Document:

MORTGAGE
      LOAN PURCHASE AGREEMENT

     

    This
      is a
      Mortgage Loan Purchase Agreement (the “Agreement”), dated February 24, 2006,
      between Long Beach Securities Corp., a Delaware corporation (the “Purchaser”)
      and Long Beach Mortgage Company, a Delaware corporation (the
“Seller”).

     

    Preliminary
      Statement

     

    The
      Seller intends to sell certain mortgage loans and the swap agreement to the
      Purchaser on the terms and subject to the conditions set forth in this
      Agreement. The Purchaser intends to deposit the mortgage loans and the swap
      agreement into a mortgage pool constituting the trust fund. The trust fund
      will
      issue asset backed certificates designated as Long Beach Mortgage Loan Trust
      2006-2 Asset-Backed Certificates, Series 2006-2 (the “Certificates”). The
      Certificates will consist of twenty-one classes of certificates. The
      Certificates will be issued pursuant to a Pooling and Servicing Agreement,
      dated
      as of March 1, 2006 (the “Pooling and Servicing Agreement”), among the
      Purchaser, as depositor, Deutsche Bank National Trust Company, as trustee (the
      “Trustee”) and the Seller, as master servicer (in such capacity, the “Master
      Servicer”). Capitalized terms used but not defined herein shall have the
      meanings set forth in the Pooling and Servicing Agreement.

     

    The
      parties hereto agree as follows:

     

    
      	SECTION
              1.      	
              Agreement
                to Purchase.

            

    

     

    The
      Seller agrees to sell, and the Purchaser agrees to purchase, on or before
      March 7, 2006 (the “Closing Date”), certain fixed-rate and adjustable-rate
      residential mortgage loans (the “Mortgage Loans”) and a swap
      agreement,
      dated
      March 7, 2006 between Washington Mutual Bank and Bank of America, N.A. (the
“Counterparty”) as set forth on Schedule
      A
      attached
      hereto (the “Trust Swap Agreement”). The Trust Swap Agreement will be novated to
      the Seller pursuant to a novation dated as of March 7, 2006, among the
      Counterparty, WMB and the Seller. The Trust Swap Agreement will be novated
      to
      the Purchaser pursuant to a novation dated as of March 7, 2006, among the
      Counterparty, the Seller and the Purchaser.

     

    
      	SECTION
              2.      	
              Mortgage
                Loan Schedule.

            

    

     

    The
      Purchaser and the Seller have agreed upon which of the mortgage loans owned
      by
      the Seller are to be purchased by the Purchaser pursuant to this Agreement
      on
      the Closing Date and the Seller shall prepare or cause to be prepared on or
      prior to the Closing Date a final schedule (the “Closing Schedule”) that shall
      describe such Mortgage Loans and set forth all of the Mortgage Loans to be
      purchased under this Agreement. The Closing Schedule shall conform to the
      requirements set forth in this Agreement and to the definition of “Mortgage Loan
      Schedule” under the Pooling and Servicing Agreement. The Closing Schedule shall
      be the Mortgage Loan Schedule under the Pooling and Servicing
      Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	SECTION
              3.      	
              Consideration.

            

    

     

    In
      consideration for the Mortgage Loans and the Trust Swap Agreement to be
      purchased hereunder, the Purchaser shall on the Closing Date, as described
      in
      Section 8 hereof, (i) pay to or upon the order of the Seller in immediately
      available funds an amount (the “Purchase Price”) equal to the proceeds of the
      Class A Certificates and the Mezzanine Certificates, net of the aggregate amount
      of the underwriting commissions and discounts applicable to such certificates
      and the purchase price of the Class B Certificates; and (ii) deliver to the
      Seller or Long Beach Asset Holdings Corp., upon the order of the Seller, the
      Class C Certificates, the Class P Certificates, the Class R Certificates,
      the Class R-CX Certificates and the Class R-PX Certificates (the “Long
      Beach Certificates”).

     

    The
      Purchaser or any assignee, transferee or designee of the Purchaser shall be
      entitled to (i) all scheduled payments of principal due after March 1, 2006
      (the “Cut-off Date”), (ii) all unscheduled collections in respect of the
      Mortgage Loans received after the Cut-off Date (other than the portion of such
      collections due on or prior to the Cut-off Date), (iii) all other payments
      of
      principal due and collected after the Cut-off Date, and (iv) all payments of
      interest on the Mortgage Loans due after the Cut-off Date. All scheduled
      payments of principal and interest due on or before the Cut-off Date and
      collected after the Cut-off Date shall belong to the Seller.

     

    Pursuant
      to the Pooling and Servicing Agreement, the Purchaser will transfer, assign,
      set
      over and otherwise convey to the Trustee without recourse for the benefit of
      the
      Certificateholders, all the right, title and interest of the Purchaser in and
      to
      the Mortgage Loans and the Trust Swap Agreement, together with its rights under
      this Agreement (other than Section 17 hereof).

     

    
      	SECTION
              4.      	
              Transfer
                of the Mortgage Loans and the Trust Swap Agreement.

            

    

     

    (a)  Possession
      of Mortgage Files.
      The
      Seller does hereby sell, transfer, assign, set over and convey to the Purchaser,
      without recourse, but subject to the terms of this Agreement, all of its right,
      title and interest in, to and under the Mortgage Loans and the Trust Swap
      Agreement. The contents of each Mortgage File related to a Mortgage Loan not
      delivered to the Purchaser or to any assignee, transferee or designee of the
      Purchaser on or prior to the Closing Date are and shall be held in trust by
      the
      Seller for the benefit of the Purchaser or any assignee, transferee or designee
      of the Purchaser and promptly transferred to the Trustee. Upon the sale of
      the
      Mortgage Loans, the ownership of each related Mortgage Note, the related
      Mortgage and the other contents of the related Mortgage File shall be vested
      in
      the Purchaser and the ownership of all records and documents with respect to
      the
      related Mortgage Loan prepared by or that come into the possession of the Seller
      on or after the Closing Date shall immediately vest in the Purchaser and shall
      be delivered promptly to the Purchaser or as otherwise directed by the
      Purchaser. 

     

    
      
        
        

      

      
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    (b)  Delivery
      of Mortgage Loan Documents.
      The
      Seller will, on or prior to the Closing Date deliver or cause to be delivered
      to
      the Purchaser, the Trustee or their designee each of the following documents
      for
      each Mortgage Loan:

     

    (i)  the
      original Mortgage Note, endorsed in blank or in the following form: “Pay to the
      order of Deutsche Bank National Trust Company, as Trustee, under the applicable
      agreement, without recourse,” with all prior and intervening endorsements,
      showing a complete chain of endorsement from the originator to the Person so
      endorsing to the Trustee or (in the case of not more than 1.00% of the Mortgage
      Loans, by aggregate principal balance as of the Cut-off Date) a copy of such
      original Mortgage Note with an accompanying Lost Note Affidavit executed by
      the
      Seller;

     

    (ii)  the
      original Mortgage, noting the presence of the MIN of the Mortgage Loan and
      language indicating that the Mortgage Loan is a MOM Loan if the Mortgage Loan
      is
      a MOM loan, with evidence of recording thereon, and a copy, certified by the
      appropriate recording office, of the recorded power of attorney, if the Mortgage
      was executed pursuant to a power of attorney, with evidence of recording
      thereon;

     

    (iii)  unless
      the Mortgage Loan is registered on the MERS® System, an original Assignment in
      blank;

     

    (iv)  the
      original recorded Assignment or Assignments showing a complete chain of
      assignment from the originator to the Person assigning the Mortgage to the
      Trustee or in blank (or to MERS, if the Mortgage Loan is registered on the
      MERS®
System and noting the presence of the MIN) as contemplated by the immediately
      preceding clause (iii);

     

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

     

    (vi)  the
      original lender’s title insurance policy, together with all endorsements or
      riders issued with or subsequent to the issuance of such policy, insuring the
      priority of the Mortgage as a first lien on the Mortgaged Property represented
      therein as a fee interest vested in the Mortgagor, or in the event such title
      policy is unavailable, a written commitment or uniform binder or preliminary
      report of the title issued by the title insurance or escrow
      company.

     

    Except
      with respect to any Mortgage Loan for which MERS is identified on the Mortgage
      or on a properly recorded assignment of the Mortgage as the mortgagee of record,
      the Seller shall promptly (and in no event later than thirty (30) Business
      Days,
      subject to extension upon a mutual agreement between the Seller and the
      Purchaser) following the later of the Closing Date and the date of receipt
      by
      the Seller of the recording information for a Mortgage submit or cause to be
      submitted for recording, at no expense to the Purchaser, in the appropriate
      public office for real property records, each Assignment referred to in (iii)
      and (iv) above and shall execute each original Assignment referred to in clause
      (iii) above in the following form: “Deutsche Bank National Trust Company, as
      Trustee under the applicable agreement, without recourse.” In the event that any
      such Assignment is lost or returned unrecorded because of a defect therein,
      the
      Seller shall promptly prepare or cause to be prepared a substitute Assignment
      or
      cure or cause to be cured such defect, as the case may be, and thereafter cause
      each such Assignment to be duly recorded. Notwithstanding the foregoing, the
      Assignments referred to in (iii) and (iv) above shall not be required to be
      completed and submitted for recording with respect to any Mortgage Loan if
      each
      Rating Agency does not require recordation for such Rating Agency to assign
      the
      initial ratings to the Class A Certificates, the Mezzanine Certificates,
      the Class B Certificates and the Other NIM Notes and initial shadow rating
      to
      the Insured NIM Notes, without giving effect to any insurance policy issued
      by
      the NIMS Insurer; provided, however, each such Assignment referred to in (iii)
      and (iv) above shall be submitted for recording by the Seller, in the manner
      described above, at no expense to the Purchaser, Trust Fund or the Trustee,
      upon
      the earliest to occur of: (i) reasonable direction by Holders of Certificates
      entitled to at least 25% of the Voting Rights, (ii) the occurrence of a Master
      Servicer Event of Default, (iii) the occurrence of a bankruptcy, insolvency
      or
      foreclosure relating to the Seller, (iv) the occurrence of a servicing transfer
      as described in Section 7.02 of the Pooling and Servicing Agreement and (v)
      if
      the Seller is not the Master Servicer and with respect to any one Assignment,
      the occurrence of a bankruptcy, insolvency or foreclosure relating to the
      Mortgagor under the related Mortgage.

     

    
      
        
        

      

      
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    In
      connection with the assignment of any Mortgage Loan registered on the MERS®
System, the Seller further agrees that it shall cause, within 30 Business Days
      after the Closing Date, the MERS® System to indicate that such Mortgage Loans
      have been assigned by the Purchaser to the Trustee in accordance with the
      Pooling and Servicing 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 shall not, and shall not
      permit the Master Servicer to 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
      and the Pooling and Servicing Agreement.

     

    If
      any
      document referred to in Section 4(b)(ii), Section 4(b)(iii), Section 4(b)(iv),
      or Section 4(b)(v) above (collectively, the “Recording Documents”) has as of the
      Closing Date been submitted for recording but either (x) has not been returned
      from the applicable public recording office or (y) has been lost or such public
      recording office has retained the original of such document, the obligations
      of
      the Seller to deliver such Recording Documents shall be deemed to be satisfied
      upon (1) delivery to the Purchaser, the Trustee or their designee of a copy
      of
      each such Recording Document certified by the Seller in the case of (x) above
      or
      the applicable public recording office in the case of (y) above to be a true
      and
      complete copy of the original that was submitted for recording and (2) if such
      copy is certified by the Seller, delivery to the Purchaser, the Trustee or
      their
      designee upon receipt thereof, and in any event no later than one year after
      the
      Closing Date (except as provided below), of either the original or a copy of
      such Recording Document certified by the applicable public recording office
      to
      be a true and complete copy of the original. In instances where, due to a delay
      on the part of the applicable recording office where any such Recording
      Documents have been delivered for recordation, the Recording Documents cannot
      be
      delivered to the Purchaser, the Trustee or their designee within one year after
      the Closing Date, the Seller shall deliver to the Purchaser, the Trustee or
      their designee within such time period an Officer’s Certificate stating the date
      by which the Seller expects to receive such Recording Documents from the
      applicable recording office. If the Recording Documents have still not been
      received by the Seller and delivered to the Purchaser, the Trustee or their
      designee by such date, the Seller shall deliver to the Purchaser, the Trustee
      or
      their designee by such date an additional Officer’s Certificate stating a
      revised date by which Seller expects to receive the applicable Recording
      Documents. This procedure shall be repeated until the Recording Documents have
      been received by the Seller and delivered to the Purchaser, the Trustee or
      their
      designee. If the original or copy of the lender’s title insurance policy was not
      delivered pursuant to Section 4(b)(vi) above, the Seller shall deliver or cause
      to be delivered to the Purchaser, the Trustee or their designee promptly after
      receipt thereof, and in any event within 120 days after the Closing Date such
      title insurance policy. The Seller shall deliver or cause to be delivered to
      the
      Purchaser, the Trustee or their designee promptly upon receipt thereof any
      other
      original documents constituting a part of a Mortgage File received with respect
      to any Mortgage Loan, including, but not limited to, any original documents
      evidencing an assumption or modification of any Mortgage Loan.

     

    
      
        
        

      

      
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    Each
      original document relating to a Mortgage Loan which is not delivered to the
      Purchaser, the Trustee or their designee, if held by the Seller, shall be so
      held for the benefit of the Purchaser, the Trustee or their designees. In the
      event that any such original document is required pursuant to the terms of
      this
      Section to be a part of a Mortgage File, such document shall be delivered
      promptly to the Purchaser, the Trustee or their designee. Any such original
      document that is not required pursuant to the terms of this Section to be a
      part
      of a Mortgage File shall be held by the Seller in its capacity as Master
      Servicer.

     

    (c)  Acceptance
      of Mortgage Loans.
      The
      documents delivered pursuant to Section 4(b) hereof shall be reviewed by the
      Purchaser or any assignee, transferee or designee of the Purchaser at any time
      before, on and after the Closing Date (and with respect to each document
      permitted to be delivered after the Closing Date within seven days of its
      delivery) to ascertain that all required documents have been executed and
      received and that such documents relate to the Mortgage Loans identified on
      the
      Mortgage Loan Schedule.

     

    (d)  Transfer
      of Interest in Agreements.
      The
      Purchaser has the right to assign its interest under this Agreement (other
      than
      Section 17 hereof), in whole or in part, to the Trustee, as may be required
      to
      effect the purposes of the Pooling and Servicing Agreement, without the consent
      of the Seller, and the Trustee shall succeed to the rights and obligations
      hereunder of the Purchaser. Any expense reasonably incurred by or on behalf
      of
      the Purchaser, the Trustee, or the NIMS Insurer, if any, in connection with
      enforcing any obligations of the Seller under this Agreement will be promptly
      reimbursed by the Seller.

     

    (e)  Examination
      of Mortgage Files.
      Prior
      to the Closing Date the Seller shall either (i) deliver in escrow to the
      Purchaser or to any assignee, transferee or designee of the Purchaser, for
      examination, the Mortgage File pertaining to each Mortgage Loan, or (ii) make
      such Mortgage Files available to the Purchaser or to any assignee, transferee
      or
      designee of the Purchaser for examination. Such examination may be made by
      the
      Purchaser or the Trustee, and their respective designees, upon reasonable notice
      to the Seller during normal business hours at any time before or after the
      Closing Date. If any such person makes such examination prior to the Closing
      Date and identifies any Mortgage Loans with respect to which the Seller’s
      representations and warranties contained in this Agreement are not correct,
      such
      Mortgage Loans shall be deleted from the Mortgage Loan Schedule. The Purchaser
      may, at its option and without notice to the Seller, purchase all or part of
      the
      Mortgage Loans without conducting any partial or complete examination. The
      fact
      that the Purchaser or any person has conducted or has failed to conduct any
      partial or complete examination of the related Mortgage Files shall not affect
      the rights of the Purchaser or any assignee, transferee or designee of the
      Purchaser to demand repurchase or other relief as provided herein or under
      the
      Pooling and Servicing Agreement.

     

    
      
        
        

      

      
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      	SECTION
              5.      	
              Representations,
                Warranties and Covenants of the Seller.

