) may be
      changed. In addition, the substitute Mortgagor and the Mortgaged Property must
      be acceptable to the Company in accordance with its servicing standards as
      then
      in effect. The Company 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 Company for entering into an assumption or substitution of liability
      agreement shall be retained by the Company as additional servicing
      compensation.

     

    Section
      3.03  Subservicers. 

     

    The
      Company shall perform all of its servicing responsibilities hereunder or may
      cause a subservicer to perform any such servicing responsibilities on its
      behalf, but the use by the Company of a subservicer shall not release the
      Company from any of its obligations hereunder and the Company shall remain
      responsible hereunder for all acts and omissions of each subservicer as fully
      as
      if such acts and omissions were those of the Company. The Company shall pay
      all
      fees of each subservicer from its own funds, and a subservicer’s fee shall not
      exceed the Servicing Fee payable to the Company hereunder.

     

    At
      the
      cost and expense of the Company, without any right of reimbursement from its
      Protected Account, the Company shall be entitled to terminate the rights and
      responsibilities of a subservicer and arrange for any servicing responsibilities
      to be performed by a successor subservicer; provided, however, that nothing
      contained herein shall be deemed to prevent or prohibit the Company, at the
      Company’s option, from electing to service the related EMC Mortgage Loans
      itself. In the event that the Company’s responsibilities and duties under this
      Agreement are terminated pursuant to Section 9.05, the Company shall at its
      own
      cost and expense terminate the rights and responsibilities of each subservicer
      effective as of the date of termination of the Company. The Company shall pay
      all fees, expenses or penalties necessary in order to terminate the rights
      and
      responsibilities of each subservicer from the Company’s own funds without
      reimbursement from the Trust Fund.

     

    Notwithstanding
      the foregoing, the Company shall not be relieved of its obligations hereunder
      and shall be obligated to the same extent and under the same terms and
      conditions as if it alone were servicing and administering the EMC Mortgage
      Loans. The Company shall be entitled to enter into an agreement with a
      subservicer for indemnification of the Company by the subservicer and nothing
      contained in this Agreement shall be deemed to limit or modify such
      indemnification.

     

    Any
      Subservicing Agreement and any other transactions or services relating to the
      EMC Mortgage Loans involving a subservicer shall be deemed to be between such
      subservicer and the Company alone, and neither the Master Servicer nor the
      Trustee shall have any obligations, duties or liabilities with respect to such
      subservicer including any obligation, duty or liability of either the Master
      Servicer or the Trustee to pay such subservicer’s fees and expenses. For
      purposes of remittances to the Master Servicer pursuant to this Agreement,
      the
      Company shall be deemed to have received a payment on an EMC Mortgage Loan
      when
      a subservicer has received such payment.

     

    Section
      3.04  Documents,
      Records and Funds in Possession of Company To Be Held for Trustee. 

     

    Notwithstanding
      any other provisions of this Agreement, the Company shall transmit to the
      Trustee as required by this Agreement all documents and instruments in respect
      of an EMC Mortgage Loan coming into the possession of the Company from time
      to
      time and shall account fully to the Trustee for any funds received by the
      Company or that otherwise are collected by the Company as Liquidation Proceeds
      or Insurance Proceeds in respect of any such Mortgage Loan. All Mortgage Files
      and funds collected or held by, or under the control of, the Company in respect
      of any EMC Mortgage Loans, whether from the collection of principal and interest
      payments or from Liquidation Proceeds, including but not limited to, any funds
      on deposit in the Protected Account maintained by the Company, shall be held
      by
      the Company 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 Company also agrees that it shall not create, incur or
      subject any Mortgage File or any funds that are deposited in the Protected
      Account maintained by the Company or the Distribution Account or in any Escrow
      Account, or any funds that otherwise are or may become due or payable to the
      Trustee for the 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 set off against any Mortgage
      File or any funds collected on, or in connection with, an EMC Mortgage Loan,
      except, however, that the Company shall be entitled to set off against and
      deduct from any such funds any amounts that are properly due and payable to
      the
      Company under this Agreement.

     

    Section
      3.05  Maintenance
      of Hazard Insurance. 

     

    The
      Company shall cause to be maintained, for each EMC Mortgage Loan, hazard
      insurance on buildings upon, or comprising part of, the Mortgaged Property
      against loss by fire, hazards of extended coverage and such other hazards as
      are
      customary in the area where the related Mortgaged Property is located with
      an
      insurer which is licensed to do business in the state where the related
      Mortgaged Property is located. Each such policy of standard hazard insurance
      shall contain, or have an accompanying endorsement that contains, a standard
      mortgagee clause. The Company shall also cause flood insurance to be maintained
      on property acquired upon foreclosure or deed in lieu of foreclosure of any
      EMC
      Mortgage Loan, to the extent described below. Pursuant to Section 5.01, any
      amounts collected by the Company under any such policies (other than the amounts
      to be applied to the restoration or repair of the related Mortgaged Property
      or
      property thus acquired or amounts released to the Mortgagor in accordance with
      the Company’s normal servicing procedures) shall be deposited in the Protected
      Account maintained by the Company. Any cost incurred by the Company 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 EMC Mortgage Loan so permit. Such costs shall be
      recoverable by the Company out of late payments by the related Mortgagor or
      out
      of Liquidation Proceeds to the extent permitted by Section 5.02. 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 related EMC
      Mortgage Loan in a federally designated special flood hazard area and such
      area
      is participating in the national flood insurance program, the Company shall
      cause flood insurance to be maintained with respect to such EMC Mortgage Loan.
      Such flood insurance shall be in an amount equal to the least of (i) the Stated
      Principal Balance of the related EMC Mortgage Loan, (ii) minimum amount required
      to compensate for damage or loss on a replacement cost basis or (iii) the
      maximum amount of such insurance available for the related Mortgaged Property
      under the Flood Disaster Protection Act of 1973, as amended.

     

    In
      the
      event that the Company shall obtain and maintain a blanket policy insuring
      against hazard losses on all of the EMC Mortgage Loans, it shall conclusively
      be
      deemed to have satisfied its obligations as set forth in the first sentence
      of
      this Section 3.05, it being understood and agreed that such policy may contain
      a
      deductible clause on terms substantially equivalent to those commercially
      available and maintained by comparable servicers. If such policy contains a
      deductible clause, the Company shall, in the event that there shall not have
      been maintained on the related Mortgaged Property a policy complying with the
      first sentence of this Section 3.05, and there shall have been a loss that
      would
      have been covered by such policy, deposit in the Protected Account maintained
      by
      the Company the amount not otherwise payable under the blanket policy because
      of
      such deductible clause. Such deposit shall be from the Company’s own funds
      without reimbursement therefor. In connection with its activities as
      administrator and servicer of the EMC Mortgage Loans, the Company agrees to
      present, on behalf of itself, the Depositor and the Trustee for the benefit
      of
      the Certificateholders, claims under any such blanket policy.

     

    Section
      3.06  Presentment
      of Claims and Collection of Proceeds. 

     

    The
      Company shall prepare and present on behalf of the Trustee and the
      Certificateholders all claims under the Insurance Policies relating to the
      EMC
      Mortgage Loans and take such actions (including the negotiation, settlement,
      compromise or enforcement of the insured’s claim) as shall be necessary to
      realize recovery under such Insurance Policies. Any proceeds disbursed to the
      Company in respect of such Insurance Policies shall be promptly deposited in
      the
      Protected Account maintained by the Company upon receipt, except that any
      amounts that are to be applied upon request to the repair or restoration of
      the
      related Mortgaged Property, which repair or restoration the owner of such
      Mortgaged Property or EMC, as applicable, has agreed to make as a condition
      precedent to the presentation of claims on the related EMC Mortgage Loan under
      the applicable Insurance Policy, need not be so deposited (or
      remitted).

     

    Section
      3.07  Maintenance
      of the Primary Mortgage Insurance Policies. 

     

    (a)  The
      Company shall not take any action that would result in noncoverage under any
      applicable Primary Mortgage Insurance Policy of any loss which, but for the
      actions of the Company would have been covered thereunder. The Company shall
      use
      its best efforts to keep in force and effect (to the extent that the EMC
      Mortgage Loan requires the Mortgagor to maintain such insurance), Primary
      Mortgage Insurance applicable to each EMC Mortgage Loan. The Company shall
      not
      cancel or refuse to renew any such Primary Mortgage Insurance Policy that is
      in
      effect at the date of the initial issuance of the related Mortgage Note and
      is
      required to be kept in force hereunder.

     

    (b)  The
      Company agrees to present on behalf of the Trustee and the Certificateholders,
      claims to the insurer under any Primary Mortgage Insurance Policies relating
      to
      the EMC Mortgage Loans and, in this regard, to take such reasonable action
      as
      shall be necessary to permit recovery under any Primary Mortgage Insurance
      Policies respecting defaulted EMC Mortgage Loans. Pursuant to Section 5.01,
      any
      amounts collected by the Company under any Primary Mortgage Insurance Policies
      shall be deposited in the Protected Account maintained by the Company, subject
      to withdrawal pursuant to Section 5.02 hereof.

     

    Section
      3.08  Fidelity
      Bond, Errors and Omissions Insurance. 

     

    The
      Company shall maintain, at its own expense, a blanket fidelity bond and an
      errors and omissions insurance policy, with broad coverage with responsible
      companies on all officers, employees or other persons acting in any capacity
      with regard to the EMC Mortgage Loans and who handle funds, money, documents
      and
      papers relating to the EMC Mortgage Loans. The fidelity bond and errors and
      omissions insurance shall be in the form of the Mortgage Banker’s Blanket Bond
      and shall protect and insure the Company against losses, including forgery,
      theft, embezzlement, fraud, errors and omissions and negligent acts of such
      persons. Such fidelity bond shall also protect and insure the Company against
      losses in connection with the failure to maintain any insurance policies
      required pursuant to this Agreement and the release or satisfaction of an EMC
      Mortgage Loan which is not in accordance with Accepted Servicing Practices.
      No
      provision of this Section 3.08 requiring the fidelity bond and errors and
      omissions insurance shall diminish or relieve the Company from its duties and
      obligations as set forth in this Agreement. The minimum coverage under any
      such
      bond and insurance policy shall be at least equal to the corresponding amounts
      required by Accepted Servicing Practices. The Company shall deliver to the
      Master Servicer a certificate from the surety and the insurer as to the
      existence of the fidelity bond and errors and omissions insurance policy and
      shall obtain a statement from the surety and the insurer that such fidelity
      bond
      or insurance policy shall in no event be terminated or materially modified
      without thirty days prior written notice to the Master Servicer and the Trustee.
      The Company shall notify the Master Servicer and the Trustee within five
      business days of receipt of notice that such fidelity bond or insurance policy
      will be, or has been, materially modified or terminated. The Trustee for the
      benefit of the Certificateholders must be named as loss payees on the fidelity
      bond and as additional insured on the errors and omissions policy.

     

    The
      Company shall provide to the Master Servicer and the Depositor evidence of
      the
      authorization of the person signing any certification or statement, copies
      or
      other evidence of fidelity bond and errors and omissions insurance, financial
      information and reports, and such other information related to the Company
      or
      any subservicer engaged by it or the Company’s or such subservicer’s performance
      hereunder or under the related Subservicing Agreement as may be reasonably
      requested by the Master Servicer or the Depositor.

     

    Section
      3.09  Realization
      Upon Defaulted Mortgage Loans; Determination of Excess Liquidation Proceeds
      and
      Realized Losses; Repurchases of Certain Mortgage Loans. 

     

    (a)  The
      Company shall use reasonable efforts to foreclose upon or otherwise comparably
      convert the ownership of properties securing such of the EMC 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 Company 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 the requirements of
      the
      insurer under any Required Insurance Policy; provided that the Company 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
      EMC Mortgage Loan after reimbursement to itself of such expenses and (ii) that
      such expenses will be recoverable to it through Insurance Proceeds or
      Liquidation Proceeds (respecting which it shall have priority for purposes
      of
      withdrawals from the Protected Accounts maintained by the Company pursuant
      to
      Section 5.02). If the Company reasonably believes that Liquidation Proceeds
      with
      respect to any such EMC Mortgage Loan would not be increased as a result of
      such
      foreclosure or other action, such EMC Mortgage Loan will be charged-off and
      will
      become a Liquidated Loan. The Company will give notice of any such charge-off
      to
      the Trustee and the Securities Administrator. The Company shall be responsible
      for all other costs and expenses incurred by it in any such proceedings;
      provided that such costs and expenses shall be Servicing Advances and that
      it
      shall be entitled to reimbursement thereof from the proceeds of liquidation
      of
      the related Mortgaged Property, as contemplated in Section 5.02. If the Company
      has knowledge that a Mortgaged Property that the Company is contemplating
      acquiring in foreclosure or by deed- in-lieu of foreclosure is located within
      a
      one-mile radius of any site with environmental or hazardous waste risks known
      to
      the Company, the Company will, prior to acquiring the related Mortgaged
      Property, consider such risks and only take action in accordance with its
      established environmental review procedures.

     

    With
      respect to any REO Property relating to an EMC Mortgage Loan, the deed or
      certificate of sale shall be taken in the name of the Trustee for the benefit
      of
      the Certificateholders (or the Trustee’s nominee on behalf of the
      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
      Company shall ensure that the title to such REO Property references this
      Agreement and the Trustee’s capacity hereunder. Pursuant to its efforts to sell
      such REO Property, the Company shall either itself or through an agent selected
      by the Company 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 Company deems
      to
      be in the best interest of the Company and the Certificateholders for the period
      prior to the sale of such REO Property. The Company shall prepare for and
      deliver to the Trustee and the Securities Administrator a statement with respect
      to each such REO Property that has been rented showing the aggregate rental
      income received and all expenses incurred in connection with the management
      and
      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 Protected Account maintained by the Company no later than the close of
      business on each Determination Date. The Company shall perform the tax reporting
      and withholding related to foreclosures, abandonments and cancellation of
      indebtedness income as specified by Sections 1445, 6050J and 6050P of the Code
      by preparing and filing such tax and information returns, as may be
      required.

     

    In
      the
      event that the Trust Fund acquires any Mortgaged Property as aforesaid or
      otherwise in connection with a default or a default becoming reasonably
      foreseeable on an EMC Mortgage Loan, the Company shall dispose of such Mortgaged
      Property prior to three years after its acquisition by the Trust Fund or, at
      the
      expense of the Trust Fund, request more than 60 days prior to the day on which
      such three-year period would otherwise expire, an extension of the three-year
      grace period unless the Trustee shall have been supplied with an Opinion of
      Counsel addressed to the Trustee (such opinion not to be an expense of the
      Trustee) to the effect that the holding by the Trust Fund of such Mortgaged
      Property subsequent to such three-year period will not result in the imposition
      of taxes on “prohibited transactions” of REMIC I, REMIC II, REMIC III or REMIC
      IV as defined in Section 860F of the Code or cause either REMIC I, REMIC II,
      REMIC III or REMIC IV to fail to qualify as a REMIC at any time that any
      Certificates are outstanding, in which case the Trust Fund may continue to
      hold
      such Mortgaged Property (subject to any conditions contained in such Opinion
      of
      Counsel). 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 of REMIC I, REMIC
      II, REMIC III or REMIC IV 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 Company has agreed to indemnify
      and
      hold harmless the Trust Fund with respect to the imposition of any such
      taxes.

     

    The
      decision of the Company to foreclose on a defaulted EMC Mortgage Loan shall
      be
      subject to a determination by the Company 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 Mortgaged Properties acquired through
      foreclosure or other judicial proceeding, net of reimbursement to the Company
      for expenses incurred (including any property or other taxes) in connection
      with
      such management and net of unreimbursed Servicing Fees, Advances, Servicing
      Advances and any management fee paid or to be paid with respect to the
      management of such Mortgaged Property, shall be applied to the payment of
      principal of, and interest on, the related defaulted EMC Mortgage Loans (with
      interest accruing as though such Mortgage Loans were still current) and all
      such
      income shall be deemed, for all purposes in the Agreement, to be payments on
      account of principal and interest on the related Mortgage Notes and shall be
      deposited into the Protected Accounts maintained by the Company. To the extent
      the income received during a Prepayment Period is in excess of the amount
      attributable to amortizing principal and accrued interest at the related
      Mortgage Rate on the related EMC Mortgage Loan, such excess shall be considered
      to be a partial Principal Prepayment for such Mortgage Loan for all purposes
      hereof.

     

    The
      Liquidation Proceeds from any liquidation of a related EMC Mortgage Loan, net
      of
      any payment to the Company as provided above, shall be deposited in the related
      Protected Account maintained by the Company on the next succeeding Determination
      Date following receipt thereof for distribution on the related Distribution
      Date, except that any Excess Liquidation Proceeds shall be retained by the
      Company as additional servicing compensation.

     

    The
      proceeds of any Liquidated Loan, as well as any recovery resulting from a
      partial collection of related Liquidation Proceeds or any income from a related
      REO Property, shall be applied in the following order of priority: first, to
      reimburse the Company for any related unreimbursed Servicing Advances and
      Servicing Fees, pursuant to Section 5.02 or this Section 3.09; second, to
      reimburse the Company for any unreimbursed Advances pursuant to Section 5.02
      or
      this Section 3.09; third, to accrued and unpaid interest (to the extent no
      Advance has been made for such amount) on the EMC Mortgage Loan or related
      REO
      Property, at the Net Mortgage Rate to the first day of the month in which such
      amounts are required to be distributed; and fourth, as a recovery of principal
      of the EMC Mortgage Loan.

     

    (b)  On
      each
      Determination Date, the Company shall determine the respective aggregate amounts
      of Excess Liquidation Proceeds and Realized Losses, if any, for the prior
      calendar month.

     

    (c)  The
      Company has no intent to foreclose on any EMC Mortgage Loan based on the
      delinquency characteristics as of the Closing Date; provided, that the foregoing
      does not prevent the Company from initiating foreclosure proceedings on any
      date
      hereafter if the facts and circumstances of such EMC Mortgage Loans including
      delinquency characteristics in the Company’s discretion so warrant such
      action.

     

    Section
      3.10  Servicing
      Compensation. 

     

    As
      compensation for its activities hereunder, the Company shall be entitled to
      retain or withdraw from its Protected Accounts out of each payment of interest
      on an EMC Mortgage Loan included in the Trust Fund an amount equal to the
      Servicing Fee.

     

    Additional
      servicing compensation in the form of any Excess Liquidation Proceeds,
      assumption fees, late payment charges, all Prepayment Interest Excess on any
      EMC
      Mortgage Loan, all income and gain net of any losses realized from Permitted
      Investments with respect to funds in or credited to the Protected Accounts
      maintained by the Company shall be retained by the Company to the extent not
      required to be deposited in the Protected Accounts maintained by the Company
      pursuant to Section 5.02. The Company shall be required to pay all expenses
      incurred by it in connection with its servicing activities hereunder (including
      payment of any premiums for hazard insurance, as required by Section 3.05 and
      maintenance of the other forms of insurance coverage required by Section 3.07)
      and shall not be entitled to reimbursement therefor except as specifically
      provided in Section 5.02.

     

    EMC
      shall
      be entitled to retain any Prepayment Interest Excess.

     

    Section
      3.11  REO
      Property. 

     

    (a)  In
      the
      event the Trust Fund acquires ownership of any REO Property in respect of any
      related EMC Mortgage Loan, the deed or certificate of sale shall be issued
      to
      the Trustee, or to its nominee, on behalf of the Certificateholders. The Company
      shall sell any such REO Property as expeditiously as possible and in accordance
      with the provisions of this Agreement. Pursuant to its efforts to sell such
      REO
      Property, the Company shall protect and conserve such REO Property in the manner
      and to the extent required herein, in accordance with the REMIC Provisions
      and
      in a manner that does not result in a tax on “net income from foreclosure
      property” or cause such REO Property to fail to qualify as “foreclosure
      property” within the meaning of Section 860G(a)(8) of the Code.

     

    (b)  The
      Company shall deposit all funds collected and received in connection with the
      operation of any REO Property in respect of any EMC Mortgage Loan into the
      Protected Accounts maintained by the Company.

     

    (c)  The
      Company, upon the final disposition of any REO Property in respect of any EMC
      Mortgage Loan, shall be entitled to reimbursement for any related unreimbursed
      Advances, unreimbursed Servicing Advances or Servicing Fees from Liquidation
      Proceeds received in connection with the final disposition of such REO Property;
      provided, that any such unreimbursed Advances or Servicing Fees as well as
      any
      unpaid Servicing Fees may be reimbursed or paid, as the case may be, prior
      to
      final disposition, out of any net rental income or other net amounts derived
      from such REO Property.

     

    Section
      3.12  Liquidation
      Reports. 

     

    Upon
      the
      foreclosure of any Mortgaged Property relating to an EMC Mortgage Loan or the
      acquisition thereof by the Trust Fund pursuant to a deed-in-lieu of foreclosure,
      the Company shall submit a liquidation report to the Master Servicer containing
      such information as shall be mutually acceptable to the Company and the Master
      Servicer with respect to such Mortgaged Property.

     

    Section
      3.13  Books
      and
      Records. 

     

    The
      Company shall be responsible for maintaining, and shall maintain, a complete
      set
      of books and records for the Mortgage Loans which shall be appropriately
      identified in the Company’s computer system to clearly reflect the ownership of
      the Mortgage Loans by the Trust. In particular, the Company shall maintain
      in
      its possession, available for inspection by the Securities Administrator and
      the
      Trustee and shall deliver to the Securities Administrator and the Trustee upon
      demand, evidence of compliance with all federal, state and local laws, rules
      and
      regulations. To the extent that original documents are not required for purposes
      of realization of Liquidation Proceeds or Insurance Proceeds, documents
      maintained by the Company may be in the form of microfilm or microfiche or
      such
      other reliable means of recreating original documents, including, but not
      limited to, optical imagery techniques so long as the Company complies with
      the
      requirements of Accepted Servicing Practices.

     

    The
      Company shall maintain with respect to each Mortgage Loan and shall make
      available for inspection by the Securities Administrator and the Trustee the
      related servicing file during the time such Mortgage Loan is subject to this
      Agreement and thereafter in accordance with applicable law.

     

    Payments
      on the Mortgage Loans, including any payoffs, made in accordance with the
      related Mortgage File will be entered in the Company’s set of books and records
      no more than two business days after receipt and identification, and allocated
      to principal or interest as specified in the related Mortgage File.

     

    ARTICLE
      IV

    ADMINISTRATION
      AND MASTER

    SERVICING
      OF MORTGAGE LOANS BY

    MASTER
      SERVICER

     

    Section
      4.01  Master
      Servicer. 

     

    The
      Master Servicer shall, beginning on the Closing Date, supervise, monitor and
      oversee the obligation of the Company and the related Servicer to service and
      administer the Mortgage Loans in accordance with the terms of this Agreement
      and
      the related Servicing Agreement and shall have full power and authority to
      do
      any and all things which it may deem necessary or desirable in connection with
      such master servicing and administration. In performing its obligations
      hereunder, the Master Servicer shall act in a manner consistent with Accepted
      Master Servicing Practices. Furthermore, the Master Servicer shall oversee
      and
      consult with the Company and the related Servicer as necessary from time to
      time
      to carry out the Master Servicer’s obligations hereunder, shall receive, review
      and evaluate all reports, information and other data provided to the Master
      Servicer by the Company and the related Servicer and shall cause the Company
      and
      related Servicer to perform and observe the covenants, obligations and
      conditions to be performed or observed by such Person under this Agreement
      and
      the related Servicing Agreement. The Master Servicer shall independently and
      separately monitor the Company and the related Servicer’s servicing activities
      with respect to each related Mortgage Loan, reconcile the results of such
      monitoring with such information provided in the previous sentence on a monthly
      basis and coordinate corrective adjustments to the Company’s, the related
      Servicer’s and Master Servicer’s records, and based on such reconciled and
      corrected information, the Master Servicer shall provide such information to
      the
      Securities Administrator as shall be necessary in order for it to prepare the
      statements specified in Section 6.06 and any other information and statements
      required hereunder. The Master Servicer shall reconcile the results of its
      Mortgage Loan monitoring with the actual remittances of the Company to the
      Securities Administrator and each Servicer pursuant to this Agreement and the
      related Servicing Agreement.

     

    In
      addition to the foregoing, in connection with a modification of any Mortgage
      Loan by a Servicer, if the Master Servicer is unable to enforce the obligations
      of the Servicer with respect to such modification, the Master Servicer shall
      notify the Depositor of such Servicer’s failure to comply with the terms of the
      Servicing Agreement or this Agreement. If the Servicing Agreement or this
      Agreement (in
      the
      case of the Company, as Servicer) requires
      the approval of the Master Servicer for a modification to a Mortgage Loan,
      the
      Master Servicer shall approve such modification if, based upon its receipt
      of
      written notification from the related Servicer outlining the terms of such
      modification and appropriate supporting documentation, the Master Servicer
      determines that the modification is permitted under the terms of the Servicing
      Agreement or this Agreement (in the case of the Company, as Servicer) and that
      any conditions to such modification set forth in the Servicing Agreement or
      this
      Agreement have been satisfied. Furthermore, if the Servicing Agreement or this
      Agreement (in the case of the Company, as Servicer) requires the oversight
      and
      monitoring of loss mitigation measures with respect to the related Mortgage
      Loans, the Master Servicer will monitor any loss mitigation procedure or
      recovery action related to a defaulted Mortgage Loan (to the extent it receives
      notice of such from the related Servicer) and confirm that such loss mitigation
      procedure or recovery action is initiated, conducted and concluded in accordance
      with any timeframes and any other requirements set forth in the Servicing
      Agreement or this Agreement (in the case of the Company, as Servicer), and
      the
      Master Servicer shall notify the Depositor in any case in which the Master
      Servicer believes that the related Servicer is not complying with such
      timeframes and/or other requirements.

     

    The
      Trustee shall furnish the Company, the Servicers and the Master Servicer, upon
      written request from a servicing officer, with any powers of attorney and other
      documents in form as provided to it necessary or appropriate to enable the
      Company, the Servicer and the Master Servicer to service and administer the
      related Mortgage Loans and REO Property.

     

    The
      Trustee or the Custodian on its behalf, the Company or the related Servicer
      shall provide access to the records and documentation in possession of the
      Trustee or the Custodian on its behalf, the Company or the related Servicer
      regarding the related Mortgage Loans and REO Property and the servicing thereof
      to the Certificateholders, the FDIC, and the supervisory agents and examiners
      of
      the FDIC, such access being afforded only upon reasonable prior written request
      and during normal business hours at the office of the Trustee, the Custodian,
      the Company or the related Servicer; provided, however, that, unless otherwise
      required by law, neither the Trustee, the Custodian, the Company nor the related
      Servicer shall be required to provide access to such records and documentation
      if the provision thereof would violate the legal right to privacy of any
      Mortgagor. The Trustee, the Custodian, the Company and the related Servicer
      shall allow representatives of the above entities to photocopy any of the
      records and documentation and shall provide equipment for that purpose at a
      charge that covers the Trustee’s, the Custodian’s, the Company’s or the related
      Servicer’s actual costs.

     

    The
      Trustee shall execute and deliver to the Company or the related Servicer and
      the
      Master Servicer, upon such party’s written instruction (which includes the
      documents to be signed) any court pleadings, requests for trustee’s sale or
      other appropriate documents necessary or desirable to (i) the foreclosure or
      trustee’s sale with respect to a Mortgaged Property; (ii) any legal action
      brought to obtain judgment against any Mortgagor on the Mortgage Note or
      Security Instrument; (iii) obtain a deficiency judgment against the Mortgagor;
      or (iv) enforce any other rights or remedies provided by the Mortgage Note
      or
      Security Instrument or otherwise available at law or equity.

     

    Section
      4.02  REMIC-Related
      Covenants. 

     

    For
      as
      long as each REMIC created hereunder shall exist, the Trustee and the Securities
      Administrator shall act in accordance herewith to assure continuing treatment
      of
      such REMIC as a REMIC, and the Trustee and the Securities Administrator shall
      comply with any directions of the Seller, the Company, the Servicers or the
      Master Servicer to assure such continuing treatment. In particular, the Trustee
      shall not (except as otherwise expressly permitted by this Agreement) (a) sell
      or permit the sale of all or any portion of the Mortgage Loans or of any
      investment of deposits in an Account unless such sale is as a result of a
      repurchase of the Mortgage Loans pursuant to this Agreement or the Trustee
      has
      received a REMIC Opinion addressed to the Trustee prepared at the expense of
      the
      Trust Fund; (b) other than with respect to a substitution pursuant to the
      Mortgage Loan Purchase Agreement or Section 2.03 of this Agreement, as
      applicable, accept any contribution to any REMIC after the Startup Day without
      receipt of a REMIC Opinion; or (c) acquire any assets for any REMIC other than
      any REO Property after the Startup Day without receipt of a REMIC
      Opinion.

     

    Section
      4.03  Monitoring
      of Company and Servicer. 

     

    (a)  The
      Master Servicer shall be responsible for reporting to the Trustee and the Seller
      the non-compliance by the Company and the related Servicer with its duties
      under
      this Agreement and the related Servicing Agreement. In the review of the
      Company’s and the related Servicer’s activities, the Master Servicer may rely
      upon an Officer’s Certificate of the Company and the related Servicer with
      regard to such Person’s compliance with the terms of this Agreement or the
      related Servicing Agreement. In the event that the Master Servicer, in its
      judgment, determines that the Company or the related Servicer should be
      terminated in accordance with this Agreement or the related Servicing Agreement,
      or that a notice should be sent pursuant to this Agreement or the related
      Servicing Agreement with respect to the occurrence of an event that, unless
      cured, would constitute grounds for such termination, the Master Servicer shall
      notify the Seller and the Trustee and the Master Servicer shall issue such
      notice or take such other action as it deems appropriate. 

     

    (b)  The
      Master Servicer, for the benefit of the Trustee and the Certificateholders,
      shall enforce the obligations of the Company under this Agreement and the
      related Servicer under the related Servicing Agreement, and
      shall, in the event that the Company or the related Servicer fails to perform
      its obligations in accordance with this Agreement or the related Servicing
      Agreement, subject to the preceding paragraph, terminate the rights and
      obligations of such Person thereunder and act as servicer of the related
      Mortgage Loans or to cause the Trustee to enter into a new Servicing Agreement
      with a successor Servicer selected by the Master Servicer; provided, however,
      it
      is understood and acknowledged by the parties hereto that there shall be a
      period of transition (not to exceed 90 days) before the actual servicing
      functions can be fully transferred to such successor Servicer; provided,
      however, it is understood and acknowledged by the parties hereto that there
      will
      be a period of transition (not to exceed 90 days) before the actual servicing
      functions can be fully transferred to such successor servicer. In either event,
      such enforcement, including, without limitation, the legal prosecution of
      claims, termination of the related Servicing Agreement and the pursuit of other
      appropriate remedies, shall be in such form and carried out to such an extent
      and at such time as the Master Servicer in its good faith business judgment,
      would require were it the owner of the related Mortgage Loans. The Master
      Servicer shall pay the costs of such enforcement at its own expense, subject
      to
      its right of reimbursement pursuant to the provisions of this Agreement or
      the
      related Servicing Agreement, provided that the Master Servicer shall not be
      required to prosecute or defend any legal action except to the extent that
      the
      Master Servicer shall have received reasonable indemnity for its costs and
      expenses in pursuing such action. 

     

    (c)  To
      the
      extent that the costs and expenses of the Master Servicer or related to any
      termination of a Servicer, or the enforcement or prosecution of related claims,
      rights or remedies or the appointment of a successor Servicer or the transfer
      and assumption of servicing by the Master Servicer with respect to this
      Agreement or the related Servicing Agreement (including, without limitation,
      (i)
      all legal costs and expenses and all due diligence costs and expenses associated
      with an evaluation of the potential termination of the Company or a Servicer
      as
      a result of an event of default by such Person and (ii) all costs and expenses
      associated with the complete transfer of servicing, including all servicing
      files and all servicing data and the completion, correction or manipulation
      of
      such servicing data as may be required by the successor servicer to correct
      any
      errors or insufficiencies in the servicing data or otherwise to enable the
      successor service to service the Mortgage Loans in accordance with this
      Agreement or the related Servicing Agreement) are not fully and timely
      reimbursed by the terminated Servicer, the Master Servicer shall be entitled
      to
      reimbursement of such costs and expenses from the Distribution Account, pursuant
      to Section 5.09.

     

    (d)  The
      Master Servicer shall require the Company and the related Servicer to comply
      with the remittance requirements and other obligations set forth in this
      Agreement or the related Servicing Agreement, as applicable.

     

    (e)  If
      the
      Master Servicer acts as a servicer, it will not assume liability for the
      representations and warranties of the Company or the related Servicer, if any,
      that it replaces.

     

    Section
      4.04  Fidelity
      Bond. 

     

    The
      Master Servicer, at its expense, shall maintain in effect a blanket fidelity
      bond and an errors and omissions insurance policy, affording coverage with
      respect to all directors, officers, employees and other Persons acting on such
      Master Servicer’s behalf, and covering errors and omissions in the performance
      of the Master Servicer’s obligations hereunder. The errors and omissions
      insurance policy and the fidelity bond shall be in such form and amount
      generally acceptable for entities serving as master servicers or
      trustees.

     

    Section
      4.05  Power
      to
      Act; Procedures. 

     

    The
      Master Servicer shall master service the Mortgage Loans and shall have full
      power and authority, subject to the REMIC Provisions and the provisions of
      Article XI hereof, to do any and all things that it may deem necessary or
      desirable in connection with the master servicing and administration of the
      Mortgage Loans, including but not limited to the power and authority (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, (iii) to collect any Insurance Proceeds and
      Liquidation Proceeds, and (iv) to effectuate foreclosure or other conversion
      of
      the ownership of the Mortgaged Property securing any Mortgage Loan, in each
      case, in accordance with the provisions of this Agreement and the related
      Servicing Agreement, as applicable; provided, however, that the Master Servicer
      shall not (and, consistent with its responsibilities under Section 4.03, shall
      not authorize the Company or the related Servicer to) knowingly or intentionally
      take any action, or fail to take (or fail to cause to be taken) any action
      reasonably within its control and the scope of duties more specifically set
      forth herein, that, under the REMIC Provisions, if taken or not taken, as the
      case may be, would cause REMIC I, REMIC II, REMIC III or REMIC IV to fail to
      qualify as a REMIC or result in the imposition of a tax upon the Trust Fund
      (including but not limited to the tax on prohibited transactions as defined
      in
      Section 860F(a)(2) of the Code and the tax on contributions to a REMIC set
      forth
      in Section 860G(d) of the Code) unless the Master Servicer has received an
      Opinion of Counsel (but not at the expense of the Master Servicer) to the effect
      that the contemplated action will not cause REMIC I, REMIC II, REMIC III or
      REMIC IV to fail to qualify as a REMIC or result in the imposition of a tax
      upon
      REMIC I, REMIC II, REMIC III or REMIC IV as the case may be. The Trustee shall
      furnish the Master Servicer, upon written request from a Servicing Officer,
      with
      any powers of attorney empowering the Master Servicer, the Company or the
      related Servicer to execute and deliver instruments of satisfaction or
      cancellation, or of partial or full release or discharge, and to foreclose
      upon
      or otherwise liquidate Mortgaged Property, and to appeal, prosecute or defend
      in
      any court action relating to the Mortgage Loans or the Mortgaged Property,
      in
      accordance with the related Servicing Agreement and this Agreement, and the
      Trustee shall execute and deliver such other documents, as the Master Servicer
      may request, to enable the Master Servicer to master service and administer
      the
      Mortgage Loans and carry out its duties hereunder, in each case in accordance
      with Accepted Master Servicing Practices (and the Trustee shall have no
      liability for misuse of any such powers of attorney by the Master Servicer,
      the
      Company or the related Servicer). If the Master Servicer or the Trustee has
      been
      advised that it is likely that the laws of the state in which action is to
      be
      taken prohibit such action if taken in the name of the Trustee or that the
      Trustee would be adversely affected under the “doing business” or tax laws of
      such state if such action is taken in its name, the Master Servicer shall join
      with the Trustee in the appointment of a co-trustee pursuant to Section 10.11
      hereof. In the performance of its duties hereunder, the Master Servicer shall
      be
      an independent contractor and shall not, except in those instances where it
      is
      taking action in the name of the Trust, be deemed to be the agent of the Trust.
      

     

    Section
      4.06  Due-on-Sale
      Clauses; Assumption Agreements. 

     

    To
      the
      extent provided in this Agreement or the related Servicing Agreement, to the
      extent Mortgage Loans contain enforceable due-on-sale clauses, the Master
      Servicer shall cause the Company and the related Servicer to enforce such
      clauses in accordance with this Agreement or the related Servicing Agreement.
      If
      applicable law prohibits the enforcement of a due-on-sale clause or such clause
      is otherwise not enforced in accordance with this Agreement or the related
      Servicing Agreement, and, as a consequence, a Mortgage Loan is assumed, the
      original Mortgagor may be released from liability in accordance with this
      Agreement or the related Servicing Agreement.

     

    Section
      4.07  Release
      of Mortgage Files. 

     

    (a)  Upon
      becoming aware of the payment in full of any Mortgage Loan, or the receipt
      by
      the Company or the related Servicer of a notification that payment in full
      has
      been escrowed in a manner customary for such purposes for payment to
      Certificateholders on the next Distribution Date, the Company or the related
      Servicer will, if required under the related Servicing Agreement (or if the
      Company or the related Servicer does not, the Master Servicer may), promptly
      furnish to the Custodian, on behalf of the Trustee, two copies of a
      certification substantially in the form of Exhibit G (or as otherwise provided
      in the Custodial Agreement) hereto signed by a Servicing Officer or in a
      mutually agreeable electronic format which will, in lieu of a signature on
      its
      face, originate from a Servicing Officer (which certification shall include
      a
      statement to the effect that all amounts received in connection with such
      payment that are required to be deposited in the Protected Account maintained
      by
      the Company or the Servicer pursuant to Article V or by the related Servicer
      pursuant to the related Servicing Agreement have been or will be so deposited)
      and shall request that the Custodian, on behalf of the Trustee, deliver to
      the
      Company or the related Servicer the related Mortgage File. Upon receipt of
      such
      certification and request, the Custodian, on behalf of the Trustee, shall
      promptly release the related Mortgage File to the Company or the related
      Servicer and the Trustee and Custodian shall have no further responsibility
      with
      regard to such Mortgage File. Upon any such payment in full, the Company or
      the
      related Servicer is authorized, to give, as agent for the Trustee, as the
      mortgagee under the Mortgage that secured the Mortgage Loan, an instrument
      of
      satisfaction (or assignment of mortgage without recourse, representation or
      warranty) regarding the Mortgaged Property subject to the Mortgage, which
      instrument of satisfaction or assignment, as the case may be, shall be delivered
      to the Person or Persons entitled thereto against receipt therefor of such
      payment, it being understood and agreed that no expenses incurred in connection
      with such instrument of satisfaction or assignment, as the case may be, shall
      be
      chargeable to the Protected Account.

     

    (b)  From
      time
      to time and as appropriate for the servicing or foreclosure of any Mortgage
      Loan
      and in accordance with this Agreement or the related Servicing Agreement, upon
      written instruction from such Servicer or the Master Servicer, the Trustee
      shall
      execute such documents as shall be prepared and furnished to the Trustee by
      the
      Company, the related Servicer or the Master Servicer (in form reasonably
      acceptable to the Trustee) and as are necessary to the prosecution of any such
      proceedings. The Custodian, on behalf of the Trustee, shall, upon the request
      of
      the Company, the related Servicer or the Master Servicer, and delivery to the
      Custodian, on behalf of the Trustee, of two copies of a request for release
      signed by a Servicing Officer substantially in the form of Exhibit G (or in
      a
      mutually agreeable electronic format which will, in lieu of a signature on
      its
      face, originate from a Servicing Officer), release the related Mortgage File
      held in its possession or control to the Company, the related Servicer or the
      Master Servicer, as applicable. Such trust receipt shall obligate the Company,
      the related Servicer or the Master Servicer to return the Mortgage File to
      the
      Custodian on behalf of the Trustee, when the need therefor by such Person no
      longer exists unless the Mortgage Loan shall be liquidated, in which case,
      upon
      receipt of a certificate of a Servicing Officer similar to that hereinabove
      specified, the Mortgage File shall be released by the Custodian, on behalf
      of
      the Trustee, to the Company, the related Servicer or the Master
      Servicer.

     

    Section
      4.08  Documents,
      Records and Funds in Possession of Master Servicer, Company and Servicer To
      Be
      Held for Trustee. 

     

    (a)  The
      Master Servicer shall transmit and the Company or the related Servicer (to
      the
      extent required by this Agreement or the related Servicing Agreement) shall
      transmit to the Trustee or Custodian such documents and instruments coming
      into
      the possession of such Person from time to time as are required by the terms
      hereof, or in the case of the related Servicer, the related Servicing Agreement,
      to be delivered to the Trustee or Custodian. Any funds received by the Master
      Servicer, the Company or by the related Servicer in respect of any Mortgage
      Loan
      or which otherwise are collected by the Master Servicer, the Company or by
      the
      related Servicer as Liquidation Proceeds or Insurance Proceeds in respect of
      any
      Mortgage Loan shall be held for the benefit of the Trustee and the
      Certificateholders subject to the Securities Administrator’s right to retain or
      withdraw from the Distribution Account, the Master Servicing Compensation and
      other amounts provided in this Agreement, and to the right of the Company and
      the related Servicer to retain its Servicing Fee and other amounts as provided
      in this Agreement or the related Servicing Agreement. The Master Servicer,
      the
      Company and the related Servicer shall provide access to information and
      documentation regarding the Mortgage Loans to the Trustee and, regarding the
      Mortgage Loans and their respective agents and accountants at any time upon
      reasonable request and during normal business hours, and to Certificateholders
      that are savings and loan associations, banks or insurance companies, the Office
      of Thrift Supervision, the FDIC and the supervisory agents and examiners of
      such
      Office and Corporation or examiners of any other federal or state banking or
      insurance regulatory authority if so required by applicable regulations of
      the
      Office of Thrift Supervision or other regulatory authority, such access to
      be
      afforded without charge but only upon reasonable request in writing and during
      normal business hours at the offices of the Master Servicer designated by it.
      In
      fulfilling such a request the Master Servicer shall not be responsible for
      determining the sufficiency of such information.

     

    (b)  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 or Insurance
      Proceeds, shall be held by the Master Servicer for and on behalf of the Trustee
      and the Certificateholders and shall be and remain the sole and exclusive
      property of the Trustee; provided, however, that the Master Servicer, the
      Company and the related Servicer shall be entitled to setoff against, and deduct
      from, any such funds any amounts that are properly due and payable to the Master
      Servicer or such Servicer under this Agreement or the related Servicing
      Agreement.

     

    Section
      4.09  Standard
      Hazard Insurance and Flood Insurance Policies. 

     

    (a)  For
      each
      Mortgage Loan, the Master Servicer shall enforce any obligation of the Company
      and the related Servicer under this Agreement or the related Servicing Agreement
      to maintain or cause to be maintained standard fire and casualty insurance
      and,
      where applicable, flood insurance, all in accordance with the provisions of
      this
      Agreement or the related Servicing Agreement. It is understood and agreed that
      such insurance shall be with insurers meeting the eligibility requirements
      set
      forth in this Agreement and the related Servicing Agreement and that no
      earthquake or other additional insurance is to be required of any Mortgagor
      or
      to be maintained on property acquired in respect of a defaulted loan, other
      than
      pursuant to such applicable laws and regulations as shall at any time be in
      force and as shall require such additional insurance.

     

    (b)  Pursuant
      to Sections 5.01 and 5.04 any amounts collected by the Company, the Servicers
      or
      the Master Servicer, or by the Company or the Servicers, under any insurance
      policies (other than amounts to be applied to the restoration or repair of
      the
      property subject to the related Mortgage or released to the Mortgagor in
      accordance with this Agreement or the Servicing Agreements) shall be deposited
      by the Company in its Protected Account or by the related Servicer or the Master
      Servicer into the Distribution Account, subject to withdrawal pursuant to
      Sections 5.02, 5.04 and 5.05, as applicable. Any cost incurred by the Master
      Servicer, the Company or the related Servicer in maintaining any such insurance
      if the Mortgagor defaults in its obligation to do so shall be added to the
      amount owing under the Mortgage Loan where the terms of the Mortgage Loan so
      permit; provided, however, that the addition of any such cost shall not be
      taken
      into account for purposes of calculating the distributions to be made to
      Certificateholders and shall be recoverable by the Master Servicer, the Company
      or the related Servicer pursuant to Sections 5.02, 5.04 and 5.05, as
      applicable.

     

    Section
      4.10  Presentment
      of Claims and Collection of Proceeds. 

     

    The
      Master Servicer shall (to the extent provided in this Agreement and the related
      Servicing Agreement) cause the Company or the Servicer to, prepare and present
      on behalf of the Trustee and the Certificateholders all claims under the
      Insurance Policies and take such actions (including the negotiation, settlement,
      compromise or enforcement of the insured’s claim) as shall be necessary to
      realize recovery under such policies. Any proceeds disbursed to the Master
      Servicer (or disbursed to the Company or the related Servicer and remitted
      to
      the Master Servicer) in respect of such policies, bonds or contracts shall
      be
      promptly deposited in the Distribution Account upon receipt, except that any
      amounts realized that are to be applied to the repair or restoration of the
      related Mortgaged Property as a condition precedent to the presentation of
      claims on the related Mortgage Loan to the insurer under any applicable
      Insurance Policy need not be so deposited (or remitted).

     

    Section
      4.11  Maintenance
      of the Primary Mortgage Insurance Policies. 

     

    (a)  The
      Master Servicer shall not take, or authorize the Company or the related Servicer
      (to the extent such action is prohibited under this Agreement or the related
      Servicing Agreement) to take, any action that would result in noncoverage under
      any applicable Primary Mortgage Insurance Policy of any loss which, but for
      the
      actions of the Master Servicer, the Company or the related Servicer, would
      have
      been covered thereunder. The Master Servicer shall use its best reasonable
      efforts to cause the Company and the related Servicer (to the extent required
      under this Agreement and the related Servicing Agreement) to keep in force
      and
      effect (to the extent that the Mortgage Loan requires the Mortgagor to maintain
      such insurance), primary mortgage insurance applicable to each Mortgage Loan
      (including any LPMI Policy) in accordance with the provisions of this Agreement
      and the related Servicing Agreement, as applicable. The Master Servicer shall
      not, and shall not authorize the Company or the related Servicer (to the extent
      required under this Agreement or the related Servicing Agreement) to, cancel
      or
      refuse to renew any such Primary Mortgage Insurance Policy that is in effect
      at
      the date of the initial issuance of the Mortgage Note and is required to be
      kept
      in force hereunder except in accordance with the provisions of this Agreement
      and the related Servicing Agreement, as applicable.

     

    (b)  The
      Master Servicer agrees to cause the Company and the related Servicer (to the
      extent required under this Agreement and the related Servicing Agreement) to
      present, on behalf of the Trustee and the Certificateholders, claims to the
      insurer under any Primary Mortgage Insurance Policies and, in this regard,
      to
      take such reasonable action as shall be necessary to permit recovery under
      any
      Primary Mortgage Insurance Policies respecting defaulted Mortgage Loans.
      Pursuant to Sections 5.01 and 5.05, any amounts collected by the Company or
      the
      related Servicer under any Primary Mortgage Insurance Policies shall be
      deposited by the Company in its Protected Account or by the Securities
      Administrator in the Distribution Account, subject to withdrawal pursuant to
      Section 5.02.

     

    Section
      4.12  Trustee
      to Retain Possession of Certain Insurance Policies and Documents. 

     

    The
      Trustee (or the Custodian, as directed by the Trustee), shall retain possession
      and custody of the originals (to the extent available) of any Primary Mortgage
      Insurance Policies, or certificate of insurance if applicable, and any
      certificates of renewal as to the foregoing as may be issued from time to time
      as contemplated by this Agreement. Until all amounts distributable in respect
      of
      the Certificates have been distributed in full and the Master Servicer otherwise
      has fulfilled its obligations under this Agreement, the Trustee (or its
      Custodian, if any, as directed by the Trustee) shall also retain possession
      and
      custody of each Mortgage File in accordance with and subject to the terms and
      conditions of this Agreement. The Master Servicer shall promptly deliver or
      cause to be delivered to the Trustee (or the Custodian, as directed by the
      Trustee), upon the execution or receipt thereof the originals of any Primary
      Mortgage Insurance Policies, any certificates of renewal, and such other
      documents or instruments that constitute portions of the Mortgage File that
      come
      into the possession of the Master Servicer from time to time.

     

    Section
      4.13  Realization
      Upon Defaulted Mortgage Loans. 

     

    The
      Master Servicer shall cause the Company and the related Servicer (to the extent
      required under this Agreement and the related Servicing Agreement) to foreclose
      upon, repossess or otherwise comparably convert the ownership of Mortgaged
      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, all in accordance with this Agreement or the related
      Servicing Agreement.

     

    Section
      4.14  Compensation
      for the Master Servicer. 

     

    The
      Master Servicer will be entitled to receive the Master Servicing Fee as
      compensation for its activities under this Agreement. The Master Servicer will
      also be entitled to all income and gain realized from any investment of funds
      in
      the Distribution Account for the performance of its activities hereunder. The
      Master Servicer shall be required to pay all expenses incurred by it in
      connection with its activities hereunder and shall not be entitled to
      reimbursement therefor except as provided in this Agreement. However, the
      aggregate Master Servicing Fee with respect to any Distribution Date shall
      be
      reduced by an amount equal to the Compensating Interest payable by the Master
      Servicer for such Distribution Date pursuant to Section 6.02 hereof.

     

    Section
      4.15  REO
      Property. 

     

    (a)  In
      the
      event the Trust Fund acquires ownership of any REO Property in respect of any
      related Mortgage Loan, the deed or certificate of sale shall be issued to the
      Trustee, or to its nominee, on behalf of the related Certificateholders. The
      Master Servicer shall, to the extent provided in this Agreement or the related
      Servicing Agreement, cause the Company or the related Servicer to sell, any
      REO
      Property as expeditiously as possible and in accordance with the provisions
      of
      this Agreement and the related Servicing Agreement, as applicable. Pursuant
      to
      such efforts to sell such REO Property, the Master Servicer shall cause the
      Company or the related Servicer to protect and conserve, such REO Property
      in
      the manner and to the extent required by this Agreement or the related Servicing
      Agreement, in accordance with the REMIC Provisions and in a manner that does
      not
      result in a tax on “net income from foreclosure property” or cause such REO
      Property to fail to qualify as “foreclosure property” within the meaning of
      Section 860G(a)(8) of the Code.

     

    (b)  The
      Master Servicer shall, to the extent required by this Agreement or the related
      Servicing Agreement, cause the Company or the related Servicer to deposit all
      funds collected and received in connection with the operation of any REO
      Property in the Protected Account.

     

    (c)  The
      Master Servicer and the Company or the related Servicer, upon the final
      disposition of any REO Property, shall be entitled to reimbursement for any
      related unreimbursed Advances and other unreimbursed advances as well as any
      unpaid Servicing Fees from Liquidation Proceeds received in connection with
      the
      final disposition of such REO Property; provided, that any such unreimbursed
      Monthly Advances as well as any unpaid Servicing Fees may be reimbursed or
      paid,
      as the case may be, prior to final disposition, out of any net rental income
      or
      other net amounts derived from such REO Property.

     

    (d)  To
      the
      extent provided in this Agreement or the related Servicing Agreement, the
      Liquidation Proceeds from the final disposition of the REO Property, net of
      any
      payment to the Master Servicer and the Company or the related Servicer as
      provided above shall be deposited in the Protected Account on or prior to the
      Determination Date in the month following receipt thereof and be remitted by
      wire transfer in immediately available funds to the Securities Administrator
      for
      deposit into the related Distribution Account on the next succeeding Remittance
      Date.

     

    Section
      4.16  Annual
      Statement as to Compliance. 

     

    The
      Company as a Servicer, the Master Servicer and the Securities Administrator
      shall deliver (or otherwise make available) to the Depositor and the Securities
      Administrator not later than March 15th
      of each
      calendar year beginning in 2007, an Officer’s Certificate (an “Annual Statement
      of Compliance”) stating, as to each signatory thereof, that (i) a review of the
      activities of each such party during the preceding calendar year and of its
      performance under this Agreement or other applicable servicing agreement has
      been made under such officer’s supervision and (ii) to the best of such
      officer’s knowledge, based on such review, such party has fulfilled all of its
      obligations under this Agreement or other applicable servicing agreement in
      all
      material respects throughout such year, or, if there has been a failure to
      fulfill any such obligation in any material respect, specifying each such
      failure known to such officer and the nature and status of the cure provisions
      thereof. Such Annual Statement of Compliance shall contain no restrictions
      or
      limitations on its use. The Master Servicer shall enforce the obligations of
      each Servicer, to the extent set forth in the related Servicing Agreement,
      to
      deliver a similar Annual Statement of Compliance by that Servicer to the
      Depositor and the Securities Administrator as described above as and when
      required with respect to the Master Servicer. In the event that certain
      servicing responsibilities with respect to any Mortgage Loan have been delegated
      by the Company, the Master Servicer, the Securities Administrator or a Servicer
      to a subservicer or subcontractor, each such entity shall cause such subservicer
      or subcontractor (and with respect to each Servicer, the Master Servicer shall
      enforce the obligation of such Servicer to the extent required under the related
      Servicing Agreement) to deliver a similar Annual Statement of Compliance by
      such
      subservicer or subcontractor to the Depositor and the Securities Administrator
      as described above as and when required with respect to the Master Servicer
      or
      the related Servicer (as the case may be).

     

    Failure
      of the Company to comply with this Section 4.16 (including with respect to
      the
      timeframes required herein) shall be deemed a Company Default, and the Master
      Servicer shall, in addition to whatever rights the Master Servicer may have
      under this Agreement and at law or equity or to damages, including injunctive
      relief and specific performance, upon notice immediately terminate all of the
      rights and obligations of the Company under this Agreement and in and to the
      Mortgage Loans and the proceeds thereof without compensating the Company for
      the
      same. Failure of the Master Servicer to comply with this Section 4.16 (including
      with respect to the timeframes required herein) shall be deemed an Event of
      Default, and at the written direction of the Depositor the Trustee shall, in
      addition to whatever rights the Trustee may have under this Agreement and at
      law
      or equity or to damages, including injunctive relief and specific performance,
      upon notice immediately terminate all of the rights and obligations of the
      Master Servicer under this Agreement and in and to the Mortgage Loans and the
      proceeds thereof without compensating the Master Servicer for the same. Failure
      of the Securities Administrator to comply with this Section 4.16 (including
      with
      respect to the timeframes required in this Section) which failure results in
      a
      failure to timely file the related Form 10-K, shall be deemed a default and
      the
      Trustee at the written direction of the Depositor shall, in addition to whatever
      rights the Trustee may have under this Agreement and at law or equity or to
      damages, including injunctive relief and specific performance, upon notice
      immediately terminate all of the rights and obligations of the Securities
      Administrator under this Agreement and in and to the Mortgage Loans and the
      proceeds thereof without compensating the Securities Administrator for the
      same.
      This paragraph shall supersede any other provision in this Agreement or any
      other agreement to the contrary.

     

    In
      the
      event the Company, the Master Servicer, the Securities Administrator or any
      subservicer or subcontractor engaged by either such party is terminated or
      resigns pursuant to the terms of the Agreement, or any other applicable
      agreement in the case of a subservicer or subcontractor, as the case may be,
      such party shall provide an Annual Statement of Compliance pursuant to this
      Section 4.16 or to the related section of such other applicable agreement,
      as
      the case may be, as to the performance of its obligations with respect to the
      period of time it was subject to this Agreement or any other applicable
      agreement, as the case may be notwithstanding any such termination or
      resignation.

     

    Section
      4.17  Assessments
      of Compliance and Attestation Reports. 

     

    Pursuant
      to Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation
      AB,
      each of the Company as a Servicer, the Master Servicer, the Securities
      Administrator and the Custodian (to the extent set forth in this Section) (each,
      an “Attesting Party”) at its own expense shall deliver (or otherwise make
      available) to the Master Servicer, the Securities Administrator and the
      Depositor on or before March 15th
      of each
      calendar year beginning in 2007, a report regarding such Attesting Party’s
      assessment of compliance (an “Assessment of Compliance”) with the Servicing
      Criteria during the preceding calendar year. The Assessment of Compliance,
      as
      set forth in Regulation AB, must contain the following:

     

    (a)  A
      statement by an authorized officer of such Attesting Party of its authority
      and
      responsibility for assessing compliance with the Servicing Criteria applicable
      to the related Attesting Party;

     

    (b)  A
      statement by an authorized officer that such Attesting Party used the Servicing
      Criteria attached as Exhibit N hereto, and which will also be attached to the
      Assessment of Compliance, to assess compliance with the Servicing Criteria
      applicable to the related Attesting Party;

     

    (c)  An
      assessment by such officer of the related Attesting Party’s compliance with the
      applicable Servicing Criteria for the period consisting of the preceding
      calendar year, including disclosure of any material instance of noncompliance
      with respect thereto during such period, which assessment shall be based on
      the
      activities such Attesting Party performs with respect to asset-backed securities
      transactions taken as a whole involving the related Attesting Party, that are
      backed by the same asset type as the Mortgage Loans;

     

    (d)  A
      statement that a registered public accounting firm has issued an attestation
      report on the related Attesting Party’s Assessment of Compliance for the period
      consisting of the preceding calendar year; and

     

    (e)  A
      statement as to which of the Servicing Criteria, if any, are not applicable
      to
the
      related Attesting
      Party, which statement shall be based on the activities such Attesting Party
      performs with respect to asset-backed securities transactions taken as a whole
      involving such Attesting Party, that are backed by the same asset type as the
      Mortgage Loans.

     

    Such
      report at a minimum shall address each of the Servicing Criteria specified
      on
      Exhibit N hereto which are indicated as applicable to the related Attesting
      Party.

     

    On
      or
      before March 15th
      of each
      calendar year beginning in 2007, each Attesting Party shall furnish to the
      Master Servicer, the Depositor and the Securities Administrator a report (an
      “Attestation Report”) by a registered public accounting firm that attests to,
      and reports on, the Assessment of Compliance made by the related Attesting
      Party, as required by Rules 13a-18 and 15d-18 of the Exchange Act and Item
      1122(b) of Regulation AB, which Attestation Report must be made in accordance
      with standards for attestation reports issued or adopted by the Public Company
      Accounting Oversight Board. 

     

    The
      Master Servicer shall enforce the obligation of each Servicer to deliver to
      the
      Securities Administrator, the Master Servicer and the Depositor an Assessment
      of
      Compliance and Attestation Report as and when provided in the related Servicing
      Agreement. Each of the Company, the Master Servicer and the Securities
      Administrator shall cause, and the Master Servicer shall enforce the obligation
      (as and when provided in the related Servicing Agreement) of each Servicer
      to
      cause, any subservicer and each subcontractor (to the extent such subcontractor
      is determined by the Company, the Master Servicer or the Securities
      Administrator, as applicable, to be “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB) that is engaged by the
      Company, such Servicer, the Master Servicer or the Securities Administrator,
      as
      applicable, to deliver to the Securities Administrator, the Master Servicer
      and
      the Depositor an Assessment of Compliance and Attestation Report as and when
      provided above. Such Assessment of Compliance, as to any subservicer or
      subcontractor, shall at a minimum address the applicable Servicing Criteria
      specified on Exhibit N hereto which are indicated as applicable to any “primary
      servicer” to the extent such subservicer or subcontractor is performing any
      servicing function for the party who engages it and to the extent such party
      is
      not itself addressing the Servicing Criteria related to such servicing function
      in its own Assessment of Compliance. The Securities Administrator shall confirm
      that each of the Assessments of Compliance delivered to it, taken as a whole,
      address all of the Servicing Criteria and taken individually address the
      Servicing Criteria for each party as set forth in Exhibit N and notify the
      Depositor of any exceptions. Notwithstanding the foregoing, as to any
      subcontractor, an Assessment of Compliance is not required to be delivered
      unless it is required as part of a Form 10-K with respect to the Trust
      Fund.

     

    In
      addition, for the avoidance of doubt and without duplication, the Company as
      a
      Servicer shall (and shall cause each subservicer engaged by it to) provide
      the
      following information to the Depositor and the Securities Administrator: (A)
      any
      Company Default hereunder and any subservicer event of default under the terms
      of the related Subservicing Agreement, (B) any merger, consolidation or sale
      of
      substantially all of the assets of the Company or, to the best of the Company’s
      knowledge, any such subservicer, and (C) the Company’s entry into an agreement
      with a subservicer to perform or assist in the performance of any of the
      Company’s obligations as Servicer. 

     

    In
      addition, the Company as a Servicer, shall cause each subservicer engaged by
      it
      to provide the following information to the Depositor and the Securities
      Administrator, to the extent applicable, within the timeframes that the Company
      would otherwise have to provide such information:

     

    (A)  any
      material modifications, extensions or waivers of pool asset terms, fees,
      penalties or payments during the distribution period or that have cumulatively
      become material over time (Item 1121(a)(11) of Regulation AB);

     

    (B)  material
      breaches of pool asset representations or warranties or transaction covenants
      (Item 1121(a)(12) of Regulation AB); and

     

    (C)  information
      regarding new asset-backed securities issuances backed by the same pool assets,
      any pool asset changes (such as, additions, substitutions or repurchases),
      and
      any material changes in origination, underwriting or other criteria for
      acquisition or selection of pool assets (Item 1121(a)(14) of Regulation
      AB).

     

    The
      Custodian shall deliver to the Master Servicer, the Securities Administrator
      and
      the Depositor an Assessment of Compliance and Attestation Report, as and when
      provided above, which shall at a minimum address each of the Servicing Criteria
      specified on Exhibit N hereto which are indicated as applicable to a
“custodian”. Notwithstanding the foregoing, an Assessment of Compliance or
      Attestation Report is not required to be delivered by any Custodian unless
      it is
      required as part of a Form 10-K with respect to the Trust Fund.

     

    Failure
      of the Company to comply with this Section 4.17 (including with respect to
      the
      timeframes required herein) shall be deemed a Company Default, and the Master
      Servicer shall, in addition to whatever rights the Master Servicer may have
      under this Agreement and at law or equity or to damages, including injunctive
      relief and specific performance, upon notice immediately terminate all of the
      rights and obligations of the Company under this Agreement and in and to the
      Mortgage Loans and the proceeds thereof without compensating the Company for
      the
      same. Failure of the Master Servicer to comply with this Section 4.17 (including
      with respect to the timeframes required herein) shall
      constitute an
      Event
      of Default, and at the written direction of the Depositor the Trustee shall,
      in
      addition to whatever rights the Trustee may have under this Agreement and at
      law
      or equity or to damages, including injunctive relief and specific performance,
      upon notice immediately terminate all of the rights and obligations of the
      Master Servicer under this Agreement and in and to the Mortgage Loans and the
      proceeds thereof without compensating the Master Servicer for the same (but
      subject to the Master Servicer’s rights to payment of any Master Servicing
      Compensation and reimbursement of all amounts for which it is entitled to be
      reimbursed prior to the date of termination). Failure of the Securities
      Administrator to comply with this Section 4.17 (including with respect to the
      timeframes required in this Section) which failure results in a failure to
      timely file the related Form 10-K, shall constitute a default and at the written
      direction of the Depositor the Trustee shall, in addition to whatever rights
      the
      Trustee may have under this Agreement and at law or equity or to damages,
      including injunctive relief and specific performance, upon notice immediately
      terminate all of the rights and obligations of the Securities Administrator
      under this Agreement and in and to the Mortgage Loans and the proceeds thereof
      without compensating the Securities Administrator for the same (but subject
      to
      the Securities Administrator’s right to reimbursement of all amounts for which
      it is entitled to be reimbursed prior to the date of termination). This
      paragraph shall supersede any other provision in this Agreement or any other
      agreement to the contrary.

     

    In
      the
      event the Company, the Master Servicer, the Custodian, the Securities
      Administrator or any subservicer or subcontractor engaged by any such party
      is
      terminated, assigns its rights and obligations under, or resigns pursuant to,
      the terms of the Agreement, the Custodial Agreement, or any other applicable
      agreement in the case of a subservicer or subcontractor, as the case may be,
      such party shall provide an Assessment of Compliance and cause to be provided
      an
      Attestation Report pursuant to this Section 4.17 or to the related section
      of
      such other applicable agreement, as the case may be, notwithstanding any such
      termination, assignment or resignation.

     

    Section
      4.18  Reports
      Filed with Securities and Exchange Commission.

     

    (a)  (i)
      (A)
      Within
      15 days after each Distribution Date (subject to permitted exceptions under
      the
      Exchange Act), the Securities Administrator shall, in accordance with industry
      standards, prepare and file with the Commission via the Electronic Data
      Gathering and Retrieval System (“EDGAR”), a Distribution Report on Form 10-D,
      signed by the Master Servicer, with a copy of the Monthly Statement to be
      furnished by the Securities Administrator to the Certificateholders for such
      Distribution Date attached thereto; provided that, the Securities Administrator
      shall have received no later than five (5) calendar days after the related
      Distribution Date, all information required to be provided to the Securities
      Administrator as described in clause (a)(iv) below. Any disclosure that is
      in
      addition to the Monthly Statement and that is required to be included on Form
      10-D (“Additional Form 10-D Disclosure”) shall
      be
      reported by the parties set forth on Exhibit O to the Securities Administrator
      and the Depositor, pursuant to the paragraph immediately below, and approved
      for
      inclusion by the Depositor, and the Securities Administrator will have no duty
      or liability for any failure hereunder to determine or prepare any Additional
      Form 10-D Disclosure absent such reporting (other than in the case where the
      Securities Administrator is the reporting party as set forth in Exhibit O)
      and
      approval.

     

    (B)  Within
      five (5) calendar days after the related Distribution Date, (i) the parties
      set
      forth in Exhibit O shall be required to provide, and the Master Servicer shall
      enforce the obligation of each Servicer (to the extent provided in the related
      Servicing Agreement) to provide, pursuant to Section 4.18(a)(iv) below, to
      the
      Securities Administrator and the Depositor, to the extent known by a responsible
      officer thereof, in EDGAR-compatible format, or in such other format as
      otherwise agreed upon by the Securities Administrator and the Depositor and
      such
      party, the form and substance of any Additional Form 10-D Disclosure, if
      applicable, and (ii) the Depositor will approve, as to form and substance,
      or
      disapprove, as the case may be, the inclusion of the Additional Form 10-D
      Disclosure on Form 10-D. The Depositor shall be responsible for any reasonable
      fees and expenses assessed or incurred by the Securities Administrator in
      connection with including any Additional Form 10-D Disclosure on Form 10-D
      pursuant to this Section.

     

    (C)  After
      preparing the Form 10-D, the Securities Administrator shall forward
      electronically a copy of the Form 10-D to the Depositor (in the case of any
      Additional 10-D Disclosure and otherwise if requested by the Depositor) and
      the
      Master Servicer for review. Within
      two Business Days after receipt of such copy, but no later than the 12th
      calendar day after the Distribution Date (provided that, the Securities
      Administrator forwards a copy of the Form 10-D no later than the 10th
      calendar
      day after the Distribution Date), the Depositor shall notify the Securities
      Administrator in writing (which may be furnished electronically) of any changes
      to or approval of such Form 10-D. In the absence of receipt of any written
      changes or approval, the Securities Administrator shall be entitled to assume
      that such Form 10-D is in final form and the Securities Administrator may
      proceed with the execution and filing of the Form 10-D. No later than the 13th
      calendar day after the related Distribution Date, a duly authorized officer
      of
      the Master Servicer shall sign the Form 10-D and, in the case where the Master
      Servicer and the Securities Administrator are not affiliated, return an
      electronic or fax copy of such signed Form 10-D (with an original executed
      hard
      copy to follow by overnight mail) to the Securities Administrator. If a Form
      10-D cannot be filed on time or if a previously filed Form 10-D needs to be
      amended, the Securities Administrator shall follow the procedures set forth
      in
      Section 4.18(a)(v)(B). Promptly (but no later than one (1) Business Day) after
      filing with the Commission, the Securities Administrator shall make available
      on
      its internet website identified in Section 6.06 a final executed copy of each
      Form 10-D filed by the Securities Administrator. The signing party at the Master
      Servicer can be contacted as set forth in Section 12.05. Form 10-D requires
      the
      registrant to indicate (by checking “yes” or “no”) that it (1) has filed all
      reports required to be filed by Section 13 or 15(d) of the Exchange Act during
      the preceding 12 months (or for such shorter period that the registrant was
      required to file such reports), and (2) has been subject to such filing
      requirements for the past 90 days. The Depositor shall notify the Securities
      Administrator in writing, no later than the fifth calendar day after the related
      Distribution Date with respect to the filing of a report on Form 10-D if the
      answer to the questions should be “no”. The Securities Administrator shall be
      entitled to rely on the representations in Section 2.04(vi) and in any such
      notice in preparing, executing and/or filing any such report. The parties to
      this Agreement acknowledge that the performance by the Master Servicer and
      the
      Securities Administrator of their respective duties under Sections 4.18(a)(i)
      and (v) related to the timely preparation, execution and filing of Form 10-D
      is
      contingent upon such parties strictly observing all applicable deadlines in
      the
      performance of their duties under such Sections. Neither the Master Servicer
      nor
      the Securities Administrator shall have any liability for any loss, expense,
      damage, claim arising out of or with respect to any failure to properly prepare,
      execute and/or timely file such Form 10-D, where such failure results from
      a
      party’s failure to deliver, on a timely basis, any information from such party
      needed to prepare, arrange for execution or file such Form 10-D, not resulting
      from its own negligence, bad faith or willful misconduct. 