            

    

     

    The
      Seller hereby represents and warrants and covenants to the Purchaser, as of
      the
      date hereof and as of the Closing Date:

     

    (i)  The
      Seller is a corporation duly organized, 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
      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 and to
      service the Mortgage Loans in accordance with the terms of the Pooling and
      Servicing Agreement;

     

    (ii)  The
      Seller had the full corporate power and authority to originate, hold and sell
      each Mortgage Loan and has the full corporate power and authority to service
      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 thereof by the Purchaser,
      constitutes a legal, valid and binding obligation of the Seller, enforceable
      against the Seller in accordance with its terms, except to the extent that
      the
      enforceability thereof may be limited by (a) bankruptcy, insolvency, moratorium,
      receivership, conservatorship, arrangement, moratorium and other similar laws
      relating to creditors’ rights generally and (b) the general principles of
      equity, whether such enforcement is sought in equity or at law;

     

    (iii)  The
      execution and delivery of this Agreement by the Seller, the servicing of the
      Mortgage Loans by the Seller under the Pooling and Servicing Agreement, the
      consummation of any other of the transactions herein contemplated, and the
      fulfillment of or compliance with the terms hereof are in the ordinary course
      of
      business of the Seller and does not (A) result in a breach of any term or
      provision of the charter or by-laws of the Seller, (B) conflict with, result
      in
      a breach, violation or acceleration of, or result in a default under, the terms
      of any other material agreement, instrument or indenture to which the Seller
      is
      a party or by which it may be bound, or any statute, order or regulation
      applicable to the Seller of any court, regulatory body, administrative agency
      or
      governmental body having jurisdiction over the Seller or any of its property
      or
      (C) result in the creation or imposition of any lien, charge or encumbrance
      which would have a material adverse effect upon the Mortgage Loans or any
      documents or instruments evidencing or securing the Mortgage Loans; and the
      Seller is not a party to, bound by, or in breach or violation of any indenture
      or other agreement or instrument, or subject to or in violation of any statute,
      order or regulation of any court, regulatory body, administrative agency or
      governmental body having jurisdiction over it, which materially and adversely
      affects or, to the Seller’s knowledge, would in the future result in the
      creation or imposition of any lien, charge or encumbrance which would have
      a
      material adverse effect upon the Mortgage Loans or any documents or instruments
      evidencing or securing the Mortgage Loans or materially and adversely affect
      (x)
      the ability of the Seller to perform its obligations under this Agreement or
      the
      Pooling and Servicing Agreement or (y) the business, operations, financial
      condition, properties or assets of the Seller taken as a whole;

     

    
      
        
        

      

      
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    (iv)  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 if any such consent, approval,
      authorization or order is required, the Seller has obtained the
      same;

     

    (v)  The
      Seller is an approved seller/servicer for Fannie Mae or Freddie Mac in good
      standing and is a HUD approved mortgagee pursuant to Section 203 and Section
      211
      of the National Housing Act;

     

    (vi)  No
      litigation or proceeding is pending or, to
      the best
      knowledge of the Seller,
      threatened, against the Seller that would materially and adversely affect the
      execution, delivery or enforceability of this Agreement or the Pooling and
      Servicing Agreement or the issuance of the Certificates or the ability of the
      Seller to service the Mortgage Loans or to perform any of its other obligations
      hereunder in accordance with the terms hereof and the terms of the Pooling
      and
      Servicing Agreement or, that would result in a material adverse change in the
      financial or operating conditions of the Seller;

     

    (vii)  No
      certificate of an officer, statement or other information furnished in writing
      or report delivered by the Seller to the Purchaser, any Affiliate of the
      Purchaser or the Trustee for use in connection with the purchase of the Mortgage
      Loans and the transactions contemplated hereunder and under the Pooling and
      Servicing Agreement contains any untrue statement of a material fact, or omits
      a
      material fact necessary to make the information, certificate, statement or
      report not misleading in any material respect;

     

    (viii)  The
      Seller has not dealt with any broker, investment banker, agent or other person,
      except for the Purchaser or any of its affiliates, that may be entitled to
      any
      commission or compensation in connection with the sale of the Mortgage
      Loans;

     

    
      
        
        

      

      
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    (ix)  Each
      Mortgage Note, each Mortgage, each Assignment and any other document required
      to
      be delivered by or on behalf of the Seller under this Agreement or the Pooling
      and Servicing Agreement to the Purchaser or any assignee, transferee or designee
      of the Purchaser for each Mortgage Loan has been or will be, in accordance
      with
      Section 4(b) hereof, delivered to the Purchaser or any such assignee, transferee
      or designee. With respect to each Mortgage Loan, the Seller is in possession
      of
      a complete Mortgage File in compliance with the Pooling and Servicing Agreement,
      except for such documents that have been delivered (1) to the Purchaser or
      any
      assignee, transferee or designee of the Purchaser or (2) for recording to the
      appropriate public recording office and have not yet been returned;

     

    (x)  The
      Seller (A) is a solvent entity and is paying its debts as they become due,
      (B)
      immediately after giving effect to the transfer of the Mortgage Loans, will
      be a
      solvent entity and will have sufficient resources to pay its debts as they
      become due and (C) did not sell the Mortgage Loans to the Purchaser with the
      intent to hinder, delay or defraud any of its creditors; and

     

    (xi)  The
      transfer of the Mortgage Loans to the Purchaser at the Closing Date will be
      treated by the Seller for financial accounting and reporting purposes as a
      sale
      of assets.

     

    
      	SECTION
              6.      	
              Representations
                and Warranties of the Seller Relating to the Individual Mortgage
                Loans.
                

            

    

     

    The
      Seller hereby represents and warrants to the Purchaser, that as of the Closing
      Date with respect to each Mortgage Loan:

     

    (i)  The
      information set forth on the Mortgage Loan Schedule with respect to each
      Mortgage Loan is true and correct in all material respects as of the Cut-off
      Date, unless another date is set forth on the Mortgage Loan
      Schedule;

     

    (ii)  [reserved];

     

    (iii)  Each
      Mortgage is a valid and enforceable first or second lien on the Mortgaged
      Property, including all improvements thereon, subject only to (a) the lien
      of
      non-delinquent current real property taxes and assessments, (b) covenants,
      conditions and restrictions, rights of way, easements and other matters of
      public record as of the date of recording of such Mortgage, such exceptions
      appearing of record being acceptable to mortgage lending institutions generally
      or specifically reflected in the appraisal made in connection with the
      origination of the related Mortgage Loan and which do not materially interfere
      with the benefits of the security intended to be provided by such Mortgage,
      (c)
      other matters to which like properties are commonly subject which do not
      materially interfere with the benefits of the security intended to be provided
      by such Mortgage and (d) in the case of a second lien, only to a first lien
      on
      such Mortgaged Property;

     

    
      
        
        

      

      
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    (iv)  Immediately
      prior to the assignment of the Mortgage Loans to the Purchaser, the Seller
      had
      good title to, and was the sole legal and beneficial owner of, each Mortgage
      Loan, free and clear of any pledge, lien, encumbrance or security interest
      and
      has full right and authority, subject to no interest or participation of, or
      agreement with, any other party to sell and assign the same. The form of
      endorsement of each Mortgage Note satisfied the requirement, if any, of
      endorsement in order to transfer all right, title and interest of the party
      so
      endorsing, as noteholder or assignee thereof, in and to that Mortgage Note;
      and
      each Assignment to be delivered hereunder is in recordable form and is
      sufficient to effect the assignment of and to transfer to the assignee
      thereunder the benefits of the assignor, as mortgagee or assignee thereof,
      under
      each Mortgage to which that Assignment relates;

     

    (v)  To
      the
      best of the Seller’s knowledge, there is no delinquent tax or assessment lien
      against any Mortgaged Property;

     

    (vi)  There
      is
      no valid offset, defense or counterclaim to any Mortgage Note (including any
      obligation of the Mortgagor to pay the unpaid principal of or interest on such
      Mortgage Note) or the Mortgage, nor will the operation of any of the terms
      of
      the Mortgage Note and the Mortgage, or the exercise of any right thereunder,
      render the Mortgage Note or the Mortgage unenforceable, in whole or in part,
      or
      subject to any right of rescission, set-off, counterclaim or defense, including
      the defense of usury and no such right of rescission, set-off, counterclaim
      or
      defense has been asserted with respect thereto;

     

    (vii)  To
      the
      best of the Seller’s knowledge, there are no mechanics’ liens or claims for
      work, labor or material affecting any Mortgaged Property which are or may be
      a
      lien prior to, or equal with, the lien of the related Mortgage, except those
      which are insured against by the title insurance policy referred to in (xi)
      below;

     

    (viii)  To
      the
      best of the Seller’s knowledge, each Mortgaged Property is free of material
      damage and is at least in average repair;

     

    (ix)  Each
      Mortgage Loan at origination complied in all material respects with applicable
      local, state and federal laws, including, without limitation, predatory and
      abusive lending, usury, equal credit opportunity, real estate settlement
      procedures, truth-in-lending and disclosure laws, and consummation of the
      transactions contemplated hereby, including without limitation the receipt
      of
      interest does not involve the violation of any such laws;

     

    (x)  Neither
      the Seller nor any prior holder of any Mortgage has modified the Mortgage in
      any
      material respect, satisfied, canceled or subordinated such Mortgage in whole
      or
      in part; released the related Mortgaged Property in whole or in part from the
      lien of such Mortgage; or executed any instrument of release, cancellation,
      modification or satisfaction with respect thereto (except that a Mortgage Loan
      may have been modified by a written instrument signed by the Seller or a prior
      holder of the Mortgage Loan which has been recorded, if necessary, to protect
      the interests of the Seller and the Purchaser and which has been delivered
      to
      the Purchaser or any assignee, transferee or designee of the Purchaser as part
      of the Mortgage File, and the terms of which are reflected in the Mortgage
      Loan
      Schedule);

     

    
      
        
        

      

      
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    (xi)  A
      lender’s policy of title insurance together with a condominium endorsement and
      extended coverage endorsement, if applicable, and, with respect to each
      Adjustable Rate Mortgage Loan, an adjustable rate mortgage endorsement in an
      amount at least equal to the balance of the Mortgage Loan as of the Cut-off
      Date
      or a commitment (binder) to issue the same was effective on the date of the
      origination of each Mortgage Loan, each such policy is valid and remains in
      full
      force and effect, the transfer of the related Mortgage Loan to the Purchaser
      and
      the Trustee does not affect the validity or enforceability of such policy and
      each such policy was issued by a title insurer qualified to do business in
      the
      jurisdiction where the Mortgaged Property is located and acceptable to Fannie
      Mae or Freddie Mac and in a form acceptable to Fannie Mae or Freddie Mac on
      the
      date of origination of such Mortgage Loan, which policy insures the Seller
      and
      successor owners of indebtedness secured by the insured Mortgage, as to the
      first or second, as the case may be, priority lien of the Mortgage; to the
      best
      of the Seller’s knowledge, no claims have been made under such mortgage title
      insurance policy and no prior holder of the related Mortgage, including the
      Seller, has done, by act or omission, anything which would impair the coverage
      of such mortgage title insurance policy;

     

    (xii)  Each
      Mortgage Loan was originated by, or generated on behalf of, the Seller, or
      originated by a savings and loan association, savings bank, commercial bank,
      credit union, insurance company or similar institution which is supervised
      and
      examined by a federal or state authority, or by a mortgagee approved by the
      Secretary of Housing and Urban Development pursuant to Sections 203 and 211
      of
      the National Housing Act;

     

    (xiii)  With
      respect to each Adjustable Rate Mortgage Loan, on each Adjustment Date, the
      Mortgage Rate will be adjusted to equal the Index plus the Gross Margin, rounded
      to the nearest 0.125%, subject to the Periodic Rate Cap, the Maximum Mortgage
      Rate and the Minimum Mortgage Rate. The related Mortgage Note is payable on
      the
      first day of each month in self-amortizing monthly installments of principal
      and
      interest (unless such Mortgage Loan is a mortgage loan that requires the payment
      of interest only with respect to some or all of the related monthly payments
      as
      indicated on the Mortgage Loan Schedule), with interest payable in arrears,
      and
      requires a Monthly Payment which is sufficient to fully amortize the outstanding
      principal balance of the Mortgage Loan over its remaining term and to pay
      interest at the applicable Mortgage Rate. No Mortgage Loan is subject to
      negative amortization. All rate adjustments have been performed in accordance
      with the terms of the related Mortgage Note or subsequent modifications, if
      any;

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    (xiv)  To
      the
      best of the Seller’s knowledge, all of the improvements which were included for
      the purpose of determining the Value of the Mortgaged Property lie wholly within
      the boundaries and building restriction lines of such property, and no
      improvements on adjoining properties encroach upon the Mortgaged
      Property;

     

    (xv)  All
      inspections, licenses and certificates required to be made or issued with
      respect to all occupied portions of the Mortgaged Property and, with respect
      to
      the use and occupancy of the same, including but not limited to certificates
      of
      occupancy, have been made or obtained from the appropriate authorities and
      to
      the best of the Seller’s knowledge, the Mortgaged Property is lawfully occupied
      under applicable law;

     

    (xvi)  All
      parties which have had any interest in the Mortgage, whether as mortgagee,
      assignee, pledgee or otherwise, are (or, during the period in which they held
      and disposed of such interest, were) in compliance with any and all applicable
      licensing requirements of the laws of the state wherein the Mortgaged Property
      is located;

     

    (xvii)  The
      Mortgage Note and the related Mortgage are genuine, and each is the legal,
      valid
      and binding obligation of the Mortgagor enforceable against the Mortgagor by
      the
      mortgagee or its representative in accordance with its terms, except only as
      such enforcement may be limited by bankruptcy, insolvency, reorganization,
      moratorium or other similar laws affecting the enforcement of creditors’ rights
      generally and by law. To the best of the Seller’s knowledge, all parties to the
      Mortgage Note and the Mortgage had full legal capacity to execute all Mortgage
      Loan documents and to convey the estate purported to be conveyed by the Mortgage
      and each Mortgage Note and Mortgage have been duly and validly executed by
      such
      parties;

     

    (xviii)  The
      proceeds of each Mortgage Loan have been fully disbursed, there is no
      requirement for future advances thereunder and any and all requirements as
      to
      completion of any on-site or off-site improvements and as to disbursements
      of
      any escrow funds therefor have been complied with. All costs, fees and expenses
      incurred in making, closing or recording the Mortgage Loans were
      paid;

     

    (xix)  The
      related Mortgage contains customary and enforceable provisions which render
      the
      rights and remedies of the holder thereof adequate for the realization against
      the Mortgaged Property of the benefits of the security, including, (i) in the
      case of a Mortgage designated as a deed of trust, by trustee’s sale, and (ii)
      otherwise by judicial foreclosure. There is no homestead or other exemption
      available to the Mortgagor which would interfere with the right to sell the
      Mortgaged Property at a trustee’s sale or the right to foreclose the
      Mortgage;

     

    (xx)  With
      respect to each Mortgage constituting a deed of trust, a trustee, duly qualified
      under applicable law to serve as such, has been properly designated and
      currently so serves and is named in such Mortgage, and no fees or expenses
      are
      or will become payable by the Purchaser to the trustee under the deed of trust,
      except in connection with a trustee’s sale after default by the
      Mortgagor;

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    (xxi)  There
      exist no deficiencies with respect to escrow deposits and payments, if such
      are
      required, for which customary arrangements for repayment thereof have not been
      made, and no escrow deposits or payments of other charges or payments due the
      Seller have been capitalized under the Mortgage or the related Mortgage
      Note;

     

    (xxii)  The
      origination, underwriting and collection practices used by the Seller with
      respect to each Mortgage Loan have been in all material respects legal, proper,
      prudent and customary in the subprime mortgage servicing business. Each Mortgage
      Loan is currently being serviced by Washington Mutual Bank;

     

    (xxiii)  There
      is
      no pledged account or other security other than real estate securing the
      Mortgagor’s obligations;

     

    (xxiv)  No
      Mortgage Loan has a shared appreciation feature, or other contingent interest
      feature;

     

    (xxv)  [reserved];

     

    (xxvi)  The
      improvements upon each Mortgaged Property are covered by a valid and existing
      hazard insurance policy with a generally acceptable carrier that provides for
      fire extended coverage and coverage of such other hazards as are customarily
      covered by hazard insurance policies with extended coverage in the area where
      the Mortgaged Property is located representing coverage not less than the lesser
      of the outstanding principal balance of the related Mortgage Loan or the minimum
      amount required to compensate for damage or loss on a replacement cost basis.
      All individual insurance policies and flood policies referred to in this clause
      (xxvi) and in clause (xxvii) below contain a standard mortgagee clause naming
      the Seller or the original mortgagee, and its successors in interest, as
      mortgagee, and the Seller has received no notice that any premiums due and
      payable thereon have not been paid; the Mortgage obligates the Mortgagor
      thereunder to maintain all such insurance, including flood insurance, at the
      Mortgagor’s cost and expense, and upon the Mortgagor’s failure to do so,
      authorizes the holder of the Mortgage to obtain and maintain such insurance
      at
      the Mortgagor’s cost and expense and to seek reimbursement therefor from the
      Mortgagor;

     

    (xxvii)  If
      the
      Mortgaged Property is in an area identified in the Federal Register by the
      Federal Emergency Management Agency as subject to special flood hazards, a
      flood
      insurance policy in a form meeting the requirements of the current guidelines
      of
      the Flood Insurance Administration is in effect with respect to such Mortgaged
      Property with a generally acceptable carrier in an amount representing coverage
      not less than the least of (A) the original outstanding principal balance of
      the
      Mortgage Loan, (B) the minimum amount required to compensate for damage or
      loss
      on a replacement cost basis or (C) the maximum amount of insurance that is
      available under the Flood Disaster Protection Act of 1973;

     

    
      
        
        

      

      
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    (xxviii)  There
      is
      no default, breach, violation or event of acceleration existing under the
      Mortgage or the related Mortgage Note; and neither the Seller nor any other
      entity involved in originating or servicing the Mortgage Loan has waived any
      default, breach, violation or event of acceleration;

     

    (xxix)  Each
      Mortgaged Property is improved by a one- to four-family residential dwelling,
      including condominium units and dwelling units in planned unit developments,
      which, to the best of the Seller’s knowledge, does not include cooperatives and
      does not constitute property other than real property under state
      law;

     

    (xxx)  There
      is
      no obligation on the part of the Seller or any other party under the terms
      of
      the Mortgage or related Mortgage Note to make payments in addition to those
      made
      by the Mortgagor;

     

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

     

    (xxxii)  Each
      Mortgage Loan was underwritten in accordance with the Seller’s underwriting
      guidelines as described in the Prospectus Supplement as applicable to its credit
      grade in all material respects (the “Underwriting Guidelines”);

     

    (xxxiii)  Each
      appraisal of a Mortgage Loan that was used to determine the appraised value
      of
      the related Mortgaged Property was conducted generally in accordance with the
      Seller’s Underwriting Guidelines, and included an assessment by the appraiser of
      the fair market value of the related Mortgaged Property at the time of the
      appraisal. The Mortgage File contains an appraisal of the applicable Mortgaged
      Property;

     

    (xxxiv)  None
      of
      the Mortgage Loans is a graduated payment Mortgage Loan, nor is any Mortgage
      Loan subject to a temporary buydown or similar arrangement;

     

    (xxxv)  There
      are
      no Mortgage Loans with respect to which the monthly payment due thereon in
      January, 2006 had not been made, none of the Mortgage Loans has been
      contractually delinquent for more than 30 days more than once during the
      preceding twelve months and, no Mortgage Loan has ever experienced a delinquency
      of 60 or more days since the origination thereof;

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

       

    

    (xxxvi)  Each
      Mortgage contains a provision that is, to the extent not prohibited by federal
      or state law, enforceable for the acceleration of the payment of the unpaid
      principal balance of the Mortgage Loan in the event that the Mortgaged Property
      is sold or transferred without the prior written consent of the mortgagee
      thereunder;

     

    (xxxvii)  To
      the
      best of the Seller’s knowledge no misrepresentation, negligence, fraud or
      similar occurrence with respect to a Mortgage Loan has taken place on the part
      of any person, including, without limitation, the Mortgagor, any appraiser,
      any
      builder or developer, or any other party involved in the origination of the
      Mortgage Loan or in the application of any insurance in relation to such
      Mortgage Loan;

     

    (xxxviii)  Each
      Mortgage Loan constitutes a “qualified mortgage” within the meaning of Section
      860G(a)(3) of the Code;

     

    (xxxix)  The
      information set forth in the Prepayment Charge Schedule is complete, true and
      correct in all material respects at the date or dates respecting which such
      information is furnished and each Prepayment Charge is permissible and
      enforceable in accordance with its terms under applicable law upon the
      Mortgagor’s voluntary Principal Prepayment (except to the extent that: (1) the
      enforceability thereof may be limited by bankruptcy, insolvency, moratorium,
      receivership and other similar laws relating to creditors’ rights generally; or
      (2) the collectability thereof may be limited due to acceleration in connection
      with a foreclosure or other involuntary prepayment). No Mortgage Loan originated
      before October 1, 2002 has a Prepayment Charge for a term in excess of five
      years from the date of its origination and no Mortgage Loan originated on or
      after October 1, 2002 has a prepayment charge for a term in excess of three
      years from the date of its origination;

     

    (xl)  The
      Loan-to-Value Ratio for each Mortgage Loan was no greater than 100% at the
      time
      of origination;

     

    (xli)  The
      first
      date on which each Mortgagor must make a payment on the related Mortgage Note
      is
      no later than 60 days from the date of this Agreement;

     

    (xlii)  With
      respect to each Mortgage Loan, the related Mortgagor shall not fail or has
      not
      failed to make the first monthly payment due under the terms of the Mortgage
      Loan by the second succeeding Due Date after the Due Date on which such monthly
      payment was due;

     

    (xliii)  The
      transfer, assignment and conveyance of the Mortgage Notes and the Mortgages
      by
      the Seller pursuant to this Agreement are not subject to the bulk transfer
      or
      any similar statutory provisions in effect in any relevant jurisdiction, except
      any as may have been complied with;

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

       

    

    (xliv)  There
      are
      no defaults in complying with the terms of the Mortgage, and either (1) any
      taxes, governmental assessments, insurance premiums, water, sewer and municipal
      charges or ground rents which previously became due and owing have been paid,
      or
      (2) an escrow of funds has been established in an amount sufficient to pay
      for
      every such item which remains unpaid and which has been assessed but is not
      yet
      due and payable. Except for payments in the nature of escrow payments, including
      without limitation, taxes and insurance payments, the Seller has not advanced
      funds, or induced, solicited or knowingly received any advance of funds by
      a
      party other than the Mortgagor, directly or indirectly, for the payment of
      any
      amount required by the Mortgage Note, except for interest accruing from the
      date
      of the Mortgage Note or date of disbursement of the Mortgage proceeds, whichever
      is greater, to the day which precedes by one month the Due Date of the first
      installment of principal and interest;

     

    (xlv)  There
      is
      no proceeding pending, or to best of the Seller’s knowledge threatened, for the
      total or partial condemnation of the Mortgaged Property or the taking by eminent
      domain of any Mortgaged Property;

     

    (xlvi)  No
      Mortgage Loan is subject to the requirements of the Home Ownership and Equity
      Protection Act of 1994, as amended, or is a “high cost” or “predatory” loan
      under any state or local law or regulation applicable to the originator of
      such
      Mortgage Loan or which would result in liability to the purchaser or assignee
      of
      such Mortgage Loan under any predatory or abusive lending law. In the event
      that
      Financial Security Assurance, Inc. becomes a NIMS Insurer, no Mortgage Loan
      is a
“covered” loan under the laws of the states of California, Colorado or
      Ohio;

     

    (xlvii)  No
      proceeds from any Mortgage Loans were used to finance single-premium credit
      insurance policies. No borrower was required to purchase any credit life,
      disability, accident or health insurance product as a condition of obtaining
      the
      extension of credit. No borrower obtained a prepaid single-premium credit life,
      disability, accident or health insurance policy in connection with the
      origination of the Mortgage Loan;

     

    (xlviii)  The
      Seller did not select the Mortgage Loans with the intent to adversely affect
      the
      interests of the Purchaser;

     

    (xlix)  The
      Seller has not received any notice that any Mortgagor has filed for any
      bankruptcy or similar legal protection since the date of the origination of
      such
      Mortgage Loan. Prior to the date of the origination of any Mortgage Loan, the
      Seller did not receive any notice that any Mortgagor has filed for bankruptcy
      or
      similar legal protection except as permitted under the Underwriting
      Guidelines;

     

    (l)  No
      Group I Mortgage Loan is a “High-Cost Home Loan” as defined in the Georgia
      Fair Lending Act, as amended (the “Georgia Act”), and no Mortgage Loan that was
      originated on or after October 1, 2002 and before March 7, 2003, is
      secured by a Mortgaged Property located in the State of Georgia;

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

       

    

    (li)  No
      Group I Mortgage Loan is a “High Cost Home Loan” as defined in the Kentucky
      high-cost loan statute effective June 24, 2003 (Ky. Rev. Stat. Section
      360.100);

     

    (lii)  No
      Group I Mortgage Loan is a “High Cost Home Loan” as defined in the New
      Jersey Home Ownership Act effective November 27, 2003 (N.J.S.A. 46;
      10B-22 et seq.);

     

    (liii)  No
      Group I Mortgage Loan is a subsection 10 mortgage under the Oklahoma Home
      Ownership and Equity Protection Act;

     

    (liv)  No
      Group I Mortgage Loan is a “High-Cost Home Loan” as defined in New York
      Banking Law 6-1;

     

    (lv)  No
      Group I Mortgage Loan is a “High Cost Home Loan” as defined in the Arkansas
      Home Loan Protection Act effective July 16, 2003 (Act 1340 of
      2003);

     

    (lvi)  No
      Group I Mortgage Loan is a “High-Cost Home Loan” as defined in the New
      Mexico Home Loan Protection Act effective January 1, 2004 (N.M. Stat. Am.
§§ 58-21A-1 et seq.);

     

    (lvii)  [reserved];

     

    (lviii)  Each
      Group I Mortgage Loan was originated in compliance with the following
      anti-predatory lending guidelines:

     

    a.  Each
      Group I Mortgage Loan satisfies the eligibility for purchase requirements and
      was originated in compliance with Lender Letter # LL03-00 dated April 11, 2000
      for Fannie Mae Sellers (the “Lender Letter”);

     

    b.  No
      borrower was encouraged or required by the Seller to select a Group I Mortgage
      Loan product offered by the Group I Mortgage Loan’s originator which is a higher
      cost product designed for less creditworthy borrowers, unless at the time of
      the
      Group I Mortgage Loan’s origination, such borrower did not qualify taking into
      account credit history and debt-to-income ratios for a lower-cost credit product
      then offered by the Group I Mortgage Loan’s originator or any affiliate of the
      Group I Mortgage Loan’s originator;

     

    c.  The
      methodology used in underwriting the extension of credit for each Group I
      Mortgage Loan employs objective mathematical principles which relate the
      borrower’s income, assets and liabilities to the proposed payment and such
      underwriting methodology does not rely on the extent of the borrower’s equity in
      the collateral as the principal determining factor in approving such credit
      extension. Such underwriting methodology provided reasonable assurance that
      at
      the time of origination (application/approval) the borrower had a reasonable
      ability to make timely payments on the Group I Mortgage Loan;

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

       

    

    d.  With
      respect to any Group I Mortgage Loan that contains a provision permitting
      imposition of a premium upon a prepayment prior to maturity, (i) the Seller’s
      pricing methods include mortgage loans with and without prepayment premiums;
      borrowers selecting Group I Mortgage Loans which include such prepayment
      premiums receive a monetary benefit, including but not limited to a rate or
      fee
      reduction, in exchange for selecting a Group I Mortgage Loan with a prepayment
      premium, (ii) prior to the Group I Mortgage Loan’s origination, the borrower had
      the opportunity to choose between an array of mortgage loan products which
      included mortgage loan products with prepayment premiums and mortgage loan
      products that did not require payment of such a premium, (iii) the prepayment
      premium is disclosed to the borrower in the loan documents pursuant to
      applicable state and federal law, and (iv) notwithstanding any state or federal
      law to the contrary, the Master Servicer shall not impose such prepayment
      premium in any instance when the mortgage debt is accelerated as the result
      of
      the borrower’s default in making the loan payments;

     

    e.  All
      points and fees related to each Group I Mortgage Loan were disclosed in writing
      to the borrower in accordance with applicable state and federal law. Except
      in
      the case of a Group I Mortgage Loan in an original principal amount of less
      than
      $60,000 which would have resulted in an unprofitable origination, no borrower
      was charged “points and fees” (whether or not financed) in an amount greater
      than 5% of the principal amount of such loan, such 5% limitation calculated
      in
      accordance with the Lender Letter; 

     

    f.  All
      fees
      and charges (including finance charges) and whether or not financed, assessed,
      collected or to be collected in connection with the origination and servicing
      of
      each Group I Mortgage Loan have been disclosed in writing to the borrower in
      accordance with applicable state and federal law and regulation; 

     

    (lix)  No
      Group
      I Mortgage Loan had a principal balance at origination in excess of Fannie
      Mae’s
      conforming loan balance limitations for single family loans set forth in the
      Fannie Mae Charter Act and the Fannie Mae Selling Guide in effect at the time
      of
      such Group I Mortgage Loan's origination;

     

    (lx)  With
      respect to each Group I Mortgage Loan, information regarding the borrower credit
      file related to such Mortgage Loan has been furnished to credit reporting
      agencies in compliance with the provisions of the Fair Credit Reporting Act
      and
      the applicable implementing regulations;

     

    (lxi)  No
      Mortgage Loan is a “High Cost Loan” or “Covered Loan” (as such terms are defined
      in the Standard & Poor’s LEVELS® Glossary in effect on the Closing Date
      which is now Version 5.6d Revised, Exhibit E, applicable portions of which
      are
      attached hereto as Exhibit A) and no Mortgage Loan originated on or after
      October 1, 2002 through March 6, 2003 is governed by the Georgia
      Act;

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

       

    

    (lxii)  No
      Group I Mortgage Loan is a “High Cost Home Mortgage Loan” as defined in the
      Massachusetts Predatory Home Loan Practices Act effective November 7, 2004
      (Mass. Ann. Laws ch. 183C);

     

    (lxiii)  No
      Group I Mortgage Loan is a “High Cost Home Loan” as defined in the Indiana
      Home Loan Practices Act effective January 1, 2005 (Ind. Code Ann.
§§ 24-9-1 through 24-9-9); and

     

    (lxiv)  With
      respect to any Group I Mortgage Loan originated on or after August 1, 2004,
      neither the related Mortgage nor the related Mortgage Note requires the
      Mortgagor to submit to arbitration to resolve any dispute arising out of or
      relating in any way to the Mortgage Loan transaction.

     

    
      	SECTION
              7.      	
              Repurchase
                Obligation for Defective Documentation and for Breach of Representation
                and Warranty.

            

    

     

    (a)  The
      representations and warranties contained in Section 5(ix) and Section 6 shall
      not be impaired by any review and examination of loan files or other documents
      evidencing or relating to the Mortgage Loans or any failure on the part of
      the
      Seller or the Purchaser to review or examine such documents and shall inure
      to
      the benefit of any assignee, transferee or designee of the Purchaser, including
      the Trustee for the benefit of holders of asset-backed certificates evidencing
      an interest in all or a portion of the Mortgage Loans. With respect to the
      representations and warranties contained herein which are made to the knowledge
      or the best of knowledge of the Seller, or as to which the Seller has no
      knowledge, if it is discovered that the substance of any such representation
      and
      warranty was inaccurate as of the date such representation and warranty was
      made
      or deemed to be made, and such inaccuracy materially and adversely affects
      the
      value of the related Mortgage Loan or the interest therein of the Purchaser
      or
      the Purchaser’s assignee, transferee or designee, then notwithstanding the lack
      of knowledge by the Seller with respect to the substance of such representation
      and warranty being inaccurate at the time the representation and warranty was
      made, the Seller shall take such action described in the following paragraph
      in
      respect of such Mortgage Loan.

     

    Upon
      discovery by the Seller, the Purchaser or any assignee, transferee or designee
      of the Purchaser of any materially defective document in, or that any material
      document was not transferred by the Seller (as listed on the Trustee’s initial
      certification), as part of any Mortgage File or of a breach of any of the
      representations and warranties contained in Section 5 or Section 6 that
      materially and adversely affects the value of any Mortgage Loan or the interest
      of the Purchaser or the Purchaser’s assignee, transferee or designee (it being
      understood that with respect to the representations and warranties set forth
      in
      the last sentence of (xxxix), (xlvi), the first sentence of (xlvii), (lxi)
      and
      (lxiv) of Section 6 herein, a breach of any such representation or warranty
      shall in and of itself be deemed to materially and adversely affect the interest
      therein of the Purchaser and the Purchaser’s assignee, transferee or designee)
      in any Mortgage Loan, the party discovering the breach shall give prompt written
      notice to the others. Within ninety (90) days of the earlier of the discovery
      or
      the Seller’s receipt of notice of any such missing documentation which was not
      transferred to the Purchaser as described above or materially defective
      documentation or any such breach of a representation and warranty, the Seller
      promptly shall deliver such missing document or cure such defect or breach
      in
      all material respects, or in the event the Seller cannot deliver such missing
      document or such defect or breach cannot be cured, the Seller shall, within
      90
      days of its discovery or receipt of notice, either (i) repurchase the affected
      Mortgage Loan at a price equal to the Purchase Price (as defined in the Pooling
      and Servicing Agreement) or (ii) pursuant to the provisions of the Pooling
      and
      Servicing Agreement, cause the removal of such Mortgage Loan from the Trust
      Fund
      and substitute one or more Qualified Substitute Mortgage Loans; provided,
      however, that in the case of a breach of the representation and warranty
      concerning the Mortgage Loan Schedule contained in Section 6(i), if such breach
      relates to any field on the Mortgage Loan Schedule which identifies any
      Prepayment Charge and such Prepayment Charge has been triggered pursuant to
      the
      terms of the related Mortgage Note, then in lieu of purchasing such Mortgage
      Loan from the Trust Fund at the Purchase Price (as defined in the Pooling and
      Servicing Agreement), the Seller shall pay the amount of the incorrectly
      identified Prepayment Charge (net of any amount previously collected by or
      paid
      to the Trust Fund in respect of such Prepayment Charge), and the Seller shall
      have no obligation to repurchase or substitute for such Mortgage Loan. In the
      event of a substitution permitted hereunder, the Seller shall amend the Closing
      Schedule to reflect the withdrawal of each removed Mortgage Loan from the terms
      of this Agreement and the Pooling and Servicing Agreement and the addition
      of
      the Qualified Substitute Mortgage Loan(s). The Seller shall deliver to the
      Purchaser such amended Closing Schedule and shall deliver such other documents
      as are required by this Agreement or the Pooling and Servicing Agreement within
      five (5) days of any such amendment. Any repurchase pursuant to this Section
      7(a) shall be accomplished by deposit in the Collection Account of the amount
      of
      the Purchase Price (as defined in the Pooling and Servicing Agreement) in
      accordance with Section 2.03 of the Pooling and Servicing Agreement. Any
      repurchase or substitution required by this Section shall be made in a manner
      consistent with Section 2.03 of the Pooling and Servicing Agreement and any
      remedy by the Seller for a breach of a representation or warranty that
      materially and adversely affects the value of any Prepayment Charge shall be
      made in a manner consistent with Section 2.03(c) of the Pooling and Servicing
      Agreement.

     

    
      
        
        

      

      
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    (b)  It
      is
      understood and agreed that the obligations of the Seller set forth in this
      Section 7 to cure, repurchase or substitute for a defective Mortgage Loan
      constitute the sole remedies of the Purchaser against the Seller respecting
      a
      missing or defective document or a breach of the representations and warranties
      contained in Section 5 or Section 6.

     

    
      	SECTION
              8.      	
              Closing;
                Payment for the Mortgage Loans.

            

    

     

    The
      closing of the purchase and sale of the Mortgage Loans and the Trust Swap
      Agreement shall be held at the Seattle office of Heller Ehrman LLP at 9:30
      am
      New York time on the Closing Date (or such other location or time as is mutually
      agreeable to the parties).

     

    The
      Purchaser’s obligation to close the transactions contemplated by this Agreement
      shall be subject to each of the following conditions:

     

    (a)  All
      of
      the representations and warranties of the Seller under this Agreement shall
      be
      true and correct in all material respects as of the date as of which they are
      made and no event shall have occurred which, with notice or the passage of
      time,
      would constitute a default under this Agreement;

     

    
      
        
        

      

      
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    (b)  The
      Purchaser shall have received, or the attorneys of the Purchaser shall have
      received in escrow (to be released from escrow at the time of closing), all
      Closing Documents as specified in Section 9 of this Agreement, in such forms
      as
      are agreed upon and acceptable to the Purchaser, duly executed by all
      signatories other than the Purchaser as required pursuant to the respective
      terms thereof;

     

    (c)  The
      Seller shall have delivered or caused to be delivered and released to the
      Purchaser or to its designee, all documents (including without limitation,
      the
      Mortgage Loans) required to be so delivered by the Purchaser pursuant to Section
      2.01 of the Pooling and Servicing Agreement; and

     

    (d)  All
      other
      terms and conditions of this Agreement to be complied with by Seller, shall
      have
      been complied with.