     

    (ii)  (A)
      Within four (4) Business Days after the occurrence of an event requiring
      disclosure on Form 8-K (each such event, a “Reportable Event”), the Securities
      Administrator shall prepare and file, on behalf of the Trust, at the direction
      of the Depositor, any Form 8-K, as required by the Exchange Act; provided that,
      the Depositor shall file the initial Form 8-K in connection with the issuance
      of
      the Certificates. Any disclosure or information related to a Reportable Event
      or
      that is otherwise required to be included on Form 8-K (“Form 8-K Disclosure
      Information”) shall be, pursuant to the paragraph immediately below, reported by
      the parties set forth on Exhibit O to the Securities Administrator and the
      Depositor and directed and approved for inclusion by the Depositor pursuant
      to
      the following paragraph, and the Securities Administrator will have no duty
      or
      liability for any failure hereunder to determine or prepare any Form 8-K
      Disclosure Information absent such reporting (other than in the case where
      the
      Securities Administrator is the reporting party as set forth in Exhibit O)
      and
      approval.

     

    (B)  For
      so
      long as the Trust is subject to the Exchange Act reporting requirements, (i)
      no
      later than the close of business on the 2nd Business Day after the occurrence
      of
      a Reportable Event the parties set forth in Exhibit O shall be required pursuant
      to Section 4.18(a)(iv) below to provide, and the Master Servicer shall enforce
      the obligation of each Servicer (to the extent provided in the related Servicing
      Agreement) to provide, to the Securities Administrator and the Depositor, to
      the
      extent known by a responsible officer thereof, in EDGAR-compatible format,
      or in
      such other form as otherwise agreed upon by the Securities Administrator and
      the
      Depositor and such party, the form and substance of any Form 8-K Disclosure
      Information, if applicable, and (ii) the Depositor shall approve, as to form
      and
      substance, or disapprove, as the case may be, the inclusion of the Form 8-K
      Disclosure Information on Form 8-K. The Depositor shall be responsible for
      any
      reasonable fees and expenses assessed or incurred by the Securities
      Administrator in connection with including any Form 8-K Disclosure Information
      on Form 8-K pursuant to this Section. 

     

    (C)  After
      preparing the Form 8-K, the Securities Administrator shall forward
      electronically a copy of the Form 8-K to the Depositor and the Master Servicer
      for review. No later than the close of business New York City time on the 3rd
      Business Day after the Reportable Event, or in the case where the Master
      Servicer and Securities Administrator are affiliated, no later than noon New
      York City time on the 4th
      Business
      Day after the Reportable Event, a duly authorized officer of the Master Servicer
      shall sign the Form 8-K and, in the case where the Master Servicer and the
      Securities Administrator are not affiliated, return an electronic or fax copy
      of
      such signed Form 8-K (with an original executed hard copy to follow by overnight
      mail) to the Securities Administrator. Promptly, but no later than the close
      of
      business on the 3rd Business Day after the Reportable Event (provided that,
      the
      Securities Administrator forwards a copy of the Form 8-K no later than noon
      New
      York time on the third Business Day after the Reportable Event), the Depositor
      shall notify the Securities Administrator in writing (which may be furnished
      electronically) of any changes to or approval of such Form 8-K. In the absence
      of receipt of any written changes or approval, the Securities Administrator
      shall be entitled to assume that such Form 8-K is in final form and the
      Securities Administrator may proceed with the execution and filing of the Form
      8-K. If a Form 8-K cannot be filed on time or if a previously filed Form 8-K
      needs to be amended, the Securities Administrator shall follow the procedures
      set forth in Section 4.18(a)(v)(B). Promptly (but no later than one (1) Business
      Day) after filing with the Commission, the Securities Administrator shall,
      make
      available on its internet website a final executed copy of each Form 8-K filed
      by the Securities Administrator. The signing party at the Master Servicer can
      be
      contacted as set forth in Section 12.05. The parties to this Agreement
      acknowledge that the performance by Master Servicer and the Securities
      Administrator of their respective duties under this Section 4.18(a)(ii) related
      to the timely preparation, execution and filing of Form 8-K is contingent upon
      such parties strictly observing all applicable deadlines in the performance
      of
      their duties under this Section 4.18(a)(ii). Neither the Master Servicer nor
      the
      Securities Administrator shall have any liability for any loss, expense, damage,
      claim arising out of or with respect to any failure to properly prepare, execute
      and/or timely file such Form 8-K, where such failure results from a party’s
      failure to deliver, on a timely basis, any information from such party needed
      to
      prepare, arrange for execution or file such Form 8-K, not resulting from its
      own
      negligence, bad faith or willful misconduct.

     

    (iii)  (A)
      On or
      prior to the 90th day after the end of each fiscal year of the Trust or such
      earlier date as may be required by the Exchange Act (the “10-K Filing Deadline”)
      (it being understood that the fiscal year for the Trust ends on December 31st
      of
      each year), commencing in March 2007, the Securities Administrator shall prepare
      and file on behalf of the Trust a Form 10-K, in form and substance as required
      by the Exchange Act. Each such Form 10-K shall include the following items,
      in
      each case to the extent they have been delivered to the Securities Administrator
      within the applicable time frames set forth in this Agreement, (I) an annual
      compliance statement for the
      Company as a Servicer,
      the
      Master Servicer, each Servicer, the Securities Administrator and any subservicer
      or subcontractor, as applicable, as described under Section 4.16, (II)(A) the
      annual reports on assessment of compliance with Servicing Criteria for the
      Company as a Servicer, each Servicer, the Master Servicer, each subservicer
      and
      subcontractor participating in the servicing function, the Securities
      Administrator and the Custodian, as described under Section 4.17, and (B) if
      any
      such report on assessment of compliance with Servicing Criteria described under
      Section 4.17 identifies any material instance of noncompliance, disclosure
      identifying such instance of noncompliance, or if any such report on assessment
      of compliance with Servicing Criteria described under Section 4.17 is not
      included as an exhibit to such Form 10-K, disclosure that such report is not
      included and an explanation why such report is not included, (III)(A) the
      registered public accounting firm attestation report for the Company, each
      Servicer, the Master Servicer, the Securities Administrator, each subservicer,
      each subcontractor, as applicable, and the Custodian, as described under Section
      4.17, and (B) if any registered public accounting firm attestation report
      described under Section 4.17 identifies any material instance of noncompliance,
      disclosure identifying such instance of noncompliance, or if any such registered
      public accounting firm attestation report is not included as an exhibit to
      such
      Form 10-K, disclosure that such report is not included and an explanation why
      such report is not included, and (IV) a Sarbanes-Oxley Certification as
      described in Section 4.18(a)(iii)(D) below (provided, however, that the
      Securities Administrator, at its discretion, may omit from the Form 10-K any
      annual compliance statement, assessment of compliance or attestation report
      that
      is not required to be filed with such Form 10-K pursuant to Regulation AB).
      Any
      disclosure or information in addition to (I) through (IV) above that is required
      to be included on Form 10-K (“Additional Form 10-K Disclosure”) shall be
      reported by the parties set forth on Exhibit O to the Securities Administrator
      and the Depositor and, pursuant to the paragraph immediately below, approved
      for
      inclusion by the Depositor, and the Securities Administrator will have no duty
      or liability for any failure hereunder to determine or prepare any Additional
      Form 10-K Disclosure absent such reporting (other than in the case where the
      Securities Administrator is the reporting party as set forth in Exhibit O)
      and
      approval.

     

    (B)  No
      later
      than March 15th
      of each
      year that the Trust is subject to the Exchange Act reporting requirements,
      commencing in 2007, (i) the parties set forth in Exhibit O shall be required
      to
      provide, and the Master Servicer shall enforce the obligation of each Servicer
      (to the extent provided in the related Servicing Agreement) to provide, pursuant
      to Section 4.18(a)(iv) below to the Securities Administrator and the Depositor,
      to the extent known by a responsible officer thereof, in EDGAR-compatible
      format, or in such other format as otherwise agreed upon by the Securities
      Administrator and the Depositor and such party, the form and substance of any
      Additional Form 10-K Disclosure, if applicable, and (ii) the Depositor will
      approve, as to form and substance, or disapprove, as the case may be, the
      inclusion of the Additional Form 10-K Disclosure on Form 10-K. The Depositor
      shall be responsible for any reasonable fees and expenses assessed or incurred
      by the Securities Administrator in connection with including any Additional
      Form
      10-K Disclosure on Form 10-K pursuant to this Section.

     

    (C)  After
      preparing the Form 10-K, the Securities Administrator shall forward
      electronically a copy of the Form 10-K to the Depositor (only in the case where
      such Form 10-K includes Additional Form 10-K Disclosure and otherwise if
      requested by the Depositor) and the Master Servicer for review. Within three
      Business Days after receipt of such copy, but no later than March 25th
      (provided that, the Securities Administrator forwards a copy of the Form 10-K
      no
      later than the third Business Day prior to March 25th), the Depositor shall
      notify the Securities Administrator in writing (which may be furnished
      electronically) of any changes to or approval of such Form 10-K. In the absence
      of receipt of any written changes or approval, the Securities Administrator
      shall be entitled to assume that such Form 10-K is in final form and the
      Securities Administrator may proceed with the execution and filing of the Form
      10-K. No later than the close of business Eastern Standard time on the 4th
      Business Day prior to the 10-K Filing Deadline, an officer of the Master
      Servicer in charge of the master servicing function shall sign the Form 10-K
      and, in the case where the Master Servicer and the Securities Administrator
      are
      unaffiliated, return an electronic or fax copy of such signed Form 10-K (with
      an
      original executed hard copy to follow by overnight mail) to the Securities
      Administrator. If a Form 10-K cannot be filed on time or if a previously filed
      Form 10-K needs to be amended, the Securities Administrator will follow the
      procedures set forth in Section 4.18(a)(v)(B). Promptly (but no later than
      one
      (1) Business Day) after filing with the Commission, the Securities Administrator
      shall make available on its internet website a final executed copy of each
      Form
      10-K filed by the Securities Administrator. The signing party at the Master
      Servicer can be contacted as set forth in Section 12.05. Form 10-K requires
      the
      registrant to indicate (by checking “yes” or “no”) that it (1) has filed all
      reports required to be filed by Section 13 or 15(d) of the Exchange Act during
      the preceding 12 months (or for such shorter period that the registrant was
      required to file such reports), and (2) has been subject to such filing
      requirements for the past 90 days. The Depositor shall notify the Securities
      Administrator in writing, no later than March 15th of each year in which the
      Trust is subject to the requirements of the Exchange Act with respect to the
      filing of a report on Form 10-K, if the answer to the questions should be “no”.
      The Securities Administrator shall be entitled to rely on the representations
      in
      Section 2.04(vi) and in any such notice in preparing, executing and/or filing
      any such report. The parties to this Agreement acknowledge that the performance
      by the Master Servicer and the Securities Administrator of their respective
      duties under Sections 4.18(a)(iv) and (v) related to the timely preparation,
      execution and filing of Form 10-K is contingent upon such parties strictly
      observing all applicable deadlines in the performance of their duties under
      such
      Sections and Sections 4.16 and Section 4.17. Neither the Master Servicer nor
      the
      Securities Administrator shall have any liability for any loss, expense, damage,
      claim arising out of or with respect to any failure to properly prepare, execute
      and/or timely file such Form 10-K, where such failure results from the failure
      of any party hereto to deliver on a timely basis, any information needed to
      prepare, arrange for execution or file such Form 10-K. 

     

    (D)  Each
      Form
      10-K shall include a certification (the “Sarbanes-Oxley Certification”) required
      to be included therewith pursuant to the Sarbanes-Oxley Act which shall be
      signed by the Certifying Person and delivered to the Securities Administrator
      no
      later than March 15th
      of each
      year in which the Trust is subject to the reporting requirements of the Exchange
      Act. The Master Servicer shall cause any Servicer, and any subservicer or
      subcontractor engaged by it to, provide to the Person who signs the
      Sarbanes-Oxley Certification (the “Certifying Person”), by March 10th of each
      year in which the Trust is subject to the reporting requirements of the Exchange
      Act (or such other date specified in the related Servicing Agreement) and
      otherwise within a reasonable period of time upon request, a certification
      (each, a “Back-Up Certification”), in the form attached hereto as Exhibit K,
      upon which the Certifying Person, the entity for which the Certifying Person
      acts as an officer, and such entity’s officers, directors and Affiliates
      (collectively with the Certifying Person, “Certification Parties”) can
      reasonably rely. In addition, the Company as a Servicer and, in the case where
      the Master Servicer and Securities Administrator are not affiliated, the
      Securities Administrator shall sign a Back-Up Certification substantially in
      the
      form of Exhibit V; provided, however, that the Company and the Securities
      Administrator shall not be required to undertake an analysis of any accountant’s
      report attached as an exhibit to the Form 10-K. An officer of the Master
      Servicer in charge of the master servicing function shall serve as the
      Certifying Person on behalf of the Trust. Such officer of the Certifying Person
      can be contacted as set forth in Section 12.05.

     

    (iv)  With
      respect to any Additional Form 10-D Disclosure, Additional Form 10-K Disclosure
      or any Form 8-K Disclosure Information (collectively, the “Additional
      Disclosure”) relating to the Trust Fund, the Securities Administrator’s
      obligation to include such Additional Information in the applicable Exchange
      Act
      report is subject to receipt from the entity that is indicated in Exhibit O
      as
      the responsible party for providing that information, if other than the
      Securities Administrator, as and when required as described in Section
      4.18(a)(i) through (iii) above. Such Additional Disclosure shall be accompanied
      by a notice substantially in the form of Exhibit P. Each of the Company as
      a
      Servicer, the Master Servicer, the Seller, the Securities Administrator and
      the
      Depositor hereby agrees to notify and provide, and the Master Servicer shall
      enforce the obligation (to the extent provided in the related Servicing
      Agreement) of each Servicer to notify and provide, to the extent known to the
      Company as a Servicer, the Master Servicer, the Seller, the Securities
      Administrator and the Depositor all Additional Disclosure relating to the Trust
      Fund, with respect to which such party is indicated in Exhibit O as the
      responsible party for providing that information. The Depositor shall be
      responsible for any reasonable fees and expenses assessed or incurred by the
      Securities Administrator in connection with including any Additional Disclosure
      information pursuant to this Section.

     

    So
      long
      as the Depositor is subject to the filing requirements of the Exchange Act
      with
      respect to the Trust Fund, the Trustee shall notify the Securities Administrator
      and the Depositor of any bankruptcy or receivership with respect to the Trustee
      or of any proceedings of the type described under Item 1117 of Regulation AB
      that have occurred as of the related Due Period, together with a description
      thereof, no later than the date on which such information is required of other
      parties hereto as set forth under this Section 4.18. In addition, the Trustee
      shall notify the Securities Administrator and the Depositor of any affiliations
      or relationships that develop after the Closing Date between the Trustee and
      the
      Depositor, the Seller, the Securities Administrator, the Master Servicer or
      the
      Custodian of the type described under Item 1119 of Regulation AB, together
      with
      a description thereof, no later than March 15 of each year that the trust is
      subject to the Exchange Act reporting requirements, commencing in 2007. Should
      the identification of any of the Depositor, the Seller, the Securities
      Administrator, the Master Servicer or the Custodian change, the Depositor shall
      promptly notify the Trustee.

     

    (v)  (A)
      On or
      prior to January 30th of the first year in which the Securities Administrator
      is
      able to do so under applicable law, the Securities Administrator shall prepare
      and file a Form 15 relating to the automatic suspension of reporting in respect
      of the Trust under the Exchange Act. 

     

    (B)  In
      the
      event that the Securities Administrator is unable to timely file with the
      Commission all or any required portion of any Form 8-K, 10-D or 10-K required
      to
      be filed by this Agreement because required disclosure information was either
      not delivered to it or delivered to it after the delivery deadlines set forth
      in
      this Agreement or for any other reason, the Securities Administrator shall
      promptly notify the Depositor and the Master Servicer. In the case of Form
      10-D
      and 10-K, the Depositor, the Master Servicer and the Securities Administrator
      shall cooperate to prepare and file a Form 12b-25 and a 10-DA and 10-KA as
      applicable, pursuant to Rule 12b-25 of the Exchange Act. In the case of Form
      8-K, the Securities Administrator will, upon receipt of all required Form 8-K
      Disclosure Information and upon the approval and direction of the Depositor,
      include such disclosure information on the next Form 10-D. In the event that
      any
      previously filed Form 8-K, 10-D or 10-K needs to be amended, and such amendment
      relates to any Additional Disclosure, the Securities Administrator shall notify
      the Depositor and the parties affected thereby and such parties will cooperate
      to prepare any necessary Form 8-K, 10-DA or 10-KA. Any Form 15, Form 12b-25
      or
      any amendment to Form 8-K, 10-D or 10-K shall be signed by an appropriate
      officer of the Master Servicer. The parties hereto acknowledge that the
      performance by the Master Servicer and the Securities Administrator of their
      respective duties under this Section 4.18(a)(v) related to the timely
      preparation, execution and filing of Form 15, a Form 12b-25 or any amendment
      to
      Form 8-K, 10-D or 10-K is contingent upon the Master Servicer and the Depositor
      timely performing their duties under this Section. Neither the Master Servicer
      nor the Securities Administrator shall have any liability for any loss, expense,
      damage, claim arising out of or with respect to any failure to properly prepare,
      execute and/or timely file any such Form 15, Form 12b-25 or any amendments
      to
      Form 8-K, 10-D or 10-K, where such failure results from a party’s failure to
      deliver, on a timely basis, any information from such party needed to prepare,
      arrange for execution or file such Form 15, Form 12b-25 or any amendments to
      Form 8-K, 10-D or 10-K.

     

    The
      Depositor agrees to promptly furnish to the Securities Administrator, from
      time
      to time upon request, such further information, reports and financial statements
      within its control related to this Agreement, the Mortgage Loans as the
      Securities Administrator reasonably deems appropriate to prepare and file all
      necessary reports with the Commission. The Securities Administrator shall have
      no responsibility to file any items other than those specified in this Section
      4.18; provided, however, the Securities Administrator shall cooperate with
      the
      Depositor in connection with any additional filings with respect to the Trust
      Fund as the Depositor deems necessary under the Exchange Act. Fees and expenses
      incurred by the Securities Administrator in connection with this Section 4.18
      shall not be reimbursable from the Trust Fund.

     

    (b)  The
      Securities Administrator shall indemnify and hold harmless, the Company, the
      Depositor and the Master Servicer and each of its officers, directors and
      affiliates from and against any losses, damages, penalties, fines, forfeitures,
      reasonable and necessary legal fees and related costs, judgments and other
      costs
      and expenses arising out of or based upon a breach of the Securities
      Administrator’s obligations under Sections 4.16, 4.17 and 4.18 or the Securities
      Administrator’s negligence, bad faith or willful misconduct in connection
      therewith. In addition, the Securities Administrator shall indemnify and hold
      harmless the Depositor and the Master Servicer and each of their respective
      officers, directors and affiliates from and against any losses, damages,
      penalties, fines, forfeitures, reasonable and necessary legal fees and related
      costs, judgments and other costs and expenses arising out of or based upon
      (i)
      any untrue statement or alleged untrue statement of any material fact contained
      in any Back-Up Certification, any Annual Statement of Compliance, any Assessment
      of Compliance or any Additional Disclosure provided by the Securities
      Administrator on its behalf or on behalf of any subservicer or subcontractor
      engaged by the Securities Administrator pursuant to Section 4.16, 4.17 or 4.18
      (the
      “Securities Administrator Information”), or (ii) any omission or 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 in
      which
      they were made, not misleading; provided, by way of clarification, that this
      paragraph shall be construed solely by reference to the Securities Administrator
      Information and not to any other information communicated in connection with
      the
      Certificates, without regard to whether the Securities Administrator Information
      or any portion thereof is presented together with or separately from such other
      information.

     

    The
      Depositor shall indemnify and hold harmless the Securities Administrator and
      the
      Master Servicer and each of its officers, directors and affiliates from and
      against any losses, damages, penalties, fines, forfeitures, reasonable and
      necessary legal fees and related costs, judgments and other costs and expenses
      arising out of or based upon a breach of the obligations of the Depositor under
      Sections 4.16, 4.17 and 4.18 or the Depositor’s negligence, bad faith or willful
      misconduct in connection therewith. In addition, the Depositor shall indemnify
      and hold harmless the Master Servicer, the Securities Administrator and each
      of
      their respective officers, directors and affiliates from and against any losses,
      damages, penalties, fines, forfeitures, reasonable and necessary legal fees
      and
      related costs, judgments and other costs and expenses arising out of or based
      upon (i) any untrue statement or alleged untrue statement of any material fact
      contained in any Additional Disclosure provided by the Depositor that is
      required to be filed pursuant to this Section 4.18 (the
      “Depositor Information”),
      or
(ii)
      any
      omission or 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 in which they were made, not misleading; provided, by way of
      clarification, that this paragraph shall be construed solely by reference to
      the
      Depositor Information that is required to be filed and not to any other
      information communicated in connection with the Certificates, without regard
      to
      whether the Depositor Information or any portion thereof is presented together
      with or separately from such other information.

     

    The
      Master Servicer shall indemnify and hold harmless the Company, the Securities
      Administrator and the Depositor and each of its respective officers, directors
      and affiliates from and against any losses, damages, penalties, fines,
      forfeitures, reasonable and necessary legal fees and related costs, judgments
      and other costs and expenses arising out of or based upon a breach of the
      obligations of the Master Servicer under Sections 4.16, 4.17 and 4.18 or the
      Master Servicer’s negligence, bad faith or willful misconduct in connection
      therewith. In addition, the Master Servicer shall indemnify and hold harmless
      the Depositor and each of its officers, directors and affiliates from and
      against any losses, damages, penalties, fines, forfeitures, reasonable and
      necessary legal fees and related costs, judgments and other costs and expenses
      arising out of or based upon (i) any untrue statement or alleged untrue
      statement of any material fact contained in any Annual Statement of Compliance,
      any Assessment of Compliance or any Additional Disclosure provided by the Master
      Servicer on its behalf or on behalf of any subservicer or subcontractor engaged
      by the Master Servicer pursuant to Section 4.16, 4.17 or 4.18 (the
      “Master Servicer Information”), or (ii) any omission or 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 in which they were made,
      not misleading; provided, by way of clarification, that this paragraph shall
      be
      construed solely by reference to the Master Servicer Information and not to
      any
      other information communicated in connection with the Certificates, without
      regard to whether the Master Servicer Information or any portion thereof is
      presented together with or separately from such other information.

     

    The
      Company shall indemnify and hold harmless the Depositor, the Securities
      Administrator and the Master Servicer and each of its officers, directors and
      affiliates from and against any losses, damages, penalties, fines, forfeitures,
      reasonable and necessary legal fees and related costs, judgments and other
      costs
      and expenses arising out of or based upon a breach of the obligations of the
      Company under Sections 4.16, 4.17 and 4.18 or the Company’s negligence, bad
      faith or willful misconduct in connection therewith including any failure by
      the
      Company to identify any subcontractor “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB. In addition, the Company
      shall
      indemnify and hold harmless the Depositor and the Master Servicer and each
      of
      their respective officers, directors and affiliates and the Master Servicer
      from
      and against any losses, damages, penalties, fines, forfeitures, reasonable
      and
      necessary legal fees and related costs, judgments and other costs and expenses
      arising out of or based upon (i) any untrue statement or alleged untrue
      statement of any material fact contained in any Back-Up Certification, any
      Annual Statement of Compliance, any Assessment of Compliance or any Additional
      Disclosure provided by the Company on its behalf or on behalf of any subservicer
      or subcontractor pursuant to Section 4.16, 4.17 or 4.18 (the
      “Company Information”), (ii) any breach by the Company of a representation,
      warranty or covenant set forth in Section 2.03(a)(vii) and Section
      2.03(b)(i-iii) and (iii) any omission or 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 in which they were made, not misleading;
      provided, by way of clarification, that this paragraph shall be construed solely
      by reference to the Company Information and not to any other information
      communicated in connection with the Certificates, without regard to whether
      the
      Company Information or any portion thereof is presented together with or
      separately from such other information.

     

    If
      the
      indemnification provided for herein is unavailable or insufficient to hold
      harmless the Company, the Depositor, the Securities Administrator or the Master
      Servicer, as applicable, then the defaulting party, in connection with any
      conduct for which it is providing indemnification under this Section 4.18(b),
      agrees that it shall contribute to the amount paid or payable by the other
      parties as a result of the losses, claims, damages or liabilities of the other
      party in such proportion as is appropriate to reflect the relative fault and
      the
      relative benefit of the respective parties. 

     

    The
      indemnification provisions set forth in this Section 4.18(b) shall survive
      the
      termination of this Agreement or the termination of any party to this
      Agreement.

     

    (c)  Failure
      of the Company to comply with this Section 4.18 (including with respect to
      the
      timeframes required herein) shall be deemed a Company Default, and the Master
      Servicer shall, in addition to whatever rights the Master Servicer may have
      under this Agreement and at law or equity or to damages, including injunctive
      relief and specific performance, upon notice immediately terminate all of the
      rights and obligations of the Company under this Agreement and in and to the
      Mortgage Loans and the proceeds thereof without compensating the Company for
      the
      same. Failure of the Master Servicer to comply with this Section 4.18 (including
      with respect to the timeframes required herein) shall, constitute an Event
      of
      Default, and at the written direction of the Depositor the Trustee shall, in
      addition to whatever rights the Trustee may have under this Agreement and at
      law
      or equity or to damages, including injunctive relief and specific performance,
      upon notice immediately terminate all of the rights and obligations of the
      Master Servicer under this Agreement and in and to the Mortgage Loans and the
      proceeds thereof without compensating the Master Servicer for the same (but
      subject to the Master Servicer rights to payment of any Master Servicing
      Compensation and reimbursement of all amounts for which it is entitled to be
      reimbursed prior to the date of termination). Failure of the Securities
      Administrator to comply with this Section 4.18 (including with respect to the
      timeframes required in this Section) which failure results in a failure to
      timely file the related Form 10-K, shall, constitute a default and at the
      written direction of the Depositor the Trustee shall, in addition to whatever
      rights the Trustee may have under this Agreement and at law or equity or to
      damages, including injunctive relief and specific performance, upon notice
      immediately terminate all of the rights and obligations of the Securities
      Administrator under this Agreement and in and to the Mortgage Loans and the
      proceeds thereof without compensating the Securities Administrator for the
      same
      (but subject to the Securities Administrator’s right to reimbursement of all
      amounts for which it is entitled to be reimbursed prior to the date of
      termination). This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary. In connection with the
      termination of the Master Servicer or the Securities Administrator pursuant
      to
      this Section 4.18(d), the Trustee shall be entitled to reimbursement of all
      costs and expenses associated with such termination to the extent set forth
      in
      Section 10.05. Notwithstanding anything to the contrary in this Agreement,
      no
      Event of Default by the Master Servicer or default by the Securities
      Administrator shall have occurred with respect to any failure to properly
      prepare, execute and/or timely file any report on Form 8-K, Form 10-D or Form
      10-K, any Form 15 or Form 12b-25 or any amendments to Form 8-K, 10-D or 10-K,
      where such failure results from any party’s inability or failure to deliver, on
      a timely basis, any information from such party needed to prepare, arrange
      for
      execution or file any such report, Form or amendment, and does not result from
      its own negligence, bad faith or willful misconduct.

     

    In
      the
      case of any failure of performance described above, the Company shall promptly
      reimburse the Depositor, the Master Servicer and the Securities Administrator
      for all costs reasonably incurred by each such party in order to obtain the
      information, report, certification, accountants’ letter or other material not
      delivered pursuant to this Section 4.18 as required by the Company, any
      subservicer or any subcontractor.

     

    (d)  Notwithstanding
      the provisions of Section 12.01, this Section 4.18 may be amended without the
      consent of the Certificateholders.

     

    (e)  Any
      report, notice or notification to be delivered by the Company, the Master
      Servicer or the Securities Administrator to the Depositor pursuant to this
      Section 4.18, may be delivered via email to RegABNotifications@bear.com
      or,
      in
      the case of a notification, telephonically by calling Reg AB Compliance Manager
      at 212-272-7525. 

     

    Section
      4.19  Intention
      of the Parties and Interpretation. 

     

    Each
      of
      the parties acknowledges and agrees that the purpose of Sections 4.16, 4.17
      and
      4.18 of this Agreement is to facilitate compliance by the Seller, the Depositor
      and the Master Servicer with the provisions of Regulation AB. Therefore, each
      of
      the parties agrees that (a) the obligations of the parties hereunder shall
      be
      interpreted in such a manner as to accomplish that purpose, (b) the parties’
obligations hereunder will be supplemented and modified as necessary to be
      consistent with any such amendments, interpretive advice or guidance, convention
      or consensus among active participants in the asset-backed securities markets,
      advice of counsel, or otherwise in respect of the requirements of Regulation
      AB,
      (c) the parties shall comply with reasonable requests made by the Seller, the
      Depositor, the Master Servicer or the Securities Administrator for delivery
      of
      additional or different information as the Seller, the Depositor, the Master
      Servicer or the Securities Administrator may determine in good faith is
      necessary to comply with the provisions of Regulation AB, and (d) no amendment
      of this Agreement shall be required to effect any such changes in the
      obligations of the parties to this transaction as are necessary to accommodate
      evolving interpretations of the provisions of Regulation AB.

     

    Section
      4.20  UCC. 

     

    The
      Seller shall file any financing statements, continuation statements or
      amendments thereto required by any change in the Uniform Commercial
      Code.

     

    Section
      4.21  Optional
      Purchase of Certain Mortgage Loans. 

     

    With
      respect to any Mortgage Loan which as of the first day of a Fiscal Quarter
      is
      delinquent in payment by 90 days or more or is an REO Property, the Seller
      shall
      have the right to purchase any such Mortgage Loan or REO Property from the
      Trust
      at a price equal to the Purchase Price; provided, however, (i) that such
      Mortgage Loan is still 90 days or more Delinquent or is an REO Property as
      of
      the date of such purchase and (ii) this purchase option, if not theretofore
      exercised, shall terminate on the date prior to the last day of the related
      Fiscal Quarter. This purchase option, if not exercised, shall not be thereafter
      reinstated unless the delinquency is cured and the Mortgage Loan thereafter
      again becomes 90 days or more delinquent or becomes an REO Property, in which
      case the option shall again become exercisable as of the first day of the
      related Fiscal Quarter.
      This
      right may be assigned by the Seller to a third party, including a holder of
      a
      Class of Certificates. 

     

    If
      at any
      time EMC remits to the Securities Administrator a payment for deposit in the
      Distribution Account covering the amount of the Repurchase Price for such a
      Mortgage Loan, and EMC provides to the Trustee a certification signed by a
      Servicing Officer stating that the amount of such payment has been deposited
      in
      the Distribution Account, then the Trustee shall execute the assignment of
      such
      Mortgage Loan prepared and delivered to the Trustee, at the request of EMC,
      without recourse, representation or warranty, to EMC which shall succeed to
      all
      the Trustee’s right, title and interest in and to such Mortgage Loan, and all
      security and documents relative thereto. Such assignment shall be an assignment
      outright and not for security. EMC will thereupon own such Mortgage, and all
      such security and documents, free of any further obligation to the Trustee
      or
      the Certificateholders with respect thereto.

     

    ARTICLE
      V

    ACCOUNTS

     

    Section
      5.01  Collection
      of Mortgage Loan Payments; Protected Account. 

     

    (a)  The
      Company shall make reasonable efforts in accordance with customary and usual
      standards of practice of prudent mortgage lenders in the respective states
      in
      which the Mortgaged Properties related to the EMC Mortgage Loans are located
      to
      collect all payments called for under the terms and provisions of the EMC
      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 Company may in its discretion (i) waive
      any
      late payment charge and (ii) extend the due dates for payments due on a Mortgage
      Note related to an EMC Mortgage Loan for a period not greater than 125 days.
      In
      the event of any such arrangement, the Company shall make Advances on the
      related EMC Mortgage Loan during the scheduled period in accordance with the
      amortization schedule of such EMC Mortgage Loan without modification thereof
      by
      reason of such arrangements, and shall be entitled to reimbursement therefor
      in
      accordance with Section 6.01. The Company 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 reasonably believes
      that enforcing the provision of the Mortgage or other instrument pursuant to
      which such payment is required is prohibited by applicable law. In
      addition, if (x) an EMC Mortgage Loan is in default or default is reasonably
      foreseeable, the Company may also waive, modify or vary any term of any EMC
      Mortgage Loan or consent to the postponement of strict compliance with any
      such
      term or in any manner grant indulgence to any mortgagor, including without
      limitation, to (1) capitalize any amounts owing on the EMC Mortgage Loan by
      adding such amount to the outstanding principal balance of the EMC Mortgage
      Loan, (2) defer such amounts to a later date or the final payment date of such
      Mortgage Loan, (3) extend the maturity of any such EMC Mortgage Loan, but in
      no
      instance past the date on which the final payment is due on the latest maturing
      Mortgage Loan as of the Cut-off Date, and/or (4) reduce the related Mortgage
      Rate (subject to clause (y) below), provided that, in the Company’s
      determination, such waiver, modification, postponement or indulgence is not
      materially adverse to the interests of the Certificateholders (taking into
      account any estimated Realized Loss that might result absent such action),
      or
      (y) the Company delivers to the Trustee a certification addressed to the
      Trustee, based on the advice of counsel or certified public accountants, in
      either case, that have a national reputation with respect to taxation of REMICs,
      that a modification of such EMC Mortgage Loan will not result in the imposition
      of taxes on or disqualify from REMIC status any of REMIC I, REMIC II, REMIC
      III
      or REMIC IV the Company may, (A) amend the related Mortgage Note to reduce
      the
      Mortgage Rate applicable thereto, provided that such reduced Mortgage Rate
      shall
      in no event be lower than 5.00% with respect to any EMC Mortgage Loan and (B)
      amend any Mortgage Note related to an EMC Mortgage Loan to extend to the
      maturity thereof.

     

    In
      accordance with the standards of the first paragraph of Section 3.01, the
      Company shall not waive (or permit a sub-servicer to waive) any Prepayment
      Charge related to an EMC Mortgage Loan unless: (i) the enforceability thereof
      shall have been limited by bankruptcy, insolvency, moratorium, receivership
      and
      other similar laws relating to creditors’ rights generally, (ii) the enforcement
      thereof is illegal, or any local, state or federal agency has threatened legal
      action if the prepayment penalty is enforced, (iii) the mortgage debt has been
      accelerated in connection with a foreclosure or other involuntary payment or
      (iv) such waiver is standard and customary in servicing similar Mortgage Loans
      and relates to a default or a reasonably foreseeable default and would, in
      the
      reasonable judgment of the Company, maximize recovery of total proceeds taking
      into account the value of such Prepayment Charge and the related EMC Mortgage
      Loan. If a Prepayment Charge is waived, but does not meet the standards
      described above, then the Company is required to pay the amount of such waived
      Prepayment Charge, for the benefit of Class P Certificates, by remitting such
      amount to the Securities Administrator (or the Master Servicer, if the
      Securities Administrator is no longer related to the Master Servicer) by the
      Remittance Date.

     

    (b)  The
      Company shall establish and maintain a Protected Account (which shall at all
      times be an Eligible Account) with a depository institution in the name of
      the
      Company for the benefit of the Trustee on behalf of the Certificateholders
      and
      designated “U.S. Bank National Association, in trust for registered holders of
      Bear Stearns Asset Backed Securities I LLC, Asset-Backed Certificates Series
      2006-AC5”. The Company shall deposit or cause to be deposited into the Protected
      Account on a daily basis within two Business Days of receipt and identification,
      except as otherwise specifically provided herein, the following payments and
      collections remitted by subservicers or received by it in respect of the EMC
      Mortgage Loans subsequent to the Cut-off Date (other than in respect of
      principal and interest due on the EMC 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, including Principal Prepayments, on the EMC
      Mortgage Loans;

     

    (ii)  all
      payments on account of interest on the EMC Mortgage Loans net of the related
      Servicing Fee permitted under Section 3.10 and LPMI Fees, if any;

     

    (iii)  all
      Liquidation Proceeds and Insurance Proceeds with respect to any EMC Mortgage
      Loans, other than proceeds to be applied to the restoration or repair of the
      Mortgaged Property or released to the Mortgagor in accordance with the Company’s
      normal servicing procedures;

     

    (iv)  any
      amount required to be deposited by the Company pursuant to Section 5.01(c)
      in
      connection with any losses on Permitted Investments;

     

    (v)  any
      amounts required to be deposited by the Company pursuant to Section
      3.05;

     

    (vi)  any
      Prepayment Charges collected on the EMC Mortgage Loans; and

     

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

     

    The
      foregoing requirements for remittance by the Company into the Protected Account
      shall be exclusive, it being understood and agreed that, without limiting the
      generality of the foregoing, payments in the nature of late payment charges
      or
      assumption fees, if collected, need not be remitted by the Company. In the
      event
      that the Company shall remit any amount not required to be remitted and not
      otherwise subject to withdrawal pursuant to Section 5.02, it may at any time
      withdraw or direct the institution maintaining the Protected Account, to
      withdraw such amount from the Protected Account, any provision herein to the
      contrary notwithstanding. Such withdrawal or direction may be accomplished
      by
      delivering written notice thereof to the institution maintaining the Protected
      Account, that describes the amounts deposited in error in the Protected Account.
      The Company shall maintain adequate records with respect to all withdrawals
      made
      pursuant to this Section. Reconciliations will be prepared for the Protected
      Account within 45 calendar days after the bank statement cut-off date. All
      items
      requiring reconciliation will be resolved within 90 calendar days of their
      original identification. All funds deposited in the Protected Account shall
      be
      held in trust for the Certificateholders until withdrawn in accordance with
      Section 5.02.

     

    (c)  The
      institution that maintains the Protected Account shall invest the funds in
      the
      Protected Account, in the manner directed by the Company, in Permitted
      Investments which shall mature not later than the Remittance Date and 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 losses realized from any
      such
      investment shall be for the benefit of the Company as servicing compensation
      and
      shall be remitted to it monthly as provided herein. The amount of any losses
      incurred in the Protected Account in respect of any such investments shall
      be
      deposited by the Company into the Protected Account, out of the Company’s own
      funds.

     

    (d)  The
      Company shall give at least 30 days advance notice to the Trustee, the Seller,
      the Master Servicer, each Rating Agency and the Depositor of any proposed change
      of location of the Protected Account prior to any change thereof.

     

    (e)  In
      the
      event that the Master Servicer and Securities Administrator are no longer
      affiliated, the Master Servicer shall establish and maintain an account separate
      from the Distribution Account into which any funds remitted by the Company
      and
      Servicers will be deposited. No later than noon New York time on the Business
      Day prior to each Distribution Date, the Master Servicer shall remit any such
      funds to the Paying Agent for deposit in the Distribution Account. The Master
      Servicer shall make the following permitted withdrawals and transfers from
      such
      account:

     

    (i)  The
      Master Servicer will, from time to time on demand of the Company, a Servicer
      or
      the Securities Administrator, make or cause to be made such withdrawals or
      transfers from the account as the Master Servicer has designated for such
      transfer or withdrawal pursuant to this Agreement and the related Servicing
      Agreement. The Master Servicer may clear and terminate the account pursuant
      to
      Section 11.01 and remove amounts from time to time deposited in
      error.

     

    (ii)  On
      an
      ongoing basis, the Master Servicer shall withdraw from the account (i) any
      expenses, costs and liabilities recoverable by the Trustee, the Master Servicer
      or the Securities Administrator or the Custodian pursuant to Sections 4.03,
      8.04
      and 10.05 and (ii) any amounts payable to the Master Servicer as set forth
      in
      Section 4.14; provided, however, that the Master Servicer shall be obligated
      to
      pay from its own funds any amounts which it is required to pay under Section
      8.03(a).

     

    (iii)  In
      addition, on or before each Business Day prior to each Distribution Date, the
      Master Servicer shall deposit in the Distribution Account (or remit to the
      Trustee for deposit therein) any Monthly Advances required to be made by the
      Master Servicer with respect to the Mortgage Loans.

     

    (iv)  No
      later
      than noon New York time on each Business Day prior to each Distribution Date,
      the Master Servicer will transfer all Available Funds on deposit in the account
      with respect to the related Distribution Date to the Paying Agent for deposit
      in
      the Distribution Account.

     

    Section
      5.02  Permitted
      Withdrawals From the Protected Account. 

     

    (a)  The
      Company may from time to time make withdrawals from the Protected Account for
      the following purposes:

     

    (i)  to
      pay
      itself (to the extent not previously paid to or withheld by the Company), as
      servicing compensation in accordance with Section 3.10, that portion of any
      payment of interest that equals the Servicing Fee for the period with respect
      to
      which such interest payment was made, and, as additional servicing compensation,
      those other amounts set forth in Section 3.10;

     

    (ii)  to
      reimburse the Company for Advances made by it with respect to the Mortgage
      Loans, provided, however, that the Company’s right of reimbursement pursuant to
      this subclause (ii) shall be limited to amounts received on particular EMC
      Mortgage Loan(s) (including, for this purpose, Liquidation Proceeds and
      Insurance Proceeds and Subsequent Recoveries) that represent late recoveries
      of
      payments of principal and/or interest on such particular EMC Mortgage Loan(s)
      in
      respect of which any such Advance was made;

     

    (iii)  to
      reimburse the Company for any previously made portion of a Servicing Advance
      or
      an Advance made by the Company that, in the good faith judgment of the Company,
      will not be ultimately recoverable by it from the related Mortgagor, any related
      Liquidation Proceeds, Insurance Proceeds or otherwise (a “Nonrecoverable
      Advance”), to the extent not reimbursed pursuant to clause (ii) or clause
      (v);

     

    (iv)  to
      reimburse the Company from Insurance Proceeds for Insured Expenses covered
      by
      the related Insurance Policy;

     

    (v)  to
      pay
      the Company any unpaid Servicing Fees and to reimburse it for any unreimbursed
      Servicing Advances, provided, however, that the Company’s right to reimbursement
      for Servicing Advances pursuant to this subclause (v) with respect to any EMC
      Mortgage Loan shall be limited to amounts received on particular EMC Mortgage
      Loan(s) (including, for this purpose, Liquidation Proceeds, Insurance Proceeds
      and purchase and repurchase proceeds) that represent late recoveries of the
      payments for which such Servicing Advances were made;

     

    (vi)  to
      pay to
      the Seller, the Depositor or itself, as applicable, with respect to each EMC
      Mortgage Loan or property acquired in respect thereof that has been purchased
      pursuant to Section 2.02, 2.03 or 4.21 of this Agreement, all amounts received
      thereon and not taken into account in determining the related Stated Principal
      Balance of such repurchased EMC Mortgage Loan;

     

    (vii)  to
      pay
      any expenses recoverable by the Company pursuant to Section 8.04 of this
      Agreement;

     

    (viii)  to
      withdraw pursuant to Section 5.01 any amount deposited in the Protected Account
      and not required to be deposited therein; and

     

    (ix)  to
      clear
      and terminate the Protected Account upon termination of this Agreement pursuant
      to Section 11.01 hereof.

     

    In
      addition, no later than 1:00 p.m. Eastern time on the Remittance Date, the
      Company shall withdraw from the Protected Accounts and remit to the Securities
      Administrator the amount required to be withdrawn therefrom pursuant to Section
      5.05 hereof. With respect to any remittance received by the Securities
      Administrator from EMC after the date on which such remittance was due, EMC
      shall pay to the Securities Administrator interest on any such late remittance
      at an annual rate equal to the prime rate announced to be in effect from time
      to
      time as published as the average rate in The Wall Street Journal (Northeast
      Edition), plus two percentage points, but in no event greater than the maximum
      amount permitted by applicable law. Such interest shall be deposited in EMC’s
      Protected Account by EMC on the date such late payment is made and shall cover
      the period commencing with the day following the date on which such remittance
      was due and ending with the Business Day on which such remittance is made,
      both
      inclusive. Such interest shall be remitted along with the distribution payable
      on the next succeeding Remittance Date. The payment by EMC of any such interest
      shall not be deemed an extension of time for payment or a waiver of any Event
      of
      Default with respect to EMC.

     

    The
      Company shall keep and maintain separate accounting, on a Mortgage Loan by
      Mortgage Loan basis, for the purpose of justifying any withdrawal from the
      Protected Account pursuant to subclauses (i), (ii), (iv), (v) and (vi) above.
      Prior to making any withdrawal from the Protected Account pursuant to subclause
      (iii), the Company shall deliver to the Trustee an Officer’s Certificate of a
      Servicing Officer indicating the amount of any previous Advance or Servicing
      Advance determined by the Company to be a Nonrecoverable Advance and identifying
      the related EMC Mortgage Loan(s), and their respective portions of such
      Nonrecoverable Advance.

     

    Section
      5.03  Reports
      to Master Servicer. 

     

    (i)  On
      or
      before the tenth calendar day of each month, the Company shall furnish to the
      Master Servicer electronically in a format acceptable to the Master Servicer
      loan accounting reports in the investor’s assigned loan number order to document
      the payment activity on each EMC Mortgage Loan on an individual mortgage loan
      basis and containing the data required by the forms attached hereto as Exhibit
      S, Exhibit T and Exhibit U or in a format mutually agreed upon between the
      Company and the Master Servicer. 

     

    In
      addition, the Company shall provide to the Master Servicer and the Depositor:
      

     

    (i) any
      and
      all information and appropriate verification of information which may be
      reasonably available to the Company, whether through letters of its auditors
      and
      counsel or otherwise, as the Depositor or any such other participant shall
      request upon reasonable demand; and 

     

    (ii) such
      additional representations, warranties, covenants, opinions of counsel, letters
      from auditors, and certificates of public officials or officers of the Company
      as are reasonably agreed upon by the Depositor and the Company or any such
      other
      participant.

     

    Section
      5.04  Collection
      of Taxes; Assessments and Similar Items; Escrow Accounts. 

     

    With
      respect to each EMC Mortgage Loan, to the extent required by the related
      Mortgage Note, the Company 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 Company) for the payment of taxes,
      assessments, hazard insurance premiums or comparable items for the account
      of
      the Mortgagors. Nothing herein shall require the Company to compel a Mortgagor
      to establish an Escrow Account in violation of applicable law.

     

    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 Company out of
      related collections for any payments made with respect to each EMC Mortgage
      Loan
      pursuant to Section 3.01 (with respect to taxes and assessments and insurance
      premiums) and Section 3.05 (with respect to hazard insurance), to refund to
      any
      Mortgagors for any EMC Mortgage Loans any sums as may be determined to be
      overages, to pay interest, if required by law or the terms of the related
      Mortgage or Mortgage Note, to such 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 11.01 thereof. The Escrow Account shall
      not
      be a part of the Trust Fund.

     

    Section
      5.05  Servicer
      Protected Accounts. 

     

    (a)  The
      Master Servicer shall enforce the obligation of the Company and the Servicers
      to
      establish and maintain a Protected Account in accordance with this Agreement
      and
      the Servicing Agreements, with records to be kept with respect thereto on a
      Mortgage Loan by Mortgage Loan basis, into which accounts shall be deposited
      within one Business Day (or as of such other time specified in the Servicing
      Agreements) of receipt all collections of principal and interest on any Mortgage
      Loan and with respect to any REO Property received by the Company or the related
      Servicer, including Principal Prepayments, Insurance Proceeds, Liquidation
      Proceeds, Subsequent Recoveries, and advances made from the Company’s or such
      Servicer’s own funds (less servicing compensation as permitted by this Agreement
      or the related Servicing Agreement) and all other amounts to be deposited in
      the
      Protected Accounts. Each of the Company and the Servicers are hereby authorized
      to make withdrawals from and deposits to the related Protected Account for
      purposes required or permitted by this Agreement. To the extent provided in
      this
      Agreement or any Servicing Agreement, the Protected Account shall be held in
      a
      Designated Depository Institution and segregated on the books of such
      institution in the name of the Trustee for the benefit of
      Certificateholders.

     

    (b)  To
      the
      extent provided in this Agreement or any Servicing Agreement, amounts on deposit
      in a Protected Account may be invested in Permitted Investments in the name
      of
      the Trustee for the benefit of Certificateholders and, except as provided in
      the
      preceding paragraph, not commingled with any other funds, such Permitted
      Investments to mature, or to be subject to redemption or withdrawal, no later
      than the date on which such funds are required to be withdrawn for deposit
      in
      the Distribution Account, and shall be held until required for such deposit.
      The
      income earned from Permitted Investments made pursuant to this Section 5.05
      shall be paid to the Company or the related Servicer under this Agreement or
      the
      related Servicing Agreement, and the risk of loss of moneys required to be
      distributed to the Certificateholders resulting from such investments shall
      be
      borne by and be the risk of the Company or the related Servicer, as the case
      may
      be. The Company or the related Servicer (to the extent provided in this
      Agreement or the related Servicing Agreement) shall deposit the amount of any
      such loss in the Protected Account within two Business Days of receipt of
      notification of such loss but not later than the second Business Day prior
      to
      the Distribution Date on which the moneys so invested are required to be
      distributed to the Certificateholders.

     

    (c)  To
      the
      extent provided in this Agreement or the related Servicing Agreement and subject
      to this Article V, on or before each Remittance Date, the Company or the related
      Servicer shall withdraw or shall cause to be withdrawn from its Protected
      Account and shall immediately deposit or cause to be deposited in the
      Distribution Account amounts representing the following collections and payments
      (other than with respect to principal of or interest on the Mortgage Loans
      due
      on or before the Cut-off Date):

     

    (i)  Scheduled
      Payments on the Mortgage Loans received or any related portion thereof advanced
      by the Company or the related Servicer pursuant to the related Servicing
      Agreement which were due on or before the related Due Date, net of the amount
      thereof comprising the Servicing Fees;

     

    (ii)  Full
      Principal Prepayments and any Liquidation Proceeds received by the Company
      or
      the related Servicer with respect to such Mortgage Loans in the related
      Prepayment Period, with interest to the date of prepayment or liquidation,
      net
      of the amount thereof comprising the Servicing Fees and LPMI Fees, if
      any;

     

    (iii)  Partial
      Principal Prepayments received by the Company or the related Servicer for such
      Mortgage Loans in the related Prepayment Period;

     

    (iv)  Any
      amount to be used as an Advance; and

     

    (v)  The
      amount of any Prepayment Charges collected with respect to the Mortgage Loans
      and the amount of any Prepayment Charges paid by the Company or the related
      Servicer in connection with the waiver of a Prepayment Charge in a manner that
      is not permitted under this Agreement or the related Servicing
      Agreement.

     

    (d)  Withdrawals
      may be made from a Protected Account by the Company as described in Section
      5.02
      hereof and by the Master Servicer or the related Servicer only to make
      remittances as provided in Section 5.05(c); to reimburse the Master Servicer
      or
      the Servicer for Advances which have been recovered by subsequent collection
      from the related Mortgagor; to remove amounts deposited in error; to remove
      fees, charges or other such amounts deposited on a temporary basis; or to clear
      and terminate the account at the termination of this Agreement in accordance
      with Section 11.01. As provided in Section 5.05(c) certain amounts otherwise
      due
      to the related Servicer may be retained by the related Servicer and need not
      be
      deposited in the Distribution Account.

     

    Section
      5.06  [Reserved]. 

     

    Section
      5.07  [Reserved]. 

     

    Section
      5.08  Distribution
      Account. 

     

    (a)  The
      Securities Administrator shall establish and maintain in the name of the
      Trustee, for the benefit of the Certificateholders, the Distribution Account
      as
      a segregated trust account or accounts. The Distribution Account shall be an
      Eligible Account. The Master Servicer or Servicer, as the case may be, will
      remit to the Securities Administrator for deposit in the Distribution Account
      the following amounts:

     

    (i)  any
      Advance and any Compensating Interest Payments;

     

    (ii)  any
      Insurance Proceeds, Liquidation Proceeds or Subsequent Recoveries received
      by or
      on behalf of the Master Servicer or which were not deposited in a Protected
      Account;

     

    (iii)  the
      Repurchase Price with respect to any Mortgage Loans purchased by the Seller
      or
      Section 2.02 or 2.03, any amounts which are to be treated pursuant to Section
      5.09 of this Agreement as the payment of such a Repurchase Price, the Repurchase
      Price with respect to any Mortgage Loans purchased by EMC pursuant to Section
      4.21, and all proceeds of any Mortgage Loans or property acquired with respect
      thereto repurchased by the Seller or its designee pursuant to Section
      11.01;

     

    (iv)  any
      amounts required to be deposited with respect to losses on investments of
      deposits in an Account; and

     

    (v)  any
      other
      amounts received by or on behalf of the Master Servicer or the Trustee and
      required to be deposited in the Distribution Account pursuant to this
      Agreement.

     

    (b)  All
      amounts deposited to the Distribution Account shall be held by the Securities
      Administrator in the name of the Trustee in trust for the benefit of the
      Certificateholders in accordance with the terms and provisions of this
      Agreement. The requirements for crediting the Distribution Account shall be
      exclusive, it being understood and agreed that, without limiting the generality
      of the foregoing, payments in the nature of late payment charges or assumption,
      tax service, statement account or payoff, substitution, satisfaction, release
      and other like fees and charges, need not be credited by the Master Servicer
      or
      the related Servicer to the Distribution Account. In the event that the Master
      Servicer shall deposit or cause to be deposited to the Distribution Account
      any
      amount not required to be credited thereto, the Securities Administrator, upon
      receipt of a written request therefor signed by a Servicing Officer of the
      Master Servicer, shall promptly transfer such amount to the Master Servicer,
      any
      provision herein to the contrary notwithstanding.

     

    (c)  The
      Distribution Account shall constitute a trust account of the Trust Fund
      segregated on the books of the Securities Administrator and held by the
      Securities Administrator and the Distribution Account and the funds deposited
      therein shall not be subject to, and shall be protected from, all claims, liens,
      and encumbrances of any creditors or depositors of the Securities Administrator
      (whether made directly, or indirectly through a liquidator or receiver of the
      Securities Administrator. The amount at any time credited to the Distribution
      Account may be, as directed by the Master Servicer, held either uninvested
      in a
      trust or deposit account of the Securities Administrator with no liability
      for
      interest or other compensation thereof, except as otherwise agreed in writing
      with the Master Servicer, or invested in the name of the Trustee, in such
      Permitted Investments as may be selected by the Master Servicer on such
      direction which mature not later than the Business Day next preceding the
      succeeding Distribution Date, except if such Permitted Investment is an
      obligation of or is managed by the institution that maintains such fund or
      account, then such Permitted Investment shall mature not later than such
      Distribution Date. Permitted Investments in respect of the Distribution Account
      shall not be sold or disposed of prior to their maturity. All investment
      earnings on amounts on deposit in the Distribution Account or benefit from
      funds
      uninvested therein from time to time shall be for the account of the Master
      Servicer. The Master Servicer shall be permitted to receive distribution of
      any
      and all investment earnings from the Distribution Account on each Distribution
      Date. If there is any loss on a Permitted Investment or demand deposit, the
      Master Servicer shall deposit the amount of the loss in the Distribution
      Account. With respect to the Distribution Account and the funds deposited
      therein, the Securities Administrator shall take such action as may be necessary
      to ensure that the Certificateholders shall be entitled to the priorities
      afforded to such a trust account (in addition to a claim against the estate
      of
      the Securities Administrator) as provided by 12 U.S.C. § 92a(e), and applicable
      regulations pursuant thereto, if applicable, or any applicable comparable state
      statute applicable to state chartered banking corporations.

     

    Section
      5.09  Permitted
      Withdrawals and Transfers from the Distribution Account. 

     

    (a)  The
      Securities Administrator will make such withdrawals or transfers from the
      Distribution Account as the Master Servicer has designated for such transfer
      or
      withdrawal pursuant to this Agreement or any Servicing Agreement (limited in
      the
      case of amounts due the Master Servicer to those not withdrawn from the
      Distribution Account in accordance with the terms of this Agreement; provided
      that the Securities Administrator shall not be responsible for such
      determination and may rely on the Master Servicer’s instructions under this
      Section 5.09):

     

    (i)  to
      reimburse the Master Servicer, the Company or the related Servicer for any
      Advance or Servicing Advance of its own funds, the right of the Master Servicer,
      the Company or the related Servicer to reimbursement pursuant to this subclause
      (i) being limited to amounts received on a particular Mortgage Loan (including,
      for this purpose, the Repurchase Price therefor, Insurance Proceeds and
      Liquidation Proceeds) which represent late payments or recoveries of the
      principal of or interest on such Mortgage Loan respecting which such Advance
      or
      Servicing Advance was made;

     

    (ii)  to
      reimburse the Master Servicer, the Company or the related Servicer from
      Insurance Proceeds or Liquidation Proceeds relating to a particular Mortgage
      Loan for amounts expended by the Master Servicer, the Company or the related
      Servicer in good faith in connection with the restoration of the related
      Mortgaged Property which was damaged by an uninsured cause or in connection
      with
      the liquidation of such Mortgage Loan;

     

    (iii)  to
      reimburse the Master Servicer, the Company or the related Servicer from
      Insurance Proceeds relating to a particular Mortgage Loan for insured expenses
      incurred with respect to such Mortgage Loan and to reimburse the Master
      Servicer, the Company or the related Servicer from Liquidation Proceeds from
      a
      particular Mortgage Loan for Liquidation Expenses incurred with respect to
      such
      Mortgage Loan; provided that the Master Servicer shall not be entitled to
      reimbursement for Liquidation Expenses with respect to a Mortgage Loan to the
      extent that (i) any amounts with respect to such Mortgage Loan were paid as
      Excess Liquidation Proceeds pursuant to clause (x) of this Subsection (a) to
      the
      Master Servicer; and (ii) such Liquidation Expenses were not included in the
      computation of such Excess Liquidation Proceeds;

     

    (iv)  to
      reimburse the Master Servicer, the Company or a Servicer for advances of funds
      pursuant to this Agreement or the related Servicing Agreement, and the right
      to
      reimbursement pursuant to this subclause being limited to amounts received
      on
      the related Mortgage Loan (including, for this purpose, the Repurchase Price
      therefor, Insurance Proceeds and Liquidation Proceeds) which represent late
      recoveries of the payments for which such advances were made;

     

    (v)  to
      reimburse the Master Servicer, the Company or a Servicer for any Advance or
      advance, after a Realized Loss has been allocated with respect to the related
      Mortgage Loan if the Advance or advance has not been reimbursed pursuant to
      clauses (i) through (iv);

     

    (vi)  to
      pay
      the Master Servicer as set forth in Section 4.14;

     

    (vii)  to
      reimburse the Master Servicer for expenses, costs and liabilities incurred
      by
      and reimbursable to it pursuant to Sections 4.03, 8.04(c) and (d) and 12.02
      or
      otherwise reimbursable to it pursuant to this Agreement;

     

    (viii)  to
      pay to
      the Master Servicer, as additional servicing compensation, any Excess
      Liquidation Proceeds to the extent not retained by the Company or the related
      Servicer;

     

    (ix)  to
      reimburse or pay the Company or the related Servicer any such amounts as are
      due
      thereto under this Agreement or the related Servicing Agreement and have not
      been retained by or paid to the Company or the related Servicer, to the extent
      provided herein and in the related Servicing Agreement;

     

    (x)  to
      reimburse the Trustee, the Custodian or the Securities Administrator for
      expenses, costs and liabilities incurred by or reimbursable to it pursuant
      to
      this Agreement;

     

    (xi)  to
      remove
      amounts deposited in error; and

     

    (xii)  to
      clear
      and terminate the Distribution Account pursuant to Section 11.01.

     

    (b)  The
      Master Servicer shall keep and maintain separate accounting,
      on a
      Mortgage Loan by Mortgage Loan basis, for the purpose of accounting for any
      reimbursement from the Distribution Account pursuant to subclauses (i) through
      (iv), inclusive, and (vi) or with respect to any such amounts which would have
      been covered by such subclauses had the amounts not been retained by the Master
      Servicer without being deposited in the Distribution Account under Section
      5.08.

     

    (c)  On
      each
      Distribution Date, the Securities Administrator shall distribute the Interest
      Funds and Principal Funds to the extent of funds on deposit in the Distribution
      Account to the Holders of the Certificates in accordance with the Remittance
      Report upon which the Securities Administrator may conclusively
      rely.

     

    ARTICLE
      VI

    DISTRIBUTIONS
      AND ADVANCES

     

    Section
      6.01  Advances. 

     

    (a)  The
      Company shall make an Advance with respect to any EMC Mortgage Loan and remit
      such Advance to the Securities Administrator for deposit in the Distribution
      Account no later than 1:00 p.m. Eastern time on the Remittance Date in
      immediately available funds. The Master Servicer shall cause the related
      Servicer to remit any such Advance required pursuant to the terms of the related
      Servicing Agreement. The Company or the related Servicer, as applicable, shall
      be obligated to make any such Advance only to the extent that such advance
      would
      not be a Nonrecoverable Advance. If the Company or the related Servicer shall
      have determined that it has made a Nonrecoverable Advance or that a proposed
      Advance or a lesser portion of such Advance would constitute a Nonrecoverable
      Advance, the Company or the related Servicer, as the case may be, shall deliver
      (i) to the Securities Administrator for the benefit of the Certificateholders
      constituting the portion of such Advance that is not deemed nonrecoverable,
      if
      applicable, and (ii) to the Depositor, the Master Servicer, each Rating Agency
      and the Trustee an Officer’s Certificate setting forth the basis for such
      determination. Subject
      to the Master Servicer’s recoverability determination, in the event that a
      Servicer fails to make a required Advance, the Master Servicer, as successor
      servicer, shall be required to remit the amount of such Advance to the
      Distribution Account. Subject
      to the Securities Administrator’s recoverability determination, in the event
      that the Master Servicer fails to make a required Advance, the Securities
      Administrator shall be required to remit the amount of such Advance to the
      Distribution Account. 

     

    In
      lieu
      of making all or a portion of such Advance from its own funds, the Company
      may
      (i) cause to be made an appropriate entry in its records relating to the
      Protected Account that any Amounts Held for Future Distribution has been used
      by
      the Company in discharge of its obligation to make any such Advance and (ii)
      transfer such funds from the Protected Account to the Distribution Account.
      Any
      funds so applied and transferred shall be replaced by the Company by deposit
      in
      the Distribution Account, no later than the close of business on the Remittance
      Date immediately preceding the Distribution Date on which such funds are
      required to be distributed pursuant to this Agreement.

     

    The
      Company shall be entitled to be reimbursed from the Protected Account for all
      Advances of its own funds made pursuant to this Section as provided in Section
      5.02. The obligation to make Advances with respect to any EMC Mortgage Loan
      shall continue until such EMC Mortgage Loan is paid in full or the related
      Mortgaged Property or related REO Property has been liquidated or until the
      purchase or repurchase thereof (or substitution therefor) from the Trust Fund
      pursuant to any applicable provision of this Agreement, except as otherwise
      provided in this Section 6.01.

     

    (b)  If
      the
      Company or the related Servicer was required to make an Advance pursuant to
      this
      Agreement or the related Servicing Agreement and fails to make any required
      Advance, in whole or in part, the Master Servicer, as successor servicer, or
      an
      other successor servicer appointed by it, will remit to the Securities
      Administrator, who in turn will deposit in the Distribution Account not later
      than the Business Day prior to the Distribution Date an amount equal to such
      required Advance to the extent not otherwise paid by the related Servicer,
      net
      of the Servicing Fee for such Mortgage Loan except to the extent the Master
      Servicer determines any such Advance to be nonrecoverable from Liquidation
      Proceeds, Insurance Proceeds or future payments on the Mortgage Loan for which
      such Advance was made. Subject to the foregoing, the Master Servicer shall
      continue to make such Advances through the date that the Company or the related
      Servicer is required to do so under this Agreement or the related Servicing
      Agreement, as applicable. If applicable, on the Business Day prior to the
      related Distribution Date, the Master Servicer shall present an Officer’s
      Certificate to the Trustee (i) stating that the Master Servicer elects not
      to
      make an Advance in a stated amount and (ii) detailing the reason it deems the
      advance to be nonrecoverable.

     

    Subject
      to and in accordance with the provisions of Article IX hereof, in the event
      the
      Master Servicer fails to make such Advance, then the Trustee, as Successor
      Master Servicer, shall be obligated to make such Advance, subject to the
      provisions of this Section 6.01, in accordance with and subject to the terms
      of
      this Agreement (including its rights of reimbursement hereunder).

     

    Section
      6.02  Compensating
      Interest Payments. 

     

    (a)  In
      the
      event that there is a Prepayment Interest Shortfall arising from a voluntary
      Principal Prepayment in part or in full by the Mortgagor with respect to any
      EMC
      Mortgage Loan, the Company shall, to the extent of the Servicing Fee for such
      Distribution Date, deposit into the Distribution Account, as a reduction of
      the
      Servicing Fee for such Distribution Date, no later than the close of business
      on
      the Remittance Date immediately preceding such Distribution Date, an amount
      equal to the Prepayment Interest Shortfall; and in case of such deposit, the
      Company shall not be entitled to any recovery or reimbursement from the
      Depositor, the Trustee, the Seller, the Master Servicer, the Securities
      Administrator, the Trust Fund or the Certificateholders.

     

    (b)  The
      Master Servicer shall cause each Servicer under the related Servicing Agreement
      to remit any required Compensating Interest Payments to the Distribution Account
      on the Remittance Date.

     

    (c)  The
      Master Servicer shall be required to remit the amount of any such Prepayment
      Interest Shortfalls required to be paid by the related Servicer pursuant to
      Section 6.02(a), to the extent of the Master Servicing Compensation for such
      Distribution Date, in the event the Company or the related Servicer fails to
      do
      so.

     

    Section
      6.03  REMIC
      Distributions. 

     

    On
      each
      Distribution Date the Securities Administrator shall be deemed to have allocated
      distributions to the REMIC I Regular Interests, the Class C Interest and the
      Class P Interest in accordance with Section 6.07 hereof.

     

    Section
      6.04  Distributions. 

     

    (a)  On
      each
      Distribution Date, an amount equal to the Interest Funds and Principal Funds
      for
      such Distribution Date shall be withdrawn by the Securities Administrator from
      the Distribution Account and distributed in the following order of priority:
      

     

    (1)  Interest
      Funds shall be distributed in the following manner and order of
      priority:

     

    (A)  to
      the
      Class A-1, Class A-2 and Class A-3 Certificates, the Current Interest and any
      Interest Carry Forward Amount for each such Class, pro rata in accordance with
      the amount of accrued interest due thereon; and

     

    (B)  From
      remaining Interest Funds, sequentially, to the Class M-1, Class M-2, Class
      M-3,
      Class M-4, Class B-1, Class B-2, Class B-3 and Class B-4 Certificates, in that
      order, the Current Interest for each such Class.

     

    Any
      Excess Spread to the extent necessary to meet a level of overcollateralization
      equal to the Overcollateralization Target Amount will be the Extra Principal
      Distribution Amount and will be included as part of the Principal Distribution
      Amount. Any Remaining Excess Spread together with any Overcollateralization
      Release Amount will be applied as Excess Cashflow and distributed pursuant
      to
      clauses (3)(A) through (H) below.

     

    On
      any
      Distribution Date, any Relief Act Interest Shortfalls and any Prepayment
      Interest Shortfalls to the extent not covered by Compensating Interest will
      be
      allocated as set forth in the definition of “Current Interest”
herein.