     

    Subject
      to the foregoing conditions, the Purchaser shall deliver or cause to be
      delivered to the Seller on the Closing Date, against delivery and release by
      the
      Seller to the Trustee of all documents required pursuant to the Pooling and
      Servicing Agreement, the consideration for the Mortgage Loans and the Trust
      Swap
      Agreement as specified in Section 3 of this Agreement, by delivery to the Seller
      of the Purchase Price in immediately available funds and delivery of the Long
      Beach Certificates to the Seller or, upon the direction of the Seller, to Long
      Beach Asset Holdings Corp.

     

    
      	SECTION
              9.      	
              Closing
                Documents.

            

    

     

    Without
      limiting the generality of Section 8 hereof, the closing shall be subject to
      delivery of each of the following documents:

     

    (a)  An
      Officers’ Certificate of the Seller, dated the Closing Date, upon which the
      Purchaser, Greenwich Capital Markets, Inc. (“Greenwich”) and WaMu Capital Corp.
      (“WCC”, and together with Greenwich, the “Co-Representatives”) and the NIMS
      Insurer, if any, may rely and attached thereto copies of the certificate of
      incorporation, bylaws and certificate of good standing of the Seller under
      the
      laws of the State of Delaware;

     

    (b)  An
      Officers’ Certificate of the Seller, dated the Closing Date, upon which the
      Purchaser, the Co-Representatives and the NIMS Insurer, if any, may rely, with
      respect to certain facts regarding the sale of the Mortgage Loans, by the Seller
      to the Purchaser;

     

    (c)  An
      Opinion of Counsel of the Seller (which may be in-house counsel of the Seller),
      dated the Closing Date and addressed to the Purchaser, the Co-Representatives
      and the NIMS Insurer, if any;

     

    (d)  Such
      opinions of counsel as the Rating Agencies, the Co-Representatives, the Trustee
      or the NIMS Insurer, if any, may reasonably request in connection with the
      sale
      of the Mortgage Loans and the Trust Swap Agreement by the Seller to the
      Purchaser or the Seller’s execution and delivery of, or performance under, this
      Agreement;

     

    
      
        
        

      

      
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    (e)  A
      letter
      from Deloitte & Touche L.L.P., certified public accountants, dated the date
      hereof and to the effect that they have performed certain specified procedures
      as a result of which they determined that certain information of an accounting,
      financial or statistical nature set forth in the Prospectus Supplement under
      the
      captions “Summary of Terms—Mortgage Loans,” “Risk Factors,” “The Sponsor,”
“Static Pool Information,” “The Mortgage Pool” and “Yield, Prepayment and
      Maturity Considerations” and in “Appendix A” agrees with the records of the
      Seller;

     

    (f)  The
      Seller shall deliver or make available to the Purchaser for inclusion in the
      Prospectus Supplement under the captions “The Sponsor,” “The Servicers” and
“Static Pool Information” or for inclusion in other offering materials, such
      publicly available information regarding the Seller and Washington Mutual Bank,
      their financial condition, Seller’s underwriting standards, lending activities
      and loan sales, production, static pool information and master servicing
      practices, and Washington Mutual Bank’s servicing and collection practices, and
      any similar nonpublic, unaudited financial information and a computer tape
      with
      respect to the pool information, as the Co-Representatives may reasonably
      request;

     

    (g)  Letters
      from at least two nationally recognized statistical rating agencies rating
      the
      Offered Certificates (as defined in the Prospectus Supplement) and a letter
      from
      at least one nationally recognized statistical rating agency rating the Class
      B
      Certificates; and

     

    (h)  Such
      further information, certificates, opinions and documents as the Purchaser
      or
      the Co-Representatives may reasonably request.

     

    
      	SECTION
              10.     	
              Costs.

            

    

     

    The
      Seller shall pay (or shall reimburse the Purchaser or any other Person to the
      extent that the Purchaser or such other Person shall pay) all costs and expenses
      incurred in connection with the transfer and delivery of the Mortgage Loans
      and
      the Trust Swap Agreement, including without limitation, recording fees, fees
      for
      title policy endorsements and continuations and the fees for recording
      Assignments, the fees and expenses of the Seller’s in-house accountants and
      in-house attorneys; the costs and expenses incurred in connection with
      determining the Seller’s loan loss, foreclosure and delinquency experience, the
      costs and expenses incurred in connection with obtaining the documents referred
      to in Sections 9(d) and 9(e), the cost of an opinion of counsel regarding the
      true sale of the Mortgage Loans and the Trust Swap Agreement and
      non-consolidation of the Seller, the costs and expenses of printing (or
      otherwise reproducing) and delivering this Agreement, the Pooling and Servicing
      Agreement, the Certificates, the prospectus, any Preliminary Prospectus
      Supplement, the Prospectus Supplement, any blue sky filings and private
      placement memorandum relating to the Certificates and other related documents,
      costs and expenses of the Trustee, the fees and expenses of the Purchaser’s
      counsel in connection with the preparation of all documents relating to the
      securitization of the Mortgage Loans, the filing fee charged by the Securities
      and Exchange Commission for registration of the Certificates, the cost of any
      opinions of outside special counsel that may be required for the Seller and
      the
      fees charged by any Rating Agency to rate the Certificates. All other costs
      and
      expenses in connection with the transactions contemplated hereunder shall be
      borne by the party incurring such expense.

     

    
      
        
        

      

      
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      	SECTION
              11.     	
              Servicing.

            

    

     

    The
      Seller has represented to the Purchaser that the Mortgage Loans are being
      serviced in accordance with the terms of the Pooling and Servicing Agreement,
      and it is understood and agreed by and between the Seller and the Purchaser
      that
      any interim servicing arrangements with the Seller will be superseded by the
      servicing arrangements set forth in the Pooling and Servicing
      Agreement.

     

    
      	SECTION
              12.     	
              Mandatory
                Delivery; Grant of Security Interest.

            

    

     

    The
      sale
      and delivery on the Closing Date of the Mortgage Loans and the Trust Swap
      Agreement in accordance with the terms and conditions of this Agreement is
      mandatory. It is specifically understood and agreed that each Mortgage Loan
      is
      unique and identifiable on the Closing Date and that an award of money damages
      would be insufficient to compensate the Purchaser for the losses and damages
      incurred by the Purchaser in the event of the Seller’s failure to deliver the
      Mortgage Loans on or before the Closing Date.

     

    The
      Seller hereby grants to the Purchaser a lien on and a continuing security
      interest in the Seller’s interest in each Mortgage Loan and the Trust Swap
      Agreement, and each document and instrument evidencing each such Mortgage Loan
      and the Trust Swap Agreement to secure the performance by the Seller of its
      obligation hereunder, and the Seller agrees that it holds such Mortgage Loans
      and such Trust Swap Agreement in custody for the Purchaser, subject to (i)
      the
      Purchaser’s right, prior to the Closing Date, to reject any Mortgage Loan to the
      extent permitted by this Agreement and (ii) the Purchaser’s obligation to
      deliver or cause to be delivered the consideration for the Mortgage Loans and
      the Trust Swap Agreement pursuant to Section 8 hereof. Any Mortgage Loan
      rejected by the Purchaser shall concurrently therewith be automatically released
      from the security interest created hereby. The Seller agrees that, upon
      acceptance of the Mortgage Loans and the Trust Swap Agreement by the Purchaser
      or its designee and delivery of payment to the Seller, that any security
      interest held by the Seller in such Mortgage Loans and such Trust Swap Agreement
      shall be released. 

     

    All
      rights and remedies of the Purchaser under this Agreement are distinct from,
      and
      cumulative with, any other rights or remedies under this Agreement or afforded
      by law or equity and all such rights and remedies may be exercised concurrently,
      independently or successively. Notwithstanding the foregoing, if on the Closing
      Date, each of the conditions set forth in Section 8 hereof shall have been
      satisfied and the Purchaser shall not have paid or caused to be paid the
      Purchase Price, or shall not have delivered or caused to be delivered the Long
      Beach Certificates to the Seller or, upon the direction of the Seller, to Long
      Beach Asset Holding Corp., or any such condition shall not have been waived
      or
      satisfied and the Purchaser determines not to pay or cause to be paid the
      Purchase Price or not to deliver or cause to be delivered the Long Beach
      Certificates to the Seller or Long Beach Asset Holding Corp., the Purchaser
      shall immediately effect the re-delivery of the Mortgage Loans and the Trust
      Swap Agreement, if delivery to the Purchaser has occurred and any security
      interest created by this Section 12 shall be deemed to have been
      released.

     

    
      
        
        

      

      
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      	SECTION
              13.     	
              Notices.

            

    

     

    All
      demands, notices and communications hereunder shall be in writing and shall
      be
      deemed to have been duly given if personally delivered to or mailed by
      registered mail, postage prepaid, or transmitted by telex or telegraph and
      confirmed by a similar mailed writing, if to the Purchaser, addressed to the
      Purchaser at 1201 Third Ave., WMT1706, Seattle, Washington 98101, Attn: LBSC
      Legal Counsel, or such other address as may hereafter be furnished to the Seller
      in writing by the Purchaser; if to the Seller, addressed to the Seller at 1201
      Third Ave., WMT1706, Seattle, Washington 98101, Attn: LBMC Legal Counsel, or
      to
      such other address as the Seller may designate in writing to the
      Purchaser.

     

    
      	SECTION
              14.     	
              Severability
                of Provisions.

            

    

     

    Any
      part,
      provision, representation or warranty of this Agreement which is prohibited
      or
      unenforceable or is held to be void or unenforceable in any jurisdiction shall,
      as to such jurisdiction, be ineffective to the extent of such prohibition or
      unenforceability without invalidating the remaining provisions hereof. To the
      extent permitted by applicable law, the parties hereto waive any provision
      of
      law which prohibits or renders void or unenforceable any provision
      hereof.

     

    
      	SECTION
              15.     	
              Agreement
                of Parties.

            

    

     

    The
      Seller and the Purchaser each agree to execute and deliver such instruments
      (including UCC financing statements and continuation statements) and take such
      actions as either of the others may, from time to time, reasonably request
      in
      order to effectuate the purpose and to carry out the terms of this Agreement
      and
      the Pooling and Servicing Agreement.

     

    
      	SECTION
              16.     	
              Survival.

            

    

     

    The
      Seller agrees that the representations, warranties and agreements made by it
      herein and in any certificate or other instrument delivered pursuant hereto
      shall be deemed to be relied upon by the Purchaser and its successors and
      assigns, notwithstanding any investigation heretofore or hereafter made by
      the
      Purchaser or on its behalf, and that the representations, warranties and
      agreements made by the Seller herein or in any such certificate or other
      instrument shall survive the delivery of and payment for the Mortgage Loans
      and
      the Trust Swap Agreement and shall continue in full force and effect,
      notwithstanding any restrictive or qualified endorsement on the Mortgage Notes
      and notwithstanding subsequent termination of this Agreement, the Pooling and
      Servicing Agreement or the Trust Fund.

     

    
      
        
        

      

      
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      	SECTION
              17.     	
              Indemnification,
                Representative.
                

            

    

     

    (a)  The
      Seller indemnifies and holds harmless the Purchaser, the Purchaser’s officers
      and directors and each person,
      if any, who controls the Purchaser within the meaning of Section 15 of the
      Securities Act of 1933, as amended (the “1933 Act”) or Section 20 of the
      Exchange Act of 1934, as amended, (the “Exchange Act”), as follows:

     

    (i)  against
      any and all losses, claims, expenses, damages or liabilities, joint or several,
      to which the Purchaser or such controlling person may become subject under
      the
      1933 Act or otherwise, insofar as such losses, claims, damages or liabilities
      (or actions in respect thereof), including, but not limited to, any loss, claim,
      expense, damage or liability related to purchases and sales of the Class A
      Certificates, the Mezzanine Certificates and the Class B Certificates arise
      out
      of or are based upon any untrue statement or alleged untrue statement of any
      material fact contained in the Preliminary Prospectus Supplement or the
      Prospectus Supplement, in the case of purchases and sales of the Class A
      Certificates and the Mezzanine Certificates, or the Private Placement Memorandum
      relating to the Class B Certificates dated March 1, 2006 (the “Private Placement
      Memorandum”), in the case of purchases and sales of the Class B Certificates, or
      any amendment or supplement thereto, or arise out of, or are based upon, the
      omission or alleged omission to state therein a material fact required to be
      stated therein or necessary to make the statements made therein not misleading;
      and will reimburse, as incurred, the Purchaser and each such controlling person
      for any legal or other expenses reasonably incurred by the Purchaser or such
      controlling person in connection with investigating, defending against or
      appearing as a third party witness in connection with any such loss, claim,
      damage, liability or action as such expenses are incurred; provided, however,
      that the Seller will be liable in any such case only to the extent that any
      such
      loss, claim, damage or liability arises out of or is based upon an untrue
      statement or omission, or alleged untrue statement or omission, made therein
      in
      reliance upon and in conformity with written information furnished to the
      Purchaser by the Seller specifically for use in the preparation thereof (the
      “Seller’s Information”);

     

    (ii)  against
      any and all loss, liability, claim, damage and expense whatsoever, to the extent
      of the aggregate amount paid in settlement of any litigation, or investigation
      or proceeding by any governmental agency or body, commenced or threatened,
      or of
      any claim whatsoever based upon any such untrue statement or omission, or any
      such alleged untrue statement or omission, if such settlement is effected with
      the written consent of the Seller; and

     

    (iii)  against
      any and all expense whatsoever (including the fees and disbursements of counsel
      chosen by the Purchaser, subject to Section 17(c) below), reasonably
      incurred in investigating, preparing or defending against any litigation, or
      investigation or proceeding by any governmental agency or body, commenced or
      threatened, or any claim whatsoever based upon any such untrue statement or
      omission, or any such alleged untrue statement or omission, to the extent that
      any such expense is not paid under clause (i) or clause (ii)
      above.

     

    This
      indemnity agreement will be in addition to any liability which the Seller may
      otherwise have.

     

    (b)  The
      Purchaser agrees to indemnify and hold harmless the Seller, each of its
      directors, each of its officers and each person, if any, who controls the Seller
      within the meaning of Section 15 of the 1933 Act or Section 20 of the
      Exchange Act, against any and all losses, claims, expenses, damages or
      liabilities to which the Seller or any such director, officer or controlling
      person may become subject, under the 1933 Act or otherwise, insofar as such
      losses, claims, damages or liabilities (or actions in respect thereof) arise
      out
      of or are based upon any untrue statement or alleged untrue statement of any
      material fact contained in the
      Preliminary Prospectus Supplement or the Prospectus Supplement, in the case
      of
      purchases and sales of the Class A Certificates and the Mezzanine Certificates,
      or the Private Placement Memorandum, in the case of purchases and sales of
      the
      Class B Certificates, other than in the Seller’s Information, or arise out of,
      or are based upon, the omission or the alleged omission to state therein a
      material fact required to be stated therein or necessary to make the statements
      made therein not misleading, and will reimburse any legal or other expenses
      reasonably incurred by the Seller or any such director, officer or controlling
      person in connection with investigating or defending any such loss, claim,
      damage, liability or action. This indemnity agreement will be in addition to
      any
      liability which the Purchaser may otherwise have.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

       

    

    (c)  Promptly
      after receipt by an indemnified party under this Section 17 of notice of
      the commencement of any action described therein, such indemnified party will,
      if a claim in respect thereof is to be made against the indemnifying party
      under
      this Section 17, notify the indemnifying party of the commencement thereof;
      but the omission so to notify the indemnifying party will not relieve the
      indemnifying party from any liability that it may have to any indemnified party
      under this Section 17 unless the indemnifying party is materially
      prejudiced by such omission to notify and in any event the failure to notify
      the
      indemnifying party shall not relieve it from any liability which it may have
      to
      the indemnified party otherwise than under this Agreement. In case any such
      action is brought against any indemnified party, and it notifies the
      indemnifying party of the commencement thereof, the indemnifying party will
      be
      entitled to participate therein, and, to the extent that it may wish to do
      so,
      jointly with any other indemnifying party similarly notified, to assume the
      defense thereof, with counsel satisfactory to such indemnified party (who shall
      not, except with the consent of the indemnified party (such consent not to
      be
      unreasonably withheld, conditioned or delayed), be counsel to the indemnifying
      party), and, after notice from the indemnifying party to such indemnified party
      under this Section 17, such indemnifying party shall not be liable for any
      legal or other expenses subsequently incurred by such indemnified party in
      connection with the defense thereof other than reasonable costs of investigation
      and preparation for a defense.

     

    Any
      indemnified party shall have the right to employ separate counsel in any such
      action and to participate in the defense thereof, but the fees and expenses
      of
      such counsel shall be at the expense of such indemnified party unless:
      (i) the employment thereof has been specifically authorized by the
      indemnifying party in writing (ii) such indemnified party shall have been
      advised by such counsel that there may be one or more legal defenses available
      to it which are different from or additional to those available to the
      indemnifying party and in the reasonable judgment of such counsel it is
      advisable for such indemnified party to employ separate counsel; (iii) a
      conflict or potential conflict exists (based on advice of counsel to the
      indemnified party) between the indemnified party and the indemnifying party
      (in
      which case the indemnifying party will not have the right to direct the defense
      of such action on behalf of the indemnified party) or (iv) the indemnifying
      party has failed to assume the defense of such action and employ counsel
      reasonably satisfactory to the indemnified party, in which case, if such
      indemnified party notifies the indemnifying party in writing that it elects
      to
      employ separate counsel at the expense of the indemnifying party, the
      indemnifying party shall not have the right to assume the defense of such action
      on behalf of such indemnified party, it being understood, however, the
      indemnifying party shall not, in connection with any one such action or separate
      but substantially similar or related actions in the same jurisdiction arising
      out of the same general allegations or circumstances, be liable for the
      reasonable fees and expenses of more than one separate firm of attorneys (in
      addition to local counsel) at any time for all such indemnified parties, which
      firm shall be designated in writing (i) by the Seller if the indemnified
      parties under this Section 17 consist of the Seller or any of its officers,
      directors or controlling persons, or (ii) the Purchaser, if the indemnified
      party under this Section 17 consist of the Purchaser or any of the
      Purchaser’s directors, officers or controlling persons.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

       

    

    Each
      indemnified party, as a condition of the indemnity agreements contained in
      Section 17(a) and Section 17(b), shall use its reasonable efforts to
      cooperate with the indemnifying party in the defense of any such action or
      claim. No indemnifying party shall be liable for any settlement of any such
      action effected without its written consent (which consent shall not be
      unreasonably withheld, conditioned or delayed), but if settled with its written
      consent or if there be a final judgment for the plaintiff in any such action,
      the indemnifying party agrees to indemnify and hold harmless any indemnified
      party from and against any loss or liability (to the extent set forth in
      Section 17(a) or Section 17(b) as applicable) by reason of such
      settlement or judgment. No indemnifying party shall, without the prior written
      consent of the indemnified party, effect any settlement of any pending or
      threatened action in respect of which any indemnified party is or could have
      been a party and indemnity could have been sought hereunder by such indemnified
      party unless such settlement (i) includes an unconditional release of such
      indemnified party from all liability on any claims that are the subject of
      such
      action and (ii) does not include a statement as to, or an admission of,
      fault, culpability or failure to act by or on behalf of an indemnified
      party.

     

    Notwithstanding
      the foregoing paragraph, if at any time an indemnified party shall have
      requested an indemnifying party to reimburse the indemnified party for fees
      and
      expenses of counsel, the indemnifying party agrees that it shall be liable
      for
      any settlement of any proceeding effected without its written consent if
      (i) such settlement is entered into more than 30 days after receipt by such
      indemnifying party of the aforesaid request and (ii) such indemnifying
      party shall not have reimbursed the indemnified party in accordance with such
      request prior to the date of such settlement.

     

    (d)  If
      the
      indemnification provided for in Section 17(a) or 17(b) is unavailable
      or insufficient to hold harmless an indemnified party under subsection (a)
      or (b) above, then each indemnifying party shall contribute to the amount
      paid or payable by such indemnified party as a result of the losses, claims,
      damages or liabilities referred to in subsection (a) or (b) above
      (i) in such proportion as is appropriate to reflect the relative benefits
      received by the Purchaser on the one hand and the Seller on the other from
      the
      offering of the Class A Certificates, the Mezzanine Certificates and the Class
      B
      Certificates or (ii) if the allocation provided by clause (i) above is
      not permitted by applicable law, in such proportion as is appropriate to reflect
      not only the relative benefits referred to in clause (i) above but also the
      relative fault of the Purchaser on the one hand and the Seller on the other
      in
      connection with the statements or omissions which resulted in such losses,
      claims, damages or liabilities as well as any other relevant equitable
      considerations. If the indemnification provided for in Section 17(b) is
      unavailable or insufficient to hold harmless the indemnified party under
      Section 17(b), then each indemnifying party shall contribute to the amount
      paid or payable by such indemnified party as a result of the losses, claims,
      damages or liabilities referred to in Section 17(b) in such proportion as
      appropriate to reflect the relative fault of the Purchaser on one hand and
      the
      Seller on the other in connection with the statements or omissions which
      resulted in such losses, claims, damages or liabilities as well as any other
      relevant equitable considerations. The relative benefits received by the
      Purchaser on the one hand and the Seller on the other shall be deemed to be
      in
      the same proportion as the total net proceeds from the offering (before
      deducting expenses) received by the Purchaser bear to the total underwriting
      discounts and commissions received by the Underwriters (as defined in the
      Prospectus Supplement) and the total placement fees received by the Initial
      Purchasers (as defined in the Private Placement Memorandum). The relative fault
      shall be determined by reference to, among other things, whether the untrue
      or
      alleged untrue statement of a material fact or the omission or alleged omission
      to state a material fact relates to information supplied by the Purchaser or
      by
      the Seller and the parties’ relative intent, knowledge, access to information
      and opportunity to correct or prevent such untrue statement or omission. The
      amount paid by an indemnified party as a result of the losses, claims, damages
      or liabilities referred to above in the first sentence of this
      subsection (d) shall be deemed to include any legal or other expenses
      reasonably incurred by such indemnified party in connection with investigating
      or defending any action or claim which is the subject of this
      subsection (d). No person guilty of fraudulent misrepresentation (within
      the meaning of Section 11(f) of the 1933 Act) shall be entitled to
      contribution from any person who was not guilty of such fraudulent
      misrepresentation.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

       

    

    
      	SECTION
              18.     	
              Representations
                and Warranties of the Seller Relating to the Trust Swap
                Agreement.

            

    

     

    The
      Seller hereby represents and warrants to the Purchaser, that as of the Closing
      Date with respect to the Trust Swap Agreement:

     

    (a)  Immediately
      prior to the novation of the Trust Swap Agreement to the Purchaser, the Seller
      had good title to, and was the sole legal and beneficial owner of, the Trust
      Swap Agreement, free and clear of any pledge, lien, security interest, charge,
      claim, equity or encumbrance of any kind created by the Seller, and has full
      right and authority, subject to no interest or participation of, or agreement
      with, any other party to sell, assign and novate the same. Upon the delivery,
      transfer or novation of the Trust Swap Agreement to the Purchaser as
      contemplated herein, the Purchaser will receive the Trust Swap Agreement, free
      and clear of any pledge, lien, security interest, charge, claim, equity or
      encumbrance of any kind created by the Seller;

     

    (b)  The
      Trust
      Swap Agreement constitutes “general intangibles” within the meaning of the
      applicable UCC;

     

    (c)  The
      Seller has received all consents and approvals required by the terms of the
      Trust Swap Agreement for the sale of such Trust Swap Agreement hereunder to
      the
      Purchaser;

     

    (d)  The
      Seller has caused or will have caused, within ten days after the Closing Date,
      the filing of all appropriate financing statements in the proper filing office
      in the appropriate jurisdictions under applicable law as necessary to perfect
      the security interest in the Trust Swap Agreement granted to the Purchaser
      hereunder; and

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

       

    

    (e)  The
      Seller has not authorized the filing of and is not aware of any financing
      statements against Seller that include a description of collateral covering
      either of the Trust Swap Agreement other than any financing statement
      (a) relating to the security interest granted to the Purchaser hereunder or
      (b) that has been terminated.

     

    
      	SECTION
              19.     	
              Governing
                Law.

            

    

     

    THIS
      AGREEMENT AND THE RIGHTS, DUTIES, OBLIGATIONS AND RESPONSIBILITIES OF THE
      PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
      AND DECISIONS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF
      LAW
      PRINCIPLES. THE PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401
      OF
      THE NEW YORK GENERAL OBLIGATIONS LAW SHALL APPLY TO THIS AGREEMENT.

     

    
      	SECTION
              20.     	
              Miscellaneous.

            

    

     

    This
      Agreement may be executed in two or more counterparts, each of which when so
      executed and delivered shall be an original, but all of which together shall
      constitute one and the same instrument. This Agreement shall inure to the
      benefit of and be binding upon the parties hereto and their respective
      successors and assigns. This Agreement supersedes all prior agreements and
      understandings relating to the subject matter hereof. Neither this Agreement
      nor
      any term hereof may be changed, waived, discharged or terminated orally, but
      only by an instrument in writing signed by the party against whom enforcement
      of
      the change, waiver, discharge or termination is sought. The headings in this
      Agreement are for purposes of reference only and shall not limit or otherwise
      affect the meaning hereof.

     

    It
      is the
      express intent of the parties hereto that the conveyance of the Mortgage Loans
      and the Trust Swap Agreement by the Seller to the Purchaser as provided in
      Section 4 hereof be, and be construed as, a sale of the Mortgage Loans and
      the
      Trust Swap Agreement by the Seller to the Purchaser and not as a pledge of
      the
      Mortgage Loans and the Trust Swap Agreement by the Seller to the Purchaser
      to
      secure a debt or other obligation of the Seller. However, in the event that,
      notwithstanding the aforementioned intent of the parties, the Mortgage Loans
      and
      the Trust Swap Agreement are held to be property of the Seller, then, (a) it
      is
      the express intent of the parties that such conveyance be deemed a pledge of
      the
      Mortgage Loans and the Trust Swap Agreement by the Seller to the Purchaser
      to
      secure a debt or other obligation of the Seller and (b) (1) this Agreement
      shall
      also be deemed to be a security agreement within the meaning of Articles 8
      and 9
      of the New York Uniform Commercial Code; (2) the conveyance provided for in
      Section 4 hereof shall be deemed to be a grant by the Seller to the Purchaser
      of
      a security interest in all of the Seller’s right, title and interest in and to
      the Mortgage Loans, the Trust Swap Agreement and all amounts payable to the
      holders of the Mortgage Loans and the Trust Swap Agreement 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, including
      without limitation all amounts, other than investment earnings, from time to
      time held or invested in the Collection Account whether in the form of cash,
      instruments, securities or other property; (3) the possession by the Purchaser
      or its agent of the Mortgage Notes, the Trust Swap Agreement, the related
      Mortgages and such other items of property that 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 of the New York Uniform Commercial Code; and (4) 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 Section 4(d) hereof shall also be deemed to be an
      assignment of any security interest created hereby. The Seller and the Purchaser
      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 Mortgage Loans and the Trust Swap Agreement, such security
      interest would be deemed to be a perfected security interest of first priority
      under applicable law and will be maintained as such throughout the term of
      this
      Agreement and the Pooling and Servicing Agreement.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

       

    

    
      	SECTION
              21.     	
              Third
                Party Beneficiary.

            

    

     

    Each
      of
      the Trustee and the NIMS Insurer, if any, shall be a third-party beneficiary
      hereof (except with respect to Section 17) and shall be entitled to enforce
      the provisions hereof as if a party hereto, except the provisions of
      Section 17 hereof. The Co-Representatives, on behalf of the Underwriters
      (as defined in the Prospectus Supplement), and the Initial Purchasers, shall
      be
      third-party beneficiaries hereof solely with respect to Section 17 and shall
      be
      entitled to enforce the provisions of Section 17 as if it were a party
      hereto.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

       

    

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

     

    
      
        	 	 	 
	 	LONG
                BEACH
                SECURITIES CORP.
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Name: James
                Mark
	 	Title: Authorized
                Officer

      

    
      	 	 	 
	 	LONG
              BEACH
              MORTGAGE COMPANY
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name: James
              Mark
	 	Title: First
              Vice President

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A TO MORTGAGE LOAN PURCHASE AGREEMENT

    

    STANDARD
      & POOR’S LEVELS®
      GLOSSARY in effect on the CLOSING DATE

    

    As
      of
      March 7, 2006 

    

    APPENDIX
      E TO GLOSSARY FOR FILE FORMAT FOR LEVELS® VERSION 5.6c: Standard & Poor’s
      Anti-Predatory Lending Categorization

    

    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

            

    

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

       

      
        
          Standard
            & Poor’s High Cost 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

            	
               

              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

            
	
               

              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

            

    

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

    
       

      
        
          Standard
            & Poor’s High Cost Loan Categorization

        

      

       

    

    
      	 	 	 
	
               State/Jurisdiction

            	
               Name
                of Anti-Predatory Lending
                Law/Effective Date

            	
               Category
                under Applicable Anti-Predatory
                Lending Law

            
	
               

              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-l

               

              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

            
	
               

              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

            

    

     

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

       

    

    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

            

    

     

     

    
      
         

      

      
        A-4

        
          

        

      

      
         

      

    

     

    
      	
            	 	 
	
              State/Jurisdiction

            	
              Name
                of Anti-Predatory Lending Law/Effective Date

            	
              Category
                under Applicable Anti-Predatory Lending
                Law

            

    

    
      	
               

              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

            

    

     

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

    
 

    SCHEDULE
      A

    

    Trust
      Swap Agreement

     

    
      	
              Provider

            	
              Transaction
                Reference

            
	 	 
	
              Bank
                of America, N.A.

            	
              13639381(Multicurrency—Cross
      Border)

     

     

    ISDAÒ

    International
      Swap Dealers Association, Inc.

     

    MASTER
      AGREEMENT

     

    dated
      as
      of March 7, 2006

     

    
      	
              Bank
                of America, N.A.

              (“Party
                A”)

            	
              and

               

            	
              Long
                Beach Mortgage Loan Trust 2006-2

              (“Party
                B”)

            

    

     

    have
      entered and/or anticipate entering into one or more transactions (each a
“Transaction”) that are or will be
      governed by this Master Agreement, which includes the schedule (the “Schedule”),
      and the documents and
      other
      confirming evidence (each a “Confirmation”) exchanged between the parties
      confirming those Transactions.

     

    Accordingly,
      the parties agree as follows:—

     

    1.  Interpretation

     

    (a)  Definitions.
      The
      terms defined in Section 14 and in the Schedule will have the meanings therein
      specified for the purpose of this Master Agreement.

     

    (b)  Inconsistency.
      In the
      event of any inconsistency between the provisions of the Schedule and the other
      provisions of this Master Agreement, the Schedule will prevail. In the event
      of
      any inconsistency between the provisions of any Confirmation and this Master
      Agreement (including the Schedule), such Confirmation will prevail for the
      purpose of the relevant Transaction.

     

    (c)  Single
      Agreement.
      All
      Transactions are entered into in reliance on the fact that this Master Agreement
      and all Confirmations form a single agreement between the parties (collectively
      referred to as this
      “Agreement”), and the parties would not otherwise enter into any
      Transactions.

     

    2.  Obligations

     

    (a)  General
      Conditions.

     

    (i)  Each
      party will make each payment or delivery specified in each Confirmation to
      be
      made by it, subject to the other provisions
      of this
      Agreement.

     

    (ii)  Payments
      under this Agreement will be made on the due date for value on that date in
      the
      place of
      the
      account specified in the relevant Confirmation or otherwise pursuant to this
      Agreement, in freely transferable funds and in the manner customary for payments
      in the required currency. Where
      settlement is by delivery (that is, other than by payment), such delivery will
      be made for
      receipt
      on the due date in the manner customary for the relevant obligation unless
      otherwise specified in the relevant Confirmation or elsewhere in this
      Agreement.

     

    (iii)  Each
      obligation of each party under Section 2(a)(i) is subject to (1) the condition
      precedent that
      no
      Event of Default or Potential Event of Default with respect to the other party
      has occurred and
      is
      continuing, (2) the condition precedent that no Early Termination Date in
      respect of the relevant Transaction has occurred or been effectively designated
      and (3) each other applicable condition precedent specified in this
      Agreement.

     

     

    Copyright
      © 1992 by International Swap Dealers Association, Inc.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    value
      of
      that which was (or would have been) required to be delivered as of the
      originally scheduled date for
      delivery, in each case together with (to the extent permitted under applicable
      law) interest, in the currency, of
      such
      amounts, from (and including) the date such amounts or obligations were or
      would
      have been required to
      have
      been paid or performed to (but excluding) such Early Termination Date, at the
      Applicable Rate. Such amounts
      of interest will be calculated on the basis of daily compounding and the actual
      number of days elapsed.
      The fair market value of any obligation referred to in clause (b) above shall
      be
      reasonably determined
      by the party obliged to make the determination under Section 6(e) or, if each
      party is so obliged, it
      shall
      be the average of the Termination Currency Equivalents of the fair market values
      reasonably determined
      by both parties.

     

    IN
      WITNESS WHEREOF the parties have executed this document on the respective dates
      specified below with
      effect from the date specified on the first page of this document.

     

    
      	Bank
              of America, N.A. 	 	Long
              Beach
              Mortgage Loan Trust 2006-2 
	 	 	 	 
	 	 	By
              Deutsche Bank National Trust Company, not
              in its individual capacity but solely as
              Trustee on behalf of the Trust
	 	 	 	 
	By:	 	 	By:	 
	 	
              

            	 	 	
              

            
	 	Name:
Title:
Date:	 	 	Name:
Title:
Date:

    

    
      	 	 	 	 	 
	 	 	 	By:	 
	 	
            	 	 	
              

            
	 	 	 	 	Name:
Title:
Date:

    

     

    Rate
      Swap Schedule

    

    

    

    

    

    SCHEDULE
      

    to
      the

    Master
      Agreement

    

    

    dated
      as
      of March 7, 2006

    

    between

    

    

    

    

    
      	
              BANK
                OF AMERICA, N.A.

            	
               

               

              and

            	
              LONG
                BEACH MORTGAGE LOAN TRUST 2006-2

               

            
	
              _______________________________________

              ("Party
                A")

            	 	
              _________________________________________

              ("Party
                B")

            

    

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

    Part
      1

     

    Termination
      Provisions.

     

    
      	(a)   
              	
              "Specified
                Entity"
                means in relation to Party A for the purpose
                of:

            

    

     

    Section
      5(a)(v), Not
      applicable

    Section
      5(a)(vi), Not
      applicable

    Section
      5(a)(vii), Not
      applicable

    Section
      5(b)(iv), Not
      applicable

     

    and
      in
      relation to Party B for the purpose of:

     

    Section
      5(a)(v), Not
      applicable

    Section
      5(a)(vi), Not
      applicable

    Section
      5(a)(vii), Not
      applicable

    Section
      5(b)(iv), Not
      applicable

     

    
      	(b)   	
              "Specified
                Transaction"
                will have the meaning specified in Section 14 of this
                Agreement.

            

    

     

    
      	(c)   
              	
              Certain
                Events of Default.
                The following Events of Default will apply to the parties as specified
                below, and the definition of "Event of Default" in Section 14 is
                deemed to
                be modified accordingly:

            

    

     

    Section
      5(a)(i) (Failure
      to Pay or Deliver)
      will
      apply to Party A and Party B.

    Section
      5(a)(ii) (Breach
      of Agreement)
      will
      not apply to Party A or Party B.

    Section
      5(a)(iii) (Credit
      Support Default)
      will
      not apply to Party A or Party B. 