     

    (2)  On
      each
      Distribution Date, the Principal Distribution Amount shall be distributed in
      the
      following manner and order of priority:

     

    (A)  For
      each
      Distribution Date (i) prior to the Stepdown Date or (ii) on which a Trigger
      Event is in effect:

     

    (i)  To
      the
      Class A-1 Certificates and Class A-2 Certificates, on a pro rata basis, based
      on
      the Certificate Principal Balance of each such Class, the Principal Distribution
      Amount for such Distribution Date until the Certificate Principal Balances
      thereof have been reduced to zero;

     

    (ii)  To
      the
      Class A-3 Certificates, the remaining Principal Distribution Amount for such
      Distribution Date, until the Certificate Principal Balance thereof has been
      reduced to zero;

     

    (iii)  To
      the
      Class M-1 Certificates, from any remaining Principal Funds for such Distribution
      Date, until the Certificate Principal Balance thereof is reduced to
      zero;

     

    (iv)  To
      the
      Class M-2 Certificates, from any remaining Principal Funds for such Distribution
      Date, until the Certificate Principal Balance thereof is reduced to
      zero;

     

    (v)  To
      the
      Class M-3 Certificates, from any remaining Principal Funds for such Distribution
      Date, until the Certificate Principal Balance thereof is reduced to
      zero;

     

    (vi)  To
      the
      Class M-4 Certificates, from any remaining Principal Funds for such Distribution
      Date, until the Certificate Principal Balance thereof is reduced to
      zero;

     

    (vii)  To
      the
      Class B-1 Certificates, from any remaining Principal Funds for such Distribution
      Date, until the Certificate Principal Balance thereof is reduced to
      zero;

     

    (viii)  To
      the
      Class B-2 Certificates, from any remaining Principal Funds for such Distribution
      Date, until the Certificate Principal Balance thereof is reduced to
      zero;

     

    (ix)  To
      the
      Class B-3 Certificates, from any remaining Principal Funds for such Distribution
      Date, until the Certificate Principal Balance thereof is reduced to zero;
      and

     

    (x)  To
      the
      Class B-4 Certificates, from any remaining Principal Funds for such Distribution
      Date, until the Certificate Principal Balance thereof is reduced to
      zero.

     

    (B)  For
      each
      Distribution Date on or after the Stepdown Date, so long as a Trigger Event
      is
      not in effect:

     

    (i)  To
      the
      Class A-1 Certificates and Class A-2 Certificates, on a pro rata basis, based
      on
      the Certificate Principal Balance of each such class, the Class A Principal
      Distribution Amount for such Distribution Date until the Certificate Principal
      Balances thereof have been reduced to zero;

     

    (ii)  To
      the
      Class A-3 Certificates, the remaining Class A Principal Distribution Amount
      for
      such Distribution Date until the Certificate Principal Balance thereof has
      been
      reduced to zero;

     

    (iii)  To
      the
      Class M-1 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class M-1 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (iv)  To
      the
      Class M-2 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class M-2 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (v)  To
      the
      Class M-3 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class M-3 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (vi)  To
      the
      Class M-4 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class M-4 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (vii)  To
      the
      Class B-1 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class B-1 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero;

     

    (viii)  To
      the
      Class B-2 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class B-2 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero; 

     

    (ix)  To
      the
      Class B-3 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class B-3 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero; and

     

    (x)  To
      the
      Class B-4 Certificates, from any remaining Principal Distribution Amount for
      such Distribution Date, the Class B-4 Principal Distribution Amount, until
      the
      Certificate Principal Balance thereof is reduced to zero.

     

    (3)  Any
      Excess Cashflow shall be distributed in the following manner and order of
      priority:

     

    (A)  To
      the
      Class A Certificates, (a) first, any remaining Interest Carry Forward Amount
      for
      such Classes, pro rata, in accordance with the Interest Carry Forward Amount
      due
      with respect to each such Class, to the extent not fully paid pursuant to clause
      (1) (A) above and (b) second, any Unpaid Realized Loss Amount for the Class
      A
      Certificates, on a pro rata basis, for such Distribution Date, in accordance
      with the Applied Realized Loss Amount allocated to each such Class;

     

    (B)  From
      any
      remaining Excess Cashflow, sequentially, to the Class M-1, Class M-2, Class
      M-3,
      Class M-4, Class B-1, Class B-2, Class B-3 and Class B-4 Certificates, in that
      order, an amount equal to the Interest Carry Forward Amount for each such
      Class;

     

    (C)  From
      any
      remaining Excess Cashflow otherwise distributable to the Class C Interest and
      the Class C Certificates, to the Reserve Fund, (i) first, to pay to the Classes
      of Class A Certificates, any Basis Risk Shortfall Carry Forward Amount for
      such
      Classes for such Distribution Date, on a pro rata basis, based on the amount
      of
      the Basis Risk Shortfall Carry Forward Amount for each such Class, to the extent
      such amount exceeds the amounts then on deposit in the Reserve Fund, and (ii)
      second, to maintain a balance in the Reserve Fund equal to the Reserve Fund
      Deposit;

     

    (D)  From
      any
      remaining Excess Cashflow otherwise distributable to the Class C Interest and
      the Class C Certificates, to the Reserve Fund, (i) first, to pay to the Class
      M-1, Class M-2, Class M-3, Class M-4, Class B-1, Class B-2, Class B-3 and Class
      B-4 Certificates, sequentially in that order, any Basis Risk Shortfall Carry
      Forward Amount for each such Class, for such Distribution Date, if any, to
      the
      extent such amount exceeds the amounts then on deposit in the Reserve Fund,
      and
      (ii) second, to maintain a balance in the Reserve Fund equal to the Reserve
      Fund
      Deposit;

     

    (E)  From
      any
      remaining Excess Cashflow, to the Class A Certificates, on a pro rata basis,
      based on the entitlement of each such Class, and then sequentially to the Class
      M-1, Class M-2, Class M-3, Class M-4, Class B-1, Class B-2, Class B-3 and Class
      B-4 Certificates, in that order, the amount of Relief Act Shortfalls and any
      Prepayment Interest Shortfalls allocated to such Classes of Certificates, to
      the
      extent not previously reimbursed;

     

    (F)  From
      any
      remaining Excess Cashflow, to the Class C Interest and Class C Certificates,
      an
      amount equal to the Class C Distribution Amount reduced by amounts distributed
      in clauses (C) and (D) above; and

     

    (G)  From
      any
      remaining Excess Cashflow, to each of the Class R-1, Class R-2 and Class RX
      Certificates, based on the related REMIC in which such amount
      remains.

     

    In
      addition, notwithstanding the foregoing, on any Distribution Date after the
      Distribution Date on which the Certificate Principal Balance of a Class of
      Class
      A, Class B or Class M Certificates has been reduced to zero, that Class of
      Certificates will be retired and will no longer be entitled to distributions,
      including distributions in respect of Prepayment Interest Shortfalls or Basis
      Risk Shortfall Carry Forward Amounts.

     

    (b)  Subject
      to Section 11.02 hereof respecting the final distribution, on each Distribution
      Date the Securities Administrator shall make distributions to each
      Certificateholder of record on the preceding Record Date either 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 Securities Administrator at least 5 Business Days prior to the
      related Record Date and (ii) such Holder shall hold Regular Certificates with
      aggregate principal denominations of not less than $1,000,000 or evidencing
      a
      Percentage Interest aggregating 10% or more with respect to such Class or,
      if
      not, by check mailed by first class mail to such Certificateholder at the
      address of such Holder appearing in the Certificate Register. Notwithstanding
      the foregoing, but subject to Section 11.02 hereof respecting the final
      distribution, distributions with respect to Certificates registered in the
      name
      of a Depository shall be made to such Depository in immediately available
      funds.

     

    (c)  Prior
      to
      each Distribution Date, or if the Master Servicer and the Securities
      Administrator are no longer affiliated, on or before 5:00 p.m. Eastern time
      on
      the fifth Business Day immediately preceding each Distribution Date, the Master
      Servicer shall deliver a report to the Securities Administrator in the form
      of a
      computer readable magnetic tape (or by such other means as the Master Servicer
      and the Securities Administrator may agree from time to time) containing such
      data and information, as agreed to by the Master Servicer and the Securities
      Administrator such as to permit the Securities Administrator to prepare the
      Monthly Statement to Certificateholders and to direct the Securities
      Administrator in writing to make the required distributions for the related
      Distribution Date (the “Remittance Report”). 

     

    Section
      6.05  Allocation
      of Realized Losses. 

     

    (a)  All
      Realized Losses on the Mortgage Loans shall be allocated by the Securities
      Administrator on each Distribution Date as follows: first, to Excess Spread
      through an increased distribution of the Extra Principal Distribution Amount
      for
      such Distribution Date; second, to the Class C Interest and Class C
      Certificates, until the Certificate Principal Balance or Uncertificated
      Principal Balance thereof, as applicable, has been reduced to zero; third,
      to
      the Class B-4 Certificates, until the Certificate Principal Balance thereof
      has
      been reduced to zero; fourth, to the Class B-3 Certificates, until the
      Certificate Principal Balance thereof has been reduced to zero; fifth, to the
      Class B-2 Certificates, until the Certificate Principal Balance thereof has
      been
      reduced to zero; sixth, to the Class B-1 Certificates, until the Certificate
      Principal Balance thereof has been reduced to zero; seventh, to the Class M-4
      Certificates, until the Certificate Principal Balance thereof has been reduced
      to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal
      Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates,
      until the Certificate Principal Balance thereof has been reduced to zero; tenth,
      to the Class M-1 Certificates, until the Certificate Principal Balance thereof
      has been reduced to zero and eleventh, to the Class A Certificates, on a pro
      rata basis, in reduction of the Certificate Principal Balances thereof, until
      reduced to zero; provided, however, any Realized Losses otherwise allocable
      to
      the Class A-1 Certificates will first be allocated to the Class A-2
      Certificates, until the Certificate Principal Balance of that class has been
      reduced to zero, and then to the Class A-1 Certificates. All Realized Losses
      to
      be allocated to the Certificate Principal Balances of all Classes on any
      Distribution Date shall be so allocated after the actual distributions to be
      made on such date as provided above. All references above to the Certificate
      Principal Balance of any Class of Certificates shall be to the Certificate
      Principal Balance of such Class immediately prior to the relevant Distribution
      Date, before reduction thereof by any Realized Losses, in each case to be
      allocated to such Class of Certificates, on such Distribution Date.

     

    (b)  Any
      allocation of Realized Losses to a Class of Certificates or to the Class C
      Interest on any Distribution Date shall be made by reducing the Certificate
      Principal Balance or Uncertificated Principal Balance thereof by the amount
      so
      allocated; any allocation of Realized Losses to Excess Spread shall be made
      by
      reducing the amount otherwise payable in respect of the Class C Interest and
      the
      Class C Certificates pursuant to clause (F) of Section 6.04(a)(3). 

     

    Notwithstanding
      the foregoing, no such allocation of any Realized Loss shall be made on a
      Distribution Date to any Class of Certificates to the extent that such
      allocation would result in the reduction of the aggregate Certificate Principal
      Balance of all the Certificates as of such Distribution Date (other than the
      Class C Certificates and Class P Certificates) after giving effect to all
      distributions and prior allocations of Realized Losses on the Mortgage Loans
      on
      such date, to an amount less than the aggregate Stated Principal Balance of
      all
      of the Mortgage Loans as of the first day of the month of such Distribution
      Date
      (such limitation, the “Loss Allocation Limitation”). In addition in no event
      will the Certificate Principal Balance of any Certificate be reduced more than
      once in respect of any particular amount both (i) allocable to such Certificate
      in respect of Realized Losses and (ii) payable as principal to the Holder of
      such Certificate from Remaining Excess Spread.

     

    As
      used
      herein, an allocation of a Realized Loss on a “pro
      rata
      basis”
among two or more specified Classes of Certificates means an allocation on
      a
pro
      rata
      basis,
      among the various Classes so specified, to each such Class of Certificates
      on
      the basis of their then outstanding Certificate Principal Balances prior to
      giving effect to distributions to be made on such Distribution Date. All
      Realized Losses and all other losses allocated to a Class of Certificates
      hereunder will be allocated among the Certificates of such Class in proportion
      to the Percentage Interests evidenced thereby.

     

    (i)  All
      Realized Losses on the Mortgage Loans shall be allocated by the Securities
      Administrator on each Distribution Date to the following REMIC I Regular
      Interests in the specified percentages, as follows: first, to Uncertificated
      Accrued Interest payable to REMIC I Regular Interest AA and REMIC I Regular
      Interest ZZ up to an aggregate amount equal to the REMIC I Interest Loss
      Allocation Amount (without duplication of shortfalls allocated pursuant to
      Section 1.02), 98.00% and 2.00%, respectively; second, to the Uncertificated
      Principal Balances of REMIC I Regular Interest AA and REMIC I Regular Interest
      ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation
      Amount, 98.00% and 2.00%, respectively; third, to the Uncertificated Principal
      Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-4 and REMIC
      I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the
      Uncertificated Principal Balance of REMIC I Regular Interest B-4 has been
      reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC
      I
      Regular Interest AA, REMIC I Regular Interest B-3 and REMIC I Regular Interest
      ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal
      Balance of REMIC I Regular Interest B-3 has been reduced to zero; fifth, to
      the
      Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I
      Regular Interest B-2 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Principal Balance of REMIC I Regular
      Interest B-2 has been reduced to zero; sixth, to the Uncertificated Principal
      Balances of REMIC I Regular Interest AA, REMIC I Regular Interest B-1 and REMIC
      I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the
      Uncertificated Principal Balance of REMIC I Regular Interest B-1 has been
      reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC
      I
      Regular Interest AA, REMIC I Regular Interest M-4 and REMIC I Regular Interest
      ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal
      Balance of REMIC I Regular Interest M-4 has been reduced to zero; eighth, to
      the
      Uncertificated Principal Balances of REMIC I Regular Interest AA, REMIC I
      Regular Interest M-3 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%,
      respectively, until the Uncertificated Principal Balance of REMIC I Regular
      Interest M-3 has been reduced to zero; ninth, to the Uncertificated Principal
      Balances of REMIC I Regular Interest AA, REMIC I Regular Interest M-2 and REMIC
      I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the
      Uncertificated Principal Balance of REMIC I Regular Interest M-2 has been
      reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC I
      Regular Interest AA, REMIC I Regular Interest M-1 and REMIC I Regular Interest
      ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal
      Balance of REMIC I Regular Interest M-1 has been reduced to zero; and eleventh,
      to the Uncertificated Principal Balance of REMIC I Regular Interest AA, 98.00%,
      to the Uncertificated Principal Balances of REMIC I Regular Interests A-1,
      A-2
      and A-3, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC
      I
      Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of
      such
      REMIC I Regular Interests A-1, A-2 and A-3 have been reduced to zero; provided
      that any such Realized Losses otherwise allocable to REMIC I Regular Interest
      A-1 shall be first allocated to REMIC I Regular Interest A-2 until the
      Uncertificated Principal Balance thereof has been reduced to zero.

     

    Section
      6.06  Monthly
      Statements to Certificateholders. 

     

    (a)  Not
      later
      than each Distribution Date, the Securities Administrator shall prepare and
      make
      available to each Holder of Certificates, the Trustee, the Master Servicer
      and
      the Depositor a statement setting forth for the Certificates:

     

    (i)  the
      applicable accrual periods for calculating distributions and general
      distribution dates;

     

    (ii)  the
      total
      cash flows received and the general sources thereof;

     

    (iii)  the
      amount, if any, of fees or expenses accrued and paid, with an identification
      of
      the payee and the general purpose of such fees including the related amount
      of
      the Servicing Fees paid to or retained by the related Servicer or the Company
      for the related Due Period;

     

    (iv)  the
      amount of the related distribution to Holders of the Class A, Class M and Class
      B Certificates (by Class) allocable to principal, separately identifying (A)
      the
      aggregate amount of any Principal Prepayments included therein, (B) the
      aggregate of all scheduled payments of principal included therein and (C) the
      Extra Principal Distribution Amount (if any);

     

    (v)  the
      amount of such distribution to Holders of each Class of Class A, Class M and
      Class B Certificates allocable to interest

     

    (vi)  the
      amount of the distribution made on such Distribution Date to the Holders of
      the
      Class P Certificates allocable to Prepayment Charges

     

    (vii)  the
      Interest Carry Forward Amounts and any Basis Risk Shortfall Carry Forward
      Amounts for each Class of Certificates (if any);

     

    (viii)  the
      Pass-Through Rate for each Class of Class A, Class M and Class B Certificates
      with respect to the current Interest Accrual Period, and, if applicable, whether
      such Pass-Through Rate was limited by the applicable Net Rate Cap;

     

    (ix)  the
      number and Stated Principal Balance of all of the Mortgage Loans for the related
      Distribution Date, together with updated pool composition information including
      the following: weighted average mortgage rate and weighted average remaining
      term;

     

    (x)  the
      Certificate Principal Balance or Certificate Notional Amount, as applicable,
      of
      each Class before and after giving effect (i) to all distributions allocable
      to
      principal on such Distribution Date and (ii) the allocation of any Applied
      Realized Loss Amounts for such Distribution Date;

     

    (xi)  the
      number and aggregate Stated Principal Balance of the Mortgage Loans (A)
      Delinquent (exclusive of Mortgage Loans in foreclosure and bankruptcy and those
      Liquidated Mortgage Loans as of the end of a Prepayment Period) (1) 30 days
      Delinquent, (2) 60 days Delinquent and (3) 90 days or more Delinquent, (B)
      in
      foreclosure and delinquent (1) 30 days Delinquent, (2) 60 days Delinquent and
      (3) 90 days or more Delinquent and
      (C)
      in bankruptcy and delinquent (1) 30 days Delinquent, (2) 60 days Delinquent
      and
      (3) 90 days or more Delinquent, in each case as of the close of business on
      the
      last day of the calendar month preceding such Distribution Date;

     

    (xii)  the
      amount of aggregate Advances included in the distribution on such Distribution
      Date (including the general purpose of such Advances), the aggregate amount
      of
      unreimbursed Advances as of the end of the Due Period, and the general source
      of
      funds for reimbursements;

     

    (xiii)  the
      amount of, if any, of excess cashflow or excess spread and the application
      of
      such excess cashflow;

     

    (xiv)  the
      cumulative amount of Applied Realized Loss Amounts through the end of the
      preceding month;

     

    (xv)  if
      applicable, material modifications, extensions or waivers to Mortgage Loan
      terms, fees, penalties or payments during the preceding calendar month or that
      have become material over time;

     

    (xvi)  with
      respect to any Mortgage Loan that was liquidated during the preceding calendar
      month, the aggregate Stated Principal Balance of, and Realized Loss on, such
      Mortgage Loans as of the close of business on the Determination Date preceding
      such Distribution Date;

     

    (xvii)  unless
      otherwise set forth in the Form 10-D relating to such distribution date,
      material breaches of pool asset representation or warranties or transaction
      covenants which have been reported to the securities administrator in accordance
      with this Agremeetn or the related Servicing Agreement;

     

    (xviii)  the
      total
      number and principal balance of any real estate owned or REO Properties as
      of
      the end of the related Due Period;

     

    (xix)  the
      three
      month rolling average of the percent equivalent of a fraction, the numerator
      of
      which is the aggregate Stated Principal Balance of the Mortgage Loans that
      are
      60 days or more delinquent or are in bankruptcy or foreclosure or are REO
      Properties, and the denominator of which is the aggregate Stated Principal
      Balance of all of the Mortgage Loans in
      each
      case as of the end of the Prepayment Period;

     

    (xx)  the
      Realized Losses as of the close of business on the last day of the calendar
      month preceding such Distribution Date and the cumulative Realized Losses
      through the end of the preceding month;

     

    (xxi)  whether
      a
      Trigger Event exists; 

     

    (xxii)  information
      on loss and delinquency used for determining early amortization, liquidation,
      stepdowns or other performance triggers and whether the trigger was
      met;

     

    (xxiii)  the
      amount of the Prepayment Charges remitted by the Servicers and the amount on
      deposit in the Reserve Fund; and

     

    (xxiv)  updated
      pool composition data including the following: weighted average mortgage rate
      and weighted average remaining term.

     

    The
      Securities Administrator may make the foregoing Monthly Statement (and, at
      its
      option, any additional files containing the same information in an alternative
      format) available each month to Certificateholders via the Securities
      Administrator’s internet website. The Securities Administrator’s internet
      website shall initially be located at “www.ctslink.com”. Assistance in using the
      website can be obtained by calling the Securities Administrator’s customer
      service desk at (301) 815-6600. Parties that are unable to use the above
      distribution options are entitled to have a paper copy mailed to them via first
      class mail by calling the customer service desk and indicating such. The
      Securities Administrator may change the way Monthly Statements are distributed
      in order to make such distributions more convenient or more accessible to the
      above parties.

     

    (b)  The
      Securities Administrator’s responsibility for making the above information
      available to the Certificateholders is limited to the availability, timeliness
      and accuracy of the information derived from the Master Servicer, the Company
      and the Servicers. The Securities Administrator will make available a copy
      of
      each statement provided pursuant to this Section 6.06 to each Rating
      Agency.

     

    (c)  Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall furnish upon request to each Person who at any time during
      the calendar year was a Certificateholder, the information set forth in clauses
      (a)(iv) and (a)(v) of this Section 6.06 aggregated for such calendar year or
      applicable portion thereof during which such Person was a Certificateholder.
      Such obligation of the Securities Administrator shall be deemed to have been
      satisfied to the extent that substantially comparable information shall be
      provided by the Trustee or the Securities Administrator pursuant to any
      requirements of the Code as from time to time in effect.

     

    (d)  Upon
      filing with the Internal Revenue Service, the Securities Administrator shall
      furnish to the Holders of the Residual Certificates the applicable Form 1066
      and
      each applicable Form 1066Q and shall respond promptly to written requests made
      not more frequently than quarterly by any Holder of a Residual Certificate
      with
      respect to the following matters:

     

    (i)  The
      original projected principal and interest cash flows on the Closing Date on
      each
      class of Regular Interests and Residual Interests created hereunder and on
      the
      Mortgage Loans, based on the Prepayment Assumption;

     

    (ii)  The
      projected remaining principal and interest cash flows as of the end of any
      calendar quarter with respect to each class of Regular Interests and Residual
      Interests created hereunder and the Mortgage Loans, based on the Prepayment
      Assumption;

     

    (iii)  The
      applicable Prepayment Assumption and any interest rate assumptions used in
      determining the projected principal and interest cash flows described
      above;

     

    (iv)  The
      original issue discount (or, in the case of the Mortgage Loans, market discount)
      or premium accrued or amortized through the end of such calendar quarter with
      respect to each class of Regular Interests or Residual Interests created
      hereunder and to the Mortgage Loans, together with each constant yield to
      maturity used in computing the same;

     

    (v)  The
      treatment of Realized Losses with respect to the Mortgage Loans or the Regular
      Interests created hereunder, including the timing and amount of any cancellation
      of indebtedness income of a REMIC with respect to such Regular Interests or
      bad
      debt deductions claimed with respect to the related Mortgage Loans;

     

    (vi)  The
      amount and timing of any non-interest expenses of a REMIC; and

     

    (vii)  Any
      taxes
      (including penalties and interest) imposed on the REMIC, including, without
      limitation, taxes on “prohibited transactions,” “contributions” or “net income
      from foreclosure property” or state or local income or franchise
      taxes.

     

    The
      information pursuant to clauses (i), (ii), (iii) and (iv) above shall be
      provided by the Depositor pursuant to Section 10.12. 

     

    Section
      6.07  REMIC
      Designations and REMIC Distributions. 

     

    (a)  The
      Trustee shall elect that each of REMIC I, REMIC II, REMIC III and REMIC IV
      shall
      be treated as a REMIC under Section 860D of the Code. Any inconsistencies or
      ambiguities in this Agreement or in the administration of this Agreement shall
      be resolved in a manner that preserves the validity of such REMIC elections.
      The
      assets of REMIC I shall include the Mortgage Loans and all interest owing in
      respect of and principal due thereon, the Distribution Account, the Protected
      Accounts, any REO Property, any proceeds of the foregoing and any other assets
      subject to this Agreement (other than the Reserve Fund and any Prepayment Charge
      Waiver Amounts). The REMIC I Regular Interests shall constitute the assets
      of
      REMIC II. The Class C Interest shall constitute assets of REMIC III. The Class
      P
      Interest shall constitute assets of REMIC IV.

     

    (b)  On
      each
      Distribution Date, the Interest Funds and Principal Funds, in the following
      order of priority, shall be deemed distributed by REMIC I to REMIC II on account
      of the REMIC I Regular Interests (other than REMIC I Regular Interest P) or
      withdrawn from the Distribution Account and distributed to the Holders of the
      Class R-1 Certificates, as the case may be:

     

    (i)  to
      the
      holders of the REMIC I Regular Interests (other than REMIC I Regular Interest
      P), pro rata, in an amount equal to (A) the Uncertificated Accrued Interest
      for
      each such REMIC I Regular Interest for such Distribution Date, plus (B) any
      amounts in respect thereof remaining unpaid from previous Distribution Dates.
      Amounts payable as Uncertificated Accrued Interest in respect of REMIC I Regular
      Interest ZZ shall be reduced and deferred when the REMIC I Overcollateralization
      Amount is less than the REMIC I Overcollateralization Target Amount, by the
      lesser of (x) the amount of such difference and (y) the REMIC I Regular Interest
      ZZ Maximum Interest Deferral Amount, and such amount will be payable to the
      holders of each REMIC I Regular Interest (other than REMIC I Regular Interest
      P)
      for which a Class A, Class M or Class B Certificate is the Corresponding
      Certificate, allocated in the same proportion as the Extra Principal
      Distribution Amount is allocated to the Corresponding Certificates, and the
      Uncertificated Principal Balance of REMIC I Regular Interest ZZ shall be
      increased by such amount;

     

    (ii)             
        from
      the
      remainder of the Interest Funds and Principal Funds for such Distribution Date
      after the distribution made pursuant to clause (i) above, allocated as
      follows:

     

    (A)  98.00%
      of
      such remainder to the holders of REMIC I Regular Interest AA, until the
      Uncertificated Principal Balance of such REMIC I Regular Interest is reduced
      to
      zero;

     

    (B)  2.00%
      of
      such remainder, first, to the holders of each REMIC I Regular Interest for
      which
      a Class A, Class M or Class B Certificate is the Corresponding Certificate,
      in
      an aggregate amount equal to 1.00% of and in the same proportion as principal
      payments are allocated to the Corresponding Certificates, until the
      Uncertificated Principal Balances of such REMIC I Regular Interests are reduced
      to zero, and second, to the holders of REMIC I Regular Interest ZZ, until the
      Uncertificated Principal Balance of such REMIC I Regular Interest is reduced
      to
      zero; and

     

    (C)  any
      remaining amount to the Holders of the Class R-1 Certificates.

     

    (c)  On
      each
      Distribution Date, all amounts representing Prepayment Charges shall be deemed
      distributed in respect of REMIC I Regular Interest P, provided that such amounts
      shall not reduce the Uncertificated Principal Balance of REMIC I Regular
      Interest P. On the Distribution Date immediately following the expiration of
      the
      latest Prepayment Charge term as identified on the Mortgage Loan Schedule,
      $100
      shall be deemed distributed in respect of REMIC I Regular Interest P in
      reduction of the Uncertificated Principal Balance thereof.

     

    (d) On
      each
      Distribution Date, an amount equal to the amounts distributed pursuant to
      Sections 6.04(a)(3)(C), (D) and (F) on such date shall be deemed distributed
      from REMIC II to REMIC III in respect of the Class C Distribution Amount
      distributable on the Class C Interest.

     

    (e) On
      each
      Distribution Date, 100% of the amounts deemed distributed on REMIC I Regular
      Interest P shall be deemed distributed by REMIC II to REMIC IV in respect of
      the
      Class P Interest.

     

    Section
      6.08  Reserve
      Fund. 

     

    (a)  The
      Securities Administrator shall establish a Reserve Fund on behalf of the Holders
      of the Class
      A,
      Class
      B, Class M and Class C Certificates. The Reserve Fund shall be an Eligible
      Account. The Reserve Fund shall be entitled “Reserve Fund, Wells Fargo Bank,
      N.A. as Securities Administrator for the benefit of Holders of Bear Stearns
      Asset Backed Securities I LLC, Asset-Backed Certificates, Series 2006-AC5,
      Class
      A-1, Class A-2, Class A-3, Class M-1, Class M-2, Class M-3, Class M-4, Class
      B-1, Class B-2, Class B-3, Class B-4 and Class C”. On the Closing Date, the
      Depositor will deposit, or cause to be deposited, into the Reserve Fund an
      amount equal to the Reserve Fund Deposit. On each Distribution Date as to which
      there is a Basis Risk Shortfall Carry Forward Amount payable to any Class of
      Certificates, the Securities Administrator shall deposit the amounts pursuant
      to
      clauses (C) and (D) of Section 6.04(a)(3) into the Reserve Fund, and the
      Securities Administrator has been directed by the Class C Certificateholder
      to
      distribute any amounts then on deposit in the Reserve Fund to the Holders of
      the
      Class A, Class M and Class B Certificates in respect of the Basis Risk Shortfall
      Carry Forward Amount for each such Class in the priorities set forth in clauses
      (C) and (D) of Section 6.04(a)(3). Any amount paid to the Holders of Class
      A,
      Class M or Class B Certificates from amounts distributable pursuant to clauses
      (C) and (D) of Section 6.04(a)(3) pursuant to the preceding sentence in respect
      of Basis Risk Shortfall Carry Forward Amounts shall be treated as distributed
      to
      the Class C Certificateholder in respect of the Class C Certificates and paid
      by
      the Class C Certificateholder to the Holders of the Class A, Class M or Class
      B
      Certificates. Any payments to the Holders of the Class A, Class M or Class
      B in
      respect of Basis Risk Shortfall Carry Forwards Amounts pursuant to the second
      preceding sentence shall not be payments with respect to a Regular Interest
      in a
      REMIC within the meaning of Section 860G(a)(1) of the Code.

     

    (b)  The
      Reserve Fund is an “outside reserve fund” within the meaning of Treasury
      Regulation Section 1.860G-2(h) and shall be an asset of the Trust Fund but
      not
      an asset of any REMIC. The Securities Administrator on behalf of the Trust
      shall
      be the nominal owner of the Reserve Fund. The Class C Certificateholders shall
      be the beneficial owners of the Reserve Fund, subject to the power of the
      Securities Administrator to transfer amounts under Section 6.04(a)(3). Amounts
      in the Reserve Fund shall be held either uninvested in a trust or deposit
      account of the Securities Administrator with no liability for interest or other
      compensation thereof or, at the direction of the Class C Certificateholder,
      be
      invested in Permitted Investments that mature no later than the Business Day
      prior to the next succeeding Distribution Date. All net income and gain from
      such investments shall be distributed to the Class C Certificateholder, not
      as a
      distribution in respect of any interest in any REMIC, on such Distribution
      Date.
      All amounts earned on amounts on deposit in the Reserve Fund shall be taxable
      to
      the Class C Certificateholder. Any losses on such investments shall be deposited
      in the Reserve Fund by the Class C Certificateholder out of its own funds
      immediately as realized. In the event that the Class C Certificateholder shall
      fail to provide investment instructions to the Securities Administrator, the
      amounts on deposit in the Reserve Fund shall be held uninvested.

     

    (c)  For
      federal tax return and information reporting, the right of the Holders of the
      Class A, Class M and Class B Certificates to receive payments from the Reserve
      Fund in respect of any Basis Risk Shortfall Carry Forward Amounts shall be
      assigned a value of zero.

     

    Section
      6.09  Class
      P
      Certificate Account. 

     

    The
      Securities Administrator shall establish and maintain with itself a separate,
      segregated trust account for each of the Class P Certificates, titled “Bear
      Stearns Asset-Backed Securities I Trust 2006-AC5 Class P Certificate Account”
(the “Class P Certificate Account”). On the Closing Date, the Depositor will
      deposit, or cause to be deposited in the Class P Certificate Account $100.00.
      Prepayment charges shall be allocated to the Class P Certificate. The
      amount on deposit in the Class P Certificate Account shall be held uninvested.
      On the Distribution Date immediately following the expiration of the latest
      Prepayment Charge term as identified on the Mortgage Loan Schedule, the
      Securities Administrator shall withdraw the amount on deposit in the Class
      P
      Certificate Account and remit such amount to the Holders of the Class P
      Certificates in reduction of the Certificate Principal Balance
      thereof.

     

    ARTICLE
      VII

    THE
      CERTIFICATES

     

    Section
      7.01  The
      Certificates. 

     

    The
      Certificates shall be substantially in the forms attached hereto as Exhibits
      A-1
      through A-7. The Certificates shall be issuable in registered form, in the
      minimum dollar denominations, integral dollar multiples in excess thereof
      (except that one Certificate of each Class may be issued in a different amount
      which must be in excess of the applicable minimum dollar denomination) and
      aggregate dollar denominations as set forth in the following table:

     

    

    
      	
              Class

            	 	
              Minimum
                Denomination

            	 	
              Integral
                Multiple in Excess of Minimum

            	 	
              Initial
                Certificate Principal Balance

            	 	
              Pass-Through
                Rate

            	 
	
              A-1

            	 	
              $

            	
              100,000

            	 	
              $

            	
              1,000

            	 	
              $

            	
              201,190,000.00

            	 	
              Class
                A-1 Pass-Through Rate

            	 
	
              A-2

            	 	
              $

            	
              100,000

            	 	
              $

            	
              1,000

            	 	
              $

            	
              15,981,000.00

            	 	
              Class
                A-2 Pass-Through Rate

            	 
	
              A-3

            	 	
              $

            	
              1,000

            	 	
              $

            	
              1

            	 	
              $

            	
              26,000,000.00

            	 	
              Class
                A-3 Pass-Through Rate

            	 
	
              M-1

            	 	
              $

            	
              100,000

            	 	
              $

            	
              1,000

            	 	
              $

            	
              6,891,000.00

            	 	
              Class
                M-1 Pass-Through Rate

            	 
	
              M-2

            	 	
              $

            	
              100,000

            	 	
              $

            	
              1,000

            	 	
              $

            	
              3,843,000.00

            	 	
              Class
                M-2 Pass-Through Rate

            	 
	
              M-3

            	 	
              $

            	
              100,000

            	 	
              $

            	
              1,000

            	 	
              $

            	
              1,855,000.00

            	 	
              Class
                M-3 Pass-Through Rate

            	 
	
              M-4

            	 	
              $

            	
              100,000

            	 	
              $

            	
              1,000

            	 	
              $

            	
              1,325,000.00

            	 	
              Class
                M-4 Pass-Through Rate

            	 
	
              B-1

            	 	
              $

            	
              100,000

            	 	
              $

            	
              1,000

            	 	
              $

            	
              1,325,000.00

            	 	
              Class
                B-1 Pass-Through Rate

            	 
	
              B-2

            	 	
              $

            	
              100,000

            	 	
              $

            	
              1,000

            	 	
              $

            	
              928,000.00

            	 	
              Class
                B-2 Pass-Through Rate

            	 
	
              B-3

            	 	
              $

            	
              100,000

            	 	
              $

            	
              1,000

            	 	
              $

            	
              1,325,000.00

            	 	
              Class
                B-3 Pass-Through Rate

            	 
	
              B-4

            	 	
              $

            	
              100,000

            	 	
              $

            	
              1,000

            	 	
              $

            	
              1,723,000.00

            	 	
              Class
                B-4 Pass-Through Rate

            	 
	
              C

            	 	
              $

            	
              100,000

            	 	
              $

            	
              1,000

            	 	
              $

            	
              265,037,284.33

            	
              (1)

            	
              (3)

            	 
	
              P

            	 	
              $

            	
              100

            	 	 	
              N/A

            	 	
              $

            	
              100.00

            	
              (2)

            	
              N/A

            	 
	
              R-1

            	 	 	
              100

            	
              %

            	 	
              N/A

            	 	 	
              N/A

            	
              (2)

            	
              N/A

            	 
	
              R-2

            	 	 	
              100

            	
              %

            	 	
              N/A

            	 	 	
              N/A

            	
              (2)

            	
              N/A

            	 
	
              RX

            	 	 	
              100

            	
              %

            	 	
              N/A

            	 	 	
              N/A

            	
              (2)

            	
              N/A

            	 

    

    

    
      	
              (1)

            	
              This
                is a notional amount. 

            

    

    
      	
              (2)

            	
              The
                Class P, Class R-1, Class R-2 and Class RX Certificates are not entitled
                to distributions in respect of
                interest

            

    

    
      	
              (3)

            	
              As
                defined in “Pass-Through Rate”
definition.

            

    

    

    The
      Certificates shall be executed by manual or facsimile signature on behalf of
      the
      Securities Administrator 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 Securities
      Administrator shall bind the Securities Administrator, notwithstanding that
      such
      individuals or any of them have ceased to be so authorized prior to the
      authentication and delivery of such Certificates or did not hold such offices
      at
      the date of such authentication and delivery. No Certificate shall be entitled
      to any benefit under this Agreement, or be valid for any purpose, unless there
      appears on such Certificate the countersignature of the Securities Administrator
      by manual signature, and such countersignature upon any Certificate shall be
      conclusive evidence, and the only evidence, that such Certificate has been
      duly
      countersigned and delivered hereunder. All Certificates shall be dated the
      date
      of their countersignature. On the Closing Date, the Securities Administrator
      shall authenticate the Certificates to be issued at the written direction of
      the
      Depositor, or any affiliate thereof.

     

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

     

    Section
      7.02  Certificate
      Register; Registration of Transfer and Exchange of Certificates. 

     

    (a)  The
      Securities
      Administrator
      shall
      maintain, or cause to be maintained in accordance with the provisions of Section
      7.09 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 Securities
      Administrator
      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 Securities
      Administrator shall
      authenticate and deliver, in the name of the designated transferee or
      transferees, one or more new Certificates of the same Class and of like
      aggregate Percentage Interest.

     

    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 Securities Administrator. Whenever
      any
      Certificates are so surrendered for exchange, the Securities Administrator
      shall
      execute, authenticate, and deliver the Certificates that 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 Securities
      Administrator 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
      canceled and subsequently destroyed by the Securities Administrator in
      accordance with the Securities Administrator’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 the Securities 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 Securities
      Administrator in writing the facts surrounding the Transfer in substantially
      the
      forms set forth in Exhibit D (the “Transferor Certificate”) and (x) deliver a
      letter in substantially the form of either Exhibit E (the “Investment Letter”)
      or Exhibit F (the “Rule 144A Letter”) or (y) there shall be delivered to the
      Securities Administrator an Opinion of Counsel addressed to the Securities
      Administrator that such Transfer may be made pursuant to an exemption from
      the
      Securities Act, which Opinion of Counsel shall not be an expense of the
      Depositor, the Seller, the Master Servicer, the Securities Administrator or
      the
      Trustee; provided, however, that such representation letters will not be
      required in connection with any transfer of any such Certificate by the
      Depositor to an affiliate of the Depositor and the Trustee and the Securities
      Administrator shall be entitled to conclusively rely upon a representation
      (which, upon the request of the Trustee or the Securities Administrator, shall
      be a written representation) from the Depositor of the status of such transferee
      as an affiliate of the Depositor. 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 Securities Administrator
      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. Notwithstanding
      the
      provisions of the immediately preceding sentence, no restrictions shall apply
      with respect to the transfer or registration of transfer of a beneficial
      interest in any Certificate that is a Global Certificate of a Class to a
      transferee that takes delivery in the form of a beneficial interest in the
      Global Certificate of such Class provided that each such transferee shall be
      deemed to have made such representations and warranties contained in the Rule
      144A and Related Matters Certificate as are sufficient to establish that it
      is a
      QIB. Each Holder of a Private Certificate desiring to effect such Transfer
      shall, and does hereby agree to, indemnify the Trustee, the Depositor, the
      Seller, the Securities Administrator 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 either (i)
      the
      Master Servicer and the Securities Administrator shall have received a
      representation from the transferee of such Certificate acceptable to and in
      form
      and substance satisfactory to the Master Servicer and the Securities
      Administrator, to the effect that such transferee is not an employee benefit
      plan subject to Section 406 of ERISA and/or a plan subject to Section 4975
      of
      the Code, or a Person acting on behalf of any such plan or using the assets
      of
      any such plan, or (ii) in the case of any such ERISA Restricted Certificate
      presented for registration in the name of an employee benefit plan subject
      to
      ERISA, or a plan subject to 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, the Securities Administrator shall have
      received an Opinion of Counsel for the benefit of the Trustee, the Master
      Servicer and the Securities Administrator and on which they may rely,
      satisfactory to the Securities Administrator, to the effect that the purchase
      and holding of such ERISA Restricted Certificate is permissible under applicable
      law, will not constitute or result in the assets of the Trust being deemed
      to be
“plan assets” under ERISA or the Code, will not result in any prohibited
      transactions under ERISA or Section 4975 of the Code and will not subject the
      Trustee, the Master Servicer, the Depositor or the Securities Administrator
      to
      any obligation in addition to those expressly undertaken in this Agreement,
      which Opinion of Counsel shall not be an expense of the Trustee, the Master
      Servicer, the Depositor or the Securities Administrator, or, in the case of
      a
      Class B-4 Certificate, the transferee provides a representation, or deemed
      representation in the case of the Global Certificate or an opinion of counsel
      to
      the effect that the proposed transfer and holding of such Certificate and the
      servicing, management and operation of the Trustee and its assets: (I) will
      not
      result in any prohibited transaction which is not covered under an individual
      or
      class prohibited transaction exemption, including, but not limited to,
      Prohibited Transaction Class Exemption (“PTCE”) 84-14, PTCE 91-38, PTCE 90-1,
      PTCE 95-60 or PTCE 96-23 and (II) will not give rise to any additional
      obligations on the part of the Depositor, the Securities Administrator, the
      Master Servicer or the Trustee. Notwithstanding anything else to the contrary
      herein, any purported transfer of an ERISA Restricted Certificate to or on
      behalf of an employee benefit plan subject to Section 406 of ERISA and/or a
      plan
      subject to Section 4975 of the Code without the delivery of the Opinion of
      Counsel as described above shall be void and of no effect; provided that the
      restriction set forth in this sentence shall not be applicable if there has
      been
      delivered to the Securities Administrator an Opinion of Counsel meeting the
      requirements of clause (ii) of the first sentence of this paragraph. None of
      the
      Trustee, the Securities Administrator or the Master Servicer shall be required
      to monitor, determine or inquire as to compliance with the transfer restrictions
      with respect to any ERISA Restricted Certificate that is a Book-Entry
      Certificate, and none of the Trustee, the Securities Administrator or the Master
      Servicer shall have any liability for transfers of any such Book-Entry
      Certificates made through the book-entry facilities of any Depository or between
      or among participants of the Depository or Certificate Owners made in violation
      of the transfer restrictions set forth herein. None of the Trustee, the
      Securities Administrator or the Master Servicer shall be under any liability
      to
      any Person for any registration of transfer of any ERISA Restricted Certificate
      that is in fact not permitted by this Section 7.02(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. The Trustee
      and
      the Securities Administrator shall each be entitled, but not obligated, to
      recover from any Holder of any ERISA Restricted Certificate that was in fact
      an
      employee benefit plan subject to Section 406 of ERISA or a plan subject to
      Section 4975 of the Code or a Person acting on behalf of any such plan at the
      time it became a Holder or, at such subsequent time as it became such a plan
      or
      Person acting on behalf of such a plan, all payments made on such ERISA
      Restricted Certificate at and after either such time. Any such payments so
      recovered by the Trustee or the Securities Administrator shall be paid and
      delivered by the Trustee or the Securities Administrator to the last preceding
      Holder of such Certificate that is not such a plan or Person acting on behalf
      of
      a plan.

     

    Each
      beneficial owner of a Class M Certificate and Class B Certificate, except for
      a
      Class B-4 Certificate, or any interest therein shall be deemed to have
      represented, by virtue of its acquisition or holding of that certificate or
      interest therein, that either (i) it is not a Plan or investing with “Plan
      Assets”, (ii) it has acquired and is holding such certificate in reliance on the
      Exemption, and that it understands that there are certain conditions to the
      availability of the Exemption, including that the certificate must be rated,
      at
      the time of purchase, not lower than “BBB-”(or its equivalent) by S&P, Fitch
      Ratings or Moody’s, and the certificate is so rated or (iii) (1) it is an
      insurance company, (2) the source of funds used to acquire or hold the
      certificate or interest therein is an “insurance company general account,” as
      such term is defined in Prohibited Transaction Class Exemption (“PTCE”) 95-60,
      and (3) the conditions in Sections I and III of PTCE 95-60 have been
      satisfied.

     

    (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 Securities
      Administrator of any change or impending change in its status as a Permitted
      Transferee.

     

    (ii)  No
      Ownership Interest in a Residual Certificate may be registered on the Closing
      Date or thereafter transferred, and the Securities
      Administrator
      shall
      not register the Transfer of any Residual Certificate unless, in addition to
      the
      certificates required to be delivered to the Securities
      Administrator
      under
      subparagraph (b) above, the Securities
      Administrator
      shall
      have been furnished with an affidavit (a “Transfer Affidavit”) of the initial
      owner or the proposed transferee in the form attached hereto as Exhibit
      C.

     

    (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 7.02(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 7.02(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. Neither the Trustee nor the Securities Administrator shall be
      under
      any liability to any Person for any registration of Transfer of a Residual
      Certificate that is in fact not permitted by Section 7.02(b) and this Section
      7.02(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. The Securities
      Administrator
      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 Securities Administrator shall be paid and
      delivered by the Securities Administrator to the last preceding Permitted
      Transferee of such Certificate.

     

    (v)  The
      Master Servicer shall make available within 60 days of written request from
      the
Securities
      Administrator,
      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
      7.02(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 Securities Administrator of an Opinion of Counsel addressed
      to
      the Securities Administrator, which Opinion of Counsel shall not be an expense
      of the Trustee, the Securities Administrator, the Seller or the Master Servicer
      to the effect that the elimination of such restrictions will not cause REMIC
      I,
      REMIC II, REMIC III or REMIC IV, as applicable, 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 that, based on an Opinion of Counsel
      addressed to the Securities Administrator and furnished to the Securities
      Administrator, 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 that
      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 7.02 shall not be an expense of the Trust Fund, the Trustee, the
      Depositor, the Seller, the Securities Administrator or the Master
      Servicer.

     

    (e)  Subject
      to Subsection 7.02(i), so long as a Global Certificate of such Class is
      outstanding and is held by or on behalf of the Depository, transfers of
      beneficial interests in such Global Certificate, or transfers by holders of
      Individual Certificates of such Class to transferees that take delivery in
      the
      form of beneficial interests in the Global Certificate, may be made only in
      accordance with Subsection 7.02(b) and in accordance with the rules of the
      Depository:

     

    (i)  In
      the
      case of a beneficial interest in the Global Certificate being transferred to
      an
      Institutional Accredited Investor, such transferee shall be required to take
      delivery in the form of an Individual Certificate or Certificates and the
      Securities Administrator shall register such transfer only upon compliance
      with
      the provisions of Subsection 7.02(b).

     

    (ii)  In
      the
      case of a beneficial interest in a Class of Global Certificates being
      transferred to a transferee that takes delivery in the form of an Individual
      Certificate or Certificates of such Class, except as set forth in clause (i)
      above, the Securities Administrator shall register such transfer only upon
      compliance with the provisions of Subsection 7.02(b).

     

    (iii)  In
      the
      case of an Individual Certificate of a Class being transferred to a transferee
      that takes delivery in the form of a beneficial interest in a Global Certificate
      of such Class, the Securities Administrator shall register such transfer if
      the
      transferee has provided the Securities Administrator with a Rule 144A and
      Related Matters Certificate or comparable evidence as to its QIB
      status.

     

    (iv)  No
      restrictions shall apply with respect to the transfer or registration of
      transfer of a beneficial interest in the Global Certificate of a Class to a
      transferee that takes delivery in the form of a beneficial interest in the
      Global Certificate of such Class; provided that each such transferee shall
      be
      deemed to have made such representations and warranties contained in the Rule
      144A and Related Matters Certificate as are sufficient to establish that it
      is a
      QIB.

     

    (f)  Subject
      to Subsection 7.02(h), an exchange of a beneficial interest in a Global
      Certificate of a Class for an Individual Certificate or Certificates of such
      Class, an exchange of an Individual Certificate or Certificates of a Class
      for a
      beneficial interest in the Global Certificate of such Class and an exchange
      of
      an Individual Certificate or Certificates of a Class for another Individual
      Certificate or Certificates of such Class (in each case, whether or not such
      exchange is made in anticipation of subsequent transfer, and, in the case of
      the
      Global Certificate of such Class, so long as such Certificate is outstanding
      and
      is held by or on behalf of the Depository) may be made only in accordance with
      this Subsection 7.02(e) and in accordance with the rules of the
      Depository:

     

    (i)  A
      holder
      of a beneficial interest in a Global Certificate of a Class may at any time
      exchange such beneficial interest for an Individual Certificate or Certificates
      of such Class.

     

    (ii)  A
      holder
      of an Individual Certificate or Certificates of a Class may exchange such
      Certificate or Certificates for a beneficial interest in the Global Certificate
      of such Class if such holder furnishes to the Securities Administrator a Rule
      144A and Related Matters Certificate or comparable evidence as to its QIB
      status.

     

    (iii)  A
      holder
      of an Individual Certificate of a Class may exchange such Certificate for an
      equal aggregate principal amount of Individual Certificates of such Class in
      different authorized denominations without any certification.

     

    (g)  (i)Upon
      acceptance for exchange or transfer of an Individual Certificate of a Class
      for
      a beneficial interest in a Global Certificate of such Class as provided herein,
      the Securities Administrator shall cancel such Individual Certificate and shall
      (or shall request the Depository to) endorse on the schedule affixed to the
      applicable Global Certificate (or on a continuation of such schedule affixed
      to
      the Global Certificate and made a part thereof) or otherwise make in its books
      and records an appropriate notation evidencing the date of such exchange or
      transfer and an increase in the certificate balance of the Global Certificate
      equal to the certificate balance of such Individual Certificate exchanged or
      transferred therefor.

     

    (ii)  Upon
      acceptance for exchange or transfer of a beneficial interest in a Global
      Certificate of a Class for an Individual Certificate of such Class as provided
      herein, the Securities
      Administrator shall
      (or
      shall request the Depository to) endorse on the schedule affixed to such Global
      Certificate (or on a continuation of such schedule affixed to such Global
      Certificate and made a part thereof) or otherwise make in its books and records
      an appropriate notation evidencing the date of such exchange or transfer and
      a
      decrease in the certificate balance of such Global Certificate equal to the
      certificate balance of such Individual Certificate issued in exchange therefor
      or upon transfer thereof.

     

    (h)  Any
      Individual Certificate issued in exchange for or upon transfer of another
      Individual Certificate or of a beneficial interest in a Global Certificate
      shall
      bear the applicable legends set forth in Exhibit A-2.

     

    (i)  Subject
      to the restrictions on transfer and exchange set forth in this Section 7.02,
      the
      holder of any Individual Certificate may transfer or exchange the same in whole
      or in part (in an initial certificate balance equal to the minimum authorized
      denomination set forth in Section 7.01 above or any integral multiple of $1.00
      in excess thereof) by surrendering such Certificate at the Corporate Trust
      Office, or at the office of any transfer agent, together with an executed
      instrument of assignment and transfer satisfactory in form and substance to
      the
      Securities Administrator and the Securities Administrator in the case of
      transfer and a written request for exchange in the case of exchange. The holder
      of a beneficial interest in a Global Certificate may, subject to the rules
      and
      procedures of the Depository, cause the Depository (or its nominee) to notify
      the Securities Administrator and the Securities Administrator in writing of
      a
      request for transfer or exchange of such beneficial interest for an Individual
      Certificate or Certificates. Following a proper request for transfer or
      exchange, the Securities Administrator shall, within five Business Days of
      such
      request made at the Corporate Trust Office, sign, countersign and deliver at
      the
      Corporate Trust Office, to the transferee (in the case of transfer) or holder
      (in the case of exchange) or send by first class mail at the risk of the
      transferee (in the case of transfer) or holder (in the case of exchange) to
      such
      address as the transferee or holder, as applicable, may request, an Individual
      Certificate or Certificates, as the case may require, for a like aggregate
      Percentage Interest and in such authorized denomination or denominations as
      may
      be requested. The presentation for transfer or exchange of any Individual
      Certificate shall not be valid unless made at the Corporate Trust Office by
      the
      registered holder in person, or by a duly authorized
      attorney-in-fact.

     

    Neither
      the Trustee nor the Securities Administrator nor the Master Servicer shall
      be
      required to monitor, determine or inquire as to compliance with the transfer
      restrictions with respect to the Global Certificates. Any attempted or purported
      transfer of any Certificate in violation of the provisions of Subsections (a)
      or
      (b) above shall be void ab initio and such Certificate shall be considered
      to
      have been held continuously by the prior permitted Certificateholder. Any
      transferor of any Certificate in violation of such provisions, shall indemnify
      and hold harmless the Trustee, the Securities Administrator and the Master
      Servicer from and against any and all liabilities, claims, costs or expenses
      incurred by the Securities Administrator, the Trustee or the Master Servicer
      as
      a result of such attempted or purported transfer. Neither the Trustee nor the
      Securities Administrator shall have any liability for transfer of any such
      Global Certificates in or through book-entry facilities of any Depository or
      between or among Depository Participants or Certificate Owners made in violation
      of the transfer restrictions set forth herein.

     

    Section
      7.03  Mutilated,
      Destroyed, Lost or Stolen Certificates. 

     

    If
      any
      mutilated Certificate is surrendered to the Securities Administrator, or the
      Securities Administrator receives evidence to its satisfaction of the
      destruction, loss or theft of any Certificate and of the ownership
      thereof.

     

    Section
      7.04  Persons
      Deemed Owners. 

     

    The
      Securities Administrator, the Trustee and any agent of the Securities
      Administrator 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 Securities Administrator, the Trustee nor any agent
      of the Securities Administrator or the Trustee shall be affected by any notice
      to the contrary.

     

    Section
      7.05  Access
      to
      List of Certificateholders’ Names and Addresses. 

     

    If
      three
      or more Certificateholders (a) request such information in writing from the
      Securities Administrator, (b) state that such Certificateholders desire to
      communicate with other Certificateholders with respect to their rights under
      this Agreement or under the Certificates, and (c) provide a copy of the
      communication that such Certificateholders propose to transmit or if the
      Depositor or the Master Servicer shall request such information in writing
      from
      the Securities Administrator, then the Securities Administrator shall, within
      ten Business Days after the receipt of such request, provide the Depositor,
      the
      Master Servicer or such Certificateholders at such recipients’ expense the most
      recent list of the Certificateholders of the Trust Fund held by the Securities
      Administrator, if any. The Depositor and every Certificateholder, by receiving
      and holding a Certificate, agree that the Securities Administrator shall not
      be
      held accountable by reason of the disclosure of any such information as to
      the
      list of the Certificateholders hereunder, regardless of the source from which
      such information was derived.

     

    Section
      7.06  Book-Entry
      Certificates. 

     

    The
      Offered Certificates, upon original issuance, shall be issued in the form of
      one
      or more typewritten Certificates representing the Book-Entry Certificates,
      to be
      delivered to the Depository by or on behalf of the Depositor. Such Certificates
      shall initially be registered on the Certificate Register in the name of the
      Depository or its nominee, and no Certificate Owner of such Certificates will
      receive a definitive certificate representing such Certificate Owner’s interest
      in such Certificates, except as provided in Section 7.08. Unless and until
      definitive, fully registered Certificates (“Definitive Certificates”) have been
      issued to the Certificate Owners of such Certificates pursuant to Section
      7.08:

     

    (a)  the
      provisions of this Section shall be in full force and effect;

     

    (b)  the
      Depositor, the Securities Administrator and the Trustee may deal with the
      Depository and the Depository Participants for all purposes (including the
      making of distributions) as the authorized representative of the respective
      Certificate Owners of such Certificates;

     

    (c)  registration
      of the Book-Entry Certificates may not be transferred by the Securities
      Administrator except to another Depository;

     

    (d)  the
      rights of the respective Certificate Owners of such Certificates shall be
      exercised only through the Depository and the Depository Participants and shall
      be limited to those established by law and agreements between the Owners of
      such
      Certificates and the Depository and/or the Depository Participants. Pursuant
      to
      the Depository Agreement, unless and until Definitive Certificates are issued
      pursuant to Section 7.08, the Depository will make book-entry transfers among
      the Depository Participants and receive and transmit distributions of principal
      and interest on the related Certificates to such Depository
      Participants;

     

    (e)  the
      Depository may collect its usual and customary fees, charges and expenses from
      its Depository Participants;

     

    (f)  the
      Securities
      Administrator
      may rely
      and shall be fully protected in relying upon information furnished by the
      Depository with respect to its Depository Participants; and

     

    (g)  to
      the
      extent that the provisions of this Section conflict with any other provisions
      of
      this Agreement, the provisions of this Section shall control.

     

    For
      purposes of any provision of this Agreement requiring or permitting actions
      with
      the consent of, or at the direction of, Certificateholders evidencing a
      specified percentage of the aggregate unpaid principal amount of any Class
      of
      Certificates, such direction or consent may be given by Certificate Owners
      (acting through the Depository and the Depository Participants) owning
      Book-Entry Certificates evidencing the requisite percentage of principal amount
      of such Class of Certificates.

     

    The
      Private Certificates shall initially be held in fully registered certificated
      form. If at any time the Holders of all of the Certificates of one or more
      such
      Classes request that the Securities Administrator cause such Class to become
      Global Certificates, the Depositor (with the assistance of the Securities
      Administrator) will take such action as may be reasonably required to cause
      the
      Depository to accept such Class or Classes for trading if it may legally be
      so
      traded. If at anytime there are to be Global Certificates, the Global
      Certificates shall be delivered to the Depository by the Depositor or deposited
      with the Securities Administrator as custodian for the Depository.

     

    All
      transfers by Certificate Owners of such respective Classes of Book-Entry
      Certificates and any Global Certificates shall be made in accordance with the
      procedures established by the Depository Participant or brokerage firm
      representing such Certificate Owners. 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.

     

    Section
      7.07  Notices
      to Depository. 

     

    Whenever
      any notice or other communication is required to be given to Certificateholders
      of a Class with respect to which Book-Entry Certificates have been issued,
      unless and until Definitive Certificates shall have been issued to the related
      Certificate Owners, the Securities Administrator shall give all such notices
      and
      communications to the Depository.

     

    Section
      7.08  Definitive
      Certificates. 

     

    If,
      after
      Book-Entry Certificates have been issued with respect to any Certificates,
      (a)
      the Depositor or the Depository advises the Securities Administrator that the
      Depository is no longer willing or able to discharge properly its
      responsibilities under the Depository Agreement with respect to such
      Certificates and the Depositor is unable to locate a qualified successor, (b)
      the Depositor, at its sole option, advises the Securities Administrator that
      it
      elects to terminate the book-entry system with respect to such Certificates
      through the Depository or (c) after the occurrence and continuation of an Event
      of Default, Certificate Owners of such Book-Entry Certificates having not less
      than 51% of the Voting Rights evidenced by any Class of Book-Entry Certificates
      advise the Securities Administrator and the Depository in writing through the
      Depository Participants that the continuation of a book-entry system with
      respect to Certificates of such Class through the Depository (or its successor)
      is no longer in the best interests of the Certificate Owners of such Class,
      then
      the Securities Administrator shall notify all Certificate Owners of such
      Certificates, through the Depository, of the occurrence of any such event and
      of
      the availability of Definitive Certificates to applicable Certificate Owners
      requesting the same. The Depositor shall provide the Securities Administrator
      with an adequate inventory of certificates to facilitate the issuance and
      transfer of Definitive Certificates. Upon surrender to the Securities
      Administrator of any such Certificates by the Depository, accompanied by
      registration instructions from the Depository for registration, the Securities
      Administrator shall countersign and deliver such Definitive Certificates.
      Neither the Depositor nor the Securities Administrator shall be liable for
      any
      delay in delivery of such instructions and each may conclusively rely on, and
      shall be protected in relying on, such instructions. Upon the issuance of such
      Definitive Certificates, all references herein to obligations imposed upon
      or to
      be performed by the Depository shall be deemed to be imposed upon and performed
      by the Securities Administrator, to the extent applicable with respect to such
      Definitive Certificates and the Trustee and the Securities Administrator shall
      recognize the Holders of such Definitive Certificates as Certificateholders
      hereunder.

     

    Section
      7.09  Maintenance
      of Office or Agency. 

     

    The
      Securities Administrator will maintain or cause to be maintained at its expense
      an office or offices or agency or agencies at Wells Fargo Bank, National
      Association, Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479
      where Certificates may be surrendered for registration of transfer or exchange.
      The Securities Administrator will give prompt written notice to the
      Certificateholders of any change in such location of any such office or
      agency.

     

    ARTICLE
      VIII

    THE
      COMPANY AND THE MASTER SERVICER

     

    Section
      8.01  Liabilities
      of the Depositor, the Company and the Master Servicer. 

     

    Each
      of
      the Depositor, the Company and the Master Servicer shall be liable in accordance
      herewith only to the extent of the obligations specifically imposed upon and
      undertaken by it herein.

     

    Section
      8.02  Merger
      or
      Consolidation of the Depositor, the Company or the Master Servicer. 

     

    (a)  Each
      of
      the Depositor, the Company and the Master Servicer will keep in full force
      and
      effect its existence, rights and franchises as a corporation under the laws
      of
      the state of its incorporation, 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, the Certificates or any of the Mortgage Loans
      and to perform its duties under this Agreement.

     

    (b)  Any
      Person into which the Depositor, the Company or the Master Servicer may be
      merged or consolidated, or any corporation resulting from any merger or
      consolidation to which the Depositor, the Company or the Master Servicer shall
      be a party, or any Person succeeding to the business of the Depositor, the
      Company or the Master Servicer, shall be the successor of the Depositor, the
      Company or the Master Servicer hereunder, without the execution or filing of
      any
      paper or further act on the part of any of the parties hereto, anything herein
      to the contrary notwithstanding.

     

    Section
      8.03  Indemnification
      of the Trustee, the Master Servicer and the Securities
      Administrator. 

     

    (a)  The
      Master Servicer agrees to indemnify the Indemnified Persons for, and to hold
      them harmless against, any loss, liability or expense (including reasonable
      legal fees and disbursements of counsel) incurred on their part that may be
      sustained in connection with, arising out of, or relating to, any claim or
      legal
      action (including any pending or threatened claim or legal action) relating
      to
      this Agreement, including the powers of attorney delivered pursuant to Sections
      4.01 and 4.05 hereof, the Assignment Agreements, the Custodial Agreement or
      the
      Certificates (i) related to the Master Servicer’s failure to perform its duties
      in compliance with this Agreement (except as any such loss, liability or expense
      shall be otherwise reimbursable pursuant to this Agreement) or (ii) incurred
      by
      reason of the Master Servicer’s willful misfeasance, bad faith or gross
      negligence in the performance of duties hereunder or by reason of reckless
      disregard of obligations and duties hereunder, provided, in each case, that
      with
      respect to any such claim or legal action (or pending or threatened claim or
      legal action), the Trustee shall have given the Master Servicer and the Seller
      written notice thereof promptly after a responsible officer of the Trustee
      shall
      have with respect to such claim or legal action actual knowledge thereof;
      provided, however, the failure to give such notice shall not relieve the Master
      Servicer of its indemnification obligations hereunder. This indemnity shall
      survive the resignation or removal of the Trustee, Master Servicer or the
      Securities Administrator and the termination of this Agreement.

     

    (b)  The
      Company agrees to indemnify the Indemnified Persons and to hold them harmless
      from and against any and all claims, losses, damages, penalties, fines,
      forfeitures, legal fees and related costs, judgments, and any other costs,
      fees
      and expenses that the Indemnified Persons may sustain in any way related to
      the
      failure of the Company to perform in any way its duties and service the EMC
      Mortgage Loans in strict compliance with the terms of this Agreement and for
      breach of any representation or warranty of the Company contained herein. The
      Company shall immediately notify the Master Servicer and the Trustee if a claim
      is made by a third party with respect to this Agreement or the EMC Mortgage
      Loans, assume (with the consent of the Master Servicer and the Trustee and
      with
      counsel reasonably satisfactory to the Master Servicer and the Trustee) the
      defense of any such claim and pay all expenses in connection therewith,
      including counsel fees, and promptly pay, discharge and satisfy any judgment
      or
      decree which may be entered against it or any Indemnified Person in respect
      of
      such claim but failure to so notify the Company shall not limit its obligations
      hereunder. The Company agrees that it will not enter into any settlement of
      any
      such claim without the consent of the Indemnified Persons unless such settlement
      includes an unconditional release of such Indemnified Persons from all liability
      that is the subject matter of such claim. The provisions of this Section 8.03(b)
      shall survive termination of this Agreement.

     

    (c)  The
      Seller will indemnify any Indemnified Person for any loss, liability or expense
      of any Indemnified Person not otherwise paid or covered pursuant to Subsections
      (a) or (b) above.

     

    Section
      8.04  Limitations
      on Liability of the Depositor, the Company, the Master Servicer and
      Others. 

     

    Subject
      to the obligation of the Seller, the Company and the Master Servicer to
      indemnify the Indemnified Persons pursuant to Section 8.03:

     

    (a)  Neither
      the Depositor, the Company, the Master Servicer nor any of the directors,
      officers, employees or agents of the Depositor, the Company and the Master
      Servicer shall be under any liability to the Indemnified Persons, the Trust
      Fund
      or the Certificateholders for taking any action or for refraining from taking
      any action in good faith pursuant to this Agreement, or for errors in judgment;
      provided, however, that this provision shall not protect the Depositor, the
      Company, the Master Servicer or any such Person against any breach of warranties
      or representations made herein or any liability which would otherwise be imposed
      by reason of such Person’s willful misfeasance, bad faith or gross negligence in
      the performance of duties or by reason of reckless disregard of obligations
      and
      duties hereunder.

     

    (b)  The
      Depositor, the Company, the Master Servicer and any director, officer, employee
      or agent of the Depositor, the Company and the Master Servicer may rely in
      good
      faith on any document of any kind prima facie properly executed and submitted
      by
      any Person respecting any matters arising hereunder.

     

    (c)  The
      Depositor, the Company, the Master Servicer the Securities Administrator, the
      Trustee, the Custodian and any director, officer, employee or agent of the
      Depositor, the Company, the Master Servicer, the Securities Administrator,
      the
      Trustee or the Custodian shall be indemnified by the Trust and held harmless
      thereby against any loss, liability or expense (including reasonable legal
      fees
      and disbursements of counsel) incurred on their part that may be sustained
      in
      connection with, arising out of, or related to, any claim or legal action
      (including any pending or threatened claim or legal action) relating to this
      Agreement, the Assignment Agreements, the Custodial Agreement, the Certificates
      or the Servicing Agreements (except with respect to the Master Servicer only,
      to
      the extent that the Master Servicer is indemnified by the Company under this
      Agreement or by the related Servicer under the related Servicing Agreement),
      other than (i) any such loss, liability or expense related to the Company’s or
      the Master Servicer’s failure to perform its respective duties in compliance
      with this Agreement (except as any such loss, liability or expense shall be
      otherwise reimbursable pursuant to this Agreement), or to the Custodian’s
      failure to perform its duties under the Custodial Agreement, or (ii) any such
      loss, liability or expense incurred by reason of the Company’s, the Master
      Servicer’s or the Custodian’s willful misfeasance, bad faith or gross negligence
      in the performance of duties hereunder or under the Custodial Agreement, as
      applicable, or by reason of reckless disregard of obligations and duties
      hereunder or under the Custodial Agreement, as applicable.

     

    (d)  Neither
      the Depositor, the Company nor the Master Servicer shall be under any obligation
      to appear in, prosecute or defend any legal action that is not incidental to
      its
      duties under this Agreement and that in its opinion may involve it in any
      expense or liability; provided, however, the Master Servicer may in its
      discretion, with the consent of the Trustee (which consent shall not be
      unreasonably withheld), undertake any such action which it may deem necessary
      or
      desirable with respect to this Agreement and the rights and duties of the
      parties hereto and the interests of the Certificateholders hereunder. In such
      event, the legal expenses and costs of such action and any liability resulting
      therefrom shall be expenses, costs and liabilities of the Trust Fund, and the
      Master Servicer shall be entitled to be reimbursed therefor out of the
      Distribution Account as provided by Section 5.08. Nothing in this Subsection
      8.04(d) shall affect the Master Servicer’s obligation to supervise, or to take
      such actions as are necessary to ensure, the servicing and administration of
      the
      Mortgage Loans pursuant to Subsection 4.01(a).

     

    (e)  In
      taking
      or recommending any course of action pursuant to this Agreement, unless
      specifically required to do so pursuant to this Agreement, the Master Servicer
      shall not be required to investigate or make recommendations concerning
      potential liabilities which the Trust might incur as a result of such course
      of
      action by reason of the condition of the Mortgaged Properties but shall give
      notice to the Trustee if it has notice of such potential
      liabilities.

     

    (f)  The
      Master Servicer shall not be liable for any acts or omissions of the Company
      or
      the Servicers, except as otherwise expressly provided herein.

     

    Section
      8.05  Master
      Servicer and Company Not to Resign. 

     

    (a)  Except
      as
      provided in Section 8.07, the Master Servicer shall not resign from the
      obligations and duties hereby imposed on it except (i) with the prior written
      consent of the Trustee (which consent shall not be unreasonably withheld) or
      (ii) upon a determination that any such duties hereunder are no longer
      permissible under applicable law and such impermissibility cannot be cured.
      Any
      such determination permitting the resignation of the Master Servicer shall
      be
      evidenced by an Opinion of Counsel to such effect, addressed to and delivered
      to, the Trustee. No such resignation by the Master Servicer shall become
      effective until EMC or the Trustee or a successor to the Master Servicer
      reasonably satisfactory to the Trustee shall have assumed the responsibilities
      and obligations of the Master Servicer in accordance with Section 9.02 hereof.
      The Trustee shall notify the Rating Agencies of the resignation of the Master
      Servicer.

     

    (b)  The
      Company shall not resign from the obligations and duties hereby imposed on
      it
      except (i) upon the assignment of its servicing duties with respect to all
      or a
      portion of the EMC Mortgage Loans to an institution that is a Fannie Mae and
      Freddie Mac approved seller/servicer in good standing that has a net worth
      of
      not less than $10,000,000 and with the prior written consent of the Master
      Servicer (which consent shall not be unreasonably withheld) or (ii) upon the
      determination that its duties hereunder are no longer permissible under
      applicable law and such incapacity cannot be cured by the Company. Any
      determination permitting the resignation of the Company shall be evidenced
      by an
      Opinion of Counsel to such effect addressed to and delivered, to the Master
      Servicer and the Trustee which Opinion of Counsel shall be in form and substance
      acceptable to the Master Servicer and the Trustee. No appointment of a successor
      to the Company shall be effective hereunder unless (a) the Rating Agencies
      have
      confirmed in writing that such appointment will not result in a downgrade,
      qualification or withdrawal of the then current ratings assigned to the
      Certificates, (b) such successor shall have represented that it is meets the
      eligibility criteria set forth in clause (i) above and (c) such successor has
      agreed to assume the obligations of the Company hereunder to the extent of
      the
      EMC Mortgage Loans to be serviced by such successor. The Company shall provide
      a
      copy of the written confirmation of the Rating Agencies and the agreement
      executed by such successor to the Master Servicer and the Trustee. No such
      resignation shall become effective until a Qualified Successor or the Master
      Servicer shall have assumed the Company’s responsibilities and obligations
      hereunder. The Company shall notify the Master Servicer, the Trustee and the
      Rating Agencies of the resignation of the Company or the assignment of all
      or a
      portion of its servicing duties hereunder in accordance with this Section
      8.05.

     

    Section
      8.06  Successor
      Master Servicer. 

     

    In
      connection with the appointment of any successor Master Servicer or the
      assumption of the duties of the Master Servicer, EMC or the Trustee may make
      such arrangements for the compensation of such successor master servicer out
      of
      payments on the Mortgage Loans as EMC or the Trustee and such successor master
      servicer shall agree. If the successor master servicer does not agree that
      such
      market value is a fair price, such successor master servicer shall obtain two
      quotations of market value from third parties actively engaged in the servicing
      of single-family mortgage loans. In no event shall the compensation of any
      successor master servicer exceed that permitted the Master Servicer without
      the
      consent of all of the Certificateholders.

     

    Section
      8.07  Sale
      and
      Assignment of Master Servicing. 

     

    The
      Master Servicer may sell and assign its rights and delegate its duties and
      obligations in its entirety as Master Servicer under this Agreement and EMC
      may
      terminate the Master Servicer without cause and select a new Master Servicer;
      provided, however, that: (i) the purchaser or transferee accepting such
      assignment and delegation (a) shall be a Person which (or an Affiliate thereof
      the primary business of which is the servicing of conventional residential
      mortgage loans) shall be qualified to service mortgage loans for Fannie Mae
      or
      Freddie Mac; (b) shall have a net worth of not less than $10,000,000 (unless
      otherwise approved by each Rating Agency pursuant to clause (ii) below); (c)
      shall be reasonably satisfactory to the Trustee (as evidenced in a writing
      signed by the Trustee); and (d) shall execute and deliver to the Trustee an
      agreement, in form and substance reasonably satisfactory to the Trustee, which
      contains an assumption by such Person of the due and punctual performance and
      observance of each covenant and condition to be performed or observed by it
      as
      master servicer under this Agreement, any custodial agreement from and after
      the
      effective date of such agreement; (ii) each Rating Agency shall be given prior
      written notice of the identity of the proposed successor to the Master Servicer
      and each Rating Agency’s rating of the Certificates in effect immediately prior
      to such assignment, sale and delegation will not be downgraded, qualified or
      withdrawn as a result of such assignment, sale and delegation, as evidenced
      by a
      letter to such effect delivered to the Master Servicer and the Trustee; (iii)
      the Master Servicer assigning and selling the master servicing shall deliver
      to
      the Trustee an Officer’s Certificate and an Opinion of Counsel addressed to the
      Trustee, each stating that all conditions precedent to such action under this
      Agreement have been completed and such action is permitted by and complies
      with
      the terms of this Agreement; and (iv) in the event the Master Servicer is
      terminated without cause by EMC, EMC shall pay, from its own funds and without
      any right of reimbursement, the terminated Master Servicer a termination fee
      equal to 0.25% of the aggregate Stated Principal Balance of the Mortgage Loans
      at the time the master servicing of the Mortgage Loans is transferred to the
      successor Master Servicer. No such assignment or delegation shall affect any
      liability of the Master Servicer arising prior to the effective date
      thereof.

     

    ARTICLE
      IX

    DEFAULT;
      TERMINATION OF MASTER SERVICER;

    TERMINATION
      OF COMPANY

     

    Section
      9.01  Events
      of
      Default. 

     

    “Event
      of
      Default,” wherever used herein, means any one of the following
      events:

     

    (i)  any
      failure by the Master Servicer to remit to the Securities Administrator any
      amounts received or collected by the Master Servicer in respect of the Mortgage
      Loans and required to be remitted by it (other than any Advance) pursuant to
      this Agreement, which failure shall continue unremedied for one Business Day
      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 Trustee and
      the
      Master Servicer by the Holders of Certificates evidencing 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 or any breach of a representation or warranty by
      the
      Master Servicer, which failure or breach shall continue unremedied for a period
      of 60 days after the date on which written notice of such failure shall have
      been given to Master Servicer by the Trustee or the Depositor, or to the Trustee
      and the Master Servicer 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;

     

    (vi)  the
      Master Servicer assigns or delegates its duties or rights under this Agreement
      in contravention of the provisions permitting such assignment or delegation
      under Sections 8.05 or 8.07; or

     

    (vii)  The
      Master Servicer fails to deposit, or cause to be deposited, in the Distribution
      Account any Advance required to be made by the Master Servicer (other than
      a
      Nonrecoverable Advance) by 5:00 p.m. New York City time on the Business Day
      prior to the related Distribution Date.

     

    If
      an
      Event of Default 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, and at
      the
      direction of the Holders of Certificates evidencing not less than 25% of the
      Voting Rights evidenced by the Certificates, the Trustee shall, by notice in
      writing to the Master Servicer,
      with a
      copy to the Rating Agencies, and with the consent of the Company, may terminate
      all of the rights and obligations (but not the liabilities)
      of the
      Master Servicer (and the Securities Administrator if the Master Servicer and
      the
      Securities Administrator are the same entity) under this Agreement and in and
      to
      the Mortgage Loans and the proceeds thereof, other than its rights as a
      Certificateholder hereunder. On or after the receipt by the Master Servicer
      of
      such written notice, all authority and power of the Master Servicer (and, if
      applicable, the Securities Administrator) hereunder, whether with respect to
      the
      Mortgage Loans or otherwise, shall pass to and be vested in the Trustee, or
      any
      successor appointed pursuant to Section 9.02 (a “Successor Master Servicer” and,
      if applicable, “Successor Securities Administrator”). Such Successor Master
      Servicer shall thereupon if such Successor Master Servicer is a successor to
      the
      Master Servicer, make any Advance required by Article VI, subject, in the case
      of the Trustee, to Section 9.02. The Trustee is hereby authorized and empowered
      to execute and deliver, on behalf of the terminated Master Servicer and, if
      applicable, the terminated Securities Administrator, 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 any 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
      or Article X. The Master Servicer and, if applicable, the Securities
      Administrator agrees to cooperate with the Trustee in effecting the termination
      of the Master Servicer’s and, if applicable, the Securities Administrator’s
      responsibilities and rights hereunder, including, without limitation, the
      transfer to the applicable Successor Master Servicer of all cash amounts which
      shall at the time be credited to the Distribution Account maintained pursuant
      to
      Section 5.08, or thereafter be received with respect to the applicable Mortgage
      Loans. The Trustee shall promptly notify the Rating Agencies of the occurrence
      of an Event of Default known to the Trustee. The Securities Administrator shall
      promptly notify the Trustee in writing of the occurrence of an Event of Default
      under clauses (i) or (vii) above.

     

    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 that was due prior to the notice terminating the
      Master Servicer’s rights and obligations as Master Servicer hereunder and
      received after such notice, that portion thereof to which the Master Servicer
      would have been entitled pursuant to Sections 5.05 and to receive any other
      amounts payable to the Master Servicer hereunder the entitlement to which arose
      prior to the termination of its activities hereunder.

     

    Notwithstanding
      the foregoing, if an Event of Default described in clause (vii) of this Section
      9.01 shall occur and the Securities Administrator fails to make such Advance
      described in clause (vii), the Trustee upon receiving notice or becoming aware
      of such failure, and pursuant to the applicable terms of this Agreement, shall,
      by notice in writing to the Master Servicer, which may be delivered by telecopy,
      immediately terminate all of the rights and obligations of the Master Servicer
      thereafter arising under this Agreement, but without prejudice to any rights
      it
      may have as a Certificateholder or to reimbursement of Advances and other
      advances of its own funds, and the Trustee shall act as provided in Section
      8.02
      to carry out the duties of the Master Servicer, including the obligation to
      make
      any Advance the nonpayment of which was an Event of Default described in clause
      (vii) of this Section 9.01. Any such action taken by the Trustee must be prior
      to the distribution on the relevant Distribution Date.

     

    Section
      9.02  Trustee
      to Act; Appointment of Successor. 

     

    On
      and
      after the time the Master Servicer receives a notice of termination pursuant
      to
      Section 9.01 hereof the Trustee shall automatically become the successor to
      the
      Master Servicer with respect to the transactions set forth or provided for
      herein and after a transition period (not to exceed 90 days), shall have all
      the
      rights and powers of, and be subject to all the responsibilities, duties and
      liabilities relating thereto placed on the Master Servicer by the terms and
      provisions hereof; provided, however, that the Company shall have the right
      to
      either (a) immediately assume the duties of the Master Servicer or (b) select
      a
      successor Master Servicer; provided, further, however that, pursuant to Article
      VI hereof, the Trustee in its capacity as successor Master Servicer shall be
      responsible for making any Advances required to be made by the Master Servicer
      immediately upon the termination of the Master Servicer and any such Advance
      shall be made on the Distribution Date on which such Advance was required to
      be
      made by the predecessor Master Servicer. Effective on the date of such notice
      of
      termination, as compensation therefor, the Trustee shall be entitled to all
      compensation, reimbursement of expenses and indemnifications that the Master
      Servicer would have been entitled to if it had continued to act hereunder,
      provided, however, that the Trustee shall not be (i) liable for any acts or
      omissions of the Master Servicer, (ii) obligated to make Advances if it is
      prohibited from doing so under applicable law, (iii) responsible for expenses
      of
      the Master Servicer pursuant to Section 2.03 or (iv) obligated to deposit losses
      on any Permitted Investment directed by the Master Servicer. Notwithstanding
      the
      foregoing, 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 Article VI
      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 Master Servicer hereunder. Any Successor Master Servicer
      shall (i) be an institution that is a Fannie Mae and Freddie Mac approved
      seller/servicer in good standing, that has a net worth of at least $15,000,000
      and (ii) be willing to act as successor servicer of any Mortgage Loans under
      this Agreement or the related Servicing Agreement with respect to which the
      Company or the original Servicer has been terminated as servicer, and shall
      have
      executed and delivered to the Depositor, the Trustee an agreement accepting
      such
      delegation and assignment, that contains an assumption by such Person of the
      rights, powers, duties, responsibilities, obligations and liabilities of the
      Master Servicer (other than any liabilities of the Master Servicer hereof
      incurred prior to termination of the Master Servicer under Section 9.01 or
      as
      otherwise set forth herein), with like effect as if originally named as a party
      to this Agreement, provided that each Rating Agency shall have acknowledged
      in
      writing 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. If the Trustee assumes the duties and
      responsibilities of the Master Servicer in accordance with this Section 9.02,
      the Trustee shall not resign as Master Servicer until a Successor Master
      Servicer has been appointed and has accepted such appointment. 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
      4.04
      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 or otherwise
      as
      it and such successor shall agree; provided that no such compensation unless
      agreed to by the Certificateholders shall be in excess of that 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 and
      the
      Securities Administrator to deliver or provide, or any delay in delivering
      or
      providing, any cash, information, documents or records to it.

     

    The
      costs
      and expenses of the Trustee in connection with the termination of the Master
      Servicer, appointment of a Successor Master Servicer and, if applicable, any
      transfer of servicing, including, without limitation, all costs and expenses
      associated with the complete transfer of all servicing data and the completion,
      correction or manipulation of such servicing data as may be required by the
      Trustee to correct any errors or insufficiencies in the servicing data or
      otherwise to enable the Trustee or the Successor Master Servicer to service
      the
      related Mortgage Loans properly and effectively, to the extent not paid by
      the
      terminated Master Servicer, shall be payable to the Trustee pursuant to Section
      10.05. Any successor to the Master Servicer as successor servicer under any
      Subservicing Agreement shall give notice to the applicable Mortgagors of such
      change of servicer and shall, during the term of its service as successor
      servicer maintain in force the policy or policies that the Master Servicer
      is
      required to maintain pursuant to Section 4.04.

     

    Section
      9.03  Notification
      to Certificateholders and Rating Agencies. 

     

    (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
      actually known to a Responsible Officer of the Trustee, unless such Event of
      Default shall have been cured or waived.

     

    Section
      9.04  Waiver
      of
      Defaults. 

     

    The
      Trustee shall transmit by mail to all Certificateholders, within 60 days after
      the occurrence of any Event of Default actually known to a Responsible Officer
      of the Trustee, unless such Event of Default shall have been cured, notice
      of
      each such Event of Default hereunder known to the Trustee. Holders of
      Certificates evidencing not less than 51% of the Voting Rights may, on behalf
      of
      all Certificateholders, waive any default by the Master Servicer in the
      performance of its obligations hereunder and the consequences thereof, except
      a
      default in the making of or the causing to be made of any required distribution
      on the Certificates. Upon any such waiver of a past default, such default shall
      be deemed to cease to exist, and any Event of Default arising therefrom shall
      be
      deemed to have been timely remedied for every purpose of this Agreement. No
      such
      waiver shall extend to any subsequent or other default or impair any right
      consequent thereon except to the extent expressly so waived. The Trustee shall
      give notice of any such waiver to the Rating Agencies.

     

    Section
      9.05  Company
      Default. 

     

    In
      case
      one or more of the following events of default by the Company (each, a “Company
      Default”) shall occur and be continuing, that is to say:

     

    (i)  any
      failure by the Company to remit to the Securities Administrator any payment
      including any Advance required to be made under the terms of this Agreement
      on
      any Remittance Date; or

     

    (ii)  failure
      on the part of the Company duly to observe or perform in any material respect
      any other of the covenants or agreements (other than Sections 3.13 or 3.14)
      on
      the part of the Company set forth in this Agreement, the breach of which has
      a
      material adverse effect and which continue unremedied for a period of sixty
      days
      (except that such number of days shall be fifteen in the case of a failure
      to
      pay any premium for any insurance policy required to be maintained under this
      Agreement and such failure shall be deemed to have a material adverse effect)
      after the date on which written notice of such failure, requiring the same
      to be
      remedied, shall have been given to the Company by the Master Servicer;
      or

     

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

     

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

     

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

     

    (vi)  the
      Company attempts to assign its right to servicing compensation hereunder or
      the
      Company attempts to sell or otherwise dispose of all or substantially all of
      its
      property or assets or to assign this Agreement or the servicing responsibilities
      hereunder or to delegate its duties hereunder or any portion thereof except
      as
      otherwise permitted herein; 

     

    (vii)  the
      Company ceases to be qualified to transact business in any jurisdiction where
      it
      is currently so qualified, but only to the extent such non-qualification
      materially and adversely affects the Company’s ability to perform its
      obligations hereunder; or

     

    (viii)  failure
      by the Company to duly perform, within the required time period, its obligations
      under Sections 4.16, 4.17 or Section 4.18;

     

    then,
      and
      in each and every such case, so long as a Company Default shall not have been
      remedied, the Master Servicer, by notice in writing to the Company may, in
      addition to whatever rights the Master Servicer and the Trustee on behalf of
      the
      Certificateholders may have under Section 8.03 and at law or equity to damages,
      including injunctive relief and specific performance, terminate all the rights
      and obligations of the Company under this Agreement and in and to the EMC
      Mortgage Loans and the proceeds thereof without compensating the Company for
      the
      same. On or after the receipt by the Company of such written notice, all
      authority and power of Company under this Agreement, whether with respect to
      the
      EMC Mortgage Loans or otherwise, shall pass to and be vested in the Master
      Servicer. Upon written request from the Master Servicer, the Company shall
      prepare, execute and deliver, any and all documents and other instruments,
      place
      in the Master Servicer’s possession all Mortgage Files relating to the EMC
      Mortgage Loans, and do or accomplish all other acts or things necessary or
      appropriate to effect the purposes of such notice of termination, whether to
      complete the transfer and endorsement or assignment of the EMC Mortgage Loans
      and related documents, or otherwise, at the Company’s sole expense. The Company
      agrees to pay any costs and expenses incurred by the Master Servicer in
      accordance with Section 4.03(c) and to cooperate with the Master Servicer in
      effecting the termination of the Company’s responsibilities and rights
      hereunder, including, without limitation, the transfer to such successor for
      administration by it of all cash amounts which shall at the time be credited
      by
      the Company to its Protected Account or Escrow Account or thereafter received
      with respect to the EMC Mortgage Loans or any related REO Property.

     

    Section
      9.06  Waiver
      of
      Company Defaults. 

     

    The
      Master Servicer, with the consent of the Trustee may waive only by written
      notice any default by the Company in the performance of its obligations
      hereunder and its consequences. Upon any such waiver of a past default, such
      default shall cease to exist, and any Company Default arising therefrom shall
      be
      deemed to have been remedied for every purpose of this Agreement. No such waiver
      shall extend to any subsequent or other default or impair any right consequent
      thereon except to the extent expressly so waived in writing.

     

    ARTICLE
      X

     

    CONCERNING
      THE TRUSTEE AND THE

    SECURITIES
      ADMINISTRATOR

     

    Section
      10.01  Duties
      of
      Trustee and Securities Administrator. 

     

    (a)  The
      Trustee, prior to the occurrence of an Event of Default and after the curing
      or
      waiver of all Events of Default which may have occurred, and the Securities
      Administrator each undertake to perform such duties and only such duties as
      are
      specifically set forth in this Agreement as duties of the Trustee and the
      Securities Administrator, respectively. If an Event of Default has occurred
      and
      has not been cured or waived, the Trustee shall exercise such of the rights
      and
      powers vested in it by this Agreement, and the same degree of care and skill
      in
      their exercise, as a prudent person would exercise under the circumstances
      in
      the conduct of such Person’s own affairs.

     

    (b)  Upon
      receipt of all resolutions, certificates, statements, opinions, reports,
      documents, orders or other instruments which are specifically required to be
      furnished to the Trustee or the Securities Administrator pursuant to any
      provision of this Agreement, the Trustee or the Securities Administrator,
      respectively, shall examine them to determine whether they are, on their face,
      in the form required by this Agreement; provided, however, that neither the
      Trustee nor the Securities Administrator shall be responsible for the accuracy
      or content of any resolution, certificate, statement, opinion, report, document,
      order or other instrument furnished by the Master Servicer; provided, further,
      that neither the Trustee nor the Securities Administrator shall be responsible
      for the accuracy or verification of any calculation provided to it pursuant
      to
      this Agreement.

     

    (c)  On
      each
      Distribution Date, the Securities Administrator shall make monthly distributions
      and the final distribution to the Certificateholders from funds in the
      Distribution Account as provided in Sections 6.04 and 11.02 herein based solely
      on the applicable Remittance Report.

     

    (d)  No
      provision of this Agreement shall be construed to relieve the Trustee or the
      Securities Administrator from liability for its own negligent action, its own
      negligent failure to act or its own willful misconduct; provided, however,
      that:

     

    (i)  Prior
      to
      the occurrence of an Event of Default, and after the curing or waiver of all
      such Events of Default which may have occurred with respect to the Trustee
      and
      at all times with respect to the Securities Administrator, the duties and
      obligations of the Trustee and the Securities Administrator shall be determined
      solely by the express provisions of this Agreement, neither the Trustee nor
      the
      Securities Administrator shall be liable except for the performance of their
      respective 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 or the Securities Administrator and, in the absence of
      bad
      faith on the part of the Trustee or the Securities Administrator, respectively,
      the Trustee or the Securities Administrator, respectively, 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
      or
      the Securities Administrator, respectively, and conforming to the requirements
      of this Agreement;

     

    (ii)  Neither
      the Trustee nor the Securities Administrator shall be liable in its individual
      capacity for an error of judgment made in good faith by a Responsible Officer
      or
      Responsible Officers of the Trustee or an officer or officers of the Securities
      Administrator, respectively, unless it shall be proved that the Trustee or
      the
      Securities Administrator, respectively, was negligent in ascertaining the
      pertinent facts;

     

    (iii)  Neither
      the Trustee nor the Securities Administrator shall be liable with respect to
      any
      action taken, suffered or omitted to be taken by it in good faith in accordance
      with the directions of the Holders of Certificates evidencing not less than
      25%
      of the aggregate Voting Rights of the Certificates (or such other percentage
      as
      specifically set forth herein), if such action or non-action relates to the
      time, method and place of conducting any proceeding for any remedy available
      to
      the Trustee or the Securities Administrator, respectively, or exercising any
      trust or other power conferred upon the Trustee or the Securities Administrator,
      respectively, under this Agreement;

     

    (iv)  The
      Trustee shall not be required to take notice or be deemed to have notice or
      knowledge of any default or Event of Default unless a Responsible Officer of
      the
      Trustee shall have actual knowledge thereof. In the absence of such notice,
      the
      Trustee may conclusively assume there is no such default or Event of
      Default;

     

    (v)  The
      Securities Administrator shall not in any way be liable by reason of any
      insufficiency in any Account held in the name of Trustee unless it is determined
      by a court of competent jurisdiction in a non-appealable judgment that the
      Securities Administrator’s gross negligence or willful misconduct was the
      primary cause of such insufficiency (except to the extent that the Securities
      Administrator is obligor and has defaulted thereon);

     

    (vi)  The
      Trustee shall not in any way be liable by reason of any insufficiency in any
      Account held in the name of Trustee unless it is determined by a court of
      competent jurisdiction in a non-appealable judgment that the Trustee’s gross
      negligence or willful misconduct was the primary cause of such insufficiency
      (except to the extent that the Trustee is obligor and has defaulted
      thereon);

     

    (vii)  Anything
      in this Agreement to the contrary notwithstanding, in no event shall the Trustee
      or the Securities Administrator be liable for special, indirect or consequential
      loss or damage of any kind whatsoever (including but not limited to lost
      profits), even if the Trustee or the Securities Administrator, respectively,
      has
      been advised of the likelihood of such loss or damage and regardless of the
      form
      of action; and

     

    (viii)  None
      of
      the Securities Administrator, the Master Servicer, the Seller, the Depositor
      or
      the Trustee shall be responsible for the acts or omissions of the other, it
      being understood that this Agreement shall not be construed to render them
      partners, joint venturers or agents of one another.

     

    Neither
      the Trustee nor the Securities Administrator shall be required to expend or
      risk
      its own funds or otherwise incur financial liability in the performance of
      any
      of its duties hereunder, or in the exercise of any of its rights or powers,
      if
      there is reasonable ground for believing that the repayment of such funds or
      adequate indemnity against such risk or liability is not reasonably assured
      to
      it, and none of the provisions contained in this Agreement shall in any event
      require the Trustee or the Securities Administrator to perform, or be
      responsible for the manner of performance of, any of the obligations of the
      Master Servicer or the Company hereunder or any Servicer under the related
      Servicing Agreement.

     

    (e)  All
      funds
      received by the Securities Administrator and required to be deposited in the
      Distribution Account pursuant to this Agreement shall be promptly so deposited
      by the Securities Administrator.

     

    Section
      10.02  Certain
      Matters Affecting the Trustee and the Securities Administrator. 

     

    (a)  Except
      as
      otherwise provided in Section 10.01:

     

    (i)  The
      Trustee and the Securities Administrator may rely and shall be protected in
      acting or refraining from acting in reliance on any resolution or certificate
      of
      the Seller, the Company, the Master Servicer or the related Servicer, any
      certificates 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;

     

    (ii)  The
      Trustee and the Securities Administrator may consult with counsel and any advice
      of such counsel or any Opinion of Counsel shall be full and complete
      authorization and protection with respect to any action taken or suffered or
      omitted by it hereunder in good faith and in accordance with such advice or
      Opinion of Counsel;

     

    (iii)  Neither
      the Trustee nor the Securities Administrator shall be under any obligation
      to
      exercise any of the trusts or powers vested in it by this Agreement, other
      than
      its obligation to give notices pursuant to 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 or the Securities Administrator, as applicable, reasonable security
      or
      indemnity against the costs, expenses and liabilities which may be incurred
      therein or thereby. Nothing contained herein shall, however, relieve the Trustee
      of the obligation, upon the occurrence of an Event of Default of which a
      Responsible Officer of the Trustee has actual knowledge (which has not been
      cured or waived), to exercise such of the rights and powers vested in it by
      this
      Agreement, and to use the same degree of care and skill in their exercise,
      as a
      prudent person would exercise under the circumstances in the conduct of his
      own
      affairs;

     

    (iv)  Prior
      to
      the occurrence of an Event of Default hereunder and after the curing or waiver
      of all Events of Default which may have occurred with respect to the Trustee
      and
      at all times with respect to the Securities Administrator, neither the Trustee
      nor the Securities Administrator shall be liable in its individual capacity
      for
      any action taken, suffered or omitted by it in good faith and believed by it
      to
      be authorized or within the discretion or rights or powers conferred upon it
      by
      this Agreement;

     

    (v)  Neither
      the Trustee nor the Securities Administrator shall 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 to do
      so
      by Holders of Certificates evidencing not less than 25% of the aggregate Voting
      Rights of the Certificates and provided that the payment within a reasonable
      time to the Trustee or the Securities Administrator, as applicable, of the
      costs, expenses or liabilities likely to be incurred by it in the making of
      such
      investigation is, in the opinion of the Trustee or the Securities Administrator,
      as applicable, reasonably assured to the Trustee or the Securities
      Administrator, as applicable, by the security afforded to it by the terms of
      this Agreement. The Trustee or the Securities Administrator may require
      reasonable indemnity against such expense or liability as a condition to taking
      any such action. The reasonable expense of every such examination shall be
      paid
      by the Certificateholders requesting the investigation;

     

    (vi)  The
      Trustee and the Securities Administrator may execute any of the trusts or powers
      hereunder or perform any duties hereunder either directly or through Affiliates,
      agents or attorneys; provided, however, that the Trustee may not appoint any
      paying agent other than the Securities Administrator to perform any paying
      agent
      functions under this Agreement without the express written consent of the Master
      Servicer, which consents will not be unreasonably withheld. Neither the Trustee
      nor the Securities Administrator shall be liable or responsible for the
      misconduct or negligence of any of the Trustee’s or the Securities
      Administrator’s agents or attorneys or paying agent appointed hereunder by the
      Trustee or the Securities Administrator with due care and, when required, with
      the consent of the Master Servicer;

     

    (vii)  Should
      the Trustee or the Securities Administrator deem the nature of any action
      required on its part to be unclear, the Trustee or the Securities Administrator,
      respectively, may require prior to such action that it be provided by the
      Depositor with reasonable further instructions; the right of the Trustee or
      the
      Securities Administrator to perform any discretionary act enumerated in this
      Agreement shall not be construed as a duty, and neither the Trustee nor the
      Securities Administrator shall be accountable for other than its negligence
      or
      willful misconduct in the performance of any such act;

     

    (viii)  Neither
      the Trustee nor the Securities Administrator shall be required to give any
      bond
      or surety with respect to the execution of the trust created hereby or the
      powers granted hereunder, except as provided in Subsection 10.07;
      and

     

    (ix)  Neither
      the Trustee nor the Securities Administrator shall have any duty to conduct
      any
      affirmative investigation as to the occurrence of any condition requiring the
      repurchase of any Mortgage Loan by any Person pursuant to this Agreement, or
      the
      eligibility of any Mortgage Loan for purposes of this Agreement.

     

    (b)  The
      Trustee is hereby directed by the Depositor to execute and deliver the Insurance
      Agreement.

     

    Section
      10.03  Trustee
      and Securities Administrator Not Liable for Certificates or Mortgage
      Loans. 

     

    The
      recitals contained herein and in the Certificates (other than the signature
      and
      countersignature of the Securities Administrator on the Certificates) shall
      be
      taken as the statements of the Depositor, and neither the Trustee nor the
      Securities Administrator shall have any responsibility for their correctness.
      Neither the Trustee nor the Securities Administrator makes any representation
      as
      to the validity or sufficiency of the Certificates (other than the signature
      and
      countersignature of the Securities Administrator on the Certificates) or of
      any
      Mortgage Loan except as expressly provided in Sections 2.02 and 2.06 hereof;
      provided, however, that the foregoing shall not relieve the Trustee, or the
      Custodian on its behalf, of the obligation to review the Mortgage Files pursuant
      to Section 2.02 of this Agreement. Neither the Trustee or the Securities
      Administrator shall be accountable for the use or application by the Depositor
      of any of the Certificates or of the proceeds of such Certificates, or for
      the
      use or application of any funds paid to the Depositor with respect to the
      Mortgage Loans. Subject to Section 2.06, neither the Trustee nor the Securities
      Administrator shall be responsible for the legality or validity of this
      Agreement or any document or instrument relating to this Agreement, the validity
      of the execution of this Agreement or of any supplement hereto or instrument
      of
      further assurance, or the validity, priority, perfection or sufficiency of
      the
      security for the Certificates issued hereunder or intended to be issued
      hereunder. Neither the Trustee nor the Securities Administrator shall at any
      time have any responsibility or liability for or with respect to the legality,
      validity and enforceability of any Mortgage or any Mortgage Loan, or the
      perfection and priority of any Mortgage or the maintenance of any such
      perfection and priority, or for or with respect to the sufficiency of the Trust
      Fund or its ability to generate the payments to be distributed to
      Certificateholders, under this Agreement. Neither the Trustee nor the Securities
      Administrator shall have any responsibility for filing any financing or
      continuation statement in any public office at any time or to otherwise perfect
      or maintain the perfection of any security interest or lien granted to it
      hereunder or to record this Agreement.

     

    Section
      10.04  Trustee
      and Securities Administrator May Own Certificates. 

     

    Each
      of
      the Trustee and the Securities Administrator in its individual capacity or
      in
      any capacity other than as Trustee or Securities Administrator hereunder may
      become the owner or pledgee of any Certificates with the same rights it would
      have if it were not the Trustee or the Securities Administrator, as applicable,
      and may otherwise deal with the parties hereto.

     

    Section
      10.05  Trustee’s
      and Securities Administrator’s Fees and Expenses. 

     

    The
      fees
      and expenses of the Trustee and the Securities Administrator shall be paid
      in
      accordance with a side letter agreement with the Master Servicer and at the
      expense of the Master Servicer. In addition, the Trustee and the Securities
      Administrator shall be entitled to recover from the Distribution Account
      pursuant to Section 5.09 all reasonable out-of-pocket expenses, disbursements
      and advances and the expenses of the Trustee and the Securities Administrator,
      respectively, in connection with any Event of Default, any breach of this
      Agreement or any claim or legal action (including any pending or threatened
      claim or legal action) incurred or made by the Trustee or the Securities
      Administrator, respectively, in the administration of the trusts hereunder
      (including the reasonable compensation, expenses and disbursements of its
      counsel) except any such expense, disbursement or advance as may arise from
      its
      negligence or intentional misconduct or which is the responsibility of the
      Certificateholders or the Trust Fund hereunder. If funds in the Distribution
      Account are insufficient therefor, the Trustee and the Securities Administrator
      shall recover such expenses, disbursements or advances from the Depositor and
      the Depositor hereby agrees to pay such expenses, disbursements or advances
      upon
      demand. Such compensation and reimbursement obligation shall not be limited
      by
      any provision of law in regard to the compensation of a trustee of an express
      trust.

     

    Section
      10.06  Eligibility
      Requirements for Trustee and Securities Administrator. 

     

    The
      Trustee and any successor Trustee and the Securities Administrator and any
      successor Securities Administrator shall during the entire duration of this
      Agreement be a state bank or trust company or a national banking 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 and undivided profits of at least $40,000,000
      or,
      in the case of a successor Trustee, $50,000,000, subject to supervision or
      examination by federal or state authority and, in the case of the Trustee,
      rated
“BBB” or higher by Fitch, Inc. with respect to their long-term rating and rated
“BBB” or higher by Standard & Poor’s and “Baa2” or higher by Moody’s with
      respect to any outstanding long-term unsecured unsubordinated debt, and, in
      the
      case of a successor Trustee or successor Securities Administrator other than
      pursuant to Section 10.10, rated in one of the two highest long-term debt
      categories of, or otherwise acceptable to, each of the Rating Agencies (which
      consent shall not be unreasonably withheld). The Trustee shall not be an
      Affiliate of the Master Servicer. If the Trustee 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 10.06
      the combined capital and surplus of such corporation shall be deemed to be
      its
      total equity capital (combined capital and surplus) as set forth in its most
      recent report of condition so published. In case at any time the Trustee or
      the
      Securities Administrator, as applicable, shall cease to be eligible in
      accordance with the provisions of this Section 10.06, the Trustee or the
      Securities Administrator shall resign immediately in the manner and with the
      effect specified in Section 10.08.

     

    Section
      10.07  Insurance. 

     

    The
      Trustee and the Securities Administrator, at their own expense, shall at all
      times maintain and keep in full force and effect: (i) fidelity insurance, (ii)
      theft of documents insurance and (iii) forgery insurance (which may be
      collectively satisfied by a “Financial Institution Bond” and/or a “Bankers’
Blanket Bond”). All such insurance shall be in amounts, with standard coverage
      and subject to deductibles, as are customary for insurance typically maintained
      by banks or their affiliates which act as custodians for investor-owned mortgage
      pools. A certificate of an officer of the Trustee or the Securities
      Administrator as to the Trustee’s or the Securities Administrator’s,
      respectively, compliance with this Section 10.07 shall be furnished to any
      Certificateholder upon reasonable written request.

     

    Section
      10.08  Resignation
      and Removal of Trustee and Securities Administrator. 

     

    The
      Trustee and the Securities Administrator may at any time resign (including,
      in
      the case of the Securities Administrator, in connection with the resignation
      or
      termination of the Master Servicer) and be discharged from the Trust hereby
      created by giving written notice thereof to the Depositor, the Seller, the
      Securities Administrator (or the Trustee, if the Securities Administrator
      resigns) and the Master Servicer, with a copy to the Rating Agencies. Upon
      receiving such notice of resignation, the Depositor shall promptly appoint
      a
      successor trustee or successor securities administrator, as applicable, by
      written instrument, in triplicate, one copy of which instrument shall be
      delivered to each of the resigning trustee or securities administrator, as
      applicable, and the successor trustee or securities administrator, as
      applicable. If no successor trustee or successor securities administrator shall
      have been so appointed and have accepted appointment within 30 days after the
      giving of such notice of resignation, the resigning Trustee or Securities
      Administrator may petition any court of competent jurisdiction for the
      appointment of a successor trustee or securities administrator.

     

    If
      at any
      time (i) the Trustee or the Securities Administrator shall cease to be eligible
      in accordance with the provisions of Section 10.06 hereof and shall fail to
      resign after written request thereto by the Depositor, (ii) the Trustee or
      the
      Securities Administrator shall become incapable of acting, or shall be adjudged
      as bankrupt or insolvent, or a receiver of the Trustee or the Securities
      Administrator or of its property shall be appointed, or any public officer
      shall
      take charge or control of the Trustee or the Securities Administrator or of
      its
      property or affairs for the purpose of rehabilitation, conservation or
      liquidation, or (iii)(A) a tax is imposed with respect to the Trust Fund by
      any
      state in which the Trustee or the Securities Administrator or the Trust Fund
      is
      located, (B) the imposition of such tax would be avoided by the appointment
      of a
      different trustee or securities administrator and (C) the Trustee or the
      Securities Administrator, as applicable fails to indemnify the Trust Fund
      against such tax, then the Depositor or the Master Servicer may remove the
      Trustee or the Securities Administrator, as applicable, and appoint a successor
      trustee or successor securities administrator, as applicable, by written
      instrument, in multiple copies, a copy of which instrument shall be delivered
      to
      the Trustee, the Securities Administrator, each Master Servicer and the
      successor trustee or successor securities administrator, as
      applicable.

     

    The
      Holders evidencing at least 51% of the Voting Rights of each Class of
      Certificates may at any time remove the Trustee or Securities Administrator
      and
      appoint a successor trustee or securities administrator by written instrument
      or
      instruments, in multiple copies, signed by such Holders or their
      attorneys-in-fact duly authorized, one complete set of which instruments shall
      be delivered by the successor trustee or successor securities administrator
      to
      each of the Master Servicer, the Trustee or Securities Administrator so removed
      and the successor trustee or securities administrator so appointed. Notice
      of
      any removal of the Trustee or Securities Administrator shall be given to each
      Rating Agency by the Trustee or successor trustee.

     

    Any
      resignation or removal of the Trustee or Securities Administrator and
      appointment of a successor trustee or securities administrator pursuant to
      any
      of the provisions of this Section 10.08 shall become effective upon acceptance
      of appointment by the successor trustee or securities administrator as provided
      in Section 10.09 hereof.

     

    Section
      10.09  Successor
      Trustee or Securities Administrator. 

     

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

     

    No
      successor trustee or securities administrator shall accept appointment as
      provided in this Section 10.09 unless at the time of such acceptance such
      successor trustee or securities administrator shall be eligible under the
      provisions of Section 10.06 hereof and its appointment shall not adversely
      affect the then current rating of the Certificates.

     

    Upon
      acceptance of appointment by a successor trustee or securities administrator
      as
      provided in this Section 10.09, the successor trustee or securities
      administrator shall mail notice of the succession of such trustee or securities
      administrator hereunder to all Holders of Certificates. If the successor trustee
      or securities administrator fails to mail such notice within ten days after
      acceptance of appointment, the Depositor shall cause such notice to be mailed
      at
      the expense of the Trust Fund.

     

    Section
      10.10  Merger
      or
      Consolidation of Trustee or Securities Administrator. 

     

    Any
      corporation, state bank or national banking association into which the Trustee
      or the Securities Administrator may be merged or converted or with which it
      may
      be consolidated or any corporation, state bank or national banking association
      resulting from any merger, conversion or consolidation to which the Trustee
      or
      the Securities Administrator shall be a party, or any corporation, state bank
      or
      national banking association succeeding to substantially all of the corporate
      trust business of the Trustee or of the business of the Securities
      Administrator, shall be the successor of the Trustee or the Securities
      Administrator hereunder, provided that such corporation shall be eligible under
      the provisions of Section 10.06 hereof without the execution or filing of any
      paper or further act on the part of any of the parties hereto, anything herein
      to the contrary notwithstanding.

     

    Section
      10.11  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 10.11,
      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 10.06 and no notice to
      Certificateholders of the appointment of any co-trustee or separate trustee
      shall be required under Section 10.09.

     

    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)  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 a Trustee hereunder or as a Successor Master
      Servicer hereunder), the Trustee shall be incompetent or unqualified to perform
      such act or acts, in which event such rights, powers, duties and obligations
      (including the holding of title to the Trust Fund or any portion thereof in
      any
      such jurisdiction) shall be exercised and performed 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

     

    (iii)  The
      Trustee may at any time accept the resignation of or remove any 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 then separate trustees and co-trustees, as effectively
      as if given to each of them. Every instrument appointing any separate trustee
      or
      co-trustee shall refer to this Agreement and the conditions of this Article
      X.
      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
      10.12  Tax
      Matters. 

     

    It
      is
      intended that the Trust Fund shall constitute one or more REMICs, and that
      the
      affairs of the Trust Fund shall be conducted so that each REMIC formed hereunder
      qualifies as a “real estate mortgage investment conduit” as defined in and in
      accordance with the REMIC Provisions. In furtherance of such intention, the
      Securities Administrator covenants and agrees that it shall act as agent for
      so
      long as it is also Master Servicer (and the Securities Administrator is hereby
      appointed to act as agent) on behalf of the Trust Fund. The Trustee and/or
      the
      Securities Administrator, as agent on behalf of the Trust Fund, shall do or
      refrain from doing, as applicable, the following: (a) the Securities
      Administrator shall prepare and file, or cause to be prepared and filed, in
      a
      timely manner, U.S. Real Estate Mortgage Investment Conduit Income Tax Returns
      (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 each 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) the Securities
      Administrator shall apply for an employer identification number with the
      Internal Revenue Service via a Form SS-4 or other comparable method for each
      REMIC that is or becomes a taxable entity, and 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 for the Trust Fund; (c) the Trustee
      shall make, or cause to be made, elections on behalf of each REMIC formed
      hereunder to be treated as a REMIC on the federal tax return of such REMIC
      for
      its first taxable year (and, if necessary, under applicable state law); (d)
      the
      Securities Administrator shall 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 provided to them in accordance with the REMIC Provisions,
      including without limitation, the calculation of any original issue discount
      using the Prepayment Assumption; (e) the Securities Administrator shall 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 Person that is not a
      Permitted Transferee, or a pass-through entity in which a Person that is not
      a
      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) each of the Securities Administrator and the Trustee shall,
      to the extent under its control, conduct the affairs of the Trust Fund at all
      times that any Certificates are outstanding so as to maintain the status of
      each
      REMIC formed hereunder as a REMIC under the REMIC Provisions; (g) neither the
      Trustee nor the Securities Administrator shall knowingly or intentionally take
      any action or omit to take any action that could (i) cause the termination
      of
      the REMIC status of any REMIC formed hereunder or (ii) result in the imposition
      of a tax upon the Trust Fund (including but not limited to the tax on prohibited
      transactions as defined in Section 860F(a)(2) of the Code and the tax on
      contributions to a REMIC set forth in Section 860G(d) of the Code); (h) the
      Securities Administrator shall pay, from the sources specified in this Section
      10.12, the amount of any federal, state and local taxes, including prohibited
      transaction taxes as described below, imposed on any REMIC formed hereunder
      prior to the termination of the Trust Fund when and as the same shall be due
      and
      payable (but such obligation shall not prevent the Trustee, the Securities
      Administrator at the written request of the Trustee, or any other appropriate
      Person from contesting any such tax in appropriate proceedings and shall not
      prevent the Securities Administrator from withholding payment of such tax,
      if
      permitted by law, pending the outcome of such proceedings); (i) the Trustee
      shall sign or cause to be signed federal, state or local income tax or
      information returns or any other document prepared by the Securities
      Administrator pursuant to this Section 10.12 requiring a signature thereon
      by
      the Trustee; (j) the Securities Administrator shall maintain records relating
      to
      each REMIC formed hereunder including but not limited to the income, expenses,
      assets and liabilities of each such REMIC and adjusted basis of the Trust Fund
      property determined at such intervals as may be required by the Code, as may
      be
      necessary to prepare the foregoing returns, schedules, statements or
      information; (k) the Securities Administrator shall, for federal income tax
      purposes, maintain books and records with respect to the REMICs on a calendar
      year and on an accrual basis; (l) neither the Trustee nor the Master Servicer
      shall enter into any arrangement not otherwise provided for in this Agreement
      by
      which the REMICs will receive a fee or other compensation for services nor
      permit the REMICs to receive any income from assets other than “qualified
      mortgages” as defined in Section 860G(a)(3) of the Code or “permitted
      investments” as defined in Section 860G(a)(5) of the Code; and (m) as and when
      necessary and appropriate, the Trustee, or at the written request of the
      Trustee, the Securities Administrator, shall represent the Trust Fund 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 REMIC formed hereunder, enter into settlement agreements
      with any governmental taxing agency, extend any statute of limitations relating
      to any tax item of the Trust Fund, and otherwise act on behalf of each REMIC
      formed hereunder in relation to any tax matter involving any such
      REMIC.

     

    In
      order
      to enable each of the Trustee and the Securities Administrator to perform its
      duties as set forth herein, the Depositor shall provide, or cause to be
      provided, to the Trustee or the Securities Administrator within 10 days after
      the Closing Date all information or data that the Trustee or the Securities
      Administrator 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 related Mortgage Loans. Thereafter, the Depositor
      shall
      provide to the Trustee or the Securities Administrator promptly upon written
      request therefor, any such additional information or data that the Trustee
      or
      the Securities Administrator may, from time to time, request in order to enable
      the Trustee or the Securities Administrator to perform its duties as set forth
      herein. The Depositor hereby indemnifies each of Trustee and the Securities
      Administrator for any losses, liabilities, damages, claims or expenses of the
      Trustee or the Securities Administrator arising from any errors or
      miscalculations of the Trustee or the Securities Administrator, as applicable,
      that result from any failure of the Depositor to provide, or to cause to be
      provided, accurate information or data to the Trustee or the Securities
      Administrator, as applicable, on a timely basis.

     

    In
      the
      event that any tax is imposed on “prohibited transactions” of any of REMIC I,
      REMIC II, REMIC III or REMIC IV as defined in Section 860F(a)(2) of the Code,
      on
      the “net income from foreclosure property” of the Trust Fund as defined in
      Section 860G(c) of the Code, on any contribution to any of REMIC I, REMIC II,
      REMIC III or REMIC IV after the Startup Day pursuant to Section 860G(d) of
      the
      Code, or any other tax is imposed, including, without limitation, any federal,
      state or local tax or minimum tax imposed upon any of REMIC I, REMIC II, REMIC
      III or REMIC IV and is not paid as otherwise provided for herein, such tax
      shall
      be paid (i) by the Master Servicer or the Securities Administrator, if any
      such
      tax arises out of or results from a breach by the Master Servicer or the
      Securities Administrator of any of its obligations under this Agreement,
      provided, however, in no event shall the Master Servicer or the Securities
      Administrator have
      any
      liability (1) for any action or omission that is taken in accordance with and
      compliance with the express terms of, or which is expressly permitted by the
      terms of, this Agreement, (2) for any losses other than those arising out of
      a
      negligent performance by the Master Servicer or the Securities Administrator
      of
      its duties and obligations set forth herein, or (3) for any special or
      consequential damages to Certificateholders (in addition to payment of principal
      and interest on the Certificates), (ii) by
      any
      party
      hereto (other than the Master Servicer or
      the
      Securities Administrator) to the extent any such
      tax
      arises out of or results from a breach by such other party of any of its
      obligations under this Agreement or (iii) in all other cases, or in the event
      that any liable party hereto fails to honor its obligations under the preceding
      clauses (i) or (ii), first with amounts otherwise to be distributed to the
      Class
      R Certificateholders, and second with amounts otherwise to be distributed to
      all
      the Holders of the following Certificates in the following order of priority:
      first,
      to
      the
      Class B-4 Certificates, second, to the Class B-3 Certificates, third, to the
      Class B-2 Certificates, fourth, to the Class B-1 Certificates, fifth, to the
      Class M-4 Certificates, sixth, to the Class M-3 Certificates, seventh, to the
      Class M-2 Certificates, eighth, to the Class M-1 Certificates, and ninth, to
      the
      Class A Certificates (pro
      rata
      based on
      the amounts to be distributed). Notwithstanding anything to the contrary
      contained herein, to the extent that such tax is payable by the Holder of any
      Certificates, the Securities Administrator is hereby authorized to retain on
      any
      Distribution Date, from the Holders of the Class R Certificates (and, if
      necessary, second, from the Holders of the other Certificates in the priority
      specified in the preceding sentence), funds otherwise distributable to such
      Holders in an amount sufficient to pay such tax. The
      Securities Administrator shall include in its Remittance Report instructions
      as
      to distributions to such parties taking into account the priorities described
      in
      the preceding sentence. The
      Securities Administrator shall promptly notify in writing the party liable
      for
      any such tax of the amount thereof and the due date for the payment
      thereof.

     

    Notwithstanding
      any other provision of this Agreement, the Securities Administrator shall comply
      with all federal withholding requirements respecting payments to
      Certificateholders of interest or original issue discount that the Securities
      Administrator reasonably believes are applicable under the Code. The consent
      of
      Certificateholders shall not be required for such withholding. In the event
      the
      Securities Administrator does withhold any amount from interest or original
      issue discount payments or advances thereof to any Certificateholder pursuant
      to
      federal withholding requirements, the Securities Administrator shall indicate
      the amount withheld to such Certificateholders.

     

    The
      Trustee and the Securities Administrator each agree that, in the event it should
      obtain any information necessary for the other party to perform its obligations
      pursuant to this Section 10.12, it will promptly notify and provide such
      information to such other party. Notwithstanding anything in this Agreement
      to
      the contrary, the Trustee agrees that, in the event that the Trustee obtains
      actual knowledge that the Securities Administrator has breached any of its
      obligations pursuant to this Section 10.12, the Trustee shall perform such
      obligations on its behalf to the extent that the Trustee possesses all documents
      necessary to so perform and receives reasonable compensation therefor, provided,
      however, that the Trustee shall not be liable for any losses resulting from
      any
      such breach.

     

    ARTICLE
      XI

    TERMINATION

     

    Section
      11.01  Termination
      upon Liquidation or Repurchase of all Mortgage Loans.

     

    Subject
      to Section 11.03, the obligations and responsibilities of the Depositor, the
      Master Servicer, the Securities
      Administrator
      and the
      Trustee created hereby with respect to the Trust Fund shall terminate upon
      the
      earlier of (a) the exercise of the Majority Class C Certificateholder (or its
      designee) of its right to repurchase all of the Mortgage Loans (and REO
      Properties) remaining in the Trust Fund at a price (the “Mortgage Loan Purchase
      Price”) equal to the sum of (i) 100% of the Stated Principal Balance of each
      Mortgage Loan (other than in respect of REO Property), (ii) accrued interest
      thereon at the applicable Mortgage Rate to, but not including, the first day
      of
      the month of such purchase, (iii) the appraised value of any REO Property in
      the
      Trust Fund (up to the Stated Principal Balance of the related Mortgage Loan),
      such appraisal to be conducted by an appraiser mutually agreed upon by the
      Master Servicer and the Trustee, and (iv) unreimbursed out-of pocket costs
      of
      the Company, the Servicers or the Master Servicer, including unreimbursed
      servicing advances and the principal portion of any unreimbursed Advances,
      made
      on the Mortgage Loans prior to the exercise of such repurchase right, (v) any
      unreimbursed costs and expenses of the Trustee and the Securities Administrator
      payable pursuant to Section 10.05, 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, as applicable. In no event
      shall
      the trusts created hereby continue beyond the earlier of (i) the expiration
      of
      21 years from the death of the last survivor of the descendants of Joseph P.
      Kennedy, the late Ambassador of the United States to the Court of St. James,
      living on the date hereof and (ii) the Latest Possible Maturity
      Date.

     

    The
      right
      to repurchase all Mortgage Loans and REO Properties by the Majority Class C
      Certificateholder pursuant to clause (a) in the preceding paragraph shall be
      conditioned upon the Stated Principal Balance of all of the Mortgage Loans
      in
      the Trust Fund, at the time of any such repurchase, aggregating 10% or less
      of
      the aggregate Cut-off Date Principal Balance of all of the Mortgage Loans.
      

     

    Section
      11.02  Final
      Distribution on the Certificates.

     

    If
      on any
      Determination Date, (i) 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 Distribution Account, the Master Servicer shall
      direct
      the
Securities
      Administrator to send a final distribution notice promptly to each
      Certificateholder or (ii) the Securities Administrator determines that a Class
      of Certificates shall be retired after a final distribution on such Class,
      the
      Securities Administrator
      shall
      notify the Certificateholders within five (5) Business Days after such
      Determination Date that the final distribution in retirement of such Class
      of
      Certificates is scheduled to be made on the immediately following Distribution
      Date. Any final
      distribution made pursuant to the immediately preceding sentence will be made
      only upon presentation
      and
      surrender of the Certificates at the Corporate Trust Office of the Securities
      Administrator. If the Majority Class C Certificateholder elects to terminate
      the
      Trust Fund pursuant to Section 11.01, at least 20 days prior to the date notice
      is to be mailed to the Certificateholders, the Majority Class C
      Certificateholder shall notify the Depositor, the Securities Administrator
      and
      the Trustee of the date the Majority Class C Certificateholder intends to
      terminate the Trust Fund. The Majority Class C Certificateholder shall remit
      the
      Mortgage Loan Purchase Price to the Securities Administrator on the Business
      Day
      prior to the Distribution Date for such Optional Termination by the Majority
      Class C Certificateholder.

     

    Notice
      of
      any termination of the Trust Fund, 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 Securities
      Administrator by letter to Certificateholders mailed not later than two Business
      Days after the Determination Date in the month of such final distribution.
      Any
      such notice shall specify (a) the Distribution Date upon which final
      distribution on the Certificates will be made upon presentation and surrender
      of
      Certificates at the office therein designated, (b) the amount of such final
      distribution, (c) the location of the office or agency at which such
      presentation and surrender must be made and (d) 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 Securities Administrator will give such notice to each Rating
      Agency at the time such notice is given to Certificateholders.

     

    Upon
      such
      final deposit with respect to the Trust Fund and the receipt by the Custodian
      of
      a Request for Release therefor, the Custodian shall promptly release to the
      Master Servicer, as applicable the Mortgage Files for the Mortgage Loans and
      the
      Trustee shall execute and deliver any documents prepared and delivered to it
      which are necessary to transfer any REO Property.

     

    Upon
      presentation and surrender of the Certificates, the Securities Administrator
      shall distribute to Certificateholders of each Class the amounts allocable
      to
      such Certificates held in the Distribution Account in the order and priority
      set
      forth in Section 6.04 hereof on the final Distribution Date and in proportion
      to
      their respective Percentage Interests.

     

    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 Securities Administrator 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 Securities Administrator 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 that 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 R
      Certificateholders shall be entitled to all unclaimed funds and other assets
      of
      the Trust Fund that remain subject hereto.

     

    Section
      11.03  Additional
      Termination Requirements. 

     

    (a)  Upon
      exercise by the Majority Class C Certificateholder of its purchase option as
      provided in Section 11.01, the Trust Fund shall be terminated in accordance
      with
      the following additional requirements, unless the Trustee and the Securities
      Administrator have been supplied with an Opinion of Counsel addressed to the
      Trustee and the Securities Administrator at the expense of the Majority Class
      C
      Certificateholder to the effect that the failure of the Trust Fund to comply
      with the requirements of this Section 11.03 will not (i) result in the
      imposition of taxes on “prohibited transactions” of a REMIC, or (ii) cause a
      REMIC to fail to qualify as a REMIC at any time that any Certificates are
      outstanding:

     

    (1) The
      Majority Class C Certificateholder shall establish a 90-day liquidation period
      and notify the Securities Administrator thereof, and the Securities
      Administrator shall in turn specify the first day of such period in a statement
      attached to the tax return for each of REMIC I, REMIC II, REMIC III and REMIC
      IV
      pursuant to Treasury Regulation Section 1.860F-1. The Majority Class C
      Certificateholder shall satisfy all the requirements of a qualified liquidation
      under Section 860F of the Code and any regulations thereunder, as evidenced
      by
      an Opinion of Counsel addressed to the Securities Administrator and the Trustee
      obtained at the expense of the Majority Class C Certificateholder;

     

    (2) During
      such 90-day liquidation period, and at or prior to the time of making the final
      payment on the Certificates, the Securities Administrator on behalf of the
      Trustee, shall sell all of the assets of REMIC I for cash; and

     

    (3) At
      the
      time of the making of the final payment on the Certificates, the Securities
      Administrator shall distribute or credit, or cause to be distributed or
      credited, to the Holders of the Residual Certificates, all cash on hand (other
      than cash retained to meet claims), and REMIC I shall terminate at that
      time.

     

    (b)  By
      their
      acceptance of the Certificates, the Holders thereof hereby authorize the
      adoption of a 90-day liquidation period and the adoption of a plan of complete
      liquidation for each of REMIC I, REMIC II, REMIC III and REMIC IV, which
      authorization shall be binding upon all successor
      Certificateholders.

     

    (c)  The
      Securities Administrator as agent for each REMIC hereby agrees to adopt and
      sign
      such a plan of complete liquidation meeting the requirements for a qualified
      liquidation under Section 860F of the Code and any regulations thereunder upon
      the written request of the Majority Class C Certificateholder and the receipt
      of
      the Opinion of Counsel referred to in Section 11.03(a)(1) and to take such
      other
      action in connection therewith as may be reasonably requested by the Majority
      Class C Certificateholder.

     

    ARTICLE
      XII

    MISCELLANEOUS
      PROVISIONS

     

    Section
      12.01  Amendment. 

     

    This
      Agreement may be amended from time to time by parties hereto without the consent
      of any of the Certificateholders to cure any ambiguity, to correct or supplement
      any provisions herein (including to give effect to the expectations of
      investors), to comply with any changes in the Code, to revise any provisions
      to
      reflect the obligations of the parties to this Agreement as they relate to
      Regulation AB, to change the manner in which the Distribution Account maintained
      by the Securities Administrator or the Protected Account maintained by the
      Company is maintained or to make such other provisions with respect to matters
      or questions arising under this Agreement as shall not be inconsistent with
      any
      other provisions herein if such action shall not, as evidenced by an Opinion
      of
      Counsel addressed to the Trustee, adversely affect in any material respect
      the
      interests of any Certificateholder; provided that any such amendment shall
      be
      deemed not to adversely affect in any material respect the interests of the
      Certificateholders and no such Opinion of Counsel shall be required if the
      Person requesting such amendment obtains a letter from each Rating Agency
      stating that such amendment would not result in the downgrading or withdrawal
      of
      the respective ratings then assigned to the Certificates.

     

    Notwithstanding
      the foregoing, without the consent of the Certificateholders, the parties hereto
      may at any time and from time to time amend this Agreement to modify, eliminate
      or add to any of its provisions to such extent as shall be necessary or
      appropriate to maintain the qualification of each of REMIC I, REMIC II, REMIC
      III or REMIC IV, as a REMIC under the Code or to avoid or minimize the risk
      of
      the imposition of any tax on any of REMIC I, REMIC II, REMIC III or REMIC IV
      pursuant to the Code that would be a claim against any of REMIC I, REMIC II,
      REMIC III or REMIC IV at any time prior to the final redemption of the
      Certificates, provided that the Trustee and the Securities Administrator have
      been provided an Opinion of Counsel addressed to the Trustee and the Securities
      Administrator, which opinion shall be an expense of the party requesting such
      opinion but in any case shall not be an expense of the Trustee, the Securities
      Administrator or the Trust Fund, to the effect that such action is necessary
      or
      appropriate to maintain such qualification or to avoid or minimize the risk
      of
      the imposition of such a tax.

     

    This
      Agreement may also be amended from time to time by the parties hereto with
      the
      consent of the Holders of each Class of Certificates affected thereby evidencing
      over 50% of the Voting Rights of such Class or Classes 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 that no such amendment 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) cause
      any of REMIC I, REMIC II, REMIC III or REMIC IV to cease to qualify as a REMIC
      or (iii) reduce the aforesaid percentages of Certificates of each Class the
      Holders of which are required to consent to any such amendment without the
      consent of the Holders of all Certificates of such Class 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 addressed to the Trustee, which opinion shall be an expense of the
      party
      requesting such amendment but in any case shall not be an expense of the Trustee
      or the Securities Administrator, to the effect that such amendment will not
      (other than an amendment pursuant to clause (ii) of, and in accordance with,
      the
      preceding paragraph) cause the imposition of any tax on REMIC I, REMIC II,
      REMIC
      III or REMIC IV or the Certificateholders or cause REMIC I, REMIC II, REMIC
      III
      or REMIC IV to cease to qualify as a REMIC at any time that any Certificates
      are
      outstanding. Further, nothing in this Agreement shall require the Trustee to
      enter into an amendment without receiving an Opinion of Counsel, satisfactory
      to
      the Trustee (i) that such amendment is permitted and is not prohibited by this
      Agreement and (ii) that all requirements for amending this Agreement (including
      any consent of the applicable Certificateholders) have been complied
      with.

     

    Promptly
      after the execution of any amendment to this Agreement requiring the consent
      of
      Certificateholders, the Trustee shall furnish written notification of the
      substance 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.

     

    Section
      12.02  Recordation
      of Agreement; Counterparts. 

     

    To
      the
      extent permitted by applicable law, this Agreement is subject to recordation
      in
      all appropriate public offices for real property records in all of the counties
      or other comparable jurisdictions in which any or all of the Mortgaged
      Properties are situated, and in any other appropriate public recording office
      or
      elsewhere. The Master Servicer shall effect such recordation at the Trust’s
      expense upon the request in writing of a Certificateholder, but only if such
      direction is accompanied by an Opinion of Counsel (provided at the expense
      of
      the Certificateholder requesting recordation) to the effect that such
      recordation would materially and beneficially affect the interests of the
      Certificateholders or is required by law.

     

    For
      the
      purpose of facilitating the recordation of this Agreement as herein provided
      and
      for other purposes, this Agreement may be executed simultaneously in any number
      of counterparts, each of which counterparts shall be deemed to be an original,
      and such counterparts shall constitute but one and the same
      instrument.

     

    Section
      12.03  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 WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF (OTHER THAN
      SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAWS).

     

    Section
      12.04  Intention
      of Parties. 

     

    It
      is the
      express intent of the parties hereto that the conveyance of the Mortgage Notes,
      Mortgages, assignments of Mortgages, title insurance policies and any
      modifications, extensions and/or assumption agreements and private mortgage
      insurance policies relating to the Mortgage Loans by the Seller to the
      Depositor, and by the Depositor to the Trustee be, and be construed as, an
      absolute sale thereof to the Depositor or the Trustee, as applicable. It is,
      further, not the intention of the parties that such conveyance be deemed a
      pledge thereof by the Seller to the Depositor, or by the Depositor to the
      Trustee. 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
      applicable, or if for any other reason the Mortgage Loan Purchase Agreement
      or
      this Agreement is held or deemed to create a security interest in such assets,
      then (i) the Mortgage Loan Purchase Agreement and this Agreement shall each
      be
      deemed to be a security agreement within the meaning of the Uniform Commercial
      Code of the State of New York and (ii) the conveyance provided for in the
      Mortgage Loan Purchase Agreement from the Seller to the Depositor, and the
      conveyance provided for in this Agreement from the Depositor to the Trustee,
      shall be deemed to be an assignment and a grant by the Seller or the Depositor,
      as applicable, 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
      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 assets
      of the Trust Fund, such security interest would be deemed to be a perfected
      security interest of first priority under applicable law and shall be maintained
      as such throughout the term of the Agreement.

     

    Section
      12.05  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 a Responsible Officer
      of
      the Trustee has actual knowledge:

     

    (i)  Any
      material change or amendment to this Agreement;

     

    (ii)  The
      occurrence of any Event of Default that has not been cured;

     

    (iii)  The
      resignation or termination of the Master Servicer, the Securities Administrator
      or the Trustee and the appointment of any successor;

     

    (iv)  The
      repurchase or substitution of Mortgage Loans pursuant to Sections 2.02, 2.03,
      4.21 and 11.01; and

     

    (v)  The
      final
      payment to Certificateholders.

     

    (b)  All
      directions, demands and notices hereunder shall be in writing and shall be
      deemed to have been duly given when delivered at or mailed by registered mail,
      return receipt requested, postage prepaid, or by recognized overnight courier,
      or by facsimile transmission to a number provided by the appropriate party
      if
      receipt of such transmission is confirmed to (i) in the case of the Depositor,
      Bear Stearns Asset Backed Securities I LLC, 383 Madison Avenue, New York, New
      York 10179, Attention: Chief Counsel, and with respect to Regulation AB
      notifications to the Depositor at regabnotifications@bear.com; (ii) in the
      case
      of the Seller or the Company, EMC Mortgage Corporation, EMC Mortgage
      Corporation, 2780 Lake Vista Drive, Lewisville, Texas 75067 (Facsimile: (469)
      759-4714), attention: President or General Counsel or such other address as
      may
      be hereafter furnished to the other parties hereto by the Master Servicer in
      writing; (iii) in the case of the Trustee, at each Corporate Trust Office or
      such other address as the Trustee may hereafter furnish to the other parties
      hereto; (iv) in the case of the Master Servicer or the Securities Administrator,
      P. O. Box 98, Columbia, Maryland 21046 (or, for overnight deliveries, 9062
      Old
      Annapolis Road, Columbia, Maryland 21045), Attention: BSABS I 2006-AC5 or such
      other address as may be hereafter furnished to the other parties hereto by
      the
      Securities Administrator in writing, and (v) in the case of the Rating Agencies,
      (x) Moody’s Investors Service, Inc., 99 Church Street, New York, New York 10007,
      Attention: Home Equity Monitoring and (y) Standard & Poor’s, 55 Water
      Street, 41st Floor, New York, New York 10041, Attention: Mortgage Surveillance
      Group. Any notice delivered to the Seller, the Master Servicer, the Securities
      Administrator or the Trustee under this Agreement shall be effective only upon
      receipt. Any notice required or permitted to be mailed to a Certificateholder,
      unless otherwise provided herein, shall be given by first-class mail, postage
      prepaid, at the address of such Certificateholder as shown in the Certificate
      Register; any notice so mailed within the time prescribed in this Agreement
      shall be conclusively presumed to have been duly given, whether or not the
      Certificateholder receives such notice.

     

    Section
      12.06  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
      12.07  Assignment. 

     

    Notwithstanding
      anything to the contrary contained herein, except as provided pursuant to
      Section 8.07, this Agreement may not be assigned by the Master Servicer, the
      Seller or the Depositor.

     

    Section
      12.08  Limitation
      on Rights of Certificateholders. 

     

    The
      death
      or incapacity of any Certificateholder shall not operate to terminate this
      Agreement or the Trust Fund, 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 Fund,
      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 or the Securities
      Administrator, as appropriate, a written notice of an Event of Default and
      of
      the continuance thereof, as hereinbefore provided, 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 or the Securities
      Administrator, as appropriate to institute such action, suit or proceeding
      in
      its own name as Trustee or the Securities Administrator, as appropriate,
      hereunder and shall have offered to the Trustee or the Securities Administrator,
      as appropriate, such reasonable indemnity as it may require against the costs,
      expenses, and liabilities to be incurred therein or thereby, and the Trustee
      or
      the Securities Administrator, as appropriate, 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 12.08, each and every Certificateholder, the
      Trustee or the Securities Administrator shall be entitled to such relief as
      can
      be given either at law or in equity.

     

    Section
      12.09  Inspection
      and Audit Rights. 

     

    The
      Master Servicer agrees that, on reasonable prior notice, it will 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 such Mortgage Loans
      with
      its officers, employees and independent public accountants (and by this
      provision the Master Servicer hereby authorizes such 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 Depositor or the Trustee of any right under
      this
      Section 12.09 shall be borne by the party requesting such inspection, subject
      to
      such party’s right to reimbursement hereunder (in the case of the Trustee,
      pursuant to Section 10.05 hereof).

     

    Section
      12.10  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
      Securities Administrator pursuant to this Agreement, are and shall be deemed
      fully paid.