    Section
      5(a)(iv) (Misrepresentation)
      will
      not apply to Party A or Party B. 

    Section
      5(a)(v) (Default
      under Specified Transaction)
      will
      not apply to Party A or Party B.

    Section
      5(a)(vi) (Cross
      Default)
      will
      not apply to Party A or Party B.

    Section
      5(a)(vii) (Bankruptcy)
      will
      apply to Party A and Party B; provided that clause (2) thereof shall not apply
      to Party B.

    Section
      5(a)(viii) (Merger
      without Assumption)
      will
      apply to Party A and will not apply to Party B.

     

    
      	(d)   	
              Termination
                Events.
                The following Termination Events will apply to the parties as specified
                below:

            

    

     

    Section
      5(b)(i) (Illegality)
      will
      apply to Party A and Party B.

    Section
      5(b)(ii) (Tax
      Event)
      will
      apply to Party A and Party B.

    Section
      5(b)(iii) (Tax
      Event upon Merger)
      will
      apply to Party A and will not apply to Party B.

    Section
      5(b)(iv) (Credit
      Event upon Merger)
      will
      not apply to Party A or Party B.

    

    
      	(e)   	
              The
                "Automatic
                Early Termination"
                provision of Section 6(a) of this Agreement will not apply to Party
                A or
                Party B.

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

       

    

    
      	
              (f)   

            	
              Payments
                on Early Termination.
                For the purpose of Section 6(e) of this
                Agreement:

            

    

     

    
      	 	
              (i)

            	
              Loss
                will apply.

            

    

     

    
      	 	
              (ii)

            	
              The
                Second Method will apply.

            

    

     

    
      	(g)   
              	
              "Termination
                Currency"
                means United States Dollars.

            

    

     

    
      	(h)   
              	
              Additional
                Termination Events.
                The following Additional Termination Events will apply, in each case
                with
                respect to Party B as the sole Affected Party (unless otherwise provided
                below): 

            

    

     

    
      	
            	(i)	
              Party
                A fails to comply with the Downgrade Provisions as set forth in Part
                5(b).
                For all purposes of this Agreement, Party A shall be the sole Affected
                Party with respect to the occurrence of a Termination Event described
                in
                this Part 1(h)(i).

            

    

     

    
      	 	
              (ii)

            	
              The
                Pooling and Servicing Agreement dated
                as of March 1, 2006 among Long Beach Securities Corp. as Depositor,
                Long
                Beach Mortgage Company as Master Servicer and Deutsche Bank National
                Trust
                Company as Trustee for the Trust (the "Trustee")
                as
                amended and supplemented from time to time (the
                "PSA")
                or
                other transaction document is amended or modified without the prior
                written consent of Party A, where such consent is required under
                the terms
                of the PSA or if such amendment and/or modification would materially
                and
                adversely affect any of Party A’s rights or obligations under this
                Agreement.

            

    

     

    
      	 	
              (iii)

            	
              The
                Trust is terminated pursuant to
                PSA.

            

    

     

    
      	 	
              (iv)

            	
              The
                deposit of the Termination Price by the Terminator with the Trust
                pursuant
                to Section 9.01
                of
                the PSA on a date that is no later than the Determination Date in
                the
                month immediately preceding the Distribution Date in which the
                Certificates will be retired; provided that the Early Termination
                Date may
                not occur until a date that is no earlier than the Business Day after
                the
                Distribution Date falling in the month immediately preceding the
                Distribution Date on which the Certificates will
                be retired
                pursuant to Section 9.01 of the
                PSA.

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

       

    

    Part
      2

     

    Tax
      Representations.

     

    
      	(a)	
              Payer
                Representations.
                For the purpose of Section 3(e) of this Agreement, Party A will make
                the
                following representation and Party B will make the following
                representation:

            

    

     

    It
      is not
      required by any applicable law, as modified by the practice of any relevant
      governmental revenue authority, of any Relevant Jurisdiction to make any
      deduction or withholding for or on account of any Tax from any payment (other
      than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to be
      made
      by it to the other party under this Agreement. In making this representation,
      it
      may rely on (i) the accuracy of any representations made by the other party
      pursuant to Section 3(f) of this Agreement, (ii) the satisfaction of the
      agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the
      accuracy and effectiveness of any document provided by the other party pursuant
      to Section 4(a)(i) or 4(a)(iii) of this Agreement and (iii) the satisfaction
      of
      the agreement of the other party contained in Section 4(d) of this Agreement,
      provided that it shall not be a breach of this representation where reliance
      is
      placed on clause (ii) and the other party does not deliver a form or document
      under Section 4(a)(iii) of this Agreement by reason of material prejudice to
      its
      legal or commercial position.

     

    
      	(b)	
              Payee
                Representations.
                For the purpose of Section 3(f) of this Agreement, Party A and Party
                B
                make the representations specified below, if
                any:

            

    

     

    
      	(i)  	
              Party
                A makes the following representation to Party B: Party A is a national
                banking association organized under the laws of the United
                States.

            

    

    

    
      	(ii)  	
              Party
                B makes
                no representations for the purpose of Section 3(f) of this
                Agreement.

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

       

    

    Part
      3

     

    Agreement
      to Deliver Documents.

     

    For
      the
      purpose of Sections 4(a)(i) and (ii) of this Agreement, each party agrees to
      deliver the following documents, as applicable:

     

    
      	(a)	
              Tax
                forms, documents or certificates to be delivered are:— Party B: An
                executed U.S. Internal Revenue Service Form W-9 (or any successor
                thereto).

            

    

     

    
      	(b)	
              Other
                documents to be delivered are:— 

            

    

     

    
      	 	 	 	 
	
              Party
                required to deliver document

            	
              Form/Document/Certificate

            	
              Date
                by which to be delivered

            	
              Covered
                by Section 3(d)
                Representation

            
	
              Party
                A 

               

            	
              Certified
                copy of the board of directors resolution (or equivalent authorizing
                documentation) which sets forth the authority of each signatory to
                this
                Agreement and each Credit Support Document (if any) signing on its
                behalf
                and the authority of such party to enter into Transactions contemplated
                and performance of its obligations hereunder.

               

            	
              Concurrently
                with the execution and delivery of this Agreement.

               

            	
              Yes

               

            
	
              Party
                A and Party B

               

            	
              Incumbency
                certificate (or, if available the current authorized signature book
                or
                equivalent authorizing documentation) specifying the names, titles,
                authority and specimen signatures of the persons authorized to execute
                this Agreement which sets forth the specimen signatures of each signatory
                to this Agreement, each Confirmation and each Credit Support Document
                (if
                any) signing on its behalf.

               

            	
              Concurrently
                with the execution and delivery of this Agreement unless previously
                delivered and still in full force and effect.

               

            	
              Yes

               

            
	
              Party
                A and B

               

            	
              An
                opinion of counsel to such party reasonably satisfactory in form
                and
                substance to the other party.

               

            	
              Concurrently
                with the execution and delivery of the Confirmation unless previously
                delivered and still in full force and effect.

               

            	
              No

               

            
	
              Party
                B

               

            	
              An
                executed copy of the PSA.

               

            	
              Within
                30 days after the date of this Agreement.

               

            	
              Yes

               

            
	
              Party
                B

               

            	
              Copy
                of each report/notice delivered under the PSA.

               

            	
              Upon
                availability.

               

            	
              Yes

               

            

    

    

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

       

    

    Part
      4.

     

    Miscellaneous.

     

    
      	(a)	
              Addresses
                for Notices.
                For the purposes of Section 12(a) of this Agreement:
                

            

    

     

    Party
      A:

     

    Bank
      of
      America, N.A.

    Sears
      Tower

    233
      South
      Wacker Drive, Suite 2800

    Chicago,
      IL 60606

    Attention:
      Swap Operations

    Telephone
      No.: 312-234-2732

    Facsimile
      No.: 312-234-3603

    

    with
      a
      copy to:

    

    Bank
      of
      America, N.A.

    100
      N.
      Tryon St. NC1-007-13-01

    Charlotte,
      North Carolina 28255

    Attention:
      Capital Markets Documentation

    Facsimile
      No.: 704-386-4113

    

    (For
      all
      purposes)

    

    Party
      B:          Long
      Beach Mortgage Loan Trust 2006-2

    

    c/o:    Deutsche
      Bank National Trust Company

    1761
      East
      St. Andrew Place, 

    Santa
      Ana, 

    California
      92705-4934

    Attention:
      Long Beach Mortgage Loan Trust 2006-2

     

    
      	(b)	
              Process
                Agent. For
                the purposes of Section 13(c) of this
                Agreement:

            

    

     

    Party
      A
      appoints as its Process Agent: Not applicable.

     

    Party
      B
      appoints as its Process Agent: Not applicable.

     

    
      	(c)	
              Offices.
                With respect to Party A, the provisions of Section 10(a) will apply
                to
                this Agreement.

            

    

     

    
      	(d)	
              Multibranch
                Party.
                For the purpose of Section 10(c) of this
                Agreement:

            

    

     

    Party
      A
      is a Multibranch Party and may act through its Charlotte, North Carolina,
      Chicago, Illinois, San Francisco, California, New York, New York, Boston,
      Massachusetts or London, England Office, or such other Office as may be agreed
      to by the parties in connection with a Transaction.

    

    Party
      B
      is not a Multibranch Party.

     

    
      	(e)	
              Calculation
                Agent.
                The Calculation Agent is Party A.

            

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

       

    

    
      	(f)	
              Credit
                Support Document.
                Credit Support Document means 

            

    

     

    With
      respect to Party A: Not applicable.

     

    With
      respect to Party B: The PSA.

     

    
      	(g)	
              Credit
                Support Provider.

            

    

     

    Credit
      Support Provider means in relation to Party A: Not applicable.

     

    Credit
      Support Provider means in relation to Party B: Not applicable.

     

    
      	(h)	
              Governing
                Law.
                This Agreement will be governed by and construed in accordance with
                the
                laws of the State of New York (without reference to choice of law
                doctrine
                other than New York General Obligation Law Sections 5-1401 and
                5-1402).

            

    

     

    
      	(i)	
              Netting
                of Payments.
                Subparagraph (ii) of Section 2(c) of this Agreement will apply to
                all
                Transactions.

            

    

     

    
      	(j)	
              "Affiliate."
                Each of Party A and Party B shall be deemed to have no
                Affiliates.

            

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

       

    

    Part
      5.

     

    Other
      Provisions.

     

    
      	(a)	
              Definitions. 

            

    

     

    Any
      capitalized terms used but not otherwise defined in this Agreement shall have
      the meanings assigned to them (or incorporated by reference) in the PSA. In
      the
      event of any inconsistency between the terms of this Agreement and the terms
      of
      the PSA, this Agreement will govern.

     

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    
      	(b)	
              Downgrade
                Provisions. 

            

    

    

    (1) It
      shall be a collateralization event (a "Collateralization
      Event")
      if (A) (i) the unsecured, unguaranteed and otherwise unsupported long-term
      senior debt obligations of Party A are rated below "A1" by Moody's
      Investors Service, Inc. ("Moody's")
      or are rated "A1" by Moody's and such rating is on watch for possible downgrade
      (but only for so long as it is on watch for possible downgrade) and
      (ii) the unsecured, unguaranteed and otherwise unsupported short-term debt
      obligations of Party A are rated below "P-1" by Moody's or are rated "P-1"
      by Moody's and such rating is on watch for possible downgrade (but only for
      so
      long as it is on watch for possible downgrade), (B) no short-term rating is
      available from Moody's and the unsecured, unguaranteed and otherwise unsupported
      long-term senior debt obligations of Party A are rated below "Aa3" by
      Moody's or are rated "Aa3" by Moody's and such rating is on watch for possible
      downgrade (but only for so long as it is on watch for possible downgrade),
      (C)
      either (i) the unsecured, unguaranteed and otherwise unsupported short-term
      debt
      obligations of Party A are rated below "A-1" by Standard & Poor's
      Rating Services, a division of The McGraw-Hill Companies, Inc.
      ("S&P")
      or (ii) if Party A does not have a short-term rating from S&P, the
      unsecured, unguaranteed and otherwise unsupported long-term senior debt
      obligations of Party A are rated below "A+" by S&P or (D)
either
      (i) the unsecured, unguaranteed and otherwise unsupported long-term senior
      debt
      obligations of Party A are rated at least “BBB+” by Fitch, Inc. (“Fitch”) or
      (ii) the unsecured, unguaranteed and otherwise unsupported short-term debt
      obligations of Party A are rated at least “F-2” by Fitch.
      For the avoidance of doubt, the parties hereby acknowledge and agree that
      notwithstanding the occurrence of a Collateralization Event, this Agreement
      and
      each Transaction hereunder shall continue to qualify as a Swap Agreement for
      purposes of the distribution priorities in Article IV of the PSA. Within 30
      days
      from the date a Collateralization Event has occurred and so long as such
      Collateralization Event is continuing, Party A shall, at its own expense,
      and subject to satisfaction of the Rating Agency Condition either (i) post
      collateral according to the terms of the 1994 ISDA Credit Support Annex to
      this
      Schedule , including Paragraph 13, thereof (the "Credit
      Support Annex"),
      (ii) furnish a guarantee of Party A's obligations under this Agreement from
      a
      guarantor with a long-term credit rating greater than or equal to "A+" by
      S&P and "Aa3" by Moody's, or (iii) obtain a substitute counterparty that (a)
      is reasonably acceptable to Party B, (b) satisfies the Hedge Counterparty
      Ratings Requirement (as defined herein) and (c) assumes the obligations of
      Party A under this Agreement (through an assignment and assumption
      agreement in form and substance reasonably satisfactory to Party B) or
      replaces the outstanding Transactions hereunder with transactions on identical
      terms, except that Party A shall be replaced as counterparty, provided that
      such substitute counterparty, as of the date of such assumption or replacement,
      must not, as a result thereof, be required to withhold or deduct on account
      of
      tax under the Agreement or the new transactions, as applicable, and such
      assumption or replacement must not lead to a termination event or event of
      default occurring in respect of the new transactions, as applicable. To the
      extent that Party A elects or is required to post collateral pursuant to this
      Part 5(b)(1), Party A shall request its legal counsel to deliver to each
      applicable Rating Agency within thirty (30) calendar days of the occurrence
      of
      such Collateralization Event an opinion as to the enforceability of the Credit
      Support Annex. 

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

       

    

    (2) It
      shall be a ratings event (a "Ratings
      Event")
      if at any time after the date hereof Party A shall fail to satisfy the
      Hedge Counterparty Ratings Threshold. "Hedge
      Counterparty Ratings Threshold"
      shall mean (A) the unsecured, unguaranteed and otherwise unsupported long-term
      senior debt obligations of Party A are rated at least "BBB-" by S&P,
      (B) the unsecured, unguaranteed and otherwise unsupported long-term senior
      debt
      obligations of Party A are rated at least "A3" by Moody's (and such rating
      is not on watch for possible downgrade) and the unsecured, unguaranteed and
      otherwise unsupported short-term debt obligations of Party A are rated at
      least "P-2" by Moody's
      (and such rating is not on watch for possible downgrade),
      and (C)
      either (i) the unsecured, unguaranteed and otherwise unsupported long-term
      senior debt obligations of Party A are rated at least "BBB+" by Fitch, Inc.
      ("Fitch")
      or (ii) the unsecured, unguaranteed and otherwise unsupported short-term debt
      obligations of Party B are rated at least "F2" by Fitch. For the avoidance
      of all doubts, the parties hereby acknowledge and agree that notwithstanding
      the
      occurrence of a Ratings Event, this Agreement and each Transaction hereunder
      shall continue to qualify as a Swap Agreement for purposes of the distribution
      priorities in Section 4.01 of the PSA. 

     

    (3) Following
      a Ratings Event, Party A shall take the following
      actions:

     

    Within
      30 days (or, in the case of a failure to meet the requirements of subparagraph
      (A) of the definition of “Hedge Counterparty Ratings Threshold”, within 10
      business days) of the Ratings Event, Party A, at its sole expense, shall
      (i) obtain a substitute counterparty that (A) satisfies the Rating Agency
      Condition, (B) satisfies the Hedge Counterparty Ratings Requirement and (C)
      assumes the obligations of Party A under this Agreement (through an
      assignment and assumption agreement in form and substance reasonably
      satisfactory to Party B) or replaces the outstanding Transactions hereunder
      with transactions on identical terms, except that Party A shall be replaced
      as counterparty, provided that such substitute counterparty, as of the date
      of
      such assumption or replacement, must not, as a result thereof, be required
      to
      withhold or deduct on account of tax under the Agreement or the new
      transactions, as applicable, and such assumption or replacement must not lead
      to
      a termination event or event of default occurring in respect of the new
      transactions, as applicable, and (ii) on or prior to the expiration of such
      period, post collateral according to the terms of the Credit Support Annex.
      Notwithstanding anything contained herein to the contrary, if Party A is
      required to transfer its rights and obligations under this Agreement pursuant
      to
      this Part 5(b)(3) as a result of a rating issued by S&P, Party A shall, at
      all times prior to such transfer, be required to post collateral in accordance
      with (i) the terms of the Credit Support Annex or (ii) an agreement with Party
      B
      providing for the posting of collateral, which agreement shall satisfy the
      Rating Agency Condition specified in Part 5(n) below and require Party A to
      post
      the required collateral.