     

    *  
       *  
       *

     

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

     

    
      	 	 	 	 	 	 	
              BEAR
                STEARNS ASSET BACKED

              SECURITIES
                I LLC,

              as
                Depositor

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              Name: 

            
	 	 	 	 	 	 	 	
              Title: 

            

    

    

    
      	 	 	 	 	 	 	
              EMC
                MORTGAGE CORPORATION,

              as
                Seller and Company

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              Name: 

            
	 	 	 	 	 	 	 	
              Title: 

            

    

    

    
      	 	 	 	 	 	 	
              WELLS
                FARGO BANK, NATIONAL 

              ASSOCIATION,

              as
                Securities Administrator and Master Servicer

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              Name: 

            
	 	 	 	 	 	 	 	
              Title: 

            

    

    

    
      	 	 	 	 	 	 	
              U.S.
                BANK NATIONAL ASSOCIATION,

              as
                Trustee

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              Name: 

            
	 	 	 	 	 	 	 	
              Title: 

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )
                  ss.:

              	 
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

    On
      this
      24th day of August, 2006, before me, a notary public in and for said State,
      appeared ____________________, personally known to me on the basis of
      satisfactory evidence to be an authorized representative of Bear Stearns Asset
      Backed Securities I LLC, one of the companies that executed the within
      instrument, and also known to me to be the person who executed it on behalf
      of
      such limited liability company and acknowledged to me that such limited
      liability company executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      	 	 
	 	
              Notary
                Public

            

    

    

    

    

    [Notarial
      Seal]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              STATE
                OF MARYLAND

            	
              )

            	 
	 	
              )
                ss.:

            	 
	
              COUNTY
                OF BALTIMORE

            	
              )

            	 

    

    
 

    On
      this
      24th day of August, 2006, before me, a notary public in and for said State,
      appeared ____________________, personally known to me on the basis of
      satisfactory evidence to be an authorized representative of Wells Fargo Bank,
      National Association that executed the within instrument, and also known to
      me
      to be the person who executed it on behalf of such national banking association,
      and acknowledged to me that such national banking association executed the
      within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      	 	 
	 	
              Notary
                Public

            

    

    

    

    

    [Notarial
      Seal]

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              STATE
                OF TEXAS

            	
              )

            	 
	 	
              )
                ss.:

            	 
	
              COUNTY
                OF DALLAS

            	
              )

            	 

    

     

    

    On
      this
      24th day of August, 2006, before me, a notary public in and for said State,
      appeared ________________________, personally known to me on the basis of
      satisfactory evidence to be an authorized representative of EMC Mortgage
      Corporation, one of the corporations that executed the within instrument, and
      also known to me to be the person who executed it on behalf of such corporation
      and acknowledged to me that such corporation executed the within
      instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      	 	 
	 	
              Notary
                Public

            

    

    

    

    

    [Notarial
      Seal]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                STATE
                  OF MASSACHUSETTS

              	
                )

              	 
	 	
                )
                  ss.:

              	 
	
                COUNTY
                  OF SUFFOLK

              	
                )

              	 

      

       

    

    On
      this
      24th day of August, 2006, before me, a notary public in and for said State,
      appeared ______________________, personally known to me on the basis of
      satisfactory evidence to be an authorized representative of U.S. Bank National
      Association that executed the within instrument, and also known to me to be
      the
      person who executed it on behalf of such corporation, and acknowledged to me
      that such corporation executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      	 	 
	 	
              Notary
                Public

            

    

     

    

    [Notarial
      Seal]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

      EXHIBIT
        A-1

      

      FORM
        OF CLASS A CERTIFICATES

       

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

       

      THE
        CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE
        PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO AS DESCRIBED
        IN
        THE AGREEMENT. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES,
        THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM
        THE
        DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN
        ITS
        CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE SECURITIES ADMINISTRATOR
        NAMED
        HEREIN.

       

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

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Certificate
                  No.1

              	
                Fixed
                  Pass-Through Rate

              
	 	 
	
                 

                Class
                  A-[1][2][3] Senior

              	 
	 	 
	
                 

                Date
                  of Pooling and Servicing Agreement and Cut-off Date:

                November
                  1, 2006

              	
                 

                Aggregate
                  Initial Certificate Principal Balance of this Certificate as of
                  the
                  Cut-off Date:

                $[_____________]

              
	 	 
	
                 

                First
                  Distribution Date:

                December
                  26, 2006

              	
                 

                Initial
                  Certificate Principal Balance of this Certificate as of the Cut-off
                  Date:
                  $[_____________]

              
	 	 
	
                 

                Master
                  Servicer:

                Wells
                  Fargo Bank, National Association

              	
                 

                CUSIP:
                  [___________]

              
	 	 
	
                 

                Assumed
                  Final Distribution Date:

                December
                  25, 2036

              	 
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

       

      SERIES
        2006-AC5

       

      evidencing
        a percentage interest in the distributions allocable to the Class A-[1][2][3]
        Certificates with respect to a Trust Fund consisting primarily of a pool
        of
        conventional, one- to four-family, fixed interest rate mortgage loans sold
        by
        BEAR STEARNS ASSET BACKED SECURITIES I LLC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Bear Stearns Asset Backed Securities
        I
        LLC, the Master Servicer, the Trustee or the Securities Administrator referred
        to below or any of their affiliates or any other person. Neither this
        Certificate nor the underlying Mortgage Loans are guaranteed or insured by
        any
        governmental entity or by Bear Stearns Asset Backed Securities I LLC, the
        Master
        Servicer, the Trustee or the Securities Administrator or any of their affiliates
        or any other person. None of Bear Stearns Asset Backed Securities I LLC,
        the
        Master Servicer or any of their affiliates will have any obligation with
        respect
        to any certificate or other obligation secured by or payable from payments
        on
        the Certificates.

       

      This
        certifies that Cede & Co. is the registered owner of the Percentage Interest
        evidenced hereby in the beneficial ownership interest of Certificates of
        the
        same Class as this Certificate in a trust (the “Trust Fund”) generally
        consisting of conventional, first lien, fixed rate mortgage loans secured
        by
        one- to four- family residences (collectively, the “Mortgage Loans”) sold by
        Bear Stearns Asset Backed Securities I LLC (“BSABS I”). The Mortgage Loans were
        sold by EMC Mortgage Corporation (“EMC”) to BSABS I. Wells Fargo Bank, National
        Association will act as master servicer of the Mortgage Loans (the “Master
        Servicer,” which term includes any successors thereto under the Agreement
        referred to below). The Trust Fund was created pursuant to the Pooling and
        Servicing Agreement, dated as of the Cut-off Date specified above (the
“Agreement”), among BSABS I, as depositor (the “Depositor”), EMC Mortgage
        Corporation, as seller and company, Wells Fargo Bank, National Association,
        as
        Master Servicer and securities administrator (the “Securities Administrator”)
        and U.S. Bank National Association, as trustee (the “Trustee”), a summary of
        certain of the pertinent provisions of which is set forth hereafter. To the
        extent not defined herein, capitalized terms used herein shall have the meaning
        ascribed to them 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 its acceptance hereof
        assents and by which such Holder is bound.

       

      Interest
        on this Certificate will accrue from and including the 25th day of the calendar
        month preceding the month in which a Distribution Date (as hereinafter defined)
        occurs to and including the 24th day of the calendar month in which that
        Distribution Date occurs on the Certificate Principal Balance hereof at a
        per
        annum rate equal to the Pass-Through Rate set forth above. The Securities
        Administrator will distribute on the 25th day of each month, or, if such
        25th
        day is not a Business Day, the immediately following Business Day (each,
        a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered at the close of
        business on the Business Day immediately preceding such Distribution Date,
        an
        amount equal to the product of the Percentage Interest evidenced by this
        Certificate and the amount (of interest and principal, if any) required to
        be
        distributed to the Holders of Certificates of the same Class as this
        Certificate. The Assumed Final Distribution Date is the Distribution Date
        in the
        month following the latest scheduled maturity date of any Mortgage Loan and
        is
        not likely to be the date on which the Certificate Principal Balance of this
        Class of Certificates will be reduced to zero.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice. The Initial Certificate Principal Balance of this
        Certificate is set forth above. The Certificate Principal Balance hereof
        will be
        reduced to the extent of distributions allocable to principal hereon and
        any
        Realized Losses allocable thereto.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that the Trustee
        or the
        Securities Administrator 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 hereby, and the rights, duties and immunities
        of the Trustee and the Securities Administrator.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. 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
        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 with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in the
        Classes and denominations specified in the Agreement. As provided in the
        Agreement and subject to certain limitations therein set forth, this Certificate
        is exchangeable for one or more new Certificates evidencing the same Class
        and
        in the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator 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 Securities Administrator,
        the
        Trustee and any agent of any of them may treat the Person in whose name this
        Certificate is registered as the owner hereof for all purposes, and none
        of
        Depositor, the Master Servicer, the Securities Administrator, the Trustee
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other related assets of the Trust Fund in accordance with
        the
        terms of the Agreement. Such optional repurchase may be made only on or after
        the first Distribution Date on which the aggregate Stated Principal Balance
        of
        the Mortgage Loans is less than or equal to a certain percentage of the
        aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
        Date
        as set forth in the Agreement. The exercise of such right will effect the
        early
        retirement of the Certificates. In no event, however, will the Trust Fund
        created by the Agreement continue beyond the earlier of (i) the expiration
        of 21
        years after the death of certain persons identified in the Agreement and
        (ii)
        the Latest Possible Maturity Date (as defined in the Agreement).

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose.

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this

      Certificate
        to be duly executed.

      

      
        	
                Dated:
                  November 30, 2006

              	 	 	 	
                WELLS
                  FARGO BANK, NATIONAL
                  ASSOCIATION,

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              
	 	 	 	 	 	 	 	 	 

      

      

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

      

      This
        is
        one of the Class
        A-[1][2][3] Certificates referred to in the within-mentioned
        Agreement.

      

      
        	 	 	 	 	 	 	 	
                WELLS
                  FARGO BANK, NATIONAL
                  ASSOCIATION,

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              
	 	 	 	 	 	 	 	 	 

      

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      ASSIGNMENT

      

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

      

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

      

      
        	 	 	 
	 	 	
                .

              

      

      

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              

      

      

      

      
        	 	 
	 	
                Signature
                  Guaranteed

              

      

      

      

      

      

      DISTRIBUTION
        INSTRUCTIONS

      

      This
        assignee should include the following for purposes of distribution:

      

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

      
        	
                to

              	 	
                ,

              
	
                for
                  the account of

              	 	
                ,

              
	
                account
                  number___________, or, if mailed by check, to

              	 	
                ,

              
	
                Applicable
                  statements should be mailed to

              	 	
                ,

              
	 	
                .

              

      

      

      
        	
                This
                  information is provided by

              	 	
                ,

              
	
                the
                  assignee named above, or

              	 	
                ,

              
	
                as
                  its agent.

              	 	 

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        A-2

      

      FORM
        OF CLASS M CERTIFICATES

       

      THIS
        CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES
        [,]
        [AND] [CLASS M-1 CERTIFICATES] [,] [AND] [CLASS M-2
        CERTIFICATES]
        [,] [AND] [CLASS M-3 CERTIFICATES] [,] [AND] [CLASS M-4 CERTIFICATES] AS
        DESCRIBED IN THE AGREEMENT (AS DEFINED BELOW).

       

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

       

      THE
        CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE
        PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO AS DESCRIBED
        IN
        THE AGREEMENT. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES,
        THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM
        THE
        DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN
        ITS
        CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE SECURITIES ADMINISTRATOR
        NAMED
        HEREIN.

       

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

       

      EACH
        HOLDER OF A CERTIFICATE OR BENEFICIAL OWNERSHIP SHALL BE DEEMED TO HAVE MADE
        THE
        REPRESENTATIONS SET FORTH IN SECTION 7.02(b) OF THE
        AGREEMENT.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                 

                Certificate
                  No.1

              	
                 

                Adjustable
                  Pass-Through Rate

              
	 	 
	
                 

                Class
                  M-[1][2][3][4] Subordinate

              	 
	 	 
	
                 

                Date
                  of Pooling and Servicing Agreement and Cut-off Date:

                November
                  1, 2006

              	
                 

                Aggregate
                  Initial Certificate Principal Balance of this Certificate as of
                  the
                  Cut-off Date:

                $[________________]

              
	 	 
	
                 

                First
                  Distribution Date:

                December
                  26, 2006

              	
                 

                Initial
                  Certificate Principal Balance of this Certificate as of the Cut-off
                  Date:
                  

                $[________________]

              
	 	 
	
                 

                Master
                  Servicer:

                Wells
                  Fargo Bank, National Association

              	
                 

                CUSIP:
                  [_______________]

              
	 	 
	
                 

                Assumed
                  Final Distribution Date:

                December
                  25, 2036

              	 
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-AC5

       

      evidencing
        a percentage interest in the distributions allocable to the Class M-[1][2][3]
        Certificates with respect to a Trust Fund consisting primarily of a pool
        of
        conventional, one- to four-family, fixed interest rate mortgage loans sold
        by
        BEAR STEARNS ASSET BACKED SECURITIES I LLC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Bear Stearns Asset Backed Securities
        I
        LLC, the Master Servicer, the Trustee or the Securities Administrator referred
        to below or any of their affiliates or any other person. Neither this
        Certificate nor the underlying Mortgage Loans are guaranteed or insured by
        any
        governmental entity or by Bear Stearns Asset Backed Securities I LLC, the
        Master
        Servicer, the Trustee or the Securities Administrator or any of their affiliates
        or any other person. None of Bear Stearns Asset Backed Securities I LLC,
        the
        Master Servicer or any of their affiliates will have any obligation with
        respect
        to any certificate or other obligation secured by or payable from payments
        on
        the Certificates.

       

      This
        certifies that Cede & Co. is the registered owner of the Percentage Interest
        evidenced hereby in the beneficial ownership interest of Certificates of
        the
        same Class as this Certificate in a trust (the “Trust Fund”) generally
        consisting of conventional, first lien, fixed rate mortgage loans secured
        by
        one- to four- family residences (collectively, the “Mortgage Loans”) sold by
        Bear Stearns Asset Backed Securities I LLC (“BSABS I”). The Mortgage Loans were
        sold by EMC Mortgage Corporation (“EMC”) to BSABS I. Wells Fargo Bank, National
        Association will act as master servicer of the Mortgage Loans (the “Master
        Servicer,” which term includes any successors thereto under the Agreement
        referred to below). The Trust Fund was created pursuant to the Pooling and
        Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement”), among BSABS I, as depositor (the “Depositor”), EMC Mortgage
        Corporation, as seller and company, Wells Fargo Bank, National Association,
        as
        Master Servicer and securities administrator (the “Securities Administrator”)
        and U.S. Bank National Association as trustee (the “Trustee”), a summary of
        certain of the pertinent provisions of which is set forth hereafter. To the
        extent not defined herein, capitalized terms used herein shall have the meaning
        ascribed to them 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 its acceptance hereof
        assents and by which such Holder is bound.

       

      Interest
        on this Certificate will accrue from and including the 25th day of the calendar
        month preceding the month in which a Distribution Date (as hereinafter defined)
        occurs (or, with respect to the first accrual period, the Closing Date) to
        and
        including the 24th day of the calendar month in which that Distribution Date
        occurs on the Certificate Principal Balance hereof at a per annum rate equal
        to
        the Pass-Through Rate set forth above and as further described in the Agreement.
        The Securities Administrator will distribute on the 25th day of each month,
        or,
        if such 25th day is not a Business Day, the immediately following Business
        Day
        (each, a “Distribution Date”), commencing on the First Distribution Date
        specified above, to the Person in whose name this Certificate is registered
        at
        the close of business on the Business Day immediately preceding such
        Distribution Date, an amount equal to the product of the Percentage Interest
        evidenced by this Certificate and the amount (of interest and principal,
        if any)
        required to be distributed to the Holders of Certificates of the same Class
        as
        this Certificate. The Assumed Final Distribution Date is the Distribution
        Date
        in the month immediately following the month of the latest scheduled maturity
        date of any Mortgage Loan and is not likely to be the date on which the
        Certificate Principal Balance of this Class of Certificates will be reduced
        to
        zero.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice. The Initial Certificate Principal Balance of this
        Certificate is set forth above. The Certificate Principal Balance hereof
        will be
        reduced to the extent of distributions allocable to principal hereon and
        any
        Realized Losses allocable hereto.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      Each
        holder of a Certificate or beneficial ownership shall be deemed to have made
        the
        representations set forth in section 7.02(b) of the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that the Trustee
        or the
        Securities Administrator 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 hereby, and the rights, duties and immunities
        of the Trustee and the Securities Administrator.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. 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
        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 with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in the
        Classes and denominations specified in the Agreement. As provided in the
        Agreement and subject to certain limitations therein set forth, this Certificate
        is exchangeable for one or more new Certificates evidencing the same Class
        and
        in the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator 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 Securities Administrator,
        the
        Trustee and any agent of any of them may treat the Person in whose name this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Securities Administrator, the Trustee
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other related assets of the Trust Fund in accordance with
        the
        terms of the Agreement. Such optional repurchase may be made only on or after
        the first Distribution Date on which the aggregate Stated Principal Balance
        of
        the Mortgage Loans is less than or equal to a certain percentage of the
        aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
        Date
        as set forth in the Agreement. The exercise of such right will effect the
        early
        retirement of the Certificates. In no event, however, will the Trust Fund
        created by the Agreement continue beyond the earlier of (i) the expiration
        of 21
        years after the death of certain persons identified in the Agreement and
        (ii)
        the Latest Possible Maturity Date (as defined in the Agreement).

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose.

       

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

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

      

      
        	
                Dated:
                  November 30, 2006

              	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION,

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

      

      This
        is
        one of the Class M-[1][2][3] Certificates referred to in the within-mentioned
        Agreement.

      

      
        	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION, as Securities
                  Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      ASSIGNMENT

      

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

      

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

      

      
        	 	 	 
	 	 	
                .

              

      

      

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              

      

      

      

      
        	 	 
	 	
                Signature
                  Guaranteed

              

      

      

      

      

      

      DISTRIBUTION
        INSTRUCTIONS

      

      This
        assignee should include the following for purposes of distribution:

      

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

      
        	
                to

              	 	
                ,

              
	
                for
                  the account of

              	 	
                ,

              
	
                account
                  number___________, or, if mailed by check, to

              	 	
                ,

              
	
                Applicable
                  statements should be mailed to

              	 	
                ,

              
	 	
                .

              

      

      

      
        	
                This
                  information is provided by

              	 	
                ,

              
	
                the
                  assignee named above, or

              	 	
                ,

              
	
                as
                  its agent.

              	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        A-3

      

      FORM
        OF CLASS B CERTIFICATES

       

      THIS
        CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES
        [,]
        [AND] [CLASS M-1 CERTIFICATES] [,] [AND] [CLASS M-2 CERTIFICATES] [,] [AND]
        [CLASS M-3 CERTIFICATES] [,] [AND] [CLASS M-4 CERTIFICATES] [,] [AND] [CLASS
        B-1
        CERTIFICATES] [,] [AND] [CLASS B-2 CERTIFICATES] [,] [CLASS B-3 CERTIFICATES]
        AS
        DESCRIBED IN THE AGREEMENT (AS DEFINED BELOW).

       

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

       

      THE
        CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE
        PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO AS DESCRIBED
        IN
        THE AGREEMENT. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES,
        THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM
        THE
        DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN
        ITS
        CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE SECURITIES ADMINISTRATOR
        NAMED
        HEREIN.

       

      [For
        Class B-1, Class B-2 and Class B-3] [UNLESS THIS CERTIFICATE IS PRESENTED
        BY AN
        AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR
        OR
        ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
        ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
        REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY
        AND
        ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
        FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED
        OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

       

      [For
        Class B-1, Class B-2 and Class B-3] [EACH HOLDER OF A CERTIFICATE OR BENEFICIAL
        OWNERSHIP SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS SET FORTH IN SECTION
        7.02(b) OF THE AGREEMENT.]

       

      [For
        Class B-4] [THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
        THE
        SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES
        LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS
        CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY
        IN
        COMPLIANCE WITH THE ACT AND OTHER APPLICABLE LAWS AND ONLY (1) PURSUANT TO
        RULE
        144A UNDER THE ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES
        IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”),
        PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB,
        WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE
        OR
        OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT TO AN
        EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE ACT (IF AVAILABLE)
        OR
        (3) IN CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE
        MEANING THEREOF IN RULE 501(a)(1), (2),(3) OR (7) (OR ANY ENTITY IN WHICH
        ALL OF
        THE EQUITY HOLDERS COME WITHIN SUCH PARAGRAPHS) OF REGULATION D UNDER THE
        ACT
        PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE ACT, SUBJECT TO (A) THE
        RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER SUBSTANTIALLY IN THE
        FORM
        PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE SECURITIES ADMINISTRATOR
        OF
        AN OPINION OF COUNSEL AS TO COMPLIANCE WITH ALL APPLICABLE SECURITIES LAWS
        OF
        THE UNITED STATES. THIS CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY
        BY, OR ON BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT
        WHICH IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
        OF
        1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS
        AMENDED, UNLESS THE TRANSFEREE CERTIFIES OR REPRESENTS THAT THE PROPOSED
        TRANSFER AND HOLDING OF A CERTIFICATE AND THE SERVICING, MANAGEMENT AND
        OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN ANY PROHIBITED
        TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL OR CLASS PROHIBITED
        TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO, PROHIBITED TRANSACTION
        CLASS EXEMPTION (“PTCE”) 84-14, PTCE 91-38, PTCE 90-1, PTCE 95-60 OR PTCE 96-23
        AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL OBLIGATIONS ON THE PART OF
        THE
        DEPOSITOR, THE SECURITIES ADMINISTRATOR, THE MASTER SERVICER OR THE TRUSTEE,
        WHICH WILL BE DEEMED REPRESENTED BY AN OWNER OF A BOOK-ENTRY CERTIFICATE
        OR A
        GLOBAL CERTIFICATE, OR PROVIDES AN OPINION OF COUNSEL TO SUCH
        EFFECT.]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                 

                Certificate
                  No.1

              	
                 

                Adjustable
                  Pass-Through Rate

              
	 	 
	
                 

                Class
                  B-[1][2][3][4] Subordinate

              	 
	 	 
	
                 

                Date
                  of Pooling and Servicing Agreement and Cut-off Date:

                November
                  1, 2006

              	
                 

                Aggregate
                  Initial Certificate Principal Balance of this Certificate as of
                  the
                  Cut-off Date:

                $[________________]

              
	 	 
	
                 

                First
                  Distribution Date:

                December
                  26, 2006

              	
                 

                Initial
                  Certificate Principal Balance of this Certificate as of the Cut-off
                  Date:
                  

                $[________________]

              
	 	 
	
                 

                Master
                  Servicer:

                Wells
                  Fargo Bank, National Association

              	
                 

                CUSIP:
                  [_______________]

              
	 	 
	
                 

                Assumed
                  Final Distribution Date:

                December
                  25, 2036

              	 
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-AC5

       

      evidencing
        a percentage interest in the distributions allocable to the Class B-[1][2][3][4]
        Certificates with respect to a Trust Fund consisting primarily of a pool
        of
        conventional, one- to four-family, fixed interest rate mortgage loans sold
        by
        BEAR STEARNS ASSET BACKED SECURITIES I LLC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Bear Stearns Asset Backed Securities
        I
        LLC, the Master Servicer, the Trustee or the Securities Administrator referred
        to below or any of their affiliates or any other person. Neither this
        Certificate nor the underlying Mortgage Loans are guaranteed or insured by
        any
        governmental entity or by Bear Stearns Asset Backed Securities I LLC, the
        Master
        Servicer, the Trustee or the Securities Administrator or any of their affiliates
        or any other person. None of Bear Stearns Asset Backed Securities I LLC,
        the
        Master Servicer or any of their affiliates will have any obligation with
        respect
        to any certificate or other obligation secured by or payable from payments
        on
        the Certificates.

       

      This
        certifies that ___________ is the registered owner of the Percentage Interest
        evidenced hereby in the beneficial ownership interest of Certificates of
        the
        same Class as this Certificate in a trust (the “Trust Fund”) generally
        consisting of conventional, first lien, fixed rate mortgage loans secured
        by
        one- to four- family residences (collectively, the “Mortgage Loans”) sold by
        Bear Stearns Asset Backed Securities I LLC (“BSABS I”). The Mortgage Loans were
        sold by EMC Mortgage Corporation (“EMC”) to BSABS I. Wells Fargo Bank, National
        Association will act as master servicer of the Mortgage Loans (the “Master
        Servicer,” which term includes any successors thereto under the Agreement
        referred to below). The Trust Fund was created pursuant to the Pooling and
        Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement”), among BSABS I, as depositor (the “Depositor”), EMC Mortgage
        Corporation, as seller and company, Wells Fargo Bank, National Association,
        as
        Master Servicer and securities administrator (the “Securities Administrator”)
        and U.S. Bank National Association as trustee (the “Trustee”), a summary of
        certain of the pertinent provisions of which is set forth hereafter. To the
        extent not defined herein, capitalized terms used herein shall have the meaning
        ascribed to them 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 its acceptance hereof
        assents and by which such Holder is bound.

       

      [For
        Class B-1, Class B-2 and Class B-3] [Interest on this Certificate will accrue
        from and including the 25th day of the calendar month preceding the month
        in
        which a Distribution Date (as hereinafter defined) occurs (or, with respect
        to
        the first accrual period, the Closing Date) to and including the 24th day
        of the
        calendar month in which that Distribution Date occurs on the Certificate
        Principal Balance hereof at a per annum rate equal to the Pass-Through Rate
        set
        forth above and as further described in the Agreement. The Securities
        Administrator will distribute on the 25th day of each month, or, if such
        25th
        day is not a Business Day, the immediately following Business Day (each,
        a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered at the close of
        business on the Business Day immediately preceding such Distribution Date,
        an
        amount equal to the product of the Percentage Interest evidenced by this
        Certificate and the amount (of interest and principal, if any) required to
        be
        distributed to the Holders of Certificates of the same Class as this
        Certificate. The Assumed Final Distribution Date is the Distribution Date
        in the
        month immediately following the month of the latest scheduled maturity date
        of
        any Mortgage Loan and is not likely to be the date on which the Certificate
        Principal Balance of this Class of Certificates will be reduced to
        zero.]

       

      [For
        Class B-4] [Interest on this Certificate will accrue from and including the
        25th
        day of the calendar month preceding the month in which a Distribution Date
        (as
        hereinafter defined) occurs (or, with respect to the first accrual period,
        the
        Closing Date) to and including the 24th day of the calendar month in which
        that
        Distribution Date occurs on the Certificate Principal Balance hereof at a
        per
        annum rate equal to the Pass-Through Rate set forth above and as further
        described in the Agreement. The Securities Administrator will distribute
        on the
        25th day of each month, or, if such 25th day is not a Business Day, the
        immediately following Business Day (each, a “Distribution Date”), commencing on
        the First Distribution Date specified above, to the Person in whose name
        this
        Certificate is registered at the close of business on the last Business Day
        of
        the month immediately preceding the month of such Distribution date so long
        as
        this Certificate remains in non book-entry form (and otherwise, the close
        of
        business on the Business Day immediately preceding such Distribution Date)
        an
        amount equal to the product of the Percentage Interest evidenced by this
        Certificate and the amount (of interest and principal, if any) required to
        be
        distributed to the Holders of Certificates of the same Class as this
        Certificate. The Assumed Final Distribution Date is the Distribution Date
        in the
        month following the latest scheduled maturity date of any Mortgage
        Loan.]

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice. The Initial Certificate Principal Balance of this
        Certificate is set forth above. The Certificate Principal Balance hereof
        will be
        reduced to the extent of distributions allocable to principal hereon and
        any
        Realized Losses allocable hereto.

       

      [For
        Class B-4] [No transfer of this Class B-4 Certificate will be made unless
        such
        transfer is (i) exempt from the registration requirements of the Securities
        Act
        of 1933, as amended, and any applicable state securities laws or is made
        in
        accordance with said Act and laws and (ii) made in accordance with Section
        7.02
        of the Agreement. In the event that such transfer is to be made the Securities
        Administrator shall register such transfer if, (i) made to a transferee who
        has
        provided the Securities Administrator with evidence as to its QIB status;
        or
        (ii) (A) the transferor has advised the Securities Administrator in writing
        that
        the Certificate is being transferred to an Institutional Accredited Investor
        and
        (B) prior to such transfer the transferee furnishes to the Securities
        Administrator an Investment Letter; provided that if based upon an Opinion
        of
        Counsel to the effect that (A) and (B) above are not sufficient to confirm
        that
        such transfer is being made pursuant to an exemption from, or in a transaction
        not subject to, the registration requirements of the Securities Act and other
        applicable laws, the Securities Administrator shall as a condition of the
        registration of any such transfer require the transferor to furnish such
        other
        certifications, legal opinions or other information prior to registering
        the
        transfer of this Certificate as shall be set forth in such Opinion of
        Counsel.]

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      [For
        Class B-1, Class B-2 and Class B-3] [Each holder of a Certificate or beneficial
        ownership shall be deemed to have made the representations set forth in section
        7.02(b) of the Agreement.]

       

      [For
        Class B-4] [This Certificate may not be acquired directly or indirectly by,
        or
        on behalf of, an employee benefit plan or other retirement arrangement which
        is
        subject to Title I of the Employee Retirement Income Security Act of 1974,
        as
        amended, or Section 4975 of the Internal Revenue Code of 1986, as amended,
        unless the transferee certifies or represents that the proposed transfer
        and
        holding of a Certificate and the servicing, management and operation of the
        trust and its assets: (i) will not result in any prohibited transaction which
        is
        not covered under an individual or class prohibited transaction exemption,
        including, but not limited to, Prohibited Transaction Class Exemption (“PTCE”)
        84-14, PTCE 91-38, PTCE 90-1, PTCE 95-60 or PTCE 96-23 and (ii) will not
        give
        rise to any additional obligations on the part of the Depositor, the Master
        Servicer, the Securities Administrator or the Trustee, which will be deemed
        represented by an owner of a Book-Entry Certificate or a Global Certificate,
        or
        an Opinion of Counsel specified in section 7.02 of the Agreement is provided.
        This Certificate is one of a duly authorized issue of Certificates designated
        as
        set forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.]

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that the Trustee
        or the
        Securities Administrator 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 hereby, and the rights, duties and immunities
        of the Trustee and the Securities Administrator.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. 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
        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 with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in the
        Classes and denominations specified in the Agreement. As provided in the
        Agreement and subject to certain limitations therein set forth, this Certificate
        is exchangeable for one or more new Certificates evidencing the same Class
        and
        in the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator 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 Securities Administrator,
        the
        Trustee and any agent of any of them may treat the Person in whose name this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Securities Administrator, the Trustee
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other related assets of the Trust Fund in accordance with
        the
        terms of the Agreement. Such optional repurchase may be made only on or after
        the first Distribution Date on which the aggregate Stated Principal Balance
        of
        the Mortgage Loans is less than or equal to a certain percentage of the
        aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
        Date
        as set forth in the Agreement. The exercise of such right will effect the
        early
        retirement of the Certificates. In no event, however, will the Trust Fund
        created by the Agreement continue beyond the earlier of (i) the expiration
        of 21
        years after the death of certain persons identified in the Agreement and
        (ii)
        the Latest Possible Maturity Date (as defined in the Agreement).

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

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

      

      
        	
                Dated:
                  November 30, 2006

              	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION,

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

      

      This
        is
        one of the Class B-[1][2][3][4] Certificates referred to in the within-mentioned
        Agreement.

      

      
        	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION, as Securities
                  Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      ASSIGNMENT

      

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

      

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

      

      
        	 	 	 
	 	 	
                .

              

      

      

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              

      

      

      

      
        	 	 
	 	
                Signature
                  Guaranteed

              

      

      

      

      

      

      DISTRIBUTION
        INSTRUCTIONS

      

      This
        assignee should include the following for purposes of distribution:

      

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

      
        	
                to

              	 	
                ,

              
	
                for
                  the account of

              	 	
                ,

              
	
                account
                  number___________, or, if mailed by check, to

              	 	
                ,

              
	
                Applicable
                  statements should be mailed to

              	 	
                ,

              
	 	
                .

              

      

      

      
        	
                This
                  information is provided by

              	 	
                ,

              
	
                the
                  assignee named above, or

              	 	
                ,

              
	
                as
                  its agent.

              	 	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        A-4

      

      FORM
        OF CLASS
        C CERTIFICATEs

       

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

       

      THIS
        CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER
        HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY
        BE
        REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH
        THE
        ACT AND OTHER APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE 144A UNDER THE
        ACT
        (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED
        INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR
        ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER
        HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER
        IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM
        REGISTRATION PROVIDED BY RULE 144 UNDER THE ACT (IF AVAILABLE) OR (3) IN
        CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING
        THEREOF IN RULE 501(a)(1), (2),(3) OR (7) (OR ANY ENTITY IN WHICH ALL OF
        THE
        EQUITY HOLDERS COME WITHIN SUCH PARAGRAPHS) OF REGULATION D UNDER THE ACT
        PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE ACT, SUBJECT TO (A) THE
        RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER SUBSTANTIALLY IN THE
        FORM
        PROVIDED IN THE AGREEMENT (as defined below) AND (B) THE RECEIPT BY THE
        SECURITIES ADMINISTRATOR OF AN OPINION OF COUNSEL AS TO COMPLIANCE WITH ALL
        APPLICABLE SECURITIES LAWS OF THE UNITED STATES.

       

      NO
        TRANSFER OF THIS CERTIFICATE SHALL BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES EITHER (I) A CERTIFICATION PURSUANT TO SECTION 7.02(b) OF THE AGREEMENT
        OR (II) AN OPINION OF COUNSEL PURSUANT TO 7.02(b) OF THE AGREEMENT, SATISFACTORY
        TO THE SECURITIES ADMINISTRATOR THAT THE PURCHASE AND HOLDING OF THIS
        CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR
        RESULT
        IN ANY NON-EXEMPT PROHIBITED TRANSACTIONS UNDER SECTION 406 OF THE EMPLOYEE
        RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF
        THE CODE AND WILL NOT SUBJECT THE TRUSTEE, MASTER SERVICER, THE SECURITIES
        ADMINISTRATOR, OR THE DEPOSITOR TO ANY OBLIGATION OR LIABILITY IN ADDITION
        TO
        THOSE UNDERTAKEN IN THE AGREEMENT.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Certificate
                  No. 1

              	
                Percentage
                  Interest: 100%

              
	 	 
	
                Class
                  C

              	 
	 	 
	
                Date
                  of Pooling and Servicing Agreement 

                and
                  Cut-off Date:

                November
                  1, 2006

              	
                Aggregate
                  Certificate Notional Amount of this Certificate as of the Cut-off
                  Date:

                $[____________]

              
	 	 
	
                First
                  Distribution Date:

                December
                  26, 2006

              	
                Initial
                  Certificate Notional Amount of this Certificate as of the Cut-off
                  Date:

                $[____________]

              
	 	 
	
                Master
                  Servicer:

                Wells
                  Fargo Bank, National Association

              	
                CUSIP:
                  [_______________]

              
	 	 
	
                Assumed
                  Final Distribution Date:

                December
                  25, 2036

              	 
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-AC5

       

      evidencing
        a percentage interest in the distributions allocable to the Class C Certificates
        with respect to a Trust Fund consisting primarily of a pool of conventional,
        one- to four-family, fixed interest rate mortgage loans sold by BEAR STEARNS
        ASSET BACKED SECURITIES I LLC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Bear Stearns Asset Backed Securities
        I
        LLC, the Master Servicer, the Trustee or the Securities Administrator referred
        to below or any of their affiliates or any other person. Neither this
        Certificate nor the underlying Mortgage Loans are guaranteed or insured by
        any
        governmental entity or by Bear Stearns Asset Backed Securities I LLC, the
        Master
        Servicer, the Trustee or the Securities Administrator or any of their affiliates
        or any other person. None of Bear Stearns Asset Backed Securities I LLC,
        the
        Master Servicer or any of their affiliates will have any obligation with
        respect
        to any certificate or other obligation secured by or payable from payments
        on
        the Certificates.

       

      This
        certifies that ________________ is the registered owner of the Percentage
        Interest evidenced hereby in the beneficial ownership interest of Certificates
        of the same Class as this Certificate in a trust (the “Trust Fund”) generally
        consisting of conventional, first lien, fixed rate mortgage loans secured
        by
        one- to four- family residences (collectively, the “Mortgage Loans”) sold by
        Bear Stearns Asset Backed Securities I LLC (“BSABS I”). The Mortgage Loans were
        sold by EMC Mortgage Corporation (“EMC”) to BSABS I. Wells Fargo Bank, National
        Association will act as master servicer of the Mortgage Loans (the “Master
        Servicer,” which term includes any successors thereto under the Agreement
        referred to below). The Trust Fund was created pursuant to the Pooling and
        Servicing Agreement, dated as of the Cut-off Date specified above (the
“Agreement”), among BSABS I, as depositor (the “Depositor”), EMC Mortgage
        Corporation, as seller and company, Wells Fargo Bank, National Association,
        as
        Master Servicer and securities administrator (the “Securities Administrator”)
        and U.S. Bank National Association, as trustee (the “Trustee”), a summary of
        certain of the pertinent provisions of which is set forth hereafter. To the
        extent not defined herein, capitalized terms used herein shall have the meaning
        ascribed to them 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 its acceptance hereof
        assents and by which such Holder is bound.

       

      The
        Securities Administrator will distribute on the 25th day of each month, or,
        if
        such 25th day is not a Business Day, the immediately following Business Day
        (each, a “Distribution Date”), commencing on the First Distribution Date
        specified above, to the Person in whose name this Certificate is registered
        at
        the close of business on the last day (or if such last day is not a Business
        Day, the Business Day immediately preceding such last day) of the calendar
        month
        immediately preceding the month in which the Distribution Date occurs, an
        amount
        equal to the product of the Percentage Interest evidenced by this Certificate
        and the amounts required to be distributed to the Holders of Certificates
        of the
        same Class as this Certificate. The Assumed Final Distribution Date is the
        Distribution Date in the month following the latest scheduled maturity date
        of
        any Mortgage Loan.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice.

       

      No
        transfer of this Certificate shall be made unless the transfer is made pursuant
        to an effective registration statement under the Securities Act of 1933,
        as
        amended (the “1933 Act”), and an effective registration or qualification under
        applicable state securities laws, or is made in a transaction that does not
        require such registration or qualification. In the event that such a transfer
        of
        this Certificate is to be made without registration or qualification, the
        Securities Administrator shall require receipt of (i) if such transfer is
        purportedly being made in reliance upon Rule 144A under the 1933 Act, written
        certifications from the Holder of the Certificate desiring to effect the
        transfer, and from such Holder’s prospective transferee, substantially in the
        forms attached to the Agreement as Exhibit D and either Exhibit E or Exhibit
        F,
        as applicable, and (ii) in all other cases, an Opinion of Counsel satisfactory
        to it that such transfer may be made without such registration or qualification
        (which Opinion of Counsel shall not be an expense of the Trust Fund or of
        the
        Depositor, the Trustee, the Securities Administrator or the Master Servicer
        in
        their respective capacities as such), together with copies of the written
        certification(s) of the Holder of the Certificate desiring to effect the
        transfer and/or such Holder’s prospective transferee upon which such Opinion of
        Counsel is based. Neither the Depositor nor the Securities Administrator
        is
        obligated to register or qualify the Class of Certificates specified on the
        face
        hereof under the 1933 Act or any other securities law or to take any action
        not
        otherwise required under the Agreement to permit the transfer of such
        Certificates without registration or qualification. Any Holder desiring to
        effect a transfer of this Certificate shall be required to indemnify the
        Trustee, the Securities Administrator, 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 this Certificate shall be made to any person, unless the transferee
        provides either (i) a certification pursuant to section 7.02(b) of the Agreement
        or an (ii) Opinion of Counsel pursuant to section 7.02(b) of the Agreement,
        satisfactory to the Securities Administrator that the purchase and holding
        of
        this Certificate are permissible under applicable law, will not constitute
        or
        result in any non-exempt prohibited transactions under Section 406 ERISA
        or
        Section 4975 of the Code and will not subject the Trustee, Master Servicer,
        the
        Securities Administrator, or the Depositor to any obligation or liability
        in
        addition to those undertaken in the Agreement.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that the Trustee
        or the
        Securities Administrator 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 hereby, and the rights, duties and immunities
        of the Trustee and the Securities Administrator.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. 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
        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 with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in the
        Classes and denominations specified in the Agreement. As provided in the
        Agreement and subject to certain limitations therein set forth, this Certificate
        is exchangeable for one or more new Certificates evidencing the same Class
        and
        in the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator 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 Securities Administrator
        and
        the Trustee and any agent of any of them may treat the Person in whose name
        this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Securities Administrator, the Trustee
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other related assets of the Trust Fund in accordance with
        the
        terms of the Agreement. Such optional repurchase may be made only on or after
        the first Distribution Date on which the aggregate Stated Principal Balance
        of
        the Mortgage Loans is less than or equal to a certain percentage of the
        aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
        Date
        as set forth in the Agreement. The exercise of such right will effect the
        early
        retirement of the Certificates. In no event, however, will the Trust Fund
        created by the Agreement continue beyond the earlier of (i) the expiration
        of 21
        years after the death of certain persons identified in the Agreement and
        (ii)
        the Latest Possible Maturity Date (as defined in the Agreement).

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

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

       

      
        	
                Dated:
                  November 30, 2006

              	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION,

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class C Certificates referred to in the within-mentioned
        Agreement.

       

      
        	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION,

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      ASSIGNMENT

      

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

      

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

      

      
        	 	 	 
	 	 	
                .

              

      

      

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              

      

      

      

      
        	 	 
	 	
                Signature
                  Guaranteed

              

      

      

      

      

      

      DISTRIBUTION
        INSTRUCTIONS

      

      This
        assignee should include the following for purposes of distribution:

      

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

      
        	
                to

              	 	
                ,

              
	
                for
                  the account of

              	 	
                ,

              
	
                account
                  number___________, or, if mailed by check, to

              	 	
                ,

              
	
                Applicable
                  statements should be mailed to

              	 	
                ,

              
	 	
                .

              

      

      

      
        	
                This
                  information is provided by

              	 	
                ,

              
	
                the
                  assignee named above, or

              	 	
                ,

              
	
                as
                  its agent.

              	 	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        A-5

      

      FORM
        OF CLASS P CERTIFICATES

       

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

       

      THE
        CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE
        PRINCIPAL PAYMENTS HEREON. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF
        THE
        CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL
        BE
        DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE
        MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE SECURITIES
        ADMINISTRATOR NAMED HEREIN.

       

      THIS
        CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER
        HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY
        BE
        REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH
        THE
        ACT AND OTHER APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE 144A UNDER THE
        ACT
        (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED
        INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR
        ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER
        HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER
        IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM
        REGISTRATION PROVIDED BY RULE 144 UNDER THE ACT (IF AVAILABLE) OR (3) IN
        CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING
        THEREOF IN RULE 501(a)(1), (2),(3) OR (7) (OR ANY ENTITY IN WHICH ALL OF
        THE
        EQUITY HOLDERS COME WITHIN SUCH PARAGRAPHS) OF REGULATION D UNDER THE ACT
        PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE ACT, SUBJECT TO (A) THE
        RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER SUBSTANTIALLY IN THE
        FORM
        PROVIDED IN THE AGREEMENT (AS DEFINED BELOW) AND (B) THE RECEIPT BY THE
        SECURITIES ADMINISTRATOR OF AN OPINION OF COUNSEL AS TO COMPLIANCE WITH ALL
        APPLICABLE SECURITIES LAWS OF THE UNITED STATES.

       

      NO
        TRANSFER OF THIS CERTIFICATE SHALL BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES EITHER (I) A CERTIFICATION PURSUANT TO SECTION 7.02(b) OF THE AGREEMENT
        OR (II) AN OPINION OF COUNSEL PURSUANT TO 7.02(b) OF THE AGREEMENT, SATISFACTORY
        TO THE SECURITIES ADMINISTRATOR THAT THE PURCHASE AND HOLDING OF THIS
        CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR
        RESULT
        IN ANY NON-EXEMPT PROHIBITED TRANSACTIONS UNDER SECTION 406 OF THE EMPLOYEE
        RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF
        THE CODE AND WILL NOT SUBJECT THE TRUSTEE, MASTER SERVICER, THE SECURITIES
        ADMINISTRATOR, OR THE DEPOSITOR TO ANY OBLIGATION OR LIABILITY IN ADDITION
        TO
        THOSE UNDERTAKEN IN THE AGREEMENT.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                 

                Certificate
                  No.1

              	
                 

                Percentage
                  Interest: 100%

              
	 	 
	
                 

                Class
                  P

              	 
	 	 
	
                 

                Date
                  of Pooling and Servicing Agreement and Cut-off Date:

                November
                  1, 2006

              	
                 

                Aggregate
                  Initial Certificate Principal Balance of this Certificate as of
                  the
                  Cut-off Date:

                $100.00

              
	 	 
	
                 

                First
                  Distribution Date:

                December
                  26, 2006

              	
                 

                Initial
                  Certificate Principal Balance of this Certificate as of the Cut-off
                  Date:
                  

                $100.00

              
	 	 
	
                 

                Master
                  Servicer:

                Wells
                  Fargo Bank, National Association

              	
                 

                CUSIP:
                  [_________________]

              
	 	 
	
                 

                Assumed
                  Final Distribution Date:

                December
                  25, 2036

              	 
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-AC5

       

      evidencing
        a percentage interest in the distributions allocable to the Class P Certificates
        with respect to a Trust Fund consisting primarily of a pool of conventional,
        one- to four-family, fixed interest rate mortgage loans sold by BEAR STEARNS
        ASSET BACKED SECURITIES I LLC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Bear Stearns Asset Backed Securities
        I
        LLC, the Master Servicer, the Trustee or the Securities Administrator referred
        to below or any of their affiliates or any other person. Neither this
        Certificate nor the underlying Mortgage Loans are guaranteed or insured by
        any
        governmental entity or by Bear Stearns Asset Backed Securities I LLC, the
        Master
        Servicer, the Trustee or the Securities Administrator or any of their affiliates
        or any other person. None of Bear Stearns Asset Backed Securities I LLC,
        the
        Master Servicer or any of their affiliates will have any obligation with
        respect
        to any certificate or other obligation secured by or payable from payments
        on
        the Certificates.

       

      This
        certifies that ________________ is the registered owner of the Percentage
        Interest evidenced hereby in the beneficial ownership interest of Certificates
        of the same Class as this Certificate in a trust (the “Trust Fund”) generally
        consisting of conventional, first lien, fixed rate mortgage loans secured
        by
        one- to four- family residences (collectively, the “Mortgage Loans”) sold by
        Bear Stearns Asset Backed Securities I LLC (“BSABS I”). The Mortgage Loans were
        sold by EMC Mortgage Corporation (“EMC”) to BSABS I. Wells Fargo Bank, National
        Association will act as master servicer of the Mortgage Loans (the “Master
        Servicer,” which term includes any successors thereto under the Agreement
        referred to below). The Trust Fund was created pursuant to the Pooling and
        Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement”), among BSABS I, as depositor (the “Depositor”), EMC Mortgage
        Corporation, as seller and company, Wells Fargo Bank, National Association,
        as
        Master Servicer and securities administrator (the “Securities Administrator”)
        and U.S. Bank National Association, as trustee (the “Trustee”), a summary of
        certain of the pertinent provisions of which is set forth hereafter. To the
        extent not defined herein, capitalized terms used herein shall have the meaning
        ascribed to them 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 its acceptance hereof
        assents and by which such Holder is bound.

       

      Each
        Holder of this Certificate will be deemed to have agreed to be bound by the
        restrictions set forth in the Agreement to the effect that (i) each person
        holding or acquiring any Ownership Interest in this Certificate must be a
        United
        States Person and a Permitted Transferee, (ii) the transfer of any Ownership
        Interest in this Certificate will be conditioned upon the delivery to the
        Securities Administrator of, among other things, an affidavit to the effect
        that
        it is a United States Person and Permitted Transferee, (iii) any attempted
        or
        purported transfer of any Ownership Interest in this Certificate in violation
        of
        such restrictions will be absolutely null and void and will vest no rights
        in
        the purported transferee, and (iv) if any person other than a United States
        Person and a Permitted Transferee acquires any Ownership Interest in this
        Certificate in violation of such restrictions, then the Depositor will have
        the
        right, in its sole discretion and without notice to the Holder of this
        Certificate, to sell this Certificate to a purchaser selected by the Depositor,
        which purchaser may be the Depositor, or any affiliate of the Depositor,
        on such
        terms and conditions as the Depositor may choose.

       

      The
        Securities Administrator will distribute on the 25th
        day of
        each month, or, if such 25th day is not a Business Day, the immediately
        following Business Day (each, a “Distribution Date”), commencing on the First
        Distribution Date specified above, to the Person in whose name this Certificate
        is registered at the close of business on the last day (or if such last day
        is
        not a Business Day, the Business Day immediately preceding such last day)
        of the
        calendar month immediately preceding the month in which the Distribution
        Date
        occurs, an amount equal to the product of the Percentage Interest evidenced
        by
        this Certificate and the amounts required to be distributed to the Holders
        of
        Certificates of the same Class as this Certificate. The Assumed Final
        Distribution Date is the Distribution Date in the month following the latest
        scheduled maturity date of any Mortgage Loan.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice.

       

      No
        transfer of this Certificate shall be made unless the transfer is made pursuant
        to an effective registration statement under the Securities Act of 1933,
        as
        amended (the “1933 Act”), and an effective registration or qualification under
        applicable state securities laws, or is made in a transaction that does not
        require such registration or qualification. In the event that such a transfer
        of
        this Certificate is to be made without registration or qualification, the
        Securities Administrator shall require receipt of (i) if such transfer is
        purportedly being made in reliance upon Rule 144A under the 1933 Act, written
        certifications from the Holder of the Certificate desiring to effect the
        transfer, and from such Holder’s prospective transferee, substantially in the
        forms attached to the Agreement as Exhibit D and either E or F, as applicable,
        and (ii) in all other cases, an Opinion of Counsel satisfactory to it that
        such
        transfer may be made without such registration or qualification (which Opinion
        of Counsel shall not be an expense of the Trust Fund or of the Depositor,
        the
        Trustee, the Securities Administrator or the Master Servicer in their respective
        capacities as such), together with copies of the written certification(s)
        of the
        Holder of the Certificate desiring to effect the transfer and/or such Holder’s
        prospective transferee upon which such Opinion of Counsel is based. Neither
        the
        Depositor nor the Securities Administrator is obligated to register or qualify
        the Class of Certificates specified on the face hereof under the 1933 Act
        or any
        other securities law or to take any action not otherwise required under the
        Agreement to permit the transfer of such Certificates without registration
        or
        qualification. Any Holder desiring to effect a transfer of this Certificate
        shall be required to indemnify the Trustee, the Securities Administrator,
        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 this Certificate shall be made to any person, unless the transferee
        provides either (i) a certification pursuant to section 7.02(b) of the Agreement
        or an (ii) Opinion of Counsel pursuant to section 7.02(b) of the Agreement,
        satisfactory to the Securities Administrator that the purchase and holding
        of
        this Certificate are permissible under applicable law, will not constitute
        or
        result in any non-exempt prohibited transactions under Section 406 ERISA
        or
        Section 4975 of the Code and will not subject the Trustee, Master Servicer,
        the
        Securities Administrator, or the Depositor to any obligation or liability
        in
        addition to those undertaken in the Agreement.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that the Trustee
        or the
        Securities Administrator 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 hereby, and the rights, duties and immunities
        of the Trustee and the Securities Administrator.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. 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
        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 with the Securities
        Administrator
        upon
        surrender of this Certificate for registration of transfer at the offices
        or
        agencies maintained by the Securities Administrator for such purposes, duly
        endorsed by, or accompanied by a written instrument of transfer in form
        satisfactory to the Securities Administrator duly executed by the Holder
        hereof
        or such Holder’s attorney duly authorized in writing, and thereupon one or more
        new Certificates in authorized denominations representing a like aggregate
        Percentage Interest will be issued to the designated transferee.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in the
        Classes and denominations specified in the Agreement. As provided in the
        Agreement and subject to certain limitations therein set forth, this Certificate
        is exchangeable for one or more new Certificates evidencing the same Class
        and
        in the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator 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 Securities Administrator,
        the
        Trustee and any agent of any of them may treat the Person in whose name this
        Certificate is registered as the owner hereof for all purposes, and none
        of the
        Depositor, the Master Servicer, the Securities Administrator, the Trustee
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other related assets of the Trust Fund in accordance with
        the
        terms of the Agreement. Such optional repurchase may be made only on or after
        the first Distribution Date on which the aggregate Stated Principal Balance
        of
        the Mortgage Loans is less than or equal to a certain percentage of the
        aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
        Date
        as set forth in the Agreement. The exercise of such right will effect the
        early
        retirement of the Certificates. In no event, however, will the Trust Fund
        created by the Agreement continue beyond the earlier of (i) the expiration
        of 21
        years after the death of certain persons identified in the Agreement and
        (ii)
        the Latest Possible Maturity Date (as defined in the Agreement).

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose.

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

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

      

      
        	
                Dated:
                  November 30, 2006

              	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION,

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

      

      This
        is
        one of the Class P Certificates referred to in the within-mentioned
        Agreement.

      

      
        	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION,
                  

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      ASSIGNMENT

      

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

      

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

      

      
        	 	 	 
	 	 	
                .

              

      

      

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              

      

      

      

      
        	 	 
	 	
                Signature
                  Guaranteed

              

      

      

      

      

      

      DISTRIBUTION
        INSTRUCTIONS

      

      This
        assignee should include the following for purposes of distribution:

      

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

      
        	
                to

              	 	
                ,

              
	
                for
                  the account of

              	 	
                ,

              
	
                account
                  number___________, or, if mailed by check, to

              	 	
                ,

              
	
                Applicable
                  statements should be mailed to

              	 	
                ,

              
	 	
                .

              

      

      

      
        	
                This
                  information is provided by

              	 	
                ,

              
	
                the
                  assignee named above, or

              	 	
                ,

              
	
                as
                  its agent.

              	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        A-6

      

      FORM
        OF CLASS R-[1][2][X] CERTIFICATES

       

      THIS
        CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON
        OR A
        DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT” AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
        (THE “CODE”).

       

      NO
        TRANSFER OF THIS CERTIFICATE SHALL BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES EITHER (I) A CERTIFICATION PURSUANT TO SECTION 7.02(b) OF THE AGREEMENT
        (AS DEFINED BELOW) OR (II) AN OPINION OF COUNSEL PURSUANT TO 7.02(b) OF THE
        AGREEMENT, SATISFACTORY TO THE SECURITIES ADMINISTRATOR THAT THE PURCHASE
        AND
        HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
        CONSTITUTE OR RESULT IN ANY NON-EXEMPT PROHIBITED TRANSACTIONS UNDER SECTION
        406
        OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR
        SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE TRUSTEE, MASTER SERVICER,
        THE
        SECURITIES ADMINISTRATOR, OR THE DEPOSITOR TO ANY OBLIGATION OR LIABILITY
        IN
        ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.

       

      ANY
        RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
        IF
        THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE SECURITIES
        ADMINISTRATOR THAT (1) SUCH TRANSFEREE IS NOT (A) THE UNITED STATES, ANY
        STATE
        OR POLITICAL SUBDIVISION THEREOF, ANY POSSESSION OF THE UNITED STATES, OR
        ANY
        AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING (OTHER THAN AN INSTRUMENTALITY
        WHICH IS A CORPORATION IF ALL OF ITS ACTIVITIES ARE SUBJECT TO TAX AND EXCEPT
        FOR FREDDIE MAC, A MAJORITY OF ITS BOARD OF DIRECTORS IS NOT SELECTED BY
        SUCH
        GOVERNMENTAL UNIT), (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION,
        OR
        ANY AGENCY OR INSTRUMENTALITY OF EITHER OF THE FOREGOING, (C) ANY ORGANIZATION
        (OTHER THAN CERTAIN FARMERS’ COOPERATIVES DESCRIBED IN SECTION 521 OF THE CODE)
        WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH
        ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE (INCLUDING
        THE TAX IMPOSED BY SECTION 511 OF THE CODE ON UNRELATED BUSINESS TAXABLE
        INCOME), (D) RURAL ELECTRIC AND TELEPHONE COOPERATIVES DESCRIBED IN SECTION
        1381(a)(2)(C) OF THE CODE, (E) AN ELECTING LARGE PARTNERSHIP UNDER SECTION
        775(a) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A),
        (B),
        (C), (D) OR (E) BEING HEREIN REFERRED TO AS A “DISQUALIFIED ORGANIZATION”), OR
        (F) AN AGENT OF A DISQUALIFIED ORGANIZATION, (2) NO PURPOSE OF SUCH TRANSFER
        IS
        TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX, (3) SUCH TRANSFEREE SATISFIES
        CERTAIN ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE
        PROPOSED TRANSFEREE AND (4) SUCH TRANSFEREE IS A UNITED STATES PERSON.
        NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OR ANY TRANSFER,
        SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED ORGANIZATION
        OR
        AN AGENT OF A DISQUALIFIED ORGANIZATION OR A NON-UNITED STATES PERSON, SUCH
        REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER
        AND
        SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE
        HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON
        THIS
        CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE
        SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
        PARAGRAPH.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                 

                Certificate
                  No.1

              	 
	 	 
	
                 

                Class
                  R-[1][2][X]

              	 
	 	
                 

                Percentage
                  Interest: 100%

              
	
                 

                Date
                  of Pooling and Servicing Agreement and Cut-off Date:

                November
                  1, 2006

              	 
	 	 
	
                 

                First
                  Distribution Date:

                December
                  26, 2006

              	 
	 	 
	
                 

                Master
                  Servicer:

                Wells
                  Fargo Bank, National Association

              	 
	 	
                 

                CUSIP:
                  [____________]

              
	
                 

                Assumed
                  Final Distribution Date:

                December
                  25, 2036

              	 
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-AC5

       

      evidencing
        a percentage interest in the distributions allocable to the Class R-[1][2][X]
        Certificates with respect to a Trust Fund consisting primarily of a pool
        of
        conventional, one- to four-family, fixed interest rate mortgage loans sold
        by
        BEAR STEARNS ASSET BACKED SECURITIES I LLC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Bear Stearns Asset Backed Securities
        I
        LLC, the Master Servicer, the Trustee or the Securities Administrator referred
        to below or any of their affiliates or any other person. Neither this
        Certificate nor the underlying Mortgage Loans are guaranteed or insured by
        any
        governmental entity or by Bear Stearns Asset Backed Securities I LLC, the
        Master
        Servicer, the Trustee or the Securities Administrator or any of their affiliates
        or any other person. None of Bear Stearns Asset Backed Securities I LLC,
        the
        Master Servicer or any of their affiliates will have any obligation with
        respect
        to any certificate or other obligation secured by or payable from payments
        on
        the Certificates.

       

      This
        certifies that ________________ is the registered owner of the Percentage
        Interest evidenced hereby in the beneficial ownership interest of Certificates
        of the same Class as this Certificate in a trust (the “Trust Fund”) generally
        consisting of conventional, first lien, fixed rate mortgage loans secured
        by
        one- to four- family residences (collectively, the “Mortgage Loans”) sold by
        Bear Stearns Asset Backed Securities I LLC (“BSABS I”). The Mortgage Loans were
        sold by EMC Mortgage Corporation (“EMC”) to BSABS I. Wells Fargo Bank, National
        Association will act as master servicer of the Mortgage Loans (the “Master
        Servicer,” which term includes any successors thereto under the Agreement
        referred to below). The Trust Fund was created pursuant to the Pooling and
        Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement”), among BSABS I, as depositor (the “Depositor”), EMC Mortgage
        Corporation, as seller and company, Wells Fargo Bank, National Association,
        as
        Master Servicer and securities administrator (the “Securities Administrator”)
        and U.S. Bank National Association, as trustee (the “Trustee”), a summary of
        certain of the pertinent provisions of which is set forth hereafter. To the
        extent not defined herein, capitalized terms used herein shall have the meaning
        ascribed to them 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 its acceptance hereof
        assents and by which such Holder is bound.

       

      Each
        Holder of this Certificate will be deemed to have agreed to be bound by the
        restrictions set forth in the Agreement to the effect that (i) each person
        holding or acquiring any Ownership Interest in this Certificate must be a
        United
        States Person and a Permitted Transferee, (ii) the transfer of any Ownership
        Interest in this Certificate will be conditioned upon the delivery to the
        Securities Administrator of, among other things, an affidavit to the effect
        that
        it is a United States Person and Permitted Transferee, (iii) any attempted
        or
        purported transfer of any Ownership Interest in this Certificate in violation
        of
        such restrictions will be absolutely null and void and will vest no rights
        in
        the purported transferee, and (iv) if any person other than a United States
        Person and a Permitted Transferee acquires any Ownership Interest in this
        Certificate in violation of such restrictions, then the Depositor will have
        the
        right, in its sole discretion and without notice to the Holder of this
        Certificate, to sell this Certificate to a purchaser selected by the Depositor,
        which purchaser may be the Depositor, or any affiliate of the Depositor,
        on such
        terms and conditions as the Depositor may choose.

       

      The
        Securities Administrator will distribute on the 25th day of each month, or,
        if
        such 25th day is not a Business Day, the immediately following Business Day
        (each, a “Distribution Date”), commencing on the First Distribution Date
        specified above, to the Person in whose name this Certificate is registered
        at
        the close of business on the last day (or if such last day is not a Business
        Day, the Business Day immediately preceding such last day) of the calendar
        month
        immediately preceding the month in which the Distribution Date occurs, an
        amount
        equal to the product of the Percentage Interest evidenced by this Certificate
        and the amounts required to be distributed to the Holders of Certificates
        of the
        same Class as this Certificate. The Assumed Final Distribution Date is the
        Distribution Date in the month following the latest scheduled maturity date
        of
        any Mortgage Loan.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice.

       

      No
        transfer of this Certificate shall be made to any person, unless the transferee
        provides either (i) a certification pursuant to section 7.02(b) of the Agreement
        or an (ii) Opinion of Counsel pursuant to section 7.02(b) of the Agreement,
        satisfactory to the Securities Administrator that the purchase and holding
        of
        this Certificate are permissible under applicable law, will not constitute
        or
        result in any non-exempt prohibited transactions under Section 406 ERISA
        or
        Section 4975 of the Code and will not subject the Trustee, Master Servicer,
        the
        Securities Administrator, or the Depositor to any obligation or liability
        in
        addition to those undertaken in the Agreement.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that the Trustee or the
        Securities Administrator 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 hereby, and the rights, duties and immunities
        of the Trustee and the Securities Administrator.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. Any such consent by the 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
        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 with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in the
        Classes and denominations specified in the Agreement. As provided in the
        Agreement and subject to certain limitations therein set forth, this Certificate
        is exchangeable for one or more new Certificates evidencing the same Class
        and
        in the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator 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 Securities Administrator,
        the
        Trustee and any agent of any of them may treat the Person in whose name this
        Certificate is registered as the owner hereof for all purposes, and none
        of
        Depositor, the Master Servicer, the Securities Administrator, the Trustee
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other related assets of the Trust Fund in accordance with
        the
        terms of the Agreement. Such optional repurchase may be made only on or after
        the first Distribution Date on which the aggregate Stated Principal Balance
        of
        the Mortgage Loans is less than or equal to a certain percentage of the
        aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
        Date
        as set forth in the Agreement. The exercise of such right will effect the
        early
        retirement of the Certificates. In no event, however, will the Trust Fund
        created by the Agreement continue beyond the earlier of (i) the expiration
        of 21
        years after the death of certain persons identified in the Agreement and
        (ii)
        the Latest Possible Maturity Date (as defined in the Agreement).

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

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

      

      
        	
                Dated:
                  November 30, 2006

              	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION,

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

      

      

      

      CERTIFICATE
        OF AUTHENTICATION

      

      This
        is
        one of the Class R-[1][2][X] Certificates referred to in the within-mentioned
        Agreement.

      

      
        	 	 	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION,
                  

                as
                  Securities Administrator

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      ASSIGNMENT

      

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

      

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

      

      
        	 	 	 
	 	 	
                .

              

      

      

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              

      

      

      

      
        	 	 
	 	
                Signature
                  Guaranteed

              

      

      

      

      

      

      DISTRIBUTION
        INSTRUCTIONS

      

      This
        assignee should include the following for purposes of distribution:

      

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

      
        	
                to

              	 	
                ,

              
	
                for
                  the account of

              	 	
                ,

              
	
                account
                  number___________, or, if mailed by check, to

              	 	
                ,

              
	
                Applicable
                  statements should be mailed to

              	 	
                ,

              
	 	
                .

              

      

      

      
        	
                This
                  information is provided by

              	 	
                ,

              
	
                the
                  assignee named above, or

              	 	
                ,

              
	
                as
                  its agent.

              	 	 

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        B

      

      MORTGAGE
        LOAN SCHEDULE

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        C

      

      FORM
        OF
        TRANSFER AFFIDAVIT

      

      Affidavit
        pursuant to Section 860E(e)(4) of the Internal Revenue Code of 1986, as amended,
        and for other purposes 

      

      
        	
                STATE
                  OF_____________

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

      [NAME
        OF
        OFFICER], being first duly sworn, deposes and says:

       

      1. That
        he/she is [Title of Officer] of [Name of Investor] (the “Investor”), a [savings
        institution] [corporation] duly organized and existing under the laws of
        [the
        State of _____] [the United States], on behalf of which he makes this
        affidavit.

       

      2. That
        (i)
        the Investor is not a “disqualified organization” as defined in Section
        860E(e)(5) of the Internal Revenue Code of 1986, as amended (the “Code”), and
        will not be a disqualified organization as of [Closing Date] [date of purchase];
        (ii) it is not acquiring the Bear Stearns Asset-Backed Securities I LLC
        Asset-Backed Certificates, Series 2006-AC5, Class R-__ Certificates (the
        “Residual Certificates”) for the account of a disqualified organization; (iii)
        it consents to any amendment of the Pooling and Servicing Agreement that
        shall
        be deemed necessary by Bear Stearns Asset Backed Securities I LLC (upon advice
        of counsel) to constitute a reasonable arrangement to ensure that the Residual
        Certificates will not be owned directly or indirectly by a disqualified
        organization; and (iv) it will not transfer such Residual Certificates unless
        (a) it has received from the transferee an affidavit in substantially the
        same
        form as this affidavit containing these same four representations and (b)
        as of
        the time of the transfer, it does not have actual knowledge that such affidavit
        is false.

       

      3. That
        the
        Investor is one of the following: (i) a citizen or resident of the United
        States, (ii) a corporation or partnership (including an entity treated as
        a
        corporation or partnership for federal income tax purposes) created or organized
        in, or under the laws of, the United States or any state thereof or the District
        of Columbia (except, in the case of a partnership, to the extent provided
        in
        regulations), provided that no partnership or other entity treated as a
        partnership for United States federal income tax purposes shall be treated
        as a
        United States Person unless all persons that own an interest in such partnership
        either directly or through any entity that is not a corporation for United
        States federal income tax purposes are United States Persons, (iii) an estate
        whose income is subject to United States federal income tax regardless of
        its
        source, or (iv) a trust other than a Aforeign
        trust,@
        as
        defined in Section 7701 (a)(31) of the Code.

       

      4. That
        the
        Investor’s taxpayer identification number is
        ______________________.

       

      5. That
        no
        purpose of the acquisition of the Residual Certificates is to avoid or impede
        the assessment or collection of tax.

       

      6. That
        the
        Investor understands that, as the holder of the Residual Certificates, the
        Investor may incur tax liabilities in excess of any cash flows generated
        by such
        Residual Certificates.

       

      7. That
        the
        Investor intends to pay taxes associated with holding the Residual Certificates
        as they become due.

       

      IN
        WITNESS WHEREOF, the Investor has caused this instrument to be executed on
        its
        behalf, pursuant to authority of its Board of Directors, by its [Title of
        Officer] this ____ day of _________, 20__.

       

      

      
        	 	 	 	 	 	 	 	
                [NAME
                  OF INVESTOR]

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                [Name
                  of Officer]

              
	 	 	 	 	 	 	 	
                [Title
                  of Officer]

              
	 	 	 	 	 	 	 	
                [Address
                  of Investor for receipt of distributions]

              
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                Address
                  of Investor for receipt of tax
                  information:

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Personally
        appeared before me the above-named [Name of Officer], known or proved to
        me to
        be the same person who executed the foregoing instrument and to be the [Title
        of
        Officer] of the Investor, and acknowledged to me that he/she executed the
        same
        as his/her free act and deed and the free act and deed of the
        Investor.

      

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

      

      NOTARY
        PUBLIC

      

      COUNTY
        OF

      

      STATE
        OF

      

      

      My
        commission expires the ___ day of ___________________, 20___.

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        D

       

      FORM
        OF
        TRANSFEROR CERTIFICATE

       

      ______________,200___

       

      Bear
        Stearns Asset Backed Securities I LLC

      383
        Madison Avenue

      New
        York,
        New York 10179

       

      Wells
        Fargo Bank, National Association

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        MN 55479

      

       

      Attention:
        Bear Stearns Asset Backed Securities I Trust 2006-AC5

       

      
        	
                Re:

              	
                Bear
                  Stearns Asset Backed Securities I LLC Asset-Backed
                  Certificates, Series 2006-AC5, Class__

              

      

      Ladies
        and Gentlemen:

       

      In
        connection with the sale by ___________ (the “Seller”) to ________ (the
“Purchaser”) of $_________ Initial Certificate Principal Balance of Asset-Backed
        Certificates, Series 2006-AC5, Class _____ (the “Certificates”), issued pursuant
        to the Pooling and Servicing Agreement (the “Pooling and Servicing Agreement”),
        dated as of November 1, 2006, among Bear Stearns Asset-Backed Securities
        I LLC,
        as depositor (the “Depositor”), EMC Mortgage Corporation, as seller and company,
        Wells Fargo Bank, National Association, as master servicer and securities
        administrator, and U.S. Bank National Association, as trustee (the “Trustee”).
        The Seller hereby certifies, represents and warrants to, a covenants with,
        the
        Depositor, the Certificate Registrar and the Trustee that:

       

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

       

      

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                (Seller)

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        E

       

      FORM
        OF
        INVESTMENT LETTER (NON-RULE 144A)

       

      [Date]

       

      [SELLER]

       

      Bear
        Stearns Asset Backed Securities I LLC

      383
        Madison Avenue

      New
        York,
        New York 10179

       

      Wells
        Fargo Bank, National Association

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        MN 55479

       

      
        	 	
                Re:

              	
                Bear
                  Stearns Asset Backed Securities I Trust 2006-AC5, Asset-Backed
                  Certificates, Series 2006-AC5 (the “Certificates”), including the Class
                  ___ Certificates (the “Privately Offered
                  Certificates”)

              

      

      

      Dear
        Ladies and Gentlemen:

       

      In
        connection with our purchase of Privately Offered Certificates, we confirm
        that:

      

      
        	 	
                (i)

              	
                we
                  understand that the Privately Offered Certificates are not being
                  registered under the Securities Act of 1933, as amended (the “Act”) or any
                  applicable state securities or “Blue Sky” laws, and are being sold to us
                  in a transaction that is exempt from the registration requirements
                  of such
                  laws;

              

      

       

      
        	 	
                (ii)

              	
                any
                  information we desired concerning the Certificates, including the
                  Privately Offered Certificates, the trust in which the Certificates
                  represent the entire beneficial ownership interest (the “Trust”) or any
                  other matter we deemed relevant to our decision to purchase Privately
                  Offered Certificates has been made available to
                  us;

              

      

       

      
        	 	
                (iii)

              	
                we
                  are able to bear the economic risk of investment in Privately Offered
                  Certificates; we are an institutional “accredited investor” as defined in
                  Section 501(a)(1), (2), (3) or (7) of Regulation D promulgated
                  under the
                  Act and a sophisticated institutional
                  investor;

              

      

       

      
        	 	
                (iv)

              	
                we
                  are acquiring Privately Offered Certificates for our own account,
                  not as
                  nominee for any other person, and not with a present view to any
                  distribution or other disposition of the Privately Offered
                  Certificates;

              

      

       

      
        	 	
                (v)

              	
                we
                  agree the Privately Offered Certificates must be held indefinitely
                  by us
                  (and may not be sold, pledged, hypothecated or in any way disposed
                  of)
                  unless subsequently registered under the Act and any applicable
                  state
                  securities or “Blue Sky” laws or an exemption from the registration
                  requirements of the Act and any applicable state securities or
“Blue Sky”
                  laws is available;

              

      

       

      
        	 	
                (vi)

              	
                we
                  agree that in the event that at some future time we wish to dispose
                  of or
                  exchange any of the Privately Offered Certificates (such disposition
                  or
                  exchange not being currently foreseen or contemplated), we will
                  not
                  transfer or exchange any of the Privately Offered Certificates
                  unless:

              

      

       

      (A)
        (1)
        the sale is to an Eligible Purchaser (as defined below), (2) if required
        by the
        Pooling and Servicing Agreement (as defined below) a letter to substantially
        the
        same effect as either this letter or, if the Eligible Purchaser is a Qualified
        Institutional Buyer as defined under Rule 144A of the Act, the Rule 144A
        and
        Related Matters Certificate in the form attached to the Pooling and Servicing
        Agreement (as defined below) (or such other documentation as may be acceptable
        to the Securities Administrator) is executed promptly by the purchaser and
        delivered to the addressees hereof and (3) all offers or solicitations in
        connection with the sale, whether directly or through any agent acting on
        our
        behalf, are limited only to Eligible Purchasers and are not made by means
        of any
        form of general solicitation or general advertising whatsoever; and

       

      (B)
        if
        the Privately Offered Certificate is not registered under the Act (as to
        which
        we acknowledge you have no obligation), the Privately Offered Certificate
        is
        sold in a transaction that does not require registration under the Act and
        any
        applicable state securities or “blue sky” laws and, if Wells Fargo Bank National
        Association (the “Securities Administrator”) so requests, a satisfactory Opinion
        of Counsel is furnished to such effect, which Opinion of Counsel shall be
        an
        expense of the transferor or the transferee;

       

      
        	 	
                (vii)

              	
                we
                  agree to be bound by all of the terms (including those relating
                  to
                  restrictions on transfer) of the Pooling and Servicing, pursuant
                  to which
                  the Trust was formed; we have reviewed carefully and understand
                  the terms
                  of the Pooling and Servicing
                  Agreement;

              

      

       

      
        	 	
                (viii)

              	
                we
                  either: (i) are not acquiring the Privately Offered Certificate
                  directly
                  or indirectly by, or on behalf of, an employee benefit plan or
                  other
                  retirement arrangement which is subject to Title I of the Employee
                  Retirement Income Security Act of 1974, as amended, and/or section
                  4975 of
                  the Internal Revenue Code of 1986, as amended, or (ii) in the case
                  of the
                  Privately Offered Certificates, have provided the Opinion of Counsel
                  required by the Agreement,
                  or (iii) in the case of the Class B-4 Certificates, are providing
                  a
                  representation to the effect that the proposed transfer and holding
                  of
                  such Certificate and servicing, management and operation of the
                  Trust and
                  its assets: (I) will not result in any prohibited transaction which
                  is not
                  covered under Prohibited Transaction Class Exemption (“PTCE”) 84-14, PTCE
                  91-38, PTCE 90-1, PTCE 95-60, PTCE 96-23 and (II) will not give
                  rise to
                  any additional obligations on the part of the Depositor, the Master
                  Servicer, the Securities Administrator or the
                  Trustee.

              

      

       

      (ix)            
         We
        understand that each of the Privately Offered Certificates bears, and will
        continue to bear, a legend to substantiate the following effect: THIS
        CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER
        HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY
        BE
        REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH
        THE
        ACT AND OTHER APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE 144A UNDER THE
        ACT
        (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED
        INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR
        ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER
        HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER
        IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM
        REGISTRATION PROVIDED BY RULE 144 UNDER THE ACT (IF AVAILABLE) OR (3) IN
        CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING
        THEREOF IN RULE 501(a)(1), (2),(3) OR (7) (OR ANY ENTITY IN WHICH ALL OF
        THE
        EQUITY HOLDERS COME WITHIN SUCH PARAGRAPHS) OF REGULATION D UNDER THE ACT
        PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE ACT, SUBJECT TO (A) THE
        RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER SUBSTANTIALLY IN THE
        FORM
        PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE SECURITIES ADMINISTRATOR
        OF
        AN OPINION OF COUNSEL AS TO COMPLIANCE WITH ALL APPLICABLE SECURITIES LAWS
        OF
        THE UNITED STATES. [In
        the
        case of the Class B-4 Certificates]: THIS
        CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF,
        AN
        EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO
        TITLE
        I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR
        SECTION
        4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE TRANSFEREE
        CERTIFIES OR REPRESENTS THAT THE PROPOSED TRANSFER AND HOLDING OF A CERTIFICATE
        AND THE SERVICING, MANAGEMENT AND OPERATION OF THE TRUST AND ITS ASSETS:
        (I)
        WILL NOT RESULT IN ANY PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER
        AN
        INDIVIDUAL OR CLASS PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT
        LIMITED
        TO, PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 84-14, PTCE 91-38, PTCE
        90-1, PTCE 95-60 OR PTCE 96-23 AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL
        OBLIGATIONS ON THE PART OF THE DEPOSITOR, THE SECURITIES ADMINISTRATOR, THE
        MASTER SERVICER OR THE TRUSTEE, WHICH WILL BE DEEMED REPRESENTED BY AN OWNER
        OF
        A BOOK-ENTRY CERTIFICATE OR A GLOBAL CERTIFICATE, OR PROVIDES AN OPINION
        OF
        COUNSEL TO SUCH EFFECT. [In
        the
        case of the Class P, Class C, Class R-1, Class R-2, Class R-3 and Class R-X
        Certificates]:
        NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE TO ANY PERSON, UNLESS THE
        TRANSFEREE PROVIDES EITHER (I) A CERTIFICATION PURSUANT TO SECTION 7.02(b)
        OF
        THE AGREEMENT OR (II) AN OPINION OF COUNSEL PURSUANT TO 7.02(b) OF THE
        AGREEMENT, SATISFACTORY TO THE SECURITIES ADMINISTRATOR THAT THE PURCHASE
        AND
        HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
        CONSTITUTE OR RESULT IN ANY NON-EXEMPT PROHIBITED TRANSACTIONS UNDER SECTION
        406
        OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR
        SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE TRUSTEE, MASTER SERVICER,
        THE
        SECURITIES ADMINISTRATOR, OR THE DEPOSITOR TO ANY OBLIGATION OR LIABILITY
        IN
        ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.

      

      “Eligible
        Purchaser” means a corporation, partnership or other entity which we have
        reasonable grounds to believe and do believe (i) can make representations
        with
        respect to itself to substantially the same effect as the representations
        set
        forth herein, and (ii) is either a Qualified Institutional Buyer as defined
        under Rule 144A of the Act or an institutional “Accredited Investor” as defined
        under Rule 501 of the Act.

      

      Terms
        not
        otherwise defined herein shall have the meanings assigned to them in the
        Pooling
        and Servicing Agreement, dated as of November 1, 2006 (the “Pooling and
        Servicing Agreement”), among Bear Stearns Asset Backed Securities I LLC, as
        depositor, U.S. Bank National Association, as trustee, Wells Fargo Bank,
        National Association, as master servicer and securities administrator, and
        EMC
        Mortgage Corporation, as seller and company.

      

      If
        the
        Purchaser proposes that its Certificates be registered in the name of a nominee
        on its behalf, the Purchaser has identified such nominee below, and has caused
        such nominee to complete the Nominee Acknowledgment at the end of this
        letter.

      

      Name
        of
        Nominee (if any): ________________

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      IN
        WITNESS WHEREOF, this document has been executed by the undersigned who is
        duly
        authorized to do so on behalf of the undersigned Eligible Purchaser on the
        ___
        day of ________, 20___.

       

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                [PURCHASER]

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (Authorized
                  Officer)

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                [By:

              	 
	 	 	 	 	 	 	 	 	
                Attorney-in-fact]

              

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      Nominee
        Acknowledgment

       

      The
        undersigned hereby acknowledges and agrees that as to the Certificates being
        registered in its name, the sole beneficial owner thereof is and shall be
        the
        Purchaser identified above, for whom the undersigned is acting as
        nominee.

       

      
        	 	 	 	 	 	 	 	
                [NAME
                  OF NOMINEE]

              	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (Authorized
                  Officer)

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                [By:

              	 
	 	 	 	 	 	 	 	 	
                Attorney-in-fact]

              

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        F

       

      FORM
        OF
        RULE 144A AND RELATED MATTERS CERTIFICATE

       

      [SELLER]

       

      Bear
        Stearns Asset Backed Securities I LLC

      383
        Madison Avenue

      New
        York,
        New York 10179

       

      Wells
        Fargo Bank, National Association

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        MN 55479

       

      
        	 	
                Re:

              	
                Bear
                  Stearns Asset Backed Securities I Trust 2006-AC5, Asset-Backed
                  Certificates, Series 2006-AC5 (the “Certificates”), including the Class
                  ___ Certificates (the “Privately Offered
                  Certificates”)

              

      

      

       

      Dear
        Ladies and Gentlemen:

       

      In
        connection with our purchase of Privately Offered Certificates, the undersigned
        certifies to each of the parties to whom this letter is addressed that it
        is a
        qualified institutional buyer (as defined in Rule 144A under the Securities
        Act
        of 1933, as amended (the “Act”)) as follows:

       

      
        	1.  	
                It
                  owned and/or invested on a discretionary basis eligible securities
                  (excluding affiliate’s securities, bank deposit notes and CD’s, loan
                  participations, repurchase agreements, securities owned but subject
                  to a
                  repurchase agreement and swaps), as described
                  below:

              

      

       

      Date:
        ______________, 20__ (must be on or after the close of its most recent fiscal
        year) 

       

      Amount:
        $
        _____________________; and

       

      
        	2.  	
                The
                  dollar amount set forth above is:

              

      

       

      
        	 	
                a.

              	
                greater
                  than $100 million and the undersigned is one of the following
                  entities:

              

      

       

      
        	
                (x)

              	
                [_]

              	
                an
                  insurance company as defined in Section 2(13) of the Act1 ;
                  or 

              
	 	 	 
	
                (y)

              	
                [_]

              	
                an
                  investment company registered under the Investment Company Act
                  or any
                  business development company as defined in Section 2(a)(48) of
                  the
                  Investment Company Act of 1940; or

              
	 	 	 
	
                (z)

              	
                [_]

              	
                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; or

              
	 	 	 
	
                (aa)

              	
                [_]

              	
                a
                  plan (i) established and maintained by a state, its political
                  subdivisions, or any agency or instrumentality of a state or its
                  political
                  subdivisions, the laws of which permit the purchase of securities
                  of this
                  type, for the benefit of its employees and (ii) the governing investment
                  guidelines of which permit the purchase of securities of this type;
                  or

              
	 	 	 
	
                (bb)

              	
                [_]

              	
                a
                  business development company as defined in Section 202(a)(22) of
                  the
                  Investment Advisers Act of 1940; or

              
	 	 	 
	
                (cc)

              	
                [_]

              	
                a
                  corporation (other than a U.S. bank, savings and loan association
                  or
                  equivalent foreign institution), partnership, Massachusetts or
                  similar
                  business trust, or an organization described in Section 501(c)(3)
                  of the
                  Internal Revenue Code; or

              
	 	 	 
	
                (dd)

              	
                [_]

              	
                a
                  U.S. bank, savings and loan association or equivalent foreign institution,
                  which has an audited net worth of at least $25 million as demonstrated
                  in
                  its latest annual financial statements; or

              
	 	 	 
	
                (ee)

              	
                [_]

              	
                an
                  investment adviser registered under the Investment Advisers Act;
                  or

              

      

       

      
        	
                b.

              	
                [_]

              	
                greater
                  than $10 million, and the undersigned is a broker-dealer registered
                  with
                  the SEC; or

              
	 	 	 
	
                c.

              	
                [_]

              	
                less
                  than $ 10 million, and the undersigned is a broker-dealer registered
                  with
                  the SEC and will only purchase Rule 144A securities in transactions
                  in
                  which it acts as a riskless principal (as defined in Rule 144A);
                  or

              
	 	 	 
	
                d.

              	
                [_]

              	
                less
                  than $100 million, and the undersigned is an investment company
                  registered
                  under the Investment Company Act of 1940, which, together with
                  one or more
                  registered investment companies having the same or an affiliated
                  investment adviser, owns at least $100 million of eligible securities;
                  or

              
	 	 	 
	
                e.

              	
                [_]

              	
                less
                  than $100 million, and the undersigned is an entity, all the equity
                  owners
                  of which are qualified institutional buyers.

              
	 	 	 

      

      The
        undersigned further certifies that it is purchasing a Privately Offered
        Certificate for its own account or for the account of others that independently
        qualify as “Qualified Institutional Buyers” as defined in Rule 144A. It is aware
        that the sale of the Privately Offered Certificates is being made in reliance
        on
        its continued compliance with Rule 144A. It is aware that the transferor
        may
        rely on the exemption from the provisions of Section 5 of the Act provided
        by
        Rule 144A. The undersigned understands that the Privately Offered Certificates
        may be resold, pledged or transferred only to (i) 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 in Rule 144A, or (ii)
        an
        institutional “accredited investor,” as such term is defined under Rule 501 of
        the Act in a transaction that otherwise does not constitute a public offering.
        

       

      The
        undersigned agrees that if at some future time it wishes to dispose of or
        exchange any of the Privately Offered Certificates, it will not transfer
        or
        exchange any of the Privately Offered Certificates to a Qualified Institutional
        Buyer without first obtaining a Rule 144A and Related Matters Certificate
        in the
        form hereof from the transferee and delivering such certificate to the
        addressees hereof. Prior to making any transfer of Privately Offered
        Certificates, if the proposed Transferee is an institutional “accredited
        investor,” the transferor shall obtain from the transferee and deliver to the
        addressees hereof an Investment Letter in the form attached to the Pooling
        and
        Servicing Agreement, dated as of November 1, 2006, among Bear Stearns Asset
        Backed Securities I LLC, as depositor, Wells Fargo Bank, National Association,
        as securities administrator and master servicer, EMC Mortgage Corporation,
        as
        seller and company, and U.S. Bank National Association, as trustee, pursuant
        to
        which the Certificates were issued.

       

      The
        undersigned certifies that it either: (i) is not acquiring the Privately
        Offered
        Certificate directly or indirectly by, or on behalf of, an employee benefit
        plan
        or other retirement arrangement which is subject to Title I of the Employee
        Retirement Income Security Act of 1974, as amended, and/or section 4975 of
        the
        Internal Revenue Code of 1986, as amended, or (ii) in the case of the Privately
        Offered Certificates, has provided the Opinion of Counsel required by the
        Agreement,
        or (iii) in the case of the Class B-4 Certificates, are providing a
        representation to the effect that the proposed transfer and holding of such
        Certificate and servicing, management and operation of the Trust and its
        assets:
        (I) will not result in any prohibited transaction which is not covered under
        Prohibited Transaction Class Exemption (“PTCE”) 84-14, PTCE 91-38, PTCE 90-1,
        PTCE 95-60, PTCE 96-23 and (II) will not give rise to any additional obligations
        on the part of the Depositor, the Master Servicer, the Securities Administrator
        or the Trustee.

       

      If
        the
        Purchaser proposes that its Certificates be registered in the name of a nominee
        on its behalf, the Purchaser has identified such nominee below, and has caused
        such nominee to complete the Nominee Acknowledgment at the end of this letter.
        

       

       

      
        

        
          
            	1	
                    A
                      purchase by an insurance company for one or more of its separate
                      accounts,
                      as defined by Section 2(a)(37) of the Investment Company Act
                      of 1940,
                      which are neither registered nor required to be registered
                      thereunder,
                      shall be deemed to be a purchase for the account of such insurance
                      company. 

                  

          

        

      

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Name
        of
        Nominee (if any):

       

      IN
        WITNESS WHEREOF, this document has been executed by the undersigned who is
        duly
        authorized to do so on behalf of the undersigned Eligible Purchaser on the
        ____
        day of ___________, 20___.

       

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                [PURCHASER]

              	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (Authorized
                  Officer)

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                [By:

              	 
	 	 	 	 	 	 	 	 	
                Attorney-in-fact]

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Nominee
        Acknowledgment

       

      The
        undersigned hereby acknowledges and agrees that as to the Certificates being
        registered in its name, the sole beneficial owner thereof is and shall be
        the
        Purchaser identified above, for whom the undersigned is acting as
        nominee.

       

      
        	 	 	 	 	 	 	 	
                [NAME
                  OF NOMINEE]

              	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (Authorized
                  Officer)

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                [By:

              	 
	 	 	 	 	 	 	 	 	
                Attorney-in-fact]

              

      

      

      

      

        
           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        G

       

      FORM
        OF
        REQUEST FOR RELEASE

       

      To: Wells
        Fargo Bank, National Association

      1015
        10th
        Avenue S.E.

      Minneapolis,
        Minnesota 55414-0031

      

      
        	 	
                Re:

              	
                Custodial
                  Agreement, dated as of November 30, 2006, between Bear Stearns
                  Asset
                  Backed Securities I LLC, as Depositor, EMC Mortgage Corporation,
                  as seller
                  and company, Wells Fargo Bank, National Association, as master
                  servicer,
                  custodian and securities administrator, and U.S. Bank National
                  Association, as trustee

              

      

      

       

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

       

      Mortgage
        Loan Number:

       

      Mortgagor
        Name, Address & Zip Code:

       

      Reason
        for Requesting Documents (check one):

       

      
        	
                _____

              	
                1.

              	 	
                Mortgage
                  Paid in Full and proceeds have been deposited into the Custodial
                  Account

              	 
	 	 	 	 	 
	
                _____

              	
                2.

              	 	
                Foreclosure

              	 
	 	 	 	 	 
	
                _____

              	
                3.

              	 	
                Substitution

              	 
	 	 	 	 	 
	
                _____

              	
                4.

              	 	
                Other
                  Liquidation

              	 
	 	 	 	 	 
	
                _____

              	
                5.

              	 	
                Nonliquidation

              	
                Reason:________________________

              
	 	 	 	 	 
	
                _____

              	
                6.

              	 	
                California
                  Mortgage Loan paid in full

              	 

      

      

      
        	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (authorized
                  signer)

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                Issuer:

              	 
	 	 	 	 	 	 	 	
                Address:

              	 
	 	 	 	 	 	 	 	
                Date:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        H

      

      DTC
        LETTER OF REPRESENTATIONS

      

      [Provided
        upon Request]

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        I

      

      SCHEDULE
        OF MORTGAGE LOANS WITH LOST NOTES

      

      [Provided
        upon Request]

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        J

      

      FORM
        OF
        CUSTODIAL AGREEMENT

      

      THIS
        CUSTODIAL AGREEMENT (as amended and supplemented from time to time, the
“Agreement”), dated as of November 30, 2006, by and among U.S. BANK NATIONAL
        ASSOCIATION, as trustee under the Pooling and Servicing Agreement defined
        below
        (including its successors under the Pooling and Servicing Agreement defined
        below, the “Trustee”), BEAR STEARNS ASSET BACKED SECURITIES I LLC, as depositor
        (together with any successor in interest, the “Depositor”), EMC MORTGAGE
        CORPORATION, as seller (the “Seller”) and company (together with any successor
        in interest or successor under the Pooling and Servicing Agreement referred
        to
        below, the “Company”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as master
        servicer (together with any successor in interest or successor under the
        Pooling
        and Servicing Agreement referred to below, the “Master Servicer”), securities
        administrator and custodian (together with any successor in interest or any
        successor appointed hereunder, the “Custodian”).

       

      WITNESSETH
        THAT:

       

      WHEREAS,
        the Depositor, the Seller, the Master Servicer and the Trustee have entered
        into
        a Pooling and Servicing Agreement, dated as of November 1, 2006, relating
        to the
        issuance of Bear Stearns Asset Backed Securities I Trust 2006-AC5, Asset-Backed
        Certificates, Series 2006-AC5 (as in effect on the date of this Agreement,
        the
“Original Pooling and Servicing Agreement,” and as amended and supplemented from
        time to time, the “Pooling and Servicing Agreement”); and

       

      WHEREAS,
        the Custodian has agreed to act as agent for the Trustee for the purposes
        of
        receiving and holding certain documents and other instruments delivered by
        the
        Depositor, the Seller or the Master Servicer under the Pooling and Servicing
        Agreement and the Servicers under their respective Servicing Agreements,
        all
        upon the terms and conditions and subject to the limitations hereinafter
        set
        forth;

       

      NOW,
        THEREFORE, in consideration of the premises and the mutual covenants and
        agreements hereinafter set forth, the Trustee, the Depositor, the Seller,
        the
        Master Servicer and the Custodian hereby agree as follows:

       

      ARTICLE
        I.

      DEFINITIONS

       

      Capitalized
        terms used in this Agreement and not defined herein shall have the meanings
        assigned in the Original Pooling and Servicing Agreement, unless otherwise
        required by the context herein.

       

      ARTICLE
        II.

      CUSTODY
        OF MORTGAGE DOCUMENTS

       

      Section
        2.1.  Custodian
        to Act as Agent: Acceptance of Mortgage Files.
        The
        Custodian, as the duly appointed custodial agent of the Trustee for these
        purposes, acknowledges (subject to any exceptions noted in the Initial
        Certification referred to in Section 2.3(a)) receipt of the Mortgage Files
        relating to the Mortgage Loans identified on the schedule attached hereto
        (the
“Mortgage Files”) and declares that it holds and will hold such Mortgage Files
        as agent for the Trustee, in trust, for the use and benefit of all present
        and
        future Certificateholders.

       

      Section
        2.2.  Recordation
        of Assignments.
        If any
        Mortgage File includes one or more assignments of Mortgage that have not
        been
        recorded pursuant to the provisions of Section 2.01 of the Pooling and Servicing
        Agreement and the related Mortgage Loan is not a MOM Loan or the related
        Mortgaged Properties are located in jurisdictions specifically excluded by
        the
        Opinion of Counsel delivered to the Trustee pursuant to Section 2.01 of the
        Pooling and Servicing Agreement, each such assignment shall be delivered
        by the
        Custodian to the Seller for the purpose of recording it in the appropriate
        public office for real property records, and the Seller, at no expense to
        the
        Custodian, shall promptly cause to be recorded in the appropriate public
        office
        for real property records each such assignment of Mortgage and, upon receipt
        thereof from such public office, shall return each such assignment of Mortgage
        to the Custodian.

       

      Section
        2.3.  Review
        of Mortgage Files.

       

      (a)  On
        or
        prior to the Closing Date, in accordance with Section 2.02 of the Pooling
        and
        Servicing Agreement, the Custodian shall deliver to the Seller and the Trustee
        an Initial Certification in the form annexed hereto as Exhibit One evidencing
        receipt (subject to any exceptions noted therein) of a Mortgage File for
        each of
        the Mortgage Loans listed on the Schedule attached hereto (the “Mortgage Loan
        Schedule”).

       

      (b)  Within
        90
        days of the Closing Date, the Custodian agrees, for the benefit of
        Certificateholders, to review, in accordance with the provisions of Section
        2.02
        of the Pooling and Servicing Agreement, each such document, and shall deliver
        to
        the Seller and the Trustee an Interim Certification in the form annexed hereto
        as Exhibit Two to the effect that all such documents have been executed and
        received and that such documents relate to the Mortgage Loans identified
        on the
        Mortgage Loan Schedule, except for any exceptions listed on Schedule A attached
        to such Interim Certification. The Custodian shall be under no duty or
        obligation to inspect, review or examine said documents, instruments,
        certificates or other papers to determine that the same are genuine,
        enforceable, or appropriate for the represented purpose or that they have
        actually been recorded or that they are other than what they purport to be
        on
        their face.

       

      (c)  Not
        later
        than 180 days after the Closing Date, the Custodian shall review the Mortgage
        Files as provided in Section 2.02 of the Pooling and Servicing Agreement
        and
        deliver to the Seller and the Trustee a Final Certification in the form annexed
        hereto as Exhibit Three evidencing the completeness of the Mortgage
        Files.

       

      (d)  In
        reviewing the Mortgage Files as provided herein and in the Pooling and Servicing
        Agreement, the Custodian shall make no representation as to and shall not
        be
        responsible to verify (i) the validity, legality, enforceability, due
        authorization, recordability, sufficiency or genuineness of any of the documents
        included in any Mortgage File or (ii) the collectability, insurability,
        effectiveness or suitability of any of the documents in any Mortgage
        File.

       

      Upon
        receipt of written request from the Trustee, the Custodian shall as soon
        as
        practicable supply the Trustee with a list of all of the documents relating
        to
        the Mortgage Loans missing from the Mortgage Files.

       

      Section
        2.4.  Notification
        of Breaches of Representations and Warranties.
        Upon
        discovery by the Custodian of a breach of any representation or warranty
        made by
        the Depositor as set forth in the Pooling and Servicing Agreement with respect
        to a Mortgage Loan relating to a Mortgage File, the Custodian shall give
        prompt
        written notice to the Depositor, the related Servicer and the
        Trustee.

       

      Section
        2.5.  Custodian
        to Cooperate: Release of Mortgage Files.
        Upon
        receipt of written notice from the Trustee that the Seller has repurchased
        a
        Mortgage Loan pursuant to Article II of the Pooling and Servicing Agreement,
        and
        a request for release (a “Request for Release”) confirming that the purchase
        price therefore has been deposited in the Master Servicer Collection Account
        or
        the Distribution Account, then the Custodian agrees to promptly release to
        the
        Seller the related Mortgage File.

       

      Upon
        the
        Custodian’s receipt of a Request for Release substantially in the form of
        Exhibit G to the Pooling and Servicing Agreement signed by a Servicing Officer
        of a Servicer, stating that it has received payment in full of a Mortgage
        Loan
        or that payment in full will be escrowed in a manner customary for such
        purposes, the Custodian agrees promptly to release to the Servicer, the related
        Mortgage File. The Depositor shall deliver to the Custodian and the Custodian
        agrees to review in accordance with the provisions of their Agreement the
        Mortgage Note and other documents constituting the Mortgage File with respect
        to
        any Replacement Mortgage Loan.

       

      From
        time
        to time as is appropriate for the servicing or foreclosure of any Mortgage
        Loan,
        including, for this purpose, collection under any Primary Insurance Policy
        or
        PMI Policy, the Company or the related Servicer, as applicable, shall deliver
        to
        the Custodian a Request for Release signed by a Servicing Officer requesting
        that possession of all of the Mortgage File be released to the Company or
        the
        related Servicer, as applicable, and certifying as to the reason for such
        release and that such release will not invalidate any insurance coverage
        provided in respect of the Mortgage Loan under any of the Insurance Policies.
        Upon receipt of the foregoing, the Custodian shall deliver the Mortgage File
        to
        the Company or the related Servicer, as applicable. The Company or the related
        Servicer, as applicable, shall cause each Mortgage File or any document therein
        so released to be returned to the Custodian when the need therefore by the
        Company or the related Servicer, as applicable, no longer exists, unless
        (i) the
        Mortgage Loan has been liquidated and the Liquidation Proceeds relating to
        the
        Mortgage Loan have been deposited in the Master Servicer Collection Account
        or
        the Distribution Account or (ii) the Mortgage File or such document has been
        delivered to an attorney, or to a public trustee or other public official
        as
        required by law, for purposes of initiating or pursuing legal action or other
        proceedings for the foreclosure of the Mortgaged Property either judicially
        or
        non-judicially, and the Company or the related Servicer, as applicable, has
        delivered to the Custodian a certificate of a Servicing Officer certifying
        as to
        the name and address of the Person to which such Mortgage File or such document
        was delivered and the purpose or purposes of such delivery.

       

      At
        any
        time that the Company or the related Servicer is required to deliver to the
        Custodian a Request for Release, the Company or the related Servicer, as
        applicable, shall deliver two copies of the Request for Release if delivered
        in
        hard copy or the Company or the related Servicer, as applicable, may furnish
        such Request for Release electronically to the Custodian, in which event
        the
        Servicing Officer transmitting the same shall be deemed to have signed the
        Request for Release. In connection with any Request for Release of a Mortgage
        File because of a repurchase of a Mortgage Loan, such Request for Release
        shall
        be accompanied by an assignment of mortgage, without recourse, representation
        or
        warranty from the Trustee to the Seller (unless such Mortgage Loan is a MOM
        Loan) and the related Mortgage Note shall be endorsed without recourse,
        representation or warranty by the Trustee (unless such Mortgage Loans is
        registered on the MERS System) and be returned to the Seller. In connection
        with
        any Request for Release of a Mortgage File because of the payment in full
        of a
        Mortgage Loan, such Request for Release shall be accompanied by a certificate
        of
        satisfaction or other similar instrument to be executed by or on behalf of
        the
        Trustee and returned to the Company or the related Servicer, as
        applicable.

       

      Section
        2.6.  Assumption
        Agreements.
        In the
        event that any assumption agreement, substitution of liability agreement
        or sale
        of servicing agreement is entered into with respect to any Mortgage Loan
        subject
        to this Agreement in accordance with the terms and provisions of the Pooling
        and
        Servicing Agreement, the Master Servicer, to the extent provided in the Pooling
        and Servicing Agreement or the related Servicing Agreement, shall cause the
        Company or the related Servicer, as applicable, to notify the Custodian that
        such assumption or substitution agreement has been completed by forwarding
        to
        the Custodian the original of such assumption or substitution agreement,
        which
        shall be added to the related Mortgage File and, for all purposes, shall
        be
        considered a part of such Mortgage File to the same extent as all other
        documents and instruments constituting parts thereof.

       

      ARTICLE
        III.

      CONCERNING
        THE CUSTODIAN

       

      Section
        3.1.  Custodian
        a Bailee and Agent of the Trustee.
        With
        respect to each Mortgage Note, Mortgage and other documents constituting
        each
        Mortgage File which are delivered to the Custodian, the Custodian is exclusively
        the bailee and custodial agent of the Trustee and has no instructions to
        hold
        any Mortgage Note or Mortgage for the benefit of any person other than the
        Trustee and the Certificateholders and undertakes to perform such duties
        and
        only such duties as are specifically set forth in this Agreement and in the
        Pooling and Servicing Agreement. Except upon compliance with the provisions
        of
        Section 2.5 of this Agreement, no Mortgage Note, Mortgage or Mortgage File
        shall
        be delivered by the Custodian to the Company, the Depositor, any Servicer
        or the
        Master Servicer or otherwise released from the possession of the
        Custodian.

       

      Section
        3.2.  Custodian
        May Own Certificates.
        The
        Custodian in its individual or any other capacity may become the owner or
        pledgee of Certificates with the same rights it would have if it were not
        Custodian.

       

      Section
        3.3.  Master
        Servicer to Pay Custodian’s Fees and Expenses.
        The
        Master Servicer covenants and agrees to pay to the Custodian from time to
        time,
        and the Custodian shall be entitled to, reasonable compensation for all services
        rendered by it in the exercise and performance of any of the powers and duties
        hereunder of the Custodian, and the Master Servicer will pay or reimburse
        the
        Custodian upon its request for all reasonable expenses, disbursements and
        advances incurred or made by the Custodian in accordance with any of the
        provisions of this Agreement (including the reasonable compensation and the
        expenses and disbursements of its counsel and of all persons not regularly
        in
        its employ), except any such expense, disbursement or advance as may arise
        from
        its negligence or bad faith or to the extent that such cost or expense is
        indemnified by the Depositor pursuant to the Pooling and Servicing
        Agreement.

       

      Section
        3.4.  Custodian
        May Resign; Trustee May Remove Custodian.
        The
        Custodian may resign from the obligations and duties hereby imposed upon
        it as
        such obligations and duties relate to its acting as Custodian of the Mortgage
        Loans. Upon receiving such written notice of resignation, the Trustee shall
        either take custody of the Mortgage Files itself and give prompt written
        notice
        thereof to the Depositor, the Master Servicer and the Custodian, or promptly
        appoint a successor Custodian by written instrument, in duplicate, one copy
        of
        which instrument shall be delivered to the resigning Custodian and one copy
        to
        the successor Custodian. If the Trustee shall not have taken custody of the
        Mortgage Files and no successor Custodian shall have been so appointed and
        have
        accepted appointment within 30 days after the giving of such written notice
        of
        resignation, the resigning Custodian may petition any court of competent
        jurisdiction for the appointment of a successor Custodian.

       

      The
        Trustee may remove the Custodian at any time upon 60 days prior written notice
        to Custodian. In such event, the Trustee shall appoint, or petition a court
        of
        competent jurisdiction to appoint, a successor Custodian hereunder. Any
        successor Custodian shall be a depository institution subject to supervision
        or
        examination by federal or state authority shall be able to satisfy the other
        requirements contained in Section 3.6 and shall be unaffiliated with the
        Servicers, the Company and the Depositor.

       

      Any
        resignation or removal of the Custodian and appointment of a successor Custodian
        pursuant to any of the provisions of this Section 3.4 shall become effective
        upon acceptance of appointment by the successor Custodian. The Trustee shall
        give prompt notice to the Depositor and the Master Servicer of the appointment
        of any successor Custodian. No successor Custodian shall be appointed by
        the
        Trustee without the prior approval of the Depositor and the Master
        Servicer.

       

      Section
        3.5.  Merger
        or Consolidation of Custodian.
        Any
        Person into which the Custodian may be merged or converted or with which
        it may
        be consolidated, or any Person resulting from any merger, conversion or
        consolidation to which the Custodian shall be a party, or any Person succeeding
        to the business of the Custodian, shall be the successor of the Custodian
        hereunder, without the execution or filing of any paper or any further act
        on
        the part of any of the parties hereto, anything herein to the contrary
        notwithstanding.

       

      Section
        3.6.  Representations
        of the Custodian.
        The
        Custodian hereby represents that it is a depository institution subject to
        supervision or examination by a federal or state authority, has a combined
        capital and surplus of at least $15,000,000 and is qualified to do business
        in
        the jurisdictions in which it will hold any Mortgage File.

       

      ARTICLE
        IV.

      COMPLIANCE
        WITH REGULATION AB

       

      Section
        4.1.  Intent
        of the parties; Reasonableness.
        The
        parties hereto acknowledge and agree that the purpose of this Article IV
        is to
        facilitate compliance by the Depositor with the provisions of Regulation
        AB and
        related rules and regulations of the Commission. The Depositor shall not
        exercise its right to request delivery of information or other performance
        under
        these provisions other than in good faith, or for purposes other than compliance
        with the Securities Act, the Exchange Act and the rules and regulations of
        the
        Commission under the Securities Act and the Exchange Act. Each of the parties
        hereto acknowledges that interpretations of the requirements of Regulation
        AB
        may change over time, whether due to interpretive guidance provided by the
        Commission or its staff, consensus among participants in the mortgage-backed
        securities markets, advice of counsel, or otherwise, and agrees to comply
        with
        requests made by the Depositor in good faith for delivery of information
        under
        these provisions on the basis of evolving interpretations of Regulation AB
        to
        the extent reasonably practicable. The Custodian shall cooperate reasonably
        with
        the Depositor to deliver to the Depositor (including any of its assignees
        or
        designees), any and all disclosure, statements, reports, certifications,
        records
        and any other information necessary in the reasonable, good faith determination
        of the Depositor to permit the Depositor to comply with the provisions of
        Regulation AB.

       

      Section
        4.2.  Additional
        Representations and Warranties of the Custodian.

       

      (a)  The
        Custodian hereby represents and warrants that the information set forth in
        the
        Prospectus Supplement under the caption "Description of the Certificates
        - The
        Custodian" (the "Custodian Disclosure") does not contain any untrue statement
        of
        a material fact or omit to state a material fact required to be stated therein
        or necessary in order to make the statements therein, in the light of the
        circumstances under which they were made, not misleading.

       

      (b)  The
        Custodian shall be deemed to represent to the Depositor as of the date hereof
        and on each date on which information is provided to the Depositor under
        Section
        4.3 that, except as disclosed in writing to the Depositor prior to such date:
        (i) there are no aspects of its financial condition that could have a material
        adverse effect on the performance by it of its Custodian obligations under
        this
        Agreement or any other Securitization Transaction as to which it is the
        custodian; (ii) there are no material legal or governmental proceedings pending
        (or known to be contemplated) against it; and (iii) there are no affiliations,
        relationships or transactions relating to the Custodian with respect to the
        Depositor or any sponsor, issuing entity, servicer, trustee, originator,
        significant obligor, enhancement or support provider or other material
        transaction party (as such terms are used in Regulation AB) relating to the
        Securitization Transaction contemplated by the Agreement, as identified by
        the
        Depositor to the Custodian in writing as of the Closing Date (each, a
        "Transaction Party").

       

      (c)  If
        so
        requested by the Depositor on any date following the Closing Date, the Custodian
        shall, within five Business Days following such request, confirm in writing
        the
        accuracy of the representations and warranties set forth in paragraph (a)
        of
        this Section or, if any such representation and warranty is not accurate
        as of
        the date of such confirmation, provide reasonably adequate disclosure of
        the
        pertinent facts, in writing, to the requesting party. Any such request from
        the
        Depositor shall not be given more than once each calendar quarter, unless
        the
        Depositor shall have a reasonable basis for a determination that any of the
        representations and warranties may not be accurate.

       

      Section
        4.3.  Additional
        Information to Be Provided by the Custodian.
        For so
        long as the Certificates are outstanding, for the purpose of satisfying the
        Depositor 's reporting obligation under the Exchange Act with respect to
        any
        class of Certificates, the Custodian shall (a) notify the Depositor in writing
        of any material litigation or governmental proceedings pending against the
        Custodian that would be material to Certificateholders, and (b) provide to
        the
        Depositor a written description of such proceedings. Any notices and
        descriptions required under this Section 4.3 shall be given no later than
        five
        Business Days prior to the Determination Date following the month in which
        the
        Custodian has knowledge of the occurrence of the relevant event. As of the
        date
        the Depositor or Master Servicer files each Report on Form 10-D or Form 10-K
        with respect to the Certificates, the Custodian will be deemed to represent
        that
        any information previously provided under this Section 4.3, if any, is
        materially correct and does not have any material omissions unless the Custodian
        has provided an update to such information.

       

      Section
        4.4.  Report
        on
        Assessment of Compliance and Attestation. 

       

      (a)  On
        or
        before March 15 of each calendar year, the Custodian shall:

       

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

       

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

       

      (b)  In
        the
        event the Custodian is terminated under, or resigns pursuant to, the terms
        of
        this Agreement, the Custodian shall provide an Assessment of Compliance and
        cause to be provided an Attestation Report pursuant to this Section 4.4
        notwithstanding any such termination or resignation.

       

      Section
        4.5.  Indemnification;
        Remedies.

       

      (a)  The
        Custodian shall indemnify the Depositor, each affiliate of the Depositor,
        EMC
        and each broker dealer acting as underwriter, placement agent or initial
        purchaser of the Certificates or each Person who controls any of such parties
        (within the meaning of Section 15 of the Securities Act and Section 20 of
        the
        Exchange Act); and the respective present and former directors, officers,
        employees and agents of each of the foregoing, and shall hold each of them
        harmless from and against any losses, damages, penalties, fines, forfeitures,
        legal fees and expenses and related costs, judgments, and any other costs,
        fees
        and expenses that any of them may sustain arising out of or based
        upon:

       

      (i) (A)
        any
        untrue statement of a material fact contained or alleged to be contained
        in the
        Custodian Disclosure and any information, report, certification, accountants’
attestation or other material provided under this Article IV by or on behalf
        of
        the Custodian (collectively, the “Custodian Information”), or (B) the omission
        or alleged omission to state in the Custodian Information a material fact
        required to be stated in the Custodian Information or necessary in order
        to make
        the statements therein, in the light of the circumstances under which they
        were
        made, not misleading; or

       

      (ii) any
        failure by the Custodian to deliver any information, report, certification,
        accountants’ attestation or other material when and as required under this
        Article IV.

       

      (iii) the
        negligence, bad faith or willful misconduct of the Custodian in the performance
        of its obligations under this Article IV. 

       

      (b)  In
        the
        case of any failure of performance described in clause (ii) of Section 4.5(a),
        the Custodian shall promptly reimburse the Depositor for all costs reasonably
        incurred by the Depositor in order to obtain the information, report,
        certification, accountants’ letter or other material not delivered as required
        by the Custodian.

       

      (c)  In
        no
        event shall the Custodian or its directors, officers, and employees be liable
        for any special, indirect or consequential damages from any action taken
        or
        omitted to be taken by it or them hereunder or in connection herewith even
        if
        advised of the possibility of such damages.

       

      This
        indemnification shall survive the termination of this Agreement or the
        termination of the Custodian. 

       

      ARTICLE
        V.

      MISCELLANEOUS
        PROVISIONS

       

      Section
        5.1.  Notices.
        All
        notices, requests, consents and demands and other communications required
        under
        this Agreement or pursuant to any other instrument or document delivered
        hereunder shall be in writing and, unless otherwise specifically provided,
        may
        be delivered personally, by telegram or telex, or by registered or certified
        mail, postage prepaid, return receipt requested, at the addresses specified
        on
        the signature page hereof (unless changed by the particular party whose address
        is stated herein by similar notice in writing), in which case the notice
        will be
        deemed delivered when received.

       

      Section
        5.2.  [Reserved].

       

      Section
        5.3.  Amendments.
        No
        modification or amendment of or supplement to this Agreement shall be valid
        or
        effective unless the same is in writing and signed by all parties
        hereto.  The Trustee shall give prompt notice to the Custodian of any
        amendment or supplement to the Pooling and Servicing Agreement and furnish
        the
        Custodian with written copies thereof.

       

      Section
        5.4.  GOVERNING
        LAW.
        THIS
        AGREEMENT shall be governed by, and construed in accordance with, the laws
        of
        the State of New York, without regard to conflict of laws principles thereof
        other than Section 5-1401 of the New York General Obligations Law.

       

      Section
        5.5.  Recordation
        of Agreement.
        To the
        extent permitted by applicable law, this Agreement is subject to recordation
        in
        all appropriate public offices for real property records in all the counties
        or
        other comparable jurisdictions in which any or all of the properties subject
        to
        the Mortgages are situated, and in any other appropriate public recording
        office
        or elsewhere, such recordation to be effected by the Depositor and at the
        Trust’s expense, but only upon direction accompanied by an Opinion of Counsel
        reasonably satisfactory to the Depositor to the effect that the failure to
        effect such recordation is likely to materially and adversely affect the
        interests of the Certificateholders.

       

      For
        the
        purpose of facilitating the recordation of this Agreement as herein provided
        and
        for other purposes, this Agreement may be executed simultaneously in any
        number
        of counterparts, each of which counterparts shall be deemed to be an original,
        and such counterparts shall constitute but one and the same
        instrument.

       

      Section
        5.6.  Severability
        of Provisions.
        If any
        one or more of the covenants, agreements, provisions or terms of this Agreement
        shall be for any reason whatsoever held invalid, then such covenants,
        agreements, provisions or terms shall be deemed severable from the remaining
        covenants, agreements, provisions or terms of this Agreement and shall in
        no way
        affect the validity or enforceability of the other provisions of this Agreement
        or of the Certificates or the rights of the holders thereof.

       

      [Signature
        Page Follows]

       

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      IN
        WITNESS WHEREOF, this Agreement is executed as of the date first above
        written.

       

      

      
        	
                Address:

                One
                  Federal Street, 3rd
                  Floor

                Boston,
                  MA 02110

                Attention:
                  

                BSABS
                  I 2006-AC5

                Telecopy:
                  (617) 603-6638

              	
                U.S.
                  BANK NATIONAL ASSOCIATION, not individually but solely as
                  Trustee

                By: _________________________________

                Name: 

                Title: 

              
	 	 
	
                Address:

                383
                  Madison Avenue

                New
                  York, New York 10179

              	
                BEAR
                  STEARNS ASSET BACKED SECURITIES I LLC

                By: _________________________________

                Name:  

                Title: 

              
	 	 
	
                Address:

                2780
                  Lake Vista Drive, 

                Lewisville,
                  Texas 75067

              	
                EMC
                  MORTGAGE CORPORATION

                By: _________________________________

                Name: 

                Title: 

              
	 	 
	
                Address:

                9062
                  Old Annapolis Road

                Columbia,
                  Maryland 21045

              	
                WELLS
                  FARGO BANK,

                NATIONAL
                  ASSOCIATION,

                as
                  Master Servicer

                 

                By: _________________________________

                Name: 

                Title: 

              
	 	 
	
                Address:

                1015
                  10th Avenue S.E.

                Minneapolis,
                  Minnesota 55414-0031

              	
                WELLS
                  FARGO BANK,

                NATIONAL
                  ASSOCIATION, as Custodian

                 

                By: _________________________________

                Name: 

                Title: 

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      
        	
                STATE
                  OF MASSACHUSETTS

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF SUFFOLK

              	
                )

              	 

      

      

       

      On
        the
        30th
        day of
        November 2006 before me, a notary public in and for said State, personally
        appeared __________________________, known to me to be a(n)
        __________________________ of U.S. Bank National Association, a national
        banking
        association, one of the parties that executed the within agreement, and also
        known to me to be the person who executed the within agreement on behalf
        of said
        party and acknowledged to me that such party executed the within
        instrument.

       

      IN
        WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
        the
        day and year in this certificate first above written.

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      [SEAL]

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

      

       

      On
        the
        30th
        day of
        November 2006 before me, a notary public in and for said State, personally
        appeared __________________________, known to me to be a(n)
        __________________________ of Bear Stearns Asset Backed Securities I LLC,
        and
        also known to me to be the person who executed the within instrument on behalf
        of said party, and acknowledged to me that such party executed the within
        instrument.

       

      IN
        WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
        the
        day and year in this certificate first above written.

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      [SEAL]

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      
        	
                STATE
                  OF TEXAS

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF DALLAS

              	
                )

              	 

      

      

       

      On
        the
        30th
        day of
        November 2006 before me, a notary public in and for said State, personally
        appeared __________________________, known to me to be an authorized
        representative of EMC Mortgage Corporation, one of the parties that executed
        the
        within instrument, and also known to me to be the person who executed the
        within
        instrument on behalf of said party, and acknowledged to me that such party
        executed the within instrument.

       

      IN
        WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
        the
        day and year in this certificate first above written.

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      [Notarial
        Seal]

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      
        	
                STATE
                  OF MARYLAND

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF HOWARD

              	
                )

              	 

      

      

       

      On
        the
        30th
        day of
        November 2006 before me, a notary public in and for said State, personally
        appeared __________________________, known to me to be a(n)
        __________________________ of Wells Fargo Bank, National Association, a national
        banking association, one of the parties that executed the within instrument,
        and
        also known to me to be the person who executed it on behalf of said party,
        and
        acknowledged to me that such party executed the within instrument.

       

      IN
        WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
        the
        day and year in this certificate first above written.

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      [Notarial
        Seal]

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      
        	
                STATE
                  OF MINNESOTA

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF___________

              	
                )

              	 

      

      

       

      On
        the
        30th
        day of
        November 2006 before me, a notary public in and for said State, personally
        appeared __________________________, known to me to be a(n)
        __________________________ of Wells Fargo Bank, National Association, a national
        banking association, one of the parties that executed the within instrument,
        and
        also known to me to be the person who executed it on behalf of said party,
        and
        acknowledged to me that such party executed the within instrument.

       

      IN
        WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
        the
        day and year in this certificate first above written.

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      [Notarial
        Seal]

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        ONE

       

      FORM
        OF
        CUSTODIAN INITIAL CERTIFICATION

       

      November
        30, 2006

       

      U.S.
        Bank
        National Association

      One
        Federal Street, 3rd
        Floor

      Boston,
        MA 02110

       

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive, 

      Lewisville,
        Texas 75067

       

      Attention:
        Bear Stearns Asset Backed Securities I LLC, Series 2006-AC5

       

      
        	
                Re:

              	
                Custodial
                  Agreement, dated as of November 30, 2006, by and among U.S. Bank
                  National
                  Association, Wells Fargo Bank, National Association, Bear Stearns
                  Asset
                  Backed Securities I LLC and EMC Mortgage Corporation relating to
                  Bear
                  Stearns Asset Backed Securities I Trust 2006-AC5, Asset-Backed
                  Certificates, Series 2006-AC5

              

      

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.3(a) of the above-captioned Custodial Agreement,
        and
        subject to Section 2.02(a) of the Pooling and Servicing Agreement, the
        undersigned, as Custodian, hereby certifies that it has received a Mortgage
        File
        (which contains an original Mortgage Note or lost note affidavit) to the
        extent
        required in Section 2.01 of the Pooling and Servicing Agreement with respect
        to
        each Mortgage Loan listed in the Mortgage Loan Schedule, with any exceptions
        listed on Schedule A attached hereto.

       

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the above-captioned Custodial Agreement.

       

      
        	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        A

       

      (PROVIDED
        UPON REQUEST)

       

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        TWO

       

      FORM
        OF
        CUSTODIAN INTERIM CERTIFICATION

       

      [DATE]

       

      U.S.
        Bank
        National Association

      One
        Federal Street, 3rd
        Floor

      Boston,
        MA 02110

       

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive, 

      Lewisville,
        Texas 75067

       

      Attention:
        Bear Stearns Asset Backed Securities I LLC, Series 2006-AC5

       

      
        	
                Re:

              	
                Custodial
                  Agreement, dated as of November 30, 2006, by and among U.S. Bank
                  National
                  Association, Wells Fargo Bank, National Association, Bear Stearns
                  Asset
                  Backed Securities I LLC and EMC Mortgage Corporation relating to
                  Bear
                  Stearns Asset Backed Securities I Trust 2006-AC5, Asset-Backed
                  Certificates, Series 2006-AC5

              

      

      

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 2.3(b) of the above-captioned Custodial Agreement
        and
        subject to Section 2.02(a) of the Pooling and Servicing Agreement, the
        undersigned, as Custodian, hereby certifies that it has received a Mortgage
        File
        to the extent required pursuant to Section 2.01 of the Pooling and Servicing
        Agreement with respect to each Mortgage Loan listed in the Mortgage Loan
        Schedule, and it has reviewed the Mortgage File and the Mortgage Loan Schedule
        and has determined that: all required documents have been executed and received
        and that such documents relate to the Mortgage Loans identified on the Mortgage
        Loan Schedule, with any exceptions listed on Schedule A attached
        hereto.

       

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the above-captioned Custodial Agreement.

       

      

       

      
        	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        A

      

      (PROVIDED
        UPON REQUEST)

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        THREE

       

      FORM
        OF
        CUSTODIAN FINAL CERTIFICATION

       

      [DATE]

       

      U.S.
        Bank
        National Association

      One
        Federal Street, 3rd
        Floor

      Boston,
        MA 02110

       

      EMC
        Mortgage Corporation

      2780
        Lake
        Vista Drive, 

      Lewisville,
        Texas 75067

       

      Attention:
        Bear Stearns Asset Backed Securities I LLC, Series 2006-AC5

       

      
        	
                Re:

              	
                Custodial
                  Agreement, dated as of November 30, 2006, by and among U.S. Bank
                  National
                  Association, Wells Fargo Bank, National Association, Bear Stearns
                  Asset
                  Backed Securities I LLC and EMC Mortgage Corporation relating to
                  Bear
                  Stearns Asset Backed Securities I Trust 2006-AC5, Asset-Backed
                  Certificates, Series 2006-AC5 

              

      

      

      In
        accordance with Section 2.3(c) of the above-captioned Custodial
        Agreement

      and,
        subject to Section 2.02(b) of the Pooling and Servicing Agreement, the
        undersigned, as Custodian, hereby certifies that it has received a Mortgage
        File
        to the extent required pursuant to Section 2.01 of the Pooling and Servicing
        Agreement with respect to each Mortgage Loan listed in the Mortgage Loan
        Schedule, and it has reviewed the Mortgage File and the Mortgage Loan Schedule
        and has determined that: all required documents have been executed and received
        and that such documents relate to the Mortgage Loans identified on the Mortgage
        Loan Schedule, with any exceptions listed on Schedule A attached
        hereto.

       

      Capitalized
        words and phrases used herein shall have the respective meanings assigned
        to
        them in the above-captioned Custodial Agreement or in the Pooling and Servicing
        Agreement, as applicable.

       

      

       

      
        	
                WELLS
                  FARGO BANK, NATIONAL ASSOCIATION

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        A

       

      

      (PROVIDED
        UPON REQUEST)

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        FOUR

      

      SERVICING
        CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

      

      The
        assessment of compliance to be delivered by the Custodian shall address,
        at a
        minimum, the criteria identified below as “Applicable Servicing
        Criteria”:

      

      
        	
                 

                Servicing
                  Criteria

              	
                Applicable

                Servicing
                  Criteria

              
	
                Reference

              	
                Criteria

              	 
	 	
                General
                  Servicing Considerations

              	 
	
                 

                 

                1122(d)(1)(i)

              	
                Policies
                  and procedures are instituted to monitor any performance or other
                  triggers
                  and events of default in accordance with the transaction
                  agreements

              	 
	
                 

                 

                1122(d)(1)(ii)

              	
                If
                  any material servicing activities are outsourced to third parties,
                  policies and procedures are instituted to monitor the third party’s
                  performance and compliance with such servicing activities

              	 
	
                 

                1122(d)(1)(iii)

              	
                Any
                  requirements in the transaction agreements to maintain a back-up
                  servicer
                  for the pool assets are maintained.

              	 
	
                 

                1122(d)(1)(iv)

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

              	 
	 	
                 

                Cash
                  Collection and Administration

              	 
	
                 

                1122(d)(2)(i)

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

              	 
	
                1122(d)(2)(ii)

              	
                Disbursements
                  made via wire transfer on behalf of an obligor or to an investor
                  are made
                  only by authorized personnel.

              	 
	
                 

                1122(d)(2)(iii)

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

              	 
	
                 

                1122(d)(2)(iv)

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

              	 
	
                 

                 

                1122(d)(2)(v)

              	
                Each
                  custodial account is maintained at a federally insured depository
                  institution as set forth in the transaction agreements. For purposes
                  of
                  this criterion, “federally insured depository institutions” with respect
                  to a foreign financial institution means a foreign financial institution
                  that meets the requirements of Rule 13k-1(b)(1) of the Securities
                  Exchange
                  Act. 

              	 
	
                1122(d)(2)(vi)

              	
                Unissued
                  checks are safeguarded so as to prevent unauthorized
                  access.

              	 
	
                 

                 

                 

                1122(d)(2)(vii)

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

              	 
	 	
                 

                Investor
                  Remittances and Reporting

              	 
	
                 

                 

                 

                1122(d)(3)(i)

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

              	 
	
                 

                1122(d)(3)(ii)

              	
                Amounts
                  due to investors are allocated and remitted in accordance with
                  timeframes,
                  distribution priority and other terms set forth in the transaction
                  agreements.

              	 
	
                 

                1122(d)(3)(iii)

              	
                Disbursements
                  made to an investor are posted within two business days to the
                  servicer’s
                  investor records, or such other number of days specified in the
                  transaction agreements.

              	 
	
                 

                1122(d)(3)(iv)

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

              	 
	 	
                 

                Pool
                  Asset Administration

              	 
	
                1122(d)(4)(i)

              	
                Collateral
                  or security on pool assets is maintained as required by the transaction
                  agreements or related asset pool documents.

              	
                √

              
	
                1122(d)(4)(ii)

              	
                Pool
                  assets and related documents are safeguarded as required by the
                  transaction agreements.

              	
                √

              
	
                 

                1122(d)(4)(iii)

              	
                Any
                  additions, removals or substitutions to the asset pool are made,
                  reviewed
                  and approved in accordance with any conditions or requirements
                  in the
                  transaction agreements

              	 
	
                 

                 

                1122(d)(4)(iv)

              	
                Payments
                  on pool assets, including any payoffs, made in accordance with
                  the related
                  pool asset documents are posted to the servicer’s obligor records
                  maintained no more than two business days after receipt, or such
                  other
                  number of days specified in the transaction agreements, and allocated
                  to
                  principal, interest or other items (e.g., escrow) in accordance
                  with the
                  related pool asset documents.

              	 
	
                1122(d)(4)(v)

              	
                The
                  servicer’s records regarding the pool assets agree with the servicer’s
                  records with respect to an obligor’s unpaid principal
                  balance.

              	 
	
                 

                1122(d)(4)(vi)

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

              	 
	
                 

                 

                1122(d)(4)(vii)

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

              	 
	
                 

                 

                 

                1122(d)(4)(viii)

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

              	 
	
                1122(d)(4)(ix)

              	
                Adjustments
                  to interest rates or rates of return for pool assets with variable
                  rates
                  are computed based on the related pool asset documents.

              	 
	
                 

                 

                 

                1122(d)(4)(x)

              	
                Regarding
                  any funds held in trust for an obligor (such as escrow accounts);
                  (A) such
                  funds are analyzed, in accordance with the obligor’s pool asset documents,
                  on at least an annual basis, or such other period specified in
                  the
                  transaction agreements; (B) interest on such funds is paid, or
                  credited,
                  to obligors in accordance with applicable pool asset documents
                  and state
                  laws; and (C) such funds are returned to the obligor within 3-
                  calendar
                  days of full repayment of the related pool asset, or such other
                  number of
                  days specified in the transaction agreements.

              	 
	
                 

                 

                1122(d)(4)(xi)

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

              	 
	
                 

                1122(d)(4)(xii)

              	
                Any
                  late payment penalties in connection with any payment to be made
                  on behalf
                  of an obligor are paid from the servicer’s funds and not charged to the
                  obligor, unless the late payment was due to the obligor’s error or
                  omission.

              	 
	
                1122(d)(4)(xiii)

              	
                Disbursements
                  made on behalf of an obligor are posted within two business days
                  to the
                  obligor’s records maintained by the servicer, or such other number of days
                  specified in the transaction agreements.

              	 
	
                1122(d)(4)(xiv)

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

              	 
	
                1122(d)(4)(xv)

              	
                Any
                  external enhancement or other support, identified in item 1114(a)(1)
                  through (3) or item 1115 of Regulation AB, is maintained as set
                  forth in
                  the transaction agreements.

              	 

      

      

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        K

      

      FORM
        OF BACK-UP CERTIFICATION
        TO FORM 10-K CERTIFICATE

       

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

      

      I,
        ________________________________, the _______________________ of [NAME OF
        COMPANY], certify to [the Purchaser], [the Depositor], and the [Master Servicer]
        [Trustee], and their officers, with the knowledge and intent that they will
        rely
        upon this certification, that:

       

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

       

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

       

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

       

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

       

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

       

       

      

      
        	
                Date:

              	 
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        L

      

      FORM
        OF
        MORTGAGE LOAN PURCHASE AGREEMENT

      

      

      

       

      

       

      MORTGAGE
        LOAN PURCHASE AGREEMENT

       

      between

       

      EMC
        MORTGAGE CORPORATION

       

      as
        Mortgage Loan Seller

       

      and

       

      BEAR
        STEARNS ASSET BACKED SECURITIES I LLC

       

      as
        Purchaser

       

      Dated
        as
        of

       

      November
        30, 2006

       

      

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      TABLE
        OF CONTENTS

       

      

      
        	
                SECTION
                  1.

              	
                Definitions

              
	
                SECTION
                  2.

              	
                Purchase
                  and Sale of the Mortgage Loans and Related Rights

              
	
                SECTION
                  3.

              	
                Mortgage
                  Loan Schedules

              
	
                SECTION
                  4.

              	
                Mortgage
                  Loan Transfer

              
	
                SECTION
                  5.

              	
                Examination
                  of Mortgage Files

              
	
                SECTION
                  6.

              	
                Recordation
                  of Assignments of Mortgage.

              
	
                SECTION
                  7.

              	
                Representations
                  and Warranties of the Mortgage Loan Seller Concerning the Mortgage
                  Loans

              
	
                SECTION
                  8.

              	
                Representations
                  and Warranties Concerning the Mortgage Loan Seller

              
	
                SECTION
                  9.

              	
                Representations
                  and Warranties Concerning the Purchaser

              
	
                SECTION
                  10.

              	
                Conditions
                  to Closing

              
	
                SECTION
                  11.

              	
                Fees
                  and Expenses

              
	
                SECTION
                  12.

              	
                Accountants’
                  Letters

              
	
                SECTION
                  13.

              	
                Indemnification.

              
	
                SECTION
                  14.

              	
                Notices

              
	
                SECTION
                  15.

              	
                Transfer
                  of Mortgage Loans

              
	
                SECTION
                  16.

              	
                Termination

              
	
                SECTION
                  17.

              	
                Representations,
                  Warranties and Agreements to Survive Delivery

              
	
                SECTION
                  18.

              	
                Severability

              
	
                SECTION
                  19.

              	
                Counterparts

              
	
                SECTION
                  20.

              	
                Amendment

              
	
                SECTION
                  21.

              	
                Governing
                  Law

              
	
                SECTION
                  22.

              	
                Further
                  Assurances

              
	
                SECTION
                  23.

              	
                Successors
                  and Assigns

              
	
                SECTION
                  24.

              	
                The
                  Mortgage Loan Seller

              
	
                SECTION
                  25.

              	
                Entire
                  Agreement

              
	
                SECTION
                  26.

              	
                No
                  Partnership

              
	 	 

      

      

      EXHIBITS
        AND SCHEDULE TO

      MORTGAGE
        LOAN PURCHASE AGREEMENT

       

      
        	
                Exhibit
                  1

              	
                Contents
                  of Mortgage File

              
	
                Exhibit
                  2

              	
                Mortgage
                  Loan Schedule Information

              
	
                Exhibit
                  3

              	
                Mortgage
                  Loan Seller’s Information

              
	
                Exhibit
                  4

              	
                Purchaser’s
                  Information

              
	
                Exhibit
                  5

              	
                Schedule
                  of Lost Notes

              
	
                Exhibit
                  6

              	
                Standard
                  & Poor’s Anti-Predatory Lending Categorization

              
	
                Schedule
                  A

              	
                Required
                  Ratings for each Class of
                  Certificates

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      MORTGAGE
        LOAN PURCHASE AGREEMENT

       

      MORTGAGE
        LOAN PURCHASE AGREEMENT, dated as of November 30, 2006, as amended and
        supplemented by any and all amendments hereto (collectively, “this
        Agreement”),
        by
        and between EMC MORTGAGE CORPORATION, a Delaware corporation (“EMC”
or
        the
“Mortgage
        Loan Seller”),
        and
        BEAR STEARNS ASSET BACKED SECURITIES I LLC, a Delaware limited liability
        company
        (the “Purchaser”).

       

      Upon
        the
        terms and subject to the conditions of this Agreement, the Mortgage Loan
        Seller
        agrees to sell, and the Purchaser agrees to purchase, certain conventional,
        fixed rate, first lien mortgage loans secured by one- to four-family residences
        (collectively, the “Mortgage
        Loans”)
        as
        described herein. The Purchaser intends to deposit the Mortgage Loans into
        a
        trust fund (the “Trust
        Fund”)
        and
        create Bear Stearns Asset Backed Securities I Trust 2006-AC5, Asset-Backed
        Certificates, Series 2006-AC5 (the “Certificates”),
        under
        a pooling and servicing agreement, to be dated as of November 1, 2006 (the
        “Pooling
        and Servicing Agreement”),
        among
        the Purchaser, as depositor, the Mortgage Loan Seller, as seller and company,
        Wells Fargo Bank, National Association, as master servicer (the “Master
        Servicer”)
        and as
        securities administrator (the “Securities
        Administrator”),
        and
        U.S. Bank National Association, as trustee (the “Trustee”).

       

      The
        Purchaser has filed with the Securities and Exchange Commission (the
“Commission”)
        a
        registration statement on Form S-3 (Number 333-131374) relating to its
        Asset-Backed Certificates and the offering of certain series thereof (including
        certain classes of the Certificates) from time to time in accordance with
        Rule
        415 under the Securities Act of 1933, as amended, and the rules and regulations
        of the Commission promulgated thereunder (the “Securities
        Act”).
        Such
        registration statement, when it became effective under the Securities Act,
        and
        the prospectus relating to the public offering of certain classes of the
        Certificates by the Purchaser (the “Public
        Offering”),
        as
        each may be amended or supplemented from time to time pursuant to the Securities
        Act or otherwise, are referred to herein as the “Registration
        Statement”
and
        the
“Prospectus,”
        respectively. The “Prospectus
        Supplement”
shall
        mean that supplement, dated November 28, 2006, to the Prospectus, dated October
        18, 2006, relating to certain classes of the Certificates. With respect to
        the
        Public Offering of certain classes of the Certificates, the Purchaser and
        Bear,
        Stearns & Co. Inc. (“Bear
        Stearns”)
        have
        entered into a terms agreement, dated as of June 19, 2006, to an underwriting
        agreement, dated April 13, 2006, between the Purchaser and Bear Stearns
        (together, the “Underwriting
        Agreement”).

       

      Now,
        therefore, in consideration of the premises and the mutual agreements set
        forth
        herein, the parties hereto agree as follows:

       

      SECTION
        1.  Definitions.
        Certain
        terms are defined herein. Capitalized terms used herein but not defined herein
        shall have the meanings specified in the Pooling and Servicing Agreement.
        The
        following other terms are defined as follows:

       

      Acquisition
        Price:
        Cash in
        an amount equal to $            
        *             
        (plus
        $        *       
        in
        accrued interest).

       

      Bear
        Stearns:
        Bear,
        Stearns & Co. Inc.

       

      Closing
        Date:
        November 30, 2006.

       

      Custodial
        Agreement:
        An
        agreement, dated as of November 30, 2006 among the Depositor, the Mortgage
        Loan
        Seller, the Trustee, the Master Servicer, the Securities Administrator and
        the
        Custodian.

       

      Cut-off
        Date Balance:
        Shall
        mean $265,037,284.33.

       

      Deleted
        Mortgage Loan:
        A
        Mortgage Loan replaced or to be replaced by a Replacement Mortgage
        Loan.

       

      Due
        Date:
        With
        respect to each Mortgage Loan, the date in each month on which its scheduled
        payment is due, as set forth in the related Mortgage Note.

       

      EMC
        Flow Loans:
        The
        Mortgage Loans purchased by EMC pursuant to a flow loan purchase
        agreement.

       

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

       

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

       

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

       

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

       

      Mortgage:
        The
        mortgage or deed of trust creating a first lien on an interest in real property
        securing a Mortgage Note.