     

    "Hedge
      Counterparty Ratings Requirement"
      shall
      mean (a) either (i) the unsecured, unguaranteed and otherwise unsupported
      short-term debt obligations of the substitute counterparty are rated at least
      "A-1" by S&P or (ii) if the substitute counterparty does not have a
      short-term rating from S&P, the unsecured, unguaranteed and otherwise
      unsupported long-term senior debt obligations of the substitute counterparty
      are
      rated at least "A+" by S&P, (b) either (i) the unsecured, unguaranteed and
      otherwise unsupported long-term senior debt obligations of such substitute
      counterparty are rated at least "A1" by Moody's (and if rated "A1" by Moody's,
      such rating is not on watch for possible downgrade) and the unsecured,
      unguaranteed and otherwise unsupported short-term debt obligations of such
      substitute counterparty are rated at least "P-1" by Moody's (and if rated "P-1"
      by Moody's, such rating is not on watch for possible downgrade and remaining
      on
      watch for possible downgrade), or (ii) if such substitute counterparty does
      not
      have a short-term debt rating from Moody's, the unsecured, unguaranteed and
      otherwise unsupported long-term senior debt obligations of such substitute
      counterparty are rated at least "Aa3" by Moody's (and if rated "Aa3" by Moody's,
      such rating is not on watch for possible downgrade), and (c) either (i) the
      unsecured, unguaranteed and otherwise unsupported long-term senior debt
      obligations of such substitute counterparty are rated at least "A" by Fitch
      or
      (ii) the unsecured, unguaranteed and otherwise unsupported short-term debt
      obligations of such substitute counterparty are rated at least "F1" by Fitch.
      For the purpose of this definition, no direct or indirect recourse against
      one
      or more shareholders of the substitute counterparty (or against any Person
      in
      control of, or controlled by, or under common control with, any such
      shareholder) shall be deemed to constitute a guarantee, security or support
      of
      the obligations of the substitute counterparty.

    

    
      	(c)	
              Section
                3(a) of this Agreement is hereby amended to include the following
                additional representations after paragraph
                3(a)(v):

            

    

     

    
      	
            	(vi)	
              Eligible
                Contract Participant.
                It
                is an "eligible contract participant" as defined in section 1a(12)
                of the
                U.S. Commodity Exchange Act.

            

    

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

       

    

    
      	
            	(vii)	
              Individual
                Negotiation.
                This Agreement and each Transaction hereunder is subject to individual
                negotiation by the parties.

            

    

     

    
      	
            	(viii)	
              Relationship
                between Party A and Party B.
                Subject as provided in Part 5(g), each of Party A and Party B will
                be
                deemed to represent to the other on the date on which it enters into
                a
                Transaction or an amendment thereof that (absent a written agreement
                between Party A and Party B that expressly imposes affirmative obligations
                to the contrary for that
                Transaction):

            

    

     

    
      	
            	(1)	
              Principal.
                It
                is acting as principal and not as agent when entering into this Agreement
                and each Transaction. 

            

    

     

    
      	
            	(2)	
              Non-Reliance.
                It
                is acting for its own account and it has made its own independent
                decisions to enter into that Transaction and as to whether that
                Transaction is appropriate or proper for it based upon its own judgment
                and upon advice from such advisors as it has deemed necessary. It
                is not
                relying on any communication (written or oral) of the other party
                as
                investment advice or as a recommendation to enter into that Transaction;
                it being understood that information and explanations related to
                the terms
                and conditions of a Transaction shall not be considered investment
                advice
                or a recommendation to enter into that Transaction. No communication
                (written or oral) received from the other party shall be deemed to
                be an
                assurance or guarantee as to the expected results of that
                Transaction.

            

    

     

    
      	
            	(3)	
              Evaluation
                and Understanding. It
                is capable of evaluating and understanding (on its own behalf or
                through
                independent professional advice), and understands and accepts, the
                terms,
                conditions and risks of this Agreement and each Transaction hereunder.
                It
                is also capable of assuming, and assumes, all financial and other
                risks of
                this Agreement and each Transaction hereunder.

            

    

     

    
      	
            	(4)	
              Status
                of Parties. The
                other party is not acting as a fiduciary or an advisor for it in
                respect
                of that Transaction. 

            

    

     

    
      	(d)	
              Section
                1(c). For
                purposes of Section 1(c) of the Agreement, the Transaction with Party
                A
                Reference No.: 13639381 shall be the sole Transaction under the Agreement.
                

            

    

     

    
      	(e)	
              Transfer.
                Section
                7 is hereby amended to read in its entirety as
                follows:

            

    

     

    Except
      as
      stated under Section 6(b)(ii), neither Party A nor Party B is permitted to
      assign, novate or transfer (whether by way of security or otherwise) as a whole
      or in part any of its rights,
      obligations or interests under this Agreement or any Transaction without the
      prior written consent of the other party; provided, however, that (i) Party
      A
      may make such a transfer of this Agreement pursuant to a consolidation or
      amalgamation with, or merger with or into, or transfer of substantially all
      of
      its assets to, another entity, or an incorporation, reincorporation or
      reconstitution, and (ii) Party A may transfer this Agreement to any Person
      that
      is an office, branch or affiliate of Party A (any such Person, office, branch
      or
      affiliate, a "Transferee")
      on at
      least five Business Days' prior written notice to Party B; provided that, with
      respect to clause (ii), (A) as of the date of such transfer the Transferee
      will
      not be required to withhold or deduct on account of a Tax from any payments
      under this Agreement unless the Transferee will be required to make payments
      of
      additional amounts pursuant to Section 2(d)(i)(4) of this Agreement in respect
      of such Tax; (B) a Termination Event or Event of Default does not occur under
      this Agreement as a result of such transfer; (C) such notice is accompanied
      by a
      written instrument pursuant to which the Transferee acquires and assumes the
      rights and obligations of Party A so transferred; and (D) Party A will be
      responsible for any costs or expenses incurred in connection with such transfer.
      Party B will execute such documentation as is reasonably deemed necessary by
      Party A for the effectuation of any such transfer. Notwithstanding the
      foregoing, no such transfer shall be made unless the transferring party obtains
      a written acknowledgment from each of the Rating Agencies that, notwithstanding
      such transfer, the then-current ratings of the Class
      A
      Certificates, the Mezzanine Certificates and the Class B Certificates
      will not be reduced or withdrawn.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

       

    

    Except
      as
      specified otherwise in the documentation evidencing a transfer, a transfer
      of
      all the obligations of Party A made in compliance with this Section 7 will
      constitute an acceptance and assumption of such obligations (and any related
      interests so transferred) by the Transferee, a novation of the transferee in
      place of Party A with respect to such obligations (and any related interests
      so
      transferred), and a release and discharge by Party B of Party A from, and an
      agreement by Party B not to make any claim for payment, liability, or otherwise
      against Party A with respect to, such obligations from and after the effective
      date of the transfer.

     

    
      	(f)	
              Trustee
                Capacity. It
                is expressly understood and agreed by the parties hereto that (i)
                this
                Agreement is executed and delivered by the Trustee not individually
                or
                personally but solely as trustee of the Trust, in the exercise of
                the
                powers and authority conferred and vested in it under the PSA, (ii)
                each
                of the representations, undertakings and agreements herein made on
                the
                part of the Trust is made and intended not as personal representations,
                undertakings and agreements by the Trustee but is made and intended
                for
                the purpose of binding only the Trust, (iii) nothing herein contained
                shall be construed as creating any liability on the part of the Trustee,
                individually or personally, to perform any covenant either expressed
                or
                implied contained herein, all such liability, if any, being expressly
                waived by the parties hereto and by any Person claiming by, through
                or
                under the parties hereto and (iv) under no circumstances shall the
                Trustee
                be personally liable for the payment of any indebtedness or expenses
                of
                the Trust or be liable for the breach or failure of any obligation,
                representation, warranty or covenant made or undertaken by the Trust
                under
                this Agreement or any other related documents as to all of which
                recourse
                shall be had solely to the assets of the Trust in accordance with
                the
                terms of the PSA.

            

    

     

    
      	(g)	
              Additional
                Representations.

            

    

     

    Party
      B
      represents that:

     

    
      	 	
              (i)

            	
              Status.
                The Trustee is trustee of the Trust whose appointment is valid and
                effective both under the laws of the State of New York and under
                the PSA,
                and the Trustee has the power to own assets in its capacity as trustee
                of
                the Trust.

            

    

     

    
      	 	
              (ii)

            	
              Powers.
                In its capacity as trustee of the Trust, the Trustee has power under
                the
                PSA to execute this Agreement and any other documentation relating
                to this
                Agreement that the Trustee is executing and delivering on behalf
                of the
                Trust, to deliver this Agreement and any other documentation relating
                to
                this Agreement that it is required to execute and deliver and to
                perform
                the obligations (on behalf of the Trust) under this Agreement and
                any
                obligations (on behalf of the Trust) under any Credit Support Document
                to
                which the Trust is party and has taken all necessary action to authorize
                such execution, delivery and
                performance;

            

    

     

    
      	 	
              (iii)

            	
              No
                violation or conflict. Such execution, delivery and performance do
                not
                violate or conflict with any law applicable to the Trustee or the
                Trust,
                any provision of the PSA, any order or judgment of any court or other
                agency of government applicable to the Trustee, the Trust or any
                assets of
                the Trust, or any contractual restriction binding on or affecting
                the
                Trustee, the Trust or any assets of the
                Trust;

            

    

     

    
      	 	
              (iv)

            	
              Consents.
                All governmental and other consents that are required have been obtained
                by the Trust with respect to this Agreement or any Credit Support
                Document
                to which the Trust is party have been obtained and are in full force
                and
                effect and all conditions of such consents have been complied with;
                and
                

            

    

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (v)

            	
              Obligations
                binding. The obligation of the Trust under this Agreement and any
                Credit
                Support Document to which the Trust is party constitute legal, valid
                and
                binding obligations of the Trust, enforceable against the Trust in
                accordance with their respective terms (subject to applicable bankruptcy,
                reorganization, insolvency, moratorium or similar laws affecting
                creditors' rights generally and subject, as to enforceability, to
                equitable principles of general application (regardless of whether
                enforcement is sought in a proceeding in equity or law)) and no
                circumstances are known to the Trust or the Trustee which would or
                might
                prevent the Trustee from having recourse to the assets of the Trust
                for
                the purposes of meeting such
                obligations.

            

    

     

    
      	 	
              (vi)

            	
              Party
                B represents to Party A that the PSA does not allow for liquidation
                of the
                assets of the Trust Fund (in whole or in part), except in connection
                with
                the termination of the Trust pursuant to Article IX of the PSA (which
                cannot occur until after the deposit of the Termination Price by
                the
                Terminator with the Trust pursuant to Section 9.01 of the PSA) and
                the
                ordinary-course liquidation of individual Mortgage Loans from time
                to time
                as provided in the PSA.

            

    

     

    
      	(h)	
              Proceedings.
                Without impairing any right afforded to it under the PSA as a third
                party
                beneficiary, Party A shall not institute against or cause any other
                person
                to institute against, or join any other person in instituting against
                the
                Trust, any bankruptcy, reorganization, arrangement, insolvency or
                liquidation proceedings, or other proceedings under any federal or
                state
                bankruptcy, dissolution or similar law, for a period of one year
                and one
                day, or
                if longer the applicable preference period then in effect,
                following indefeasible payment in full of the Certificates.
                Nothing shall preclude, or be deemed to stop, Party A (i) from taking
                any
                action prior to the expiration of the aforementioned one year and
                one day
                period, or if longer the applicable preference period then in effect,
                in
                (A) any case or proceeding voluntarily filed or commenced by Party
                B or
                (B) any involuntary insolvency proceeding filed or commenced by a
                Person
                other than Party A, or (ii) from commencing against Party B or any
                of the
                Mortgage Loans any legal action which is not a bankruptcy, reorganization,
                arrangement, insolvency, moratorium, liquidation or similar proceeding.
                

            

    

     

    
      	(i)	
              Change
                of Account.
                Section 2(b) of this Agreement is hereby amended by the addition
                of the
                following after the word "delivery" in the first line
                thereof:-

            

    

     

    "to
      another account in the same legal and tax jurisdiction as the original
      account"

    

    
      	(j)	
              Pooling
                and Servicing Agreement.
                Party
                B will provide at least ten days' prior written notice to Party A
                of any
                proposed amendment or modification to the PSA and Party B will
                obtain the prior written consent of Party A to any such amendment
                or
                modification, where such consent is required under the terms of the
                PSA
                or
                if such amendment and/or modification would materially and adversely
                affect any of Party A’s rights or obligations under this
                Agreement.

            

    

     

    
      	(k)	
              Set-off.
                Notwithstanding
                any provision of this Agreement or any other existing or future
                agreements, each of Party A and Party B irrevocably waives as to
                itself
                any and all contractual rights it may have to set off, net, recoup
                or
                otherwise withhold or suspend or condition its payment or performance
                of
                any obligation to the other party under this Agreement against any
                obligation of one party hereto to the other party hereto arising
                outside
                of this Agreement. The provisions for set-off set forth in Section
                6(e) of
                this Agreement shall not apply for purposes of this
                Transaction.

            

    

     

    
      	(l)	
              Notice
                of Certain Events or Circumstances.
                Each party agrees, upon learning of the occurrence or existence of
                any
                event or condition that constitutes (or that with the giving of notice
                or
                passage of time or both would constitute) an Event of Default or
                Termination Event with respect to such party, promptly to give the
                other
                party notice of such event or condition (or, in lieu of giving notice
                of
                such event or condition in the case of an event or condition that
                with the
                giving of notice or passage of time or both would constitute an Event
                of
                Default or Termination Event with respect to the party, to cause
                such
                event or condition to cease to exist before becoming an Event of
                Default
                or Termination Event); provided that failure to provide notice of
                such
                event or condition pursuant to this Part 5(l) shall not constitute
                an
                Event of Default or a Termination
                Event.

            

    

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

       

    

    
      	(m)	
              Regarding
                Party A.
                Party
                B acknowledges and agrees that Party A has had and will have no
                involvement in and, accordingly Party A accepts no responsibility
                for: (i)
                the establishment, structure, or choice of assets of Party B; (ii)
                the
                selection of any person
                performing services for or acting on behalf of Party B; (iii) the
                selection of Party A as the Counterparty;
                (iv) the terms of the Certificates; (v) the preparation of or passing
                on
                the disclosure and other information contained in any offering circular
                for the Certificates, the PSA, or any other agreements or documents
                used
                by Party B or any other party in connection with the marketing and
                sale of
                the Certificates (other than information provided by Party A for
                purposes
                of the disclosure document relating to the Class A Certificates,
                the
                Mezzanine Certificates and the Class B Certificates); (vi) the ongoing
                operations and administration of Party B, including the furnishing
                of any
                information to Party B which is not specifically required under this
                Agreement; or (vii) any other aspect of Party B's
                existence.

            

    

     

    
      	(n)	
              Amendments
                and Rating Agency Condition.
                Without prejudice to Section 9 of this Agreement, this Agreement
                will not
                be amended unless the Rating Agency Condition is satisfied with respect
                to
                such amendment. “Rating Agency Condition” means,
                with respect to any particular proposed act or omission to act hereunder
                that the party acting or failing to act must consult with each of
                S&P,
                Fitch and Moody’s then providing a rating of the
                Class A Certificates, the Mezzanine Certificates and the Class
                B Certificates
                and receive a prior
                written confirmation from each of the Rating Agencies that S&P,
                Moody's or Fitch will not downgrade or withdraw its then-current
                ratings
                of any outstanding the Class A Certificates, the Mezzanine Certificates
                and the Class B Certificates.
                

            

    

     

    
      	(o)	
              Jurisdiction.
                Section 13(b) is hereby amended by: (i) deleting in the second line
                of
                subparagraph (i) thereof the word "non-" and (ii) deleting the final
                paragraph thereof.

            

    

     

    
      	(p)	
              Waiver
                of Jury Trial.
                Each party waives, to the fullest extent permitted by applicable
                law, any
                right it may have to a trial by jury in respect of any suit, action
                or
                proceeding relating to this Agreement or any Credit Support Document.
                Each
                party certifies (i) that no representative, agent or attorney of
                the other
                party or any Credit Support Provider has represented, expressly or
                otherwise, that such other party would not, in the event of such
                a suit,
                action or proceeding, seek to enforce the foregoing waiver and (ii)
                acknowledges that it and the other party have been induced to enter
                into
                this Agreement and provide for any Credit Support Document, as applicable,
                by, among other things, the mutual waivers and certifications in
                this
                Section.

            

    

     

    
      	(q)	
              Consent
                to Recording.
                Each party consents to the recording of the telephone conversations
                of
                trading and marketing personnel of the parties in connection with
                this
                Agreement or any potential
                transaction.

            

    

     

    
      	(r)	
              Independent
                Reliance.
                The parties agree to amend Section 3 of this Agreement by the addition
                of
                the following provision at the end thereof and marked as subsection
                (g).

            

    

    

    
      	
            	"(g)	
              Independent
                Reliance. Party
                A is entering into this Agreement and will enter into each Transaction
                in
                reliance upon such tax, accounting, regulatory, legal, and financial
                advice as it deems necessary and not upon any view expressed by the
                other
                party. Party B is entering into this Agreement and will enter into
                each
                Transaction in reliance upon the direction of the Depositor and not
                upon
                any view expressed by the other
                party."

            

    

    

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

       

    

    
      	
              (s)

            	
              Escrow
                Payments.
                If
                (whether by reason of the time difference between the cities in which
                payments are to be made or otherwise) it is not possible for simultaneous
                payments to be made on any date on which both parties are required
                to make
                payments hereunder, either party may at its option and in its sole
                discretion notify the other party that payments on that date are
                to be
                made in escrow. In this case deposit of the payment due earlier on
                that
                date shall be made by 2:00 pm (local time at the place for the earlier
                payment) on that date with an escrow agent selected by the notifying
                party, accompanied by irrevocable payment instructions (i) to release
                the
                deposited payment to the intended recipient upon receipt by the escrow
                agent of the required deposit of the corresponding payment from the
                other
                party on the same date accompanied by irrevocable payment instructions
                to
                the same effect or (ii) if the required deposit of the corresponding
                payment is not made on that same date, to return the payment deposited
                to
                the party that paid it into escrow. The party that elects to have
                payments
                made in escrow shall pay all costs of the escrow
                arrangements.