       

      Mortgage
        File:
        The
        items referred to in Exhibit
        1
        pertaining to a particular Mortgage Loan and any additional documents required
        to be added to such documents pursuant to this Agreement.

       

      Mortgage
        Rate:
        The
        annual rate of interest borne by a Mortgage Note as stated therein.

       

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

       

      Net
        Mortgage Rate:
        For
        each Mortgage Loan, the Mortgage Rate for such Mortgage Loan less (i) the
        Master
        Servicing Fee Rate, (ii) the Servicing Fee Rate and (ii) the rate at which
        the
        LPMI Fee is calculated, if applicable.

       

      Opinion
        of Counsel:
        A
        written opinion of counsel, who may be counsel for the Mortgage Loan Seller
        or
        the Purchaser, reasonably acceptable to the Trustee.

       

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

       

      Purchase
        Price:
        With
        respect to any Mortgage Loan required to be purchased by the Mortgage Loan
        Seller pursuant to the applicable provisions of this Agreement, an amount
        equal
        to the sum of (i) 100% of the principal remaining unpaid on such Mortgage
        Loan
        as of the date of purchase (including if a foreclosure has already occurred,
        the
        principal balance of the related Mortgage Loan at the time the Mortgaged
        Property was acquired), (ii) accrued and unpaid interest thereon at the Mortgage
        Rate through and including the last day of the month of purchase, plus any
        portion of the Servicing Advances payable to the purchaser of the Mortgage
        Loan,
        and (iii) any costs and damages (if any) incurred by the Trust in connection
        with any violation of such Mortgage Loan of any anti-predatory lending
        laws.

       

      Rating
        Agencies:
        Standard & Poor’s and Moody’s, each a “Rating
        Agency.”

       

      Replacement
        Mortgage Loan:
        A
        mortgage loan substituted for a Deleted

      Mortgage
        Loan which must meet on the date of such substitution the requirements stated
        herein and in the Pooling and Servicing Agreement; upon such substitution,
        such
        mortgage loan shall be a “Mortgage Loan” hereunder.

      

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

       

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

       

      Transaction
        Documents:
        This Agreement, the Pooling and Servicing Agreement, the Custodial Agreement
        and
        the Underwriting Agreement.

       

      Value:
        The
        value of the Mortgaged Property at the time of origination of the related
        Mortgage Loan, such value being the lesser of (i) the value of such property
        set
        forth in an appraisal accepted by the applicable originator of the Mortgage
        Loan
        or (ii) the sales price of such property at the time of
        origination.

       

      Wells
        Fargo:
        Wells
        Fargo Bank, National Association.

       

      
        

        
          * Please
            contact Bear Stearns for pricing information.

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

      SECTION
        2.  Purchase
        and Sale of the Mortgage Loans and Related Rights.
        

       

      (a)  Upon
        satisfaction of the conditions set forth in Section 10 hereof, the Mortgage
        Loan
        Seller agrees to sell, and the Purchaser agrees to purchase Mortgage Loans
        sold
        by the Mortgage Loan Seller having an aggregate outstanding principal balance
        as
        of the Cut-off Date equal to the related Cut-off Date Balance.

       

      (b)  The
        closing for the purchase and sale of the Mortgage Loans and the closing for
        the
        issuance of the Certificates will take place on the Closing Date at the office
        of the Purchaser’s counsel in New York, New York or such other place as the
        parties shall agree.

       

      (c)  Upon
        the
        satisfaction of the conditions set forth in Section 10 hereof, on the Closing
        Date, the Purchaser shall pay to the Mortgage Loan Seller the Acquisition
        Price
        for the Mortgage Loans sold by the Mortgage Loan Seller in immediately available
        funds by wire transfer to such account or accounts as shall be designated
        by the
        Mortgage Loan Seller.

       

      (d)  In
        addition to the foregoing, on the Closing Date the Mortgage Loan Seller assigns
        to the Purchaser all of its right, title and interest in the Servicing
        Agreements.

       

      SECTION
        3.  Mortgage
        Loan Schedules.
        The
        Mortgage Loan Seller agrees to provide to the Purchaser as of the date hereof
        a
        preliminary listing of the Mortgage Loans (the “Preliminary Mortgage Loan
        Schedule”) setting forth the information listed on Exhibit
        2
        to this
        Agreement with respect to each of the Mortgage Loans being sold by the Mortgage
        Loan Seller. If there are changes to the Preliminary Mortgage Loan Schedule,
        the
        Mortgage Loan Seller shall provide to the Purchaser as of the Closing Date
        a
        final schedule (the “Final Mortgage Loan Schedule”) setting forth the
        information listed on Exhibit
        2
        to this
        Agreement with respect to each of the Mortgage Loans being sold by the Mortgage
        Loan Seller to the Purchaser. The Final Mortgage Loan Schedule shall be
        delivered to the Purchaser on the Closing Date, shall be attached to an
        amendment to this Agreement to be executed on the Closing Date by the parties
        hereto and shall be in form and substance mutually agreed to by the Mortgage
        Loan Seller and the Purchaser (the “Amendment”). If there are no changes to the
        Preliminary Mortgage Loan Schedule, the Preliminary Mortgage Loan Schedule
        shall
        be the Final Mortgage Loan Schedule for all purposes hereof.

       

      SECTION
        4.  Mortgage
        Loan Transfer.

       

      (a)  The
        Purchaser will be entitled to all scheduled payments of principal and interest
        on the Mortgage Loans due after the Cut-off Date (regardless of when actually
        collected) and all payments thereof. The Mortgage Loan Seller will be entitled
        to all scheduled payments of principal and interest on the Mortgage Loans
        due on
        or before the Cut-off Date (including payments collected after the Cut-off
        Date)
        and all payments thereof. Such principal amounts and any interest thereon
        belonging to the Mortgage Loan Seller as described above will not be included
        in
        the aggregate outstanding principal balance of the Mortgage Loans as of the
        Cut-off Date as set forth on the Final Mortgage Loan Schedule.

       

      (b)  Pursuant
        to various conveyancing documents to be executed on the Closing Date and
        pursuant to the Pooling and Servicing Agreement, the Purchaser will assign
        on
        the Closing Date all of its right, title and interest in and to the Mortgage
        Loans to the Trustee for the benefit of the Certificateholders. In connection
        with the transfer and assignment of the Mortgage Loans, the Mortgage Loan
        Seller
        has delivered or will deliver or cause to be delivered to the Trustee or
        the
        Custodian on behalf of the Trustee by the Closing Date or such later date
        as is
        agreed to by the Purchaser and the Mortgage Loan Seller (each of the Closing
        Date and such later date is referred to as a “Mortgage
        File Delivery Date”),
        the
        items of each Mortgage File, provided,
        however,
        that in
        lieu of the foregoing, the Mortgage Loan Seller may deliver the following
        documents, under the circumstances set forth below: (x) in lieu of the original
        Mortgage (other than the Mortgages related to the EMC Flow Loans), assignments
        to the Trustee or intervening assignments thereof which have been delivered,
        are
        being delivered or will upon receipt of recording information relating to
        the
        Mortgage required to be included thereon, be delivered to recording offices
        for
        recording and have not been returned in time to permit their delivery as
        specified above, the Mortgage Loan Seller may deliver a true copy thereof
        with a
        certification by the Mortgage Loan Seller or the Master Servicer, on the
        face of
        such copy, substantially as follows: “Certified to be a true and correct copy of
        the original, which has been transmitted for recording;” (y) in lieu of the
        Mortgage (other than the Mortgages related to the EMC Flow Loans), assignments
        to the Trustee or intervening assignments thereof, if the applicable
        jurisdiction retains the originals of such documents or if the originals
        are
        lost (in each case, as evidenced by a certification from the Mortgage Loan
        Seller or the Master Servicer to such effect), the Mortgage Loan Seller may
        deliver photocopies of such documents containing an original certification
        by
        the judicial or other governmental authority of the jurisdiction where such
        documents were recorded; and (z) in lieu of the Mortgage Notes relating to
        the
        Mortgage Loans, each identified in the list delivered by the Purchaser to
        the
        Trustee on the Closing Date and attached hereto as Exhibit
        5
        the
        Mortgage Loan Seller may deliver lost note affidavits and indemnities of
        the
        Mortgage Loan Seller; and provided further, however, that in the case of
        Mortgage Loans which have been prepaid in full after the Cut-off Date and
        prior
        to the Closing Date, the Mortgage Loan Seller, in lieu of delivering the
        above
        documents, may deliver to the Trustee a certification by the Mortgage Loan
        Seller or the Master Servicer to such effect. The Mortgage Loan Seller shall
        deliver such original documents (including any original documents as to which
        certified copies had previously been delivered) or such certified copies
        to the
        Trustee, or the Custodian on behalf of the Trustee, promptly after they are
        received. The Mortgage Loan Seller shall cause the Mortgage and intervening
        assignments, if any, and the assignment of the Mortgage to be recorded not
        later
        than 180 days after the Closing Date unless such assignment is not required
        to
        be recorded under the terms set forth in Section 6(a) hereof.

       

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

       

      (d)  The
        Mortgage Loan Seller and the Purchaser acknowledge hereunder that all of
        the
        Mortgage Loans and the related servicing, will ultimately be assigned to
        U.S.
        Bank National Association, as Trustee for the benefit of the Certificateholders,
        on the date hereof.

       

      SECTION
        5.  Examination
        of Mortgage Files.

       

      (a)  On
        or
        before the Mortgage File Delivery Date, the Mortgage Loan Seller will have
        made
        the Mortgage Files available to the Purchaser or its agent for examination
        which
        may be at the offices of the Trustee or the Mortgage Loan Seller and/or the
        Mortgage Loan Seller’s custodian. The fact that the Purchaser or its agent has
        conducted or has failed to conduct any partial or complete examination of
        the
        Mortgage Files shall not affect the Purchaser’s rights to demand cure,
        repurchase, substitution or other relief as provided in this Agreement. In
        furtherance of the foregoing, the Mortgage Loan Seller shall make the Mortgage
        Files available to the Purchaser or its agent from time to time so as to
        permit
        the Purchaser to confirm the Mortgage Loan Seller’s compliance with the delivery
        and recordation requirements of this Agreement and the Pooling and Servicing
        Agreement. In addition, upon request of the Purchaser, the Mortgage Loan
        Seller
        agrees to provide to the Purchaser, Bear Stearns and to any investors or
        prospective investors in the Certificates information regarding the Mortgage
        Loans and their servicing, to make the Mortgage Files available to the
        Purchaser, Bear Stearns and to such investors or prospective investors (which
        may be at the offices of the Mortgage Loan Seller and/or the Mortgage Loan
        Seller’s custodian) and to make available personnel knowledgeable about the
        Mortgage Loans for discussions with the Purchaser, Bear Stearns and such
        investors or prospective investors, upon reasonable request during regular
        business hours, sufficient to permit the Purchaser, Bear Stearns and such
        investors or potential investors to conduct such due diligence as any such
        party
        reasonably believes is appropriate.

       

      (b)  Pursuant
        to the Pooling and Servicing Agreement, on the Closing Date the Trustee (or
        the
        Custodian as obligated under the Custodial Agreement), for the benefit of
        the
        Certificateholders, will review items of the Mortgage Files as set forth
        on
Exhibit
        1
        and will
        deliver to the Mortgage Loan Seller an initial certification in the form
        attached as Exhibit One to the Custodial Agreement.

       

      (c)  Within
        90
        days of the Closing Date, the Trustee or the Custodian on its behalf shall,
        in
        accordance with the provisions of Section 2.02 of the Pooling and Servicing
        Agreement, deliver to the Mortgage Loan Seller and the Trustee an Interim
        Certification in the form attached as Exhibit Two to the Custodial Agreement
        to
        the effect that all such documents have been executed and received and that
        such
        documents relate to the Mortgage Loans identified on the Mortgage Loan Schedule,
        except for any exceptions listed on Schedule A attached to such Interim
        Certification. The Custodian shall be under no duty or obligation to inspect,
        review or examine said documents, instruments, certificates or other papers
        to
        determine that the same are genuine, enforceable, or appropriate for the
        represented purpose or that they have actually been recorded or that they
        are
        other than what they purport to be on their face.

       

      (d)  The
        Trustee or the Custodian on its behalf will review the Mortgage Files within
        180
        days of the Closing Date and will deliver to the Mortgage Loan Seller and
        the
        Master Servicer, and if reviewed by the Custodian, the Trustee, a final
        certification substantially in the form of Exhibit Three to the Custodial
        Agreement. If the Trustee or the Custodian on its behalf is unable to deliver
        a
        final certification with respect to the items listed in Exhibit
        1
        due to
        any document that is missing, has not been executed, is unrelated, determined
        on
        the basis of the Mortgagor name, original principal balance and loan number,
        to
        the Mortgage Loans identified in the Final Mortgage Loan Schedule (a
“Material
        Defect”),
        the
        Trustee or the Custodian on its behalf shall notify the Mortgage Loan Seller of
        such Material Defect. The Mortgage Loan Seller (on its own behalf as a Mortgage
        Loan Seller) shall correct or cure any such Material Defect within 90 days
        from
        the date of notice from the Trustee of the Material Defect and if the Mortgage
        Loan Seller does not correct or cure such Material Defect within such period
        and
        such defect materially and adversely affects the interests of the
        Certificateholders in the related Mortgage Loan, the Mortgage Loan Seller
        will,
        in accordance with the terms of the Pooling and Servicing Agreement, within
        90
        days of the date of notice, provide the Trustee with a Replacement Mortgage
        Loan
        (if within two years of the Closing Date) or purchase the related Mortgage
        Loan
        at the applicable Purchase Price; provided,
        however,
        that if
        such defect relates solely to the inability of the Mortgage Loan Seller to
        deliver the original security instrument or intervening assignments thereof,
        or
        a certified copy because the originals of such documents, or a certified
        copy,
        have not been returned by the applicable jurisdiction, the Mortgage Loan
        Seller
        shall not be required to purchase such Mortgage Loan if the Mortgage Loan
        Seller
        delivers such original documents or certified copy promptly upon receipt,
        but in
        no event later than 360 days after the Closing Date. The foregoing repurchase
        obligation shall not apply in the event that the Mortgage Loan Seller cannot
        deliver such original or copy of any document submitted for recording to
        the
        appropriate recording office in the applicable jurisdiction because such
        document has not been returned by such office; provided that the Mortgage
        Loan
        Seller shall instead deliver a recording receipt of such recording office
        or, if
        such receipt is not available, a certificate of Mortgage Loan Seller or a
        Servicing Officer confirming that such documents have been accepted for
        recording, and delivery to the Trustee shall be effected by the Mortgage
        Loan
        Seller within thirty days of its receipt of the original recorded
        document.

       

      (e)  At
        the
        time of any substitution, the Mortgage Loan Seller shall deliver or cause
        to be
        delivered the Replacement Mortgage Loan, the related Mortgage File and any
        other
        documents and payments required to be delivered in connection with a
        substitution pursuant to the Pooling and Servicing Agreement. At the time
        of any
        purchase or substitution, the Trustee shall (i) assign the selected Mortgage
        Loan to the Mortgage Loan Seller and shall release or cause the Custodian
        to
        release the documents (including, but not limited to the Mortgage, Mortgage
        Note
        and other contents of the Mortgage File) in the possession of the Trustee
        or the
        Custodian, as applicable relating to the Deleted Mortgage Loan and (ii) execute
        and deliver such instruments of transfer or assignment, in each case without
        recourse, as shall be necessary to vest in the Mortgage Loan Seller title
        to
        such Deleted Mortgage Loan.

       

      SECTION
        6.  Recordation
        of Assignments of Mortgage.

       

      (a)  The
        Mortgage Loan Seller will, promptly after the Closing Date, cause each Mortgage
        and each assignment of Mortgage from the Mortgage Loan Seller to the Trustee,
        and all unrecorded intervening assignments, if any, delivered on or prior
        to the
        Closing Date, to be recorded in all recording offices in the jurisdictions
        where
        the related Mortgaged Properties are located; provided,
        however,
        the
        Mortgage Loan Seller need not cause to be recorded any assignment which relates
        to a Mortgage Loan that is a MOM Loan or for which the related Mortgaged
        Property is located in any jurisdiction under the laws of which, as evidenced
        by
        an Opinion of Counsel delivered by the Mortgage Loan Seller to the Trustee
        and
        the Rating Agencies, the recordation of such assignment is not necessary
        to
        protect the Trustee’s interest in the related Mortgage Loan; provided,
        however,
        notwithstanding the delivery of any Opinion of Counsel, each assignment of
        Mortgage shall be submitted for recording by the Mortgage Loan Seller in
        the
        manner described above, at no expense to the Trust Fund or Trustee, upon
        the
        earliest to occur of (i) reasonable direction by the Holders of Certificates
        evidencing Percentage Interests aggregating not less than 25% of the Trust,
        (ii)
        the occurrence of a Company Default, (iii) the occurrence of a bankruptcy,
        insolvency or foreclosure relating to the Mortgage Loan Seller under the
        Pooling
        and Servicing Agreement, (iv) the occurrence of a servicing transfer as
        described in Section 9.05 of the Pooling and Servicing Agreement or an
        assignment of the servicing as described in Section 8.05(b) of the Pooling
        and
        Servicing Agreement or (iv) with respect to any one assignment of Mortgage,
        the
        occurrence of a bankruptcy, insolvency or foreclosure relating to the Mortgagor
        under the related Mortgage.

       

      While
        each such Mortgage or assignment is being recorded, if necessary, the Mortgage
        Loan Seller shall leave or cause to be left with the Trustee or the Custodian
        on
        its behalf a certified copy of such Mortgage or assignment. In the event
        that,
        within 180 days of the Closing Date, the Trustee has not been provided with
        an
        Opinion of Counsel as described above or received evidence of recording with
        respect to each Mortgage Loan delivered to the Purchaser pursuant to the
        terms
        hereof or as set forth above and the related Mortgage Loan is not a MOM Loan,
        the failure to provide evidence of recording or such Opinion of Counsel shall
        be
        considered a Material Defect, and the provisions of Section 5(c) and (d)
        shall
        apply. All customary recording fees and reasonable expenses relating to the
        recordation of the assignments of mortgage to the Trustee or the Opinion
        of
        Counsel, as the case may be, shall be borne by the Mortgage Loan
        Seller.

       

      (b)  It
        is the
        express intent of the parties hereto that the conveyance of the Mortgage
        Loans
        by the Mortgage Loan Seller to the Purchaser, as contemplated by this Agreement
        be, and be treated as, a sale. It is, further, not the intention of the parties
        that such conveyance be deemed a pledge of the Mortgage Loans by the Mortgage
        Loan Seller to the Purchaser to secure a debt or other obligation of the
        Mortgage Loan Seller. However, in the event that, notwithstanding the intent
        of
        the parties, the Mortgage Loans are held by a court to continue to be property
        of the Mortgage Loan Seller, then (a) this Agreement shall also be deemed
        to be
        a security agreement within the meaning of Articles 8 and 9 of the applicable
        Uniform Commercial Code; (b) the transfer of the Mortgage Loans provided
        for
        herein shall be deemed to be a grant by the Mortgage Loan Seller to the
        Purchaser of a security interest in all of the Mortgage Loan Seller’s right,
        title and interest in and to the Mortgage Loans and all amounts payable to
        the
        holders of the Mortgage Loans in accordance with the terms thereof and all
        proceeds of the conversion, voluntary or involuntary, of the foregoing into
        cash, instruments, securities or other property, to the extent the Purchaser
        would otherwise be entitled to own such Mortgage Loans and proceeds pursuant
        to
        Section 4 hereof, including all amounts, other than investment earnings,
        from
        time to time held or invested in any accounts created pursuant to the Pooling
        and Servicing Agreement, whether in the form of cash, instruments, securities
        or
        other property; (c) the possession by the Purchaser or the Trustee (or the
        Custodian on its behalf) of Mortgage Notes and such other items of property
        as
        constitute instruments, money, negotiable documents or chattel paper shall
        be
        deemed to be “possession by the secured party” for purposes of perfecting the
        security interest pursuant to Section 9-305 (or comparable provision) of
        the
        applicable Uniform Commercial Code; and (d) notifications to persons holding
        such property, and acknowledgments, receipts or confirmations from persons
        holding such property, shall be deemed notifications to, or acknowledgments,
        receipts or confirmations from, financial intermediaries, bailees or agents
        (as
        applicable) of the Purchaser for the purpose of perfecting such security
        interest under applicable law. Any assignment of the interest of the Purchaser
        pursuant to any provision hereof or pursuant to the Pooling and Servicing
        Agreement shall also be deemed to be an assignment of any security interest
        created hereby. The Mortgage Loan Seller and the Purchaser shall, to the
        extent
        consistent with this Agreement, take such actions as may be reasonably necessary
        to ensure that, if this Agreement were deemed to create a security interest
        in
        the Mortgage Loans, 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 Pooling and Servicing Agreement.

       

      SECTION
        7.  Representations
        and Warranties of the Mortgage Loan Seller Concerning the Mortgage
        Loans.
        The
        Mortgage Loan Seller hereby represents and warrants to the Purchaser as of
        the
        Closing Date or such other date as may be specified below with respect to
        each
        Mortgage Loan being sold by it, that:

       

      (a)  The
        information set forth in the Mortgage Loan Schedule hereto is true and correct
        in all material respects.

       

      (b)  Immediately
        prior to the transfer to the Purchaser, the Mortgage Loan Seller was the
        sole
        owner of beneficial title and holder of each Mortgage and Mortgage Note relating
        to the Mortgage Loans and is conveying the same free and clear of any and
        all
        liens, claims, encumbrances, participation interests, equities, pledges,
        charges
        or security interests of any nature and the Mortgage Loan Seller has full
        right
        and authority to sell or assign the same pursuant to this
        Agreement.

       

      (c)  Each
        Mortgage Loan at the time it was made complied in all material respects with
        all
        applicable federal, state and local laws and regulations, including, without
        limitation, usury, equal credit opportunity, disclosure and recording laws
        and
        all applicable predatory, abusive and fair lending laws; and each Mortgage
        Loan
        has been serviced in all material respects in accordance with all applicable
        laws and regulations, including, without limitation, usury, equal credit
        opportunity, disclosure and recording laws and all applicable anti-predatory
        lending laws and the terms of the related Mortgage Note, the Mortgage and
        other
        loan documents.

       

      (d)  There
        is
        no monetary default existing under any Mortgage or the related Mortgage Note
        and
        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
        or event of acceleration; and neither the Mortgage Loan Seller, any of its
        affiliates nor any servicer of any related Mortgage Loan has taken any action
        to
        waive any default, breach or event of acceleration; and no foreclosure action
        is
        threatened or has been commenced with respect to the Mortgage Loan.

       

      (e)  The
        terms
        of the Mortgage Note and the Mortgage have not been impaired, waived, altered
        or
        modified in any respect, except by written instruments, (i) if required by
        law
        in the jurisdiction where the Mortgaged Property is located, or (ii) to protect
        the interests of the Trustee on behalf of the Certificateholders.

       

      (f)  No
        selection procedure reasonably believed by the Mortgage Loan Seller to be
        adverse to the interests of the Certificateholders was utilized in selecting
        the
        Mortgage Loans.

       

      (g)  Each
        Mortgage is a valid and enforceable first or second lien on the property
        securing the related Mortgage Note and each Mortgaged Property is owned by
        the
        Mortgagor in fee simple (except with respect to common areas in the case
        of
        condominiums, PUDs and de minimis
        PUDs) or
        by leasehold for a term longer than the term of the related Mortgage, subject
        only to (i) the lien of current real property taxes and assessments, (ii)
        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 being acceptable to mortgage lending institutions generally or
        specifically reflected in the appraisal obtained in connection with the
        origination of the related Mortgage Loan or referred to in the lender’s title
        insurance policy delivered to the originator of the related Mortgage Loan
        and
        (iii) 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.

       

      (h)  There
        is
        no mechanics’ lien or claim for work, labor or material affecting the premises
        subject to any Mortgage which is 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 clause (m) below.

       

      (i)  There
        was
        no delinquent tax or assessment lien against the property subject to any
        Mortgage, except where such lien was being contested in good faith and a
        stay
        had been granted against levying on the property.

       

      (j)  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 and
        interest on such Mortgage Note.

       

      (k)  The
        physical property subject to any Mortgage is free of material damage and
        is in
        good repair and there is no proceeding pending or threatened for the total
        or
        partial condemnation of any Mortgaged Property.

       

      (l)  The
        Mortgaged Property and all improvements thereon comply with all requirements
        of
        any applicable zoning and subdivision laws and ordinances.

       

      (m)  A
        lender’s title insurance policy (on an ALTA or CLTA form) or binder, or other
        assurance of title customary in the relevant jurisdiction therefor in a form
        acceptable to Fannie Mae or Freddie Mac, was issued on the date that each
        Mortgage Loan was created by a title insurance company which, to the best
        of the
        Mortgage Loan Seller’s knowledge, was qualified to do business in the
        jurisdiction where the related Mortgaged Property is located, insuring the
        Mortgage Loan Seller and its successors and assigns that the Mortgage is
        a first
        priority lien on the related Mortgaged Property in the original principal
        amount
        of the Mortgage Loan. The Mortgage Loan Seller is the sole insured under
        such
        lender’s title insurance policy, and such policy, binder or assurance is valid
        and remains in full force and effect, and each such policy, binder or assurance
        shall contain all applicable endorsements including a negative amortization
        endorsement, if applicable.

       

      (n)  At
        the
        time of origination, each Mortgaged Property was the subject of an appraisal
        which conformed to the underwriting requirements of the originator of the
        Mortgage Loan and, the appraisal is in a form acceptable to Fannie Mae or
        Freddie Mac. 

       

      (o)  The
        improvements on each Mortgaged Property securing a Mortgage Loan are insured
        (by
        an insurer which is acceptable to the Mortgage Loan Seller) against loss
        by fire
        and such hazards as are covered under a standard extended coverage endorsement
        in the locale in which the Mortgaged Property is located, in an amount which
        is
        not less than the lesser of the maximum insurable value of the improvements
        securing such Mortgage Loan or the outstanding principal balance of the Mortgage
        Loan, but in no event in an amount less than an amount that is required to
        prevent the Mortgagor from being deemed to be a co-insurer thereunder; if
        the
        improvement on the Mortgaged Property is a condominium unit, it is included
        under the coverage afforded by a blanket policy for the condominium project;
        if
        upon origination of the related Mortgage Loan, the improvements on the Mortgaged
        Property were in an area identified as a federally designated flood area,
        a
        flood insurance policy is in effect in an amount representing coverage not
        less
        than the least of (i) the outstanding principal balance of the Mortgage Loan,
        (ii) the restorable cost of improvements located on such Mortgaged Property
        or
        (iii) the maximum coverage available under federal law; and each Mortgage
        obligates the Mortgagor thereunder to maintain the insurance referred to
        above
        at the Mortgagor’s cost and expense.

       

      (p)  Each
        Mortgage Loan constitutes a “qualified mortgage” under Section 860G(a)(3)(A) of
        the Code and Treasury Regulation Section 1.860G-2(a)(1), (2), (4), (5), (6),
        (7)
        and (9) without reliance on the provisions of Treasury Regulation Section
        1.860G-2(a)(3) or Treasury Regulation Section 1.860G-2(f)(2) or any other
        provision that would allow a Mortgage Loan to be treated as a “qualified
        mortgage” notwithstanding its failure to meet the requirements of Section
        860G(a)(3)(A) of the Code and Treasury Regulation Section 1.860G-2(a)(1),
        (2),
        (4), (5), (6), (7) and (9).

       

      (q)  None
        of
        the Mortgage Loans are (a) loans subject to 12 CFR Part 226.31, 12 CFR Part
        226.32 or 12 CFR Part 226.34 of Regulation Z, the regulation implementing
        TILA,
        which implements the Home Ownership and Equity Protection Act of 1994, as
        amended or (b) “high cost home,” “covered” (excluding home loans defined as
“covered home loans” in the New Jersey Home
        Ownership Security Act of 2002 that were originated between November 26,
        2003
        and July 7, 2004), “high risk home” or “predatory” loans under any applicable
        state, federal or local law (or a similarly classified loan using different
        terminology under a law imposing heightened regulatory scrutiny or additional
        legal liability for residential mortgage loans having high interest rates,
        points and/or fees).

       

      (r)  The
        information set forth in Schedule A of the Prospectus Supplement with respect
        to
        the Mortgage Loans
        is true
        and correct in all material respects.

       

      (s)  No
        Mortgage Loan (a) is a “high cost loan” or “covered loan” as applicable (as such
terms
        are
        defined in the then current Standard & Poor’s LEVELS® Glossary, which is now
        Version 5.6(d), Appendix E, attached hereto as Exhibit 6) or (b) was originated
        on or after October 1, 2002 through March 6, 2003 and is governed by the
        Georgia
        Fair Lending Act. 

       

      (t)  Each
        Mortgage Loan was originated in accordance with the underwriting guidelines
        of
        the related originator.

       

      (u)  Each
        original Mortgage has been recorded or is in the process of being recorded
        in
        accordance with the requirements of Section 2.01 of the Pooling and Servicing
        Agreement in the appropriate jurisdictions wherein such recordation is required
        to perfect the lien thereof for the benefit of the Trust Fund.

       

      (v)  The
        related Mortgage File contains each of the documents and instruments listed
        in
        Section 2.01 of the Pooling and Servicing Agreement, subject to any exceptions,
        substitutions and qualifications as are set forth in such Section.

       

      (w)  The
        Mortgage Loans are currently being serviced in accordance with accepted
        servicing practices.

       

      (x)  With
        respect to each Mortgage Loan that has a prepayment penalty feature, each
        such
        prepayment penalty is enforceable and will be enforced by the Mortgage Loan
        Seller and each prepayment penalty
        is
        permitted pursuant to federal, state and local law, provided
        that
        (i) no
        Mortgage Loan will impose a prepayment penalty for a term in excess of five
        years from the date such Mortgage Loan was originated and (ii) such prepayment
        penalty is at least equal to the lesser of (A) the maximum amount permitted
        under applicable law and (B) six months interest at the related Mortgage
        Interest Rate on the amount prepaid in excess of 20% of the original principal
        balance of such Mortgage Loan.

       

      (y)  If
        any of
        the Mortgage Loans are secured by a leasehold interest, with respect to each
        leasehold interest: the use of leasehold estates for residential properties
        is
        an accepted practice in the area where the related Mortgaged Property is
        located; residential property in such area consisting of leasehold estates
        is
        readily marketable; the lease is recorded and no party is in any way in breach
        of any provision of such lease; the leasehold is in full force and effect
        and is
        not subject to any prior lien or encumbrance by which the leasehold could
        be
        terminated or subject to any charge or penalty; and the remaining term of
        the
        lease does not terminate less than ten years after the maturity date of such
        Mortgage Loan.

       

      It
        is
        understood and agreed that the representations and warranties set forth in
        this
        Section 7 will inure to the benefit of the Purchaser, its successors and
        assigns, notwithstanding any restrictive or qualified endorsement on any
        Mortgage Note or assignment of Mortgage or the examination of any Mortgage
        File.
        Upon any substitution for a Mortgage Loan, the representations and warranties
        set forth above shall be deemed to be made by the Mortgage Loan Seller as
        to any
        Replacement Mortgage Loan as of the date of substitution.

       

      Upon
        discovery or receipt of notice by the Mortgage Loan Seller, the Purchaser
        or the
        Trustee of a breach of any representation or warranty of the Mortgage Loan
        Seller set forth in this Section 7 which materially and adversely affects
        the
        value of the interests of the Purchaser, the Certificateholders or the Trustee
        in any of the Mortgage Loans delivered to the Purchaser pursuant to this
        Agreement, the party discovering or receiving notice of such breach shall
        give
        prompt written notice to the others. In the case of any such breach of a
        representation or warranty set forth in this Section 7, within 90 days from
        the
        date of discovery by the Mortgage Loan Seller, or the date the Mortgage Loan
        Seller is notified by the party discovering or receiving notice of such breach
        (whichever occurs earlier), the Mortgage Loan Seller will (i) cure such breach
        in all material respects, (ii) purchase the affected Mortgage Loan at the
        applicable Purchase Price or (iii) if within two years of the Closing Date,
        substitute a qualifying Replacement Mortgage Loan in exchange for such Mortgage
        Loan; provided that, (A) in the case of a breach of the representation and
        warranty concerning the Mortgage Loan Schedule contained in clause (a) of
        this
        Section 7, if such breach is material and relates to any field on the Mortgage
        Loan Schedule which identifies any Prepayment Charge or (B) in the case of
        a
        breach of the representation contained in clause (x) of this Section 7, then,
        in
        each case, in lieu of purchasing such Mortgage Loan from the Trust Fund at
        the
        Purchase Price, the Mortgage Loan Seller shall pay the amount of the Prepayment
        Charge (net of any amount previously collected by or paid to the Trust Fund
        in
        respect of such Prepayment Charge) from its own funds and without reimbursement
        therefor, and the Mortgage Loan Seller shall have no obligation to repurchase
        or
        substitute for such Mortgage Loan. The obligations of the Mortgage Loan Seller
        to cure, purchase or substitute a qualifying Replacement Mortgage Loan shall
        constitute the Purchaser’s, the Trustee’s and the Certificateholder’s sole and
        exclusive remedy under this Agreement or otherwise respecting a breach of
        representations or warranties hereunder with respect to the Mortgage Loans,
        except for the obligation of the Mortgage Loan Seller to indemnify the Purchaser
        for such breach as set forth in and limited by Section 13 hereof.

       

      Any
        cause
        of action against the Mortgage Loan Seller or relating to or arising out
        of a
        breach by the Mortgage Loan Seller of any representations and warranties
        made in
        this Section 7 shall accrue as to any Mortgage Loan upon (i) discovery of
        such
        breach by the Mortgage Loan Seller or notice thereof by the party discovering
        such breach and (ii) failure by the Mortgage Loan Seller to cure such breach,
        purchase such Mortgage Loan or substitute a qualifying Replacement Mortgage
        Loan
        pursuant to the terms hereof.

       

      SECTION
        8.  Representations
        and Warranties Concerning the Mortgage Loan Seller.
        As of
        the date hereof and as of the Closing Date, the Mortgage Loan Seller represents
        and warrants to the Purchaser as to itself in the capacity indicated as
        follows:

       

      (a)  the
        Mortgage Loan Seller (i) is a corporation duly organized, validly existing
        and
        in good standing under the laws of the State of Delaware and (ii) is qualified
        and in good standing to do business in each jurisdiction where such
        qualification is necessary, except where the failure so to qualify would
        not
        reasonably be expected to have a material adverse effect on the Mortgage
        Loan
        Seller’s business as presently conducted or on the Mortgage Loan Seller’s
        ability to enter into this Agreement or any other Transaction Document to
        which
        it is a party and to consummate the transactions contemplated hereby or
        thereby;

       

      (b)  the
        Mortgage Loan Seller has full power to own its property, to carry on its
        business as presently conducted and to enter into and perform its obligations
        under this Agreement or any other Transaction Document to which it is a
        party;

       

      (c)  the
        execution and delivery by the Mortgage Loan Seller of this Agreement and
        any
        other Transaction Document to which it is a party has been duly authorized
        by
        all necessary action on the part of the Mortgage Loan Seller; and neither
        the
        execution and delivery of this Agreement or any other Transaction Document
        to
        which it is a party, nor the consummation of the transactions herein or therein
        contemplated, nor compliance with the provisions hereof or thereof, will
        conflict with or result in a breach of, or constitute a default under, any
        of
        the provisions of any law, governmental rule, regulation, judgment, decree
        or
        order binding on the Mortgage Loan Seller or its properties or the charter
        or
        by-laws of the Mortgage Loan Seller, except those conflicts, breaches or
        defaults which would not reasonably be expected to have a material adverse
        effect on the Mortgage Loan Seller’s ability to enter into this Agreement or any
        other Transaction Document to which it is a party and to consummate the
        transactions contemplated hereby or thereby;

       

      (d)  the
        execution, delivery and performance by the Mortgage Loan Seller of this
        Agreement and the consummation of the transactions contemplated hereby do
        not
        require the consent or approval of, the giving of notice to, the registration
        with, or the taking of any other action in respect of, any state, federal
        or
        other governmental authority or agency, except those consents, approvals,
        notices, registrations or other actions as have already been obtained, given
        or
        made and, in connection with the recordation of the Mortgages, powers of
        attorney or assignments of Mortgages not yet completed;

       

      (e)  each
        of
        this Agreement and the other Transaction Document to which it is a party
        has
        been duly executed and delivered by the Mortgage Loan Seller and, assuming
        due
        authorization, execution and delivery by the Purchaser, constitutes a valid
        and
        binding obligation of the Mortgage Loan Seller enforceable against it in
        accordance with its terms (subject to applicable bankruptcy and insolvency
        laws
        and other similar laws affecting the enforcement of the rights of creditors
        generally);

       

      (f)  there
        are
        no actions, suits or proceedings pending or, to the knowledge of the Mortgage
        Loan Seller, threatened against the Mortgage Loan Seller, before or by any
        court, administrative agency, arbitrator or governmental body (i) with respect
        to any of the transactions contemplated by this Agreement or any other
        Transaction Document to which it is a party or (ii) with respect to any other
        matter which in the judgment of the Mortgage Loan Seller could reasonably
        be
        expected to be determined adversely to the Mortgage Loan Seller and will
        if
        determined adversely to the Mortgage Loan Seller materially and adversely
        affect
        the Mortgage Loan Seller’s ability to perform its obligations under this
        Agreement or any other Transaction Document to which it is a party; and the
        Mortgage Loan Seller is not in default with respect to any order of any court,
        administrative agency, arbitrator or governmental body so as to materially
        and
        adversely affect the transactions contemplated by this Agreement;
        and

       

      (g)  the
        Mortgage Loan Seller’s Information (as defined in Section 13(a) hereof) does not
        include 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.

       

      SECTION
        9.  Representations
        and Warranties Concerning the Purchaser.
        As of
        the date hereof and as of the Closing Date, the Purchaser represents and
        warrants to the Mortgage Loan Seller as follows:

       

      (a)  the
        Purchaser (i) is a limited liability company duly organized, validly existing
        and in good standing under the laws of the State of Delaware and (ii) is
        qualified and in good standing to do business in each jurisdiction where
        such
        qualification is necessary, except where the failure so to qualify would
        not
        reasonably be expected to have a material adverse effect on the Purchaser’s
        business as presently conducted or on the Purchaser’s ability to enter into this
        Agreement or any other Transaction Document to which it is a party and to
        consummate the transactions contemplated hereby or thereby;

       

      (b)  the
        Purchaser has full power to own its property, to carry on its business as
        presently conducted and to enter into and perform its obligations under this
        Agreement or any other Transaction Document to which it is a party;

       

      (c)  the
        execution and delivery by the Purchaser of this Agreement or any other
        Transaction Document to which it is a party has been duly authorized by all
        necessary action on the part of the Purchaser; and neither the execution
        and
        delivery of this Agreement, nor the consummation of the transactions herein
        contemplated, nor compliance with the provisions hereof or thereof, will
        conflict with or result in a breach of, or constitute a default under, any
        of
        the provisions of any law, governmental rule, regulation, judgment, decree
        or
        order binding on the Purchaser or its properties or the certificate of formation
        or limited liability company agreement of the Purchaser, except those conflicts,
        breaches or defaults which would not reasonably be expected to have a material
        adverse effect on the Purchaser’s ability to enter into this Agreement or any
        other Transaction Document to which it is a party and to consummate the
        transactions contemplated hereby or thereby;

       

      (d)  the
        execution, delivery and performance by the Purchaser of this Agreement and
        the
        consummation of the transactions contemplated hereby do not require the consent
        or approval of, the giving of notice to, the registration with, or the taking
        of
        any other action in respect of, any state, federal or other governmental
        authority or agency, except those consents, approvals, notices, registrations
        or
        other actions as have already been obtained, given or made;

       

      (e)  each
        of
        this Agreement and the other Transaction Documents to which it is a party
        has
        been duly executed and delivered by the Purchaser and, assuming due
        authorization, execution and delivery by the Mortgage Loan Seller, constitutes
        a
        valid and binding obligation of the Purchaser enforceable against it in
        accordance with its terms (subject to applicable bankruptcy and insolvency
        laws
        and other similar laws affecting the enforcement of the rights of creditors
        generally);

       

      (f)  there
        are
        no actions, suits or proceedings pending or, to the knowledge of the Purchaser,
        threatened against the Purchaser, before or by any court, administrative
        agency,
        arbitrator or governmental body (i) with respect to any of the transactions
        contemplated by this Agreement and the other Transaction Documents to which
        it
        is a party or (ii) with respect to any other matter which in the judgment
        of the
        Purchaser will be determined adversely to the Purchaser and will if determined
        adversely to the Purchaser materially and adversely affect the Purchaser’s
        ability to perform its obligations under this Agreement and the other
        Transaction Documents to which it is a party; and the Purchaser is not in
        default with respect to any order of any court, administrative agency,
        arbitrator or governmental body so as to materially and adversely affect
        the
        transactions contemplated by this Agreement and the other Transaction Documents
        to which it is a party; and

       

      (g)  the
        Purchaser’s Information (as defined in Section 13(b) hereof) does not include
        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.

       

      SECTION
        10.  Conditions
        to Closing.

       

      (a)  The
        obligations of the Purchaser under this Agreement will be subject to the
        satisfaction, on or prior to the Closing Date, of the following conditions:
        

       

      (1)  Each
        of
        the obligations of the Mortgage Loan Seller required to be performed at or
        prior
        to the Closing Date pursuant to the terms of this Agreement shall have been
        duly
        performed and complied with in all material respects; all of the representations
        and warranties of the Mortgage Loan Seller under this Agreement shall be
        true
        and correct as of the date or dates specified in all material respects; and
        no
        event shall have occurred which, with notice or the passage of time, would
        constitute a default under this Agreement or any of the Transaction Documents;
        and the Purchaser shall have received certificates to that effect signed
        by
        authorized officers of the Mortgage Loan Seller.

       

      (2)  The
        Purchaser shall have received all of the following closing documents, in
        such
        forms as are agreed upon and reasonably acceptable to the Purchaser, duly
        executed by all signatories other than the Purchaser as required pursuant
        to the
        respective terms thereof:

       

      (i)  If
        required pursuant to Section 3 hereof, the Amendment dated as of the Closing
        Date and any documents referred to therein;

       

      (ii)  If
        required pursuant to Section 3 hereof, the Final Mortgage Loan Schedule
        containing the information set forth on Exhibit
        2
        hereto,
        one copy to be attached to each counterpart of the Amendment;

       

      (iii)  The
        Pooling and Servicing Agreement, in form and substance reasonably satisfactory
        to the Trustee and the Purchaser, and all documents required thereby duly
        executed by all signatories;

       

      (iv)  A
        certificate of an officer of the Mortgage Loan Seller dated as of the Closing
        Date, in a form reasonably acceptable to the Purchaser, and attached thereto
        the
        resolutions of the Mortgage Loan Seller authorizing the transactions
        contemplated by this Agreement and the other Transaction Documents to which
        it
        is a party, together with copies of the articles of incorporation, by-laws
        and
        certificate of good standing of the Mortgage Loan Seller;

       

      (v)  One
        or
        more opinions of counsel from the Mortgage Loan Seller’s counsel otherwise in
        form and substance reasonably satisfactory to the Purchaser, the Trustee
        and
        each Rating Agency;

       

      (vi)  A
        letter
        from each of the Rating Agencies giving each Class of Certificates set forth
        on
        Schedule A hereto the rating set forth therein; and

       

      (vii)  Such
        other documents, certificates (including additional representations and
        warranties) and opinions as may be reasonably necessary to secure the intended
        ratings from each Rating Agency for the Certificates.

       

      (3)  The
        Certificates to be sold to Bear Stearns pursuant to the Underwriting Agreement
        shall have been issued and sold to Bear Stearns.

       

      (4)  The
        Mortgage Loan Seller shall have furnished to the Purchaser such other
        certificates of its officers or others and such other documents and opinions
        of
        counsel to evidence fulfillment of the conditions set forth in this Agreement
        and the transactions contemplated hereby as the Purchaser and their respective
        counsel may reasonably request.

       

      (b)  The
        obligations of the Mortgage Loan Seller under this Agreement shall be subject
        to
        the satisfaction, on or prior to the Closing Date, of the following
        conditions:

       

      (1)  The
        obligations of the Purchaser required to be performed by it on or prior to
        the
        Closing Date pursuant to the terms of this Agreement shall have been duly
        performed and complied with in all material respects, and all of the
        representations and warranties of the Purchaser under this Agreement shall
        be
        true and correct in all material respects as of the date hereof and as of
        the
        Closing Date, and no event shall have occurred which would constitute a breach
        by it of the terms of this Agreement or any of the Transaction Documents,
        and
        the Mortgage Loan Seller shall have received a certificate to that effect
        signed
        by an authorized officer of the Purchaser.

       

      (2)  The
        Mortgage Loan Seller shall have received copies of all of the following closing
        documents, in such forms as are agreed upon and reasonably acceptable to
        the
        Mortgage Loan Seller, duly executed by all signatories other than the Mortgage
        Loan Seller as required pursuant to the respective terms thereof:

       

      (i)  If
        required pursuant to Section 3 hereof, the Amendment dated as of the Closing
        Date and any documents referred to therein;

       

      (ii)  The
        Pooling and Servicing Agreement, in form and substance reasonably satisfactory
        to the Mortgage Loan Seller, and all documents required thereby duly executed
        by
        all signatories;

       

      (iii)  A
        certificate of an officer of the Purchaser dated as of the Closing Date,
        in a
        form reasonably acceptable to the Mortgage Loan Seller, and attached thereto
        the
        written consent of the member of the Purchaser authorizing the transactions
        contemplated by this Agreement and the other Transaction Documents to which
        it
        is a party, together with copies of the Purchaser’s certificate of formation,
        limited liability company agreement, and evidence as to the good standing
        of the
        Purchaser dated as of a recent date;

       

      (iv)  One
        or
        more opinions of counsel from the Purchaser’s counsel in form and substance
        reasonably satisfactory to the Mortgage Loan Seller and the Rating Agencies;
        and

       

      (v)  Such
        other documents, certificates (including additional representations and
        warranties) and opinions as may be reasonably necessary to secure the intended
        rating from each Rating Agency for the Certificates.

       

      SECTION
        11.  Fees
        and Expenses.
        Subject
        to Section 16 hereof, the Mortgage Loan Seller shall pay on the Closing Date
        or
        such later date as may be agreed to by the Purchaser (i) the fees and expenses
        of the Mortgage Loan Seller’s attorneys and the reasonable fees and expenses of
        the Purchaser’s attorneys, (ii) the fees and expenses of Deloitte & Touche
        LLP, (iii) the fee for the use of Purchaser’s Registration Statement based on
        the aggregate original principal amount of the Certificates and the filing
        fee
        of the Commission as in effect on the date on which the Registration Statement
        was declared effective, (iv) the fees and expenses including counsel’s fees and
        expenses in connection with any “blue sky” and legal investment matters, (v) the
        fees and expenses of the Trustee which shall include without limitation the
        fees
        and expenses of the Trustee (and the fees and disbursements of its counsel)
        with
        respect to (A) legal and document review of this Agreement, the Pooling and
        Servicing Agreement, the Certificates and related agreements, (B) attendance
        at
        the Closing and (C) review of the Mortgage Loans to be performed by the Trustee
        or the Custodian on its behalf, (vi) the expenses for printing or otherwise
        reproducing the Certificates, the Prospectus and the Prospectus Supplement,
        (vii) the fees and expenses of each Rating Agency (both initial and ongoing),
        (viii) the fees and expenses relating to the preparation and recordation
        of
        mortgage assignments (including intervening assignments, if any and if
        available, to evidence a complete chain of title from the originator to the
        Trustee) from the Mortgage Loan Seller to the Trustee or the expenses relating
        to the Opinion of Counsel referred to in Section 6(a) hereof, as the case
        may
        be, and (ix) Mortgage File due diligence expenses and other out-of-pocket
        expenses incurred by the Purchaser in connection with the purchase of the
        Mortgage Loans and by Bear Stearns in connection with the sale of the
        Certificates. The Mortgage Loan Seller additionally agrees to pay directly
        to
        any third party on a timely basis the fees provided for above which are charged
        by such third party and which are billed periodically.

       

      SECTION
        12.  Accountants’
        Letters.

       

      (a)  Deloitte
        & Touche LLP will review the characteristics of a sample of the Mortgage
        Loans described in the Final Mortgage Loan Schedule and will compare those
        characteristics to the description of the Mortgage Loans contained in the
        Prospectus Supplement under the captions “Summary—The Mortgage Loans” and “The
        Mortgage Pool” and in Schedule A thereto. The Mortgage Loan Seller will
        cooperate with the Purchaser in making available all information and taking
        all
        steps reasonably necessary to permit such accountants to complete the review
        and
        to deliver the letters required of them under the Underwriting Agreement.
        Deloitte & Touche LLP will also confirm certain calculations as set forth
        under the caption “Yield, Prepayment and Maturity Considerations” in the
        Prospectus Supplement.

       

      (b)  To
        the
        extent statistical information with respect to the Mortgage Loan Seller’s
        servicing portfolio is included in the Prospectus Supplement under the caption
        “Servicing of the Mortgage Loans—EMC—Delinquency and Foreclosure Experience of
        EMC,” a letter from the certified public accountant for the Mortgage Loan Seller
        will be delivered to the Purchaser dated the date of the Prospectus Supplement,
        in the form previously agreed to by the Mortgage Loan Seller and the Purchaser,
        with respect to such statistical information.

       

      SECTION
        13.  Indemnification.

       

      (a)  The
        Mortgage Loan Seller shall indemnify and hold harmless the Purchaser and
        its
        directors, officers and controlling persons (as defined in Section 15 of
        the
        Securities Act) from and against any loss, claim, damage or liability or
        action
        in respect thereof, to which they or any of them may become subject, under
        the
        Securities Act or otherwise, insofar as such loss, claim, damage, liability
        or
        action arises out of, or is based upon any untrue statement of a material
        fact
        contained in the Mortgage
        Loan Seller’s Information
        as
        identified in Exhibit
        3,
        the
        omission to state in the Term Sheet Supplement, the Prospectus Supplement
        or
        Prospectus (or any amendment thereof or supplement thereto approved by the
        Mortgage Loan Seller and in which additional Mortgage Loan Seller’s Information
        is identified), in reliance upon and in conformity with Mortgage Loan Seller’s
        Information a material fact required to be stated therein or necessary to
        make
        the statements therein in light of the circumstances in which they were made,
        not misleading; and the Mortgage Loan Seller shall reimburse the Purchaser
        and
        each other indemnified party for any legal and other expenses reasonably
        incurred by them in connection with investigating or defending or preparing
        to
        defend against any such loss, claim, damage, liability or action. 

       

      The
        foregoing indemnity agreement is in addition to any liability which the Mortgage
        Loan Seller otherwise may have to the Purchaser or any other such indemnified
        party.

       

      (b)  The
        Purchaser shall indemnify and hold harmless the Mortgage Loan Seller and
        its
        respective directors, officers and controlling persons (as defined in Section
        15
        of the Securities Act) from and against any loss, claim, damage or liability
        or
        action in respect thereof, to which they or any of them may become subject,
        under the Securities Act or otherwise, insofar as such loss, claim, damage,
        liability or action arises out of, or is based upon any untrue statement
        of a
        material fact contained in the Purchaser’s
        Information
        as
        identified in Exhibit
        4,
        the
        omission to state in the Prospectus Supplement or Prospectus (or any amendment
        thereof or supplement thereto approved by the Purchaser and in which additional
        Purchaser’s Information is identified), in reliance upon and in conformity with
        the Purchaser’s Information, a material fact required to be stated therein or
        necessary to make the statements therein in light of the circumstances in
        which
        they were made, not misleading; and the Purchaser shall reimburse the Mortgage
        Loan Seller, and each other indemnified party for any legal and other expenses
        reasonably incurred by them in connection with investigating or defending
        or
        preparing to defend any such loss, claim, damage, liability or action. The
        foregoing indemnity agreement is in addition to any liability which the
        Purchaser otherwise may have to the Mortgage Loan Seller, or any other such
        indemnified party. 

       

      (c)  Promptly
        after receipt by an indemnified party under subsection (a) or (b) above of
        notice of the commencement of any action, such indemnified party shall, if
        a
        claim in respect thereof is to be made against the indemnifying party under
        such
        subsection, notify each party against whom indemnification is to be sought
        in
        writing of the commencement thereof (but the failure so to notify an
        indemnifying party shall not relieve it from any liability which it may have
        under this Section 13 except to the extent that it has been prejudiced in
        any
        material respect by such failure or from any liability which it may have
        otherwise). In case any such action is brought against any indemnified party,
        and it notifies an indemnifying party of the commencement thereof, the
        indemnifying party will be entitled to participate therein and, to the extent
        it
        may elect by written notice delivered to the indemnified party promptly (but,
        in
        any event, within 30 days) after receiving the aforesaid notice from such
        indemnified party, to assume the defense thereof with counsel reasonably
        satisfactory to such indemnified party. Notwithstanding the foregoing, the
        indemnified party or parties shall have the right to employ its or their
        own
        counsel in any such case, but the fees and expenses of such counsel shall
        be at
        the expense of such indemnified party or parties unless (i) the employment
        of
        such counsel shall have been authorized in writing by one of the indemnifying
        parties in connection with the defense of such action, (ii) the indemnifying
        parties shall not have employed counsel to have charge of the defense of
        such
        action within a reasonable time after notice of commencement of the action,
        or
        (iii) such indemnified party or parties shall have reasonably concluded that
        there is a conflict of interest between itself or themselves and the
        indemnifying party in the conduct of the defense of any claim or that the
        interests of the indemnified party or parties are not substantially co-extensive
        with those of the indemnifying party (in which case the indemnifying parties
        shall not have the right to direct the defense of such action on behalf of
        the
        indemnified party or parties), in any of which events such fees and expenses
        shall be borne by the indemnifying parties (provided,
        however,
        that
        the indemnifying party shall be liable only for the fees and expenses of
        one
        counsel in addition to one local counsel in the jurisdiction involved. Anything
        in this subsection to the contrary notwithstanding, an indemnifying party
        shall
        not be liable for any settlement or any claim or action effected without
        its
        written consent; provided,
        however,
        that
        such consent was not unreasonably withheld. 

       

      (d)  If
        the
        indemnification provided for in paragraphs (a) and (b) of this Section 13
        shall
        for any reason be unavailable to an indemnified party in respect of any loss,
        claim, damage or liability, or any action in respect thereof, referred to
        in
        Section 13, then the indemnifying party shall in lieu of indemnifying the
        indemnified party contribute to the amount paid or payable by such indemnified
        party as a result of such loss, claim, damage or liability, or action in
        respect
        thereof, in such proportion as shall be appropriate to reflect the relative
        benefits received by the Mortgage Loan Seller on the one hand and the Purchaser
        on the other from the purchase and sale of the Mortgage Loans, the offering
        of
        the Certificates and the other transactions contemplated hereunder. No person
        found liable for a fraudulent misrepresentation shall be entitled to
        contribution from any person who is not also found liable for such fraudulent
        misrepresentation. 

       

      (e)  The
        parties hereto agree that reliance by an indemnified party on any publicly
        available information or any information or directions furnished by an
        indemnifying party shall not constitute negligence, bad faith or willful
        misconduct by such indemnified party. 

       

      SECTION
        14.  Notices.
        All
        demands, notices and communications hereunder shall be in writing but may
        be
        delivered by facsimile transmission subsequently confirmed in writing. Notices
        to the Mortgage Loan Seller shall be directed to EMC Mortgage Corporation,
        2780
        Lake Vista Drive, Lewisville, Texas 75067, (Telecopy: ((469)759-4714),
        Attention: President or General Counsel, and notices to the Purchaser shall
        be
        directed to Bear Stearns Asset Backed Securities I LLC, 383 Madison Avenue,
        New
        York, New York 10179, (Telecopy: (212-272-7206)), Attention: Chief Counsel;
        or
        to any other address as may hereafter be furnished by one party to the other
        party by like notice. Any such demand, notice or communication hereunder
        shall
        be deemed to have been received on the date received at the premises of the
        addressee (as evidenced, in the case of registered or certified mail, by
        the
        date noted on the return receipt) provided that it is received on a business
        day
        during normal business hours and, if received after normal business hours,
        then
        it shall be deemed to be received on the next business day.

       

      SECTION
        15.  Transfer
        of Mortgage Loans.
        The
        Purchaser retains the right to assign the Mortgage Loans and any or all of
        its
        interest under this Agreement to the Trustee without the consent of the Mortgage
        Loan Seller, and, upon such assignment, the Trustee shall succeed to the
        applicable rights and obligations of the Purchaser hereunder; provided,
        however,
        the
        Purchaser shall remain entitled to the benefits set forth in Sections 11,
        13 and
        17 hereto and as provided in Section 2(a). Notwithstanding the foregoing,
        the
        sole and exclusive right and remedy of the Trustee with respect to a breach
        of
        representation or warranty of the Mortgage Loan Seller shall be the cure,
        purchase or substitution obligations of the Mortgage Loan Seller contained
        in
        Sections 5 and 7 hereof.

       

      SECTION
        16.  Termination.
        This
        Agreement may be terminated (a) by the mutual consent of the parties hereto
        prior to the Closing Date, (b) by the Purchaser, if the conditions to the
        Purchaser’s obligation to close set forth under Section 10(a) hereof are not
        fulfilled as and when required to be fulfilled or (c) by the Mortgage Loan
        Seller, if the conditions to the Mortgage Loan Seller’s obligation to close set
        forth under Section 10(b) hereof are not fulfilled as and when required to
        be
        fulfilled. In the event of termination pursuant to clause (b), the Mortgage
        Loan
        Seller shall pay, and in the event of termination pursuant to clause (c),
        the
        Purchaser shall pay, all reasonable out-of-pocket expenses incurred by the
        other
        in connection with the transactions contemplated by this Agreement. In the
        event
        of a termination pursuant to clause (a), each party shall be responsible
        for its
        own expenses.

       

      SECTION
        17.  Representations,
        Warranties and Agreements to Survive Delivery.
        All
        representations, warranties and agreements contained in this Agreement, or
        contained in certificates of officers of the Mortgage Loan Seller submitted
        pursuant hereto, shall remain operative and in full force and effect and
        shall
        survive delivery of the Mortgage Loans to the Purchaser (and by the Purchaser
        to
        the Trustee). Subsequent to the delivery of the Mortgage Loans to the Purchaser,
        the Mortgage Loan Seller’s representations and warranties contained herein with
        respect to the Mortgage Loans shall be deemed to relate to the Mortgage Loans
        actually delivered to the Purchaser and included in the Final Mortgage Loan
        Schedule and any Replacement Mortgage Loan and not to those Mortgage Loans
        deleted from the Preliminary Mortgage Loan Schedule pursuant to Section 3
        hereof
        prior to the Closing.

       

      SECTION
        18.  Severability.
        If any
        provision of this Agreement shall be prohibited or invalid under applicable
        law,
        this Agreement shall be ineffective only to such extent, without invalidating
        the remainder of this Agreement.

       

      SECTION
        19.  Counterparts.
        This
        Agreement may be executed in counterparts, each of which will be an original,
        but which together shall constitute one and the same agreement.

       

      SECTION
        20.  Amendment.
        This
        Agreement cannot be amended or modified in any manner without the prior written
        consent of each party.

       

      SECTION
        21.  GOVERNING
        LAW.
        THIS
        AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
        OF
        THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF
        OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

       

      SECTION
        22.  Further
        Assurances.
        Each of
        the parties agrees to execute and deliver such instruments and take such
        actions
        as another party may, from time to time, reasonably request in order to
        effectuate the purpose and to carry out the terms of this Agreement including
        any amendments hereto which may be required by either Rating
        Agency.

       

      SECTION
        23.  Successors
        and Assigns.

       

      (a)  This
        Agreement shall bind and inure to the benefit of and be enforceable by the
        Mortgage Loan Seller and the Purchaser and their permitted successors and
        assigns and, to the extent specified in Section 13 hereof, Bear Stearns,
        and
        their directors, officers and controlling persons (within the meaning of
        federal
        securities laws). The Mortgage Loan Seller acknowledges and agrees that the
        Purchaser may assign its rights under this Agreement (including, without
        limitation, with respect to the Mortgage Loan Seller’s representations and
        warranties respecting the Mortgage Loans) to the Trustee. Any person into
        which
        the Mortgage Loan Seller may be merged or consolidated (or any person resulting
        from any merger or consolidation involving the Mortgage Loan Seller), any
        person
        resulting from a change in form of the Mortgage Loan Seller or any person
        succeeding to the business of the Mortgage Loan Seller, shall be considered
        the
“successor” of the Mortgage Loan Seller hereunder and shall be considered a
        party hereto without the execution or filing of any paper or any further
        act or
        consent on the part of any party hereto. Except as provided in the two preceding
        sentences, this Agreement cannot be assigned, pledged or hypothecated by
        either
        party hereto without the written consent of the other parties to this Agreement
        and any such assignment or purported assignment shall be deemed null and
        void.

       

      SECTION
        24.  The
        Mortgage Loan Seller.
        The
        Mortgage Loan Seller will keep in full force and effect its existence, all
        rights and franchises as a corporation under the laws of the State of its
        incorporation and will obtain and preserve its qualification to do business
        as a
        foreign corporation in each jurisdiction in which such qualification is
        necessary to perform its obligations under this Agreement.

       

      SECTION
        25.  Entire
        Agreement.
        This
        Agreement contains the entire agreement and understanding between the parties
        with respect to the subject matter hereof, and supersedes all prior and
        contemporaneous agreements, understandings, inducements and conditions, express
        or implied, oral or written, of any nature whatsoever with respect to the
        subject matter hereof.

       

      SECTION
        26.  No
        Partnership.
        Nothing
        herein contained shall be deemed or construed to create a partnership or
        joint
        venture between the parties hereto.

       

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK]

      

      

       

      

        
           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

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

       

      
        	
                EMC
                  MORTGAGE CORPORATION

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 
	 
	 
	
                BEAR
                  STEARNS ASSET BACKED

                SECURITIES
                  I LLC

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        1

      CONTENTS
        OF MORTGAGE FILE

       

      With
        respect to each Mortgage Loan, the Mortgage File shall include each of the
        following items, which shall be available for inspection by the Purchaser
        or its
        designee, and which shall be delivered to the Purchaser or its designee pursuant
        to the terms of this Agreement.

       

      (i)  The
        original Mortgage Note, including any riders thereto, endorsed without recourse
        to the order of “U.S. Bank National Association”, as Trustee for
        certificateholders of Bear Stearns Asset Backed Securities I LLC Asset-Backed
        Certificates, Series 2006-AC5,” or to blank and showing to the extent available
        to the Mortgage Loan Seller an unbroken chain of endorsements from the original
        payee thereof to the Person endorsing it to the Trustee;

       

      (ii)  the
        original Mortgage and, if the related Mortgage Loan is a MOM Loan, noting
        the
        presence of the MIN and language indicating that such Mortgage Loan is a
        MOM
        Loan, which shall have been recorded (or, for Mortgage Loans other than the
        EMC
        Flow Loans, if the original is not available, a copy), with evidence of such
        recording indicated thereon (or if clause (x) in the proviso below applies,
        shall be in recordable form);

       

      (iii)  unless
        the Mortgage Loan is a MOM Loan, the assignment (either an original or a
        copy,
        which may be in the form of a blanket assignment if permitted in the
        jurisdiction in which the Mortgaged Property is located) to the Trustee of
        the
        Mortgage with respect to each Mortgage Loan in the name of “U.S. Bank National
        Association”, as Trustee for certificateholders of Bear Stearns Asset Backed
        Securities I LLC Asset-Backed Certificates, Series 2006-AC5,” which shall have
        been recorded (or if clause (x) in the proviso below applies, shall be in
        recordable form);

       

      (iv)  an
        original or a copy of all intervening assignments of the Mortgage, if any,
        to
        the extent available to the Mortgage Loan Seller, with evidence of recording
        thereon;

       

      (v)  the
        original policy of title insurance or mortgagee’s certificate of title insurance
        or commitment or binder for title insurance, if available, or a copy thereof,
        or, in the event that such original title insurance policy is unavailable,
        a
        photocopy thereof, or in lieu thereof, a current lien search on the related
        Mortgaged Property and

       

      (vi)  originals
        or copies of all available assumption, modification or substitution agreements,
        if any.

       

      Provided,
        however, that in lieu of the foregoing, the Mortgage Loan Seller may deliver
        the
        following documents, under the circumstances set forth below: (x) if any
        Mortgage, assignment thereof to the Trustee or intervening assignments thereof
        have been delivered or are being delivered to recording offices for recording
        and have not been returned in time to permit their delivery as specified
        above,
        the Purchaser may deliver a true copy thereof with a certification by the
        Mortgage Loan Seller or the title company issuing the commitment for title
        insurance, on the face of such copy, substantially as follows: “Certified to be
        a true and correct copy of the original, which has been transmitted for
        recording”; and (y) in lieu of the Mortgage Notes relating to the Mortgage Loans
        identified in the list set forth in Exhibit I to the Pooling and Servicing
        Agreement, the Purchaser may deliver a lost note affidavit and indemnity
        and a
        copy of the original note, if available; and provided, further, however,
        that in
        the case of Mortgage Loans which have been prepaid in full after the Cut-off
        Date and prior to the Closing Date, the Purchaser, in lieu of delivering
        the
        above documents, may deliver to the Trustee and its Custodian a certification
        of
        a Servicing Officer to such effect and in such case shall deposit all amounts
        paid in respect of such Mortgage Loans, in the Master Servicer Collection
        Account or in the Distribution Account on the Closing Date. In the case of
        the
        documents referred to in clause (x) above, the Purchaser shall deliver such
        documents to the Trustee or its Custodian promptly after they are received.
        The
        Mortgage Loan Seller shall cause, at its expense, the Mortgage and intervening
        assignments, if any, and to the extent required in accordance with the
        foregoing, the assignment of the Mortgage to the Trustee to be submitted
        for
        recording promptly after the Closing Date; provided that the Mortgage Loan
        Seller need not cause to be recorded any assignment (a) in any jurisdiction
        under the laws of which, as evidenced by an Opinion of Counsel addressed
        to the
        Trustee delivered by the Mortgage Loan Seller to the Trustee and the Rating
        Agencies, the recordation of such assignment is not necessary to protect
        the
        Trustee’s interest in the related Mortgage Loan or (b) if MERS is identified on
        the Mortgage or on a properly recorded assignment of the Mortgage as mortgagee
        of record solely as nominee for Mortgage Loan Seller and its successors and
        assigns. In the event that the Mortgage Loan Seller, the Purchaser or the
        Master
        Servicer gives written notice to the Trustee that a court has recharacterized
        the sale of the Mortgage Loans as a financing, the Mortgage Loan Seller shall
        submit or cause to be submitted for recording as specified above or, should
        the
        Mortgage Loan Seller fail to perform such obligations, the Master Servicer
        shall
        cause each such previously unrecorded assignment to be submitted for recording
        as specified above at the expense of the Trust. In the event a Mortgage File
        is
        released to the Company or the related Servicer as a result of such Person
        having completed a Request for Release, the Custodian shall, if not so
        completed, complete the assignment of the related Mortgage in the manner
        specified in clause (iii) above.

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        2

       

      MORTGAGE
        LOAN SCHEDULE INFORMATION

       

      The
        Preliminary and Final Mortgage Loan Schedules shall set forth the following
        information with respect to each Mortgage Loan:

       

      (a)  the
        city,
        state and zip code of the Mortgaged Property; 

      (b)  the
        property type;

      (c)  the
        Mortgage Interest Rate;

      (d)  the
        Servicing Fee Rate;

      (e)  the
        Master Servicer’s Fee Rate;

      (f)  the
        LPMI
        Fee, if applicable;

      (g)  the
        Trustee Fee Rate, if applicable;

      (h)  the
        Net
        Rate;

      (i)  the
        maturity date;

      (j)  the
        stated original term to maturity;

      (k)  the
        stated remaining term to maturity;

      (l)  the
        original Principal Balance;

      (m)  the
        first
        payment date;

      (n)  the
        principal and interest payment in effect as of the Cut-off Date;

      (o)  the
        unpaid Principal Balance as of the Cut-off Date;

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

      (q)  the
        insurer of any Primary Mortgage Insurance Policy;

      (r)  the
        MIN
        with respect to each MOM Loan;

      (s)  the
        Gross
        Margin, if applicable;

      (t)  the
        next
        Adjustment Date, if applicable;

      (u)  the
        Maximum Lifetime Mortgage Rate, if applicable;

      (v)  the
        Minimum Lifetime Mortgage Rate, if applicable;

      (w)  the
        Periodic Rate Cap, if applicable; 

      (x)  the
        Loan
        Group, if applicable;

      (y)  a
        code
        indicating whether the Mortgage Loan is negatively amortizing;

      (z)    
         which
        Mortgage Loans adjust after an initial fixed-rate period of one, two, three,
        five, seven or ten years or any other period; 

      (aa)  the
        Prepayment Charge, if any;

      (bb)  lien
        position (e.g., first lien or second lien);

      (cc)  a
        code
        indicating whether the Mortgage Loan is has a balloon payment;

      (dd)  a
        code
        indicating whether the Mortgage Loan is an interest-only loan; 

      (ee)  the
        interest-only term, if applicable;

      (ff)  the
        Mortgage Loan Seller; and

      (gg)  the
        original amortization term.

      

      Such
        schedule also shall set forth for all of the Mortgage Loans, the total number
        of
        Mortgage Loans, the total of each of the amounts described under (n) and
        (j)
        above, the weighted average by principal balance as of the Cut-off Date of
        each
        of the rates described under (c) through (h) above, and the weighted average
        remaining term to maturity by unpaid principal balance as of the Cut-off
        Date.

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        3

      MORTGAGE
        LOAN SELLER’S INFORMATION

       

      All
        information in the Prospectus Supplement described under the following captions:
        “SUMMARY - The Mortgage Loans,” “THE MORTGAGE POOL,” “THE SPONSOR” and “SCHEDULE
        A - Mortgage Loan Statistical Data.”

       

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        4

      PURCHASER’S
        INFORMATION

       

      All
        information in the Prospectus Supplement and the Prospectus, except the Mortgage
        Loan Seller’s Information.

       

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        5

      SCHEDULE
        OF LOST NOTES

       

      Available
        Upon Request

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        6

       

      REVISED
        April 18, 2006

      

      APPENDIX
        E - Standard & Poor’s Predatory Lending Categories

       

      Standard
        & Poor’s has categorized loans governed by anti-predatory lending laws in
        the Jurisdictions listed below into three categories based upon a combination
        of
        factors that include (a) the risk exposure associated with the assignee
        liability and (b) the tests and thresholds set forth in those laws. Note
        that
        certain loans classified by the relevant statute as Covered are included
        in
        Standard & Poor’s High Cost Loan Category because they included thresholds
        and tests that are typical of what is generally considered High Cost by the
        industry.

       

      Standard
        & Poor’s High Cost Loan Categorization

       

      
        	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending

                Law/Effective
                  Date

              	
                Category
                  under

                Applicable
                  Anti- 

                Predatory
                  Lending Law

              
	
                Arkansas

              	
                Arkansas
                  Home Loan Protection Act,

                Ark.
                  Code Ann. §§ 23-53-101 et
                  seq.

                 

                Effective
                  July 16, 2003

              	
                High
                  Cost Home Loan

              
	
                Cleveland
                  Heights, OH

              	
                Ordinance
                  No. 72-2003 (PSH), Mun.

                Code
                  §§ 757.01 et
                  seq.

                 

                Effective
                  June 2, 2003

              	
                Covered
                  Loan

              
	
                Colorado

              	
                Consumer
                  Equity Protection, Colo. Stat.

                Ann.
                  §§ 5-3.5-101 et
                  seq.

                 

                Effective
                  for covered loans offered or entered into on or after January 1,
                  2003.
                  Other provisions of the Act took effect on June 7, 2002

              	
                Covered
                  Loan

              
	
                Connecticut

              	
                Connecticut
                  Abusive Home Loan

                Lending
                  Practices Act, Conn. Gen. Stat.

                §§
                  36a-746 et
                  seq.

                 

                Effective
                  October 1, 2001

              	
                High
                  Cost Home Loan

              
	
                District
                  of Columbia

              	
                Home
                  Loan Protection Act, D.C. Code

                §§
                  26-1151.01 et
                  seq.

                 

                Effective
                  for loans closed on or after January 28, 2003

              	
                Covered
                  Loan

              
	
                Florida

              	
                Fair
                  Lending Act, Fla. Stat. Ann. §§

                494.0078
                  et
                  seq.

                Effective
                  October 2, 2002

              	
                High
                  Cost Home Loan

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending

                Law/Effective
                  Date

              	
                Category
                  under

                Applicable
                  Anti- 

                Predatory
                  Lending Law

              
	
                Georgia
                  (Oct. 1, 2002 -

                Mar.
                  6, 2003)

              	
                Georgia
                  Fair Lending Act, Ga. Code

                Ann.
                  §§ 7-6A-1 et
                  seq.

                 

                Effective
                  October 1, 2002 - March 6 2003

              	
                High
                  Cost Home Loan

              
	
                Georgia
                  as amended

                (Mar.
                  7, 2003 - current)

              	
                Georgia
                  Fair Lending Act, Ga. Code

                Ann.
                  §§ 7-6A-1 et
                  seq.

                 

                Effective
                  for loans closed on or after

                March
                  7, 2003

              	
                High
                  Cost Home Loan

              
	
                HOEPA
                  Section 32

              	
                Home
                  Ownership and Equity Protection

                Act
                  of 1994, 15 U.S.C. § 1639, 12

                C.F.R.
                  §§ 226.32 and 226.34

                 

                Effective
                  October 1, 1995, amendments

                October
                  1, 2002

              	
                High
                  Cost Loan

              
	
                Illinois

              	
                High
                  Risk Home Loan Act, Ill. Comp.

                Stat.
                  tit. 815, §§ 137/5 et
                  seq.

                 

                Effective
                  January 1, 2004 (prior to this date, regulations under
                  Residential

                Mortgage
                  License Act effective from May 14, 2001)

              	
                High
                  Risk Home Loan

              
	
                Kansas

              	
                Consumer
                  Credit Code, Kan. Stat. Ann.

                §§
                  16a-1-101 et
                  seq.

                 

                Sections
                  16a-1-301 and 16a-3-207 became effective April 14, 1999;

                Section
                  16a-3-308a became effective July 1, 1999

              	
                High
                  Loan to Value Consumer Loan (id.
§
                  16a-3-207) and;

              
	
                High
                  APR Consumer Loan (id.
§
                  16a-3-308a)

              
	
                Kentucky

              	
                2003
                  KY H.B. 287 - High Cost Home

                Loan
                  Act, Ky. Rev. Stat. §§ 360.100 et seq.

                 

                Effective
                  June 24, 2003

              	
                High
                  Cost Home Loan

              
	
                Maine

              	
                Truth
                  in Lending, Me. Rev. Stat. tit. 9-

                A,
                  §§ 8-101 et
                  seq.

                 

                Effective
                  September 29, 1995 and as amended from time to time

              	
                High
                  Rate High Fee Mortgage

              
	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending

                Law/Effective
                  Date

              	
                Category
                  under

                Applicable
                  Anti- 

                Predatory
                  Lending Law

              
	
                Massachusetts

              	
                Part
                  40 and Part 32, 209 C.M.R. §§

                32.00
                  et
                  seq.
                  and 209 C.M.R. §§ 40.01 et
                  seq.

                 

                Effective
                  March 22, 2001 and amended from time to time

              	
                High
                  Cost Home Loan

              
	
                Nevada

              	
                Assembly
                  Bill No. 284, Nev. Rev. Stat.

                §§
                  598D.010 et
                  seq.

                 

                Effective
                  October 1, 2003

              	
                Home
                  Loan

              
	
                New
                  Jersey

              	
                New
                  Jersey Home Ownership Security

                Act
                  of 2002, N.J. Rev. Stat. §§ 46:10B- 22 et
                  seq.

                 

                Effective
                  for loans closed on or after November 27, 2003

              	
                High
                  Cost Home Loan

              
	
                New
                  Mexico

              	
                Home
                  Loan Protection Act, N.M. Rev.

                Stat.
                  §§ 58-21A-1 et
                  seq.

                 

                Effective
                  as of January 1, 2004; Revised

                as
                  of February 26, 2004

              	
                High
                  Cost Home Loan

              
	
                New
                  York

              	
                N.Y.
                  Banking Law Article 6-1

                 

                Effective
                  for applications made on or after April 1, 2003

              	
                High
                  Cost Home Loan

              
	
                North
                  Carolina

              	
                Restrictions
                  and Limitations on High

                Cost
                  Home Loans, N.C. Gen. Stat. §§ 24-1.1E et
                  seq.

                 

                Effective
                  July 1, 2000; amended October 1, 2003 (adding open-end lines of
                  credit)

              	
                High
                  Cost Home Loan

              
	
                Ohio

              	
                H.B.
                  386 (codified in various sections of the Ohio Code), Ohio Rev.
                  Code Ann.
                  §§ 1349.25 et
                  seq.

                 

                Effective
                  May 24, 2002

              	
                Covered
                  Loan

              
	
                Oklahoma

              	
                Consumer
                  Credit Code (codified in various sections of Title 14A)

                 

                Effective
                  July 1, 2000; amended effective January 1, 2004

                 

                 

                 

              	
                Subsection
                  10 Mortgage

              
	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending

                Law/Effective
                  Date

              	
                Category
                  under

                Applicable
                  Anti- 

                Predatory
                  Lending Law

              
	
                South
                  Carolina

              	
                South
                  Carolina High Cost and

                Consumer
                  Home Loans Act, S.C. Code

                Ann.
                  §§ 37-23-10 et
                  seq.

                 

                Effective
                  for loans taken on or after January 1, 2004

              	
                High
                  Cost Home Loan

              
	
                West
                  Virginia

              	
                West
                  Virginia Residential Mortgage Lender, Broker and Servicer Act,
                  W.

                Va.
                  Code Ann. §§ 31-17-1 et
                  seq.

                 

                Effective
                  June 5, 2002

              	
                West
                  Virginia Mortgage Loan Act Loan

              

      

      

      Standard
        & Poor’s Covered Loan Categorization

       

      
        	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending

                Law/Effective
                  Date

              	
                Category
                  under

                Applicable
                  Anti- 

                Predatory
                  Lending Law

              
	
                Georgia
                  (Oct. 1, 2002 -

                Mar.
                  6, 2003)

              	
                Georgia
                  Fair Lending Act, Ga. Code

                Ann.
                  §§ 7-6A-1 et
                  seq.

                 

                Effective
                  October 1, 2002 - March 6, 2003

              	
                Covered
                  Loan

              
	
                New
                  Jersey

              	
                New
                  Jersey Home Ownership Security

                Act
                  of 2002, N.J. Rev. Stat. §§ 46:10B 22 et
                  seq.

                 

                Effective
                  November 27, 2003 - July 5, 2004

              	
                Covered
                  Home Loan

              

      

      

      Standard
        & Poor’s Home Loan Categorization

       

      
        	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending

                Law/Effective
                  Date

              	
                Category
                  under

                Applicable
                  Anti- 

                Predatory
                  Lending Law

              
	
                Georgia
                  (Oct. 1, 2002 -

                Mar.
                  6, 2003)

              	
                Georgia
                  Fair Lending Act, Ga. Code

                Ann.
                  §§ 7-6A-1 et
                  seq.

                 

                Effective
                  October 1, 2002 - March 6, 2003

              	
                Home
                  Loan

              
	
                New
                  Jersey

              	
                New
                  Jersey Home Ownership Security

                Act
                  of 2002, N.J. Rev. Stat. §§ 46:10B- 22 et
                  seq.

                 

                Effective
                  for loans closed on or after November 27, 2003

              	
                Home
                  Loan

              
	
                New
                  Mexico

              	
                Home
                  Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et
                  seq.

                 

                Effective
                  as of January 1, 2004; Revised as of February 26, 2004

              	
                Home
                  Loan

              
	
                North
                  Carolina

              	
                Restrictions
                  and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§

                24-1.1E
                  et
                  seq.

                 

                Effective
                  July 1, 2000; amended October 1, 2003 (adding open-end lines of
                  credit)

              	
                Consumer
                  Home Loan

              
	
                South
                  Carolina

              	
                South
                  Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann.
§§ 37-23-10
                  et
                  seq.

                 

                Effective
                  for loans taken on or after January 1, 2004

              	
                Consumer
                  Home Loan 

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SCHEDULE
        A

      

      REQUIRED
        RATINGS FOR EACH CLASS OF CERTIFICATES

       

      Public
        Certificates

      

      
        	
                Class

              	
                Moody’s

              	
                S&P

              
	
                A-1

              	
                Aaa
                  

              	
                AAA

              
	
                A-2

              	
                Aaa
                  

              	
                AAA

              
	
                A-3

              	
                Aa1
                  

              	
                AAA

              
	
                M-1

              	
                Aa2
                  

              	
                AA

              
	
                M-2

              	
                A1
                  

              	
                A+

              
	
                M-3

              	
                A2
                  

              	
                A

              
	
                M-4

              	
                A3

              	
                A-

              
	
                B-1

              	
                Baa1

              	
                BBB+

              
	
                B-2

              	
                Baa2

              	
                BBB

              
	
                B-3

              	
                Baa3

              	
                BBB-

              
	 	 	 

      

      None
        of
        the above ratings has been lowered, qualified or withdrawn since the dates
        of
        issuance of such ratings by the Rating Agencies.

       

      Private
        Certificates

      

      
        	
                Class

              	
                S&P

              	
                Moody’s

              
	
                B-4

              	
                [Ba2]

              	
                [BB]

              
	
                C

              	
                Not
                  Rated

              	
                Not
                  Rated

              
	
                P

              	
                Not
                  Rated

              	
                Not
                  Rated

              
	
                R-1

              	
                Not
                  Rated

              	
                Not
                  Rated

              
	
                R-2

              	
                Not
                  Rated

              	
                Not
                  Rated

              
	
                R-3

              	
                Not
                  Rated

              	
                Not
                  Rated

              
	
                RX

              	
                Not
                  Rated

              	
                Not
                  Rated

              

      

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        M

      

      [Reserved]

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        N

      

      SERVICING
        CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

       

      Definitions

      Primary
        Servicer - transaction party having borrower contact

      Master
        Servicer - aggregator of pool assets

      Securities
        Administrator - waterfall calculator

      Back-up
        Servicer - named in the transaction (in the event a Back up Servicer becomes
        the
        Primary Servicer, follow Primary Servicer obligations)

      Custodian
        - safe keeper of pool assets

      Trustee
        -
        fiduciary of the transaction

      

      Note:
        The
        definitions above describe the essential function that the party performs,
        rather than the party’s title. So, for example, in a particular transaction, the
        trustee may perform the “paying agent” and “securities administrator” functions,
        while in another transaction, the securities administrator may perform these
        functions.

      

      Where
        there are multiple checks for criteria the attesting party will identify
        in
        their management assertion that they are attesting only to the portion of
        the
        distribution chain they are responsible for in the related transaction
        agreements.

      

      Key:       
         X
        - obligation

      [X]
        - under consideration for obligation

       

      

        
          	
                  Reg
                    AB Reference

                	
                  Servicing
                    Criteria

                	
                  Primary
                    Servicer

                	
                  Master
                    Servicer

                	
                  Securities
                    Admin

                	
                  Custodian

                	
                  Trustee
                    (nominal)

                
	 	
                  General
                    Servicing Considerations

                	 	 	 	 	 
	
                  1122(d)(1)(i)

                	
                  Policies
                    and procedures are instituted to monitor any performance or other
                    triggers
                    and events of default in accordance with the transaction
                    agreements.

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(1)(ii)

                	
                  If
                    any material servicing activities are outsourced to third parties,
                    policies and procedures are instituted to monitor the third party’s
                    performance and compliance with such servicing activities.

                	
                  X

                	
                  X

                	 	 	 
	
                  1122(d)(1)(iii)

                	
                  Any
                    requirements in the transaction agreements to maintain a back-up
                    servicer
                    for the Pool Assets are maintained. 

                	 	 	 	 	 
	
                  1122(d)(1)(iv)

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

                	
                  X

                	
                  X

                	 	 	 
	 	
                  Cash
                    Collection and Administration

                	 	 	 	 	 
	
                  1122(d)(2)(i)

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

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(2)(ii)

                	
                  Disbursements
                    made via wire transfer on behalf of an obligor or to an investor
                    are made
                    only by authorized personnel. 

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(2)(iii)

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

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(2)(iv)

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

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(2)(v)

                	
                  Each
                    custodial account is maintained at a federally insured depository
                    institution as set forth in the transaction agreements. For purposes
                    of
                    this criterion, “federally insured depository institution” with respect to
                    a foreign financial institution means a foreign financial institution
                    that
                    meets the requirements of Rule 13k-1(b)(1) of the Securities
                    Exchange Act.
                    

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(2)(vi)

                	
                  Unissued
                    checks are safeguarded so as to prevent unauthorized access.
                    

                	
                  X

                	 	
                  X

                	 	 
	
                  1122(d)(2)(vii)
                    

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

                	
                  X

                	
                  X

                	
                  X

                	 	 
	 	
                  Investor
                    Remittances and Reporting

                	 	 	 	 	 
	
                  1122(d)(3)(i)

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

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(3)(ii)

                	
                  Amounts
                    due to investors are allocated and remitted in accordance with
                    timeframes,
                    distribution priority and other terms set forth in the transaction
                    agreements. 

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(3)(iii)

                	
                  Disbursements
                    made to an investor are posted within two business days to the
                    Servicer’s
                    investor records, or such other number of days specified in the
                    transaction agreements. 

                	
                  X

                	
                  X

                	
                  X

                	 	 
	
                  1122(d)(3)(iv)

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

                	
                  X

                	
                  X

                	
                  X

                	 	 
	 	
                  Pool
                    Asset Administration

                	 	 	 	 	 
	
                  1122(d)(4)(i)
                    

                	
                  Collateral
                    or security on pool assets is maintained as required by the transaction
                    agreements or related pool asset documents. 

                	
                  X

                	 	 	
                  X

                	 
	
                  1122(d)(4)(ii)

                	
                  Pool
                    assets and related documents are safeguarded as required by the
                    transaction agreements 

                	
                  X

                	 	 	
                  X

                	 
	
                  1122(d)(4)(iii)

                	
                  Any
                    additions, removals or substitutions to the asset pool are made,
                    reviewed
                    and approved in accordance with any conditions or requirements
                    in the
                    transaction agreements. 

                	
                  X

                	 	
                  X

                	 	 
	
                  1122(d)(4)(iv)

                	
                  Payments
                    on pool assets, including any payoffs, made in accordance with
                    the related
                    pool asset documents are posted to the Servicer’s obligor records
                    maintained no more than two business days after receipt, or such
                    other
                    number of days specified in the transaction agreements, and allocated
                    to
                    principal, interest or other items (e.g., escrow) in accordance
                    with the
                    related pool asset documents. 

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(v)

                	
                  The
                    Servicer’s records regarding the pool assets agree with the Servicer’s
                    records with respect to an obligor’s unpaid principal balance.
                    

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(vi)

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

                	
                  X

                	
                  X

                	 	 	 
	
                  1122(d)(4)(vii)

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

                	
                  X

                	
                  X

                	 	 	 
	
                  1122(d)(4)(viii)

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

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(ix)

                	
                  Adjustments
                    to interest rates or rates of return for pool assets with variable
                    rates
                    are computed based on the related pool asset documents. 

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(x)

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

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(xi)

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

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(xii)

                	
                  Any
                    late payment penalties in connection with any payment to be made
                    on behalf
                    of an obligor are paid from the Servicer’s funds and not charged to the
                    obligor, unless the late payment was due to the obligor’s error or
                    omission. 

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(xiii)

                	
                  Disbursements
                    made on behalf of an obligor are posted within two business days
                    to the
                    obligor’s records maintained by the servicer, or such other number of
                    days
                    specified in the transaction agreements. 

                	
                  X

                	 	 	 	 
	
                  1122(d)(4)(xiv)
                    

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

                	
                  X

                	
                  X

                	 	 	 
	
                  1122(d)(4)(xv)

                	
                  Any
                    external enhancement or other support, identified in Item 1114(a)(1)
                    through (3) or Item 1115 of Regulation AB, is maintained as set
                    forth in
                    the transaction agreements. (In this transaction there is no
                    external
                    enhancement or other support.)

                	
                  X

                	 	
                  X

                	 	 

        

      

      

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        O

      

      FORM
        10-D, FORM 8-K AND FORM 10-K

      REPORTING
        RESPONSIBILITY

      

      As
        to
        each item described below, the entity indicated as the Responsible Party
        shall
        be primarily responsible for reporting the information to the party identified
        as responsible for preparing the Securities Exchange Act Reports pursuant
        to
        Section 4.18 of the Pooling and Servicing Agreement.

      

      Under
        Item 1 of Form 10-D: a) items marked “Monthly Statements to Certificateholders”
are required to be included in the periodic Distribution Date statement under
        Section 6.06, provided by the Securities Administrator based on information
        received from the party providing such information; and b) items marked “Form
        10-D report” are required to be in the Form 10-D report but not the Monthly
        Statements to Certificateholders, provided by the party indicated. Information
        under all other Items of Form 10-D is to be included in the Form 10-D report.
        All such information and any other Items on Form 8-K and Form 10-D set forth
        in
        this Exhibit shall be sent to the Securities Administrator and the
        Depositor.

      

      

        
          	
                  Form

                	
                  Item

                	
                  Description

                	
                  Servicers

                	
                  Master
                    Servicer

                	
                  Securities
                    Administrator

                	
                  Custodian

                	
                  Trustee

                  (nominal)

                	
                  Depositor

                	
                  Sponsor

                
	
                  10-D

                	
                  Must
                    be filed within 15 days of the distribution date for the asset-backed
                    securities.

                	 	 	 	 
	
                  1

                	
                  Distribution
                    and Pool Performance Information

                	 	 	 	 	 	 	 
	
                  Item
                    1121(a) - Distribution and Pool Performance
                    Information

                	 	 	 	 	 	 	 
	
                  (1)
                    Any applicable record dates, accrual dates, determination dates
                    for
                    calculating distributions and actual distribution dates for the
                    distribution period.

                	 	 	
                  X

                   

                  (Monthly
                    Statements to Certificateholders)

                	 	 	 	 
	
                  (2)
                    Cash flows received and the sources thereof for distributions,
                    fees and
                    expenses.

                	 	 	
                  X

                   

                  (Monthly
                    Statements to Certificateholders)

                	 	 	 	 
	
                  (3)
                    Calculated amounts and distribution of the flow of funds for
                    the period
                    itemized by type and priority of payment, including:

                	 	 	
                  X

                   

                  (Monthly
                    Statements to Certificateholders)

                	 	 	 	 
	
                  (i)
                    Fees or expenses accrued and paid, with an identification of
                    the general
                    purpose of such fees and the party receiving such fees or
                    expenses.

                	 	 	
                  X

                   

                  (Monthly
                    Statements to Certificateholders)

                	 	 	 	 
	
                  (ii)
                    Payments accrued or paid with respect to enhancement or other
                    support
                    identified in Item 1114 of Regulation AB (such as insurance premiums
                    or
                    other enhancement maintenance fees), with an identification of
                    the general
                    purpose of such payments and the party receiving such
                    payments.

                	 	 	
                  X

                   

                  (Monthly
                    Statements to Certificateholders)

                	 	 	 	 
	
                  (iii)
                    Principal, interest and other distributions accrued and paid
                    on the
                    asset-backed securities by type and by class or series and any
                    principal
                    or interest shortfalls or carryovers.

                	 	 	
                  X

                   

                  (Monthly
                    Statements to Certificateholders)

                	 	 	 	 
	
                  (iv)
                    The amount of excess cash flow or excess spread and the disposition
                    of
                    excess cash flow.

                	 	 	
                  X

                   

                  (Monthly
                    Statements to Certificateholders)

                	 	 	 	 
	
                  (4)
                    Beginning and ending principal balances of the asset-backed
                    securities.

                	 	 	
                  X

                   

                  (Monthly
                    Statements to Certificateholders)

                	 	 	 	 
	
                  (5)
                    Interest rates applicable to the pool assets and the asset-backed
                    securities, as applicable. Consider providing interest rate information
                    for pool assets in appropriate distributional groups or incremental
                    ranges.

                	 	 	
                  X

                   

                  (Monthly
                    Statements to Certificateholders)

                	 	 	 	 
	
                  (6)
                    Beginning and ending balances of transaction accounts, such as
                    reserve
                    accounts, and material account activity during the period.

                	 	 	
                  X

                   

                  (Monthly
                    Statements to Certificateholders)

                	 	 	 	 
	
                  (7)
                    Any amounts drawn on any credit enhancement or other support
                    identified in
                    Item 1114 of Regulation AB, as applicable, and the amount of
                    coverage
                    remaining under any such enhancement, if known and
                    applicable.

                	 	 	
                  X

                   

                  (Monthly
                    Statements to Certificateholders)

                	 	 	 	 
	
                  (8)
                    Number and amount of pool assets at the beginning and ending
                    of each
                    period, and updated pool composition information, such as weighted
                    average
                    coupon, weighted average remaining term, pool factors and prepayment
                    amounts.

                	 	 	
                  X

                   

                  (Monthly
                    Statements to Certificateholders)

                	 	 	
                  Updated
                    pool composition information fields to be as specified by Depositor
                    from
                    time to time

                	 
	
                  (9)
                    Delinquency and loss information for the period.

                	
                  X

                	
                  X

                	
                  X

                   

                  (Monthly
                    Statements to Certificateholders)

                	 	 	 	 
	
                  In
                    addition, describe any material changes to the information specified
                    in
                    Item 1100(b)(5) of Regulation AB regarding the pool assets.
                    (methodology)

                	
                  X

                	 	 	 	 	 	 
	
                  (10)
                    Information on the amount, terms and general purpose of any advances
                    made
                    or reimbursed during the period, including the general use of
                    funds
                    advanced and the general source of funds for
                    reimbursements.

                	
                  X

                	
                  X

                	
                  X

                   

                  (Monthly
                    Statements to Certificateholders)

                	 	 	 	 
	
                  (11)
                    Any material modifications, extensions or waivers to pool asset
                    terms,
                    fees, penalties or payments during the distribution period or
                    that have
                    cumulatively become material over time.

                	
                  X

                	
                  X

                	
                  X

                   

                  (Monthly
                    Statements to Certificateholders)

                	 	 	 	 
	
                  (12)
                    Material breaches of pool asset representations or warranties
                    or
                    transaction covenants.

                	
                  X

                	
                  X

                	
                  X

                   

                  (if
                    agreed upon by the parties)

                	 	 	
                  X

                	 
	
                  (13)
                    Information on ratio, coverage or other tests used for determining
                    any
                    early amortization, liquidation or other performance trigger
                    and whether
                    the trigger was met.

                	 	 	
                  X

                   

                  (Monthly
                    Statements to Certificateholders)

                	 	 	 	 
	
                  (14)
                    Information regarding any new issuance of asset-backed securities
                    backed
                    by the same asset pool, 

                	 	 	 	 	 	
                  X

                	 
	
                  information
                    regarding any pool asset changes (other than in connection with
                    a pool
                    asset converting into cash in accordance with its terms), such
                    as
                    additions or removals in connection with a prefunding or revolving
                    period
                    and pool asset substitutions and repurchases (and purchase rates,
                    if
                    applicable), and cash flows available for future purchases, such
                    as the
                    balances of any prefunding or revolving accounts, if
                    applicable.

                	
                  X

                	
                  X

                	
                  X

                	 	 	
                  X

                	 
	
                  Disclose
                    any material changes in the solicitation, credit-granting, underwriting,
                    origination, acquisition or pool selection criteria or procedures,
                    as
                    applicable, used to originate, acquire or select the new pool
                    assets.

                	 	 	 	 	 	
                  X

                	
                  X

                
	
                  Item
                    1121(b) - Pre-Funding or Revolving Period Information

                   

                  Updated
                    pool information as required under Item 1121(b).

                	 	 	 	 	 	
                  X

                	 
	
                  2

                	
                  Legal
                    Proceedings

                	 	 	 	 	 	 	 
	
                  Item
                    1117 - Legal proceedings pending against the following entities,
                    or their
                    respective property, that is material to Certificateholders,
                    including
                    proceedings known to be contemplated by governmental
                    authorities:

                	 	 	 	 	 	 	 
	
                  Sponsor
                    (Seller)

                	 	 	 	 	 	 	
                  X

                
	
                  Depositor

                	 	 	 	 	 	
                  X

                	 
	
                  Trustee

                	 	 	 	 	 	 	 
	
                  Issuing
                    entity

                	 	 	 	 	 	
                  X

                	 
	
                  Master
                    Servicer, affiliated Servicer, other Servicer servicing 20% or
                    more of
                    pool assets at time of report, other material servicers

                	
                  X

                	
                  X

                	 	 	 	 	 
	
                  Securities
                    Administrator

                	 	 	
                  X

                	 	 	 	 
	
                  Originator
                    of 20% or more of pool assets as of the Cut-off Date

                	 	 	 	 	 	
                  X

                	 
	
                  Custodian

                	 	 	 	
                  X

                	 	 	 
	
                  3

                	
                  Sales
                    of Securities and Use of Proceeds

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

                   

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

                	 	 	 	 	 	
                  X

                	 
	
                  4

                	
                  Defaults
                    Upon Senior Securities

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

                   

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

                	 	 	
                  X

                	 	 	 	 
	
                  5

                	
                  Submission
                    of Matters to a Vote of Security Holders

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

                	 	 	
                  X

                	 	 	 	 
	
                  6

                	
                  Significant
                    Obligors of Pool Assets

                	 	 	 	 	 	 	 
	
                  Item
                    1112(b) - Significant
                    Obligor Financial Information*

                	 	 	 	 	 	
                  X

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

                	 	 	 	 	 	 	 
	
                  7

                	
                  Significant
                    Enhancement Provider Information

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

                	 	 	 	 	 	 	 
	
                  Determining
                    applicable disclosure threshold

                	 	 	 	 	 	
                  X

                	 
	
                  Obtain
                    required financial information or effecting incorporation by
                    reference

                	 	 	 	 	 	
                  X

                	 
	
                  Item
                    1115(b) - Derivative Counterparty Financial
                    Information*

                	 	 	 	 	 	 	 
	
                  Determining
                    current maximum probable exposure

                	 	 	 	 	 	
                  X

                	 
	
                  Determining
                    current significance percentage

                	 	 	
                  X

                	 	 	 	 
	
                  Notify
                    derivative counterparty of significance percentage and request
                    required
                    financial information

                	 	 	
                  X

                	 	 	 	 
	
                  Obtain
                    required financial information or effecting incorporation by
                    reference

                	 	 	 	 	 	
                  X

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

                	 	 	 	 	 	 	 
	
                  8

                	
                  Other
                    Information

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

                	
                  The
                    Responsible Party for the applicable Form 8-K item as indicated
                    below.

                
	
                  9

                	
                  Exhibits

                	 	 	 	 	 	 	 
	
                  Distribution
                    report

                	 	 	
                  X

                	 	 	 	 
	
                  Exhibits
                    required by Item 601 of Regulation S-K, such as material
                    agreements

                	 	 	 	 	 	
                  X

                	 
	
                  8-K

                	
                  Must
                    be filed within four business days of an event reportable on
                    Form
                    8-K.

                	 	 	 	 
	
                  1.01

                	
                  Entry
                    into a Material Definitive Agreement

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

                   

                  Examples:
                    servicing agreement, custodial agreement.

                   

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

                	
                  X

                	
                  X

                	
                  X 

                	 	 	
                  X 

                	
                  X

                
	
                  1.02

                	
                  Termination
                    of a Material Definitive Agreement

                	
                  X

                	
                  X

                	
                  X 

                	 	 	
                  X

                	
                  X 

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

                   

                   

                  Examples:
                    servicing agreement, custodial agreement.

                	 	 	 	 	 	 	 
	
                  1.03

                	
                  Bankruptcy
                    or Receivership

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

                   

                  Sponsor
                    (Seller), Depositor, Master Servicer, affiliated Servicer, other
                    Servicer
                    servicing 20% or more of pool assets at time of report, other
                    material
                    servicers, Certificate Administrator, Trustee, significant obligor,
                    credit
                    enhancer (10% or more), derivatives counterparty,
                    Custodian

                	
                  X

                	
                  X

                	
                  X 

                	
                  X

                	 	
                  X 

                	
                  X

                
	
                  2.04

                	
                  Triggering
                    Events that Accelerate or Increase a Direct Financial Obligation
                    or an
                    Obligation under an Off-Balance Sheet Arrangement

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

                   

                  Disclosure
                    will be made of events other than waterfall triggers which are
                    disclosed
                    in the Monthly Statement to Certificateholders

                	 	
                  X

                	
                  X

                	 	 	 	 
	
                  3.03

                	
                  Material
                    Modification to Rights of Security Holders

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

                	 	 	
                  X

                	 	 	
                  X

                	 
	
                  5.03

                	
                  Amendments
                    to Articles of Incorporation or Bylaws; Change in Fiscal
                    Year

                	 	 	 	 	 	 	 
	
                  Disclosure
                    is required of any amendment “to the governing documents of the issuing
                    entity”

                	 	 	 	 	 	
                  X

                	 
	
                  5.06

                	
                  Change
                    in Shell Company Status

                	 	 	 	 	 	 	 
	
                  [Not
                    applicable to ABS issuers]

                	 	 	 	 	 	
                  X

                	 
	
                  6.01

                	
                  ABS
                    Informational and Computational Material

                	 	 	 	 	 	 	 
	
                  [Not
                    included in reports to be filed under Section 3.18]

                	 	 	 	 	 	
                  X

                	 
	
                  6.02

                	
                  Change
                    of Servicer or Trustee

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

                	
                  X

                	
                  X

                	
                  X

                	 	 	
                  X

                	 
	 	
                  Reg
                    AB disclosure about any new servicer is also required.

                	
                  X

                	 	 	 	 	 	 
	
                  Reg
                    AB disclosure about any new trustee is also required.

                	 	 	 	 	
                  X
                    (to
                    the extent of a new trustee)

                	 	 
	
                  Reg
                    AB disclosure about any new securities administrator is also
                    required.

                	 	 	
                  X

                	 	 	 	 
	
                  6.03

                	
                  Change
                    in Credit Enhancement or Other External Support [In this transaction
                    there
                    is no external enhancement or other support.]

                	 	 	 	 	 	 	 
	
                  Covers
                    termination of any enhancement in manner other than by its terms,
                    the
                    addition of an enhancement, or a material change in the enhancement
                    provided. Applies to external credit enhancements as well as
                    derivatives.
                    

                	 	 	
                  X

                	 	 	
                  X

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

                	 	 	
                  X

                	 	 	
                  X

                	 
	
                  6.04

                	
                  Failure
                    to Make a Required Distribution

                	 	 	
                  X

                	 	 	 	 
	
                  6.05

                	
                  Securities
                    Act Updating Disclosure

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

                	 	 	 	 	 	
                  X

                	
                   

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

                	 	 	 	 	 	
                  X

                	 
	
                  7.01

                	
                  Regulation
                    FD Disclosure

                	
                  X

                	
                  X

                	
                  X

                	
                  X

                	 	
                  X

                	 
	
                  8.01

                	
                  Other
                    Events

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

                	 	 	 	 	 	
                  X

                	 
	
                  9.01

                	
                  Financial
                    Statements and Exhibits

                	
                  The
                    Responsible Party applicable to reportable event.

                
	
                  10-K

                	
                  Must
                    be filed within 90 days of the fiscal year end for the
                    registrant.

                	 	 	 	 
	
                  9B

                	
                  Other
                    Information

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

                	
                  The
                    Responsible Party for the applicable Form 8-K item as indicated
                    above.

                
	 	
                  15

                	
                  Exhibits
                    and Financial Statement Schedules

                	 	 	 	 	 	 	 
	
                  Item
                    1112(b) - Significant
                    Obligor Financial Information

                	 	 	 	 	 	
                  X

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

                	 	 	 	 	 	 	 
	
                  Determining
                    applicable disclosure threshold

                	 	 	 	 	 	
                  X

                	 
	
                  Obtain
                    required financial information or effecting incorporation by
                    reference

                	 	 	 	 	 	
                  X

                	 
	
                  Item
                    1115(b) - Derivative Counterparty Financial
                    Information

                	 	 	 	 	 	 	 
	
                  Determining
                    current maximum probable exposure

                	 	 	 	 	 	
                  X

                	 
	 	 	
                  Determining
                    current significance percentage

                	 	 	
                  X

                	 	 	 	 
	
                  Notify
                    derivative counterparty of significance percentage and request
                    required
                    financial information

                	 	 	
                  X

                	 	 	 	 
	
                  Obtain
                    required financial information or effecting incorporation by
                    reference

                	 	 	 	 	 	
                  X

                	 
	
                  Item
                    1117 - Legal proceedings pending against the following entities,
                    or their
                    respective property, that is material to Certificateholders,
                    including
                    proceedings known to be contemplated by governmental
                    authorities:

                	 	 	 	 	 	 	 
	
                  Sponsor
                    (Seller)

                	 	 	 	 	 	 	
                  X

                
	
                  Depositor

                	 	 	 	 	 	
                  X

                	 
	
                  Trustee

                	 	 	 	 	 	 	 
	
                  Issuing
                    entity

                	 	 	 	 	 	
                  X

                	 
	
                  Master
                    Servicer, affiliated Servicer, other Servicer servicing 20% or
                    more of
                    pool assets at time of report, other material servicers

                	
                  X

                	
                  X

                	 	 	 	 	 
	
                  Securities
                    Administrator

                	 	 	
                  X

                	 	 	 	 
	
                  Originator
                    of 20% or more of pool assets as of the Cut-off Date

                	 	 	 	 	 	
                  X

                	 
	
                  Custodian

                	 	 	 	
                  X

                	 	 	 
	
                  Item
                    1119 - Affiliations and relationships between the following entities,
                    or
                    their respective affiliates, that are material to
                    Certificateholders:

                	 	 	 	 	 	 	 
	
                  Sponsor
                    (Seller)

                	 	 	 	 	 	 	
                  X

                
	
                  Depositor

                	 	 	 	 	 	
                  X

                	 
	
                  Trustee

                	 	 	 	 	 	 	 
	
                  Master
                    Servicer, affiliated Servicer, other Servicer servicing 20% or
                    more of
                    pool assets at time of report, other material servicers

                	
                  X

                	
                  X

                	 	 	 	 	 
	
                  Securities
                    Administrator

                	 	 	
                  X

                	 	 	 	 
	
                  Originator

                	 	 	 	 	 	
                  X

                	 
	
                  Custodian

                	 	 	 	
                  X

                	 	 	 
	
                  Credit
                    Enhancer/Support Provider

                	 	 	 	 	 	
                  X

                	 
	
                  Significant
                    Obligor

                	 	 	 	 	 	
                  X

                	 
	
                  Item
                    1122 - Assessment of Compliance with Servicing
                    Criteria

                	
                  X

                	
                  X

                	
                  X

                	
                  X

                	 	 	 
	
                  Item
                    1123 - Servicer Compliance Statement

                	
                  X

                	
                  X

                	 	 	 	 	 

        

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        P

      

      ADDITIONAL
        DISCLOSURE NOTIFICATION

       

      Bear
        Stearns Asset Backed Securities I LLC

      383
        Madison Avenue

      New
        York,
        New York 10179

      Fax:
        (212) 272-2000

      E-mail:
        regabnotifications@bear.com

       

      Wells
        Fargo Bank, N.A. as Securities Administrator 

      9062
        Old
        Annapolis Road

      Columbia,
        Maryland 21045

      Fax:
        (410) 715-2380

      E-mail:
        cts.sec.notifications@wellsfargo.com

       

      Attn:
        Corporate Trust Services - BSABS I 2006-AC5-SEC REPORT PROCESSING

       

      RE:
        **Additional Form [     ]
        Disclosure**Required

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section 4.18 of the Pooling and Servicing Agreement, dated
        as of
        November 1, 2006, among EMC Mortgage Corporation, as Seller and Company,
        Wells
        Fargo Bank, National Association, as Master Servicer and Securities
        Administrator and U.S. Bank National Association as Trustee. The Undersigned
        hereby notifies you that certain events have come to our attention that
        [will][may] need to be disclosed on Form [ ].

       

      Description
        of Additional Form [     ]
        Disclosure:

       

      List
        of
        Any Attachments hereto to be included in the Additional Form [     ]
        Disclosure:

       

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

       

      
        	
                [NAME
                  OF PARTY]

                as
                  [role]

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        Q-1

       

      GREENPOINT
        SERVICING AGREEMENT

      

       

      (See
        Tab
        # __)

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        Q-2

       

      NATIONAL
        CITY SERVICING AGREEMENT

      

      (See
        Tab
        # __)

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        R-1

      

      GREENPOINT
        ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

      

      (See
        Tab
        # __)

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        R-2

      

      NATIONAL
        CITY ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

      

      

      (See
        Tab
        # __)

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        S

      

      REPORTING
        DATA FOR MONTHLY REPORT

      

      
        	
                Standard
                  File Layout - Master Servicing

              
	
                Column
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              	
                Max
                  Size

              
	
                SER_INVESTOR_NBR

              	
                A
                  value assigned by the Servicer to define a group of loans.

              	 	
                Text
                  up to 10 digits

              	
                20

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the investor.

              	 	
                Text
                  up to 10 digits

              	
                10

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR.

              	 	
                Text
                  up to 10 digits

              	
                10

              
	
                BORROWER_NAME

              	
                The
                  borrower name as received in the file. It is not separated by first
                  and
                  last name.

              	 	
                Maximum
                  length of 30 (Last, First)

              	
                30

              
	
                SCHED_PAY_AMT

              	
                Scheduled
                  monthly principal and scheduled interest payment that a borrower
                  is
                  expected to pay, P&I constant.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NOTE_INT_RATE

              	
                The
                  loan interest rate as reported by the Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                NET_INT_RATE

              	
                The
                  loan gross interest rate less the service fee rate as reported
                  by the
                  Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_RATE

              	
                The
                  servicer's fee rate for a loan as reported by the
                  Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_AMT

              	
                The
                  servicer's fee amount for a loan as reported by the
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_PAY_AMT

              	
                The
                  new loan payment amount as reported by the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_LOAN_RATE

              	
                The
                  new loan rate as reported by the Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ARM_INDEX_RATE

              	
                The
                  index the Servicer is using to calculate a forecasted
                  rate.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ACTL_BEG_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the beginning of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_END_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the end of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date at the end of processing cycle that the borrower's next payment
                  is
                  due to the Servicer, as reported by Servicer.

              	 	
                MM/DD/YYYY

              	
                10

              
	
                SERV_CURT_AMT_1

              	
                The
                  first curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_1

              	
                The
                  curtailment date associated with the first curtailment
                  amount.

              	 	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_1

              	
                The
                  curtailment interest on the first curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_2

              	
                The
                  second curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_2

              	
                The
                  curtailment date associated with the second curtailment
                  amount.

              	 	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_2

              	
                The
                  curtailment interest on the second curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_3

              	
                The
                  third curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_3

              	
                The
                  curtailment date associated with the third curtailment
                  amount.

              	 	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_AMT_3

              	
                The
                  curtailment interest on the third curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_AMT

              	
                The
                  loan "paid in full" amount as reported by the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_DATE

              	
                The
                  paid in full date as reported by the Servicer.

              	 	
                MM/DD/YYYY

              	
                10

              
	 	 	 	
                Action
                  Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                  65=Repurchase,70=REO

              	
                2

              
	
                ACTION_CODE

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

              
	
                INT_ADJ_AMT

              	
                The
                  amount of the interest adjustment as reported by the
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SOLDIER_SAILOR_ADJ_AMT

              	
                The
                  Soldier and Sailor Adjustment amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NON_ADV_LOAN_AMT

              	
                The
                  Non Recoverable Loan Amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                LOAN_LOSS_AMT

              	
                The
                  amount the Servicer is passing as a loss, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_BEG_PRIN_BAL

              	
                The
                  scheduled outstanding principal amount due at the beginning of
                  the cycle
                  date to be passed through to investors.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_END_PRIN_BAL

              	
                The
                  scheduled principal balance due to investors at the end of a processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_PRIN_AMT

              	
                The
                  scheduled principal amount as reported by the Servicer for the
                  current
                  cycle -- only applicable for Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_NET_INT

              	
                The
                  scheduled gross interest amount less the service fee amount for
                  the
                  current cycle as reported by the Servicer -- only applicable for
                  Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_PRIN_AMT

              	
                The
                  actual principal amount collected by the Servicer for the current
                  reporting cycle -- only applicable for Actual/Actual
                  Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_NET_INT

              	
                The
                  actual gross interest amount less the service fee amount for the
                  current
                  reporting cycle as reported by the Servicer -- only applicable
                  for
                  Actual/Actual Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  AMT

              	
                The
                  penalty amount received when a borrower prepays on his loan as
                  reported by
                  the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  WAIVED

              	
                The
                  prepayment penalty amount for the loan waived by the
                  servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                MOD_DATE

              	
                The
                  Effective Payment Date of the Modification for the loan.

              	 	
                MM/DD/YYYY

              	
                10

              
	
                MOD_TYPE

              	
                The
                  Modification Type.

              	 	
                Varchar
                  - value can be alpha or numeric

              	
                30

              
	
                DELINQ_P&I_ADVANCE_AMT

              	
                The
                  current outstanding principal and interest advances made by
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        T

      

      REPORTING
        DATA FOR DEFAULTED LOANS

      

      Standard
        File Layout - Delinquency Reporting

      

      
        	
                Column/Header
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR

              	 	
                 

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the originator.

              	 	
                 

              
	
                CLIENT_NBR

              	
                Servicer
                  client number

              	 	 
	
                SERV_INVESTOR_NBR

              	
                Contains
                  a unique number as assigned by an external servicer to identify
                  a group of
                  loans in their system.

              	 	
                 

              
	
                BORROWER_FIRST_NAME

              	
                First
                  name of the borrower.

              	 	 
	
                BORROWER_LAST_NAME

              	
                Last
                  name of the borrower.

              	 	 
	
                PROP_ADDRESS

              	
                Street
                  name and number of property

              	 	
                 

              
	
                PROP_STATE

              	
                The
                  state where the property located.

              	 	
                 

              
	
                PROP_ZIP

              	
                Zip
                  code where the property is located.

              	 	
                 

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date that the borrower's next payment is due to the servicer at
                  the end of
                  processing cycle, as reported by Servicer.

              	 	
                MM/DD/YYYY

              
	
                LOAN_TYPE

              	
                Loan
                  type (i.e. FHA, VA, Conv)

              	 	
                 

              
	
                BANKRUPTCY_FILED_DATE

              	
                The
                  date a particular bankruptcy claim was filed.

              	 	
                MM/DD/YYYY

              
	
                BANKRUPTCY_CHAPTER_CODE

              	
                The
                  chapter under which the bankruptcy was filed.

              	 	
                 

              
	
                BANKRUPTCY_CASE_NBR

              	
                The
                  case number assigned by the court to the bankruptcy
                  filing.

              	 	
                 

              
	
                POST_PETITION_DUE_DATE

              	
                The
                  payment due date once the bankruptcy has been approved by the
                  courts

              	 	
                MM/DD/YYYY

              
	
                BANKRUPTCY_DCHRG_DISM_DATE

              	
                The
                  date the loan Is removed from bankruptcy. Either by dismissal,
                  discharge
                  and/or a motion for relief was granted. 

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_APPR_DATE

              	
                The
                  date the loss mitigation was approved by the servicer

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_TYPE

              	
                The
                  type of loss mitigation approved for a loan such as;

              	 	 
	
                LOSS_MIT_EST_COMP_DATE

              	
                The
                  date the loss mitigation plan Is scheduled to end/close

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_ACT_COMP_DATE

              	
                The
                  date the loss mitigation Is actually completed

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_APPROVED_DATE

              	
                The
                  date DA Admin sends a letter to the servicer with instructions
                  to begin
                  foreclosure proceedings.

              	 	
                MM/DD/YYYY

              
	
                ATTORNEY_REFERRAL_DATE

              	
                Date
                  file was referred to attorney to pursue foreclosure

              	 	
                MM/DD/YYYY

              
	
                FIRST_LEGAL_DATE

              	
                Notice
                  of 1st legal filed by an attorney in a foreclosure action

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_EXPECTED_DATE

              	
                The
                  date by which a foreclosure sale is expected to occur.

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_DATE

              	
                The
                  actual date of the foreclosure sale.

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_AMT

              	
                The
                  amount a property sold for at the foreclosure sale.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                EVICTION_START_DATE

              	
                The
                  date the servicer initiates eviction of the borrower.

              	 	
                MM/DD/YYYY

              
	
                EVICTION_COMPLETED_DATE

              	
                The
                  date the court revokes legal possession of the property from the
                  borrower.

              	 	
                MM/DD/YYYY

              
	
                LIST_PRICE

              	
                The
                  price at which an REO property is marketed.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                LIST_DATE

              	
                The
                  date an REO property is listed at a particular price.

              	 	
                MM/DD/YYYY

              
	
                OFFER_AMT

              	
                The
                  dollar value of an offer for an REO property.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                OFFER_DATE_TIME

              	
                The
                  date an offer is received by DA Admin or by the Servicer.

              	 	
                MM/DD/YYYY

              
	
                REO_CLOSING_DATE

              	
                The
                  date the REO sale of the property is scheduled to close.

              	 	
                MM/DD/YYYY

              
	
                REO_ACTUAL_CLOSING_DATE

              	
                Actual
                  date Of REO sale

              	 	
                MM/DD/YYYY

              
	
                OCCUPANT_CODE

              	
                Classification
                  of how the property is occupied.

              	 	
                 

              
	
                PROP_CONDITION_CODE

              	
                A
                  code that indicates the condition of the property.

              	 	
                 

              
	
                PROP_INSPECTION_DATE

              	
                The
                  date a property inspection is performed.

              	 	
                MM/DD/YYYY

              
	
                APPRAISAL_DATE

              	
                The
                  date the appraisal was done.

              	 	
                MM/DD/YYYY

              
	
                CURR_PROP_VAL

              	
                 The
                  current "as is" value of the property based on brokers price opinion
                  or
                  appraisal.

              	
                2

              	
                 

              
	
                REPAIRED_PROP_VAL

              	
                The
                  amount the property would be worth if repairs are completed pursuant
                  to a
                  broker's price opinion or appraisal.

              	
                2

              	
                 

              
	
                If
                  applicable:

              	
                 

              	 	
                 

              
	
                DELINQ_STATUS_CODE

              	
                FNMA
                  code describing status of loan

              	 	 
	
                DELINQ_REASON_CODE

              	
                The
                  circumstances which caused a borrower to stop paying on a loan.
                  Code
                  indicates the reason why the loan is in default for this
                  cycle.

              	 	 
	
                MI_CLAIM_FILED_DATE

              	
                Date
                  mortgage insurance claim was filed with mortgage insurance
                  company.

              	 	
                MM/DD/YYYY

              
	
                MI_CLAIM_AMT

              	
                Amount
                  of mortgage insurance claim filed

              	 	
                No
                  commas(,) or dollar signs ($)

              
	
                MI_CLAIM_PAID_DATE

              	
                Date
                  mortgage insurance company disbursed claim payment

              	 	
                MM/DD/YYYY

              
	
                MI_CLAIM_AMT_PAID

              	
                Amount
                  mortgage insurance company paid on claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_FILED_DATE

              	
                Date
                  claim was filed with pool insurance company

              	 	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT

              	
                Amount
                  of claim filed with pool insurance company

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_PAID_DATE

              	
                Date
                  claim was settled and the check was issued by the pool
                  insurer

              	 	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT_PAID

              	
                Amount
                  paid on claim by pool insurance company

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_A_CLAIM_FILED_DATE

              	
                 Date
                  FHA Part A Claim was filed with HUD

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_A_CLAIM_AMT

              	
                 Amount
                  of FHA Part A claim filed

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_A_CLAIM_PAID_DATE

              	
                 Date
                  HUD disbursed Part A claim payment

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_A_CLAIM_PAID_AMT

              	
                 Amount
                  HUD paid on Part A claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_B_CLAIM_FILED_DATE

              	
                  Date
                  FHA Part B claim was filed with HUD

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_B_CLAIM_AMT

              	
                  Amount
                  of FHA Part B claim filed

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_B_CLAIM_PAID_DATE

              	
                   Date
                  HUD disbursed Part B claim payment

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_B_CLAIM_PAID_AMT

              	
                 Amount
                  HUD paid on Part B claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                VA_CLAIM_FILED_DATE

              	
                 Date
                  VA claim was filed with the Veterans Admin

              	 	
                MM/DD/YYYY

              
	
                VA_CLAIM_PAID_DATE

              	
                 Date
                  Veterans Admin. disbursed VA claim payment

              	 	
                MM/DD/YYYY

              
	
                VA_CLAIM_PAID_AMT

              	
                 Amount
                  Veterans Admin. paid on VA claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              

      

       

       

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting

       

      The
        Loss
        Mit Type
        field
        should show the approved Loss Mitigation Code as follows: 

      
        	
                ·  ASUM-

              	
                Approved
                  Assumption

              
	
                ·  BAP-

              	
                Borrower
                  Assistance Program

              
	
                ·  CO-

              	
                Charge
                  Off

              
	
                ·  DIL-

              	
                Deed-in-Lieu

              
	
                ·  FFA-

              	
                Formal
                  Forbearance Agreement

              
	
                ·  MOD-

              	
                Loan
                  Modification

              
	
                ·  PRE-

              	
                Pre-Sale

              
	
                ·  SS-

              	
                Short
                  Sale

              
	
                ·  MISC

              	
                Anything
                  else approved by the PMI or Pool
                  Insurer

              

      

       

       

      NOTE:
        Wells Fargo Bank will accept alternative Loss Mitigation Types to those above,
        provided that they are consistent with industry standards. If Loss Mitigation
        Types other than those above are used, the Servicer must supply Wells Fargo
        Bank
        with a description of each of the Loss Mitigation Types prior to sending
        the
        file.

       

       

      The
        Occupant
        Code
        field should show the current status of the property code as
        follows:

      
        	
                ·  Mortgagor

              
	
                ·  Tenant

              
	
                ·  Unknown
                  

              
	
                ·  Vacant

              

      

       

       

      The
        Property
        Condition
        field should show the last reported condition of the property as follows:
        

      
        	
                ·  Damaged

              
	
                ·  Excellent

              
	
                ·  Fair

              
	
                ·  Gone

              
	
                ·  Good

              
	
                ·  Poor

              
	
                ·  Special
                  Hazard

              
	
                ·  Unknown

              

      

       

      

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting, Continued

       

       

      The
        FNMA
        Delinquent Reason Code
        field should show the Reason for Delinquency as follows: 

       

      

      
        	
                Delinquency
                  Code

              	
                Delinquency
                  Description

              
	
                001

              	
                FNMA-Death
                  of principal mortgagor

              
	
                002

              	
                FNMA-Illness
                  of principal mortgagor

              
	
                003

              	
                FNMA-Illness
                  of mortgagor’s family member

              
	
                004

              	
                FNMA-Death
                  of mortgagor’s family member

              
	
                005

              	
                FNMA-Marital
                  difficulties

              
	
                006

              	
                FNMA-Curtailment
                  of income

              
	
                007

              	
                FNMA-Excessive
                  Obligation

              
	
                008

              	
                FNMA-Abandonment
                  of property

              
	
                009

              	
                FNMA-Distant
                  employee transfer

              
	
                011

              	
                FNMA-Property
                  problem

              
	
                012

              	
                FNMA-Inability
                  to sell property

              
	
                013

              	
                FNMA-Inability
                  to rent property

              
	
                014

              	
                FNMA-Military
                  Service

              
	
                015

              	
                FNMA-Other

              
	
                016

              	
                FNMA-Unemployment

              
	
                017

              	
                FNMA-Business
                  failure

              
	
                019

              	
                FNMA-Casualty
                  loss

              
	
                022

              	
                FNMA-Energy
                  environment costs

              
	
                023

              	
                FNMA-Servicing
                  problems

              
	
                026

              	
                FNMA-Payment
                  adjustment

              
	
                027

              	
                FNMA-Payment
                  dispute

              
	
                029

              	
                FNMA-Transfer
                  of ownership pending

              
	
                030

              	
                FNMA-Fraud

              
	
                031

              	
                FNMA-Unable
                  to contact borrower

              
	
                INC

              	
                FNMA-Incarceration

              

      

      

      

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting, Continued

      

       

      The
        FNMA
        Delinquent Status Code
        field should show the Status of Default as follows: 

       

      

      
        	
                Status
                  Code

              	
                Status
                  Description

              
	
                09

              	
                Forbearance

              
	
                17

              	
                Pre-foreclosure
                  Sale Closing Plan Accepted

              
	
                24

              	
                Government
                  Seizure

              
	
                26

              	
                Refinance

              
	
                27

              	
                Assumption

              
	
                28

              	
                Modification

              
	
                29

              	
                Charge-Off

              
	
                30

              	
                Third
                  Party Sale

              
	
                31

              	
                Probate

              
	
                32

              	
                Military
                  Indulgence

              
	
                43

              	
                Foreclosure
                  Started

              
	
                44

              	
                Deed-in-Lieu
                  Started

              
	
                49

              	
                Assignment
                  Completed

              
	
                61

              	
                Second
                  Lien Considerations

              
	
                62

              	
                Veteran’s
                  Affairs-No Bid

              
	
                63

              	
                Veteran’s
                  Affairs-Refund

              
	
                64

              	
                Veteran’s
                  Affairs-Buydown

              
	
                65

              	
                Chapter
                  7 Bankruptcy

              
	
                66

              	
                Chapter
                  11 Bankruptcy

              
	
                67

              	
                Chapter
                  13 Bankruptcy

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        U

      

      REPORTING
        DATA FOR REALIZED LOSSES AND GAINS

      

      Calculation
        of Realized Loss/Gain Form 332- Instruction Sheet

      

      NOTE:
        Do not net or combine items. Show all expenses individually and all credits
        as
        separate line items. Claim packages are due within 90 days of liquidation.
        Late
        submissions may result in claims not being passed until the following month.
        The
        Servicer is responsible to remit all funds pending loss approval and /or
        resolution of any disputed items. 

      (a)  

       

      (b)  The
        numbers on the 332 form correspond with the numbers listed below.

       

      Liquidation
        and Acquisition Expenses:

       

      
        	
                1.

              	
                The
                  Actual Unpaid Principal Balance of the Mortgage Loan. For documentation,
                  an Amortization Schedule from date of default through liquidation
                  breaking
                  out the net interest and servicing fees advanced is
                  required.

              

      

       

      
        	
                2.

              	
                The
                  Total Interest Due less the aggregate amount of servicing fee that
                  would
                  have been earned if all delinquent payments had been made as agreed.
                  For
                  documentation, an Amortization Schedule from date of default through
                  liquidation breaking out the net interest and servicing fees advanced
                  is
                  required.

              

      

       

      
        	
                3.
                  

              	
                Accrued
                  Servicing Fees based upon the Scheduled Principal Balance of the
                  Mortgage
                  Loan as calculated on a monthly basis. For documentation, an Amortization
                  Schedule from date of default through liquidation breaking out
                  the net
                  interest and servicing fees advanced is
                  required.

              

      

       

      
        	
                4-12.

              	
                Complete
                  as applicable. Required
                  documentation:

              

      

       

      *
        For
        taxes and insurance advances - see page 2 of 332 form - breakdown required
        showing period

       

      of
        coverage, base tax, interest, penalty. Advances prior to default require
        evidence of servicer efforts to recover advances.

       

      *
        For
        escrow advances - complete payment history 

       

      (to
        calculate advances from last positive escrow balance forward)

       

      *
        Other
        expenses -  copies of corporate advance history showing all payments

       

      *
        REO
        repairs > $1500 require explanation

       

      *
        REO
        repairs >$3000 require evidence of at least 2 bids.

       

      *
        Short
        Sale or Charge Off require P&L supporting the decision and WFB’s approved
        Officer Certificate 

       

      *
        Unusual
        or extraordinary items may require further documentation. 

       

      13.        
         The
        total
        of lines 1 through 12.

       

      (c)  Credits:
        

       

      
        	
                14-21.

              	
                Complete
                  as applicable. Required
                  documentation:

              

      

       

      *
        Copy of
        the HUD 1 from the REO sale. If a 3rd
        Party
        Sale, bid instructions and Escrow Agent / Attorney

       

      Letter
        of
        Proceeds Breakdown.

       

      *
        Copy of
        EOB for any MI or gov't guarantee 

       

      *
        All
        other credits need to be clearly defined on the 332
        form      
     

       

      
        	
                22.

              	
                The
                  total of lines 14 through 21.

              

      

       

      Please
        Note: For
        HUD/VA loans, use line (18a) for Part A/Initial proceeds and line (18b) for
        Part
        B/Supplemental proceeds.

       

      Total
        Realized Loss (or Amount of Any Gain)

       

      23. The
        total
        derived from subtracting line 22 from 13. If the amount represents a realized
        gain, show the amount in parenthesis ( ). 

      
         

        
          
            	
                     

                    Calculation
                      of Realized Loss/Gain Form
                      332

                  

          

           

          Prepared
            by: __________________   Date:
            _______________

          Phone:
            ______________________    Email
            Address:_____________________

          
            	 	 	 	 	 
	
                    Servicer
                      Loan No.

                     

                  	 	
                    Servicer
                      Name

                     

                  	 	
                    Servicer
                      Address 

                     

                     

                  

          

           

          WELLS
            FARGO BANK, N.A. Loan No._____________________________

           

          Borrower's
            Name: _________________________________________________________

          Property
            Address: _________________________________________________________

           

          Liquidation
            Type:     REO
            Sale  
            3rd
            Party Sale  Short
            Sale     Charge
            Off 

           

          Was
            this loan granted a Bankruptcy deficiency or cramdown  Yes      No

          If
“Yes”,
            provide deficiency or cramdown amount
            _______________________________

           

          
            Liquidation
              and Acquisition Expenses:

            
              
                

                  
                    	
                            (1)

                          	
                            Actual
                              Unpaid Principal Balance of Mortgage Loan

                          	
                             

                          	$	 	
                            (1)

                          
	
                            (2)

                          	
                            Interest
                              accrued at Net Rate

                          	 	
                             

                          	 	
                            (2)

                          
	
                            (3)

                          	
                            Accrued
                              Servicing Fees

                          	 	
                             

                          	 	
                            (3)

                          
	
                            (4)

                          	
                            Attorney's
                              Fees

                          	 	
                             

                          	 	
                            (4)

                          
	
                            (5)

                          	
                            Taxes
                              (see page 2)

                          	 	
                             

                          	 	
                            (5)

                          
	
                            (6)

                          	
                            Property
                              Maintenance

                          	 	 	 	
                             

                          	 	
                            (6)

                          
	
                            (7)

                          	
                            MI/Hazard
                              Insurance Premiums (see page 2)

                          	
                             

                          	 	 	
                            (7)

                          
	
                            (8)

                          	
                            Utility
                              Expenses

                          	 	 	 	
                             

                          	 	
                            (8)

                          
	
                            (9)

                          	
                            Appraisal/BPO

                          	 	 	 	
                             

                          	 	
                            (9)

                          
	
                            (10)

                          	
                            Property
                              Inspections

                          	 	 	 	
                             

                          	 	
                            (10)

                          
	
                            (11)

                          	
                            FC
                              Costs/Other Legal Expenses

                          	 	 	 	
                            (11)

                          
	
                            (12)

                          	
                            Other
                              (itemize)

                          	 	 	 	
                             

                          	 	
                            (12)

                          
	 	 	
                            Cash
                              for Keys

                          	 	
                             

                          	 	 	
                            (12)

                          
	 	 	
                            HOA/Condo
                              Fees

                          	 	
                             

                          	 	 	
                            (12)

                          
	 	 	
                             

                          	 	
                             

                          	 	 	
                            (12)

                          
	 	 	 	 	 	 	 	 
	 	 	
                            Total
                              Expenses

                          	 	 	$	 	
                            
                              (13)

                            

                          
	
                            Credits:

                          	 	 	 	 	 	 	 
	
                            (14)

                          	
                            Escrow
                              Balance

                          	 	 	 	
                            $
                              

                          	 	
                            (14)

                          
	
                            (15)

                          	
                            HIP
                              Refund

                          	 	 	 	 	 	
                            
                              (15)

                            

                          
	
                            (16)

                          	
                            Rental
                              Receipts

                          	 	 	 	
                             

                          	 	
                            (16)

                          
	
                            (17)

                          	
                            Hazard
                              Loss Proceeds

                          	 	 	 	
                             

                          	 	
                            (17)

                          
	
                            (18)

                          	
                            Primary
                              Mortgage Insurance / Gov’t Insurance

                          	
                             

                          	 	 	(18a)

	
                            HUD
                              Part A

                          	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	
                            HUD
                              Part B

                          	 	 	 	 	 	(18b)
	
                            (19)

                          	
                            Pool
                              Insurance Proceeds

                          	 	 	 	
                             

                          	 	
                            (19)

                          
	
                            (20)

                          	
                            Proceeds
                              from Sale of Acquired Property

                          	
                             

                          	 	 	
                            (20)

                          
	
                            (21)

                          	
                            Other
                              (itemize)

                          	 	 	 	
                             

                          	 	
                            (21)

                          
	 	
                             

                          	 	
                             

                          	
                             

                          	 	 	
                            (21)

                          
	 	 	 	 	 	 	 	 
	 	
                            Total
                              Credits

                          	 	 	 	
                            $

                          	 	
                            (22)

                          
	
                            Total
                              Realized Loss (or Amount of Gain)

                          	
                             

                          	
                             

                          	
                            $

                          	 	
                            (23)

                          

                  

                

              

               

            

          

        
 

      
        	
                Type

                (Tax
                  /Ins.)

              	
                Date
                  Paid

              	
                Period
                  of Coverage

              	
                Total
                  Paid

              	
                Base
                  Amount

              	
                Penalties

              	
                Interest

              
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 
	
                 

                 

              	 	 	 	 	 	 

      

      

      

      EXHIBIT
        V

      

      FORM
        OF
        CERTIFICATION TO BE

      PROVIDED
        BY THE SECURITIES ADMINISTRATOR TO DEPOSITOR

      

      
        	
                Re:

              	
                Bear
                  Stearns Asset Backed Securities I Trust 2006-AC5 (the “Trust”), Mortgage
                  Pass-Through Certificates, Series 20006-AC5, issued pursuant to
                  the
                  Pooling and Servicing Agreement, dated as of June 1, 20006 among
                  Bear
                  Stearns Asset Backed Securities I LLC, as Depositor, EMC Mortgage
                  Corporation, as seller and company, Wells Fargo Bank, National
                  Association, as Securities Administrator and master servicer, and
                  U.S.
                  Bank National Association, as
                  trustee.

              

      

      

      The
        Securities Administrator hereby certifies to the Depositor, and its officers,
        directors and affiliates, and with the knowledge and intent that they will
        rely
        upon this certification, that:

      

      (1) I
        have
        reviewed the annual report on Form 10-K for the fiscal year [____] (the “Annual
        Report”), and all reports on Form 10-D required to be filed in respect of period
        covered by the Annual Report (collectively with the Annual Report, the
“Reports”), of the Trust;

      

      (2) To
        my
        knowledge, (a) the Reports, taken as a whole, do not contain any untrue
        statement of a material fact or omit to state a material fact necessary to
        make
        the statements made, in light of the circumstances under which such statements
        were made, not misleading with respect to the period covered by the Annual
        Report, and (b) the Securities Administrator’s assessment of compliance and
        related attestation report referred to below, taken as a whole, do not contain
        any untrue statement of a material fact or omit to state a material fact
        necessary to make the statements made, in light of the circumstances under
        which
        such statements were made, not misleading with respect to the period covered
        by
        such assessment of compliance and attestation report;

      

      (3) To
        my
        knowledge, the distribution information required to be provided by the
        Securities Administrator under the Pooling and Servicing Agreement for inclusion
        in the Reports is included in the Reports;

      

      (4) I
        am
        responsible for reviewing the activities performed by the Securities
        Administrator under the Pooling and Servicing Agreement, and based on my
        knowledge and the compliance review conducted in preparing the compliance
        statement of the Securities Administrator required by the Pooling and Servicing
        Agreement, and except as disclosed in the Reports, the Securities Administrator
        has fulfilled its obligations under the Pooling and Servicing Agreement in
        all
        material respects; and

      

      (5) The
        report on assessment of compliance with servicing criteria applicable to
        the
        Securities Administrator for asset-backed securities of the Securities
        Administrator and each Subcontractor utilized by the Securities Administrator
        and related attestation report on assessment of compliance with servicing
        criteria applicable to it required to be included in the Annual Report in
        accordance with Item 1122 of Regulation AB and Exchange Act Rules 13a-18
        and
        15d-18 has been included as an exhibit to the Annual Report. Any material
        instances of non-compliance are described in such report and have been disclosed
        in the Annual Report.

      

      In
        giving
        the certifications above, the Securities Administrator has reasonably relied
        on
        information provided to it by the following unaffiliated parties: [names
        of
        servicer(s), master servicer, subservicer, depositor, trustee,
        custodian(s)]

      

      
        	 
	
                Date:

              	 
	 	 
	 	 
	
                [Signature]

              
	
                [Title:]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]