            

    

    

    
      	(t)	
              ERISA.
                Party B represents that it: (1) is not, does not constitute part
                of and is
                not using as a source of funds for any Transaction any assets of
                (x) an
                “employee benefit plan” within the meaning of Section 3(3) of the Employee
                Retirement Income Security Act of 1974, as amended (“ERISA”), subject to
                Title I of ERISA, (y) a “plan” within the meaning of Section 4975 of
                the Internal Revenue Code of 1986, as amended (the “Tax Code”), subject to
                Section 4975 of the Tax Code, or (z) a “governmental plan” or a “church
                plan” as defined in Sections 3(32) and 3(33) of ERISA, respectively,
                subject to federal, state, local or other laws substantially similar
                to
                Title I of ERISA or Section 4975 of the Tax Code (“Similar Laws”)
                (any such “employee benefit plan” or “plan,” a “Plan”); (2) is not, as to
                this Agreement and any Credit Support Document (as applicable), a
                “fiduciary” to a Plan within the meaning of Section 3(21) of ERISA,
                Section 4975(d)(3) of the Tax Code or similar provisions under Similar
                Laws; and (3) is not handling, managing or controlling “plan assets”
                within the meaning of 29 C.F.R. 2510.3-101 (or similar provisions
                under
                Similar Laws) with respect to any Transaction. It is not, and is
                not
                controlled by, an “investment company” within the meaning of, and is not
                required to register as an “investment company” under, the Investment
                Company Act of 1940, as amended.

            

    

    

    
      	(u)	
              Method
                of Notice.
                Section 12(a)(ii) of this Agreement is deleted in its
                entirety.

            

    

    

    
      	(v)	
              USA
                PATRIOT Act Notice.
                Party A hereby notifies Party B that pursuant to the requirements
                of the
                USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October
                26,
                2001)) (the “Act”),
                it is required to obtain, verify and record information that identifies
                Party B, which information includes the name and address of Party
                B and
                other information that will allow Party A to identify Party B in
                accordance with the Act.

            

    

    

    
      	(w)	
              Safe
                Harbors.
                Each party to this Agreement acknowledges
                that:

            

    

    

    
      	 	
              (a)

            	
              This
                Agreement, including any Credit Support Document, is a “master netting
                agreement” as defined in the U.S. Bankruptcy Code (the “Code”), and a
                “netting contract” as defined in the netting provisions of the Federal
                Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”), and this
                Agreement, including any Credit Support Document, and each Transaction
                hereunder is of a type set forth in Section 561(a)(1)-(5) of the
                Code;

            

    

    

    
      	 	
              (b)

            	
              Party
                A is a “master netting agreement participant,” a “financial institution,”
                a “financial participant,” a “forward contract merchant” and a “swap
                participant” as defined in the Code, and a “financial institution” as
                defined in the netting provisions of
                FDICIA;

            

    

    

    
      	 	
              (c)

            	
              The
                remedies provided herein, and in any Credit Support Document, are
                the
                remedies referred to in Section 561(a), Sections 362(b)(6), (7),
                (17) and
                (27), and Section 362(o) of the Code, and in Section 11(e)(8)(A)
                and (C)
                of the Federal Deposit Insurance
                Act;

            

    

    

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (d)

            	
              All
                transfers of cash, securities or other property under or in connection
                with this Agreement, any Credit Support Document or any Transaction
                hereunder are “margin payments,” “settlement payments” and “transfers”
                under Sections 546(e), (f), (g) or (j), and under Section 548(d)(2)
                of the
                Code; and

            

    

    

    
      	 	
              (e)

            	
              Each
                obligation under this Agreement, any Credit Support Document or any
                Transaction hereunder is an obligation to make a “margin payment,”
                “settlement payment” and “payment” within the meaning of Sections 362, 560
                and 561 of the Code.

            

    

    

    
      	(x)	
              Business
                Days.
                If
                a payment required to be made pursuant to this Agreement has not
                been made
                solely because the day on which such payment is required to be made
                pursuant to this Agreement is a day on which banking or savings
                institutions in the state or city in which the office of Party A
                or Party
                B from which such payments is to be made is located are authorized
                or
                obligated by law to be closed, the failure to make such payment shall
                not
                constitute and Event of Default, and such payment shall be made on
                the
                next Business Day.

            

    

    

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this document by their duly authorized officers with
      effect from the date specified on the first page hereof.

    

       

      
        	BANK OF
                AMERICA, N.A. 	 	LONG
                BEACH
                MORTGAGE LOAN TRUST 2006-2 
	 	 	 	 
	 	 	By
                Deutsche Bank National Trust Company, not
                in its individual capacity but solely as
                Trustee on behalf of Long Beach Mortgage Loan Trust
                2006-2
	 	 	 	 
	By:	 	 	By:	 
	 	
                

              	 	 	
                

              
	 	Name:
Title:	 	 	Name:
Title:

      

      
        	 	 	 	 	 
	 	 	 	By:	 
	 	
              	 	 	
                

              
	 	 	 	 	Name:
Title:

      

      

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

         

      

    

    EXHIBIT
      I TO DOCUMENT 4 DRAFT COPY

    

    

    BANK
      OF AMERICA, N.A.

    

    
      	
              TO:

            	
              Long
                Beach Mortgage Loan Trust 2006-2, by Deutsche
                Bank National Trust Company, not individually but solely as trustee
                on
                behalf of the trust

            
	 	 
	 	
              1761
                East St. Andrew Place

            
	 	
              Santa
                Ana, California
                92705-4934

            
	 	 
	
              ATTN:

            	
              Trust
                Administration
                [         
                 ]

            
	
              TEL:

            	 
	
              FAX:

            	 
	
              
              

            	
              
              

            
	
              FROM:

            	
              Bank
                of America, N.A.

            
	 	
              233
                S. Wacker Drive, Suite 2800

            
	 	
              Chicago,
                Illinois 60606

            
	 	 
	 	
              Attention:
                Akshay Das

            
	 	 
	
              DATE:

            	
              7th
                March
                2006

            

    

     

    Our
      Reference
      Number:              
13639381

    Internal
      Tracking Number:         
13639381

     

    Dear
      Sir/Madam, 

     

    The
      purpose of this letter agreement is to confirm the terms and conditions of
      the
      transaction entered into between Long Beach Mortgage Loan Trust 2006-2, by
      Deutsche Bank National Trust Company, not individually but solely as trustee
      on
      behalf of the trust and Bank of America, N.A., a national banking association
      organized under the laws of the United States of America (each a “party” and
      together “the parties”) on the Trade Date specified below (the “Transaction).
      This letter agreement constitutes a ''Confirmation'' as referred to in the
      ISDA
      Master Agreement specified below (the ''Agreement'').

     

    The
      definitions and provisions contained in the 2000 ISDA Definitions, as published
      by the International Swaps and Derivatives Association, Inc., (the
      ''Definitions'') are incorporated into this Confirmation. In the event of any
      inconsistency between the Definitions and this Confirmation, this Confirmation
      will govern. 

     

    This
      Confirmation supplements, forms part of, and is subject to, the ISDA Master
      Agreement dated as of March 7, 2006, as amended and supplemented from time
      to
      time, between the parties. All provisions contained in the Agreement govern
      this
      Confirmation except as expressly modified below. 

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

     

    In
      this
      Confirmation ''Party A'' means Bank of America, N.A. and ''Party B'' means
      Long
      Beach Mortgage Loan Trust 2006-2, by Deutsche Bank National Trust Company,
      not
      individually but solely as trustee on behalf of the trust.

     

    General
      Terms: 

     

    The
      terms
      of the particular Transaction to which this Confirmation relates are as follows:
      

    
      
        

        
          	 	Notional Amount: 	 	As per Schedule A attached
                  hereto
	 	 	 	 
	 	Trade Date:     	 	22 February 2006
	 	 	 	 
	 	Effective Date:    	 	25 April 2006
	 	 	 	 
	 	Termination Date: 	 	25 March 2011
	 	 	 	 
	 Fixed Amounts:
                  	 	 
	 	 	 
	 	Fixed Rate
                  Payer:     	 	Party B 
	 	 	 	 
	 	Fixed Rate Payer Payment
                  Dates:	 	The
                  25th of each Month, commencing on 25th May 2006 and ending on the
                  Termination Date, subject to adjustment in accordance with the
                  Following
                  Business Day Convention 
	 	 	 	 
	 	Fixed Rate Payer Period
                  End
                  Dates:	 	The 25th of each Month,
                  commencing
                  on 25th May 2006 and ending on the Termination Date. No
                  Adjustment.
	 	 	 	 
	 	Fixed Rate: 	 	5.00000
                  per cent 
	 	 	 	 
	 	Fixed Rate Day Count
                  Fraction:     	 	30/360

        

         

      

      
        	 Floating Amounts:
                	 	 
	 	 	 	 
	 	Floating Rate
                Payer:    	 	Party A
	 	 	 	 
	 	Floating Rate Payer Payment
                Dates:	 	The 25th of each Month,
                commencing
                on 25th May 2006 and ending on the Termination Date, subject to adjustment
                in accordance with the Following Business Day Convention
	 	 	 	 
	 	Floating Rate Payer Period
                End
                Dates:  	 	The 25th of each Month, commencing
                on 25th
                May 2006 and ending on the Termination Date. No Adjustment. 
	 	 	 	 
	 	Floating Rate for initial
                Calculation Period:	 	to be determined
                

      

       

      
        
          
          

        

        
          51

          
            

          

        

        
          
          

        

         

      

      
        	 	Floating Rate Option:    	 	USD-LIBOR-BBA
	 	 	 	 
	 	Designated Maturity:    	 	1 Month
	 	 	 	 
	 	Spread:      	 	None 
	 	 	 	 
	 	Floating Rate Day Count
                Fraction:     	 	Actual/360
	 	 	 	 
	 	Reset Dates:     	 	First day of each Calculation Period
                
	 	 	 
	 Business
                Days:     	 	New York 
	 	 	 
	 Calculation
                Agent:     	 	Party A

      

       

    

    Recording
      of Conversations: 

     

    Each
      party to this Transaction acknowledges and agrees to the tape recording of
      conversations between the parties to this Transaction whether by one or other
      or
      both of the parties or their agents, and that any such tape recordings may
      be
      submitted in evidence in any Proceedings relating to the Agreement and/or this
      Transaction. 

     

    Account
      Details:
      

     

    As
      advised under separate cover with reference to this Confirmation, each party
      shall provide appropriate payment instructions to the other party in writing
      and
      such instructions shall be deemed to be incorporated into this Confirmation.
      

     

    Offices:
      

     

    The
      Office of Party A for this Transaction
      is:     Charlotte
      - NC, United States 

                                    
       Please
      send reset notices to fax no. (+1) 866 218 8487 

     

    The
      Office of Party B for this Transaction
      is:      Santa
      Ana
      - CA, United States

                        Please
      send reset notices to fax no.
      (+1) [                   ]

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

     

    Please
      confirm that the foregoing correctly sets forth the terms and conditions of
      our
      agreement by returning via telecopier an executed copy of this Confirmation
      to
      the attention of Global FX and Derivative Operations (fax no.(+1) 866 255 1444).
      

     

    
      	 	 	 	 	 
	By:	 	 	 	 
	 	
              

            	 	 	
            
	 	Name:
Title:
Date:	 	 	 

    

     

    
      	
               

            	 	 
	
              Long
                Beach Mortgage Loan Trust 2006-2, by Deutsche Bank National Trust
                Company,
                not individually but solely as trustee on behalf of the trust
                

            

    

    
       

      
        	 	 	 	 	 
	By:	 	 	 	 
	 	
                

              	 	 	
              
	 	Name:
Title:
Date:	 	 	 

      

      
         

        
          	 	 	 	 	 
	By:	 	 	 	 
	 	
                  

                	 	 	
                
	 	Name:
Title:
Date:	 	 	 

        

         

      

    

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

    
 

    SCHEDULE
      A

    Our
      Reference No. 13639381

     

     

    
      	 	
              Start
                Date

            	 	
              End
                Date

            	 	
              Notional
                Amount (USD)

            	 
	 	
              04/25/06

            	 	
              05/25/06

            	 	
              2,799,644,113.00

            	 
	 	
              05/25/06

            	 	
              06/25/06

            	 	
              2,746,206,137.00

            	 
	 	
              06/25/06

            	 	
              07/25/06

            	 	
              2,687,523,311.00

            	 
	 	
              07/25/06

            	 	
              08/25/06

            	 	
              2,620,425,809.00

            	 
	 	
              08/25/06

            	 	
              09/25/06

            	 	
              2,545,604,735.00

            	 
	 	
              09/25/06

            	 	
              10/25/06

            	 	
              2,464,954,046.00

            	 
	 	
              10/25/06

            	 	
              11/25/06

            	 	
              2,367,529,527.00

            	 
	 	
              11/25/06

            	 	
              12/25/06

            	 	
              2,271,093,768.00

            	 
	 	
              12/25/06

            	 	
              01/25/07

            	 	
              2,152,101,863.00

            	 
	 	
              01/25/07

            	 	
              02/25/07

            	 	
              2,047,146,904.00

            	 
	 	
              02/25/07

            	 	
              03/25/07

            	 	
              1,952,926,695.00

            	 
	 	
              03/25/07

            	 	
              04/25/07

            	 	
              1,860,500,027.00

            	 
	 	
              04/25/07

            	 	
              05/25/07

            	 	
              1,771,149,945.00

            	 
	 	
              05/25/07

            	 	
              06/25/07

            	 	
              1,684,263,072.00

            	 
	 	
              06/25/07

            	 	
              07/25/07

            	 	
              1,612,207,190.00

            	 
	 	
              07/25/07

            	 	
              08/25/07

            	 	
              1,547,738,663.00

            	 
	 	
              08/25/07

            	 	
              09/25/07

            	 	
              1,489,310,082.00

            	 
	 	
              09/25/07

            	 	
              10/25/07

            	 	
              1,437,990,812.00

            	 
	 	
              10/25/07

            	 	
              11/25/07

            	 	
              1,387,001,108.00

            	 
	 	
              11/25/07

            	 	
              12/25/07

            	 	
              1,342,979,682.00

            	 
	 	
              12/25/07

            	 	
              01/25/08

            	 	
              1,243,065,803.00

            	 
	 	
              01/25/08

            	 	
              02/25/08

            	 	
              1,140,922,360.00

            	 
	 	
              02/25/08

            	 	
              03/25/08

            	 	
              1,033,491,199.00

            	 
	 	
              03/25/08

            	 	
              04/25/08

            	 	
              931,541,736.00

            	 
	 	
              04/25/08

            	 	
              05/25/08

            	 	
              845,405,767.00

            	 
	 	
              05/25/08

            	 	
              06/25/08

            	 	
              771,787,523.00

            	 
	 	
              06/25/08

            	 	
              07/25/08

            	 	
              713,895,867.00

            	 
	 	
              07/25/08

            	 	
              08/25/08

            	 	
              666,158,193.00

            	 
	 	
              08/25/08

            	 	
              09/25/08

            	 	
              628,353,749.00

            	 
	 	
              09/25/08

            	 	
              10/25/08

            	 	
              594,934,187.00

            	 
	 	
              10/25/08

            	 	
              11/25/08

            	 	
              562,414,407.00

            	 
	 	
              11/25/08

            	 	
              12/25/08

            	 	
              531,860,737.00

            	 
	 	
              12/25/08

            	 	
              01/25/09

            	 	
              531,860,737.00

            	 
	 	
              01/25/09

            	 	
              02/25/09

            	 	
              504,721,089.00

            	 
	 	
              02/25/09

            	 	
              03/25/09

            	 	
              475,042,680.00

            	 
	 	
              03/25/09

            	 	
              04/25/09

            	 	
              446,854,586.00

            	 
	 	
              04/25/09

            	 	
              05/25/09

            	 	
              419,862,677.00

            	 
	 	
              05/25/09

            	 	
              06/25/09

            	 	
              393,079,034.00

            	 

    

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

     

    
      	 	
              06/25/09

            	 	
              07/25/09

            	 	
              369,600,141.00

            	 
	 	
              07/25/09

            	 	
              08/25/09

            	 	
              348,016,506.00

            	 
	 	
              08/25/09

            	 	
              09/25/09

            	 	
              327,903,667.00

            	 
	 	
              09/25/09

            	 	
              10/25/09

            	 	
              309,518,560.00

            	 
	 	
              10/25/09

            	 	
              11/25/09

            	 	
              291,309,269.00

            	 
	 	
              11/25/09

            	 	
              12/25/09

            	 	
              274,470,588.00

            	 
	 	
              12/25/09

            	 	
              01/25/10

            	 	
              257,569,384.00

            	 
	 	
              01/25/10

            	 	
              02/25/10

            	 	
              241,776,868.00

            	 
	 	
              02/25/10

            	 	
              03/25/10

            	 	
              224,274,120.00

            	 
	 	
              03/25/10

            	 	
              04/25/10

            	 	
              207,023,223.00

            	 
	 	
              04/25/10

            	 	
              05/25/10

            	 	
              190,185,604.00

            	 
	 	
              05/25/10

            	 	
              06/25/10

            	 	
              173,675,272.00

            	 
	 	
              06/25/10

            	 	
              07/25/10

            	 	
              159,259,707.00

            	 
	 	
              07/25/10

            	 	
              08/25/10

            	 	
              146,229,656.00

            	 
	 	
              08/25/10

            	 	
              09/25/10

            	 	
              134,221,755.00

            	 
	 	
              09/25/10

            	 	
              10/25/10

            	 	
              122,346,546.00

            	 
	 	
              10/25/10

            	 	
              11/25/10

            	 	
              111,567,688.00

            	 
	 	
              11/25/10

            	 	
              12/25/10

            	 	
              102,049,789.00

            	 
	 	
              12/25/10

            	 	
              01/25/11

            	 	
              92,984,469.00

            	 
	 	
              01/25/11

            	 	
              02/25/11

            	 	
              85,172,490.00

            	 
	 	
              02/25/11

            	 	
              03/25/11

            	 	
              78,461,974.00

            	 

    

     

    
      
        
        

      

      
        55

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]